Devon Air Ambulance Trust Annual Report & Accounts 2017 by Devon Air Ambulance Trust

Devon Air Ambulance Trust Real People Saving Real Lives

Annual Report and Accounts Year ended 31 December 2017

Introduction Devon Air Ambulance Trust is the Charity that funds and operates Devon’s Air Ambulance service. The service is available to anyone and everyone in Devon and neighbouring counties, whether resident or visitor. Provision of the service to individual deployments is based on clinical assessment, urgency, accessibility and distance to the appropriate hospital to treat the needs of each individual patient. Devon Air Ambulance operates two helicopters, 365 days a year from our airbases in Exeter and Eaglescott, near Umberleigh. From November

2016, our Exeter-based helicopter has operated into the hours of darkness (up until midnight every day), deploying to our network of community landing sites. We continue to be proud of our independence from government funding – the operating costs of the service are met by public fundraising and donations. Our paramedics are provided by South Western Ambulance Service NHS Foundation Trust, supported in part by the Charity. It currently costs in the region of £6.4 million every year to keep Devon’s two air ambulances flying.

Public Benefit 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 most appropriate treatment centre based on the clinical need of the individual patient. This benefit is available to any member of the public and access to the service is based solely on patient need, determined by a team of specialist dispatchers working within the ambulance emergency control centre. This benefit is available to anyone and everyone in Devon (and, as required, neighbouring counties) whether they are residents or visitors. The decision

to deploy the helicopter is based on a fixed set of criteria which take account of a number of critical factors including clinical need, urgency, accessibility and distance/time to the most appropriate treatment centre or hospital. The use of these criteria in deploying the aircraft is regularly monitored and reviewed to ensure they are rigorously applied. 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 and consider it in all aspects of the company’s activities.

DAAT.ORG

ANNUAL REPORT 2017

Contents Trustees’ Report (incorporating the Strategic Report) 3 Introduction and Public Benefit 5 Our Vision, Mission and Values 6 Strategic Overview 8 Operational Statistics 10 Clinical & Operational Services 12 Future Plans 14 Raising the Money and Looking After Our Supporters 18 Communications and Marketing 20 Retail 22 Supporting Our People 24 Planning to Succeed 25 Review of Financial Performance 26 Financial Position at the Year End 28 Reserves 30 Financial Risk Management 31 Other Factors in Achievement of Objectives 32 Structure Governance and Management 34 Principal Risks and Uncertainties 35 Statement of Trustees’ Responsibilities Auditor’s Report 36 Independent Auditor’s Report to Trustees 38 Consolidated Statement of Financial Activities 39 Consolidated Balance Sheet 40 Consolidated Statement of Cash Flow 41 Notes to the Accounts 51 Legal and Administrative 52 Getting in Touch

cdf

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-led Developed through experience

Community

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

A Safe and Just Culture Transparent Fair Inclusive Ethically aware

Excellence

Professional Volunteer support Innovative Investment in people Robust governance

DAAT.ORG

ANNUAL REPORT 2017

Strategic Overview In November 2017, the Charity produced a new 5-year Strategic Plan covering the period 20172021. The early publication of this new strategy was possible because the Charity achieved its anticipated goals from the previous plan (which ran 20132017) ahead of schedule. The main consideration when devising the Strategic Plan and the strategic ‘direction of travel’ is to strive to improve clinical outcomes for our patients, through an evidence-led approach to decision making. The strategy sets out our charitable objectives in more detail, gives a clear strategic direction for the Charity and how we aim to achieve our objectives. It also documents the strategic considerations which are fundamental to ensuring we work towards achieving our overarching goals. Our finance plan gives an overview of the targets we need to meet in order to support all of our service delivery objectives. The patient services and aviation plan sets out our key objectives and the rationale behind these, including the importance of evidence-led decision making in relation to clinical delivery, aircrew profile, flying hours and helicopter purchase.

Our income generation plan covers all aspects of our vital fundraising operations, from lottery and donations, through business engagement and community fundraising. We also highlight the key role played by our retail operations in supporting income generation and community engagement. As a support function, our marketing and PR plan provides an overview of how we aim to maintain our very high standards of brand awareness across the county, and our commitment to best practice in terms of our social media and online platforms and engagement. Our people and infrastructure plans detail how we ensure we have the right skills and experience to deliver on our objectives while operating in a ‘just’ culture, and how we ensure we have the right systems in terms of I.T., training and working environments. We also continue to be committed to maintaining the independence of the Charity and to ensuring that any decisions in relation to external influence and governance are made in the best interests of our service delivery, and our fundraisers and supporters.

Devon Air Ambulance 5 YEAR STRATEGIC PLAN 2017 – 2021

Our 5-year Strategic Plan Our Strategic Plan underpins the direction of our organisation. It helps us work together to hit the targets that will enable us to achieve the very best outcomes for our future patients. Importantly, the plan is very much a ‘live’ document as we must be responsive to changes in our operating environment that we cannot predict. Here we outline some of the key points.

Values Patients first Our Mission is the relief of sickness and injury in Devon and surrounding areas, which we do by providing exemplary patient care. Our work is patient-led and our decisions based on evidence, drawing on our 25 years’ experience and ongoing learning and development. The starting point for our Strategic Plan is therefore patient services, from which everything else follows. Independent We don’t rely on government funding, which means we can be agile in our decision making whilst also thinking about the long-term needs of our patients here in Devon. Because we are independent, the fantastic support we get from local people is ploughed into doing what is best for local people, both now and in the future, and has given us the opportunity to save money through self-insurance and by owning and operating our own aircraft. At the heart of the community It is local communities all across Devon that make our work possible. Devon’s air ambulances are owned by and for Devon people. We aim to listen to and be accountable to local people, for example by working with local communities to support them in developing their community landing sites. We also collaborate with regional and national partners who lobby Government on our behalf, for example, in applying for grants from the LIBOR fund, which means we are able to support communities in getting night-flight ready. Maintaining the right culture Our aim is to nurture a safe and just culture of transparency, fairness, inclusivity and ethical awareness. We ensure our supporters are protected by looking after their data and fostering a culture of mutual respect. Sustaining excellence Robust governance, professional conduct, investment in people and comprehensive support of our volunteers are at the core of our vision of providing an outstanding Helicopter Emergency Medical Service that will be available to all, 24 hours a day.

“

DAAT.ORG

We don’t rely on government funding, which means we can be agile in our decision making whilst also thinking about the long-term needs of our patients.

”

ANNUAL REPORT 2017

Operational Statistics 2017

During 2017

720

HOURS Combined flying time

990

Patients assisted

22% SPECIALIST PARAMEDIC CRITICAL CARE

12%

of patients treated received advanced clinical skills

of medical emergencies were children

no road access

of daytime incidents were flown home using night vision goggles

of daytime incidents were flown to hospital using night vision goggles

16%

Our patients were

of incidents we were the first on scene

67% Male

1st

33%

Female

of incidents our helicopter was the sole responder

During the hours of darkness

Community Landing Sites operational

We deployed to

of incidents in darkness DAAT.ORG

ANNUAL REPORT 2017

Clinical and Operational Services Activity 2017 represented Devon Air Ambulance’s busiest year ever. We responded to 1,372 incidents and treated just under 1,000 patients. Our service responds to patients who are suffering life-threatening medical conditions or have sustained serious traumatic injuries in almost equal number, as well as a small number of patients who require an urgent transfer from one hospital to another which can offer them a greater level of care. Although one advantage of an air ambulance is its ability to access patients located where land ambulances cannot reach them, this only accounted for 7% of our activity, with the vast majority of the patients we respond to being as a result of the enhanced and critical care treatment we can offer them. Indeed, in 2017 64% of patients were located in a city, town, village or hamlet. Alongside the enhanced care our service provides patients, we are also able to ‘bypass’ the closest hospital in favour of transporting them direct to a hospital which

provides the specialist staff and treatment needed to offer the very best chance of a successful outcome. Last year, 33% of the patients we transported we either bypassed or overflew the closest hospital to enable them to access the specialist care they needed. We also conveyed many other patients direct to the appropriate specialist treatment centre when it was the closest hospital from the patient’s location. 12% of the patients we treated were children with just over onethird suffering from a serious medical condition while the others were as a result of being injured in an accident/incident. Night Operations Operating during the hours of darkness isn’t just restricted to ‘night time’. In the shorter daylight winter months, it can be dark from as early as 4pm and this year has been our first full year of providing our ‘night’ service. Working with local communities, we are establishing a network of ‘Community Landing Sites’ equipped with remote controlled floodlighting that we can activate from our control

room. These sites enable us to respond quickly, often landing right in the heart of a community, meaning we can offer the same life-saving service even when it’s dark. At the end of the year, there were 60 Community Landing Sites in operation with over 140 more communities working with us to establish a site. Operating up until midnight each day throughout the year we responded to 80 incidents during the hours of darkness and the work we have undertaken this year, collaborating with communities as well as developing our fundraising, will see us extend our service yet further, flying until 2am in 2018. Enhanced & Critical Care Programme As part of our ‘Enhanced & Critical Care (E&CC) Programme’ the clinical team come together each month to review the treatment and care they provided to our patients. We liaise with the South Western Ambulance Service NHS Foundation Trust as well as the Acute Hospitals to which we convey patients, to confirm

that the care we provided is of the very highest quality. Importantly, we also seek to understand if our patients had any unmet needs, which are currently not available until they arrive in the hospital, that potentially we could introduce into the pre-hospital phase of their treatment.

