Devon air Ambulance Trust Annual Report & Accounts 2016

Devon Air Ambulance Trust

REAL PEOPLE SAVING REAL LIVES ANNUAL REPORT AND ACCOUNTS Year ended 31 December 2016

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Devon Air Ambulance Trust is the charity that funds and operates 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; based on clinical need, urgency, accessibility and distance to the most appropriate hospital for the clinical needs of the patient.

Devon Air Ambulance operates two helicopters all year round and, from November 2016, our hours of operation were extended to 17 hours a day, which includes flying in to the hours of darkness up until midnight with our Exeter based helicopter.

We are proud of our independence from government funding. The operating costs of the service are solely met by public fundraising and donations. The paramedics are provided by South Western Ambulance Service NHS Foundation Trust, supported in part by the charity.

It currently costs in the region of £5.5 million per annum to keep both of the charity’s air ambulances flying up to 17 hours a day.

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Charities are required to demonstrate how they provide a benefit to the public. In the case of Devon Air Ambulance, the benefit is the relief of injury or illness through rapid treatment and/or transport to the best treatment centre based on the clinical need of each individual patient. This benefit is available to any member of the public and access to the service is based solely on patient need, as determined by our team of specialist despatchers working within the ambulance control centre.

This benefit is available to anyone and everyone in Devon (and, as required, neighbouring counties) whether they are residents or visitors, and is based on a fixed set of criteria which take account of a number of factors including clinical need, urgency, accessibility and distance to the most appropriate hospital or treatment centre. The use of these criteria in deploying the helicopters is regularly monitored and reviewed to ensure they are rigorously adhered to.

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.

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Contents Trustees’ Report (incorporating the Strategic Report) 5 6 7 8 9 10 12 13 14 16 18 20 22 23 24 26 28 29 30 32 33

Our Vision, Mission and Values Strategic Overview e e e er o l r e l l er o Future Plans r e e o ey Look er rke o o Retail or r eo le Planning To Succeed e e o l er or e o e e re Reserves l k e e er or e e e o e r re o er e e e r l k er e e e o r ee e o l e

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Auditor’s Report 34 35 36 37 38 49 50

e e e or e or o r ee o ol e e e o l Consolidated Balance Sheet o ol e e e o lo oe o e o Le l r e e o

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Contact us 01392 466666 info@daat.org DAAT.org

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Our Vision, Mission and Values Our Vision An outstanding Helicopter Emergency Medical Service, available to all, 24 hours a day

Our Mission Relief of sickness and injury in the county of Devon and surrounding areas

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

Exemplary Patient Care • Patient led • Evidence based • Developed through experience

A Safe and Just Culture • • • •

Transparent Fair Inclusive Ethically aware

Excellence • • • • •

Professional Volunteer support Innovative Investment in people Robust governance

Community • • • •

Local engagement Listening Accountable Owned by and for the people of Devon • Regional partnerships • National collaboration

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Strategic Overview Our 5 year strategic plan (2013-2017) set out the charitable objectives we intended to deliver during that period. It detailed the strategies we would employ in order to achieve these objectives within a set of plans, each designed to support delivery of our primary service to patients.

The strategy set out our charitable objectives in more detail and the finance plan gave an overview of the targets we needed to meet in order to fund those objectives.

The fundraising and retail plans covered all aspects of income generation, other than investments, needed to fund the service plan.

The marketing plan provided an overview of how we aimed to maintain our high standard of brand awareness within the county.

The people plan outlined how we intended to support and develop our staff and volunteers in order to be able to achieve the increased income generation targets set without increasing core staffing.

The organisational development plan considered how we would continue to ensure we had the right infrastructure to enable our staff to work effectively.

This is illustrated in the diagram below.

CREATE THE RIGHT ENVIRONMENT TO INCREASE FUNDS High public awareness; organisational culture; resources and facilities; investment in people

INCREASE FUNDS AVAILABLE FOR CHARITABLE EXPENDITURE Excellent financial management; increased net income

SERVICES Increased hours and extended skills

FUTURE STRATEGY Through hard work, determination, commitment and focus on what we were seeking to achieve, the charity was able to complete all its objectives by the end of 2016. We will therefore be seeking to implement a new strategic plan (2017-2022) and our draft objectives for this 5 year period can be found on page 12

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2022

e Services As we near the end of our existing 5-year strategic plan (2013-2017), we are able to reflect on the success of achieving our key objectives. We have successfully designed and delivered the first year of our enhanced skills programme for paramedics, and have commenced our night flying operations (See page 11).

Safety Management The ultimate safety objective of any organisation is ‘Zero Accidents’.

However, when you put that in the context of an aviation operation it takes on a slightly different emphasis. The past year has seen a period of growth in our operations with the enhanced care delivered by our HEMS Technical crew, running two full shifts from our Exeter base and, of course, night flying operations. On the face of it these changes might seem fairly small but, they have given us many challenges to face and problems to be overcome.

Not only have we conquered these challenges, we have done so safely.

By recognising the risks and threats, mitigating these issues where we can and by informing, training and educating everyone in the organisation, we achieved ‘Zero Accidents’ this year but it remains our ultimate safety objective next year and for many years to come.

Finance Income was required to increase steadily to just under £6.5m by the end of 2017 to generate the sustainable income required for the increased cost of patient services and clinical development, while maintaining a surplus to cover aircraft maintenance, repairs and replacement. The accounts are presented in full from page 35, with the Trustees’ report on the charity’s financial performance and polices included from page 23.

Income Generation In order to meet the increasing costs of improving and extending the services we are able to provide to patients, the fundraising, retail and marketing teams

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were tasked with achieving a number of objectives; these included increasing membership of the lottery, expanding and diversifying our retail operations and increasing the money raised from our individual, and business, supporters. Their achievements can be found on pages 14 - 19.

Our People It would not be possible to deliver on any of our key objectives without the support and commitment of all the people who work for the charity. Investing in our people - staff, aircrews, trustees or volunteers - through investing in training and development is at the heart of our strategic plan. 2016 was no exception as we report on pages 20 - 21.

Organisation As a charity, we continue to be committed to being as efficient and effective as we possibly can; this means that we are constantly identifying ways to professionalise our service, increase our knowledge, streamline administrative processes, take advantage of new technology and invest in best practices and people. We continue to learn from our experiences in order to shape our future plans and how we make decisions the most appropriate way to allocate our resources.

Governance and Leadership Ensuring good governance is of paramount importance to Devon Air Ambulance. We could not operate without the generous donations of the people and businesses of Devon, and it is therefore incumbent upon us as a charity to ensure that we have a robust framework of governance and leadership to safeguard our integrity and ensure the public have absolute trust and confidence in us as an organisation.

On pages 30 and 31 , we explain how the charity is structured and governed to ensure our communities have absolute confidence in the way the charity is run and delivered. An air ambulance service which is accountable and transparent would not be possible without professional leadership and robust governance, and the Statement of Trustees’ Responsibilities is set out on page 33.

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Trauma Cases

348our In 2016

Medical Cases

detsissA stne aP 6102 ni helicopters

assisted

Inter-hospital Transfers

843

patients

Locations

Trauma Incidents 50%

47%

3% Medical Incidents

615

217

455

101

195

51

Town & Village

Rural

Residential

Farm

Highway

Coastal

Hospital

DERRIFORD

RD&E EXETER

NORTH DEVON

TORBAY

OUTSIDE DEVON

218

154

32

9

89

186

68

Collisions

Drivers

133

11

Falls

Cyclists

40

29

Bikers

Pedestrians

25

16

Burns

Industrial

349

34

Cardiac including 267 Cardiac Arrest

Agriculture

County

Injuries 58

59

70

96

100

133

46

Sporting Injuries

77% 850

9% 95

51

91

First On Scene

17% 186 Sole Response

4% 7

12% 129

5

Equestrian Motocross

2% 22

7

Medical Collapse

60

6

Neurological

Water Sport Rugby

157 Busiest Area East Devon 118 Darmoor 68 Exmoor 38 Out Of Area 221

29% 233

Bypass Closest Hospital

179

Busiest Day Sunday

Ages 12% <18 years

8%

No Road Access

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Busiest 1-2pm Time

25% >70 years

37% 63% 295 511

Male/Female

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Family barbecue ends in disaster The summer of 2016 was great for hot days and balmy evenings – just right for barbecues.

Such was the occasion for Simon Griffin and his family when they were planning an afternoon get together at his mum’s house in Paignton on August Bank Holiday weekend.

Simon and his brother had gone on ahead of their families to ‘get the barbecue going’. Struggling to get a good flame and in order to speed things up, Simon added methylated spirits. Not realising this, however, his brother then added some more – with the result of a flame that flared from the barbecue back up to the bottle, catapulting the bottle from his hand and singeing his arm. The flame, however, also caught Simon’s t-shirt, which immediately caught alight.

Feeling a sensation as if a jet of water had been sprayed on him, Simon rolled on the grass to put out the flame. As he stood up though, the flames reignited – to make matters worse, ‘meths’ is an invisible flame. His sister-in-law phoned 999 as family members tried to help.

Devon’s Air Ambulance crew of paramedics Nick Ratcliffe and Richard Walker, with pilot Howard Roe were swiftly on scene. Simon had suffered 30% burns to his stomach, chest, both arms and his face; by good fortune his sunglasses had protected his eyes. The aircrew checked that Simon was well enough to fly and conveyed him to Derriford for urgent treatment.

Later the same day and once stabilised

at Derriford, a second Air Ambulance aircrew was called to transfer Simon from Derriford to the specialist burns centre at Morriston in Swansea.

