Devon Air Ambulance Trust Report & Accounts 2019

Annual Report & Accounts

2019

The Official Magazine

Devon Air Ambulance Trust

Devon Air Ambulance Trust

The Charity that funds and operates Devon’s Air Ambulance service

Devon Air Ambulance operates two EC-135 helicopters all year round from its airbases in Exeter and Eaglescott, near Umberleigh, in the north of the county

In Brief Devon Air Ambulance Trust is the charity that raises the funds to operate Devon’s Air Ambulance service.

The service is provided free at the point of need, to anyone and everyone in Devon and neighbouring counties, resident or visitor. To ensure its effectiveness, and so that we respond to the most poorly patients, each individual deployment is carefully assessed against specific criteria in terms of clinical need, urgency, accessibility and distance to the hospital that is most appropriate to treat the illness or injury of the patient.

Devon Air Ambulance operates two EC-135 helicopters all

year round from its airbases in Exeter and Eaglescott, near Umberleigh, in the north of the county. The Exeter-based aircraft is night capable and, having flown until midnight since November 2016, this was further extended to 2am from January 2019.

We continue to be proud of our independence from government. This is only possible thanks to the loyal support we receive from our local communities, who fund our service through their public fundraising, donations, gifts and from our business supporters. The benefit of being politically independent means we can make long-term plans for our service based solely on local needs and priorities.

Public Benefit The benefits that Devon Air Ambulance provides are:

The relief of sickness and injury primarily in the county of Devon through provision of emergency medical services and equipment by helicopter or other emergency vehicles

The advancement of health through provision of training, research and education in the field of pre-hospital emergency medicine and treatment or prevention of sickness and injury

Devon Air Ambulance is required to demonstrate how its operations provide a benefit to the public. These benefits are laid out in the 'In Brief' section above.

The provision of other health related services including aftercare of patients

The Trustees have complied with their duty in accordance with the Charities Act and the Charity Commission’s guidance on public benefit in exercising their powers and duties to consider it in all aspects of the company’s activities. daat.org

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Contents Trustees’ Report (incorporating the Strategic Report) 3 3 5 6 8 10 12 16 20 21 22 24 26 27 30 32 33 34 36 37

In Brief Public Benefit Our Vision, Mission and Values Strategic Overview Operational Statistics 2019 Patient Services Future Plans – 2020 Vision and Beyond Raising the Money and Looking after our Supporters Additional Income Streams and Support Retail Communication and Marketing Supporting our People Planning to Succeed Review of Financial Performance Reserves Financial Risk Management Other Factors in Achievement of Objectives Structure, Governance and Management Principal Risks and Uncertainties Statement of Trustee Responsibilities

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Independent Auditor’s Report to Trustees

Financial Statements 40 41 42 43 58 59

Consolidated Statement of Financial Activities Consolidated Balance Sheet Consolidated Statement of Cash Flows Notes to the Accounts Legal and Administrative Getting in Touch and Glossary of Terms

Getting In Touch

Unit 5 Sandpiper Court Harrington Lane Exeter EX4 8NS 01392 466666 info@daat.org daat.org

c @devonairambulancetrust d @DevonAirAmb f @devonairambulance l devonairambulance

Our Vision, Mission and Values

Our Vision A 24/7 Emergency medical service for the most critically ill and injured.

Our Mission

Provision of emergency prehospital medical services, training, research and education for Devon and surrounding areas.

Our Values

Our values are important to us because they inform our actions and our behaviour.

Community Exemplary Patient Care • Caring; • patient led; • evidence led; and • developed through experience

• Owned by and for the people of Devon; • locally engaged; and • committed to regional and national collaboration

A Safe and Just Culture • Transparent; • fair and inclusive; and • ethically aware

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Excellence • Professional; • innovative; • effective; and • committed to robust governance

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Strategic Overview Our 5-year Strategic Plan In 2017, Devon Air Ambulance published its 5-year strategy which set out its charitable objectives up to and including 2021 in more detail, giving a clear strategic direction for Devon Air Ambulance and detailing how we aimed to achieve those objectives.

It documented the strategic considerations which were fundamental to ensuring we achieved our overarching goals. Through the hard work and dedication of everyone who works for and supports Devon Air Ambulance, the commitments contained within this Strategic Plan were achieved well ahead of schedule.

Since that time, further strategic developments have taken place which were not contained within the formal strategy document, such as clinical independence.

The charitable objectives were updated on the 27 June 2019, allowing a broadening of the service including the introduction of critical care cars which will be rolled out in 2020 and ensure that staff can still be deployed even when the aircraft is unavailable, for example due to bad weather or during planned maintenance.

We also continue to be committed to maintaining the independence of Devon Air Ambulance and to ensure that any decisions taken that have any element of external influence are made in the best interests of our service delivery, our fundraisers and supporters.

As this is the second 5 year strategic plan that has been largely fulfilled ahead of time we will be moving towards a more dynamic rolling strategic planning process.

For instance, the existing plan did not anticipate the opportunity for clinical independence or broadening of our charitable objects to enable us to enhance our service through the introduction of Clinical Care Cars. In a rapidly changing world our new approach to strategic planning will better reflect the entrepreneurial character of Devon Air Ambulance’s governance and leadership.

Patient Services • Evidence-led decision making in relation to clinical delivery; • Supporting our clinicians through peer review and Clinical Governance; • Supporting ongoing and enhanced learning and education.

Helicopter Services • Consideration of the most appropriate aircraft to support the future of the service; • Ongoing support to pilots; • Maintaining high standards of compliance and aviation safety.

Income Generation • All aspects of our vital fundraising operations, from lottery to donations; • Business and community engagement and fundraising; • Retail income and community awareness.

Finance • Overview of the targets we need to support all our service delivery objectives; • Ensuring money raised through fundraising is appropriately invested and spent well; • Supporting a professional and accountable governance function.

People • Ensuring our workforce has the right skills and experience; • Promoting a diverse and ‘just culture’ environment; • Supporting the mental and physical health and well-being of all our staff.

Infrastructure • Creating safe working environments for all staff; • Providing the appropriate I.T. systems; • Efficient and effective facilities, processes and procedures.

Through the hard work and dedication of everyone who works for and supports Devon Air Ambulance, the commitments contained within this Strategic Plan were achieved well ahead of schedule

Values There are a number of key values which influence our strategic direction, and which form the cornerstones of the service we provide to our patients, communities, supporters and staff.

Patient-led, Patient-first Our charitable aim is the relief of sickness and injury in Devon and surrounding areas. We ensure this aim is met by providing exemplary patient care, with any decisions made about the future direction of the service based on evidence gained over 25 years of experience, through continual review, development and learning. When deciding on any new strategic direction, we adopt a patient-led, patient-first approach, and ensure that providing exceptional patient service and care are the principal factors in determining all strategic decision-making.

At the heart of all our communities We have always been very proud to say that Devon’s air ambulances are owned by, and for, the people of Devon.

It is the local communities across the county that make our work possible. We are committed to working with them as they develop their own Community Landing Sites and are proud to confirm that 140 Community Landing Sites (‘CLS’) were ‘live’ at the end of 2019, enabling us to reach more people after dark than ever before. In addition, our 19 retail shops not only generate revenue for Devon Air Ambulance, but are a visible presence in our local communities, helping us to engage with our supporters and fundraisers.

Devon Air Ambulance is financially independent from local or national government funding, reliance on other central funding streams such as the National Lottery or from any EU funding.

Having political and financial independence enables Devon Air Ambulance to remain agile and responsive in terms of decision-making and strategic direction. This in turn allows us to think in the longer term about how we continue to enhance the first-class service we provide.

Because of our independence, the money we receive from our donors, individuals, business supporters and local fundraisers can be specifically targeted into enhancing our service, both now and in the future. Operationally, owning our two helicopters – rather than leasing from a commercial operator - and having our own Air Operating Certificate enables us to save money by reducing our overall operating costs.

A Just Culture Our staff and volunteers form the bedrock of Devon Air Ambulance, helping us maintain our outstanding professional reputation. We are committed to nurturing working environments that are safe and just, through promoting transparency, fairness, well-being and inclusivity. We are also committed to raising awareness of ethical issues, and continue to develop, enhance and promote our commitment to ethical working practices. We ensure our supporters are protected by looking after their data securely and fostering a culture of mutual support and respect.

Maintaining Excellence At the core of our overall vision for Devon Air Ambulance is our commitment to robust governance, professional conduct and the ongoing support and development for all our staff and volunteers.

Not Everything Was Perfect!

We’re proud of all that we achieve and our continued development but we don’t get everything right all of the time. While we’ve made significant progress in the year it’s important to acknowledge that some things could have gone better and to focus on the learnings and how to improve in these areas. Consistent with our Just Culture we expect learnings to be a core part of progression and do not expect things to be perfect first time every time.

Something we under-estimated was how much additional demand clinical independence would place on our support services. Further investment in this infrastructure is needed and budgeted for in 2020 in order to provide better support for this increase in both scope and scale of operations.

The first annual Trustee and SLT Away Day was a key step forward in relation to improving corporate governance and further refinements are expected in 2020 as we move towards a rolling Strategic Plan.

We have well established digital systems for capturing errors, incidents, near misses or potential hazards operationally.

This allows for robust governance, investigation and dissemination of learning. We recognise our systems on the charity side are less robust and plan to roll out the same system to the whole organisation in order to encourage a similar level of reporting and opportunity for learning across the entire organisation.

We’re also aware of the importance of progressing our plans for airbase and office facilities before 2023 to ensure everything is in place, including funding, to enable a smooth transition when the lease expires on the current Exeter airbase. Progress has been made in the year but we hope to be in a better position to provide a clearer picture in the next year.

Again we have not been able to meet our aim of opening two shops per year due to a lack of suitable premises. Although this is disappointing, we remain committed to expanding the number of shops we operate, and continue to proactively look for suitable premises. daat.org

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Operational Statistics 2019

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Patient Services 2019 marked a significant step in Devon Air Ambulance’s development when, through Devon Air Ambulance Trading Company Limited, we successfully registered as an Independent Ambulance Service with the Care Quality Commission (CQC).

From April onwards, we have been directly accountable for the clinical care we provide as well as employing or contracting the clinical staff who treat our patients.

Still working in close collaboration with the South Western Ambulance Service NHS Foundation Trust (SWASFT), who deploy us through the 999 system, Clinical Independence

opens up many new opportunities and possibilities. As well as enabling us to enhance even further the education, training and clinical capabilities our team can offer our patients, we are now able to provide our Patient Support Service to patients following their incident. We believe this will not only provide great benefit for our patients during their recovery and/or rehabilitation, it will also provide patients with the ability to feedback directly to Devon Air Ambulance regarding the care they received from us. This will enable us to continually learn from the experience of our patients as we further develop and enhance the life-saving service we provide.

Critical Care With 6 of our paramedics formally graduating from Plymouth University after completing their Masters’ Degree in Prehospital Critical Care Retrieval and Transfer, we have introduced a new clinical role of Advanced Paramedic – Critical Care, in line with the College of Paramedics Post Registration Career Framework.

These Advanced Paramedics have been developing a higher scope of clinical practice than we have been able to deliver previously.

Throughout the year we continued to develop our Clinical Governance processes and we welcomed representatives from the Fire & Rescue Service, the Police, Search and Rescue, our local hospitals as well as many land ambulance paramedics and clinicians to learn and train with us. Such collaboration helps ensure all personnel involved in helping to treat patients who have life-threatening injuries or illnesses are aware of each other's capabilities, with the aim to provide better outcomes for our patients and save even more lives.

As the sophistication of the life-saving care we provide increases, our service is being deployed more frequently to help patients located in towns and cities as well as the more rural parts of Devon. The combined care provided by highly trained land ambulance clinicians, alongside the additional life-saving interventions our clinical team is able to provide, means more and more patients are receiving a level of care that previously they would have had to wait for until they arrived inside a hospital.

Working closely with Devon’s acute hospitals and the regional Trauma Networks, particularly the Peninsula Trauma Network, in reviewing the care and outcomes of our patients, means we are all able to learn from each other’s experiences as we strive to deliver the very best care.

Our graduating paramedics

Community Landing Sites In November 2016, we were able to secure a grant from the LIBOR fines fund which enabled us to continue to support communities establish their own ‘Community Landing Site’, which enables us to land in towns, villages and hamlets during the hours of darkness.

We now have over 140 sites established throughout Devon which has enabled us to treat nearly 200 patients when it is dark.

Operating during the hours of darkness is now a very established part of our service and with another 70 sites in various stages of development, and Exeter and Plymouth developing multiple sites to serve their community, we expect to help many more patients as these new sites come online.

Sites in development

Sites already live

A grant from Health Education England in 2018 has enabled us to establish new processes and participate in simulation training with hospital staff. Our aim is to speed up, whilst maintaining the highest levels of safety, the transition of care between our clinical crew and hospital staff. Not just when bringing patients to a hospital, but also when collecting patents to transfer them to another hospital that can provide the more specialised care needed by the patient.