This work helps shape our training and education programme for our doctors and paramedics including simulation training and assessment. It also helps us continually review the content of the Master’s Degree in ‘Pre-Hospital Critical Care Retrieval and Transfer’ that we work in partnership with Plymouth University to provide, not just for our

own clinical team, but for clinicians from all over the region. We continue to fund the educational and clinical development of our paramedics and doctors to help equip them with the knowledge, scope of practice and equipment to treat the needs of the patients we are called to.

Incident Type Number

2017 Medical incidents Trauma Incidents Inter-hospital Transfers

Closest hospital 67%

681 675 15

Bypassed for specialist care 33%

Trauma incidents 49% Medical incidents 50%

Patients Bypassing Closest Hospital 2017 Closest Hospital Bypassed for specialist care

Interhospital transfers 1%

Number 666 323

Development of Community Landing Sites As of the end of 2017, there were 60 operational Community Landing Sites and a further 75 sites have been identified and/or surveyed. Added to that, 58 communities are starting to identify potential sites, giving a total of 193 communities engaged in our night flying campaign. 80 HEMS deployments were carried out during the hours of darkness into these night landing sites. We are very grateful to the site owners/ managers, volunteers, Town and Parish Councils and ‘local champions’ who are supporting this initiative. Of the £1m awarded by the Treasury from the LIBOR bank fines, just over £191,000 in grant funding has been awarded to communities towards lighting solutions and/or access improvements at community landing sites.

DAAT.ORG

ANNUAL REPORT 2017

Future Plans Developing Patient Services Our service to patients is the starting point for all our plans. Everything we do follows on from how we want to expand and improve patient care. 24 hour flying Since November 2016 weâ&#x20AC;&#x2122;ve been flying until midnight. Our experience to date is that we are busier than we anticipated after dark. We want to increase availability to throughout the night by 2021. in new medical equipment to treat patients and develop the processes and infrastructure to introduce additional medication and blood products to further support our patientsâ&#x20AC;&#x2122; recovery. We also aim to continue to support the education of the clinical aircrew to extend their skills, knowledge and qualifications.

Skills and care Our patient services are informed by evidence-based decisions. We plan to continue to develop the skills of the team through a range of clinical training opportunities. This may mean developing specialist posts and investing

Aviation and Safety Our two aircraft play a vital role not just in swiftly getting patients to the right hospital for their needs but also in taking a highly trained clinical team to the patient to begin treatment as soon as possible. They too must be kept up to date along with a range of equipment from stretchers to weather stations.

Good enough is not good enough when it comes to aviation; we want to be the best! Plans include training developments, additional weather stations and ongoing work with local communities developing community landing sites. Funding Our aim by 2021 is to grow our income steadily by 36%. Based on past performance, this is realistic growth that will enable us to meet our targets for sustainable expansion of patient services and support our rolling programme of aircraft replacement and maintenance without resorting to high pressure fundraising tactics which do not fit with our values.

Replacement of G-DVAA In 2020, G-DVAA will be replaced by a new aircraft providing opportunities for further improvement to the capabilities of the service. Because we are able to plan many years ahead, this will be paid for from reserves that we have set aside each year for replacement aircraft to make sure we always have the best fleet to meet the demands on the service. Safety and management Operational plans and policy must also be continually reviewed to ensure we maintain our excellent record as an aircraft operator.

Community fundraising Our fundraising strategy is very

simple. We believe in community fundraising and at the heart of this is our Supporters Promise. We will continue to do all we can to support the people and businesses who support our service. We are placing an emphasis on the steady growth of our Lottery, community fundraising and donations, regular giving and in memoriam legacies, as well as business fundraising in the years ahead.

We want to continue to support our core events such as the Motorcycle Ride-out and Dragon Boat Festival to attract contributions from these events of up to £140,000. We’re also keen to increase the number of participants in the Commando Challenge from 1,000 to 2,000.

Getting the right support in place It’s essential that all our activity points us towards a life beyond each 5-year plan lifecycle. We achieve sustainability by maintaining our efficiency levels while supporting our growth. It is the infrastructure of our systems, tools and working environments coupled with the skills and experience of our team who are united in our vision, mission and values, that have helped enable the objectives in our last strategic plan to be met. We also plan to recruit for several roles and bring more volunteers on board to help make our vision possible. This combination of excellent personnel and robust infrastructure will help us to work towards our objectives over the next 5 years.

Enhancing our digital marketing strategy will help to support our income generation through raising our digital visibility as well as awareness of our retail and recycling activities, which we will support through a steady increase in the number of local Devon Air Ambulance charity shops.

Looking further ahead We’re keen to be transparent with our supporters about how we work to deliver our life-saving service, so please feel free to read the whole strategic plan for 2017 to 2021. Do contact us if you have any questions or if you would like to help us to achieve our aims by becoming a Devon Air Ambulance supporter.

DAAT.ORG

ANNUAL REPORT 2017

Raising the Money and Looking After Our Supporters Fundraising As a charity that receives no national or local government funding to support the delivery of its service, fundraising is essential to raise the money we need to maintain and improve our operations. We continue to actively promote and support a wide range of fundraising activities and opportunities, including our own large-scale annual events, and by helping to support community or individual events and sponsorship.

After allowing for internal costs including the allocation of staff time the event did make a loss, which had been expected for 2017.

We also actively work with around 100 local businesses and organisations who fundraise for us, including those who kindly nominated us as their ‘Charity of the Year’; in 2017, this included Liverty, British Ceramic Tile and Vapormatic

Learning lessons from 2016, the event was significantly improved in 2017 due to developing relationships between the charities, a redrawing of the course and event village and improved interactive displays. The decision was also taken not to run the 17k race in 2017, which greatly helped with transport links, communications and improvement to the overall atmosphere. In 2018, there are plans to develop the event in a number of key areas, such as expanding the event further, providing an enhanced event village experience, consideration for a child’s race/elite event etc, all of which will help to enhance the potential for growth of this event. The 10th Grand Summer Draw We were again very grateful for the support of Vospers and Mazda UK, not only for the first prize of a Mazda car, but also lending us a liveried Mazda for use at a number of events in the run up to the draw which really helped to promote and encourage the sale of tickets. In 2017, the draw was able to generated an income of approximately £41,000 (less costs of around £30,000).

Our fundraising activity would not be possible without the support of our volunteers, who carry out a number of vital fundraising tasks such as servicing our collection boxes, giving free talks about the service to local community, social and school groups, looking after our DAA stand at local events and shows, working in our retail shops or helping with general administrative tasks at Head Office. Commando Challenge October 2017 2017 saw the second year of running the Commando Challenge, in partnership with The Royal Marines Charity, after the two charities took joint ownership of the event in 2016. The event took place on the weekend of the 14th & 15th October 2017, once again with the support of Clinton Devon Estates, the Royal Marines and Pebblebed Heath Conservation Trust, who are responsible for managing, maintaining and protecting the flora and fauna of Woodbury Common. This year, the event attracted 1,091 competitors, generating income, after direct costs, of £10,000.

We are confident that while 2018 will include some final costs of taking over the event in 2016, it will continue to cover a growing share of the internal costs allocated to it and the event will start to realise a profit from 2019 onwards.

On the 25th May 2018, the new General Data Protection Regulation (GDPR) which replaces the Data Protection Act 1998 came into force. This new regulation has been created to harmonise data privacy

laws as well as give greater protection and rights to individuals. Preparations including training, and reviewing policies and processes were well underway in 2017 to ensure that we were compliant by the implementation date. As such, a decision was taken not to continue to offer a Grand Summer Draw in 2018. Under the new regulation, a charity is no long able to send out unsolicited raffle tickets to its supporters (as has been done historically through the distribution of our Helipad magazine). Tickets could therefore only be sent to supporters who had specifically requested them. Even with enhanced publicity encouraging supporters to request tickets, it was felt that this would lead to a significant drop in ticket sales and also an increase in costs due to the necessary additional administrative work. On balance, therefore, it was felt that it did not make economic sense to continue to run a Grand Summer Draw in the future. The 12th Motorcycle Ride-Out July 2017 Once again, 1,000 riders participated in our annual Motorcycle Ride-Out event in July, departing from Trago Mills, Newton Abbot, and following a scenic 80-mile route around the Devon countryside before finishing at the Den, Teignmouth for an afternoon of live music and entertainment. In 2017, the event raised in the region of ÂŁ13,000 which was sufficient to cover direct costs and the majority of the internal costs allocated. We are extremely fortunate that Bridge Motorcycles have pledged to sponsor this event for a further 3 years. In 2018, we aim to have a second starting point in Bideford, which we hope will attract more bikers to participate from the north of the county.

