It has an office in Geneva but its headquarters are in Paris, where it does
not need to file publicly-available accounts, as it is a not-for-profit
organisation.
The accounts are approved by the federation’s 236 members at its annual
general assembly and following the previous meeting, Tom Purves, the RAC
chairman and former chief executive of Rolls-Royce, wrote to FIA president
Jean Todt to demand further details about payments totalling €14.4m.
In a letter seen by The Sunday Telegraph and dated July 25, 2013, Mr
Purves states that “there is a lack of the narrative or detail in the FIA
accounts that one would not expect of an international entity, or UK entity.
This may be because they are prepared in a way that meets merely the minimum
standards required of a French, not-for-profit organisation.”
Mr Purves says “as a chairman responsible for the deployment of members’ funds
in an appropriate manner, I question the value we receive from our
membership fee”. He queries two costs in particular: “Personnel expenses of
€6.1m and €8.3m for travel, missions and conferences.”
The FIA’s testy response came from Nick Craw, president of its decision-making
body, the Senate.
He points out that the RAC “was duly represented at the general assemblies
relating to the accounts for 2010 and 2011” and had raised no questions.
“Moreover, the accounts were approved by a show of hands and were thus also
approved by your club,” he says. “I am therefore curious as to the reasons
and timing of your questions.”
Mr Craw adds: “The costs indicated in the FIA accounts reflect the salaries
and social security contributions for those staff.” He notes: “Our accounts…
are audited by PwC, one of the largest audit firms in the world and their
certification of our accounts is without reservation, which confirms to our
members the strictness and quality of our bookkeeping.”
The RAC declined to comment further.
Time beneath the bonnet
The Royal Automobile Club
Founded on August 10, 1897 as the Automobile Club of Great Britain.
Organised the first British Grand Prix at Brooklands, Surrey in 1926.
Adult joining fee in 2013: £3,300. Subscription fee: £1,450.
Facilities include: swimming, Turkish baths, gym, squash, tennis and snooker.
RAC uniformed patrols started in 1901.
Members sold RAC Motoring Services in September 1999.
Fédération Internationale de l’Automobile
Founded in 1904, with headquarters in Place de la Concorde, Paris.
Formula One established in 1946 with the FIA’s standardisation of
rules.
In 2009, Max Mosley was forced to step down as president of the FIA and not
stand for re-election.
Current president is former world rally champion Jean Todt.