## **NORTH WEST AIR AMBULANCE** 

## **TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS** 

**For the year ended 31 March 2021** 

Flying to save lives 



## **NORTH WEST AIR AMBULANCE** 

||Page|
|---|---|
|Chairman’s introduction and review of activities|1 - 2|
|Legal and Administrative details|3 - 4|
|Trustees Report|5 – 22|
|Independent auditors' report|23 – 25|
|Consolidated Statement of Financial Activities|26|
|Balance Sheets|27|
|Consolidated cash flow statement|28|
|Notes to the Financial Statements|29 - 49|





**NORTH WEST AIR AMBULANCE CHAIRMAN’S INTRODUCTION AND REPORT AND REVIEW OF ACTIVITIES** 

A warm welcome to our annual review. This has been a challenging year for the North West Air Ambulance Charity, as we, like others, have suffered from months of disruption caused by the pandemic. Relying mainly on public and corporate support to raise £9.5m year, the amount it takes to remain operational, the pandemic has had a severe impact on the organisation: store closures, cancelled fundraisers and postponed events have seen funds dip significantly. 

However, I’m exceptionally proud to say that in the face of these uncertain times, our amazing employees, crew, supporters and volunteers, have successfully rallied and come together to ensure that we have been able to remain operational, and continued to make a lifesaving impact, 365 days a year. 

As the team here at the North West Air Ambulance Charity has been circum-navigating this pandemic, they have consistently demonstrated real resilience and optimism. Our people are passionate about saving lives and make a lifesaving difference, and this has motivated us all to keep going in the face of adversity. Their dedication and commitment has been truly inspiring. 

Not only did we continue our normal operations during the Covid-19 pandemic, we were also quick to modify our service to reflect this changing landscape. Demonstrating how we can adapt in a national crisis, we extended our operation, in partnership with the North West Ambulance Service. 

This collaboration provided an inter-hospital transfer for critically ill Covid-19 patients, so that they could be quickly and safely transferred to hospitals with greater available ICU resource. Importantly, this utilised the incredible skills of our HEMS paramedics, who have specific additional training to enable them to assist medical staff with critically ill patients. They are also accustomed to working in doctor-led teams, are familiar with specialist equipment and are experts in the pre-hospital environment – including safe transfer between hospitals. Our nimble approach, and dedication of our crew, ensured key frontline NHS resource could be retained in hospital setting, where it was most needed. 

The patient is at the heart everything we do. As part of our plan to deliver the most enhanced pre-hospital interventions to improve patient outcomes, we follow an evidence-led approach. Working with our strategic partners (both clinical and academic) we continued to innovate and focus on the ‘art of what is possible’, and what more can be done at scene to make a lifesaving impact. Despite the current climate we have not stopped progressing, or looking to the future, and continue to implement our strategic plan with the focus on improving patient outcomes. 

For example, this year has seen our clinical team expand to include Critical Care Paramedics, who have additional high-level skills such as the ability to provide enhanced airway management and anaesthetic delivery. In addition, a collaborative project with Lancaster University Data Science Institute has given us valuable data, which will inform the most effective use of helicopters, base locations, hours of operation, resource and dispatch allocation, ensuring our operations are as streamlined and as effective as they can be to improve patient impact. 

1 



**NORTH WEST AIR AMBULANCE CHAIRMAN’S INTRODUCTION AND REPORT AND REVIEW OF ACTIVITIES** 

As a team, we are now embracing this period of recovery and growth. Looking to the future we will continue to innovate so that we deliver the most advanced medical crew and equipment to patients, when and where they need it most. We are also looking to diversify our fundraising, to ensure we have the financial resilience needed to sustain and future proof our service. 

I would like to take this opportunity to say a huge thank you to all the crew, our employees, fundraisers, supporters, and volunteers. Each and every one of you has gone the extra mile to allow us to continue with our vital work. 

Together we are flying to save lives. 


**Mr A G Jude** Chair, on behalf of the Board of Trustees 


2 



## **NORTH WEST AIR AMBULANCE** 

## **Legal and Administrative details** 

North West Air Ambulance ("the Charity") is a registered company and is registered with the Charity Commission. The Charity was incorporated on 12 April 1999. 