DAAT.ORG

ANNUAL REPORT 2017

The 4th Dragon Boat Festival – September 2017 The event took place, as usual, at Exeter Quay in September. The number of participating boats rose to 19, which contributed to this being an extremely enjoyable event for participants and spectators. It also raised approximately £21,000 for Devon Air Ambulance (less £14,000 costs).

Day, with live music, displays, food and drink. One of our helicopters was also operational from the site that day, and we staged a live emergency

demonstration in conjunction with the police and fire & rescue services. On Sunday 10th September, we held a special invitation-only ‘afternoon tea’ for our patients, current and former staff and volunteers as well as the Charity’s founder, Ann Ralli, and her family, and the Lord Lieutenant of Devon, David Fursdon. The afternoon culminated in a long service awards ceremony for our volunteers. Legacies As in 2016, the contribution to the Charity from legacies in 2017 continued to be extremely strong, contributing approximately £4.2m of income by the end of the year. While the contribution of legacies is, by its nature, difficult to accurately predict yearon-year, the sustained nature of the increase is believed to reflect the Charity’s increased profile within our communities. However, the exceptionally high level of the current year was believed to be unusually high and is unlikely to be sustained. In 2017, given the increase in legacy income and the complexities of this area of revenue generation, it was decided there was the need for additional administrative support. A part-time Legacy Officer was appointed in 2017 to work within the Finance team to provide this dedicated support. ‘Say it with Silver’ 25th anniversary celebrations To celebrate our 25th anniversary, we held a weekend of celebration at Darts Farm near Exeter. On Saturday 9th September, we hosted a Family Fun

Lottery 2017 marked 16 years since the start of our weekly in-house lottery. As at the end of the year, we had over 38,000 regular weekly lottery members and, for the first time, generated over £2m of income. We continue to use the services of our lottery canvassers within our communities to sign up new members.

Our Supporter Promise The Charity continues to be totally committed to our ‘Supporter Promise’. We have never been, and will never be, involved in cold calling, direct mailing or any form of pressure selling. We take the protection of the personal data of all our supporters and donors extremely seriously and constantly monitor and review our fundraising policies and procedures to ensure we deliver ‘best practice’ within the sector. Our Supporter Promise • We do not share or sell any of our supporters’ data, • We treat our supporters as we would wish to be treated ourselves, • The only mail we send out is our Helipad magazine (three times a year) to keep our supporters up-to-date with our activities and local interests, • We do not authorise any house-to-house fundraising or sales. The only face-to-face sales we authorise are for our in-house lottery • We do not employ third party companies to ring our supporters asking for more or to cold call.

Our Patients Ethan takes a tumble Ten-year old Ethan Horne was on holiday in Looe last August when he slipped and fell from the top of Pen Rock to the rocks below, much to the shock of his family and other holiday-makers at the scene. With Cornwall’s Air Ambulance already out on a mission, Devon’s Air Ambulance was despatched and flew to Ethan’s rescue, landing on the nearby beach. Ethan had suffered breaks to his pelvis and his right arm, as well as severe lacerations to his face. Not knowing the severity of Ethan’s head injury, the aircrew flew him directly to Derriford Hospital for further assessment and scans. He was kept in hospital for four days before heading back home to Buckinghamshire, with strict instructions not to put ANY weight down until his pelvis healed. As an outdoor child, with a love of cricket, swimming and all things sporty, his summer had definitely taken a different turn. One month later we heard from Ethan’s mum, Pippa, that Ethan was finally out of his wheelchair and, with regular check ups on his pelvis and arm, he was making very good progress, much to the relief of everyone involved.

DAAT.ORG

ANNUAL REPORT 2017

COMMUNICATIONS AND MARKETING For DAA, communications and marketing are about supporting our activities and building relationships with our community rather than hard-sell marketing to individuals. It is vital our communications are consistent with our values, our Supporter Promise and with legislation around data protection. Purposes One purpose is to support fundraising by promoting events and stories that illustrate the impact our services have for patients, their families and communities. We also need to provide supporters and the public with assurances, for example promoting our Supporter Promise, publicising the Complaints Policy or responding to topical news stories about charities that might concern people. Another is to support operational goals, for example through raising awareness of the funding we can provide for installation costs for local community landing sites. This was supported by the successful Make Night Time Flight Time campaign and this area of work continues as we look to publicise how these sites are helping us deliver even more patient services. Lastly, without good communications we would not hear from many patients as most assume we already know about them. Patients stories demonstrate just how important the service is to a county like Devon, keep us motivated and hopefully encourage others to help. Reaching out to patients and their families is an important task for our communications. team.

Strategy & Activities In 2017 we brought the fundraising and communications teams together in recognition of the significant overlap between the two activities. This has improved internal communications and provides more resilience across the team. Digital communications have become a key element of our communications strategy. They are fast, efficient and engaging. Social media is now a basic tool used by all the team. We can sign people up to our own events, for example the Motorcycle Ride-Out or signpost them to fundraising activities in their local area. We can answer queries quickly, get feedback and comments and respond to complaints. In November, the Operations team undertook a 14 hours tweetathon, tweeting from 7am in the morning. They tweeted from three locations; the HEMS (Helicopter Emergency Medical Services) dispatch desk, and both airbases.

c d f l c

9,747 likes 16,900 followers 1,682 followers 19,330 views

remain at the heart of our relationship with the people of Devon. We love to get out to the local shows and meet people face to face, usually with a mixture of volunteers, aircrew and staff. We have many volunteer speakers who give talks to groups all over the county and, of course, our wonderful volunteers assisting us in myriad ways every day of the week. In September, our 25th anniversary event was a great success, thanks to the generosity of business supporters. Local company Bitpod came on board by donating their time and experience by live streaming our emergency services demonstration on Facebook, plus producing all the graphics needed for our large screen on site, with over 5,600 views. This was a great example of how events and digital can compliment each other to have an even bigger impact. Print and traditional media are the third key area of our strategy. Helipad magazine is a fantastic way of communicating with supporters old and new. Some people have expressed concern that this is an expensive publication but it generates considerable support through new Lottery sign ups, advertising income, promotion of events and donations that over the years have proved its value.

Our website also plays a vital role in our digital communications for visitors looking for information on things like the Lottery results, events, shops and missions. In December 2017 we took the decision to bring digital marketing in-house as our knowledge and expertise has grown.

Also marking our 25th anniversary, we published an additional celebration issue of Helipad. As with the regular issues, this provided the benefits noted above plus the opportunity to thank our supporters and highlight just how far the service has come, from a 5 days a week flying ambulance to the state of the art enhanced critical care service it is today, from 7am to midnight, all year round.

Important as digital communication is, community links will always

We are very lucky to have some great local press and broadcasters

www. visits up 15%

“

Social media is now a basic tool used by all the team. We can sign people up to our own events, or signpost them to fundraising activities in their local area.

and we do our best to provide them with interesting news and stories for their readers, listeners and viewers within the limits of patient confidentiality.

2017 Summer Draw

We meet Racehorse trainer

Devon’s Castles A journey through history

Nigel Hawke Ceramics Expert

Nic Saintey

Inspiring stories of patient survival Celebrating Devon Food

Summer Stroll at

with

Richard Hunt

Mount Edgcumbe

Meet our

2017’s

Fantastic Fundraisers

Big Events

Join Our Weekly

LOTTERY

Looking ahead In 2017 we applied for, and were delighted to receive, a grant from Transform for a brand new website worth £18,000. We worked with Raising IT to create the new website which was launched in Spring 2018.

RHS Rosemoor Glorious Gardens

the oﬃcial magazine of DEVON AIR AMBULANCE TRUST

summer 2017 | www.daat.org

We continue to be supported by various local publications, at the heart of the community with a monthly column in the Torbay Times and Molton News. We are also offered various free editorial opportunities including the Dunkeswell Kart Club annual programme.

”

WIN THIS CAR CAR!

Allotment Life Quintessentially British!

See inside

Motorcycle Rideout Dragon Boat Festival Commando Challenge

Why not get involved? Andy, happily back on his bike

Devon Air Ambulance’s very own County Magazine

DAAT.ORG

ANNUAL REPORT 2017

Retail Our retail shops continue to be an important part of Devon Air Ambulance’s commitment to our local communities. Our shops not only aim to generate income but are also vital in ensuring the Charity remains a visible presence across a geographically large county. Unlike many charities, Devon Air Ambulance shops sell wholly donated stock, and we pride ourselves on offering good quality items at affordable prices. Our shops are also an important gateway through which local people engage with us, and through which we can help them with practical marketing

on a short term lease and the shop had started to make a loss. Although this decision made financial sense going forward, the closure did have a significant negative impact on contributions, particularly through the early part of the year. Additionally, associated costs were high in terms of legal expenses, not only in relation to the closure of Tiverton but also in the protracted lease renegotiations for Honiton and for the lease for our new shop in Okehampton which opened in November.

tools to support their fundraising activities. Our shops also give us a platform to strengthen the Devon Air Ambulance brand in terms of recognition and encourage recycling of unwanted items in support of a worthwhile and very well respected local charity.