Paramedics Chris Saunders and Mark Langley attended with pilot Dan Smith.

Some of the burns were superficial (although still extremely painful as all the nerve endings were exposed); others were far deeper and 10 days after admittance to Morriston, Simon had three skin grafts under general anaesthetic with skin from his knee to his thigh being grafted to his right

“Simon had suffered 30% burns to his stomach, chest, both arms and his face; by good fortune his sunglasses had protected his eyes”

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forearm and under both arms.

Simon was a model patient and surprised all who were looking after him by leaving hospital just three weeks later. When he asked a nurse what made him different she explained, “You had great initial treatment, you have eaten well to keep up your strength and you’ve had a great positive mental attitude – all these things are helping you to heal.”

Speaking to Helipad’s editor and Patient Liaison for Devon Air Ambulance, Debbie Gregory, in early November, Simon said “I’m getting there now. I’m still taking pain relief, applying special cream and wearing the pressure sleeves on both arms – my arms were worse as they took the full force of the flame. I had a great incentive to get better; for my son Ben’s wedding to Livvy at the end of October, and my wife Kirsti and I were so grateful to get there. I’ll be off work for a little while longer but I should be back in the New Year. I am just so thankful to everyone who helped me, from the land crew who first arrived at mum’s, to both the Air Ambulance crews who took me to Derriford and then to Swansea and to all at the specialist burns unit in Morriston – they were absolutely brilliant. I also can’t thank my family and friends enough for all their love and support since the accident. My son, Sam, came all the way from London to visit me – I was so grateful.” n

l Enhanced and Critical Care Programme (ECCP) On a daily basis, our service is called upon to assist some of the most seriously ill or injured patients throughout the county, often with lifethreatening and complex needs. The frequency and diversity of the incidents we attend led us to develop our Enhanced and Critical Care Programme (ECCP). The ECCP provide the education, practical experience and one-to-one clinical support needed to enable our paramedics to deliver a greater range of clinical interventions, including enhanced drug therapies (above and beyond standard paramedic practice), as well as having more confidence and the authority to make more complex decision. Working with Plymouth University, we designed and developed a bespoke three year Masters Degree in ‘Pre-hospital Critical Care Retrieval and Transfer’; Devon Air Ambulance funded the enrolment and study-time for all our paramedics to participate. All the paramedics successfully completed the first year of study in 2016 and are now able to call themselves Specialist Paramedics Critical Care. The majority of paramedics commenced the second year of the study programme in 2016. At this point, the paramedics

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who fly with Devon Air Ambulance will arguably be the best trained and qualified paramedics flying with any air ambulance in the United Kingdom.

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very highest level of care that we can.

In addition to the enhancement of skills for our paramedics, we continue with a programme of engaging a team of doctors to provide even greater clinical support to our patients, as well as providing support and mentoring to the paramedics.

Patient confidentiality can mean that, once admitted to hospital, our team do not know the treatments of, or indeed, the outcomes for the patients they have treated. As part of our ECCP, we are developing closer links with hospitals to ensure our clinicians learn from the experiences of their NHS colleagues who are involved in the ongoing care of our patients.

We are also working with colleagues around the country to put processes in place which will enable the sharing of patient outcome information with non-NHS organisations - like Devon Air Ambulance - so that we can ensure we have the vital information needed to develop our clinical services.

Clinical Development and Governance Devon Air Ambulance facilitate a monthly meeting for the clinical team to come together to review, discuss and reflect on the treatment, interventions and decision-making undertaken for all of the most seriously ill or injured patients we have assisted. This process enables the whole team to learn from the collective experiences of their colleagues and ensures we continue to provide the

Operations Administration In order to ensure greater synergy and closer working practices within the Operations Department, a new central Operations Hub was created at head office to bring together the administrative functions of operations, flight operations and safety. Having the team in one place has delivered a number of benefits, particularly around better communication and collaborative working.

The ECCP won the ‘Innovation Award’ at the prestigious national Association of Air Ambulance annual awards in November 2016, which was a huge achievement and recognised the large amount of hard work and commitment it took to bring this project to fruition.

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In addition, 2016 saw the introduction of the new Air Operations Certificate management system, Centrik. This cloud-based software solution covers every aspect of aviation management.

It integrates all aspects of the operations function, providing comprehensive reporting functions and is a central repository for training records and minutes as well as flight safety and clinical notices. It can also be viewed remotely by regulatory bodies such as the CAA. Air Operations We are pleased that our regulator, the Civil Aviation Authority (CAA), has consistently reported that they are very happy with our air operations, safety management and continued airworthiness systems. This means that CAA monitoring now takes place every two years (not annually as before).

Our Safety Manager monitors safety reports in order to identify and investigate any trends should they occur, and an internal Safety Committee meeting is held monthly to discuss any relevant issues. There are currently no safety critical concerns.

Both helicopters have continued to enjoy high levels of general serviceability and reliability.

Making Night Time Flight Time November 2016 was an important milestone for Devon Air Ambulance as, following many months of planning, it saw the commencement of our night operations with our helicopters flying up until midnight every day.

Double Jeopardy On 12th October 2016, Charlotte Paul was driving along with her infant son Mylo, when they were involved in a high-impact collision with a coach. After the emergency services arrived and freed both Charlotte and Mylo from the car, it was soon apparent that Charlotte needed to get to hospital as quickly as possible, to avoid long-term or even fatal injury. She had suffered a bleed on the brain and spleen, and had also broken her legs, ribs and arm.

Two Air Ambulances arrived on the scene shortly, to transport Mylo to the children’s hospital in Bristol and Charlotte to Derriford hospital.

The journey to Derriford took only 30 minutes by air, but could have been 2 hours by road- an amount of time which could have made the difference between life and death.

After being stabilised and put into a medically induced coma, Charlotte was operated on for 14 hours in Plymouth.

and family members decided that they wanted to do something to say thank you to those who had come to Charlotte’s and Mylo’s aide. So, they pledged to take on the demanding 3 Peaks Challenge to raise money for Devon Air Ambulance, to ensure that our vital service can continue.

Charlotte and another group of friends will also be climbing the final mountain!

The challenge involves climbing each of the tallest mountains in England, Wales and Scotland: Scafell Pike (978m), Snowden (1,085m) and Ben Nevis (1,345m). That’s a combined ascent of over 3,400 metres, and over 40 kilometres of walking!

Since the accident back in October, Charlotte is now recovering but that’s not all. While she was in a coma, a group of grateful friends

2016, there were approximately 22 ‘live’ sites, with another 130 communities in active discussions with our CLS Development Officer.

Working with the Safety Manager, sites were surveyed to assess their suitability and, where necessary,

This operation required the development of a network of community landing sites throughout the county, providing suitably equipped facilities where the helicopters could land safely. Our dedicated Community Landing Site (CLS) Development Officer worked extensively with local communities to identify, plan and commission these sites, located in a variety of settings such as sports grounds, school playing fields, and community areas. By the end of

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the required infrastructure was installed in the form of remotecontrolled lighting. Following an application from the charity, the Treasury awarded a grant of £1m from the LIBOR banking fines to help with the installation of the necessary infrastructure.

Future Plans Our 25th Anniversary Celebrations 2017 marks the 25th anniversary of the first flight by Devon Air Ambulance, and the charity will be celebrating with a number of events and fundraising opportunities, culminating in a party for staff, supporters and local businesses on the 9th September 2017 at Darts Farm and a ‘by invitation’ high tea for patients on the 10th September.

Extending Night Flying Hours Night flying operations commenced in November 2016, with flying time now extended up until midnight every day.

Our mid-term aim is to extend flying time further - until 3am each morning with our ultimate goal being 24-hour a day flying time.

Community Landing Sites As in 2016, we will be continuing to work with communities throughout Devon to develop a network of night landing sites. Our Community Landing Site Development Officer, in conjunction with our Safety Manager, will help communities identify suitable sites and the necessary lighting solutions, as well as carrying out site surveys. Additional financial assistance with the cost of installing the necessary equipment has been made possible by a £1m grant from the Treasurer as part of the recent LIBOR banking fines.

Continue to Invest in Enhanced Critical Care Development We believe that investing in the clinical development of our clinicians is essential to ensure that our service continues to deliver the very latest evidence based care to patients.

Within our ‘Enhanced & Critical Care Programme’ we regularly review the condition, treatment provided and where possible, outcome of our patients, to seek to understand if there was anything more we could do to help them. This information, along with keeping abreast of the latest development in patient care and innovation elsewhere within

the healthcare system, helps us form our clinical development strategy.

Where established processes do not exist elsewhere we do not shy away from developing innovative and contemporary solutions ourselves to meet the needs of our patients. Our development in partnership with Plymouth University of the Master’s Degree in ‘Pre-Hospital Critical Care Retrieval and Transfer’, which is providing Master’s level education, simulation and research for our paramedics, is a current example of our commitment to our investment in clinical development.

Expansion of Our Retail Portfolio We are looking to continue with our structured plan of refitting and relocating our existing shops. This not only ensures we continue to project a professional image of Devon Air Ambulance within our communities, but also that our actual premises are fit for purpose in relation to size, quality and location. In 2017, we are also planning to relocate our stores to more suitable premises in Barnstaple and Honiton, as well as looking for two new shop locations in towns where we currently do not have a presence.

Purchase of a New Helicopter In 2020, we will be looking to replace one of our helicopters and have already started to consider the options available to the charity, taking into account a number of factors such as reliability, operational capabilities, purchase and running costs, capacity and range.

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Commando Challenge Having successfully delivered the event for the first time in 2016, as joint owners with the Royal Marines Charity, both organisations are using the learning gained from the inaugural event in order to improve delivery of the event going foward as well as ensuring an enhanced experience for the participants and spectators.

