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<strong>Review</strong> <strong>2005</strong>


Contents<br />

04 Michael Schumacher interview<br />

08 Think Before You Drive 12 Forests for F1 14 Motor Sport Marshals<br />

01 Introduction -<br />

Rosario Alessi,<br />

Chairman<br />

02 Overview - David Ward,<br />

Director General<br />

04 Safety Champion:<br />

Interview with<br />

Michael Schumacher<br />

06 Keeping Up The Pressure<br />

- Global Road Safety<br />

08 Think Before You Drive<br />

10 Think Before You Drive<br />

- The Story So Far<br />

12 Forests for Formula One<br />

14 Motor Sport Marshals<br />

16 The Road Inspectors<br />

18 International Policy<br />

Forum <strong>2005</strong><br />

20 Activities Roundup<br />

22 Abridged Accounts<br />

36 Board of Trustees and<br />

Staff


Introduction - Rosario Alessi, Chairman<br />

Strong partnerships are at the heart of the work of the <strong>FIA</strong> <strong>Foundation</strong>. We<br />

are fortunate to enjoy valuable links with our membership of automobile clubs<br />

across the world, and the many committed campaigners and researchers in<br />

these motoring organisations ensure that the <strong>FIA</strong> <strong>Foundation</strong>’s activities are<br />

rooted in local knowledge and realities.<br />

Our international partnerships are equally vital. In the area of road safety our continuing cooperation with the<br />

World Health Organisation and other United Nations agencies is paying dividends through greater efficiency<br />

and focus in how the international community tackles road traffic injuries. In the environmental field the <strong>FIA</strong><br />

<strong>Foundation</strong> is proud to support the United Nations Environment Programme’s Partnership for Clean Fuels and<br />

Vehicles, leading the campaign for a cleaner environment across the developing world.<br />

In <strong>2005</strong> the <strong>FIA</strong> <strong>Foundation</strong> has also been working in partnership with Bridgestone Corporation on a worldwide<br />

road safety advice campaign, ‘Think Before You Drive’. We are grateful for the support of the Ferrari Formula<br />

One team, and in particular Michael Schumacher and Rubens Barrichello, in helping to bring the messages of<br />

this campaign to the widest possible audience.<br />

Our <strong>2005</strong> <strong>Review</strong> reflects the vitality and range of all these partnerships, and on behalf of my fellow trustees I<br />

would thank every individual and organisation who has worked with the <strong>FIA</strong> <strong>Foundation</strong> to deliver our charitable<br />

objectives this year.<br />

Rosario Alessi<br />

Chairman<br />

<strong>FIA</strong> <strong>Foundation</strong><br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> |


King Juan Carlos II of Spain meets the <strong>FIA</strong> <strong>Foundation</strong> crash test dummy at the launch of Think Before You Drive


Overview - David Ward, Director General<br />

Maintaining momentum in global road<br />

safety through international and<br />

local action has been the central<br />

theme of the <strong>FIA</strong> <strong>Foundation</strong>’s activities<br />

in <strong>2005</strong>.<br />

We have played a leading role in the new United<br />

Nations Road Safety Collaboration, mandated by the<br />

UN General Assembly in 2004, which brings together<br />

all the major stakeholders in global road safety. This<br />

body has identified key road injury ‘risk factors’ as a<br />

priority for collective action and the <strong>FIA</strong> <strong>Foundation</strong> is<br />

involved in developing the practical tools needed to<br />

tackle road traffic injuries.<br />

These risk factors are also at the heart of the <strong>FIA</strong><br />

<strong>Foundation</strong>’s global campaign ‘Think Before You<br />

Drive’, in partnership with Bridgestone Corporation<br />

and automobile clubs. Seat belt use, drink driving<br />

and speed are all factors covered by the three year<br />

campaign, which has so far been launched in several<br />

countries in Europe and southern Africa, and in Brazil<br />

with the additional welcome support of Shell.<br />

The <strong>FIA</strong> <strong>Foundation</strong> has continued to enable groundbreaking<br />

research through our grant programme. The<br />

effectiveness of high visibility clothing in reducing injuries<br />

amongst motorcyclists in Malaysia; the potential<br />

for new vehicle technologies to prevent crashes;<br />

and the development of safety protocols for child restraints:<br />

just some of the ongoing research projects<br />

which should demonstrate real benefits for road safety,<br />

and sit alongside our continuing support for car<br />

crash tests and independent highway assessments.<br />

Active in environmental policy, the <strong>FIA</strong> <strong>Foundation</strong><br />

has funded emissions testing of new cars by the<br />

ADAC and an evaluation of fuel efficiency policies by<br />

the European Conference of Ministers of Transport.<br />

We continue to devote significant resources to motor<br />

sport safety through the new <strong>FIA</strong> Institute for Motor<br />

Sport Safety, which is managing an exciting portfolio<br />

of technological research, as well as leading practical<br />

safety and medical training for the officials and volunteers<br />

who are essential to ensure motor sport events<br />

are enjoyable and safe.<br />

More details on the projects and issues highlighted<br />

in <strong>Review</strong> <strong>2005</strong>, and information on all the <strong>FIA</strong> <strong>Foundation</strong>’s<br />

activities, can be found on our website www.<br />

fiafoundation.com<br />

David Ward<br />

Director General<br />

<strong>FIA</strong> <strong>Foundation</strong><br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> |


Road Safety Champion<br />

Seven times Formula One World<br />

Champion Michael Schumacher tells<br />

the <strong>FIA</strong> <strong>Foundation</strong> why road safety is<br />

so important to him.<br />

Q: Why are you concerned by road safety?<br />

A: I was shocked to learn that more than 1.2 million<br />

people are killed every year on the roads. That is more<br />

than three thousand people every day. Or think of it<br />

another way – it’s the equivalent of the entire crowd at<br />

a Formula One race being killed every month. Casualties<br />

are still rising steeply in many parts of the world<br />

and are predicted to almost double in some developing<br />

countries. So we can and should all do more to<br />

prevent these tragic deaths and injuries.<br />

| <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Q: You have been supporting the <strong>FIA</strong> <strong>Foundation</strong>’s<br />