**Charity registration number:** 1075641 **Company registration number:** 03752544 **Chair of the Trustees:** Allan Jude 

**Bankers:** 

The Co-Operative Bank plc 1 Balloon Street Manchester M60 4EP Barclays Bank plc Level 11 20 Chapel Street Liverpool L3 9AG 

**Registered Auditors:** Crowe U.K. LLP The Lexicon Mount Street Manchester M2 5NT 

**Registered and Principal Office:** Stanley House North Mersey Business Centre Woodward Road Knowsley Merseyside L33 7UY 

## **Key management personnel:** 

Ms Heather Arrowsmith – Chief Executive Officer Ms Emma Pridgeon – Director of Finance and Resources Mr David Briggs – Director of Operations Ms Marie Davies – Director of Income and Engagement (left April 2020) Mrs Sarah Naismith – Director of Income and Engagement (appointed November 2020) 

**Trustees:** 

Mr A G Jude (Chair) Mrs K J Spencer Mr S E Meehan Mrs D J Smith Dr R C Hall (resigned 7 July 2021) Mr D R Head Dr S J Mercer (appointed 6 October 2021) 

3 



## **NORTH WEST AIR AMBULANCE** 

## **Legal and Administrative details** 

## **Investment Advisors** 

Isio Manchester One St Peter’s Square Manchester M2 3AE 

4 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The Trustees, who are also Directors of the Charity for the purposes of the Companies Act, submit their annual report and audited financial statements for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice 2015 (SORP) Accounting and Reporting for Charities published in July 2014 in preparing the annual report and financial statements of the Charity. 

The North West Air Ambulance (NWAA) was set up as a company limited by guarantee in 1999. It is governed by a Memorandum and Articles of Association, which were amended in 2017 to update the appointment and tenure of Trustees, objectives and inclusion of training as a future area where the Charity could be involved. Further changes covering election terms and voting processes were made in 2019. 

The objects for which the Charity is established are: 

- The relief of sickness and injury and the protection of human life by the provision or support of an air ambulance service in Lancashire, Cumbria, Greater Manchester, Merseyside, Cheshire and such other areas as the Trustees may in their absolute discretion determine from time to time; and 

- The provision of training and education in matters relating to the relief of sickness and injury and the protection of human life 

The Charity is supported by North West Air Ambulance Promotions Limited, a trading company (primarily shops) and the Friends of the NW Air Ambulance Lottery CIC (Community Interest Company) which runs the Charity’s lottery. Both companies were set up and have the objective of raising funds and/or generating awareness of the Charity and are subsidiaries of the Charity. 

## **PERFORMANCE SUMMARY** 

## **Clinical Impact** 

The Enhanced Pre-Hospital Care (EPHC) service, operational since August 2017, is fully embedded within the service, principally operating on the Consultant led H72 helicopter out of Barton airbase, complementing the Paramedic led skills provided on the H08 helicopter based at Blackpool, and the H75 helicopter, also based at Barton. 

NWAA has a collaborative Service Level Agreement (SLA) with North West Ambulance Service (NWAS) for the provision of clinical staff, clinical strategy and clinical governance. This SLA is currently in the process of being extended from December 2021 for a period of five years. The clinical leadership team within NWAA consists of a Lead HEMS Paramedic and two Senior Paramedic Team Leaders. As Paramedics, they are accountable to the NWAA Corporate Consultant Paramedic, as opposed to the Medical Director: there is a close working relationship at this level, commensurate with the leadership skills required. They manage the team of 14 HEMS Paramedics, scheduled to be increased to 16 in 2021 to provide consistent staffing. In addition, a team of 17 Consultant-level Doctors, accountable to the Medical Director, provide the required skillset to deliver EPHC.  In September 2020, 9 of the HEMS Paramedics commenced a 12-month academic and practical development pathway course, via Bangor University, to enhance their existing skills to become Critical Care Paramedics (CCP). This additional skill increases service delivery capability and allows CCPs to provide enhanced airway management and anesthetic delivery. In the coming year, all remaining paramedics will commence the CCP training pathway. 