Linked to the grant application for the Critical Care Cars, we also secured funding to be able to place a semi-Automated External Defibrillator (AED) in each of our retail shops, head office and both our airbases (for when the helicopter is out).

Supporting our staff with training to deliver Basic Life Support and use the AEDs, we believe this is another way that Devon Air Ambulance can help save the lives of patients throughout Devon, and anticipate this project going live in Spring 2020 (see overleaf in 'Future Plans')

A grant secured from the Department of Health and Social Care has enabled us to purchase two Critical Care response cars, one for each airbase, for use when our helicopters are unable to fly due to bad weather or mechanical reasons.

Being able to continue to respond when traditionally we would have been unable to, will result in us being able to treat many more patients each year. The processes to establish the Critical Care Cars took place at the end of 2019, with the cars going operational in March 2020.

Training alongside other healthcare professionals

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Future Plans – 2020 vision and beyond New Helicopter

Following a comprehensive and detailed process undertaken in 2017-2018 to look at the options for replacement of our existing G-DVAA helicopter, a decision was taken in Spring 2018 to purchase an Airbus H-145. This decision was reached having considered a number of key factors, such as increased capacity and capability, cost, future mission requirements, reliability and access to third party support and maintenance.

This particular airframe was identified as offering the most appropriate solution for our aviation and clinical needs, with the added benefit of continuity of servicing provision by maintaining our pre-existing excellent business relationship with Airbus. Following ratification by the DAA board, an initial down-payment was made in 2018 and work commenced in 2019 on our new helicopter, registered G-DAAS.

Public Access Defibrillator Initiative In the 2018 Autumn Budget, the Chancellor of the Exchequer announced a fund of £10m was being made available to the UK’s air ambulance service in support of capital projects. Devon Air Ambulance submitted a successful bid for £226,000 for the provision of two fully-equipped Critical Care Cars (see operational update on page 11), and to locate 32 Public Access Defibrillators (PADs) across the communities of Devon. These vital pieces of accessible life-saving equipment will be located close to each Devon Air Ambulance shop, as well as at Devon Air Ambulance’s head office in Exeter, two airbases and on each of Devon Air Ambulances company vehicles and will be supported by staff training. This exciting new initiative will be promoted through local media with an anticipated roll out in Spring 2020.

The helicopter, which is being built on the Airbus production line in Donauworth in Germany, is anticipated to be completed in Spring 2020, when it will be flown to the Airbus facility at Oxford Airport for base engineering and interior fit to be undertaken. This will be followed by a rigorous acceptance programme, with anticipated delivery to Devon Air Ambulance expected at the end of May 2020.

The helicopter, which is being built on the Airbus production line in Donauworth in Germany, is anticipated to be completed in Spring 2020, when it will be flown to the Airbus facility at Oxford Airport for base engineering and interior fit

G-DAAS on the Airbus production line in Donauworth in Germany

Extended Flying Times Having successfully flown DAA’s G-DAAN helicopter up until midnight each day since November 2016, this was increased to 2am each day from the 7th January 2019. It is still anticipated that progression to 24-hour operations will be achieved by the end of 2021, although this will only be implemented if supported by continued evidence of need.

Expansion of Community Landing Sites We continue to work proactively with our local communities to help them facilitate their own Community Landing Site (CLS) and we were very pleased that, as of the end of 2019, we now have 140 ‘live’ sites available to be used after dark. In addition, approximately 70 other communities are working with us, either at the early planning stage, undertaking surveys or during the implementation process, and we are confident that we will have 150 'live' sites by the end of March 2020.

The deadline for applications to drawdown funds from the £1m grant awarded to emergency services

New Combined Head Office / Airbase As advised in our Strategic Plan (2017-2021), we plan to build a new combined Head Office and Airbase by 2023. The increase in staff numbers (particularly with the employment of our own clinical team) means that we are reaching physical capacity at our existing Head Office in Pinhoe.

This is combined with a number of other factors relating to our existing Exeter airbase. The current lease with Devon & Cornwall Police expires in 2023 and that facility is also now becoming operationally unsatisfactory in terms of training facilities, office space, locker room facilities (particularly for female staff), briefing/flight planning space as well as inadequate car parking. This is further compounded by the

charities from the LIBOR (bank fines) have been extended until March 2021.

The money provided by this fund has been used successfully since 2016 to support local communities, primarily to fund the cost of installing floodlighting.

With only just over a year to run until this fund is no longer available, a further drive to encourage new communities, and progress existing communities, to complete their CLS plans has been undertaken by the CLS Development Officer. As well as our existing rural communities, this now includes a focus on commissioning sites in our cities and more urban areas, such as Plymouth, Exeter and Torbay.

access issues (the airbase is ‘airside’ at Exeter Airport and therefore subject to rigorous security measures) which mean visitors, contractors and most staff members have to be escorted. In addition, we have benefited from a 10year agreement not to pay landing fees at our Exeter airbase following our funding of the previous airbase at Middlemoor.

This arrangement is due to end in 2023 after which, and subject to local negotiation, we would be incurring this additional charge.

While a detailed proposal has yet to be drawn up, we have started to make initial enquiries about the availability of suitable sites in the greater Exeter area, and have provided the initial rationale to the board of Trustees. Scoping and planning work will continue over the next 12-18 months.

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Enhanced Fundraising Opportunities As DAA continues to expand following clinical independence, the purchase of a larger aircraft and the scoping out of a new combined airbase, additional funds will need to be raised to support these additional costs.

Evidence and research confirms that investment in fundraising does increase income for the benefit of our patients. Our investment in fundraising has remained static for many years despite our growth but our forecasting

Supporting Mental Health and Awareness Devon Air Ambulance is proud to be a ‘Mindful Employer’ and has signed up to a voluntary ‘Charter for Employers who are Positive about Mental Health’. This supports our ongoing commitment to raising awareness of mental health and well-being issues across the organisation. For 2020, the focus of the annual staff Away Day will be around all aspects of mental, physical and corporate health and wellbeing.

Strengthening our Support Team

Our Support Team are the unsung heroes behind the scenes who we cannot function without, handling everything from recruitment to pastoral support, supply chain management and procurement to protecting and developing our digital infrastructure. As the organisation continues to evolve, so does the demand placed on these members of the team so we will be building in more capacity, not just through recruitment but also through training and development for existing staff, for example through further work supporting our Digital Champions.

now shows a need to increase our investment before our operating costs regularly outstrip our income.

A full review of our fundraising strategy commenced in detail early in 2019, and the Trustees and the Senior Leadership Team are due to review this in detail at the start of 2020. This review is considering what is currently being carried out as well as other opportunities that exist and the skills, expertise or technical knowledge we need for the future.

In anticipation of an aviation authority mandated requirement from August 2020, a Pilot Support programmme is being developed and introduced to facilitate more stringent screening and peer support for Devon Air Ambulance’s pilots.

Commitment to the ‘Green Agenda’ Climate change has become a significant area of concern not just for environmentalists but everyone, as evidenced when the UK Parliament declared a climate change emergency in May 2019 and more recently when the outgoing Governor of the Bank of England, Mark Carney, warned businesses to adapt or face financial losses or even bankruptcy. In 2019, a Retail Plastic Working Party was formed to consider the use of all plastics, particularly single-use, in our retail operations. In December 2019 our CEO set up and will lead a cross-departmental Green Team to help shape Devon Air Ambulance’s improvement plans in 2020.

Our Patients Farmer is DAA Frequent Flyer After suffering with an irritable cough for many months, farmer Nick Turner from Winkleigh was taken to hospital by land ambulance in 2011, where he was diagnosed with Farmer’s Lung, a condition brought on through the inhalation of fungus which can be found in most compost heaps. Nick now suffers from brittle asthma and is very susceptible to illness.

Nick’s symptoms can worsen rapidly and, because of this serious deterioration in his condition, he has been airlifted by Devon Air Ambulance on a number of occasions.

He has huge admiration for the clinical teams who attend him, even though he still gets anxious being in the helicopter.

Nick says ‘despite the seriousness of the situation, I am always very grateful for the aircrew’s calm professionalism’.

As Nick’s farm is only a few hundred yards away from DAA’s Community Landing Site at Winkleigh, he has installed a lit windsock to ensure that the site is more visible, and to help light the local lane which benefits the whole community.

Nick’s farm is just a few hundred yards from the Devon Air Ambulance Community Landing Site in Winkleigh, one of 140 around the county

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Raising the Money and Looking After Our Supporters Fundraising As an organisation that receives no regular local or national government funding and does not rely on any other central funding, fundraising in all its forms continues to be absolutely essential to raise the money Devon Air Ambulance needs, not only to deliver our current service but to enable us to grow and improve the service in the years to come.

Devon Air Ambulance actively promotes a wide range of income generation streams, including fundraising through its

own large-scale annual events, providing help and support to individual or community fundraising events and engaging with local business supporters.

In addition to our dedicated fundraising staff, our volunteers are crucial to the delivery of all our fundraising activities and provide support across a range of activities in the community such as servicing our collection boxes, talking to local schools and community groups in order to raise the profile of Devon Air Ambulance and attending local shows and events to support our stands.

Our Own Fundraising Events Commando Challenge – October 2019 The fourth Commando Challenge event took place over the weekend of Saturday 12th and Sunday 13th October. Owned jointly by the RMA - The Royal Marines Charity and Devon Air Ambulance, this event is unique among other similar challenges as it is the only one in the country which uses the Royal Marines own endurance course, usually reserved for the exclusive training of new Commando recruits. As always, the event in 2019 was supported by Clinton Devon Estates, The Royal Marines and Pebblebed Heath Conservation Trust, who are responsible for managing, maintaining and protecting the flora and fauna of Woodbury Common. In 2019, the event was delighted to welcome onboard its headline sponsor, Punch Taverns and to welcome back corporate supporters such as Kenniford Farm, Ventons Cyder, Marley Communications and Masons Kings.

Have you got what it takes?

12 /13 October Woodbury Common

Exmouth, Devon

commandochallenge.co.uk

As in 2018, the event featured two distances – 5k and 10k – available to participants on both the Saturday and Sunday. In 2019, the event attracted 1,386 entries, an increase on 2018 figures.

Learning from previous events, DAA continues to be committed to improve this event year on year, enhancing the event experience for both participant and competitors, as well as visitors, staff and volunteers from both charities, and corporate partners. In 2019, there was an enhanced and larger event village, providing entertainment, facilities and refreshment outlets for participants and spectators to enjoy. The enhanced event village experience included a number of food and drinks outlets, retail stands, crazy golf and a dog show as well as live-streaming of action from around the course, onto a big screen.

The last stage payment of the initial purchase cost of the event was made in 2018 and therefore, in 2019, the event was held for the first time without this associated cost. In 2019, the overall financial contribution was £80,000, split equally between DAA and the RMA - The Royal Marines Charity.

Motorcycle Ride-Out – July 2019 For the 14th year, DAA’s Motorcycle Ride-Out took to the streets of Devon, with approximately 929 riders plus pillion passengers taking part. To enable an orderly start, and to encourage greater participation from riders based in the north of the county, the 2019 event once again saw riders departing from two starting points, at Trago Mills in Newton Abbot and Evans Transport in Bideford. The riders took a scenic 80-mile journey around the Devon countryside, finishing at the Den in Teignmouth for an afternoon of live music, entertainment and refreshments.

The event has always been popular, providing a regular income stream for Devon Air Ambulance and importantly enables us to engage directly with many of our core supporters in the motorbike community. Given its popularity, if the event and number of participants continues to grow, it is anticipated that an alternative end venue will need to be considered that can accommodate a larger number of motorcycles and spectators, as well as giving greater control to Devon Air Ambulance over costs and funds raised by concessions.

As previously reported, there was a road traffic collision during the 2018 event, involving a number of bikes, which resulted in the death of one of the riders. Everyone at Devon Air Ambulance, and connected to the Motorcycle Ride-out, would like to resend their condolences to his friends and family, and to thank his wife for her continuing support to the Charity after the incident. The police instigated an investigation and the inquest was opened and adjourned until June 2019.

At the inquest, the coroner recorded that no blame or criticism was directed at DAA as the event organiser.

The Police contingency planning office had rated the event as low risk and witnesses were complimentary towards the marshaling and setting off, in line with our planning and risk assessments.

DAA welcomed the support it received from the county’s motorbike community, past and present participants and, crucially, the family of the deceased rider which were important factors in DAA’s decision to run this event in 2019. This year, we are pleased to report that the event passed without incident.

In 2019, the Motorcycle Ride-out raised £12,800 from participants’ fees and concession contributions. As with all DAA’s own events, the organisation, planning and delivery, as well as practical support on the day, is provided by the Fundraising department, other staff and volunteers. We are extremely fortunate that Bridge Motorcycles of Exeter continue to sponsor the event and have made a firm commitment to do so again in 2020.