Think Before You Drive campaign this year.<br />

Why do you think the campaign is important?<br />

Q: One of the key messages of the campaign covers<br />

seat belt use. Can you explain why seat belts<br />

are so important?<br />

A: I have been very pleased to support this campaign<br />

at several Grand Prix races, and I was always<br />

open to support similar campaigns in the years before.<br />

The messages are simple but essential: wearing<br />

seat belts, using head restraints correctly, checking<br />

tyre condition. As a professional racing driver I know<br />

that my safety is the first priority. I always follow these<br />

basic safety measures on the track and on the road.<br />

But there are millions of people who probably never,<br />

or rarely, think about these things. If I can in a way<br />

help them, or remind them, that has to be a good<br />

thing.<br />

A: As a Formula One driver, I know that my seat belt<br />

is vital to keep me safe in a race. As a car driver,<br />

I know that my seat belt is just as vital to keep me<br />

safe on the road. If I have a collision my seat belt can<br />

make the difference between life and death. It´s as<br />

simple as this.<br />

Child seats are also vital. Children should always be<br />

safely restrained in a suitable car seat or seat belt.<br />

That is the least you can do to protect them in a<br />

car.<br />

“My seatbelt can make the difference between life<br />

and death. It’s as simple as this”<br />

Q: As a racing driver you are associated with high<br />

profile, high speed driving. Are you really an appropriate<br />

figurehead for a road safety campaign?<br />

A: Road safety is a vital concern for everyone. As a<br />

professional racing driver, I demand and expect the<br />

highest possible safety standards in my racing car<br />

and on the track. We should all expect the same attention<br />

to safety in our cars and on our roads – and<br />

we should be well aware about the difference of moving<br />

on a racing track or on normal streets.<br />

It is also important to stress that every driver, even<br />

Formula One world champions, can make mistakes<br />

and every driver should be aware of their limitations<br />

and not take risks. It is a particularly important message<br />

for young male drivers who are most at risk on<br />

the road and also the biggest fans of motor racing. If<br />

I can help to make just some of these people listen to<br />

road safety messages and think about then and act<br />

on them, then my participation in the campaign will<br />

be worthwhile.<br />

Q: Tyres are a vital safety component that are often<br />

overlooked and neglected by drivers. How important<br />

is tyre maintenance?<br />

A: On the race track, as anyone who has followed<br />

Formula One this season will know, the performance<br />

of tyres can make the difference between winning<br />

and losing, and is also vital for safety. On the road,<br />

the performance of your tyres could make the difference<br />

between living and dying.<br />

You need to check tyres regularly, at least once a<br />

month. Check the tyre pressure, check the condition<br />

of the tyres, make sure there are no cracks or tears<br />

and the tread depth is okay. That´s already it.<br />

Q: Another message of this campaign is that<br />

head restraints play an important role in preventing<br />

whiplash injuries. What advice can you give<br />

about this?<br />

A: In Formula One we take neck protection very seriously.<br />

All drivers wear the HANS system for head<br />

and neck protection, which has helped to reduce or<br />

prevent a lot of injuries.<br />

Head restraints in passenger cars play an equally<br />

important role. Whiplash is a very common and very<br />

painful injury. Adjusting your head restraint so that the<br />

top of the restraint is level with the top of your head,<br />

and as close as possible to the back of your head,<br />

can help prevent these injuries. You should check<br />

your head restraint every time you get in the car.<br />

Q: You’ve talked about rising traffic deaths in developing<br />

countries. But the trend in the rich industrialised<br />

countries – including most of the places<br />

that host grand prix meetings – has been falling<br />

deaths and injuries for decades. Do you think<br />

there is still a need for this kind of road safety<br />

campaign in Europe, Australia or the US?<br />

A: You can never be complacent about safety. That is<br />

as true on the race track where we are probably the<br />

most heavily regulated drivers in the world, as on the<br />

road. Too many people are still being killed, even in<br />

the countries with the best safety records, like UK and<br />

Sweden. So the messages of this campaign; on tyre<br />

safety and seat belts, but also on speeding and drink<br />

driving, need to be heard and understood.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> |


Keeping Up The Pressure<br />

A new alliance is being forged to tackle the<br />

hidden epidemic of global road traffic injuries.<br />

The UN Collaboration is the first of its kind for road safety, mandated<br />

by a 2004 UN General Assembly resolution to bring together key<br />

players from a range of sectors including health, road safety, child<br />

protection and transport.<br />

The Collaboration, coordinated by the WHO, includes all five UN<br />

regional economic commissions and other UN agencies such as<br />

UNICEF, as well as a number of NGOs – including the <strong>FIA</strong> <strong>Foundation</strong>.<br />

Topping the agenda: how the group can effectively work for global<br />

road safety<br />

The outcome: an action plan to address the core road crash ‘risk<br />

factors’, as identified by the WHO/World Bank world report on road<br />

traffic injury prevention. These include non use of seat belts or motorcycle<br />

helmets, inappropriate speed and drink driving<br />

Thousands of lives could be saved if only countries with poor road<br />

safety records have access to information, experience and initiatives<br />

that can help them to tackle the causes of road traffic injuries.<br />

So a series of best practice road safety manuals are now being developed<br />

based on the <strong>FIA</strong> <strong>Foundation</strong>’s highly successful Seat Belt<br />

Toolkit. These guides will be targeted primarily towards road safety<br />

policy makers in those middle and low income countries that bear<br />

the highest burden of road casualties.<br />

“We are perfectly aware of the immensity of the challenge and the<br />

implications’, says Jose Capel Ferrer, Director of the Transport Division<br />

of the UN Economic Commission for Europe. “But I am confident<br />

that we have contributed to success in road safety in other<br />

countries, and that we can also succeed at the global level. We are<br />

ready to cooperate with the WHO and with other regional commissions<br />

in tackling this problem and we are firmly committed to do<br />

whatever we can”.<br />

Raising political awareness of road safety will be vital if the practical<br />

tools now being developed are to be accepted and used by governments<br />

across the world. To that end, the UN Road Safety Collaboration<br />

is backing the first ever UN Global Road Safety Week, in April<br />

2007.<br />

The coalition for global road safety is keeping up the pressure for<br />

international action on road traffic injuries.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> |


Think Before You Drive<br />

What do a globetrotting crash test dummy, the<br />

world’s most famous motor racing team and the<br />

King of Spain have in common?<br />

The answer: they have all backed the Think Before You Drive campaign,<br />

a worldwide road safety initiative led by the <strong>FIA</strong> <strong>Foundation</strong><br />

and Bridgestone Corporation, together with motoring organisations<br />

across the globe, which aims to raise awareness of simple road<br />

safety measures, like using a seat belt or reducing speed, that can<br />

help prevent, or potentially reduce the injury severity of, a crash.<br />

The messages of Think Before You Drive are consistent with many<br />

of the key ‘risk factors’ identified by the WHO / World Bank World<br />

Report on road traffic injury prevention in 2004, and which are now<br />

the focus of activity for the United Nations Road Safety Collaboration.<br />

The campaign, announced by <strong>FIA</strong> President Max Mosley and Bridgestone<br />

President Shigeo Watanabe at the Geneva International Motor<br />

Show in March <strong>2005</strong>, was launched at the Spanish Grand Prix in<br />

Barcelona with a high profile press conference attended by Ferrari<br />

Formula One drivers Michael Schumacher and Rubens Barrichello.<br />

The campaign gained its first royal endorsement when King Juan<br />

Carlos II of Spain stopped to chat with the Think Before You Drive<br />

crash test dummy, who acts as the campaigns ‘road safety expert’.<br />

The campaign was launched in seven European countries during<br />

the summer of <strong>2005</strong>, with automobile clubs in each country taking<br />

the messages of Think Before You Drive out on the road, to shopping<br />

malls, exhibitions and town squares. Millions of safety advice<br />

booklets were distributed, often with the active support of local traffic<br />

police. Safety experts from Bridgestone checked tyre pressures and<br />

condition at a number of locations. At several Formula One grand<br />

prix events, press briefings have been held with Michael Schumacher<br />

and Rubens Barrichello, whose commitment to publicising road<br />

safety has ensured widespread media coverage.<br />

Africa got in on the act in September, with the campaign launching<br />

in Kenya and Mauritius. Automobile clubs in Uganda, Mozambique,<br />

Ghana and Botswana are also participating during <strong>2005</strong>, while the<br />

Automobile Association of South Africa kicked off its major campaign<br />

in October <strong>2005</strong>.<br />

The campaign took to the streets of Brazil in September, with a<br />

launch by the Automobile Association of Brazil in Sao Paulo, followed<br />

by events at the Interlagos circuit during the Brazilian Grand<br />

Prix. China, Australia and and a number of Asian, Central and South<br />

American countries are set to join in 2006.<br />

‘Think Before You Drive’ – coming soon to a street near you!<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> |