With the onset of the Covid Pandemic, the Charity was quick to adapt the service it offered to reflect the changing landscape. 

NWAA embarked on a diverse new challenge to further support the NHS, so that together we can save lives during the nation’s time of need. Our highly-skilled HEMS Paramedics, alongside North West Ambulance Service (NWAS) colleagues worked on the frontline tackling Covid-19 by enabling an interhospital patient land transfer service. 

5 

7 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

This new additional service saw the Charity’s HEMS Paramedics (who are experienced and familiar with working alongside a doctor-led team) provide monitors, ventilators, and in-line transfusion capabilities, whilst utilising NWAA rapid response vehicles and working to NWAS clinical governance protocols. This helped to minimise staff and public exposure to Covid-19 when responding to positive patients, whilst also helping to protect and support the NHS clinical staff caring for them. We have also been able to ensure that our team are fully protected with PPE requirements during this time. 

During this time North West Air Ambulance’s consultant-level Doctors and Paramedics also continued to provide EPHC via helicopter and a rapid response vehicle, to the critically ill and injured, improving outcomes for patients across the North West. 

This significant change critically ensures the availability of key frontline NHS resource during the crisis by enabling this resource to be retained in hospital settings. The adaptation of our service, during a time of National Crisis, highlights the key benefit of our collaborative agreement with the NHS and our nimble approach will enable us to continue to support them and the country if and when needed. 

## Activity 

The tables below show the activity levels for the last two years. 

||01/04/19 to 31/03/20|01/04/20 to 31/03/21|
|---|---|---|
|**Number of Jobs**|**2,472**|**2,524**|
|Number of patients|1,199|1,107|
|Number of RSI’s|56|125|
|Number of intubations without drugs|108|79|
|Major hemorrhages|47|50|
|Blood plasma patients|44|52|
|Job Type|||
|Accidental injury|646|713|
|Road traffic collision|641|656|
|Medical|698|447|
|Assault|161|300|
|Other|61|68|
|Intentional self-harm|154|211|
|Sport /leisure|60|50|
|Transfer|29|42|
|Other transfer|12|17|
|Exposure|10|20|



The following table shows the number of missions each year. This, of course, is a measure of activity rather than impact. The Charity is investing effort in learning how its interventions have affected the survival and long-term recovery of its patients. This is far from a simple task and one which has challenged the wider air ambulance community. Work to establish formal Data Sharing Agreements (DSAs) with various hospital trusts has been undertaken, this will enable NWAA to fully evidence the clinical patient impact of its service. The next step will be to ensure we achieve data outcomes. To date DSAs have been agreed with every regional adult and pediatric Major Trauma Centre (MTC). 

6 

8 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

## **Number of Missions** 

|Counties|01/04/19 to 31/03/20|01/04/20 to 31/03/21|
|---|---|---|
|Cumbria|165|111|
|Lancashire|861|716|
|Greater Manchester|692|1,000|
|Merseyside and Cheshire|736|669|
|Other|15|78|
|**Total**|**2,469**|**2,574**|



Of note, during the Covid pandemic, NWAA reacted within a 7-day period in April 2020, to establish alongside NWAS, a Covid-19 patient land transfer service provision. This saw the standing down of two aircraft covering a six-week period and standing down one aircraft for an additional four weeks. NWAA HEMS Paramedics were specifically used due to their enhanced airway management skillsets and their high levels of experience with working closely with doctors as noted above. The consequence of establishing this service, was a reduced operating capacity over the above period. Activity levels were therefore reduced over a “normal” year comparison. Notwithstanding this period of reduced activity, year on year NWAA has attended more jobs (2.18%) but dealt with less patients (-7.36%) than the previous year. 

## **Operations Service Capacity and Capability** 

To ensure best use of resources, and to support the evidence-based approach to service development, the Charity entered into a collaborative working project with Lancaster University Data Science Institute. This saw the use of academics to analyse relevant clinical patient data to inform the Charity as to the most effective use of helicopters, base locations, hours of operation, resource and dispatch allocation. The critical driver to the project was to ensure that the Charity maximises patient impact. 