Participants in the 2019 Ride-Out proudly displaying their t-shirts

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Dragon Boat Festival – September 2019 The 6th Dragon Boat Festival took place at Exeter Quay on Sunday 22nd September. As usual, and despite the extremely inclement weather on the day, the event was enjoyable for participants and spectators alike. As in previous years, the delivery of the event is undertaken by Dragon Boat Events, who provide all the equipment, boats, safety equipment, training and prizes. In addition, DAA benefitted once again from the support of its headline sponsor, Burts Snacks Ltd. The DAA Fundraising team, other members of staff and volunteers provide the logistical support on the day.

Each team pays a fee of £360 per boat. In addition, team members of each boat are encouraged to raise additional money through individual or team sponsorship. In 2019, the number of competing boats was 10, down from 16 in 2018. In terms of revenue generated, the event raised £25,000.

Lottery

Community Fundraising

The Lottery continues to be one of the Charity’s main income streams and, in the fourth quarter of 2019, the total number of members exceed 40,000 for the first time. In the latter part of the year, the team of canvassers was strengthened with additional recruitment and with a focus on retention, which has proved beneficial.

Despite some early ‘teething problems’, the Direct Debit system introduced in 2018 is now working well, meeting DAAs needs in terms of ease of use and efficiency by saving administrative time. This has resulted in a very positive 31% of all members now paying their membership via Direct Debit.

For 2020, further work will be undertaken around retention of current canvassing team members and looking to identify new outlets and events for them to attend.

Overall the lottery generated £2,032,000 of income in 2019, an increase of £30,000 from 2018.

YOU CAN JOIN OUR LOTTERY BY: • Completing the Lottery Membership Application Form available from our website, daat.org/lottery or • picking up a form at any of our 19 shops • via a DAA lottery canvasser at events and destinations around the county

2019 was another busy year in terms of number of local events and individual sponsored activities which were supported by DAA. Overall, income from community fundraising was up 1.5% on 2018 figures, ending the year at £681,000. Direct donations were down 19%, and finished the year at £475,000. Although it was disappointing to see the decrease, donations were unusually high in 2018 and this returned towards the expected level (donations were £458,000 in 2017).

The Woods Bingo in Tiverton, run from 2009-2019 by Graham and Christine Woods, has raised nearly £40,000 for DAA

Our Patients David is a Medical Miracle A keen motorbike rider, David Entwistle of Plymton was involved in an horrific multi-vehicle accident on the A38 which left him with serious injuries. On arrival at the scene, the Devon Air Ambulance clinical team administered pain relief and, having strapped him to a pelvic board, agreed the quickest and safest way to transport him rapidly to Plymouth’s Derriford Hospital was by land ambulance.

Doctor Alex Cross and Critical Care Paramedic Kate Adlam continued to treat him as they sped to the hospital. David had suffered life-threatening injuries, including breaks to both legs, one arm, wrist and hand. He had also suffered four fractures of the spine, a shattered pelvis and multiple internal injuries. After three months in hospital, David was transferred to a local hospital near his home, where he began essential physiotherapy and rehabilitation and, despite early worries that he would never walk again, is now making remarkable progress. DAA was delighted to welcome David and his extended family to Exeter Airbase to meet with the crew who attended him that day; David is convinced that, without the intervention of the team from DAA, he wouldn’t be here today.

David is convinced that, without the intervention of the team from DAA, he wouldn’t be here today

David and family reunited with paramedics Kate Adlam and Adrian Parker (far left and far right) and Dr Alex Cross (second left)

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Additional income streams and support Legacies

‘winners’ at our annual Dragon Boat Festival and have nominated DAA to receive a $10,000 grant which was received in December 2019.

Other business supporters of note include Kivells, uCheck, and South West Water.

Legacy income had yet another strong year, reaching £2.8m in the year against a budget of £2m. This compared to £2.8m in 2018 and £4.2m in 2017, and due to these strong figures the budget for 2020 has been increased to £2.8m.

Legacy income is notoriously unpredictable which proved true throughout the year, with over £1m received in the first quarter and £1.2m in June and July, while other months contributed significantly less. This was potentially impacted in the year by some external factors such as the probate registry delays following ‘teething problems’ encountered when transitioning to a new computer system and the uncertainty around the Smee & Ford wills notification service.

Both these issues appeared to impact timing of notifications and probate which drive when legacy income is included within our accounts, but both were essentially resolved by year end. The probate registry appeared to be back on track with workloads and a short-term solution was in place for the Smee & Ford notifications, so neither is believed to have impacted the year-end figures included in this report.

While the Charity has made a conscious decision not to aggressively market or target individuals to leave a legacy, the possibility of leaving a gift in a will is flagged in a number of ways, such as through our website, our Helipad publication and as part of the presentation we deliver to community groups and organisations.

Local Business Supporters In 2019, we worked closely with around 20 local businesses and corporates as Charity Partners. We also had 25 businesses who formally nominated Devon Air Ambulance as their ‘Charity of the Year’, ranging from local golf clubs to Rotary and Inner Wheel groups.

We are fortunate to have some long-standing business partners, such as Arconic (Howmet) Ltd, who have been supporting Devon Air Ambulance since 2004 in a variety of ways, from putting collection boxes in their canteen to organising golf days. They have also twice been crowned

As well as directly raising money for Devon Air Ambulance, some of our local business supporters provide us with expert support or as ‘headline sponsors’ for our events. We are particularly grateful to those local business supporters who have generously acted in this capacity at our three DAA events in 2019; Punch Taverns (Commando Challenge), Bridge Motorcycles (Motorcycle Ride-Out) and Burts Snacks Ltd (Dragonboat Festival).

In addition, local businesses also offer support in other ways; Majestic Coffee offer DAA-branded coffee machines to organisations, clubs and groups, giving a percentage of the cost of each beverage sold to the Devon Air Ambulance. Similarly, Mountain Warehouse donate all the profits from the sale of canvas bags in selected stores. In 2018-2019, this initiative alone raised around £2,500 and they have generously offered to extend this to all of our Devon stores into 2020.

Retail Retail continues to play an extremely important part in Devon Air Ambulance’s income generation but also in meeting our commitment to our local communities and ensuring that Devon Air Ambulance remains visible across a geographically large county. Devon Air Ambulance shops only sell good quality stock donated by our supporters and local people. This supports recycling and reuse of goods that might otherwise go to waste as well as giving people an opportunity to shop for quality items at an affordable price.

The initial investment for shop refurbishments was anticipated to be paid back over a 3-year period and will therefore continue to be reflected in the overall financial contribution until 2022.

The implementation of our shop till replacement project took place in 2019. After a long period considering and evaluating the market options, Nisyst were identified as the preferred supplier of EPOS (Electronic Point of Sale) and Gift Aid solutions for the charity sector. Their system was evaluated as providing the appropriate technological solution, including the ability to track and maximise Gift Aid donations effectively.

Ahead of delivery, the DAA senior retail management team undertook thorough due diligence, planning and scoping work, to ensure the implementation of this large scale project across multiple sites was as smooth and seamless as possible.

A number of retail shop managers were also identified to undertake in-depth training which they were able to cascade down to retail colleagues and were available to provide support and advice throughout the implementation period.

Work to replace tills started in January and was completed in March 2019.

In 2018, a decision was also taken to relocate to a new warehouse facility in Exeter as the existing premises were no longer suitable, primarily due to lack of storage capacity. The new warehouse was opened in May 2019 in the Marsh Barton area and, since that time, the logistics team have been using the additional capacity to build up more out of season stock which will ensure greater resilience and availability of appropriate items in the correct season, and for general storage.

Shop Till Replacement Project: Ahead of delivery, the DAA senior retail management team undertook thorough due diligence, planning and scoping work, to ensure the implementation of this large scale project across multiple sites was as smooth and seamless as possible Our retail shops fulfil a number of other functions, in that they give Devon Air Ambulance a vital platform in terms of Devon Air Ambulance maintaining our brand recognition, helping us to disseminate information to the widest possible audience, engage locally with volunteers and support local people with their fundraising activities.

In 2019, the need for extra warehouse space was identified, so it was agreed to take out a second lease on an additional storage facility adjacent to the new warehouse. Negotiations took place during 2019, with an anticipated opening in Spring 2020.

In terms of financial contribution, and despite the challenges experienced during 2018, a very positive upwards trend has continued throughout 2019, with Devon Air Ambulance outperforming both the charity, and commercial, retail sectors.

The sales income of £2,149,000 onwards was extremely healthy, and the year ended strongly with an overall annual contribution of £304,000 to overheads and profit. Gift aid contribution in 2019 was £101,792, an increase of £9,613 on h e l p s ave l i ve s o ve d i te m s to 2018 figures.

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While Devon Air Ambulance’s strategic plan forecast an increase in the number of shops by two per year (with an anticipated total of 28 by 2021) this has proved challenging, largely due to the lack of suitable charity retail premises in those locations identified as the most appropriate for further expansion of the retail shop portfolio. In consequence, no new DAA shops were opened in 2019. However, efforts continue Devon to find suitable Air Ambulance 466666 daat.org premises, with our current focus looking in and 01392 around Torbay. cdf In relation to shop refurbishments, the last major planned updates took place during 2018, which meant only ad-hoc or unexpected remedial work on premises was required in 2019.

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Annual Report 2019 21

Communications and Marketing This year has been one of learning and development in communications and marketing, with the growth of the wider DAA and DAATCL team. Internal communications can be challenging for any business and we continue to look at effective ways to communicate across the organisation.

Objectives for 2019 included increasing storytelling, which sits at the heart of all we do. Engagement was higher when we told the real-life stories of our patients, together with case studies of an operational theme; e.g., when our new aircrew joined. We have increased the number of videos produced, which have been popular on our digital channels.

As well as producing a professional magazine that promotes the Charity alongside articles of local interest, people and places, anecdotal evidence suggests that Helipad has also inspired its readers to fundraise for the Charity, engage with businesses as a Charity Partner or Charity of the Year, join our lottery or leave us a gift in their will.

While DAA's new communications strategy is currently in a draft format, it will be guided by the strategic objectives of the whole organisation.

We receive great support from community publications such as Molton News and the Mid Devon Advertiser who chose DAA as their charity of the year in November. We have received free advertorial space from organisations including Dunkerswell Karting Club and Heathcoat Cricket Club. Several local businesses continue to support us through gifts of kind including Silver Foxes Publishing and Signs Express.

Devon Air Ambulance Trading Company Limited We are mindful to ensure we don’t concentrate purely on the digital/online audience and use a cross-section of media. Using the Agility PR software platform has helped us to reach these audiences and monitor their effectiveness. This year has seen a 26% increase on supporters requesting our e-newsletter, which incorporates e-Helipad. Our social media channels continue to grow and prove to be a great way to communicate.

Our Helipad magazine continues to be published three times a year, with an average print run of 40,000 copies per issue, of which approximately 35,000 copies are directly mailed to our supporter base.

The CQC (Care Quality Commission) requires Independent Healthcare Providers to clearly communicate which organisation is providing patient care. In our case this is our wholly owned subsidiary Devon Air Ambulance Trading Company Limited.

To reinforce this, we have developed a separate brand identity for the Trading Company and it will soon have its own website (daatcl.co.uk), acting as a portal for our patients to obtain more information about our operations, and be able to contact us on all aspects of their care and treatment.

Recruitment Increasingly social media is becoming a popular cost-effective platform for recruitment. It is far reaching and through the boost post we can target the right audience and area.

As well as being an important promotional vehicle for DAA, Helipad enables the Charity to engage with local advertisers, directly thank our fundraisers and business supporters, inspire potential new supporters, feature our patient stories and promote our own DAA events such as the Royal Marines Commando Challenge, Motorcycle Ride-out and Dragonboat Festival.

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Future Plans In November 2019, we held an Emergency Response Plan (ERP) exercise. This is an annual requirement to test our emergency planning and procedures in a real-time scenario that the main participants are not aware of in advance. The learnings from the exercise identified areas for improvement which are currently being addressed. These scenarios are invaluable as they enable us to test our procedures and resilience in a safe learning environment.

Patient Liaison Patient Lydia Perraton and her family vist the Exeter airbase

2019 was a busy year for Patient Liaison with 160 patients contacting us after their incident, more than ever before.

We hosted visits for almost 200 guests at our airbases, including facilitating reunions for our patients and their families with members of the aircrew. Other guests included volunteers, business supporters and fundraisers. As well as learning more about the service of DAA, all guests had a tour of the helicopter, met the aircrew and saw some of the specialist kit our medics use. We shared 17 patient stories in our Helipad magazines and others on our website and social media platforms.

Our Supporter Promise Devon Air Ambulance continues to be totally committed to our ‘Supporter Promise’. We have never been, and will never be, involved in cold calling, direct mailing or any form of pressure selling. We take the protection of the personal data of all our supporters and donors extremely seriously and constantly review our fundraising policies and procedures to ensure we deliver ‘best practice’ within the sector.