Think Before You Drive...The Story So Far<br />

Geneva Motor Show<br />

March <strong>2005</strong><br />

Global Launch - Spanish Grand Prix<br />

May <strong>2005</strong><br />

<strong>FIA</strong> President Max Mosley<br />

and Bridgestone CEO<br />

Shigeo Watanabe<br />

announce a partnership for<br />

road safety, Think Before<br />

You Drive.<br />

Ferrari Formula One stars<br />

Michael Schumacher and<br />

Rubens Barrichello launch the<br />

Think Before You Drive<br />

campaign with the Royal<br />

Automobile Club of Catalonia<br />

(RACC).<br />

King Juan Carlos II of Spain<br />

backs Think Before You Drive<br />

as he meets our crash test<br />

dummy, the icon of the<br />

campaign.<br />

<br />

<br />

01<br />

02<br />

Austria<br />

June <strong>2005</strong><br />

United Kingdom<br />

July <strong>2005</strong><br />

Spain<br />

July <strong>2005</strong><br />

Vienna’s Baby Expo is the<br />

launch site for the Austrian<br />

Think Before You Drive<br />

campaign, led by Austrian<br />

automobile club, OAMTC.<br />

The crash test dummy<br />

dispenses advice to parents.<br />

Police officers check out the<br />

<strong>FIA</strong> <strong>Foundation</strong> seat belt<br />

slide at the British Grand<br />

Prix. Hundreds of thousands<br />

of booklets are distributed<br />

via motorway service station<br />

Moto, in a campaign spearheaded<br />

by the RAC<br />

<strong>Foundation</strong>.<br />

The start of the summer<br />

holiday getaway is the cue<br />

for the Royal Automobile<br />

Club of Spain (RACE) to<br />

advise on seat belt use,<br />

launching Think Before You<br />

Drive with the Spanish<br />

Directorate-General for<br />

Road Traffic.<br />

03<br />

04<br />

05<br />

10 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Germany<br />

August <strong>2005</strong><br />

Hungary<br />

August <strong>2005</strong><br />

Belgium<br />

September <strong>2005</strong><br />

Bridgestone’s road safety<br />

teams check tyre pressures<br />

at shopping centres around<br />

the country as national<br />

sporting hero Michael<br />

Schumacher kicks off the<br />

German campaign, led by<br />

German auto club AvD.<br />

Rubens Barrichello briefs<br />

journalists in the Bridgestone<br />

motor home at the<br />

Hungarian Grand Prix at the<br />

start of the nationwide<br />

campaign organized by<br />

Magyar Autoklub (MAK).<br />

Cycling hero Eddy Merckx<br />

joins Michael Schumacher<br />

at Spa to support the Royal<br />

Automobile Club of Belgium<br />

(RACB) in promoting Think<br />

Before You Drive. Belgium’s<br />

traffic police are also<br />

mobilised to support the<br />

campaign.<br />

06 07 08<br />

Italy<br />

September <strong>2005</strong><br />

Kenya<br />

September <strong>2005</strong><br />

Brazil<br />

September <strong>2005</strong><br />

Rubens Barrichello briefs<br />

journalists at Monza, in<br />

advance of the Automobile<br />

Club of Italy’s (ACI) launch<br />

of its Think Before You Drive<br />

campaign at an international<br />

road safety conference in<br />

October.<br />

In a country which can ill afford<br />

the human and<br />

economic cost of road<br />

crashes, transport minister<br />

Chris Murungaru supports<br />

David Njoroge, Director of<br />

the AA of Kenya, in<br />

promoting the vital road<br />

safety messages of Think<br />

Before You Drive.<br />

Local hero Rubens<br />

Barrichello teams up with<br />

fellow F1 driver Tiago<br />

Monteiro in Sao Paulo, to<br />

drive home the message of<br />

the Automobile Association<br />

of Brazil’s campaign.<br />

09 10<br />

11<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 11


Forests for Formula One<br />

Tackling global warming requires international<br />

treaties, lifestyle changes, complex technology<br />

and political determination.<br />

But farmers in Mexico have a role to play too.<br />

Carbon emissions from two motor sport championships, Formula<br />

One and the World Rally Championship, are offset through humble<br />

tree planting in the province of Chiapas, in southern Mexico, in a<br />

project supported by the <strong>FIA</strong> <strong>Foundation</strong>.<br />

Carbon emissions from the transportation and racing associated with<br />

the championships’ season is calculated by climate change experts<br />

from Edinburgh Climate Change Management (ECCM). The <strong>FIA</strong><br />

<strong>Foundation</strong> then purchases sufficient carbon sequestration credits<br />

to offset this carbon footprint. Carbon sequestration works by storing<br />

“captured carbon” in trees and woody vegetation as woody biomass<br />

which then releases oxygen into the atmosphere.<br />

The carbon sequestration project Chiapas, known as ‘Scolel Té’, was<br />

established with support from the UK Department for International<br />

Development, and is recognised by the Mexican and US Governments,<br />

and by the United Nations Environment Programme (UNEP).<br />

The local community is central to the project and has organised a<br />

community assembly to ensure the forestry and agro-forestry activities<br />

that are part of the project are planned by local people and<br />

respond to local needs. Farmers on the project have benefited by<br />

being able to establish new forests on unproductive or deforested<br />

land.<br />

“We have organised the use of the land in our community much<br />

better”, says local farmer Domingo Hernańdez Jimeńez. “We have<br />

now defined areas of damaged forest to be restored and have also<br />

established a protected area around the springs that provide water<br />

to the community. Most of us are also changing the way we cultivate<br />

our land, we have stopped burning the brush and straw and have<br />

started to make barriers to conserve the soil. We have seen that<br />

these things work and that the crops are producing more now”.<br />

It is hoped that carbon sequestration through projects such as this<br />

will provide a useful contribution as part of a broader climate change<br />

strategy. The project has been cited as a model for responsible carbon<br />

sequestration by forestry, with one of its principle benefits being<br />

the developmental support provided to local foresters in a region<br />

experiencing high levels of poverty and childhood malnutrition.<br />

And the <strong>FIA</strong> <strong>Foundation</strong> is in good company in its support for carbon<br />

sequestration. Other purchasers of Scolel Té carbon credits have<br />

included the World Economic Forum and rock bands Pink Floyd and<br />

Coldplay.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 13


Motor Sport Marshals<br />

They are the unsung heroes of every motor sport<br />

event, from glamorous Formula One grand prix<br />

to local car rally: the safety marshals.<br />

Race marshals play a vital role in ensuring that motor sport events<br />

are safe and enjoyable, for both drivers and spectators. Now the<br />

<strong>FIA</strong> Institute for Motor Sport Safety is working to raise the training<br />

standards of safety officials across the world.<br />

One of the major goals of the new <strong>FIA</strong> Institute is to foster improvements<br />

in motor sport safety through maintaining the training of officials,<br />

circuit and race personnel in safety procedures, practice and<br />

use of equipment.<br />

As part of this process, the <strong>FIA</strong> Institute launched the first pan-regional<br />

safety training seminar for motor sport officials in Venezuela<br />

earlier this year. Currently training for motor sport marshals and<br />

safety officials tends to be undertaken by local national sporting authorities.<br />

Training methods can vary widely from country to country.<br />

Some are of the highest quality whilst others do not meet optimum<br />

safety levels, especially in regions that have relatively little experience<br />

of hosting motor racing events.<br />

The seminar, which took place over three days in Caracas, sought<br />

to bring together the national associations of NACAM - representing<br />

North America, Central America and Mexico – into one forum that<br />

would raise motor sport safety standards across the whole region.<br />

The idea was to improve safety in the participating countries to the<br />

levels expected by the major motor sport markets. The ultimate objective<br />

is to save lives.<br />

Attended by around 70 senior motor sport officials across the fourteen<br />

countries of NACAM, including countries such as Mexico, Costa<br />

Rica, Puerto Rico and Cuba, the seminar shared the motor sport<br />

safety knowledge and expertise of experienced motor racing officials<br />

with the participants, who are then expected to take that knowledge<br />

back to their home countries and educate their own members.<br />

It is hoped that these seminars could ultimately lead to the creation<br />

of centres of best practice for training marshals in each region of<br />

the world. These centres would ensure that safety standards are<br />

at optimum levels in every country that hosts even the most minor<br />

motor racing event and not just those regions with a rich motor sport<br />

heritage.<br />

For the <strong>FIA</strong> Institute, it is one more step towards raising safety standards<br />

for motor sport worldwide.<br />

For more information on the work of the <strong>FIA</strong> Institute for Motor Sport<br />