The first clinical car trial, conducted over 6 weeks during March 2020 supported the evidence, as modelled via the University’s Project: “Optimum Working Hours”. This suggested operating between the hours of 1600-2000 is most effective to maximise patient impact. The results of this trial indicating greater opportunity to respond to high acuity jobs has been agreed with the Board and therefore is now included in the base operating model for the Charity. The second project which looked at stand down and dispatch, determined there would be negligible change to service delivery if changes to stand down were achieved. This has allowed NWAA opportunity to focus on other key areas. The third project, regarding location of bases and number of helicopters, evidenced the Barton base is suitably positioned and Blackpool should be relocated nearer to Preston to maximise patient impact; this will see in the coming year a feasibility study being undertaken to provide options to relocate Blackpool airbase. The work established three helicopters is the optimum number of air assets. 

The above project work, using an evidence-based approach, supported and enabled the production of the NWAA Clinical Strategy which achieved Board approval in December 2020. The strategy is the basis for operational development going forward. It is focused around improving patient impact and ensuring operational excellence. Service development aspirations result from the newly devised evidence-based Clinical Strategy, which identifies several potential initiatives, such as providing a night-time car service and blood being provided on all platforms, will in the first instance undergo a trial period, prior to being determined as a formally revised operational delivery provision. 

Other service developments such as Critical Care Paramedics (CCP) will become more established and will realise the need to increase headcount, to ensure effective and consistent service delivery. A concentrated refocus on training, largely deferred due to Covid-19, will be seen through the year. 

7 

9 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The Patient Aftercare Service developed in year as recruitment commenced for two Patient Aftercare Coordinators (PACs) based at Preston and Aintree Hospitals respectively. This will be a 12-month trial and crucially aims to provide evidence to demonstrate the impact of both the EPHC service and the impact made to patient outcomes. In addition, these roles will benefit patients and crew through providing the link between the parties following the mission, as well as providing the link to further fundraising through supporter engagement and engaging patient stories.  This trial will run alongside the existing Patient Support Coordinator (PSC) role at one day per week and moving to two days per week as the trial commences. It is hoped that additional funding will be generated to fund these roles. At the time of writing the PSC has left the Charity and recruitment will take place during Q2 of 2021/22 to encompass these responsibilities. 

A project to review and renew the existing aviation contract has commenced with Board approval expected autumn 2021. The current contract with Babcock expires in December 2021. This currently covers the provision of three helicopters, Aircraft Operators Certificate, pilots, engineers, airbases and supporting services. A Subject Matter Expert is providing consultative-level support to enable a full procurement process to be undertaken, including a full tender process, to ensure best value, futureproofing and to support the clinical strategy. 

To support key strategic objectives, further workstreams will be brought to life, covering such areas as innovation, research and development. To support the golden thread of improving and evidencing patient impact, a 12-month trial project of Aftercare Coordinators will also commence with the aim to demonstrate both the need for NWAA, plus the impact made to patient outcomes. 

## **Financial Performance** 

The Charity group had a consolidated surplus for the year of £1,994,506 (2019/20 £1,778,912) with a period of decreased income and decreased costs but with gains on investments. 

Total income decreased from £12,021,518 to £10,424,700. This was largely driven by the decrease in retail sales (given the closures and impact on consumer confidence of the pandemic) and a fall in nearly all areas of fundraising, which was curtailed by the pandemic. 

Commercial trading costs decreased due to fall in retail costs due to lower trading and shop closures during lockdown. Direct charitable costs decreased compared to last year due to the reduction in fundraising activity. Canvasser recruitment costs for the lottery fell as they were not able to recruit during lockdowns. 

Activity levels fell during the initial lockdowns so overall operating costs decreased. 

As a consequence of the unprecedented impact of Covid-19 during 2020 /21, the Charity did receive some funding from the Government in the form of furlough funding, grants relating to the Charity’s retail function and a one-off contribution of central government funding, a proportion of which was distributed to the Charity via Air Ambulance UK. This funding was awarded as a direct response to the pandemic and is not expected to be a consistent source of funding, maintaining the need for the Charity to claim it’s reliant on charitable income going forward. This will also enable the Charity to continue to be nimble with its decision making and future strategic direction. Although the group has received government grant and staffing funding during the pandemic it has not received any NHS funding. 