The event is expected to make an increasing positive contribution from 2018 onwards.

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A very lucky escape...

Christmas was very different for one Exwick family this year, but with a very happy ending.

With all the excitement of being on school holiday and Father Christmas due in just a few days, 8-year old Harry Tansley from Exwick was happy to be out scooting and skating along Exmouth seafront with his dad, his older brother Ben and their friend, Will.

They were having a lovely time until, for no known reason, Harry lost his balance on his scooter and fell – with the handlebar of his scooter catching Harry’s throat as he toppled. The effect was immediate; Harry had a tear in his windpipe causing air to form under his skin with every breath he took.

First responders were quickly on scene and administered an IV drip but called for backup from Devon Air Ambulance who sent an emergency car with two aircrew paramedics and the helicopter with two further paramedics and a doctor on board.

Despite Harry’s face, chest and stomach swelling rapidly, he and his dad remained calm and Harry was able to answer questions coherently.

Paramedic John Shaddick explained, “When we arrived, Harry looked like an 8-year old body builder, he was swollen from his head to his groin. But he and his

dad were both amazingly calm – Harry really was a ‘perfect patient’, particularly considering what was happening.”

Treating Harry in the back of the land ambulance, Dr Reed administered an anaesthetic and a tube was inserted to stop Harry’s throat swelling shut and to keep him breathing. John Shaddick continued, “The teamwork of everyone working together was brilliant. Everyone, land crew, rapid response crew and aircrew, all knew what needed to be done, both inside and outside the ambulance. While Harry was being looked after, paramedic Nick Ratcliff advised Harry’s dad and brother what was happening and spoke to Harry’s mum, who was at work in Torquay, on the phone.

Harry was flown in the air ambulance to Bristol Children’s Hospital (BCI) and his care was taken over by specialist children’s doctors. His dad went in the aircraft too and was impressed by the speed with which they got there, “It would have taken so much longer by road. I was so grateful that Harry was in such good hands en route and that we got from Exmouth to Bristol in just 30 minutes!”

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“When we arrived, Harry looked like an 8-year old body builder, he was swollen from his head to his groin. But he and his dad were both amazingly calm – Harry really was a perfect patient” As Harry was gradually woken up from his induced coma on Christmas Eve, the medical team and his family at his bedside were relieved to realise that his windpipe had ‘healed itself’ and there was no longer the need for surgery.

Christmas Day was made all the better with a visit from Santa Claus in the morning and, amazingly, a discharge from hospital in the afternoon. Back home in Exwick the remaining Christmas holidays remained fairly calm as Harry recovered from his ordeal.

His mum, Justine, called to say thank you, “We are just so grateful to everyone who helped Harry on 20th December.

Without the skills of all the paramedics and Dr Reed and the helicopter getting him to Bristol so quickly, things could have been so different. My husband and I have decided that we are going to run a half marathon this year to raise funds for DAA, so that the service remains available to help others when they need it. We can’t thank you all enough.” n

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Fundraising Given the pivotal importance of fundraising to our income, and thereby the operation of our service, we continue to actively support and promote a wide range of fundraising opportunities, including our large-scale annual events or by helping to support community or individual events and sponsorship.

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The 9th Grand Summer Draw We were again grateful to Vospers and Mazda UK for their support, with the loan of a liveried Mazda 2 to promote ticket sales at many of the events we attend. With the incentive of a Mazda car as first prize, we were able to generate an income of of £52,364.

We have a large contingent of volunteers who support every aspect of fundraising, from servicing our collection boxes, carrying out bucket collections and giving talks (at social groups, schools and for other organisations). They also attend cheque presentations and look after stalls and stands at local community events, as well as supporting staff at events such as the Goose Fair in Tavistock, Chagstock and agricultural shows. By providing training, support and regular communication we are able to keep our volunteers up to date.

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Lottery We continue to see growth in revenue from our lottery; as of the end of 2016 we had 38,000 members playing each week and generating just under £2m income. We continue to use the services of canvassers within our communities to sign-up more lottery members. This year we have moved over to a tablet-based system (rather than paper) which has helped to make sign-ups quicker, more professional and more secure. Towards the end of 2016 we moved over to more flexible Direct Debit based payments; this transition led to a temporary dip in member numbers but this effect was only temporary and subsequently recovered well.

The 3rd Dragon Boat Festival The event took place on Exeter Quay during National Air Ambulance Week. It was, as usual, extremely popular with visitors to the city who came to watch this colourful spectacle while, at the same time, supporting the charity.

We have also supported the fundraising activities of more than 60 local businesses, who kindly nominated us as their chosen ‘Charity of the Year’ in 2016.

We are delighted that we have been chosen as the Exeter Airport’s ‘Charity of the Year’ for 2017.

Our 11th Motorcycle Ride-out Almost 1,000 riders participated in our 11th Motorcycle Ride-Out. Starting at Trago Mills, the course took in around 90 miles of Devon countryside before finishing at Dawlish Warren. It is always lovely to meet up with the biking community, who have been very supportive to the charity over a number of years.

The Motorcycle Ride-Out will be held again in 2017, this time returning to Teignmouth Den .

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Commando Challenge In 2016, we ran our Commando Challenge event in partnership with the Royal Marines Charity, after taking over ownership from Eventful SW. The renamed and rebranded ‘Royal Marines Commando Challenge’ took place over the weekend of the 8th and 9th October 2016, with the continued support of Clinton Devon Estates, the Royal Marines and Pebblebed Heath Conservation Trust who look after the flora and fauna of Woodbury Common.

Delivery of the event was challenging but rewarding, and the feedback from participants was very positive. We will take the lessons learned from this inaugural event to ensure it continues to improve and grow for years to come.

This event required an initial investment of time and money which we believe will establish it as an important fundraising event in our long term strategy. It is expected to generate growing contributions from 2018 onwards while raising awareness of the charities. In 2016 this initial investment has been the main factor in our events generating a net loss of £37,000, while further investment costs in 2017 are expected to mean the event will break even before a growing contribution is generated from 2018.

Legacies The contributions to the charity from legacies also continue to be a strong strand of our income stream, and in 2016 contributed approximately £2m after a strong end of the year. Legacy income after the end of the year has also continued to increase, which may be a short term fluctuation or if the increase becomes sustained it may be a result of the Charity’s increased profile in the last decade.

‘Say it with Silver’ 25th Anniversary Celebrations Looking forward to 2017, we will be continuing to run our major fundraising events and, in September, are delighted to be celebrating the 25th anniversary of flying our first mission. To mark this important milestone, we are planning a number of fundraising activities and will be actively encouraging local businesses and individuals - who are also celebrating a significant 25th birthday or anniversary - to support us. All of these activities will culminate in a party on the 9th September to be held at Dart’s Farm.

Our Supporter Promise Given the negativity around certain aspects of the running of charities which were in the media in 2015, we continue to be very much committed to our ‘Supporter Promise’. We are never involved in cold calling, direct marketing 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 and monitor our fundraising policies and procedures to ensure we deliver ‘best practice’ within our 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 interest.

• 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.

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Marketing and Communications Our website went through a partial re-brand in 2016 and we continue to monitor, with the help of our digital marketing agency the responsiveness of the same, also ensuring it is optimised and responsive to all platforms.

We continue to monitor and evaluate website survey responses and this, as well as social media, the website and events related marketing is reported back regularly to the PR & Fundraising Sub Committee of the main board of trustees.

Online communications are essential and the use of social media by not only the marketing and communications team but across the organisation continues to grow. This includes one to one training/mentoring. The retail team have also been encouraged to raise the profile of their individual shop Facebook pages. To further increase awareness and improve engagement a retail 28 day Facebook challenge was launched. This was a great success and now all shops are posting on Facebook regularly. We also saw the introduction of tweets on Twitter by operational crew, which have been carefully monitored and evaluated.

Social media now plays an essential role

9,000 Likes 15,800 Followers 1,350 Followers 16,800 Views

in the recruitment of new staff. Utilising Facebookâ&#x20AC;&#x2122;s promotional tools to boost our audience is an extremely cost effective way of advertising vacancies with a fee of ÂŁ10 or under.

Our website continues to receive more visitors year on year, with visitors to the site in 2016 showing an increase of 19.6% on 2015.

The Charity is conscious however that it is important to promote itself through many different channels, communicating with our supporters in their preferred method. Our Helipad magazine plays an essential part in this, with it being either delivered through the letterbox or via your inbox.

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It is also widely distributed across the county, including at our charity shops, via shows we attend and through supportive third parties.

However Helipad isnâ&#x20AC;&#x2122;t just a promotion publication; it generates donations, new lottery members, advertising income and brings in new individual, community and business supporters, plus much more. It also allows us the channel within which to say thank you to those who are supporting us, as well as promote our forthcoming events or special occasions.

We are supported by various local publications who offer free space for editorial or advertising purposes. These

include Torbay Times and the Molton News, with more offering similar opportunities for the future. Annually we advertise in the Dunkeswell Karting Club annual programme and Heathcoat Cricket Club.

We celebrated a number of milestones throughout the year such as National Air Ambulance Week and our new fundraiser “Bake off for Take off”.

In the autumn we launched our The Official Magazine of

Spring 2017

in peril 8 Patients tell their tales

Lapstock Rocks!

Music at the Mill

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We continue to make and use videos wherever we can, plus, using various free software such as Rippl and Adobe Spark, we are able to create cost effective eye catching slide shows and films to a professional standard.