Safety, which is funded by the <strong>FIA</strong> <strong>Foundation</strong>, see<br />

www.fiainstitute.com.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 15


The road inspectors<br />

How safe are the roads you drive on?<br />

These days we all expect five star safety standards from our cars,<br />

and the role of human error in causing traffic collisions is well known.<br />

Less appreciated has been the importance of safe road design in<br />

preventing or reducing the impact of crashes.<br />

But now the spotlight has been turned on road design, thanks to a<br />

dedicated team of road safety experts who have developed the concept<br />

of the Road Assessment Programme (RAP), with funding from<br />

the <strong>FIA</strong> <strong>Foundation</strong>, the European Commission, Toyota and ACEA.<br />

The risk of death or crippling injury can vary tenfold on different roads<br />

in the same country. The public, politicians and road engineers must<br />

be able to see clearly where the roads with unacceptably high risk<br />

are - and be guided to what can be done to put them right. This is the<br />

aim of the International Road Assessment Programme (iRAP), an<br />

initiative led by motoring organisations around the world, supported<br />

by major national road authorities.<br />

Beginning with EuroRAP, the iRAP team has provided the first independent,<br />

consistent safety ratings of roads across European borders.<br />

Already thousands of road stretches across Europe have been<br />

assessed.<br />

Simple risk mapping shows where the high risk roads are. And<br />

sometimes the cost of saving lives can be as little as the paint to<br />

provide clear road markings, so that drivers can read the road, or<br />

safety fencing to stop people being killed time after time by hitting<br />

the same trees close to the roadside.<br />

Euro RAP also aims to stimulate competition in providing the safest<br />

roads. With EuroRAP, road engineers can see clearly how well - or<br />

badly - their roads are performing compared with others both within<br />

and outside their own countries. And the public can see how quickly<br />

- or not - high risk roads are being fixed.<br />

The methods developed through EuroRAP are already being applied<br />

in Australia and piloted in the USA, with <strong>FIA</strong> <strong>Foundation</strong> support.<br />

The Australian Automobile Association has formed the Australian<br />

Road Assessment Programme (AusRAP) and published its first<br />

report in November 2004 mapping the risk of casualty crashes on<br />

the rural links of the Australian National Highway System.<br />

In the US a pilot programme inspired by EuroRAP is currently being<br />

carried out by the AAA <strong>Foundation</strong> with a view to help create public<br />

support for higher funding to upgrade data systems and make road<br />

safety improvements. The pilot programme has adopted EuroRAP<br />

protocols whilst adapting them to the US.<br />

The next challenge will be to translate the RAP risk mapping and<br />

design protocols to countries with greater road traffic injury problems<br />

than the developed West. The potential rewards from safe<br />

road design, in terms of lives saved and injuries prevented, could be<br />

counted in the hundreds of thousands.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 17


International Policy<br />

Forum <strong>2005</strong><br />

A crashed car stands in the forecourt of Quince<br />

Orchard High School, Washington D.C.<br />

Once driven by a former pupil, it stands as a sombre warning of the<br />

dangers facing young, inexperienced drivers.<br />

It is 16-24 year olds who are the biggest at risk group in terms of<br />

road traffic crashes. For this age group car crashes are the leading<br />

cause of death. In OECD countries alone it is estimated that over<br />

9,000 16-24 year olds were killed in 2003. Measures to reduce their<br />

risk was the focus of the <strong>FIA</strong> <strong>Foundation</strong>’s <strong>2005</strong> Policy Forum, held<br />

in Budapest.<br />

Discussion at the annual Policy Forum, held in Budapest, centred on<br />

the types of risks encountered by young drivers, why young drivers<br />

are most at risk; the need for better support and training both pre<br />

and post driving licence; and initiatives taken by automobile clubs to<br />

mitigate the risks to young drivers.<br />

John White, Head of the OECD / ECMT Transport Research Centre,<br />

outlined the key elements that put young drivers at risk as being age<br />

and physiological development, inexperience, and the increased<br />

likelihood of young drivers undertaking high risk activities such as<br />

speeding, driving at night, driving under the influence of alcohol and<br />

driving without wearing a seat belt.<br />

Other expert speakers including Nick Sanders, from the International<br />

Commission of Driver Testing Authorities (CIECA), and Anders<br />

Nyberg, from the Swedish National Road and Transport Research<br />

Institute, spoke of the role of post licence training as an effective<br />

way of supporting young and novice drivers during the vulnerable<br />

post-licence period.<br />

The Forum also heard about initiatives undertaken by the automobile<br />

clubs to improve safety for young drivers. Susan Pikrallidas from the<br />

American Automobile Association (AAA) described the successful<br />

campaign for a graduated driver’s licence, an initiative which thanks<br />

to AAA is now law in every State in the US. In stark contrast Petro<br />

Kruger from the AA South Africa spoke of the obstacles South Africa<br />

faces in terms of achieving effective driver licensing and training.<br />

Beate Pappritz, from German automobile club ADAC, presented an<br />

initiative to highlight to young drivers the risks of alcohol impaired<br />

driving. Anne Morphett, a policy advisor to the Australian club NRMA,<br />

described some of the marketing techniques used to communicate<br />

road safety messages to young people.<br />

An edited transcript of the Policy Forum is available from the <strong>FIA</strong><br />

<strong>Foundation</strong> and via www.fiafoundation.com.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 19


Activities roundup<br />

<strong>FIA</strong> <strong>Foundation</strong> backs India’s first mobile Crash Lab<br />

Nine people are killed and 39 are injured on India’s<br />

roads every hour yet the causes of 80 to 90% of road<br />

crashes in the country are never known.<br />

These are the statistics that inspired the Institute of<br />

Road Traffic Education (IRTE) in Delhi to develop<br />

India’s first mobile collision investigation and analysis<br />

laboratory, or “Crash Lab”, which was unveiled in<br />

Delhi in January <strong>2005</strong>.<br />

Co-funded by the <strong>FIA</strong> <strong>Foundation</strong>, the Crash Lab is a<br />

vehicle equipped with a hi-tech camera and computer<br />

software which is used to investigate the causes<br />

of a crash. The IRTE team are transported to the<br />

scene of a collision where they get to work collecting<br />

data on where the vehicle has been hit, marks that<br />

have been left on the road, injuries to occupants, the<br />

construction of the road and the traffic patterns of the<br />

spot where the crash occurred. The data is then fed<br />

into the computer and a 3 dimensional picture is<br />

prepared.<br />

President of the IRTE, Rohit Baluja, says the 3D images have provided major benefits to the police and road<br />

safety authorities in their investigations of the causes of crashes. The crash lab is currently being used as part<br />

of a risk assessment of the Delhi-Mumbai highway.<br />

Road Safety films<br />

Two new advocacy films have been issued by the <strong>FIA</strong> <strong>Foundation</strong>. ‘Think Global: moving road safety forward’<br />

details recent developments in global road safety at the United Nations; the focus on key injury ‘risk factors’<br />

with reference to experience in India, Costa Rica and the US; and the <strong>FIA</strong> <strong>Foundation</strong>’s Think Before You Drive<br />

campaign. ‘India: improving road safety at street level ‘ features Delhi, a city grappling with rapid traffic growth<br />

and a heavy injury toll. Both films, produced by Richard Stanley Productions, can be viewed on the <strong>FIA</strong> <strong>Foundation</strong>’s<br />

website www.fiafoundation.com<br />

Guide on post injury care published by WHO<br />

The Crash Lab at its launch in Delhi<br />

A handbook on pre hospital trauma care has been published by the World Health<br />

Organisation, with the support of the <strong>FIA</strong> <strong>Foundation</strong>, NHTSA and CDC. A guide<br />

for policymakers, the handbook focuses on establishing pre hospital trauma<br />

care systems in middle and low income countries. According to WHO estimates,<br />

every year approximately 5 million people worldwide die from injuries, with road<br />

traffic injuries the leading cause of death.<br />

20 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Participating in policymaking<br />