Support costs have decreased, largely due to lower staffing levels as the Charity held back on recruiting to vacancies and incurred lower premises and general costs. Vacancies started to be actively recruited to in the second half of the year which will facilitate fundraising projects and development as the community reopens. 

8 

10 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

There was a significant gain from the increase in market value of investments in the year – part of this was a recovery of the losses seen the year before in financial markets when the pandemic struck - however recovery was greater than this fall although it slowed in the final quarter of the financial year.  These investments have continued to show good recovery in 2021/22, although markets inevitably remain volatile. 

The capital spend identified in the cash flow was at a higher level than previous years and included some medical equipment and IT equipment to support remote working. Plans for further capital spend in 2021/22 will look to invest in training equipment at bases, a replacement HEMS Response Vehicle and medical equipment. 

## **Results of subsidiary companies and group** 

The results of the Charity Group are summarised on the Statement of Financial Activities, and those of the subsidiary companies in the notes to the Financial Statements. 

## **Fundraising performance** 

The Trustees of the North West Air Ambulance Charity are committed to a responsible approach to fundraising, treating donors and fundraisers respectfully and fairly, so they feel valued and free to donate if, when and how they wish to. We adhere to the Fundraising Regulator Code of Practice in all fundraising activity. The Charity is supported by North West Air Ambulance Promotions Limited, a trading company (primarily shops), and the Friends of the NW Air Ambulance Lottery CIC, which runs the Charity’s lottery, its largest income stream. 

The Charity is registered with the Fundraising Regulator and complies with its Code of Fundraising Practice. The lottery company is licensed by the Gambling Commission. 

The lottery is a key source of income generation for the group and the reliance on this income has increased as other fundraising streams were greatly impacted by Covid-19. 

The lottery company recruits players primarily door-to-door and in privately owned venues. It provides extensive training to its representatives on areas of social responsibility, including dealing with vulnerable people, and all canvassers are registered with Dementia Friends. The Charity ensures high standards of ethical behavior from external representatives at all times, with regular reports and details of each canvasser’s training and meetings taking place to review concerns and discuss performance, as well as updates on our charitable activities. In addition, NWAA runs inductions for canvassers on their role as Charity Ambassadors, and this includes strict protocols which mean they cannot enter people’s homes or approach sheltered accommodation.  Canvassers are instructed to walk away from anyone who does not engage or shows any sign of vulnerability. NWAA also has its own Social Responsibility in Gambling policy. 

Canvasser activity was forced to stop during the pandemic during each of the lockdowns. Although recruitment levels were good when canvassers were able to go out, the periods of non-canvassing, coupled with the natural attrition that arises when some players leave the lottery, means that the number of weekly plays fell considerably during the year and income slowly declined. Although the lottery did also reduce expenditure from not paying the canvassers during the period, overall, it will see a medium-term financial consequence from the fall in weekly players, until the CIC is able to actively recruit on a regular basis. 

The CIC has a remote lottery license. This enabled some growth and acquisition of the lottery during the year through alternative routes to market such as telemarketing campaigns, social media and the website. This work will continue in 2021/22 as well as further work with regards to retention through targeted marketing cycles and looking at further initiatives regarding prize draw structures. 

9 

11 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

It is recognised that with the enhanced license comes further regulatory responsibility and therefore we have developed a wide-ranging lottery assurance plan, including the requirement for a further audit of processes, responsibilities, and procedures by a third party to ensure our processes and plans are robust. We have also strengthened our staffing resource in this area. 

Covid-19 has had a considerable impact on many of our fundraising income streams, especially those based in community and events and retail, as seen by most other charities and businesses. Some staff were furloughed in response to this impact, but as they rejoin the business, they will focus on accelerating some project work - such as the use of contactless devices - and alternative fundraising initiatives – such as online retail offers, individual giving driven by telemarketing, and virtual events for major donors and fundraising. The Charity has had to adapt to respond to the impact of the pandemic, whilst virtual events such as an on-line comedy night and an online Christmas Market have not generated the income which live events have, they have afforded the Charity to remain in contact with some of our supporters and sponsors. In December the Charity produced its first live event for current and prospective high value donors. 