ANNUAL REPORT 2016 | 17

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Retail Our retail shops continue to be an important part of Devon Air Ambulance Trust, not only generating income for the charity but also being an important visible presence within our local communities. Unlike many national charities, our shops sell almost entirely donated items, and we pride ourselves on offering a variety of quality products at affordable prices. Our shops also offer a great way for local people to make a valuable contribution to supporting our operations, while at the same time encouraging recycling and helping to reduce waste.

shop to a 3-2-1 venture (all items sold for between £1 - £3) has proved extremely successful, and our relocation to much more spacious premises

merchandise - has helped to ensure we have the most appropriate retail outlet to make the best return on the items which are generously donated to us.

From Barnstaple Lovely staff, very helpful, went out of their way to do things for us Cleanest, brightest, freshest smelling charity shop I’ve been in.

We saw a 13% growth in income from our retail outlets in 2016. As with all retail premises, there is an initial investment required when setting up a new shop or undertaking a refurbishment, but we plan that any front-end cost is recouped as the shops increase their sales and improve their profits. We continue to monitor all our shops on an individual basis and are proactive in implementing innovative

The first half of 2016 saw a challenging time across the whole of the charity retail sector as the economy experienced an upturn and, for the first time in five years, the mainstream retail sector performed better. The retail leadership team worked hard to develop creative strategies to boost sales and contain costs. Along with a general rallying of the sector in the second half of the year, this enabled us to make up lost ground by the end of the year.

In keeping with our ongoing strategy to open two new shops each year, 2016 saw the opening of Plymouth and Bideford, giving us an overall total of 18 shops. The conversion of our Exmouth

the move from the purely traditional model into different sectors, such as our ever popular Furniture and Electrical

within the town has proved popular with residents, visitors and holidaymakers alike. We have widened the diversification of our charity shops and

From Honiton Very smart and well organised.

Lovely light shop – easy to see what is there and very helpful and friendly staff. Thank you. You deserve to do well.

The best presented charity shop in the town, very clean and always smells fresh.

Store and our Topsham shop - focusing on high quality ‘Vintage’ clothing and

ANNUAL REPORT 2016 | 18

changes where we feel they would be appropriate in order to maximise the profit we are able to generate.

We have also invested in the logistics and the management of our retail operation in order for us to meet our strategic aim of expanding by 2 shops per year. In 2016 the appointment of two new area managers has continued to prove an extremely valuable resource, ensuring shops are better supported and the staff motivated.

This investment, at the same time as challenging trading conditions, has led to disappointing financial results within the year but long term forecasts show strong profit growth and a return to

profitability is expected in 2017.

We are always looking for ways to innovate within our retail sector and, in the summer of 2016, we took the decision to trial the opening of some of our shops – those in coastal locations popular with a large numbers of holiday-makers – on a Sunday.

This proved to be both popular and successful and we will be looking to repeat this again during the 2017 summer season.

In 2017, we are looking to continue with our ongoing plan to refit our existing shops, and relocate others to From Exmouth Thank you for all your help, I love this shop!

Lovely staff and great buys to be had.. more suitable premises. This will be of benefit in maintaining the professional image of Devon Air Ambulance as well as ensuring our premises are ‘fit for purpose’ and pleasant places to work and visit. We are also planning to relocate and refit our stores in Barnstaple and Honiton, as well as looking for two new premises in towns where we currently do not have a presence.

Our shops continue to be a real asset to the charity, not only in generating income but also as a means of From Sidmouth Delightful Spring window - just had to come inside!

This is my favourite charity shop, lovely staff and well presented shop with excellent stock. Well done ladies!

Awesome and friendly Lovely shop, never walked away without satisfaction. Friendly, helpful staff. Love coming in here.

maintaining our presence within local communities. They continue to prove extremely popular not only with customers, but with local business and personal donors. They provide quality items at affordable prices, help to support local recycling and generate revenue to support our charitable and operational objectives.

ANNUAL REPORT 2016 | 19

or Our People Like any successful organisation, Devon Air Ambulance relies on the quality of the people who work for us, both paid staff and volunteers. We have a broad range of diverse roles within the charity, from support and administrative to pilots, fundraisers to retail staff. We are committed to treating everyone with respect and to providing a safe and healthy working environment for all.

All new members of staff go through a formal induction process, where they meet individual staff members to learn about the various roles and responsibilities of each area of the charity. As an organisation, we have a strong Vision, Mission and Values statement which is also fundamental to providing a clear outline of what the charity stands for and aims to achieve.

All staff receive regular one-to-one meetings with their line manager/ supervisor and have an annual appraisal to review performance against objectives and to discuss any identified training needs. In addition, all staff have access to the Staff Handbook, which is regularly reviewed and updated with current information.

r eo le

A weekly communications bulletin - enews - is shared with all employees, trustees and aircrew and includes a wide range of interesting information about current media and communications, retail, operations, HR, finance and fundraising.

As well as paid staff, we have a large contingent of volunteers who provide invaluable assistance to the charity across all areas of our business. Our dedicated Volunteer Manager is responsible for ensuring that our volunteers are well informed and supported and Vnews, a regular online and hard copy publication, provides all our volunteers with dedicated information, news and updates.

The charity holds a monthly staff meeting, with alternative months being attended by all the shop managers as well as head office staff.

Training and Development In 2016 we held our annual Away Day attended by all staff, as well as representatives from our paramedic team. This full day event is an opportunity for staff to gather together,

share learning, ideas and information reinforcing our mission, vision and values. The Away Day culminates in an Awards Ceremony, which gives all employees the chance to nominate and vote for colleagues who deserve particular recognition in categories, such as ‘Employee of the Year’, ‘Manager of the Year’, ‘Shop of the Year’ and ‘Bright Spark’.

We continue to issue an annual staff survey to measure engagement, support, working conditions and morale across the charity. In 2016, there was a greater level of uptake than 2015. In total, in 2016, 91% of staff responded to the survey; the results were incredibly positive, with 100% of staff agreeing they receive support and encouragement from their line manager to attend training and development.

Investing in our People Devon Air Ambulance has always recognised the value and importance of investing in our staff, a philosophy which enables us to recruit and retain the best people in every role. In 2016, we established an Office Management Team who meet regularly to discuss Staff receiving 5 Year Service Awards

ANNUAL REPORT 2016 | 20

“In order to achieve our strategic goals, we require excellent leadership coupled with effective and professional management”

Staff receiving 15 Year Service Awards

and enhance their own development and management skills for the benefit of the teams they look after. Given the overall increase in staff numbers, we also created a new role of HR Officer to ensure we had a dedicated human resources professional in the team to advise and oversee on a wide range of personnel issues such as recruitment, training and welfare.

In relation to enhancing the clinical provision we deliver, we saw the completion of the first year of study for all our paramedics which saw them all qualify as ‘Specialist Paramedics in Critical Care’ as part of our Enhanced and Critical Care post-graduate level qualification developed exclusively by Devon Air Ambulance in conjunction with the University of Plymouth (see page 10 for more detail).

Pay and performance The Board of Trustees and Directors of the wholly owned subsidiary Trading Company are responsible for determining our general pay policy and the salaries of the Senior Leadership Team, including the Chief Executive.

Our policy is to set salaries for all staff in line with averages for similar roles

requiring the same level of knowledge, experience and responsibility to achieve the highest standards across all areas of the charity - from aviation safety to patient care, leadership to financial management, fundraising to communications. This approach has led to the charity being able to recruit and retain high calibre staff without exploiting the good will of any member of our dedicated team, and to ensure their hard work and commitment to the charity is appropriately rewarded. In addition, salaries for staff are subject to an annual pay review.

In order to achieve our strategic goals, we require excellent leadership coupled with effective and professional management. Senior staff salaries are set in line with the general policy and are in line with similar roles within the charity sector.

While senior staff salaries are not at the same level as similar roles in the public and private sectors, they are commensurate with the scope of the demands and responsibility of the individual roles. For further information on salaries and staffing, see page 43.

We remain signed up to the Living Wage Foundation’s ‘Living Wage’ and continue to offer a contributory pension scheme. While we do not offer a wide range of additional benefits to our employees, we still achieve

ANNUAL REPORT 2016 | 21

high levels of staff engagement and satisfaction by ensuring that everyone knows how much we appreciate the role they all play in saving lives, whether as part of the aircrew, administration or retail teams.

The trustees and directors are aware of their responsibility to donors, fundraisers, patients and the local community and their overriding concern is delivering the best possible service as cost effectively as possible. In order to do this, the charity and trading company must be run in a business-like way and the senior leadership team is responsible, and held accountable, for achieving demanding targets for improving these service, income generation and increasing cost effectiveness for both companies within the group.

In 2016, the charity established an independently chaired Remuneration Committee, with members drawn from the board of trustees plus the CEO. The committee was tasked with conducting a full pay review, benchmarking each individual role to ensure they remained competitive in relation to other similar jobs within the sector, private and public sector businesses, and across the county. The recommendations of the review were approved by the board of trustees in March 2017 ensuring greater clarity and consistency of pay scales across the organisation.

Planning to Succeed Improving Efficiency The focus on efficiency established in the Strategic Plan continued, particularly following the full accounting system review in 2015 which has led to an update in our main accounting system as well as a new purchase and payments system. Both systems were run parallel to the current systems in 2016, before full implementation begun at the start of 2017. They are expected to create long term efficiency gains, while immediately enhancing controls, decreasing errors and mitigating risk.

The appointment of a Data, IT and Compliance Manager in 2015 has allowed a suitably high level of time and effort to be committed to data protection, an important and continually developing area, particularly in the charity sector. Data security is an area of specific focus, particularly in relation to the risks relating to cyber fraud as charities continue to be targeted. Significant work has been done to raise awareness across the Charity, while security awareness training has been rolled out for employees across the organisation in 2017.