Our Supporter Promise • We do not share or sell any of our supporters’ data.

• We treat our supporters as we would wish to be treated ourselves.

• The only mail we send out is our Helipad magazine (three times a year) to keep our supporters up to date with our activities and local interests.

• We do not authorise any house-to-house fundraising or sales. The only face-to-face sales we authorise are for our in-house lottery.

• We do not employ third party companies to ring our supporters asking for more or to cold call. daat.org

Annual Report 2019 23

Supporting Our People Our People Like all successful organisations, Devon Air Ambulance relies on well trained and experienced staff working across a broad range of diverse roles within the Charity, from pilots to retail managers, office and administrative staff to specialists in fundraising and communications. In 2019, the roll-out of clinical independence meant Devon Air Ambulance also welcomed the existing and new Critical Care paramedics and doctors into the team.

Devon Air Ambulance is committed to treating everyone with respect, to creating a safe and healthy workplace and ensuring a ‘just’ culture for all.

In 2018, Devon Air Ambulance was one of the first charities to sign up to the newly created Eight Diversity Principles, promoted by Charity leaders’ network ACEVO and the Institute of Fundraising. These principles were designed to encourage the charity sector to be more inclusive and engage with the broadest range of available talent in the workplace. This year, to support this commitment to diversity, Devon Air Ambulance has introduced a ‘blind CVs’ element to their recruitment process which eliminates any potential conscious or unconscious bias when selecting candidates for interview. In addition to this, a number of staff attended an Equality & Diversity training session that covered many aspects but focused around employing people living with disabilities and how to support and include them in the workplace.

Inductions and 1:1s All new members of staff (and existing staff on a rotational basis) attend a half-day ‘Culture Induction’ at Head Office in Exeter. This provides important information about Devon Air Ambulances’ history, brand, culture and expected behaviours as well as giving an oversight of our aims and objectives as detailed in the Strategic Plan. The session also looks at the role of volunteers and the Supporter Promise within the organisation, as well as the importance of relationships with key stakeholders and partners, and our focus on a ‘Just Culture’ and ‘Digital First’.

The morning ends with a practical session, delivered by our Critical Care Paramedics, on basic life-support techniques.

Line managers also conduct monthly 1:1 meetings with their direct reports. A standardised online template facilitates a number of discussion items such as wellbeing, workload and learning and development, as well as what they see as the top priorities for Devon Air Ambulance. In support of adopting a ‘bottom-up’ approach to risk, employees are also asked about any risks they have identified within their own working environment, team or the wider organisation.

Volunteers As well as paid staff, as of the end of 2019, we had 655 volunteers who provide invaluable support across a wide range of functions and business areas within Devon Air Ambulance.

This includes helping at Head Office, representing DAA at events and attending cheque presentations, giving talks on Devon Air Ambulance’s operations and servicing our collection boxes.

A dedicated Volunteer Manager is responsible for ensuring all our volunteers are well informed, trained and supported. This in turn reinforces to our volunteers how much their contribution is valued by Devon Air Ambulance, as well as how much we value their individual well-being and their overall volunteer experience.

Ensuring regular communication with volunteers is a vital part of this process. The Volunteer Manager produces and distributes a fortnightly e-publication called V-News which provides all our volunteers with news, information and important updates, as well as celebrating their contribution and achievements.

Training and Development Devon Air Ambulance is committed to identifying skills gaps and training needs, and to ensure staff receive appropriate training to enable them to effectively carry out their jobs. Learning and development is absolutely vital to what we do and we want our staff to be highly skilled in order to perform their very best.

In early 2020, Devon Air Ambulance will take on a Learning & Development Manager who will be tasked with getting the very best out of our employees as well as implementing coaching and mentoring strategies throughout the organisation.

Engaging with our staff The value and benefit of ensuring staff are aware of what is happening across DAA is very important in helping to foster a ‘one-team’ ethos with shared values, goals and objectives, regardless of which part of the organisation, business area or team a member of staff works. This proactive approach to engagement across the whole organisation is achieved in a number of ways, as detailed below:

Annual Staff Survey DAA conduct a comprehensive staff survey on an annual basis.

Historically, this was undertaken through an online survey tool but, in 2018, an independent company called Best Companies was engaged to conduct the annual survey and did so again in 2019.

The survey is completely anonymous, to enable staff to feel confident that their responses can be open and honest. The trends and outcomes are collated and analysed by Best Companies and the results provided to the DAA HR Manager and the Senior Leadership Team. Final results and analysis are then shared with all staff. An additional benefit of engaging with Best Companies is it enables Devon Air Ambulance to be benchmarked against other not-for-profit organisations and other South West employers.

The survey looks at a number of key areas, such as communication, learning and development, manager relationships, support, team relationships, pay and benefits, giving something back to the community and potential stress/ work pressure points. Where appropriate, the Senior Leadership Team use the results of the survey to identify areas of concern and put measures in place to address these.

The results of the survey conducted in 2019 were incredibly positive. Devon Air Ambulance achieved a 2 star award from Best Companies meaning the organisation has very good

levels of employee engagement. For 2020, we were delighted to be placed 13th in the Sunday Times ‘Top 100 Not for Profit Companies to Work for’, compared to 51st place last year. In 2019, we were also placed 38th in the ‘Top 75 South West Companies to Work for’ and we are extremely hopeful of improving on this position for 2020.

Quarterly Head Office staff meetings During the first half of 2019, Head Office staff joined retail managers and assistant managers every two months. However, given that retail staff have their own extended meetings, and physical office space has proved challenging to accommodate such a large number of staff at one time, the decision was taken at the end of 2019 to hold a quarterly full-day Head Office-only staff meeting instead with a more focused agenda, dedicated to updating staff on current issues and allowing time for more detailed learning relevant to specific Head Office issues. The first meeting of this new format was held in December 2019, looking at health and safety, the 2019 staff survey results and updates in flight operations and patient services.

e-News An internal newsletter is emailed to all staff each week, and includes the latest news on finance, operations, retail, HR, fundraising and communications, as well as updates from the Senior Leadership Team. The newsletter also includes a ‘Thumbs Up’ section where members of staff can publicly recognise and thank their colleagues or members of their team for any help or support they have received, or to highlight a particularly outstanding contribution.

Annual Staff Away Day In May 2019, Devon Air Ambulance held its Annual Away Day, again at Crealy Theme Park & Resort, Clyst St Mary, which was attended by all staff (office, retail, Support, paramedics, doctors and pilots) as well as colleagues from the HEMS (Helicopter Emergency Medical Service) dispatch team working out of the South Western Ambulance 999 call centre.

This was a full day of team building activities, demonstrations and training and was designed to give all members of staff the opportunity to learn what their colleagues do, share ideas, reinforce our Mission, Vision and Values and also have time for social interaction. The day culminated with the annual Awards ceremony, where individuals and teams were nominated by their managers and peers, and which recognised significant achievements and outstanding contributions in a number of specific categories such as ‘Employee of the Year’, ‘Manager of the Year’, ‘Above and Beyond’, ‘Bright Spark’ and ‘Innovation of the Year’. We also took the opportunity at the Away Day to recognise commitment by presenting Long Service Awards for 5, 10, 15 and 20+ years’ service.

specific flight safety) of health, safety and welfare related to DAA’s properties, as well as for its staff, supporters and volunteers. As part of its remit the Committee reviews health and safety policies and standards, non-aviation accidents and incident reports, safety audit reports, the results of the Annual Staff Safety survey and the effectiveness of relevant training and safety communications.

Pay and Performance The People and Culture Committee monitor pay and other benefits against benchmarking data to ensure we remain consistent with our pay policy, which itself has been reviewed during the year.

We have established line management guidance, including 1:1s, appraisals, performance development planning processes and performance improvement planning if needed. These have also been reviewed and refined during the year to better meet the needs of the individual and the organisation.

Pay Policy Our policy is to set salaries using an accountable and transparent process for all staff in line with average market rates for similar roles requiring similar levels of knowledge, skill, experience and responsibility to achieve the highest standards across all areas of DAA’s work.

There is due regard given to balance and fairness, and the need to ensure value for money; this approach enables DAA to recruit and retain high quality staff in the context of national, regional and local labour markets. It has also led to success in recruitment and excellent retention levels without exploiting the goodwill of our dedicated team.

The lowest salaries will match or exceed the minimum Living Wage as set by the Living Wage Foundation.

The value and benefit of ensuring staff are aware of what is happening across DAA is very important in helping to foster a ‘one-team’ ethos with shared values, goals and objectives.

On 25th March 2020, the annual Away Day will be held at Flybe Training Academy at Exeter Airport and will focus on mental and physical health and well-being, reflecting our commitment to supporting the mental and physical wellness of all our staff, particularly those whose roles bring them into direct contact with often harrowing and traumatic situations.

Health, Safety and Welfare In 2019, a quarterly cross-departmental Health, Safety and Welfare Committee was set up to look at all aspects (excluding daat.org

Annual Report 2019 25

Planning to Succeed Improving efficiency The ‘Digital First’ focus adopted in 2018 has continued into 2019, with Digital Leadership training being completed in April and extended across further staff throughout the year. Due to the speed at which technology is developing the Digital Strategy developed in 2018 will be dropped in favour of digital being an integral element of our future strategy as it impacts on every aspect of our work.

Systems developments have continued with the rollout of the new till system and a completion of moving all invoices onto an electronic system which was made Making Tax Digital compatible to meet the new HMRC requirements.

Support costs as a percentage of income is regularly monitored as a key performance indicator. Due to continuing investment in our infrastructure to support our growth, this is expected to increase in 2020 following its decrease in 2019 from 7.2% to 6.8%.

Investing in IT infrastructure continues to grow in importance as cyber-crime is an increasing threat, while we focus on Digital developments which impact our whole society now and will increasingly do so in the future. As with all costs, administration and support costs remain under constant review to ensure that they proportionate and required.

Fraud Investing in the IT infrastructure, and the people to underpin this, remains vital in an environment which sees cybercrime continue to evolve as a danger. It has been identified that following clinical independence further investment is needed in this area to ensure that sufficient resources are in place.

The Charity sector remains a target for fraud, particularly with the evolvement of cyber fraud which has continued at a gathering pace. We therefore remain committed to the prevention of fraud and the promotion of an anti-fraud culture.

For each £1 we spend on fundraising and income generation (including support costs) in 2019 we raised £2.79 (2018: £2.70). The general industry trend has seen this figure fall and it is recognised that DAA is in a position where it needs to raise further funds going forwards to cover the increased expenditure.

It is therefore expected that additional expenditure in 2019 will not create an immediate return and that this figure may well fall ahead of stabilising as the investment begins to generate increasing revenues.

We have taken the Charity Finance Group counter fraud pledge and continue to follow the six promises outlined within it, including creating and maintaining an anti-fraud policy and assigning a key person to take responsibility.

Administration and Support Costs Good administration is key to efficiency with a direct impact on our effectiveness and so remains a key area under constant review. Efficient administration drives informed decision making and continual improvements while mitigating risks, potentially saving further costs by safeguarding Devon Air Ambulance’s assets for the ultimate beneficiaries.

As a prime example of this, our Facilities Manager worked closely with our energy suppliers, looking at greener and cleaner options which, in turn, proved more cost effective overall and helped to substantially bring down the cost of Devon Air Ambulance’s utility bills across all out sites, offices and retail premises whilst being carbon neutral.

Both our accounting system and database need to capture accurately the thousands of transactions that are processed, ensuring that our regulatory responsibilities such as GDPR are met while supporting our operations for example ensuring that we thank our supporters. A qualified Senior Finance Manager was recruited in the year to strengthen the technical skills and capabilities of the finance team and its integration with the rest of DAA. The balance between cost and benefit is under constant review by the SLT. With the increasing legislation in the charity sector and following the move to clinical independence it has been identified that additional investment is required to ensure Devon Air Ambulance can continue to evolve and develop.

A restructure of the Finance team allowed for the creation of a risk focused role to provide increased oversight of controls. Although this role has yet to take shape in the year, it will be a focus for 2020.

Staff receive weekly updates keeping them up to date with the latest news and examples of fraud while also periodically being assigned intranet training around fraud and counter fraud practice.

We work closely with our external IT providers to ensure that we are suitably protected from cyber-attacks.

Although there have been no significant breaches of our defences identified in the year, we remain conscious of the likelihood that as with any organisation fraud is likely to impact on us . While good controls can help to limit the likelihood and impact of fraud, it does not eliminate either.

Review of Financial Performance Performance Review A surplus of £255,000 was made in the year, which was below the prior year surplus of £477,000 but well ahead of the budgeted deficit of £1,170,000. This was mainly due to the investment gains of £594,000 (following an investment loss of £306,000 in 2018) which was well ahead of the budgeted gain of £115,000, as well as legacy income exceeding budget by £872,000. Operational costs increased by £1,280,000 following the move to clinical independence and due to high aircraft maintenance costs in the year.