Barnstaple shop within the town. This shop move was deemed necessary in order to achieve better growth and scope for expansion in the medium to longer term, but incurred significant short-term costs. In addition, we continued with the planned programme of shop refits and updating (such as installing low energy lighting in all premises and changing to a more suitable utility supply). Although it is anticipated that each shop will pay back this initial investment over a period of 3 years, there was still a significant upfront cost associated with this longer term investment.

There were a number of significant changes to our retail portfolio during 2017, some of which were not anticipated, but which impacted on the financial contribution that retail was able to make to the Charity. In March 2017, a decision was taken to close our shop in Tiverton; the premises were

During the year, we also took the decision to relocate our

Overall, while our retail operations were not able to meet budget in 2017, it was encouraging that figures for the last quarter were better than the equivalent period in 2016. By the end of 2017, overall contributions were also better than 2016 and, without the costs associated with the closure of Tiverton, retail contribution would have been on budget, although the final contribution figure just missed out on being positive by £9,000. Given the above, 2017 was therefore a challenging year in terms of overall financial

contribution from our retail operations. On a more encouraging note, however, income from sales performance was good and was 1% above target by the end of the year. In relation to gift aid, we were able to reclaim £108,000 In 2017. In 2018, with no major changes predicted (such as a shop closure) and given the anticipation that costs associated with general maintenance and redecorating will be much lower, the trend for our retail operations going forward is much more positive. It is anticipated that the financial contribution for next year will be on budget at £45,000.

â&#x20AC;&#x153;

Our shops not only aim to generate income but are also vital in ensuring the Charity remains a visible presence across a geographically large county

â&#x20AC;?

DAAT.ORG

ANNUAL REPORT 2017

Supporting Our People Our People As an organisation, the Charity has a strong and clear Vision, Mission and Values statement which is fundamental in detailing what the Charity stands for and how it plans to achieve its aims and objectives. All staff receive an induction and regular 1:1 meetings with their line manager to discuss issues relevant to their role and performance, and discuss any training needs. A weekly communications bulletin called e-news is shared electronically with all employees, trustees and aircrew, and includes regular updates on our operations, retail, HR, media, finance and fundraising, as well as a section called ‘Thumbs Up’ where individuals or groups of employees can be recognised by their managers or co-workers to highlight any particularly outstanding contribution. As well as paid staff, as at the end of 2017 we had 621 volunteers who, between them, provided invaluable support across a wide range of functions and business areas within the Charity. A dedicated Volunteer Manager is responsible for ensuring all our volunteers are well informed, trained and supported. This support includes our regular V-news publication which provides all our volunteers with news, information and important updates.

The Office Management Team (OMT)

In 2017, the Charity held a monthly staff meeting for head office staff, with alternate months held as a ‘combined’ staff meeting with all the shop managers. This meeting included updates from each business area as well as a regular ‘focus’ session to look at a specific topic of interest in more depth. Training and Development It is recognised that, in order to have the best trained staff with the appropriate skills to support the organisational needs of the Charity, it is important to have a commitment to ensure training needs are identified and supported. Where there are changes to legislation or regulations which will affect any aspect of the business i.e., GDPR, Gift Aid legislation etc, key personnel are provided with suitable training. Also, where gaps to internal knowledge and skills are identified i.e, in HR investigations, training is also provided. Management Restructuring and Strengthening In 2017, we undertook a review of the functions of each department and how they work together. In support of this, non-operational business areas were redefined as Fundraising and Communications, Finance and Infrastructure and Retail and People Development.

We also took the opportunity to strengthen the middle tier of office management in order to distribute management decision making and consultation more equitably. The Office Management Team (OMT) was created to fulfil this role and has responsibility for a number of organisational issues such as policies and procedures. OMT is also able to make suggestions for business improvement, act as a formal intermediary level of management between staff and SLT and has responsibility for general office management issues in the absence of SLT. Investing in People The Charity also considers and assesses the benefits of initiatives which have the potential to further support and develop our employees, and increase transparency, even if not mandated to do so i.e., Investors in People, reporting on the Gender Pay Gap etc. Pay and Performance At the end of 2016, the independently chaired Remuneration Committee conducted a full pay review, benchmarking each individual role to ensure they remain competitive in relation to other similar jobs within the Charity sector, private and public sector business and across the county. The recommendations

The Senior Leadership Team (SLT)

which came out of the review were approved by the board of trustees in March 2017, and subsequently implemented, thus ensuring greater clarity and consistency of pay scales across the organisation.

OMT and also to all staff. Any areas of concern are discussed with SLT and, where appropriate, specific actions or changes to current practices are made to address any issues that have been highlighted.

At the end of 2017, we also took the decision to conduct a review of the appraisal and the 1:1 processes to ensure the systems used were simple and ‘fit for purpose’, while also ensuring they were relevant and appropriate both to the needs of the individual and the organisation. The new system of appraisals and regular meetings went ‘live’ in early 2018.

In April 2017, we held our annual Away Day which was attended by staff (office, retail and pilots) as well as representatives from our paramedics, doctor and dispatch team. This is a full day of team building and general staff engagement, and gives staff who often don’t meet during the year an opportunity to learn and share ideas with each other, as well as reinforcing our mission, vision and values. The Away Day culminates in an Awards ceremony to recognise outstanding achievement, with all staff being able to vote for individuals and teams who have excelled in a number of specific categories. We also take the opportunity at this awards ceremony to recognise commitment to the Charity in terms of those individuals who have achieved long service of 5, 10, 15 and 20 years.

Listening to and acknowledging our staff A comprehensive annual Staff Survey is sent out to all staff and participation is encouraged. In 2017, 82% of staff completed the survey. The survey looks at a number of key factors, such as communication, training and development, management support, relationships with teams and colleagues, stress/work pressures etc. All responses are collated and analysed by the HR Advisor and presented to SLT,

DAAT.ORG

“

A comprehensive annual Staff Survey is sent out to all staff and participation is encouraged. In 2017, 82% of staff completed the survey

”

ANNUAL REPORT 2017

Planning to Succeed Improving Efficiency After a parallel run in 2016, 2017 marked the first year of using the new cloud based accounting system. The new cloud based purchases and payment system was also used for the Trading Company while rollout across the Trust has continued into 2018. These are expected to create long term efficiency gains while having an immediate impact in enhancing the controls, helping to decrease errors and mitigate risks. The implementation of Office 365 also begun across the organisation at the end of the year, and the use of this has expanded considerably into 2018. This will allow us to work more effectively with greater flexibility and is being taken as a good opportunity to review the processes and procedures in place, and looking to refine and improve them so they become more efficient. Administration and Support Costs Good administration has a direct impact on the Charity’s effectiveness and so remains a key area which is under constant review. Efficient administration drives informed decision making and continual improvements while mitigating risks, potentially saving further future costs by safeguarding the Charity’s assets for the ultimate beneficiaries. Every donation needs to be monitored and recorded and thousands of transactions need to be captured accurately in both our accounting system and database. This allows us not only to meet our statutory requirements such as producing the annual report, but also to help the Charity operate effectively for example by thanking our supporters and ensuring that we can support the needs of everyone fundraising on our behalf. It is important to continue to invest in administration and support to ensure that not only are current operations funded, but that the expected growth as captured in the new Strategic Plan can also be funded. This balance between cost and benefit is under constant review by the Senior Leadership Team, with Support costs as a percentage of income being a Key Performance measure. These costs have remained at 5.3% in 2017, although with legacy income expected to drop to lower levels in future years, this percentage is expected to increase. Investing in the IT infrastructure remains an important factor, particularly when cyber threat continues to grow and the cost of complying with regulations continues to increase, for example the rollout of GDPR. As with all costs, administration and support costs 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 2017 we raised £3.35.