Administration and Support Costs Improving efficiency is an important part of controlling costs as investment in good administration and fundraising practices has a direct impact on the charity’s effectiveness. Excessive short term savings could hinder the charity’s growth and ability to continue its great work.

Efficient administration drives informed decision making and continual improvements while mitigating risk, potentially saving much more significant costs in the medium to long term and safeguarding the charity’s assets for the ultimate beneficiaries.

This requires accounting for every donation, be it large or small, monitoring over 4,200 collection boxes, administering gift aid claims on hundreds of monthly donations including stock donations to the shops, while managing purchasing and procurement to get best value on everything from stationary to aircraft.

Each month we process approximately 4,000 accounting transactions and 9,000 on our database. These allow us to produce annual audited accounts as required by regulations, but also to say thank you to all our supporters and ensure we support the needs of everyone fundraising on our behalf.

Continuing to invest in administration and support helps to fund not just current operations, but the expected growth over the next Strategic Plan period and beyond. The balance between cost and benefit is continually reviewed by the Senior Leadership Team monthly within their Key Performance Indicators.

Support costs as a percentage of income have increased from 4.9% to 5.3%, mainly through investing in staff and IT infrastructure, while the head office has been expanded into an additional property to set up an operations hub and support the increased number of staff. The 2016 percentage has been impacted and effectively reduced due to the one-off £1 million LIBOR receipts, so the percentage of costs are expected to increase further in the short term. As with all costs, they remain under continuous review to ensure that they remain proportionate and required.

For each £1 we spent on fundraising and income generation (including support costs) in 2016 we raised £2.79.

ANNUAL REPORT 2016 | 22

Review of Financial Performance Performance Review The surplus of £2,761,000 in 2016 was over a million higher than 2015 (£1,704,000) and comfortably exceeded expectations, due to a couple of significant indiviudal factors. £1 million of LIBOR funding was received (£243,000 in 2015), as well as legacy income growing by £198,000 to £2,021,000 against a historic expectation of £1,500,000 to £1,600,000. Efficient cost control in fundraising and some delays in the timing of operational expenditure also helped to offset below expectation short-term returns from shops and events, which are forecast to increase in 2017 and beyond.

Generating a surplus is important to ensure that funds are in place to maintain and grow the service, including the next helicopter replacement due in 2020 which requires interim payments in advance. Operational costs are also expected to increase, due to increased expenditure required for night flying and the Enhanced and Critical Care Program which did not impact fully until the latter part of the year.

Income Over half of the £1,302,000 growth in revenue to £8,167,000 was from the LIBOR fund receipts increasing from £243,000 to £1,000,000. These were individual one-off amounts which are not expected to be repeated in the future. They are restricted balances received from funds set up on the back of LIBOR banking fines and used to support Armed Forces, Emergency Services charities and related good causes which demonstrate the very best of values. The £1,000,000 committed to the Charity in 2016 is due to be received in the first half of 2017 and is restricted to assisting local communities in setting up community landing sites to support flying at night. The expenditure relating to this will therefore be made in future years.

Legacy income can fluctuate significantly over time, and for the majority of the year appeared in line with the forecast of £1.5 million. This changed significantly in December with the inclusion of a number of large balances, and this trend appears to have continued in the early months of 2017.

This may be a short term fluctuation which will settle down over the remainder of the year, or is potentially an indicator of an increase in future legacy income as a result of the charity’s profile continuing to grow in the twenty five years since its first flight.

The lottery continued to grow, this year by over 15% to £1,950,000. Growth is expected to continue, although it’s unlikely that it will be possible to do so at such a high rate.

The opening of a further two shops in line with the Strategic Plan helped retail revenue to increase by a further £184,000 to £1,613,000 despite challenging market conditions, particularly in the first half of the year.

These positives helped offset a short term dip in donations which fell by £82,000 to £402,000. Donations, as with other fundraising streams, can fluctuate and an increase in receipts post year end demonstrates that this dip appears to be due to timing.

The main events in the year were the Grand Summer Draw, Motor Bike Rideout, Dragon Boat racing, Sea Swim and the Commando Challenge. The Commando Challenge was run in partnership with the Royal Marines Charity, after taking over from Eventful SW, and hence the £23,000 of income received in relation to this explains the majority of the £26,000 increase in total event fees to £92,000. Being the first year in which the event was run by the two charities additional costs were incurred to take on the event, which were the main factor in the events’ costs increasing by £76,000 to £129,000. Revenue relating to the

ANNUAL REPORT 2016 | 23

Commando Challenge is expected to grow as expenses will decrease over the next two to three years, driving an increase in contribution to the Charity which should become significant from 2019 onwards. While this event has great potential for the charities in the long-term, the expectation of its financial contribution remains modest for its first three years of purchase and take-on.

Expenditure Total expenditure has increased by £679,000 to £5,687,000. The largest increase was in the charitable expenditure from £2,468,000 to £2,770,000 following the extension to operating hours and continuation of the ECCP – this cost is expected to increase further in 2017 and beyond.

Retail expenditure also increased as growth continued, increasing by £289,000 to £1,669,000 The size of this increase was partly due to additional infrastructure cost incurred to support the growth beyond 2016, including the recruitment of two Regional Area Managers. The timing of this increased cost base coinciding with challenging market conditions did result in below expectation results for 2016, but long term forecasts show a return to profitability in 2017 and strong profit growth thereafter.

Lottery costs also increased by 13% to £1,669,000 following the growth in income. A reduction in donation and legacy costs of £56,000 helped to offset the impact of smaller cost increases, such as the £10,000 increase in investment management costs to £42,000.

RI D E O 2 01 6 UT

DEVON AIR AMBULANCE

Income and Expenditure Financial Position at the Year End There are net assets of £18,685,000 at the year end, £5,730,000 of which are tied up in fixed assets and £4,037,000 invested with Kleinwort Benson ahead of the future helicopter replacement.

This leaves £8,918,000 of net assets to fund ongoing operations, short term maintenance and repair costs, infrastructure and ongoing expenditure in Night Flying and Enhanced and Critical Care, and the continuing enhancement of the service.

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

INCOME General Donations Legacies Lottery Retail Other - LIBOR Funds raised by Community Groups Events Investment income and interest

£’000 679 2,021 1,950 1,613 1,000 676 92 136

Events Investment income and interest General Donations

Funds raised by Community Groups 1% 2%

8%

8%

Other - LIBOR

Legacies

12% 25%

INCOME

20%

Retail 24%

Lottery

ANNUAL REPORT 2016 | 24

Generating donations and legacies

Generating lottery income

Funds retained for future service enhancement 7% 6%

Generating retail income

32%

EXPENDITURE

20%

1.5% 0.5%

33%

Generating events income Investment management costs

Operations

EXPENDITURE Generating donations and legacies Generating lottery income Generating retail income Generating events income Investment management costs Operations Funds retained for future service enhancement

£’000 574 503 1,669 129 42 2,770 2,761

£8,031,000

A summary and breakdown of the funds which have been retained as at the end of year is included on the next page. These funds are required for long term capital expenditure, such as the purchase of a new helicopter approximately every five years, and the enhancement of the service.

INCOME FROM FUNDRAISING (including retail, lottery and LIBOR)

COSTS OF FUNDRAISING, RETAIL AND LOTTERY

ANNUAL REPORT 2016 | 25

£2,875,000

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 the Charity 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 the Charity it is deemed highly unlikely that income will drop beyond this level in the short term. Free reserves are considered to equal the General Reserve (i.e. total reserves, less restricted and designated funds) less attributed tangible fixed assets.

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 the charity’s total reserves will continue to be regularly reviewed by the Trustees.

At the year end total reserves were £18,685,000 and free reserves of £5,622,000 comfortably exceeded the £215,000 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 2017 and beyond, while both legacy and other income in 2016 were higher than is forecast for future years.

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 £1,000,000 received from the LIBOR funds in the year which will be paid out over the next three years as grants to local communities to assist them in establishing the Community Landing Sites, which are required to support and expand our Night Flying operations. The remaining £202,000 restricted funds received in 2015 to establish Night Flying Operations have been loaned to and spent on capital items in the Trading Company, with the restricted reserve being reduced as the depreciation is charged back to the Trust.

The most significant designation is the £5,183,000 for the helicopter replacement now due in 2020, with a total of £730,000 also designated for helicopter maintenance, and £218,000 for key manager cover.

RESERVES Restricted - Night Flying Restricted - Community Landing Sites Designated - Helicopter Replacement Designated - Helicopter Maintenance Designated - Key Manager Cover General - held as fixed assets Free reserves

£’000 202 1,000 5,183 730 218 5,730 5,622

ANNUAL REPORT 2016 | 26

“At the year end total reserves were £18,685,000 and free reserves of £5,622,000 comfortably exceeded the £242,000 representing 12 months costs following a 33% decrease in revenue.”

Restricted - Night Flying Restricted - Community Landing Sites Free reserves

1%

Designated - Helicopter Replacement

5%

30%

28%

RESERVES

4%

Designated - Helicopter Maintenance

1%

31%

Designated - Key Manager Cover General - held as fixed assets

Other Net Assets

Fixed assets 14%

ASSETS HELD 2016 Fixed assets Investments Current investments Other Net Assets

ASSETS HELD 2015 Fixed assets Investments Current investments Other Net Assets

£’000 5,730 4,037 6,244 2,674

31%

33%

ASSETS HELD 2016

22%

Current investments £’000 6,013 3,673 5,027 1,211

Investments Other Net Assets

Fixed assets 8%

31%

Current investments

ASSETS HELD 2015

38%

23%

Investments

ANNUAL REPORT 2016 | 27

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 Benson and monitored by Francis Clark Financial Planning, and is in line with a detailed Investment Policy.