The <strong>FIA</strong> <strong>Foundation</strong> is working alongside government officials from a number of countries on two OECD expert<br />

working groups, examining road safety strategy and speed management respectively. The <strong>Foundation</strong> also<br />

continues to be an active participant in the World Forum for Harmonization of Vehicle Regulations and the<br />

Working Party on Road Traffic Safety, both at the UN-ECE in Geneva. A report for the European Conference of<br />

Ministers of Transport (ECMT) on the effectiveness of transport policies for CO2 reduction is being co-funded<br />

by the <strong>FIA</strong> <strong>Foundation</strong>. The report will be published by ECMT in 2006.<br />

Wheels to work?<br />

A new report on the role of transport in improving access to employment for socially excluded communities is<br />

published by the <strong>FIA</strong> <strong>Foundation</strong> in autumn <strong>2005</strong>. The Transport & Social Exclusion report examines transport<br />

projects in California, the UK and France to assess what type of transport provision offers value for money and<br />

is effective in helping disadvantaged people obtain and keep jobs. The report was researched by the Universities<br />

of Westminster, Paris and California.<br />

Costa Rica claims 58% seat belt rise<br />

Front seat belt wearing rose by 58% as a result of the seat belt<br />

awareness campaign and new legislation introduced in Costa<br />

Rica. The survey results, updating a pre-campaign survey, demonstrated<br />

the effect of high profile advertising coupled with police<br />

enforcement and media coverage of the issue. Formula One star<br />

Juan Pablo Montoya visited Costa Rica on behalf of the <strong>FIA</strong> <strong>Foundation</strong><br />

in December 2004 to promote the findings of the campaign<br />

evaluation. Maintaining these improvements in seat belt<br />

compliance will be the next challenge.<br />

Seat belts in South Africa …and India<br />

Juan Pablo Montoya visited Costa Rica<br />

The <strong>FIA</strong> <strong>Foundation</strong>’s crash test dummy icon was used as the mascot for a major seat belt awareness campaign<br />

in South Africa over the 2004/05 New Year summer holiday. Information packs based on the crash test<br />

dummy and educational materials from the <strong>FIA</strong> <strong>Foundation</strong>’s seat belt toolkit were distributed at petrol stations<br />

in the campaign led by the AA of South Africa. The campaign was also supported with adverts on radio stations<br />

and features in large circulation magazines. The <strong>FIA</strong> <strong>Foundation</strong>’s short animated films, featuring the crash test<br />

dummies, were later shown on TV channel SABC2 during <strong>2005</strong>.<br />

The <strong>FIA</strong> <strong>Foundation</strong>’s seat belt toolkit was also the subject of a high level seminar in India. The workshop, held<br />

in January <strong>2005</strong>, was organised by the Indian Institute of Road Traffic Education (IRTE) with the support of the<br />

Indian Government, and brought together police and transport officials from across India to discuss strategies<br />

for improving use of motorcycle helmets and seat belts. The <strong>FIA</strong> <strong>Foundation</strong>’s Director General, David Ward,<br />

participated in the workshop.<br />

For more information about our activities, visit www.fiafoundation.com<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 21


<strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society<br />

Financial Statements for the year ended 31 December 2004<br />

These summarised accounts, which are not the charitable company’s statutory accounts, may not contain sufficient<br />

information to allow for a full understanding of the financial affairs of the charity. For further information,<br />

the full annual accounts, the independent auditors’ report on those accounts and the Trustees’ Annual Report<br />

should be consulted. Copies of these accounts can be obtained, free of charge, from the <strong>FIA</strong> <strong>Foundation</strong> for<br />

the Automobile and Society, 60 Trafalgar Square, London, WC2N 5DS, or from the <strong>FIA</strong> <strong>Foundation</strong>’s website<br />

www.fiafoundation.com<br />

Statement of the Trustees<br />

We confirm that the extracts are a summary of information relating to both the Statement of Financial Activities<br />

and Balance Sheet from the annual accounts. The annual accounts were approved at the Board of Trustees<br />

meeting on 29 June <strong>2005</strong>. The independent auditors’ report, as given on 29 June <strong>2005</strong> by Grant Thornton UK<br />

LLP. on the full accounts was unqualified.<br />

Signed on behalf of the Trustees<br />

J Dawson<br />

29 June <strong>2005</strong><br />

Statement of the Independent Auditors to the trustees of the <strong>FIA</strong> <strong>Foundation</strong> for the<br />

Automobile and Society<br />

We have examined the summarised financial statements of <strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society for<br />

the year ended 31 December 2004. This report is made solely to the trustees. Our work has been undertaken<br />

so that we might state to the trustees those matters we are required to state to them in an auditors’ statement<br />

on summary financial statements and for no other purpose. To the fullest extent permitted by law, we do not<br />

accept or assume responsibility to anyone other than the trustees, for our work, for this report, or for the opinions<br />

we have formed.<br />

Respective responsibilities of trustees and auditors<br />

The trustees are responsible for preparing the summarised financial statements in accordance with the recommendations<br />

of the Charities SORP. Our responsibility is to report to you our opinion on the consistency<br />

of the summarised financial statements with the full financial statements and trustees’ report. We also read<br />

the other information contained in the summarised annual report and consider the implications for our report<br />

if we become aware of any apparent misstatements or material inconsistencies with the summarised financial<br />

statements.<br />

Basis of opinion<br />

We conducted our work in accordance with Bulletin 1999/6 ‘The Auditors’ Statement on the Summary Financial<br />

Statements’ issued by the Auditing Practices Board for use in the United Kingdom.<br />

Opinion<br />

In our opinion the summarised financial statements are consistent with the full financial statements and trustees’<br />

report of <strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society for they year ended 31 December 2004.<br />

GRANT THORNTON UK LLP, REGISTERED AUDITORS, CHARTERED ACCOUNTANTS, OXFORD<br />

29 June <strong>2005</strong><br />

22 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Statement of Recognised Gains and Losses<br />

For the year ended 31 December 2004<br />

Note<br />

Total for the year<br />

ended<br />

31 December<br />

2004<br />

Total for the<br />

year ended<br />

31 December<br />

2003<br />

€ 000’s € 000’s<br />

Incoming resources<br />

Donations 866 -<br />

Investment income 8,463 8,167<br />

Total incoming resources 9,329 8,167<br />

Resources expended<br />

Costs of generating funds:<br />

Investment management fees 1,302 1,025<br />

1,302 1,025<br />

Charitable expenditure:<br />

Grants 1 5,479 5,561<br />

Other charitable expenditure 2 2,018 2,479<br />

Management and administration 3 1,169 1,520<br />

8,666 9,560<br />

Total resources expended 9,968 10,585<br />

Net (outgoing) resources for the year (639) (2,418)<br />

Other recognised gains and losses<br />

Realised losses on investment assets (25,568) (7,476)<br />

Other realised gains/(losses) 293 (1,493)<br />

(25,275) (8,969)<br />

Net income and expenditure (25,914) (11,387)<br />

Unrealised gains 15,270 31,591<br />

Net movements in funds (10,644) 20,204<br />

Total funds brought forward at 1 January 2004 340,693 320,489<br />

Total funds carried forward at 31 December 2004 330,049 340,693<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 23


Extract from the Notes to the Financial Statements<br />

For the year ended 31 December 2004<br />

1. Charitable expenditure<br />

All the charitable expenditure in the year related to unrestricted funds. Charitable expenditure in the year<br />

comprised.<br />

Total Total<br />

2004 2003<br />

€ 000’s € 000’s<br />

Grants 5,479 5,561<br />

Other direct charitable expenditure 2,018 2,479<br />

7,497 8,040<br />

Material grants made to institutions were as follows. Each recipient received one grant, although this may<br />

have been paid over in more than one tranche. All grants made to institutions were restricted to the purpose<br />

for which the grant was approved.<br />

Key<br />

+ <strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society member organisation<br />