Review of Financial Performance Performance Review This year’s financial figures have been driven by exceptionally high legacy income of £4.2m, which is greater than double the prior year and £2.7m above the budgeted £1.5m. This has made up the majority of the £3.2m surplus (£2.8m in the prior year, which was significantly boosted by the £1m of LIBOR income) and generated substantially more cash than expected. While the current free reserves are well above the target levels at yearend, expenditure is forecast to increase over the five year period of the strategic plan and this gap is expected to close significantly, with the continued growth of the Charity required to meet the strategic objectives set. Income After allowing for the one-off LIBOR receipt in 2016, income has grown by £2.7m, which is just over a third. An unusually high number of large legacies, particularly in the first half of the year, explain £2.2m of the increase, with the remainder split across the other revenue streams. Donations and funds raised by community groups were particularly strong in the 25th year of operations, generating £1.2m between them compared to £1.0m in the previous year. Retail and lottery income followed their long term growth trends, with retail income increasing by £137,000 to £1.75m and lottery up by £59,000 to £2m. The lottery growth was below budget and further growth is expected to be limited in the first half of 2018, due to the implementation of a new direct debit process. This is expected to allow stronger growth in the second half of 2018. Event income was static as the Commando Challenge continued its second year of bedding in as an event joint

owned by the Charity with the Royal Marines Charity. Expenditure Additional expenditure was budgeted for and incurred, being required to continue the growth in the service, while ensuring high standards are maintained in corporate governance and IT security in what remains a challenging environment for the wider charity sector. The most significant part of the £1.1m increase was the £1.0m in operational expenses as 2017 was the first full year for night operations while the enhanced clinical care program continued to grow as planned. The first payments were also made out from the LIBOR funds received in the prior year, with £58,000 paid out in the year (and a further £133,000 committed to by year end) with significantly more expected to be paid out in 2018. Retail costs increased by £90,000 to support the continuing growth, after support costs retail narrowly missed making a positive contribution. A positive contribution is budgeted in 2018, which is then expected to grow over the following years. Despite the increased income from lottery, costs actually fell by £106k due to the lower commission paid on new signups as the 10% growth levels of prior years slowed down during the transition to direct debit. Event costs saw an £11,000 fall as the Commando Challenge settled in, which offset the £8,000 increase in investment management fees as the investment portfolio grew, while the cost of donations and legacies grew by £100,000 to support the increased levels of revenue.

DAAT.ORG

ANNUAL REPORT 2017

Financial Position at the Year End Net assets have increased to £21,901,000 at the year end, with £4,979,000 tied up in fixed assets and £7,271,000 in long term investments.

Income

£’000

General Donations 819 Legacies 4,238 Lottery 2,009 Retail 1,750 Other 25 Funds Raised by Community Groups 770 Events 91 Investment income and interest 173

This leaves £9,651,000 of net assets to fund ongoing operations, short term maintenance and repair costs, maintaining and improving the infrastructure and the continuing enhancement of the service. The Trustees remain mindful of the importance of monitoring generating significant financial resources to continue operations, particularly with the uncertainty and fluctuations inherent within specific income streams, for example most noticeably in legacy income.

Events Investment Income & Interest

<1%

Other

General Donations

<1% Funds Raised by Community Groups

8% Retail

18%

12%

OM NC

Legacies

43% 20%

Lottery

20%

Generating donations & legacies

XPEN

TUR DI

Funds retained for future service enhancement

32%

Generating lottery income

Generating retail income

18%

Generating events income

Investment management costs

<1% Operations

38%

Expenditure

£’000

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

674 397 1,759 118 50 3,760 3,216

A summary and breakdown of the funds which have been retained as at the end of the 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 5 years, and the enhancement of the service in line with the 5 year Strategic Plan.

£9,586,000

£2,830,000 Income from fundraising (including retail and lottery) Costs of fundraising, retail and lottery

DAAT.ORG

ANNUAL REPORT 2017

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 in the event of 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 £21,901,000 and free reserves of £9,207,000 comfortably exceeded the £142,000 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 from 2018, while legacy income is expected

to drop significantly in 2018. Forecasts over the 5 year Strategic plan predict that this gap between the target and actual free reserves will start to close and the figures converge. Designations & Restricted Income The free reserves discussed above are calculated after deduction of restricted and designated funds, which are explained in detail in note 19 of the accounts. The main restricted fund relates to the £1,000,000 awarded from the LIBOR funds in 2016, of which £191,000 was paid in the year (or was due to be paid at year end), as grants to local communities supporting them in establishing the Community Landing Sites which are required to assist and expand our Night Flying operations. £122,000 remains of restricted funds received in 2015 to establish Night Flying Operations were loaned to and spent on capital items in the Trading Company. The restricted reserve is reduced

as the depreciation is charged back to the Trust. Two grants of £6,000 and £17,000 were received from the Grace Trust and the Gawthorn Cardiac Trust to fund part of the purchase of three defibrillators and a Lucas 3 chest compression system, while The Eaton Corporation provided a grant of £11,000 to improve the lighting at the Eaglescott Airbase and the Moretonhampstead and District League of Friends donated £35,000 to enable the purchase of three ventilators. None of these restricted funds had begun to be utilised at the year end. A legacy receipt of £65,000 was also accounted for in the year with the stipulation that it was used to fund the Eaglescott operations. A further balance is receivable on finalisation of the estate. The most significant designation is the £5,607,000 for the helicopter replacement now due in 2020, with a total of £873,000 also designated for helicopter maintenance, and £235,000 for key manager cover.

Reserves

£’000

Restricted – Night Flying Restricted – Community Landing Sites Restricted – Grace Trust Restricted – Gawthorn Cardiac Trust Restricted – Moretonhampstead Restricted – Eaton Corporation Designated – Helicopter maintenance Designated – Helicopter replacement Designated – Key Manager Cover General – held as fixed assets Free Reserves

122 809 6 17 35 11 873 5,607 235 4,979 9,207

ASSETS HELD 2016

£’000

Fixed assets 5,730 Investments 4,037 Current investments 6,244 Other Net Assets 2,674

Other net assets 14%

Fixed assets 4,979 Investments 7,271 Current investments 7,125 Other Net Assets 2,526

Other net assets 12%

Fixed assets 31% Current Investments 33%

16 20

Fixed assets 23%

17 20

Investments 22%

Investments 33%

Restricted – Night Flying

Restricted – Community Restricted – Landing Sites Grace Trust

Restricted – Gawthorne Cardiac Trust

<1%

Restricted – Moretonhampstead

<1% Restricted – Eaton Corporation

<1% Designated – Helicopter

maintenance

ER ES V

Current Investments 33%

£’000

ASSETS HELD 2017

Designated – Helicopter replacement

25%

Designated – Key Manager Cover

Free Reserves

42%

General – held as fixed assets

23%

DAAT.ORG

ANNUAL REPORT 2017

Financial Risk Management Aligning the cash resources held to the requirements of the reserves policy and future designations and investments is the key objective of managing the financial risk. The cash balances, forecast cash flows and their relationship with restricted, designated and free reserves are monitored regularly and reviewed quarterly by the Finance Committee. The most significant exposure is to price risk relating to non-current investments, which is why the Trustees have set an investment policy which does not embrace any more risk than a lowest medium risk investor and utilises Francis Clark Financial Planning to oversee the investment manager. Investment Powers Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees wish. Investment Policy A strict investment mandate is in place with Kleinwort Hambros and monitored by Francis Clark Financial Planning, and is in line with a detailed Investment Policy. This Policy has been reviewed in detail during the year, with the objective being refined to achieving a total return broadly in line with inflation (as measured by CPI) so as to retain the real value of the capital’s purchasing power. The Trustees are averse to capital volatility and aim not to embrace any more risk than a low risk investor. Where this approach is not sufficient to meet the objectives, risk may be increased but only up to the level which reflects a lowest medium risk investor, A diversified geographical and asset class mix of assets is permitted, although high risk assets such as derivatives must only make up a small portion of the portfolio and be used for portfolio management rather than speculation.

Investments Investment gains of £99,000 (of which £225,000 related to realised gains, partly offset by unrealised losses of £126,000) have contributed to the surplus in the year, continuing the trend set in 2016 where a £281,000 gain was made. 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 Hambros and provide independent feedback to the Board who also monitor the performance in line with their expectations and have direct contact and feedback from Kleinwort Hambros. Investment income has continued to grow, increasing from £136,000 to £173,000 following the increase in cash which has resulted in an additional £3,000,000 being invested into the portfolio near the end of the year, following the unexpectedly high levels of legacy income in the year. 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 have reviewed Kleinwort Hambros’s approach and policies relating to social investment, and concluded that they are sufficient to meet the expectations of DAA.

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 and expertise of both charities and ambulance service to come together to best meet patient need. Budgets with all NHS organisations remain 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 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.

Other Factors in Achievement of Objectives 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 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. 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 the 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.

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.

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 despatch 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.

Achievements There was further success at the AAA awards of excellence in 2017 as Caroline Creer, our Director of Fundraising and Communications, won the prestigious Chairman’s Award. This award was earned through Caroline’s long-running commitment to and contribution to the AAA, benefiting both the Association and this Charity, and demonstrating the high standard of management in place within the Charity.

DAAT.ORG

ANNUAL REPORT 2017

Structure Governance & Management Governance Devon Air Ambulance Trust (DAAT) was formed in 1991 in order to raise and receive funds to provide an emergency response ambulance service primarily in the county of Devon. It became an incorporated company, limited by guarantee, on the 30th September 1999 and is governed by its Memorandum and Articles of Association dated 29th September 1999. 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 remain up-todate, relevant and complete. Appointment of Trustees The Board of Trustees is made up of independent members, who undertake the role on a voluntary basis, and who bring a broad range of professional skills and experience to the Charity. Nominations may be received from another trustee, a member of staff or as the result of a direct approach from the individual concerned. 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 being formally appointed, all new trustees are provided with a Trusteesâ&#x20AC;&#x2122; Handbook, and undertake an 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, the strategic plan and the most current financial information contained with the Annual Report and Accounts. During their induction, new trustees meet with the Senior Leadership Team and other key employees within the Charity to learn more about each business area and their individual roles and responsibilities. Trustees are also invited to visit the airbases to meet with the aircrew and paramedics to see the operational delivery at first hand. A governance and trustee training day, delivered annually in November by an external professional, is provided for all new trustees and as a refresher for existing trustees.