The budgeted shortfall was in line with long-term expectations due to increased operational costs and significant reserves have been built up to fund this allowing time for income to grow and match this expenditure, while also financing significant capital expenditure such as replacement aircraft and the new airbase in 2023.

Therefore the expectation going forwards is for short-term deficits although this may be offset by a profit on disposal of one of the current aircraft once its replacement comes online in 2020.

Income Income has been driven again by legacy income, so this year’s strong total of £2,872,000 has contributed to total income before gains and losses on foreign exchange of £9,056,000 which is £514,000 (6%) higher than 2018.

The charitable activities cost increase formed the majority of the £1,466,000 increase in total costs, while retail costs also increased by £98,000 to support the additional sales. As lottery sign-ups began to pick up at the end of the year, the costs also increased by £64,000 as numbers went up.

Other Movements The £594,000 accounting gain on investments was in line with market conditions and expectations following the prior year fall.

The investments are held over the medium to long term and short-term fluctuations are expected.

A foreign exchange loss of £123,000 was made on the Euros held ahead of the formal payment on the new aircraft.

Net assets have increased by the surplus of £255,000 to £22.6 million with £7.7m tied up in fixed assets and £6.7m in long term investments.

This leaves £8.2m of net assets to fund ongoing operations, short term maintenance and repair costs, maintaining and improving the infrastructure and the continuing enhancement of the service.

The Trustees remain mindful of the importance of generating and monitoring significant financial resources to continue operations, particularly with the uncertainty of and fluctuations inherent within specific income streams such as legacy income.

A very strong performance by retail has resulted in a 5% increase to £2,149,000 despite no new shop openings – while the charity retail sector grew in the year, this performance exceeded expectations and demonstrates the benefits gained from the investment made in the retail infrastructure in previous years.

Celebrating our volunteers service

Lottery income increased by 1.5% to £2,032,000 and is believed to offer opportunity for growth looking forwards. This had been relatively stable in recent years as the new direct debit process was put into place, which has now settled in.

Event income is now largely driven by the Commando Challenge which generated £39,000 of the £71,000 total revenue.

Donation income fell £114,000 following an excellent 2018, marginally offset by a £10k increase in community group income (to £681,000) and £6,000 increase in collection box revenue (to £190,000). These movements tend to be cyclical.

Expenditure Additional expenditure was budgeted for and incurred although the increase in charitable activities expenditure by £1,280,000 was above budget. Operating costs are expected to fluctuate due to irregular maintenance costs, which is why funds are designated for helicopter maintenance to ensure cash is available to pay for maintenance costs as they arise.

Approximately half of the above increase was due to additional maintenance costs in the year'

daat.org

Annual Report 2019 27

Financial Position at the Year End Income Income ÂŁ'000 817

General Donations

2,872

Legacies

2,032

Lottery Retail

2,149 681

Community Groups

244

3%

me Other Inco

%

ity un m m Co

%

8 ups o Gr

9%

Other Income

190

2 st e Inter me & 1%ts t Inco n tmen Eve Inves

Investment Income & Interest

71

Gen eral Don ation s

Events

24% Retail

Total Income

ÂŁ9.056m

32%

Legacies

22%

Lottery

Expenditure Expenditure £'000 714

General Donations & Legacies

496

Lottery

2,026

Retail

63

Events

77

Investment Management Costs Operations

5,896 255

Funds Retained for Future Service Enhancements

Total Expenditure

£9.527m

£3,299,000

Cost of Fundraising, Retail & Lottery

£8,640,000

Income from Fundraising (including retail and lottery)

5

Lo % tte ry

7%

Gener al Don ations & Leg acies

3%

ture ined for Fu Funds RetaEnhancements Service

Cost of Income

21% Retail

% 62tions

1

era Op

Ev % 1%ents In Ma vest co na me sts ge nt me nt

daat.org

Annual Report 2019 29

Reserves Reserves Policy The Reserves policy and the designations made within the reserves are key tools in monitoring and maintaining sufficient cash flows. In line with Charity Commission guidelines, the Trustees monitor the level of reserves to ensure that they are sufficient for Devon Air Ambulance to achieve its objectives. The Trustees deem it necessary to have the security of reserves to enhance and develop the service with confidence, particularly where there may be a timing delay between implementing more costly operational activities and obtaining the necessary funding.

The Trustees review the allocation of the Charity’s reserves and make specific designations where applicable. The Trustees aim to hold sufficient free reserves to cover 12 months of expenses following a 33% decrease in revenue. Due to the diverse income streams in Devon Air Ambulance in normal circumstances it is deemed highly unlikely that income will drop beyond this level in the short term. Such a significant fall in income is more likely in the current climate of uncertainty, to which the significant reserves currently held provide assurance against. Free reserves are considered to equal the General Reserve (I.e. total reserves, less restricted and designated funds) less attributed tangible fixed assets and non-current investments not allocated to designated funds. as displayed in note 20.

At the year-end total reserves were £22,633,000 and free reserves of £7,545,000 comfortably exceeded the £3,508,000 representing 12 months costs following a 33% decrease in revenue. This level of reserves is considered reasonable by the Trustees with costs expected to increase in 2020 and beyond. Forecasts running to 2023 show the ‘target’ and ‘actual’ free reserves lines converge’.

Designations & Restricted Income The free reserves discussed above are calculated after deduction of restricted and designated funds, which are explained in detail in note 19 of the accounts.

The main restricted fund relates to the £398,000 which remains from the £1,000,000 awarded from the LIBOR funds in 2016, of which £158,000 was paid out in the year. £226,000 of restricted funds have also been committed from the Department of Health & Social Care towards the clinical care cars and defibrillators to be purchased in 2020.

The Moretonhampstead and District League of Friends donated £35,000 to enable the purchase of three ventilators in 2017 which have now been purchased with depreciation charges reducing the fund to £28,000.

The Trustees are not looking to set an upper limit on the level of reserves at this stage, as substantial resources will be required to enhance the provision of the service, and the designations which form part of Devon Air Ambulance’s total reserves will continue to be regularly reviewed by the Trustees. Holding reserves above the target level also provides further resilience in turbulent and uncertain domestic and international times.

In 2018 there was also a donation from the Essex Trust for £36,000 which remains unspent. £2,000 has been received in the year from Tesco to be spent on smart screens in the shops as well as £25,000 towards and Intelligent Ventilation system. The most significant designation is the £3,623,000 for the helicopter replacement due in May 2020, with a total of £836,000 also designated for helicopter maintenance, and £261,000 for key manager cover. A new provision has been established in 2019 for the proposed new Airbase in 2023 – this Reserves £'000 designation is increasing monthly and is likely to change as more clarity around cost and timing is established 36 Restricted Reserves - Essex Trust in the coming year. Health Education England have provided a grant to establish new processes and 398 Restricted Reserves - Community Landing Sites particiate in simulation training with hospital staff, of which £6,000 remains available at the year end.

28 Restricted Reserves - Moretonhampstead

6 Restricted Reserves - Health Education England 226 Restricted Reserves - Critical Care Cars 25 Restricted Reserves - Tesco Ventilator 750 Designated Reserves - New Airbase 836 Designated Reserves - Helicopter Maintenance 3,623 Designated Reserves - Helicopter Replacement 261 Designated Reserves - Key Manager Cover 7,545 Free Reserves 1,182 Held as non-current investments and not allocated to designated funds 7,717 Held As Fixed Assets

34%

As Held Fixed ts Asse

<1% Restricted Reserves - Essex Trust 2% Restricted Reserves - Community Landing Sites <1% Restricted Reserves - Moretonhampstead <1% Restricted Reserves - Health Education England 1% Restricted Reserves - Critical Care cars <1% Restricted Reserves - Tesco Ventilator 3% Designated Reserves - New Airbase 4% Designated Reserves - Helicopter Maintenance

Total Reserves

£22.633m

16% Designated Reserves - Helicopter Replacement

39

Re Fr % se ee rve s

1%

Oth ts Asse

Ot ets Ass

9%er Net

et 10h% er N

Designated Reserves- Key Manager Cover

2022

% 30ixed

% 34ixed

F sets As

31%

Current Investments

Assets 2018

£22.377m

F sets As

27%

Current Investments

Assets 2019

£22.633m

29%

In

Investmen

nts me 30v% est

ts

daat.org

Annual Report 2019 31

Financial Risk Management Aligning the cash resources held to the requirements of the reserves policy and future designations and investments is the key objective of managing the financial risk. The cash balances, forecast cash flows and their relationship with restricted, designated and free reserves are monitored regularly and reviewed quarterly by the Finance Committee. The most significant exposure is to price risk relating to non current investments, which is why the Trustees have set an investment policy which does not embrace any more risk than a lowest medium risk investor and utilises Francis Clark Financial Planning to oversee the investment manager.

Investment Powers Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees wish.

Investment Policy A strict investment mandate is in place with Kleinwort Hambros and monitored by Francis Clark Financial Planning and is in line with a detailed Investment Policy. This Policy is under constant review, with the objective being to achieve a total return broadly in line with inflation (as measured by CPI) so as to retain the real value of the capital's purchasing power. The Trustees are averse to capital volatility and aim not to embrace any more risk than a low risk investor. Where this approach is not sufficient to meet the objectives, risk may be increased but only up to the level which reflects the lowest medium risk investor. A diversified geographical and asset class mix of assets is permitted, although high risk assets such as derivatives must only make up a small portion of the portfolio and be used for portfolio management rather than speculation.

Investments Investment gains of £594,000 (of which £90,000 related to realised gains and £504,000 to unrealised gains) have contributed to the surplus in the year. The Trustees have no concerns about the performance of the portfolio since investment in 2015 which is expected to fluctuate in the short term. £1,200,000 has been transferred out of investments in the year ahead of the aircraft purchase payment due in May 2020.

The Trustees are mindful of ethical considerations and have carefully considered the costs and benefits of implementing a formal social investment policy

The Trustees are confident that this investment remains aligned to Devon Air Ambulance’s requirements, and that the low risk investment mandate is being implemented.

Francis Clark Financial Planning monitor Kleinwort Hambros and provide independent feedback to the Board who also monitor the performance in line with their expectations and have direct contact and feedback from Kleinwort Hambros.

As the Investment Manager will have been in place for 5 years in 2020, a tender process has been initiated at the end of 2019 to decide if to remain with the current manager or to switch to an alternative.

Investment income has increased slightly on the back of the increase in investment value, from £142,000 to £190,000.

Social Investment Policy The Trustees are mindful of ethical considerations and have carefully considered the costs and benefits of implementing a formal social investment policy. The Trustees have reviewed Kleinwort Hambros's approach and policies relating to social investment and concluded that they are sufficient to meet the expectations of DAA consistent with their primary duty of care to patients.

Other Factors in Achievement of Objectives Devon Air Ambulance works closely with the South Western Ambulance Service NHS Foundation Trust (SWASFT) that up until 31st March 2019 employed the paramedics seconded to our service. In partnership with our neighbouring air ambulance charities, Cornwall, Dorset & Somerset, Wiltshire and Great Western, we commission SWASFT to provide a specialist dispatch team who do a vital job ensuring our services are tasked to the patients who most need the enhanced and critical care we provide.

Membership of the Peninsula Trauma Network provides great benefit through peer support, networking and communication across the region.

The LIBOR grant and also the support of councils and communities across Devon have been and continue to be significant factors in the achievement of our night operations objective.

Related Parties Both helicopters are owned and operated by the Charityâ&#x20AC;&#x2122;s wholly owned subsidiary, Devon Air Ambulance Trading Company Limited

Through the Association of Air Ambulances we connect with our fellow Air Ambulance services around the country. This provides opportunities for learning and sharing of best practice across all our activities. In addition, members of the Senior Leadership Team subscribe to relevant professional bodies.

Devon's two air ambulances attending a major road traffic collision

daat.org

Annual Report 2019 33

Structure, Governance and Management Governance Devon Air Ambulance Trust (DAAT) was formed in 1991 in order to raise and receive funds to provide an emergency response ambulance service primarily in the county of Devon. It became an incorporated company, limited by guarantee, on the 30th September 1999 and is governed by its Memorandum and Articles of Association dated 29th September 1999. In June 2019, the charitable objects were updated to allow for a broadening of our service to include Critical Care Cars.

The Special Resolution passed on the 8th March 2017 resulted in the Trading Company adopting updated Articles of Association to ensure that they remain up-to-date, relevant and complete.

Appointment of Trustees The Board of Trustees is made up of independent members who undertake the role on a voluntary basis and who bring a broad range of professional skills, experience and expertise to Devon Air Ambulance. Historically, nominations for new Trustees have either been received from other Trustees or members of staff, or as a result of a direct approach by the individual concerned.