* Other related party<br />

<strong>FIA</strong> – Fédération Internationale de l’Automobile<br />

AAA – AAA <strong>Foundation</strong><br />

AAFRSR – AA <strong>Foundation</strong> for Road Safety Research<br />

AAMTTL – AA Motoring Trust Trading Limited<br />

ACEA – European Automobile Constructors Association<br />

ACI – Automobile Club d’Italia<br />

ACP – Automobile Club of Portugal<br />

ADAC – Allgemeiner Deutscher Automobil-Club e.V.<br />

AIT – Alliance Internationale de Tourisme<br />

CIK – Commission Internationale de Karting<br />

ECCM – The Edinburgh Centre for Carbon Management<br />

EuroNCAP – European New Car Assessment Programme<br />

GRSP – Global Road Safety Partnership<br />

FFAC – Fédération Français des Automobiles – Clubs et Usagers de la Route<br />

JAF – Japan Automobile Fédération<br />

IRTAD – International Road Traffic Accident Database<br />

MC – Mercury Consulting<br />

MSI – <strong>FIA</strong> Institute for Motor Sport Safety<br />

RAC – RAC Motoring Services<br />

RACE - Real Automovil Club de Espana<br />

SAAA– South African Automobile Association<br />

SW – Strong Words Limited<br />

TRL – TRL Limited<br />

UN – United Nations<br />

UN-ECE – United Nations Economic Commission for Europe<br />

WHO – World Health Organisation<br />

24 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Name of recipient Project name Amount granted in the year<br />

2004 2003<br />

€ 000’s € 000’s<br />

AAA Translation of Safety Information - 40<br />

AAFRSR / TRL European Road Assessment Programme * - 300<br />

AAFRSR/EuroRAP International Road Assessment Programme * 250 -<br />

AAMTTL<br />

Automobile and society development of the<br />

transport database and website*<br />

140 -<br />

ACEA/BMW De-coupling - 10<br />

ACI International Road Safety Exhibition * + 75 100<br />

ACI MoVe conference * + 25 25<br />

ACP Mobility for All – ACP Centenary conference + - 10<br />

ADAC Eco-test * + 100 100<br />

ADAC Safe Road Tunnels * + 100 -<br />

AIT Traffic Education Contest * - 25<br />

CIK/<strong>FIA</strong> Emissions testing of Kart engines * 65 -<br />

Daimler Chrysler Motor Sport Safety Research Programme - 368<br />

ECCM Climate Change Programme 125 125<br />

FFAC Road safety achievements in France * + 60 -<br />

<strong>FIA</strong> Motor Sport Safety Fund * - 2,389<br />

<strong>FIA</strong>/AIT Tunnel Safety Campaign * - 100<br />

JAF Impact of legislation on rear seat belt use * + 29 -<br />

Johns Hopkins Public health interventions for motor cycle safety in<br />

University<br />

the developing world<br />

87 -<br />

JST/British Council Road safety fellowship programme* 28 -<br />

MSI<br />

Motor sport safety research and support for safety<br />

interventions*<br />

3,300 -<br />

NPACS Harmonised Test Programme for Child Seats - 100<br />

Chris Jones and Global Technical Regulation for “On Road<br />

RAC<br />

Diagnostics”<br />

- 35<br />

SAAA Major Causes of Road Crashes + - 14<br />

SW/MC Vehicle Engineering Consultancy - 450<br />

UN-ECE Road Safety Week 2004 - 20<br />

University of<br />

Belgrano, Argentina<br />

Masters in Road Safety - 25<br />

University of Nairobi Road safety interventions in Kenya 60 -<br />

University of<br />

Westminster<br />

Mobility and Economic Access - 100<br />

Vehicle Safety<br />

Research Centre<br />

Accident Data Recorders – Seminar and Report - 10<br />

WHO<br />

Traffic Injury Prevention in Low and Middle Income<br />

Countries<br />

500 500<br />

WHO World Health Report - 200<br />

Wirth Research E-Safety 90 90<br />

Memberships and affiliations:<br />

EuroNCAP The European New Car Assessment Programme 220 415<br />

<strong>FIA</strong> Forum for the Automobile and Society 5 -<br />

GRSP Global Road Safety Partnership subscription 10 10<br />

IRTAD IRTAD database 10 -<br />

Australian NCAP Australian NCAP 150 -<br />

UN Partnership for Cleaner Fuels 50 -<br />

Total 5,479 5,561<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 25


2. Other direct expenditure<br />

Year<br />

ended 31<br />

December<br />

2004<br />

Year ended<br />

31 December<br />

2003<br />

€ 000’s € 000’s<br />

Internally managed projects:<br />

Seat belt safety and road safety campaigns 367 740<br />

Sharing Responsibility for Safer Roads - 96<br />

Auto and Society Report - 315<br />

Transport and Social Exclusion - 42<br />

Project monitoring costs - 249<br />

UN and regional commissions 65 -<br />

Global Road Safety Index 81 -<br />

Forum for the Automobile and Society subscription 5 -<br />

IRTAD subscription 4 -<br />

Australian NCAP subscription 150 -<br />

External Representational Activities (UN, UN-ECE, EU etc) 159 98<br />

Internal working groups 44 36<br />

International policy forum 128 -<br />

External communications 70 42<br />

1,073 1,618<br />

Grant and project support costs:<br />

Salaries 528 479<br />

Social security 83 80<br />

Pension 44 35<br />

Health Insurance 6 2<br />

Insurance 37 -<br />

Rent and rates 48 51<br />

Property costs and maintenance 22 -<br />

Telephone 18 4<br />

Postage and stationery 18 5<br />

Travel and subsistence 68 85<br />

Computer sundries 16 34<br />

Bookkeeping, accountancy and audit fees 8 21<br />

Legal and professional - -<br />

Subscriptions 2 30<br />

Staff training - 1<br />

Sundries 1 5<br />

Depreciation 34 -<br />

Donation 1 -<br />

Bank interest 2 -<br />

Bank charges 9 29<br />

945 861<br />

2,018 2,479<br />

26 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


3. Management and Administration Expenditure<br />

Year ended Year ended<br />

31 December 31 December<br />

2004<br />

2003<br />

€ 000’s € 000’s<br />

Salaries 304 348<br />

Social security costs 36 40<br />

Pensions 29 35<br />

Health Insurance 6 9<br />

General insurance 26 38<br />

Indemnity insurance 46 58<br />

Rent and rates 9 13<br />

Property costs, repairs and maintenance 232 238<br />

Telephone 14 22<br />

Postage and stationery 30 41<br />

Travel and subsistence 30 53<br />

Trustees’ expenses 139 92<br />

Web site design and maintenance 11 2<br />

Computer sundries 19 50<br />

Bookkeeping, accountancy and audit fees 24 63<br />

Legal and professional fees 18 76<br />

Subscriptions 5 7<br />

Staff training - 9<br />

Sundry 3 13<br />

Depreciation 124 106<br />

Loss on disposal of assets 19 -<br />

Bank charges 2 2<br />

Irrecoverable and disallowable VAT 43 205<br />

1,169 1,520<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 27


Balance Sheet at 31 December 2004<br />

2004 2004 2003 2003<br />

As restated As restated<br />

€ 000’s € 000’s € 000’s € 000’s<br />

Fixed assets<br />

Tangible assets 4,963 2,840<br />

Investments 316,025 335,036<br />

320,988 337,876<br />

Current assets<br />

Debtors 3,607 3,036<br />

Cash at bank and in hand 9,935 3,440<br />

13,542 6,476<br />

Creditors: amounts<br />

falling due within one<br />

year<br />

4,481 3,659<br />

Net current assets 9,061 2,817<br />

Total assets less current<br />

liabilities<br />

330,049 340,693<br />

330,049 340,693<br />

Income funds<br />

Unrestricted funds:<br />

Designated funds 893 686<br />

Other charitable funds<br />

329,156 340,007<br />

330,049 340,693<br />

28 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Cashflow Statement and Notes for the year ended 31 December 2004<br />