Trustees who served during 2017 Stephen Tyrrell

Barry Cole

Tony Noon

Anita Newcombe

Margaret Davies

Mark Williams

Dr Anthony Hudson

Rachel Short

Richard Plunkett

Alison Upton

“

During their induction, new trustees meet with the Senior Leadership Team and other key employees within the Charity to learn more about each business area and their individual roles and responsibilities.

”

Charity Governance Code The new Charity Governance Code which was published in the year has been applied. The majority of the recommended practice was already in place before the new Code was published, while the few variances from the recommended practice

are being considered as part of a governance review being carried out from 2018.

which does not currently include an external evaluation every three years.

This review will include the recruitment and diversity of trustees (vacancies are not currently advertised widely), and the Board performance review

The Board is satisfied that the current processes do not create any significant risks including poor performance in the period up to completion of the review.

Structure of the Organisation The Board of Trustees administers the Charity. There are five committees (PR & Fundraising, Human Resources, Finance, Operations and Remuneration) which report into the main board. The committees and main board meet four times a year. Additional meetings can be held as and when required and ad hoc working parties can also be formed to address specific and/or time-critical strategic issues. Trustees are appointed for an initial term of three years with the option for this to be extended by a further term of three years. The maximum 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 holding office. Trustee 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 Executive’s authority are clearly defined within the Scheme of Delegation referred to above.

DAAT.ORG

ANNUAL REPORT 2017

Principal Risks and Uncertainties Risk Management 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 Charity’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 Charity’s internal financial controls conform to Charity Commission guidelines. Currently, the most significant risks defined by the trustees are: a. risk of strike action, or breakdown of relationships with the medical authorities (who are relied on to operate the service); b. the reputational and financial damage caused by fraud, particularly in relation to cyber fraud; and c. the impact of the departure of senior staff creating a skills gap in the Trust. To mitigate these risks, significant management time is invested in managing the relationship with medical authorities, while staff training on cyber fraud has increased significantly over the last two years. The Remuneration Committee is in place to ensure Senior Management pay is under regular review. 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.

“

The trustees review the adequacy of the Charity’s current financial controls on a regular basis

”

Statement of Trustees’ Responsibilities The Trustees (who are also directors of Devon Air Ambulance Trust for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of 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 PKF Francis Clark as auditors for the ensuing year was proposed at the June 2018 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 28 June 2018

DAAT.ORG

ANNUAL REPORT 2017

Independent Auditor’s Report to Trustees Opinion We have audited the financial statements of Devon Air Ambulance Trust (the “Charity”) for the year ended 31 December 2017 which comprise the Group Statement of Financial Activities, Group and Parent Company Balance Sheets, Statement of Consolidated Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or •

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

In our opinion, the financial statements: •

give a true and fair view of the state of the Group’s and Charity’s affairs as at 31 December 2017 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; • have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Use of our Report This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: •

the information given in the Trustees’ Report, (which includes the Strategic Report and Directors’ Report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: •

an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc. org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or STEPHANIE HENSHAW FCA (Senior Statutory Auditor) For and on behalf of PKF FRANCIS CLARK Chartered Accountants & Statutory Auditor Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

• the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not obtained all the information and explanations necessary for the purposes of our audit. Responsibilities of the Trustees As explained more fully in the Statement of Trustees’ Responsibilities set out on page 35, the trustees (who are also the directors of the charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

DAAT.ORG

ANNUAL REPORT 2017

Consolidated Statement of Financial Activities

(including income & expenditure account) for the year ended 31 December 2017 Unrestricted Restricted Total Total Funds Funds Funds Funds Notes 2017 2016 £’000 £’000 £’000 £’000 Income Donations and legacies

5,693

134

5,827

3,376

Trading activities: Retail operations 4 1,750 - 1,750 1,613 DAAT Lottery 4 2,009 - 2,009 1,950 DAAT Events 4 91 - 91 92 Investment income 5 173 - 173 136 Income from charitable activities 6 25 - 25 Other income 6 - - - 1,000 Total income 9,741 134 9,875 8,167 Expenditure Donations and legacies 674 - 674 574 Trading activities: Retail operations DAAT Lottery

4/7 4/7

1,759 397

- 1,759 1,669 - 397 503

DAAT Events 4/7 118 - 118 129 Investment management costs 7 50 - 50 42 Expenditure on charitable activities 7 3,424 336 3,760 2,770 Total expenditure 6,422 336 6,758 5,687 Net gain on investments 99 - 99 281 Net income for the year 8 3,418 (202) 3,216 2,761 Transfers between funds - - - Net movement in funds 3,418 (202) 3,216 2,761 Reconciliation of funds Total funds brought forward 17,483 1,202 18,685 15,924 Total funds carried forward

20,901

1,000

21,901

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 41 to 50 form part of these accounts.

18,685

Consolidated Balance Sheet 31 December 2017

Group Group Company Company 2017 2016 2017 2016 Notes £’000 £’000 £’000 £’000

Fixed Assets Tangible assets 13 4,979 5,730 704 760 Investments 14 7,271 4,037 7,271 4,037 Total Fixed Assets 12,250 9,767 7,975 4,797 Current Assets Stocks 15 20 21 11 13 Debtors 16 2,942 2,769 7,172 8,032 Investments 14 7,125 6,244 7,125 6,244 Cash at bank and in hand 17 788 435 280 354 Total Current Assets 10,875 9,469 14,588 14,643 Liabilities Creditors falling due within one year 18 (1,224) (551) (852) (755) Current assets less current liabilities 9,651 8,918 13,736 13,888 Net assets 21,901 18,685 21,711 18,685 The Funds of the Charity Restricted income funds 19 1,000 1,202 1,000 1,202 Unrestricted income funds: General 19 14,186 11,352 13,996 11,352 Designated 19 6,715 6,131 6,715 6,131 Total unrestricted income funds 20,901 17,483 20,711 17,483 Total Charity funds 21,901 18,685 21,711 18,685

The Trustees have prepared group accounts in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. Approved by the Trustees of Devon Air Ambulance Trust on 28 June 2018 and signed on its behalf

Stephen Tyrrell Chair Company registered number 3855746

The notes on pages 41 to 50 form part of these accounts.

DAAT.ORG

ANNUAL REPORT 2017

Consolidated Statement of Cash Flows 31 December 2017

2017 2016 £’000 £’000 £’000 £’000

Net cash inflow from operating activities 4,228 1,491 (note below) Cash flows from investing activities: Income from current investments 139 103 Dividends & interest from non-current investments 34 33 Proceeds from sales of investments 4,920 913 Purchase of investments (8,055) (997) Purchase of property, plant & equipment (32) (459) Net cash used in investing activities (2,994) (407) Increase in cash and cash equivalents in the year 1,234 1,084 Cash and cash equivalents 1/1/17 6,679 5,595 Cash and cash equivalents 31/12/17 7,913 6,679 Note Reconciliation of net cash inflow from operating activities

Net income for the year 3,216 2,761 Depreciation charges 783 742 Gains on investments (99) (281) Loss on fixed assets - - Income from investments (173) (136) Decrease in stocks 1 4 Increase/(Decrease) in creditors 673 (197) Increase in debtors (173) (1,402) Net cash inflow from operating activities 4,228 1,491

Analysis of cash and cash equivalents 1 Jan 2017 Cash flows 31 Dec 2017 £’000 £’000 £’000 Cash in hand and at bank 435 353 788 Current investments 6,244 881 7,125 Total cash and cash equivalents

6,679

1,234

7,913

Notes to the Accounts 1. Accounting Policies Basis of Preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared under the historic cost convention as modified by fair value where appropriate. The Trustees have considered and concluded that it is appropriate to complete the accounts on a going concern basis . The Charity is a public benefit entity and is registered in the United Kingdom. The registered address is included on page 51. The functional currency used in these accounts is Sterling, which is also the transactional currency. The Group financial statements consolidate the results of the Charity and its wholly owned trading subsidiary. A separate Statement of Financial Activities and income and expenditure accounts for the Charity has not been presented as the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The Trustees have concluded that the only significant management judgement and key area of estimate or uncertainty is the recognition of legacy income as detailed below. Income Recognition Policies Voluntary income including donations, legacies, and lottery sales that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. For legacy income, entitlement is taken as the earlier of the date: when the charity becomes aware that probate has been granted; when the estate has been finalised and notification made by the executors that a distribution will be made; or when the distribution is received. Income from commercial trading activities is recognised as earned as the related goods and services are provided. Investment income interest is recognised on a receivable basis. Volunteers and Donated Services The value of services provided by volunteers is not incorporated into these financial statements. Further details can be found in the Trusteesâ&#x20AC;&#x2122; Annual Report on page 22. Donated services are recognised as income when control is obtained over the item, the receipt of economic benefit is probable and it can be measured reliably. Expenditure Expenditure is recognised when there is legal or constructive obligation to make a payment, settlement to a third party is probable and the amount can be measured reliably. Contractual arrangements are recognised as goods or services are supplied. Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds. Charitable activities include expenditure associated with the operation of the two helicopters, airbase facilities and medical equipment. SWASFT have historically paid 4/5th of the salaries of ambulance staff aircrew and for drugs and medical consumables with all other costs are met by the Charity. This has changed during 2017 with the Charity now funding 2/3rds of the staffing costs and half of the medical consumables and drugs by year-end. 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.