However, as part of a detailed and externally facilitated Board Review held in September 2018, it was recommended that nominees be sought through external advertising. It is hoped this new approach will encourage nominations from a broader background, enable Devon Air Ambulance to target those individuals with the required skills, experience and expertise the board requires and also result in a more diverse and representative board.

Potential nominees are invited to meet with the Chair of Trustees and Chief Executive and attend a board meeting as an ‘observer’ before being formally appointed at a subsequent board meeting.

Annual Trustee and Trading Company Director ‘Away Day’ In 2019, a decision was taken to encourage greater cooperation and transparency between the Trustees of Devon Air Ambulance Trust and the Directors of Devon Air Ambulance Trading Company Limited. In order to facilitate this, an Away Day was held involving all Trustees/Directors and the senior leadership team. All Trustees and Directors were given access to documentation for every committee meeting, regardless of whether or not they were standing members of that committee, and representation on each committee was enhanced to include members from both the Trust and Trading Company. There was an agreement that the combined Trustee/Director/Senior Leadership Team ‘Away Day’ was extremely useful and will therefore become an annual event from 2020 onwards, focusing on current and future strategic planning.

Trustee Recruitment In 2019, there was some movement in overall Trustee numbers on the board, as four Trustees left due to completing

their allotted term in office, or due to resignation for personal reasons. This was somewhat offset by the appointment of three new Trustees during the year but ensuring adequate committee and board representation is still a challenge, particularly if Trustee numbers remain stable or reduce further.

As mentioned, recruitment to the board of Trustees has historically been done largely through personal contacts and networking. However, to encourage further recruitment and greater diversity of candidates, a comprehensive Trustee Recruitment Pack has been created that can be shared by Trustees, on DAAs website, via social media and on trustee recruitment platforms. This is now an ongoing process, rather than one which is time limited, and each submitted Expression of Interest is considered on receipt by the Chair of Trustees and Chief Executive Officer.

Trustee Training and Induction After being formally appointed, all new Trustees are provided with a Trustees’ Handbook and undertake an induction process. This includes an orientation briefing of their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes of Devon Air Ambulance, the annual budget, the strategic plan and the most current financial information contained within the Annual Report and Accounts.

Forming part of their induction, new Trustees meet with the individual members of the Senior Leadership Team and other key employees within Devon Air Ambulance to learn more about each business area and their roles and responsibilities.

Trustees are also invited to visit the airbases to meet with aircrew and paramedics to see the operational delivery of the service at first hand.

A Trustee training day, delivered by an external governance professional, is held annually, alternating between general guidance on the Trustee role and responsibilities and Finance for non-Financial Trustees. This training is provided for all new Trustees and as a refresher for any existing Trustee who wishes to participate.

Charity Governance Code Good governance in any organisation is fundamental to its effectiveness and success. Devon Air Ambulance promotes the principles of the Charity Governance Code which represents a standard of good governance practice that all charities should aspire to achieve. The Code is a practical tool which helps charities and their Trustees develop high standards, develops an appropriate culture, encourages diversity and ensures Trustees are compliant with relevant legislation and regulations.

Trustees who served during

2019

Margaret Davies

Deborah Fraser

Julie Hawker

Dr Anthony Hudson

Nicholas Johnson

Tony Noon

Richard Plunkett

Rachel Short

Stephen Tyrrell

Mark Williams

Trading Company Directors who served during

Simon Denton

Paddy Dixon

Ed Probert

Structure of the Organisation The Board of Trustees administers the Charity. There are three committees - Finance, PR & Fundraising and People & Culture (formerly HR, now incorporating the Remuneration Committee) that report to the main board plus the Trading Company board.

The committees and both boards Dr Anthony meet four times a year. Additional Hudson meetings can be held as and when required and ad hoc working parties can also be formed to address specific and/or time-critical strategic issues.

Trustees are appointed for an initial term of three years with the option for this to be extended by a further term of three years. The maximum consecutive term a Trustee may serve, therefore, is six years. Trustees may then be reappointed for one further term of one year after a three year break from holding office. Trustee roles and responsibilities and, in

William Matthewman

2019

Dick Richardson

Nic Steevenson

Stephen Tyrrell

particular, the roles of the honorary officers, are clearly defined within the Scheme of Delegation.

The Chief Executive is appointed by the Trustees to manage the day-to-day operations of Devon Air Ambulance. To facilitate efficient management of the organisation, the Chief Executive has delegated authority, with limits set by the Trustees for matters including finance, fundraising, public relations, marketing and employment. The parameters of the Chief Executiveâ&#x20AC;&#x2122;s authority are clearly defined within the Scheme of Delegation.

It is hoped this new approach will encourage nominations from a broader background, enable Devon Air Ambulance to target those individuals with the required skills, experience and expertise the board requires and also result in a more diverse and representative board. daat.org

Annual Report 2019 35

Principal Risks and Uncertainties The Trustees have put in place a formal risk management process to assess any risks to Devon Air Ambulance and implement risk management strategies. This involves identifying the types of risks Devon Air Ambulance faces, prioritising them in terms of potential impact and likelihood of occurrence and identifying means of mitigating risk. This was supplemented in the year by an evaluation of what internal reviews, external reviews and compliance are in place to mitigate these risks, and a gap analysis applied.

The Trustees review the adequacy of Devon Air Ambulance's current financial controls on a regular basis and each of the identified risks through the appropriate committee in place.

The Senior Leadership Team also review individual elements of the risk register as part of their internal weekly briefing.

The Trustees are able to report that, in their opinion, Devon Air Ambulance internal financial controls conform to Charity Commission guidelines.

Currently, the most significant risks defined by the Trustees are: a. Climate change: impact on reputation and support if perceived not to be acting in line with public concerns; b. Adequate level of knowledge and skills at Trustee level: Trustees may lack ability to provide suitable corporate governance. c. Pandemic: The impact of Coronavirus has highlighted the uncertainties and wide ranging impact of a pandemic.

The Trustees and Senior Management continue to monitor and react to this pandemic, with Senior Management meeting regularly, monitoring national and international guidance well as its employees, volunteers and donors. The significant free reserves in place and investments held put the Charity in a strong position in the short and medium term while the impact of the pandemic is assessed and long term plans managed accordingly.

These risks as well as other risks identified by the board continue to be monitored and mitigated against, both in terms of likelihood of these situations occurring and the impact on Devon Air Ambulance if they were to happen.

5

4

3

a.

LIKELIHOOD

To mitigate risks in relation to climate change Communication Strategy is being created to ensure that what is being done is clearly communicated both inside and outside DAA. A Green Working party has also been set-up at the year-end and these issues will form a part of the Strategic Away Day for Trustees and SLT to be held in early March 2020. The Trustee recruitment process has been enhanced and updated to ensure applications are reviewed against required skills, knowledge and experience of corporate governance.

On call on the North Devon coast

c.

b.

2

Welfare will be one of the major topics covered at the staff away day, while the staff survey continues to be a key part of assessing and reacting to staff concerns.

1 IMPACT

1

2

3

4

5

Statement of Trustees Responsibilities The Trustees (who are also directors of Devon Air Ambulance Trust for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these financial statements, the Trustees are required to: • Select suitable accounting policies and then apply them consistently; • Observe the methods and principles in the Charities SORP; • Make judgements and accounting estimates that are reasonable and prudent; • State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statement, and • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the

Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as the Trustees are aware: • There is no relevant audit information of which the charitable company’s auditors are unaware, and • The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Auditors A resolution to appoint PKF Francis Clark as auditors for the ensuing year was proposed at the March 2019 Board Meeting in accordance with section 485 of the Companies Act 2006.

The Trustees’ Report incorporating the Strategic Report was approved by the Board and signed on its behalf by:

Margaret Davies Chair of Trustees 26th March 2020

Placing the order for Devon's new helicopter

daat.org

Annual Report 2019 37

Independent Auditor’s Report to Trustees Opinion We have audited the financial statements of Devon Air Ambulance Trust (the “Charity”) for the year ended 31 December 2019 which comprise the Group Statement of Financial Activities, Group and Parent Company Balance Sheets, Statement of Consolidated Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

In our opinion, the financial statements: • give a true and fair view of the state of the Group’s and Charity’s affairs as at 31 December 2019 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; • have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the Trustees’ Report, (which includes the Strategic Report and Directors’ Report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not obtained all the information and explanations necessary for the purposes of our audit.

Responsibilities of the Trustees As explained more fully in the Statement of Trustees’ Responsibilities set out on page 37, the trustees (who are also the directors of the charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related

to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

STEPHANIE HENSHAW FCA (Senior Statutory Auditor) For and on behalf of PKF FRANCIS CLARK Chartered Accountants & Statutory Auditor Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

Use of our Report This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

Training for DAA's first female pilot at Exeter Airbase

daat.org

Annual Report 2019 39

Consolidated Statement of Financial Activities (including income & expenditure account) for the year ended 31 December 2019

Notes

Unrestricted Restricted Funds Funds £’000 £’000

Total Funds 2019 £’000

Total Funds 2018 £’000

Income Donations and legacies

3

4,343

27

4,370

4,404

Trading activities: Retail operations DAAT Lottery

4 4

2,149 2,032

-

2,149 2,032

1,929 2,002

DAAT Events

4

71

-

71

64

Investment income

5

190

-

190

142

Income from charitable activities

6

18

-

18

1

Other income

6

-

226

226

-

(Losses)/Gains on foreign exchange

(123)

-

(123)

47

Total income

8,680

253

8,933

8,589

714

-

714

670

Expenditure Donations and legacies Trading activities: Retail operations DAAT Lottery

4 4

2,024 496

2 -

2,026 496

1,928 432

DAAT Events

4

63

-

63

78

77

-

77

82

5,677

219

5,896

4,616

9,051

221

9,272

7,806

594

-

594

(306)

223

32

255

477

Transfers between funds

(6)

6

-

-

Net movement in funds

217

38

255

477

Total funds brought forward

21,697

681

22,378

21,901

Total funds carried forward

21,914

719

22,633

22,378

Investment management costs Expenditure on charitable activities

7

Total expenditure Net gain/(loss) on investments Net income for the year

8

Reconciliation of funds

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 43 to 57 form part of these accounts.

Consolidated Balance Sheet 31 December 2019

Notes

Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

Tangible assets

13

7,717

6,667

820

689

Investments

14

6,652

6,609

6,652

6,609

14,369

13,276

7,472

7,298

Fixed Assets

Total Fixed Assets Current Assets Stocks

15

48

43

34

36

Debtors

16

2,557

2,104

9,549

8,207

Investments

14

6,023

7,026

6,023

7,026

Cash at bank and in hand

17

287

1,413

77

690

8,915

10,586

15,683

15,959

(651)

(1,484)

(528)

(915)

8,264

9,102

15,155

15,044

22,633

22,378

22,627

22,342

19

719

681

719

681

19 19

16,444 5,470

15,254 6,443

16,438 5,470

15,223 6,438

Total unrestricted income funds

21,914

21,697

21,908

21,661

Total Charity funds

22,633

22,378

22,627

22,342

Total Current Assets Liabilities Creditors falling due within one year

18

Current assets less current liabilities Net assets THE FUNDS OF THE CHARITY Restricted income funds Unrestricted income funds General Designated

Approved by the Trustees of Devon Air Ambulance Trust on the 26th March 2020 and signed on its behalf

Margaret Davies Chair of Trustees Company registered number 3855746 The notes on pages 43 to 57 form part of these accounts.

daat.org

Annual Report 2019 41

Consolidated Statement of Cash Flows 31 December 2019 2019 £’000 Net cash inflow from operating activities (note below)

2018 £’000

£’000

(2,266)

£’000 2,500

Cash flows from investing activities: Income from current investments Dividends & interest from non-current investments Transfers From non-current investments Proceeds from sales of investments Purchase of investments Purchase of property, plant & equipment

25 165 1,200 2,944 (2,393) (1,804)

Net cash generated/(used) in investing activities

124 18 8,019 (7,663) (2,473) 165

(1,974)

(2,129)

526

Cash and cash equivalents 1/1/19

8,439

7,913

Cash and cash equivalents 31/12/19

6,310

8,439

(Decrease)/Increase in cash and cash equivalents in the year

Note Reconciliation of net cash inflow from operating activities Net income for the year

255

477

Depreciation charges

754

784

(Gains)/Loss on investments

(594)

306

Income from investments

(190)

(142)

(1,200)

-

(5)

(22)

(Increase)/Decrease in creditors

(833)

261

(Decrease)/Increase in debtors

(453)

838

Transfer from non-current investments Increase in stocks

Net cash (outflow)/inflow from operating activities

Analysis of cash and cash equivalents

(2,266)

2,500

1 Jan 2019

Cash Flows

31 Dec 2019

£’000

£’000

£’000

Cash in hand and at bank

1,413

(1,126)

287

Current investments

7,026

(1,003)

6,023

8,439

(2,129)

6,310

Total cash and43 cash The notes on pages to 55equivalents form part of these accounts.