## **Complaints** 

The Charity changed its complaints process during the year and launched a revised complaints policy in December 2020. This complaints policy covers all complaints to the North West Air Ambulance Charity and sets out the different stages a complaint is to go through, the timescales involved, and who should be involved in handling the complaint.  Complaints are valued as a means to continuously review and improve the services we offer our supporters. 

There were 6 items raised up to November 2020 (before the change), covering issues from lottery administration concerns to operational issues. Since the change in policy there have been 3 formal complaints with 1 case remaining open at the year end. 

## **Marketing** 

The marketing of our work and social media presence was strengthened to support our fundraising ambition. 

We have invested heavily in marketing resource to improve our profile. We have bought marketing and social media in house and are actively using data analytics to ensure social media development. We have improved our internal and external communication, especially during the pandemic to ensure supporters are aware of the impact on the Charity. 

We celebrated our 21st birthday during lockdown on 19th May and marked this in the best way we could in difficult times, thanking for work done by supporters, volunteers and crew. Activities took place to celebrate this special birthday including a birthday e-card to all staff, a 21st birthday edition of Skylines and a website homepage takeover with animation and 21st birthday branding. In addition, there was a Go21! fundraising campaign promoted via social media which challenged individuals to do something active, such as run one mile a day for 21 days, do a 21-minute dance off or 21 pushups. The birthday celebrations for each base were posted on social media, which included birthday cakes and decorations. 

We have recognised the need to update our website for a number of years. Now that marketing is resourced internally, we are confident that we can complete our planned new website as a key priority with the launch now due in August 2021. The new functionality for the website will facilitate more effective interaction with our supporters and donors and ensures we are futureproofing. 

The Emergency Appeal which launched in February far exceeded initial expectations in terms of income and profile for the Charity raising over £40,000 and several features across media channels. 

10 

12 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The Marketing and Communications Strategy for 2021/22, and schedule of activity will focus on integrated communications across all channels and income streams - with the ROI to be established for activity, measuring reach, and Advertising Value Equivalent, as well as taking advantage of national campaigns such as Air Ambulance week. 

A key strategic project is the development and the implementation of an integrated approach to digital marketing across the whole of income generation, with planned split testing and evaluation; target setting and engaging content across website, social and email marketing. This will support all income generating areas to increase income and performance. 

## **Retail development** 

The Promotions business was significantly impacted by Covid-19 with all shops, warehousing and online provision closing in March 2020, with decreased sales experienced in the weeks before. The business received government support through successive grants and funding for furloughed staffing. Shops began to open again in June following extensive work and training to make premises and practices Covid-19 secure. The key requirement was that staff, volunteers and customers felt that the premises were safe. Further work was also undertaken to further develop the online offer to adapt to a changing marketplace. 

The shops continued to see a year of further volatility with the further two lockdowns, and in-between there were periods of lower consumer confidence, especially in areas with high Covid-19 rates. An overdraft facility has been arranged to support the poorer trading levels. 

At this stage, the opening of further shops has been put on hold. In addition, two store closures have been announced for 2020/21. 

## **Volunteers** 

Volunteers continue to support the vital fundraising work of the Charity, donating their time, energy and passion to support our life-saving cause. 

Understandably, physical activities involving our volunteers during 2020/21 were dramatically reduced as the government restrictions on society owing to the pandemic impacted our operations overall as a Charity. 

The Volunteering Team used time during lockdowns to reach out to those volunteers who were identified as being at risk, as acknowledgements regarding the social impact on mental health and personal wellbeing of individuals because of these lockdowns became more greatly understood. 

This dedication to the engagement of our volunteers contributed to 51.5% (295) of those retail volunteers who were registered with us as at the end of March 2021, returning to assist with the preparing of our retail outlets for reopening in April 2021 following the easing of restrictions. 

Naturally, much of the planned development work for our Volunteer Programme was placed on hold during 2020/21 but work on the streamlining of administration tasks and moving of processes away from paper documentation continued. 