DAAT.ORG

ANNUAL REPORT 2017

Notes to the Accounts 1. Accounting Policies Tangible Fixed Assets Individual fixed assets costing ÂŁ1,000 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

Annual rate

EC135 Helicopters Helicopter factory fitted role equipment Helicopter medical equipment Long leasehold buildings Short leasehold improvements Office equipment & furniture IT equipment

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

Investments Investments are carried at fair value. Where there is a quoted market value they are valued at the bid price ruling at the Balance Sheet date. Other investments arevalued 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 seven restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose. All other funds are unrestricted income funds. Pensions The Charity makes a contribution of 6% of salary for each employee to a personal pension scheme which is compliant with the auto enrolment regulations which became applicable to the Charity from October 2015. Employees pay a minimum of 2% of salary into this scheme unless they have opted out of the scheme. Financial Instruments Classification The company holds the following financial instruments: - Short term other debtors, legacies receivable and amounts due from subsidiary undertakings; - Cash and bank balances; and - Short term trade creditors and other creditors; All financial instruments are classified as basic. Recognition and measurement: The company has chosen to apply the recognition and measurement principles in FRS102. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the asset expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of the liabilities, when the companyâ&#x20AC;&#x2122;s obligations are discharged, expire or are cancelled. Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

2. Legal Status of the Trust

The Trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to ÂŁ10.

Notes to the Accounts 3. Donations and Legacies

Unrestricted Restricted Total Funds Total Funds Funds Funds 2017 2016 £’000 £’000 £’000 £’000

Donations and legacies Legacies 4,173 65 4,238 2,021 Donations incl. ‘in memory’ and anniversaries 412 46 458 402 Regular giving schemes 56 - 56 49 Charitable Trust donations 85 23 108 44 Funds raised by community groups 770 - 770 676 Schools and youth organisations 14 - 14 8 Box and street collections 183 - 183 176 Total donations and legacies 5,693 134 5,827 3,376 In 2016 none of the income from donations and legacies was restricted.

4. Trading Activities

Unrestricted Restricted Total Funds Total Funds Funds Funds 2017 2016 £’000 £’000 £’000 £’000

Shops & Merchandise Trading Sales 1,750 - 1,750 1,613

Cost of goods sold 7 - 7 6 Overheads and expenses 1,653 - 1,653 1,545 Support costs 99 - 99 118 1,759 - 1,759 1,669 Contribution to the Charity’s funds (9) - (9) (56) Lottery Sales 2,009 - 2,009 1,950

Prizes 111 - 111 113 Overheads and expenses 239 - 239 312 Support costs 47 - 47 78 397 - 397 503 Contribution to the Charity’s funds 1,612 - 1,612 1,447 Total trading income 3,759 - 3,759 3,563 Total trading expenditure 2,156 - 2,156 2,172 Total trading contribution 1,603 - 1,603 1,391

DAAT events are not included within trading activities as the primary purpose of some events is to promote the Charity and its activities rather than to generate income. DAAT events have cost £27,000 in the year (2016: £37,000 cost).

DAAT.ORG

ANNUAL REPORT 2017

Notes to the Accounts 5. Investment Income

Unrestricted Restricted Total Funds Total Funds Funds Funds 2017 2016 £’000 £’000 £’000 £’000

Bank deposit accounts 34 - 34 33 Income from investments 139 - 139 103 173 - 173 136

6. Other Income and Income from Charitable Activities Income from charitable activities represented a payment received to fund staff time to release a Specialist Paramedic in Critical Care to deliver simulation training internally and also to external hospital teams. Other income in 2016 included £1,000,000 received from the LIBOR fine fund towards community landing sites.

2016

2017

Investment Costs

Helicopter Costs

Lottery

Shops

DAAT Events

Community Fundraising

Donations

7. Total Resources Expended

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Costs directly allocated to activities Charitable activities - - - - - 3,680 - 3,680 2,710 Direct fundraising 11 5 - - - - - 16 14 Events - 8 45 - - - - 53 67 Retail dept selling & premises - - - 761 - - - 761 744 Retail dept staff related - - - 862 - - - 862 807 DAAT lottery prizes - - - - 111 - - 111 113 DAAT lottery selling & admin - - - - 209 - - 209 312 Volunteer support and expenses - 20 1 8 1 - - 30 32 Fundraising dept 6 17 1 - 1 - - 25 33 Fundraising dept staff related 75 125 16 4 11 - - 231 216 Legacy costs 6 - - - - - - 6 PR & marketing dept 37 62 19 18 16 - - 152 111 PR & marketing dept staff related 18 17 15 6 1 1 - 58 57 Investment management costs - - - - - - 42 42 39 Support costs allocated to activities Staff related 74 103 15 80 20 56 8 356 243 HQ premises 10 17 3 6 2 13 - 51 35 Stationery & mailing 3 10 - 2 - - - 15 14 IT, communications & equipment 12 21 3 8 2 5 - 51 59 Insurances 2 1 - - 3 - - 6 5 Finance 1 3 - 2 - - - 6 13 Irrecoverable VAT 1 4 - - 19 - - 24 40 Legal & professional fees 2 3 - 2 1 5 - 13 23 Total expenditure 258 416 118 1,759 397 3,760 50 6,758 5,687

A fixed asset write-off took place in 2015 of the remaining £142,000 book value of expenditure relating to the Exeter Airport lease agreement. This initial expenditure was made in return for a rent free period up to June 2023 which remains in place. £41,000 of the expenditure on charitable activities in 2016 related to restricted expenditure.

8. Net Income for the Year 2017 2016 £’000 £’000 Net income for the year is stated after charging: Operating leases – vehicles 30 37 Depreciation 783 742 Auditor’s remuneration – audit services 6 6 Auditor’s remuneration – Non-audit services 6 6

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

2017 2016 £’000 £’000

Wages and salaries Social security costs Pension costs Total staff costs

2,010 189 120

1,776 162 103

2,319

2,041

During the year eight employees were paid £60,000 or more (2016: six, one in the Trust and five in the Trading Company), one in the Trust and seven in the Trading Company. The numbers of staff receiving emoluments, which include pension contributions, in the following bands are as follows: 2017 2016 £60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000

6 2 -

4 1 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 which increased to 2% in October 2016, unless the individual has opted out of the scheme. The Group Personal Pension provider is Royal London, and during the year a total of £120,000 was paid into the Scheme by the Trust and £35,000 by the employees. A balance of £14,000 was due to the Scheme at the end of the year. b) Trustee Remuneration and Expenses During the year the Charity Trustees received no (2016: £nil) remuneration or expenses from the Trust or its subsidiary. During the year the Charity paid indemnity insurance totalling £888 (2016 - £770). 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 £276,210 (2016: £246,539).

DAAT.ORG

ANNUAL REPORT 2017

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 £460,173 (2016:£426,174). 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.

10. Staff Numbers The average monthly head count was 79 staff (2015: 75 staff) and the average monthly number of full-time equivalent employees during the year were as follows: 2017 2016 Number Number Administration 11 10 Charity shops 37 37 Fundraising and other charitable work 7 7 Operational staff employed in Trading Company 9 9

By the end of 2017 we had 621 (2016:518) 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 £1,011,000). Alison Upton was a Trustee of DAAT during the year and was an employee of Santander when the initial balance was transferred, 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.