Notes To The Accounts 1. Accounting Policies Basis of Preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements have been prepared under the historic cost convention as modified by fair value where appropriate. The Trustees have considered and concluded that it is appropriate to complete the accounts on a going concern basis. The Charity is a public benefit entity and is registered in the United Kingdom. The registered address is included on page 59. The functional currency used in these accounts is Sterling, which is also the transactional currency.

The Group financial statements consolidate the results of the Charity and its wholly owned trading subsidiary. A separate Statement of Financial Activities and income and expenditure accounts for the Charity has not been presented as the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The Trustees have concluded that the only significant management judgement and key area of estimate or uncertainty is the recognition of legacy income as detailed below.

Income Recognition Policies Voluntary income including donations, legacies, and lottery sales that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

For legacy income, entitlement is taken as the earlier of the date: when the Charity becomes aware that probate has been granted; when the estate has been finalised and notification made by the executors that a distribution will be made; or when the distribution is received.

Income from commercial trading activities is recognised as earned as the related goods and services are provided.

Investment income interest is recognised on a receivable basis.

Volunteers and Donated Services The value of services provided by volunteers is not incorporated into these financial statements. Further details can be found in the Trusteesâ&#x20AC;&#x2122; Annual Report on page 24.

Donated services are recognised as income when control is obtained over the item, the receipt of economic benefit is probable and it can be measured reliably.

Expenditure Expenditure is recognised when there is legal or constructive obligation to make a payment, settlement to a third party is probable and the amount can be measured reliably. Contractual arrangements are recognised as goods or services are supplied.

Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Charitable activities include expenditure associated with the operation of the two helicopters, airbase facilities and medical equipment.

SWASFT have historically paid 1/3rd of the staffing costs of ambulance staff aircrew and half of the medical consumables and drugs with all other costs are met by the Charity. This changed from 1st April 2019 when all the clinical staff transferred to the Trading Company and all costs are now paid for by the Charity.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources e.g. staff costs by time spent and other costs by their usage.

Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended on the basis of overall inputs applicable to that category.

Operating Leases The Charity classifies the lease of vehicles and office equipment as operating leases; the title to these items remains with the lessor.

Rental charges are charged on a straight line basis over the term of the lease.

Tangible Fixed Assets Individual fixed assets costing ÂŁ1,000 or more are capitalised at cost.

daat.org

Annual Report 2019 43

Tangible fixed assets are depreciated on a straight line basis over their estimated useful lives as follows: Asset Category Annual rate EC135 Helicopters 7.00 -7.25% Helicopter factory fitted role equipment 10% Helicopter medical equipment 33% Long leasehold buildings 2% - 6.67% Short leasehold improvements 20% Office equipment & furniture 25% IT equipment 33% Assets in course of construction 0%

Investments Investments are carried at fair value. Where there is a quoted market value they are valued at the bid price ruling at the Balance Sheet date. Other investments are valued at their realisable market value.

Short Term Investments Short term investments are included within Current Assets and relate to deposit and notice accounts which can mature or be called on within twelve months.

Stock Stock of new merchandise is included at the lower of cost or net realisable value.

Stocks of second hand donated goods for resale are not valued in these financial statements as the Trustees believe that the cost of valuing second hand goods exceeds the benefits.

Funds Structure The Trust has five restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose.

All other funds are unrestricted income funds.

Pensions The Charity makes a contribution of 6% of salary for each employee to a personal pension scheme which is compliant with the auto enrolment regulations which became applicable to the Charity from October 2015. Employees pay a minimum of 2% of salary into this scheme unless they have opted out of the scheme.

Clinical staff employed by the Trading Company are part of the NHS pension scheme, into which employer and employee contributions are made as required by the scheme and in compliance with auto enrolment requirements.

Financial Instruments Classification The company holds the following financial instruments: • Short term other debtors, legacies receivable and amounts due from subsidiary undertakings; • Cash and bank balances; and • Short term trade creditors and other creditors; All financial instruments are classified as basic.

Recognition and Measurement: The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the asset expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of the liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

2. Legal status of the Trust The Trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

3. Donations & Legacies Unrestricted Funds £’000

Restricted Funds £’000

Total Funds 2019 £’000

Total Funds 2018 £’000

2,872

-

2,872

2,817

475

-

475

589

Regular giving schemes

62

-

62

59

Charitable Trust donations

83

-

83

75

654

27

681

671

7

-

7

9

190

-

190

184

4,343

27

4,370

4,404

Donations including legacies Legacies Donations incl. ‘in memory’ and anniversaries

Funds raised by community groups Schools and youth organisations Box and street collections Total donations and legacies In 2018, £36,000 of Charitable Trust donations were restricted.

Isabella and Bowen made and sold cakes outside our Sidmouth shop during Folk Week and raised £48.00!

daat.org

Annual Report 2019 45

4. Trading Activities Unrestricted Funds £’000

Restricted Funds £’000

Total Funds 2019 £’000

Total Funds 2018 £’000

2,149

-

2,149

1,929

12

-

12

12

1,831

2

1,833

1,750

181

-

181

166

2,024

2

2,026

1,928

125

(2)

123

(1)

Sales

2,032

-

2,032

2,002

Prizes

111

-

111

111

Overheads and expenses

300

-

300

264

85

-

85

57

496

-

496

432

Contribution to the Charity’s funds

1,536

-

1,536

1,571

Total trading income

4,181

-

4,181

3,931

Total trading expenditure

2,520

2

2,522

2,360

Total trading contribution

1,661

(2)

1,659

1,571

Shops & Merchandise Trading Sales Cost of goods sold Overheads and expenses Support costs

Contribution to the Charity’s funds Lottery

Support costs

DAAT events are not included within trading activities as the primary purpose of some events is to promote the Charity and its activities rather than to generate income. DAAT events contributed £8,000.

5. Investment Income

Bank deposit accounts Income from investments

Unrestricted Funds £’000

Restricted Funds £’000

Total Funds 2019 £’000

Total Funds 2018 £’000

25

-

25

18

165

-

165

124

190

-

190

142

6. Income from Charitable Activities In 2019 income from charitable activities related to £2,000 (2018 - £1,000) received for carrying out Crew Resource Management training and £16,000 in relation to the provision of simulation training.

Other income in 2019 related to a £226,000 commitment by the Department of Health & Social Care towards the two clinical care cars and defibrillators for all DAA premises and pool cars.

Donations

Community Fundraising

DAAT Events

Shops

Lottery

Heli Costs

Invest Costs

2019

2018

7. Total Resources Expended

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

-

-

-

-

-

5,782

-

5,782

4,462

1

3

-

-

-

-

-

4

9

Events

-

8

10

-

-

-

-

18

40

Retail dept selling & premises

-

-

-

829

-

-

-

829

807

Retail dept staff related

-

-

-

1,017

-

-

-

1,107

955

DAAT lottery prizes

-

-

-

-

111

-

-

111

111

DAAT lottery selling & admin

-

-

-

-

299

299

238

Volunteer support and expenses

2

21

2

14

-

-

-

39

38

Fundraising deptartment

9

34

1

1

1

1

-

47

36

Fundraising dept staff related

73

134

17

3

11

15

-

253

217

Legacy costs

17

-

-

-

-

-

-

17

16

PR & marketing dept

39

28

6

13

11

8

-

105

108

PR & marketing dept staff related

31

17

10

10

2

14

-

84

79

-

-

-

-

-

-

56

56

70

Staff related

102

93

11

101

17

41

18

383

413

HQ premises

11

11

1

10

2

23

1

59

58

4

5

1

1

-

1

-

12

13

16

17

2

15

3

-

1

54

45

Insurances

4

3

-

-

5

-

-

12

9

Finance

2

10

1

7

-

-

-

20

17

Non-recoverable VAT

1

7

-

-

33

-

-

41

26

Legal & professional fees

5

6

1

5

1

11

1

30

39

317

397

63

2,026

496

5,896

77

9,272

7,806

Costs directly allocated to activities Charitable activities Direct fundraising

Investment management costs Support costs allocated to activities

Stationery & mailing IT, communications & equipment

Total expenditure

A fixed asset write-off took place in 2015 of the remaining £142,000 book value of expenditure relating to the Exeter Airport lease agreement. This initial expenditure was made in return for a rent free period up to June 2023 which remains in place. £22,000 of the expenditure on Donations and Legacies and £333,000 of the expenditure on charitable activities in 2018 related to restricted expenditure. daat.org

Annual Report 2019 47

4. Net 8.

Trading Income Activities for the Year 2019 £’000

2018 £’000

Operating leases – vehicles

51

30

Operating Leases - property

364

365

Depreciation

754

784

7 5

7 5

a) Net income for the year is stated after charging:

Auditor’s remuneration – audit services Auditor’s remuneration – Non-audit services

4. Analysis TradingofActivities 9. staff costs, trustee remuneration and expenses, and the Cost of Key Management Personnel a) Staff Costs 2019 £’000

2018 £’000

3,521

2,172

Social security costs

342

200

Pension costs

298

136

4,161

2,508

Wages and salaries

Total staff costs

During the year 16 employees were paid £60,000 or more (2018: 10, three in the Trust and seven in the Trading Company), four in the Trust and 12 in the Trading Company.

The numbers of staff receiving emoluments, which include pension contributions, in the following bands are as follows: 2019

2018

£60,001 - £70,000

9

9

£70,001 - £80,000

2

2

£80,001 - £90,000

2

1

£90,001 - £100,000

-

-

A pension scheme compliant with the auto-enrolment legislation was set up when it became applicable to the Trust in October 2015. The Trust pays a 6% contribution and the employee a minimum 1% contribution which increased to 2% in October 2016, unless the individual has opted out of the scheme. During the year a total of £138,070 (2018: £120,000) was paid into the Scheme by the Trust and £61,010 (2018: £35,000) by the employees. A balance of £0 (zero) (2018: £14,000) was due to the Scheme at the end of the year.

Clinical staff employed by the Trading Company are part of the NHS scheme, and since they were employed by the Trading Company from 1st April 2019 to the end of the year a total of £159,954 was paid into the Scheme by the Trust and £99,537 by the employees. A balance of £0 (zero) was due to the Scheme at the end of the year.

b) Trustee Remuneration and Expenses During the year the Charity Trustees received £522 (2018: £nil) remuneration or expenses from the Trust or its subsidiary.

During the year the Charity paid indemnity insurance totalling £888 (2018: £888).

c) Cost of Key Management Personnel The key management personnel of the parent Trust comprise the trustees and the Senior Leadership Team. The total employee benefits of the key management personnel of the Trust were £415,576 (2018: £342,803).

The key management personnel of the Group comprise the key management personnel of the Trust, the Safety Manager and the Licensed Engineer. The total employee benefits of the key management personnel of the Group were £520,081 (2018: £444,457).

Nigel Hare, the Operations Director, was employed by SWASFT with the cost recharged to the Trust for the first three months of the year, the figures for which are not included in the above analysis.

10. Staff Numbers The average monthly head count was 125 staff (2018: 89 staff) and the average monthly number of full-time equivalent employees during the year were as follows: 2019 Number FTE

2018 Number FTE

Administration

17

13

Charity shops

40

40

Fundraising and other charitable work

12

11

Operational staff employed in Trading Company

39

10

108

74

By the end of 2019 we had 655 (2018:620) registered volunteers.

11. Related Party Transactions There were no related party transactions in the year.

12. Taxation The company is a registered Charity and is not subject to corporation tax.

Teignmouth shanty singers Back Beach Boyz raised £150 at a Christmas gig and supported DAA throughout 2019

daat.org

Annual Report 2019 49

4. Trading 13. a) Tangible Activities Fixed Assets - Group Total

£’000

Fictures & Fittings £’000

Leasehold Property £’000

£’000

10,693

110

318

1,076

12,197

Additions

1,585

191

28

-

1,804

Disposals

-

(54)

(121)

-

(175)

12,278

247

225

1,076

13,826

At 1 January 2019

4,713

80

314

423

5,530

Charge for the year

666

33

10

45

754

-

(54)

(121)

-

(175)

5,379

59

203

468

6,109

At 31 December 2019

6,899

188

22

608

7,717

At 31 December 2018

5,980

30

4

653

6,667

Helicopter

Equipment

£’000 COST At 1 January 2019

At 31 December 2019 DEPRECIATION

On disposals At 31 December 2019 NET BOOK VALUE

The Helicopter balance above includes £3,775,716 (2018 - £2,431,000) relating to the deposit payments for the new Aircraft which is due to be delivered in May 2020. No depreciation has been charged on this up to the end of the year.