The overall expectation is to achieve a financial return which matches inflation prevailing in the aviation sector and is expected to exceed the return earned on deposits with mainstream banks. Although income generation is welcomed, there is no set income target with the focus on capital return allowing for the expected utilisation at specific dates (for example the replacement helicopter purchase).

The Trustees are averse to capital volatility and do not wish to embrace any more risk than a lowest medium risk investor. If market conditions allow, the Trustees are happy to take on less risk in line with a low risk approach. 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 £281,000 (of which £285,000 related to unrealised gain, offset by a small realised loss) have contributed to the surplus in the year, and have offset the losses of £153,000 made in 2015. Investment returns will fluctuate in the short term, and the Trustees have no concerns about the performance of the portfolio since investment in 2015. These funds will not be drawn down until the next helicopter is purchased, and have been made as medium to long term investments.

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

Francis Clark Financial Planning monitor Kleinwort Benson 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 Benson.

Iinvestment income has grown from £106,000 to £136,000 as the portfolio has been invested for the entire year, and income is expected to continue at this level in 2017.

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. They have decided that this would not be in the best interests of our patients to whom they have a primary duty of care as it would restrict the investment manager’s performance.

“The Trustees are confident that this investment remains aligned to the Charity’s requirements, and that the low risk investment mandate is being implemented.”

ANNUAL REPORT 2016 | 28

Local context Devon Air Ambulance Trust works closely with the South Western Ambulance Service NHS Foundation Trust (SWASFT) who employ the paramedics who are seconded to our service and the HEMS (Helicopter Emergency Medical Service) dispatchers from whom we commission the tasking of the service in partnership with our neighbouring air ambulance charities, Cornwall and Dorset & Somerset. Alongside the other air ambulance charities in the region we have worked with SWASFT to develop a strategy to develop pre-hospital clinical services in a manner which enables the strengths of and expertise of both charities and ambulance service to come together to best meet patient need.

Budgets with all NHS organisations are under increasing pressure and whilst this has the real potential to restrict the opportunity for development, our service continues to receive support from SWASFT in enabling Devon Air Ambulance to commission services and personnel in from them to enable our strategic plan to be delivered. Both Devon Air Ambulance and SWASFT have supported the introduction of enhanced governance processes under SWASFT’s Joint Air Ambulance Working Group (JAAWG). This group establishes processes and sub groups enabling clinical staff, dispatchers, operational leads and charity CEO’s from all the region’s air ambulances to meet with their peers, reflect on activity and develop future areas of strategic planning.

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National context Devon Air Ambulance Trust is a member of the Association of Air Ambulances (AAA) and supports its work to develop standard operating procedures, share best practice and support effective national communications and campaigns in support of shared objectives. With membership comprising of Air Ambulance Charities and NHS Ambulance Services, the AAA is able to facilitate the these shared objectives whilst recognising the importance of local geography, topology and demography in members developing services to meet their local needs.

Sharing our experiences with other services enables us to learn from the experience of others and helps avoid spending time and money in areas where others are able to share those areas with us. Supporting the work of the AAA assists to enable this to continue, and during the year we have benefited from our Fundraising Director holding the position of Chair of the AAA Communications Sub-committee and our Operations Director holding the position of Vice-chair of the Operations Sub-committee.

Professionalism The Charity and Senior Leadership Team maintain membership of relevant professional bodies to ensure we keep abreast of developments in our particular areas of expertise, maintain our skills and continuing professional development. As well as AAA, this includes the UK Flight Safety Committee, Association of Chief Executives of Voluntary Organisations, Charity Finance Group, Institute of Fundraising, Institute of Legacy Management, Fundraising Standards Board and the Lotteries Council.

Achievements In 2016 Devon Air Ambulance Trust was shortlisted for Best Community Contribution in the Western Morning News Business Awards. A huge achievement as it recognised the Charity was also run as a business. The service was also recognised at the Association of Air Ambulances Awards of Excellence, picking up the “Innovation of the Year” award for the creation of our Enhanced and Critical Care Programme (ECCP) Masters Degree in partnership with Plymouth University.

Related Parties The helicopters are part of an integrated response to medical emergencies and traumatic injuries in partnership with SWASFT who also deploy the helicopters from their emergency control room in Exeter. The dispatch criteria are defined and monitored in accordance with the terms set out in a Service Level Agreement between SWASFT and DAAT, Cornwall Air Ambulance Trust (CAAT) and Dorset & Somerset Air Ambulance Trust (DSAAT), which is regularly reviewed. Both helicopters are owned by Devon Air Ambulance Trading Company Ltd (DAATCL), the Charity’s wholly owned subsidiary company, with aviation maintenance services being provided by Airbus Helicopters UK Ltd.

“The service was also recognised at the Association of Air Ambulances Awards of Excellence, picking up the Innovation of the Year award”

ANNUAL REPORT 2016 | 29

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e

Structure Governance & Management Governance The 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 30th September 1999 and is governed by its Memorandum and Articles of Association dated 29th September 1999.

A Special Resolution was passed on the 8th March 2017 for the Trading Company to adopt an updated Articles of Association, to ensure that they remained up-to-date, relevant and complete.

Appointment of Trustees The Board of Trustees is made up of independent members who bring with them a broad range of professional skills and experience. Nominations may be received from another trustee, a member of staff or as a direct approach from an individual.

Trustees are appointed by the board, following an initial meeting with the Chair and Chief Executive and having attended at least one board meeting as an observer.

Trustee Induction and Training After appointment, all new trustees are providing with a Trustee Handbook, and undertake a formal induction process. This includes an orientation briefing on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes of the charity, the annual budget, strategic plan and recent financial performance of the charity. During their induction, new trustees meet key employees within the charity to learn more about their individual roles and responsibilities, and are also invited to visit the airbases to learn more about the operational side of service delivery.

A governance training day, delivered annually by an external professional, is provided for all new trustees and as a refresher for existing trustees.

ANNUAL REPORT 2016 | 30

Structure of the Organisation The Board of Trustees administers the Charity. There are five committees (PR and Fundraising, Human Resources, Finance, Remuneration and Operations) which report into the main board. The committees and main board meet four times a year.

Additional meetings can be held as and when necessary 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 term that a trustee may serve therefore is six years. Trustees may be reappointed for one further term of three years, after a three year break from office.

Trustees roles and responsibilities and, in 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 the charity. 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 with the Scheme of Delegation referred to above.

The charity employs professional staff in fundraising and communications, operations, financial management, retail and administration. The staff are accountable, through a line management system, to the Senior Leadership team who, in turn, are accountable to the Chief Executive. The Chief Executive is accountable to the board of trustees.

The ultimate accountability of the charity is to the people, businesses and community groups of Devon who make the charityâ&#x20AC;&#x2122;s activities and achievements possible through their ongoing support.

ANNUAL REPORT 2016 | 31

r

l

k

er

The trustees have put in place a formal risk management process to assess any risks to the charity and implement risk management strategies. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating risk.

The trustees review the adequacy of the charityâ&#x20AC;&#x2122;s current financial controls on a regular basis and each of the identified risks on a rotational basis. 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, the charityâ&#x20AC;&#x2122;s internal financial controls conform to Charity Commission guidelines.

Currently, the most significant risks defied by the trustees are: a. risk of strike action, or breakdown of relationships with the medical staff (who are relied on to operate the service); b. the reputational and financial damage caused by fraud (by an employee or volunteer) or cyber attack; or c. an adverse impact on the fund from a significant change in government policy.

To mitigate these risks, significant management time is invested in managing the relationship with medical staff, while controls review and testing is carried out to review and ensure implementation of the policies and controls in place. Impact analysis is carried out where there is an exposure to government policy and strategic planning made in this context.

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

ANNUAL REPORT 2016 | 32

e

e e

o r

ee

e o

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 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 statements, 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 Francis Clark LLP as auditors for the ensuing year was proposed at the June 2017 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:

Stephen Tyrrell, Chair 29 June 2017

ANNUAL REPORT 2016 | 33

l e

Independent Auditor’s Report to Trustees We have audited the financial statements of Devon Air Ambulance Trust for the year ended 31 December 2016 which comprise the Group Statement of Financial Activities, Group and Parent Company Balance Sheets, Group Cash Flow Statement and the related notes. 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).

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement set out on page 33 the trustees (who are also directors of the company 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.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial

statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

In addition we read all the financial and non-financial information in the financial statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent misstatements or inconsistencies we consider the implications for our report.

Opinion In our opinion the financial statements: • give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2016 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006.

In our opinion the information given in the Trustees’ Annual Report (incorporating the Strategic Report) for the financial year for which the financial statements are prepared is consistent with the financial statements and the Trustees’ Report has been prepared in accordance with applicable legal requirements. In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Trustees’ Report.

Matters on which we are required to report by exception We have nothing to report in respect

ANNUAL REPORT 2016 | 34

of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • the parent charitable company group kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • the parent charitable company’s 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 received all the information and explanations we require for our audit.