Year ended<br />

31 December<br />

2004<br />

Year ended<br />

31 December<br />

2003<br />

€ 000’s € 000’s € 000’s € 000’s<br />

Net cash (outflow)/inflow<br />

from operating activities<br />

4<br />

(1,010) 426<br />

Capital expenditure and<br />

financial investment<br />

Purchase of tangible fixed<br />

assets (38) (237)<br />

Purchase of quoted<br />

securities<br />

(204,423) (177,472)<br />

Sale of tangible fixed<br />

assets<br />

1 -<br />

Sale of fixed asset<br />

investments 219,921 171,851<br />

Net cash inflow/(outflow)<br />

from investing activities<br />

Increase/(decrease) in<br />

cash<br />

5 &<br />

6<br />

15,461 (5,858)<br />

14,451 (5,432)<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 29


Cashflow Statement and Notes<br />

For the year ended 31 December 2004<br />

4. Reconciliation of changes in resources to net cash flow<br />

2004 2003<br />

€ 000’s € 000’s<br />

Net outgoing resources (639) (2,418)<br />

Depreciation 158 106<br />

Loss on disposal of tangible fixed assets 19 -<br />

Donated tangible fixed assets (828) -<br />

(Increase)/decrease in debtors (577) 1,051<br />

Increase in creditors 857 1,687<br />

Net cash (outflow)/inflow from operating activities (1,010) 426<br />

5. Reconciliation of net cash flow to movement in funds<br />

2004 2003<br />

€ 000’s € 000’s<br />

Increase/(decrease) in cash in the period 14,451 (5,432)<br />

Effects of realised foreign exchange gains/(losses) 297 (1,607)<br />

Effects of unrealised foreign exchange gains/(losses) 2,794 (199)<br />

Movement in net funds 17,542 (7,238)<br />

Net funds at 1 January 2004 4,639 11,877<br />

Net funds at 31 December 2004<br />

22,181 4,639<br />

6. Analysis of changes in net funds<br />

At<br />

At 1 January<br />

Exchange<br />

Cash flows<br />

31 December<br />

2004<br />

movement<br />

2004<br />

€ 000’s € 000’s € 000’s € 000’s<br />

Cash at bank 3,440 6,505 (10) 9,935<br />

Cash held as part of investment<br />

portfolio<br />

1,199 7,946 3,101 12,246<br />

4,639 14,451 3,091 22,181<br />

30 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Financial Policies<br />

Investment policy<br />

The <strong>FIA</strong> <strong>Foundation</strong> has the power to deposit or invest funds not immediately required for its purposes in,<br />

or upon, such investments, securities or property as the trustees may think fit. The trustees may invest only<br />

after obtaining advice from a financial expert. The trustees have the power to delegate the management of<br />

investments to a financial expert but must review the performance of the investments regularly.<br />

The principle objective of the investment policy is to seek total return in the long term in order to provide for<br />

real increases in annual expenditure while preserving the charities capital base in real terms. This is to balance<br />

the needs of both current and future beneficiaries and therefore the assets are invested for long-term<br />

returns rather than to maximise short-term income.<br />

The <strong>FIA</strong> <strong>Foundation</strong> manages it investments by comparing returns achieved on each portfolio to set benchmarks<br />

for each manager on a quarterly basis. During the year the Investment Committee performed an<br />

extensive review of the performance of the investment managers which resulted one mandate being revoked<br />

and one new mandate awarded.<br />

The Investment Committee also started an extensive review of the charity’s investment strategy and arrangements<br />

which is ongoing. The results of the review will be incorporated into the investment strategy during<br />

the forthcoming year.<br />

Reserves policy<br />

The long term objective of the Trustees is to preserve the capital base in real terms for as long as this is<br />

practicable whilst meeting the needs of the beneficiaries at a sustainable level.<br />

To date the level of income received from the investment portfolio has only been sufficient to cover budgeted<br />

administration and programme expenditure for the following year. The objective for the trustees is to achieve<br />

additional returns to ensure the current level of expenditure can be maintained or increased and to ensure<br />

the long term aim of preserving the capital base is met.<br />

At 31 December 2004 the <strong>FIA</strong> <strong>Foundation</strong> held €893,000 (2003: €686,000) in designated funds and<br />

€329,156,000 (2003: €340,007,000) in undesignated funds.<br />

Grants policy<br />

The <strong>FIA</strong> <strong>Foundation</strong> considers applications for grants from any organisation or individual, providing the application<br />

meets at least one of the general or specific objectives of the charity. Applications are considered by<br />

the programme sub-committee and the Board of Trustees. The trustees have made commitments to make<br />

grants as listed in note 1.<br />

Funding<br />

The trustees are satisfied that the <strong>FIA</strong> <strong>Foundation</strong>’s assets are available and adequate to fulfil its obligations.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 31


Principal Accounting Policies<br />

Basis of preparation<br />

The financial statements have been prepared in accordance with applicable accounting standards and follow<br />

the recommendations in the Statement of Recommended Practice: Accounting by Charities (the SORP) issued<br />

in October 2000, and with the requirements of the charity’s Memorandum and Articles of Association. They<br />

have been prepared under the historical cost convention except that:<br />

• investments are valued at market value (see below)<br />

The principal accounting policies of the charitable company are set out below and have remained unchanged<br />

except for the following:<br />

Endowment funds<br />

The terms of the initial donation from the Fédération Internationale de l’Automobile (<strong>FIA</strong>) was reviewed during<br />

the year. Under the terms of the donation the trustees can designate or use funds as they see fit, in the best<br />

interests of the <strong>Foundation</strong>. Therefore, these funds do not have to be permanently retained for the benefit of<br />

the <strong>Foundation</strong> as a capital fund and fall outside the definition of an endowment fund.<br />

The balance sheet for 2003 has been restated to show this change in policy with the Endowment fund balance<br />

of € 327,772,000 being transferred to unrestricted funds.<br />

Allocations of costs<br />

During the year there was a review of the policy for allocating staff costs.<br />

Previously all direct costs which related to an employee were charged to the cost category they predominately<br />

worked in eg administration or charitable. All overhead costs were allocated to administration with no attempt<br />

to apportion costs for those employees involved in charitable activities.<br />

Following the review staff have been categorised based on the time spent on either charitable or administration<br />

activities. For employees who undertake both charitable and administrative activities, an estimate is made of<br />

the time spent on each activity and costs are apportioned on this time split. Costs which directly relate to an<br />

employee are charged against the activity they undertake. Overheads or shared costs are allocated on a<br />

proportional basis dependent on the time spent on charitable or administrative activities and the office location<br />

of the employee.<br />

An additional €223,000 has been allocated to charitable costs in the current period as a result of the change<br />

in policy.<br />

Incoming Resources<br />

Donations<br />

All monetary donations are included in full in the statement of financial activities when receivable, provided that<br />

there are no donor-imposed restrictions as to the timing of the related expenditure, in which case recognition<br />

is deferred until any pre-condition has been met.<br />

Investment Income<br />

Investment income, including associated tax recoveries, but with the exception of income receivable in respect<br />

of fixed interest securities, is recognised when receivable. Income receivable in respect of fixed interest securities<br />

is recognised on the accruals basis.<br />

32 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Rental Income<br />

Rental income is recognised when receivable.<br />

Resources expended<br />

Expenditure, which is charged on an accruals basis, is allocated between:<br />

• expenditure incurred directly for the fulfilment of the charity's objectives (direct charitable) and;<br />

• expenditure incurred in the management and administration of the charity.<br />

Grants Payable<br />

Grants payable are recognised in the financial statements when a contracted commitment exists.<br />

Allocations of Costs<br />

Staff are categorised based on the time spent on either charitable or administration activities.<br />

Costs which directly relate to an employee are charged against the activity they undertake. For employees<br />

who undertake both charitable and administrative activities, an estimate is made of the time spent on each<br />

activity and costs are apportioned on this time split.<br />

Shared costs are allocated on a proportional basis dependent on the time spent on charitable or administrative<br />

activities and the office location of the employee. For example, costs relating to Trafalgar Square are split<br />