Corporate supporters giving it their all at our Dragonboat Festival

4. Trading 13. b) Tangible Activities Fixed Assets - Company Total

£’000

Fictures & Fittings £’000

Leasehold Property £’000

£’000

At 1 January 2019

110

318

1,071

1,499

Additions

191

28

-

219

Disposals

(54)

(121)

-

(175)

At 31 December 2019

247

225

1,071

1,543

At 1 January 2019

80

312

418

810

Charge for the year

33

10

45

88

(54)

(121)

-

(175)

59

201

463

723

At 31 December 2019

188

24

608

820

At 31 December 2018

30

6

653

689

Equipment

COST

DEPRECIATION

On disposals At 31 December 2019 NET BOOK VALUE

daat.org

Annual Report 2019 51

4. Trading 14.

Investments Activities - Group & Company 2019 £’000

2018 £’000

At 1 January

6,609

7,271

Additions

2,393

7,663

Disposals

(2,944)

(8,019)

504

(151)

90

(155)

6,652

6,609

HSBC Deposit Account

1,972

1,948

Kleinwort Hambros 92 day notice account

3,021

4,056

Santander 95 day notice account

1,030

1,022

6,023

7,026

Fixed asset investments Investments at market value

Unrealised gain/(loss) Realised gain/(loss) At 31 December Current asset investments

The Charity owns the entire issued share capital of 2 ordinary shares of £1 each of Devon Air Ambulance Trading Company Limited, incorporated in England & Wales (Company number 3876276). Devon Air Ambulance Trading Company Limited provides helicopter services to the charity. The assets and liabilities of the subsidiary were: 2019 £’000

2018 £’000

6,897

5,979

485

1,324

Current liabilities

(1,440)

(2,009)

Long term loan

(5,935)

(5,259)

7

35

6,288

4,706

(5,701)

(4,276)

(616)

(583)

(29)

(153)

Fixed assets Current assets

Aggregate share capital and reserves A summary of its results is as follows: Turnover Expenditure Amount gift aided to the Charity Loss for the year

15. Stock Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

48

43

34

36

Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

1,257

871

1,257

871

Other debtors

73

38

57

27

Prepayments

603

552

389

354

LIBOR income

398

643

398

643

Critical Care Car Grant

226

-

226

-

DAA Trading Co Ltd (due within one year)

-

-

1,286

1,053

DAA Trading Co Ltd (due after more than one year)

-

-

5,936

5,259

2,557

2,104

9,549

8,207

Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

HSBC bank accounts

246

775

36

52

National Westminster

11

70

11

70

Investment Manager account

30

568

30

568

287

1,413

77

690

Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

Trade creditors

260

953

138

428

Lottery entry monies received in advance

219

214

219

214

-

52

-

34

133

215

137

212

39

50

34

27

651

1,484

528

915

Stock

16. Debtors - Current

Legacies receivable

17. Cash at Bank & In Hand

18. Creditors: Amounts Falling Due Within 1 Year

Taxation and Social Security Other creditors Accruals

daat.org

Annual Report 2019 53

4. Trading 19.

Analysis Activities of Funds - Group Balance at 1 January 2019

Incoming Resources

Resources Expended & Lossess

Transferss

Balance at 31 December 2019

£’000

£’000

£’000

£’000

£’000

Helicopter Replacement

5,313

-

-

(1,690)

3,623

Helicopter Maintenance

886

-

-

(50)

836

-

-

-

750

750

244

-

-

17

261

6,443

-

-

(973)

5,470

General funds

15,254

8,680

(8,457)

967

16,444

Total unrestricted funds

21,697

8,680

(8,457)

6

21,914

42

-

(42)

-

-

556

-

(158)

-

398

6

-

(6)

-

-

35

-

(7)

-

28

6

-

(6)

-

-

Health Education England

-

-

-

6

6

Tesco - Intelligent Ventilation System

-

25

-

-

25

DHSC – Clinical Cars

-

226

-

-

226

Tesco – Smart Screen

-

2

(2)

-

-

36

-

-

-

36

681

253

(221)

6

719

22,378

8,933

(8,678)

-

22,633

Unrestricted income funds Designated funds † :

New Airbase Key Manager Cover

Restricted income funds ‡ : Night Flying Community Landing Sites Grace Trust Moretonhampstead Eaton Corporation

Essex Trust

†Description, nature and purpose of designated funds Helicopter Replacement Estimated cost of replacing the Exeter based EC135 Helicopter, G-DVAA, in 2020 when it will have been in service for 12 years. This designation is being increased as we move towards the delivery date of May 2020 while being decreased when instalment payments are made.

Helicopter Maintenance The 2018 balance was calculated as the estimated costs of a severe but realistic repair scenario, and up to date figures have been obtained for the 2019 calculation.

New Airbase The lease agreement for the Exeter Airbase expires in June 2023. The most likely replacement is a new custom-built facility to house both those currently based at the Exeter airbase and in the office based at Pinhoe. This designation is increasing so that it grows to the expected funding requirement by June 2023.

Key Manager Cover As no key person insurance is in place, this Fund provides for potential additional costs that could be incurred should a key manager be absent from work long term due to illness or accident. As in 2018 this has been based on 35% of the annual salaries of staff identified as key management.

General The available reserves after allowing for all designations. ‡Description, nature and purpose of restricted funds Night Flying The LIBOR funds provided in 2015 to set up the night flying operations. This money has been used in the Trading Company and the restricted funds are reduced by the monthly depreciation charge relating to the assets as it is charged back to the Trust.

Community Landing Sites A further £1m in LIBOR funds was confirmed in 2016. Community organisations have applied for funds to assist them in setting up a community landing site for use at night, and as grants to these organisations are approved by the Charity these amounts are drawn from the £1m fund and paid on through DAA. The Grace Trust This balance was one of two grants provided to fund part of three defibrillators and a Lucas 3 Chest Compression System.

The Gawthorn Cardiac Trust This was the second grant provided to fund part of three defibrillators and a Lucas 3 Chest Compression System.

Moretonhampstead The Moretonhampstead and District League of Friends donated £35,000 to enable the purchase of three ventilators. These have now been purchased and the reserve is being decreased as the assets are depreciated.

Eaton Corporation A successful grant application was made by the Eaton Corporation to fund the upgrading of the lighting at the Eaglescott Airbase and four new aircrew helmets to increase staffing in support of extending operating hours.

Health Education England Health Education England have provided a grant to participate in simulation training with hospital staff.

Tesco – Intelligent Ventilation System Tesco have committed £25,000 towards an Intelligent Ventilation System.

DHSC – Clinical Cars The Department of Health and Social Care have provided a grant of £226,000 towards the purchase and fitout of two clinical cars due to be delivered in early 2020. £88,000 of this has been spent in the year and the reserve will be reduced as these vehicles are depreciated.

Tesco – Smart Screen Tesco have funded the purchase and installation of smart screens for use in some of our retail stores.

The Essex Trust The Essex Trust donated £36,000 in 2018 to purchase two stretchers.

4. TradingofActivities Analysis Funds - Group 2018 Balance at 1 January 2018

Incoming Resources

Resources Expended & Losses

Transfers

Balance at 31 December 2018

£’000

£’000

£’000

£’000

£’000

Helicopter Replacement

5,607

-

-

(294)

5,313

Helicopter Maintenance

873

-

-

13

886

Key Manager Cover

235

-

-

9

244

6,715

-

-

(272)

6,443

General funds

14,186

8,553

(7,757)

272

15,254

Total unrestricted funds

20,901

8,553

(7,757)

-

21,697

Night Flying

122

-

(80)

-

42

Community Landing Sites

809

-

(253)

-

556

6

-

-

-

6

Gawthorn Cardiac Trust

17

-

(17)

-

-

Moretonhampstead

35

-

-

-

35

Eaton Corporation

11

-

(5)

-

6

-

36

-

1,000

36

(355)

-

681

21,901

8,589

(8,112)

-

22,378

Unrestricted income funds Designated funds † :

Restricted income funds ‡ :

Grace Trust

Essex Trust

daat.org

36

Annual Report 2019 55

4. Trading 20.

Analysis Activities of Net Assets Between Funds – Group 2019 General Reserves

Designated Funds

£’000

£’000

£’000

£’000

Fixed Assets

7,717

-

-

7,717

Investments

1,182

5,470

-

6,652

Bank Fixed Term Deposit Accounts

5,304

-

719

6,023

Current Assets

2,892

-

-

2,892

Current Liabilities

(651)

-

-

(651)

-

-

-

-

16,444

5,470

719

22,633

Liabilities due after more than 1 year

Restricted Total at 31 Funds December 2019

4. TradingofActivities Analysis Net Assets Between Funds – Group 2018 General Reserves

Designated Funds

£’000

£’000

£’000

£’000

Fixed Assets

6,667

-

-

6,667

Investments

-

6,443

166

6,609

Bank Fixed Term Deposit Accounts

6,511

-

515

7,026

Current Assets

3,559

-

-

3,559

(1,484)

-

-

(1,484)

-

-

-

-

15,253

6,443

681

22,377

Land & Buildings 2019

Other Items 2019

Land & Buildings 2018

Other Items 2018

£’000

£’000

£’000

£’000

within one year

347

42

320

22

within two to five years

560

30

313

16

75

-

-

-

982

72

633

38

Current Liabilities Liabilities due after more than 1 year

Restricted Total at 31 Funds December 2018

4. Trading 21.

Operating Activities Lease Commitments

Operating leases which expire:

after more than five years

22. Financial Instruments

Financial assets measured at fair values through profit and loss Financial liabilities measured at amortised cost

Group 2019 £’000

Group 2018 £’000

Company 2019 £’000

Company 2018 £’000

8,380

8,161

15,586

14,462

612

1,382

357

854

23. Financial Commitments At the year end the Charity has committed to purchase an Airbus model H145 Aircraft for delivery by the end of May 2020. Initial payments were made 2018 and 2019 which are included within tangible fixed assets (see Note 13). One further payment of EUR 4,280,950 is due on or before the end of May 2020.

daat.org

Annual Report 2019 57

Legal and Administrative Information for the year ended 31 December 2019 Patrons Mary King MBE Lady Penny Mountbatten Jennie Bond David Fitzgerald Adam Isaac Sam Hill

Trustees who served during the year

•

Margaret Davies (Chair from 27 June 2019) Julie Hawker (appointed 28 March 2019, Deputy Chair) Stephen Tyrrell (Resigned 8 November 2019) Richard Plunkett (Treasurer) Rachel Short (term expired 24 March 2019) Tony Noon (term expired 24 March 2019) Dr Anthony Hudson Mark Williams Deborah Fraser (resigned 23 April 2019) Nicholas Johnson (appointed 26 September 2019) William Matthewman (appointed 26 September 2019

•

•

•

•

•

•

•

•

•

• member of the PR & Fundraising Committee • member of Finance Committee • member of the People & Culture Committee (formerly HR Committee) • member of the Trading Company & Operations Committee

•

Senior Leadership Team Heléna Holt Caroline Creer Martin Bell Nigel Hare David Hawes Ian Payne

Chief Executive Deputy CEO /Fundraising & Communications Director Retail & People Development Director Operations Director Finance & Infrastructure Director Flight Operations Director

Principal Address & Registered Office Devon Air Ambulance Trust Unit 5 Sandpiper Court Harrington Lane Exeter EX4 8NS

Bankers

Chartered Accountants & Statutory Auditor

HSBC Bank plc 250 High Street Exeter EX4 3PZ

PKF Francis Clark Centenary House, Peninsula Park Rydon Lane Exeter EX2 7XE

Solicitors

Investment Manager

Foot Anstey LLP Senate Court Southernhay Gardens Exeter EX1 1NT

SG Kleinwort Hambros Bank Limited 8 St James’s Square London SW1Y 4JU

Getting In Touch Devon Air Ambulance Trust Registered office address: Unit 5 Sandpiper Court Harrington Lane Exeter EX4 8NS 01392 466666 info@daat.org DAAT.org

cdf Devon Air Ambulance Trust is the charity that funds and operates Devonâ&#x20AC;&#x2122;s air ambulance service Devon Air Ambulance Trust is a company limited by guarantee no. 03855746 and a registered charity no. 1077998.

Glossary of Terms AED Semi-Automated External Defibrillator DAA Devon Air Ambulance DAAT Devon Air Ambulance Trust DAATCL Devon Air Ambulance Trading Company Limited CAA Civil Aviation Authority CLS Community Landing Sites CQC Care Quality Commission EPOS Electronic Point of Sale ERP Emergency Response Plan LIBOR London Interbank Offered Rate PAD Public Access Defibrillator SORP Statement of Recommended Practice SWASFT South Western Ambulance Service NHS Foundation Trust SLT Senior Leadership Team

Statutory Notice The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Accreditations Design Silver Foxes Publishing 07455 206470 Images DAAT expresses its gratitude to all supporters and photographers that have supplied free to use

images to the charity and acknowledges copyright in their use. Š All rights reserved. No part of this report may be reproduced or used in any form without

prior permission of the publishers

daat.org

Annual Report 2019 59

# It takes a community

Devon Air Ambulance Trust

A company limited by guarantee no. 03855746 â&#x20AC;˘ A registered charity no. 1077998