STEPHANIE HENSHAW FCA (Senior Statutory Auditor) for and on behalf of PKF FRANCIS CLARK Chartered Accountants & Statutory Auditor Vantage Point Woodwater Park Pynes Hill Exeter EX2 5FD 8 August 2017

Consolidated Statement of Financial Activities (including income & expenditure account) for the year ended 31 December 2016

Notes

Unrestricted funds £’000

Restricted funds £’000

Total funds 2016 £’000

Total fund 2015 £’000

3

3,376

-

3,376

3,328

4 4

1,613 1,950

-

1,613 1,950

1,429 1,685

4 5

92 136 -

1,000

92 136 1,000

66 106 8 243

7,167

1,000

8,167

6,865

574

-

574

630

4 4

1,669 503

-

1,669 503

1,380 445

4

129 42 2,729

41

129 42 2,770

53 32 2,468

5,646

41

5,687

5,008

281

-

281

(153)

1,802 -

959 -

2,761 -

1,704 -

Net movement in funds

1,802

959

2,761

1,704

Reconciliation of funds Total funds brought forward

15,681

243

15,924

14,220

Total funds carried forward

17,483

1,202

18,685

15,924

Income Donations and legacies Trading activities: Retail operations DAAT lottery DAAT events Investment income Income from charitable activities Other income

6

Total income Expenditure Donations and legacies Trading activities: Retail operations DAAT lottery DAAT events Investment management costs Expenditure on charitable activities

7

Total expenditure

Net gain/(loss) on investments Net income for the year Transfers between funds

8

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 38 - 48 form part of these accounts.

ANNUAL REPORT 2016 | 35

Consolidated Balance Sheet 31 December 2016

Fixed assets Tangible assets Investments

Notes

Group 2016 £’000

Group 2015 £’000

Company 2016 £’000

Company 2015 £’000

13 14

5,730 4,037

6,013 3,673

760 4,037

743 3,673

9,767

9,686

4,797

4,616

21 2,769 6,244 435

25 1,366 5,027 568

13 8,032 6,244 354

15 6,559 5,027 432

9,469

6,986

14,643

12,033

(551)

(748)

(755)

(525)

8,918

6,238

13,888

11,508

18,685

15,924

18,685

15,924

Total fixed assets Current assets Stocks Debtors Investments Cash at bank and in hand

15 16 14 17

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

19

1,202

243

1,202

243

Unrestricted income funds: General Designated

19 19

11,352 6,131

9,952 5,729

11,352 6,131

9,952 5,729

Total unrestricted income funds

17,483

15,681

17,483

15,681

Total Charity funds

18,685

15,924

18,685

15,924

The trustees have prepared group accounts in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2015), applicable UK Accounting Standards and the Companies Act 2006.

Approved by the Trustees of Devon Air Ambulance Trust on 29 June 2017 and signed on its behalf

Stephen Tyrrell, Chair 29 June 2017 The notes on pages 38 - 48 form part of these financial accounts.

Company registered no 03855746

ANNUAL REPORT 2016 | 36

Consolidated Statement of Cash Flows 31 December 2016

2016 £’000 Net cash inflow from operating activities (note below) Cash flows from investing activities: Income from current investments Dividends and interest from non-current investments Proceeds from sales of investments Purchase of investments Purchase of property, plant and equipment

2015 £’000

£’000

1,491

£’000 3,332

103 33 913 (997) (459)

22 84 411 (4,237) (160)

Net cash used in investing activities

(407)

(3,880)

Increase/(Decrease) in cash and cash equivalents in the year Cash and cash equivalents 1/1/16

1,084 5,595

(548) 6,143

Cash and cash equivalents 31/12/16

6,679

5,595

Note Reconciliation of net cash inflow from operating activities Net income for the year Depreciation charges (Gains)/Losses on investments Loss on fixed assets Income from investments Decrease in stocks (Decrease)/Increase in creditors (Increase)/Decrease in debtors

2,761 742 (281) (136) 4 (197) (1,402)

Net cash inflow from operating activities

1,704 703 153 142 (106) 9 283 444 1,496

Analysis of cash and cash equivalents Cash in hand and at bank Current investments Total cash and cash equivalents

ANNUAL REPORT 2016 | 37

3,332

1 Jan 2016 £’000 568 5,027

Cash flows £’000 (133) 1,217

31 Dec 2016 £’000 435 6,244

5,595

1,084

6,679

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 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 50. 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 judgment 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 with sufficient certainty obtained of the value 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 which is 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 20.

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 pay 4/5th of the salaries of ambulance staff aircrew and for drugs and medical consumables â&#x20AC;&#x201C; all other costs are met 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.

ANNUAL REPORT 2016 | 38

Tangible Fixed Assets Individual fixed assets costing £1,000 or more are capitalised at cost.

Tangible fixed assets are depreciated on a straight line basis over their estimated useful lives as follows: Asset Category EC135 Helicopters Helicopter factory fitted role equipment Helicopter medical equipment Long leasehold buildings Short leasehold improvements Office equipment & furniture IT equipment

Annual rate 7.00 -7.25% 10% 33% 2% - 6.67% 20% 25% 33%

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

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 two 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 1% of salary into this scheme unless they have opted out of the scheme.

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

Recognition and measurement: The company has chosen to apply the recognition and measurement principles in FRS 102.

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 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.

ANNUAL REPORT 2016 | 39

Notes to the Accounts 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 and Legacies Unrestricted funds £’000

Restricted funds £’000

Total funds 2016 £’000

Total funds 2015 £’000

Legacies Donations including ‘in memory’ and anniversaries Regular giving schemes Charitable Trust donations Funds raised by community groups Schools and youth organisations Box and street collections

2,021 402 49 44 676 8 176

-

2,021 402 49 44 676 8 176

1,823 484 45 41 738 12 185

Total donations and legacies

3,376

-

3,376

3,328

Unrestricted funds £’000

Restricted funds £’000

Total funds 2016 £’000

Total funds 2015 £’000

Shops and merchandise trading Sales

1,613

-

1,613

1,429

Cost of goods sold Overheads and expenses Support costs

6 1,545 118

-

6 1,545 118

8 1,241 131

1,669

-

1,669

1,380

(56)

49

In 2015 none of the income from donations was restricted.

4. Trading Activities

Contribution to the Charity’s funds Lottery Sales

(56)

1,950

-

1,950

1,685

113 312 78

-

113 312 78

111 274 60

503

-

503

445

Contribution to the Charity’s funds

1,447

-

1,447

1,240

Total trading income Total trading expenditure

3,563 2,172

-

3,563 2,172

3,114 1,825

Total trading contribution

1,391

-

1,391

1,289

Prizes Overheads and expenses Support costs

DAAT events are not included within trading activities as their primary purpose is to promote the Charity and its activities rather

ANNUAL REPORT 2016 | 40

than to generate income. DAAT events have cost £37,000 in the year (2015: £13,000 contribution).

In 2015 none of the income but £1,000 of the expenditure from trading activities was restricted.

5. Investment Income

Bank deposit accounts Income from investments

Unrestricted funds £’000 33 103

Restricted funds £’000 -

Total funds 2016 £’000 33 103

Total funds 2015 £’000 22 84

136

-

136

106

Total investment income

6. Other Income Other income in 2016 includes £1,000,000 received from the LIBOR fine fund towards community landing sites all of which is restricted.

Other income in 2015 includes £241,000 received from the LIBOR fine fund towards night flying all of which was restricted.

ANNUAL REPORT 2016 | 41

Notes to the Accounts

Lottery

Helicopter Costs

Investment Costs

2016

2015

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Costs directly allocated to activities Charitable activities Fixed asset write off (see note below) Direct fundraising Events Retail dept selling and premises Retail dept staff related DAAT lottery prizes Daat lottery selling and admin Volunteer support and expenses Fundraising dept Fundraising dept staff related PR & marketing dept PR & marketing dept staff related Investment management costs

9 9 68 32 18 -

5 7 20 17 114 38 17 -

60 1 4 17 17 14 -

744 807 11 1 6 12 6 -

113 312 2 11 11 1 -

2,710 1 1 -

39

2,710 14 67 744 807 113 312 32 33 216 111 57 39

2,310 142 13 76 615 633 111 273 34 49 171 128 85 29

Support costs allocated to activities Staff related HQ premises Stationery and mailing IT, communications and equipment Insurances Finance Non-recoverable VAT Legal and professional fees

52 8 1 14 2 2 1 3

74 12 12 20 1 6 7 5

10 2 3 1

61 4 1 7 5 4

15 1 2 2 32 1

28 8 13 9

3 -

243 35 14 59 5 13 40 23

208 33 13 27 1 13 30 14

219

355

129

1,669

503

2,770

42

5,687

5,008

Donations

Shops

Community Fundraising

DAAT Events

7. Total Resources Expended

Total expenditure

The fixed asset write-off in 2015 was 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.

Of the £5,008,000 expenditure in 2015, £82,000 related to restricted funds. £78,000 of this related to expenditure on charitable activities, £3,000 on donations and legacies, and £1,000 on retail operations.

ANNUAL REPORT 2016 | 42

8. Net Income for the Year 2016 £’000

2015 £’000

37 742 6 6

3 28 703 6 6

2016 £’000

2015 £’000

a) Staff costs Wages and salaries Social security costs Pension costs

1,776 162 103

1,393 125 89

Total staff costs

2,041

1,607

Net income for the year is stated after charging: Operating leases – equipment Operating leases – vehicles Depreciation Auditor’s remuneration – audit services Auditor’s remuneration – non-audit service

9. Analysis of Staff Costs, Trustee Remuneration and Expenses and the Cost of Key Management Personnel

During the year six employees were paid £60,000 or more (2015: five, one in the Trust and four in the Trading Company), one in the Trust and five in the Trading Company.