70% administration and 30% administration as 70% of London based staff work in administration and 30%<br />

are charitable. All costs relating to the French office are allocated as charitable as the work carried out by the<br />

employees based there relate to grants made and internally managed charitable projects.<br />

Other shared costs relating to the organisation as a whole are split 37% administration and 63% charitable,<br />

reflecting the number of employees who work in each field.<br />

Fund Accounting<br />

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the<br />

general objectives of the charity.<br />

Designated funds are unrestricted funds which have been designated for specific purposes by the trustees.<br />

Prior Year Adjustment<br />

A review of the initial donation received from the Fédération Internationale de l’Automobile (<strong>FIA</strong>) was reviewed<br />

during the year. Under the terms of the donation the trustees can designate or use funds as they see fit, in the<br />

best interests of the <strong>Foundation</strong>. Therefore, these funds do not have to be permanently retained for the benefit<br />

of the <strong>Foundation</strong> as a capital fund and fall outside the definition of an endowment fund.<br />

The balance sheet has been restated for 2003 to show funds previously treated as endowment as part of<br />

income funds<br />

Taxation<br />

The activities of the charity fall within the exemptions conferred by sections 505 and 506 of the Income and<br />

Corporation Taxes Act 1988. Consequently, no corporation tax is provided for in the financial statements.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 33


Retired Benefits<br />

Defined Contribution Scheme<br />

The pension costs charged against the statement of financial activities are the contributions payable to the<br />

schemes in respect of the accounting period.<br />

Leased Assets<br />

All leases are regarded as operating leases and the payments made under them are charged to the Statement<br />

of Financial Activities on a straight line basis over the lease term.<br />

Liabilities<br />

Liabilities are recognised when there is a legal and constructive obligation committing the charity to the expenditure.<br />

Tangible fixed assets and depreciation<br />

Tangible fixed assets are capitalised at cost where their acquisition value is great than €750, and are stated at<br />

cost net of depreciation.<br />

Depreciation is calculated to write down the cost of all tangible fixed assets excluding investment properties<br />

by equal annual instalments over their estimated useful economic lives, calculated on a monthly basis.<br />

The rates applicable are:<br />

Freehold properties 2%<br />

Fixtures, fittings and equipment 20%<br />

Computer equipment 33 1/3%<br />

Investments<br />

Investment properties are valued at their mid market value in their native currency at the balance sheet date,<br />

translated at the rate of exchange ruling at the date of acquisition (or an average rate if not materially different),<br />

as required by SSAP 20.<br />

Listed investments are valued at their market value in their native currency at the balance sheet date, translated<br />

at the rate of exchange ruling at the date of acquisition (or an average rate if not materially different), as<br />

required by SSAP 20.<br />

Cash held as part of an investment portfolio, as a monetary asset, is translated using the closing rate method.<br />

Net gains and losses arising on revaluations and disposals during the period are included in the statement of<br />

financial activities.<br />

34 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Foreign Currencies<br />

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction.<br />

Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance<br />

sheet date. Non monetary assets and liabilities in foreign currencies are translated at the rates of exchange<br />

ruling at the date of acquisition, or an average rate if not materially different. Exchange differences are<br />

dealt with in the statement of financial activities.<br />

Realised and unrealised gains and losses are allocated to the appropriate fund where possible. Realised and<br />

unrealised gains and losses relating to more than one fund are apportioned between the funds on the basis of<br />

the balance on each fund at the balance sheet date.<br />

<strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong> | 35


Board of Trustees<br />

The <strong>FIA</strong> <strong>Foundation</strong> is a company limited by guarantee and is registered as a charity in the UK. It is governed by an international Board of Trustees. The Board<br />

of Trustees is currently composed of 13 members. Each Trustee has a tenure of 3 years. The Trustees are elected by the membership of the <strong>Foundation</strong> at<br />

its Annual Meeting. The <strong>FIA</strong> <strong>Foundation</strong> is headed by the Chairman of the Board of Trustees. The current Trustees of the <strong>Foundation</strong> are:<br />

Rosario Alessi, <strong>FIA</strong> <strong>Foundation</strong> Chairman<br />

Italy<br />

Former President, Automobile Club d’Italia<br />

Bob Darbelnet<br />

United States<br />

President and Chief Executive Officer, American Automobile Association (AAA)<br />

John Dawson<br />

United Kingdom<br />

Chairman, European Road Assessment Programme<br />

Otto Flimm<br />

Germany<br />

Former President, Allgemeiner Deutscher Automobil-Club e.V.<br />

Christian Gerondeau<br />

France<br />

President, Fédération Française des Automobile-Clubs et des Usagers de la Route<br />

Tim Keown<br />

United Kingdom<br />

Chairman, Royal Automobile Club<br />

John Large<br />

Australia<br />

President of Honour, Confederation of Australian Motor Sport (CAMS)<br />

Carlos Macaya<br />

Costa Rica<br />

President, Automovil Club de Costa Rica (ACCR)<br />

Burdette Martin<br />

United States<br />

President, Automobile Competition Committee for the U.S. <strong>FIA</strong>. Inc. (ACCUS)<br />

Max Mosley<br />

United Kingdom<br />

President, Fédération Internationale de l’Automobile<br />

Sebastia Salvado<br />

Spain<br />

President, Reial Automobil Club de Catalunya<br />

Setsuo Tanaka<br />

Japan<br />

Executive Vice President, Japan Automobile Federation<br />

Ari Vatanen MEP<br />

Finland<br />

Member of the European Parliament<br />

Staff<br />

David Ward<br />

Director General<br />

Saul Billingsley<br />

Deputy Director General & Programmes Director<br />

Frank van West<br />

Technical Director<br />

Rita Cuypers<br />

Head of Road Safety<br />

Caroline Luff<br />

Policy & Research Officer<br />

John Pap<br />

Website & Communications Officer<br />

Jane Pearce<br />

Director of Administration & Personnel<br />

Chris Bentley<br />

Head of Information Technology<br />

Alicia Priest<br />

Financial Controller<br />

Fiona Holland<br />

Assistant Administrator<br />

36 | <strong>FIA</strong> <strong>Foundation</strong> <strong>Review</strong> <strong>2005</strong>


Objectives<br />

<br />

<br />

The <strong>FIA</strong> <strong>Foundation</strong> has been established in the United Kingdom as a registered charity with an endowment of<br />

$300 million made by the Fédération Internationale de l’Automobile (<strong>FIA</strong>), the governing body of world motor<br />

sport and the international association of motoring organisations.<br />

Our objectives are to promote public safety and public health, the protection and preservation of human life<br />

and the conservation, protection and improvement of the physical and natural environment through:<br />

• promoting research, disseminating the results of research and providing information in any matters<br />

of public interest which include road safety, automobile technology, the protection and preservation<br />

of human life and public health, transport and public mobility and the protection of the environment;<br />

and<br />

• promoting improvement in the safety of motor sport, and of drivers, passengers, pedestrians and<br />

other road users.<br />

The <strong>Foundation</strong> conducts its own research and educational activities as well as offering financial support to<br />

third party projects through a grants programme.<br />

The <strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society is registered in England and Wales as a company limited<br />

by guarantee No. 4219306 Registered UK Charity No. 1088670 Registered Office: <strong>FIA</strong> <strong>Foundation</strong> for the<br />

Automobile & Society 60 Trafalgar Square London WC2N 5DS<br />

<strong>FIA</strong> <strong>Foundation</strong> for the Automobile and Society<br />

60 Trafalgar Square<br />

London<br />

WC2N 5DS<br />

+44 (0)207 930 3882 (t)<br />

+44 (0)207 930 3883 (f)<br />

mail@fiafoundation.com (e)<br />

Visit www.fiafoundation.com for the latest information on our activities

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