13a. Tangible Fixed Assets - Group Helicopter Equipment Fixtures & Leasehold Total Fittings Property £’000 £’000 £’000 £’000 £’000 Cost At 1 January 2017 8,232 79 314 1,068 9,693 Additions 30 2 - - 32 At 31 December 2017 8,262 81 314 1,068 9,725 Depreciation At 1 January 2017 3,261 75 297 330 3,963 Charge for the year 725 3 8 47 783 At 31 December 2017 3,986 78 305 377 4,746 Net Book Value At 31 December 2017 4,276 3 9 691 4,979 At 31 December 2016

4,971

738

5,730

13b. Tangible Fixed Assets - Company Equipment Fixtures & Leasehold Total Fittings Property £’000 £’000 £’000 £’000 Cost At 1 January 2017 79 314 1,063 1,456 Additions 2 - - 2 At 31 December 2017 81 314 1,063 1,458 Depreciation At 1 January 2017 75 295 326 696 Charge for the year 3 8 47 58 On disposals - - - At 31 December 2017 78 303 373 754 Net Book Value At 31 December 2017 3 11 690 704 At 31 December 2016

737

760

14. Investments - Group and Company 2017 2016 £’000 £’000 Fixed asset investments Investments at market value At 1 January 2017 4,037 3,673 Additions 8,055 997 Disposals (4,920) (913) Unrealised (loss)/gain (126) 285 Realised gain/(loss) 225 (5) At 31 December 2017 7,271 4,037 Current asset investments HSBC Deposit Account 2,105 3,233 Kleinwort Hambros 92 day notice account 4,009 1,001 Nationwide deposit account - 1,005 Santander 95 day notice account 1,011 1,005 7,125 6,244

DAAT.ORG

ANNUAL REPORT 2017

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

2017 2016 £’000 £’000

Fixed assets 4,276 4,971 Current assets 1,046 665 Current liabilities (1,549) (1,364) Long term loan (3,585) (4,272) Aggregate share capital and reserves 188 A summary of its results is as follows: Turnover 3,871 3,069 Expenditure (3,506) (2,790) Amount gift aided to Charity (177) (279) Profit for the year 188 -

15. Stock

Group Group Company Company 2017 2016 2017 2016 £’000 £’000 £’000 £’000 Stock 20 21 11 13

16. Debtors - current

Group Group Company Company 2017 2016 2017 2016 £’000 £’000 £’000 £’000

Legacies receivable 1,273 988 1,273 989 Other debtors 96 117 44 43 Prepayments 573 664 463 616 LIBOR income 1,000 1,000 1,000 1,000 DAA Trading Co Ltd (due within one year) - - 808 811 DAA Trading Co Ltd (due after more than one year) - - 3,584 4,376 DAA Trading Co Ltd gift aided donation - - - 197 2,942 2,769 7,172 8,032

17. Cash at Bank and In Hand

Group Group Company Company 2017 2016 2017 2016 £’000 £’000 £’000 £’000

HSBC bank accounts 560 152 52 71 National Westminster 70 75 70 75 Investment Manager account 158 208 158 208 788 435 280 354

18. Creditors: Amounts falling due within one year

Group Group Company Company 2017 2016 2017 2016 £’000 £’000 £’000 £’000

Trade creditors 750 208 417 437 Lottery entry monies received in advance 215 223 215 223 Taxation and Social Security 68 47 32 29 Other creditors 152 15 164 9 Accruals 39 58 24 57 1,224 551 852 755

19. Analysis of Funds - Group Balance at Incoming Resources Transfers Balance at 1 Jan 2017 resources expended & 31 Dec 2017 losses £’000 £’000 £’000 £’000 £’000 Unrestricted income funds Designated funds † Helicopter Replacement 5,183 - - 424 5,607 Helicopter Maintenance 730 - - 143 873 Key Manager Cover 218 - - 17 235 6,131 - - 584 6,715 General funds 11,352 9,840 (6,422) (584) 14,186 Total unrestricted funds 17,483 9,840 (6,422) - 20,901 Restricted income funds ‡ Night Flying 202 - (80) - 122 Community Landing Sites 1,000 - (191) - 809 Eaglescott Operations - 65 (65) - Grace Trust - 6 - - 6 Gawthorn Cardiac Trust - 17 - - 17 Moretonhampstead - 35 - - 35 Eaton Corporation - 11 - - 11 1,202 134 (336) - 1,000 18,685 9,974 (6,758) - 21,901

† 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 2016 balance was calculated as the estimated costs of a severe but realistic repair scenario, and up to date figures have been obtained for the 2017 calculation.

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 2016 this has been based on 35% of the annual salaries of staff identified as key management.

General

The available reserves after allowing for all designations.

‡Description, nature and purpose of restricted funds Night Flying

The LIBOR funds provided in 2015 to set up the night flying operations. This money has been used in the Trading Company and the restricted funds are reduced by the monthly depreciation charge relating to the assets as it is charged back to the Trust.

DAAT.ORG

ANNUAL REPORT 2017

Community Landing Sites

A further £1m in LIBOR funds was confirmed in 2016. Community organisations have applied for funds to assist them in setting up a community landing site for use at night, and as grants tthese organisations are approved by the Charity these amounts are drawn from the £1m fund and paid on through DAA.

Eaglescott Operations

Part of a legacy was received in the year with a stipulation that it was used specifically for the benefit of the Air Ambulance based at Eaglescott. A further balance is expected in 2018 on finalisation of the estate accounts.

The Grace Trust

This balance was one of two grants provided to fund part of three defibrillators and a Lucas 3 Chest Compression System.

The Gawthorn Cardiac Trust

This was the second grants provided to fund part of three defibrillators and a Lucas 3 Chest Compression System.

Moretonhampstead

The Moretonhampstead and District League of Friends donated £35,000 to enable the purchase of three ventilators.

Eaton Corporation

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

20. Analysis of Net Assets between Funds - Group

General Designated Restricted Total at 31 Income Funds Funds Dec 2017 £’000 £’000 £’000 £’000

Fixed Assets Investments Bank Fixed Term Deposit Accounts Current Assets Current Liabilities Liabilities due after more than 1 year

4,979 - - 4,979 - 6,715 556 7,271 7,469 - 444 7,913 2,962 - - 2,962 (1,224) - - (1,224) - - - -

14,186

6,715

1,000

21,901

21. Operating Lease Commitments

2017 2016 Land and Other Land and Other buildings items buildings items £’000 £’000 £’000 £’000

Operating leases which expire: within one year 313 34 85 10 within two to five years 488 23 652 46 after more than five years - - - 801 57 737 56

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

Group Group Company Company 2017 2016 2017 2016 £’000 £’000 £’000 £’000 9,640

6,142

13,980

11,452

1,133

446

796

669

Legal and Administrative Information for the year ended 31 December 2017 Patrons Mary King MBE Lady Penny Mountbatten Jennie Bond David Fitzgerald Adam Isaac Sam Hill Trustees who served during the year Anita NEWCOMBE (completed term 18 May 2017) Barry COLE Alison UPTON (resigned 26 April 2017) Stephen TYRRELL (Chair from 18 May 2017) Richard PLUNKETT Rachel SHORT Tony NOON Dr Anthony HUDSON (appointed 23 March 2017) Mark WILLIAMS (appointed 23 March 2017) Margaret DAVIES (appointed 28 September 2017)

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

•• •

•

• •

Senior Leadership Team Heléna HOLT Chief Executive Caroline CREER Deputy CEO /Fundraising & Communications Director David HAWES Finance & Infrastructure Director Nigel HARE Operations Director Ian PAYNE Flight Operations Director Martin BELL Retail & People Development Director Principal Address & Registered Office Devon Air Ambulance Trust Unit 5 Sandpiper Court Harrington Lane Exeter EX4 8NS Bankers HSBC Bank plc 250 High Street Exeter EX4 3PZ Solicitors Foot Anstey LLP Senate Court Southernhay Gardens Exeter EX1 1NT Chartered Accountants & Statutory Auditor PKF Francis Clark Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE Investment Manager Kleinwort Hambros 8 St James’s Square London SW1Y 4JU

DAAT.ORG

ANNUAL REPORT 2017

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

cdf Devon Air Ambulance Trust is the charity that funds and operates Devon’s air ambulance service. Devon Air Ambulance Trust is a company limited by guarantee no. 03855746 and a registered charity no. 1077998. Acronyms AAA AOC CLS CPR DAAT DAATCL E&CC EPOS HEMS IHT LIBOR NPAS OMT PBH RD&E RMCTF RTC SBH SLT SOP SORP SWASFT

Association of Air Ambulances Air Operator’s Certificate Community Landing Site Cardiopulmonary Resuscitation Devon Air Ambulance Trust Devon Air Ambulance Trading Company Limited Enhanced and Critical Care Electronic Point Of Sale Helicopter Emergency Medical Service Inter-hospital Transfer London Interbank Offered Rate National Police Aviation Service Office Management Team Power By the Hour Royal Devon & Exeter Hospital Royal Marines Charitable Trust Fund Road Traffic Collision Service By the Hour Senior Leadership Team Standard Operating Procedure Statement of Recommended Practice South Western Ambulance Service NHS Foundation Trust

Statutory Notice The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). Accreditations Design Silver Foxes Publishing 07455 206470 Images DAAT expresses its gratitude to all supporters and photographers that have supplied free to use images to the charity and acknowledges copyright in their use. © All rights reserved. No part of this report may be reproduced or used in any form without prior permission of the publishers

DAAT.ORG

ANNUAL REPORT 2017

Community Landing Sites 2017 60 Operational Community Landing Sites 75 Sites Identified or Surveyed 58 Communities Identifying Potential Sites

Operational Community Landing Sites Sites Identified or Surveyed

Devon Air Ambulance Trust

is a company limited by guarantee no. 03855746 and a registered charity no. 1077998