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

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000

2016

2015

4 1 1

4 1 -

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, unless the individual has opted out of the scheme. b) Trustee Remuneration and Expenses During the year the Charity Trustees received no (2015: £nil) remuneration or expenses from the Trust or its subsidiary. 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 £246,539 (2015: £234,752).

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 £426,174 (2015:£423,211).

Nigel Hare, the Operations Director, is employed by SWASFT and a cost is recharged to the Trust, which is not included in the above analysis.

ANNUAL REPORT 2016 | 43

Notes to the Accounts 10. Staff Numbers The average monthly head count was 75 staff (2015: 62 staff) and the average monthly number of full-time equivalent employees during the year were as follows: 2016 2015 Number Number Administration 10 9 Charity shops 37 30 Fundraising and other charitable work 7 5 Operational staff employed in the Trading Company 9 7 63

51

By the end of 2016 we had 518 registered volunteers.

11. Related Party Transactions DAAT held £1,000,000 in a 95 day notice account with Santander during the year (the balance at the end of December including interest was £1,005,000). Alison Upton was a Trustee of DAAT and was also an employee of Santander during the year, and was therefore not involved in decisions regarding this balance.

There were no other related party transactions in the year.

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

13.(a) Tangible Fixed Assets - Group Helicopter

Equipment

£’000

£’000

Fixtures & fittings £’000

Cost At 1 January 2016 Additions

7,845 387

77 2

294 20

1,018 50

9,234 459

At 31 December 2016

8,232

79

314

1,068

9,693

Depreciation At 1 January 2016 Charge for the year

2,577 684

69 6

285 12

290 40

3,221 742

At 31 December 2016

3,261

75

297

330

3,963

Net book value At 31 December 2016

4,971

4

17

738

5,730

At 31 December 2015

5,268

8

9

728

6,013

ANNUAL REPORT 2016 | 44

Leasehold property £’000

Total £’000

13.(b) Tangible Fixed Assets - Company Equipment £’000

Fixtures & fittings £’000

Cost At 1 January 2016 Additions Disposals

77 2 -

294 20 -

1,013 50 -

1,384 72 -

At 31 December 2016

79

314

1,063

1,456

Depreciation At 1 January 2016 Charge for the year On disposals

69 6 -

285 10 -

287 39 -

641 55 -

At 31 December 2016

75

295

326

696

Net book value At 31 December 2016

4

19

737

760

At 31 December 2015

8

9

726

743

ANNUAL REPORT 2016 | 45

Leasehold property £’000

Total £’000

Notes to the Accounts 14. Investments - Group and Company 2016 £’000

2015 £’000

3,673 997 (913) 285 (5)

4,237 (411) (122) (31)

At 31 December 2016

4,037

3,673

Current asset investments HSBC deposit account Kleinwort Benson 92 Day Notice Account Lloyds bank deposit account Nationwide deposit account Santander 95 day notice account

3,233 1,001 1,005 1,005

2,027 1,000 1,000 1,000

6,244

5,027

Fixed asset investments Investments at market value At 1 January 2016 Additions Disposals Commission charged on purchase/sale of quoted investments Unrealised gain/(loss) Realised loss

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 no 3876276). Devon Air Ambulance Trading Company Limited provides helicopter services to the charity. The assets and liabilities of the subsidiary were: 2016 2015 £’000 £’000 Fixed assets 4,971 5,270 Current assets 665 464 Current liabilities (1,364) (1,479) Long term loan (4,272) (4,255) Aggregate share capital and reserves

-

-

A summary of its results and reserves Turnover Expenditure Amount gift aided to the Charity

3,069 (2,790) (279)

2,464 (2,318) (146)

-

-

Profit for the year

15. Stock

Stock - Merchandise and Aviation Fuel

Group 2016 £’000 21

Group 2015 £’000 25

Company 2016 £’000 13

Company 2015 £’000 15

Group 2016 £’000 988 117 664 1,000 -

Group 2015 £’000 602 81 683 -

Company 2016 £’000 989 43 616 1,000 811 4,376 197

Company 2015 £’000 602 39 513 1,088 4,255 62

2,769

1,366

8,032

6,559

16. Debtors - current

Legacies receivable Other debtors Prepayments LIBOR income DAA Trading Co Ltd (due within one year) DAA Trading Co Ltd (due after more than one year) DAA Trading Co Ltd gift aided donation

ANNUAL REPORT 2016 | 46

17. Cash at bank and in hand Group 2016 £’000 152 75 208

Group 2015 £’000 272 70 226

Company 2016 £’000 71 75 208

Company 2015 £’000 138 70 224

435

568

354

432

Group 2016 £’000 208 223 47 15 58

Group 2015 £’000 394 239 48 22 45

Company 2016 £’000 437 223 29 9 57

Company 2015 £’000 197 239 24 20 45

551

748

755

525

Balance at 1 January 2016

Incoming resources

Transfers £’000

Balance at 31 December 2016 £’000

HSBC bank accounts National Westminster Investment Manager account

18. Creditors – amounts falling due within one year

Trade creditors Lottery entry monies received in advance Taxation and Social Security Other creditors Accruals

19. Analysis of Funds - Group

£’000

£’000

Resources expended & losses £’000

Unrestricted income funds Designated funds† Helicopter replacement Helicopter maintenance Key manager cover Night flying

4,750 703 200 76

-

-

433 27 18 (76)

5,183 730 218 -

General funds

5,729 9,952

7,448

(5,646)

402 (402)

6,131 11,352

Total unrestricted funds

15,681

7,448

(5,646)

-

17,483

3 240 -

1,000

(3) (38) -

-

202 1,000

243

1,000

(41)

-

1,202

15,924

8,448

(5,687)

-

18,685

Restricted income funds‡ Cox Laryngoscope Night flying Community landing sites

†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 2020.

Helicopter Maintenance The 2015 balance was calculated as the estimated costs of a severe but realistic repair scenario, and up to date figures have been obtained for the 2016 calculation.

ANNUAL REPORT 2016 | 47

Notes to the Accounts 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 2015 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 Cox Laryngoscope Fund £5,000 was donated to be spend on this specific medical equipment. This was purchased within the Trading Company subsidiary in December 2015 and the restricted fund has been reduced monthly by the depreciation charged back to the Trust.

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. This will be received in 2017 and held by the Trust. Community organisations will be able to apply for funds to assist them in setting up a community landing site for use at night.

20. Analysis of net assets between funds – group

Fixed assets Investments Bank fixed term deposit accounts Current assets Current liabilities Liabilites due after more than 1 year

General Income Fund £’000 5,730 3,383 2,790 (551) -

Designated Funds £’000 4,037 2,094 -

Restricted Funds £’000 1,202 -

Total at 31 December £’000 5,730 4,037 6,679 2,790 (551) -

11,352

6,131

1,202

18,685

2016 Land & buildings £’000

2016 Other items £’000

2015 Land & buildings £’000

2015 Other items £’000

85 652 -

10 46 -

33 435 -

57 -

737

56

468

57

21. Operating lease commitments

Operating leases which expire: within one year within two to five years after more than five years

22. Commitments As part of the transfer of pilots into the Company in 2014, a total of £16,250 is due to these staff each March up to 2017 if they remain employees of the Company. The third and final payment of £16,250 was made in March 2017.

23. Financial Instruments Categorisation of financial instruments

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

Group 2016 £’000 6,142 446

ANNUAL REPORT 2016 | 48

Group 2015 £’000 4356 655

Company 2016 £’000 11,452 669

Company 2015 £’000 9,719 456

Le l

r

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Information for the Year Ended 31 December 2016 Patrons Mary King MBE Lady Penny Mountbatten Jennie Bond David Fitzgerald Adam Isaac Sam Hill Trustees who served during the year Anita Newcombe (Chair) (completed term 18 May 2017) Barry Cole Matthew Sheather (completed term 29 July 2016) Andrew Appelboam (completed term 28 October 2016) William Price (completed term 10 November 2016) Alison Upton (resigned 26 April 2017) Stephen Tyrrell Richard Plunkett Lisa Humphries (resigned 11 February 2016) Simon Denton (completed term 12 May 2016) Rachel Short (appointed 24 March 2016) Tony Noon (appointed 24 March 2016)

• ••

• • • •

member of the PR & Fundraising Committee member of Finance Committee member of the HR Committee member of the Operations Committee

•• •• • • •

Current trustees appointed after the year end Anthony Hudson (appointed 23 March 2017) Mark Williams (appointed 23 March 2017) Stephen Tyrrell was appointed Chair from 18 May 2017.

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

Chief Executive Fundraising Director Finance Director Retail Director Operations Director Flight Operations Director

Principal Address & Registered Office Devon Air Ambulance Trust Unit 5 Sandpiper Court Harrington Lane Chartered Accountants & Statutory Auditor Exeter EX5 8NS PKF Francis Clark Vantage Point Bankers Woodwater Park HSBC Bank plc Pynes Hill 250 High Street Exeter EX2 5FD Exeter EX4 3PZ Solicitors Foot Anstey LLP Senate Court Southernhay Gardens Exeter EX1 1NT

Investment Manager Kleinwort Benson 8 St James’s Square London SW1Y 4JU

ANNUAL REPORT 2016 | 49

e

o

DEVON AIR AMBULANCE TRUST Registered office address: Unit 5 Sandpiper Court Harrington Lane Exeter EX5 8NS

01392 466666 info@daat.org DAAT.org

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.

Design Images Š

Silver Foxes Publishing 07455 206470 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.

All rights reserved. No part of this report may be reproduced or used in any form without prior permission of the publishers.

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).

ANNUAL REPORT 2016 | 50

Devon Air Ambulance Trust is a company limited by guarantee no 03855746 and a registered charity no 1077998