Although thank you events and training sessions planned for 2020 were postponed, we have a range of other activities to recognise and reward volunteer input to the Charity. We will be issuing milestone certificates to recognise volunteer length of service and we launched a region-wide volunteer awards strategy which will recognise volunteers who have significantly contributed to the Charity. 

Following recruitment of a new Director for the Income and Engagement Directorate in November 2020, third party reviews around brand awareness and communications with our supporters are being undertaken. The timing of these projects will enable the re-establishment of the Volunteer Forum in summer 2021, which will result in having a direct impact on the forward planning of the Charity giving our volunteers the opportunity to input on the direction of the Charity in relation to volunteer activity. 

11 

13 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

Looking forward, anticipating restrictions easing across society, it is hoped that this will enable our colleagues in fundraising to restart the collection and delivery of collection tins and host events.  These will be supported by our volunteers and recruitment for these areas will get underway soonest. Equally the increase in our e-commerce activity has seen the need for volunteers in our Speke operation to be increased and we will broaden our recruitment channels to include local universities and the Community Payback Scheme. 

We will continue to work towards increasing the compliance of required training amongst volunteers. All volunteers re- inducted post Covid-19 suspension have been offered training to ensure all active retail volunteers have received basic training in each area. 

At NWAA we immensely value our volunteers, they are vital to our delivery and we could not operate our fundraising, or retail activity, at our current levels without them. 

## **GOVERNANCE** 

## **Organisation Structure** 

The Charity and its subsidiaries (Promotions and Lottery) are governed by the Trustees who are also Directors because of their position as Trustees and the status of the organisations in being companies. They meet approximately every three months (known as Board Meetings) and, where necessary, may also communicate and do business via tele and video conferences between official meetings. 

## Trustee Governance 

Trustees are appointed by the Charity, candidates may be put forward for consideration by individual Trustees or the Chief Executive, together with a brief CV of their relevant experience. Trustees are unpaid and are appointed for a period of up to three years. At the end of their three-year term, they may be reappointed. 

Trustees are selected for their abilities to make an effective contribution to the Charity. The key attributes and experience include: 

- Business management 

- Marketing 

- Financial management 

- Governance 

- Medical/clinical experience 

- Charity management 

The optimum number of Trustees is not fixed but needs to reflect the diverse range of skills needed. The Charity undertook a review of the composition of the Board and in particular the skills and experience mix required, and in place. This ensured that the Board has a good cross section of skills and is not over dependent on individual Trustees in the majority of areas and therefore can expect a good level of resilience and challenge. The Board recognises that, on occasion, this may require obtaining specialist input and assurance and has, for example, ensured that it has external aviation support during the procurement of its helicopter provision. It also sought specialist support to review the challenges faced by the retail business during the pandemic. 

The appraisal and self-assessment of Trustees has been put in place, which has fed into improving training and development for Trustees. Trustees are ultimately accountable for the operation of the Charity and its subsidiary companies, decisions regarding key risk, strategy, annual budget agreement and major purchases are reserved for the Board. 

The overall Accountability Framework for the organisation showing the Board and Sub Committee composition, and their Terms of Reference are agreed annually by the Board. 

12 

14 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

## Finance Sub-Committee (FSC) 

A Finance Sub-Committee, comprising of two Trustees and members of the Senior Management Team, meets quarterly to consider financial matters, risk management, investment management and information technology, and reports to the Board of Trustees accordingly. Particular attention has been paid this year to the impact of the pandemic – with regular reforecasts and scenario plans being reviewed. In addition, the Trustees of this committee, and agreed other attendees, have met more frequently since the pandemic, to carefully monitor the potential financial impact on the Charity. Details of the performance of investments, overall financial reports, financial plans for the following year, and the development of the risk strategy are detailed later in the report. 

## Governance Sub-Committee (GSC) 

The Governance Sub-Committee continues to review all aspects of governance. It comprises of two Trustees and members of the Senior Management Team, and now meets quarterly. 

The Compliance Framework Document (CFD) is now well established with NWAA governance. This is the internal framework which was created based on the Association of Air Ambulances (AAA) framework for a High Performing Air Ambulance Service 2013. The  year-end position is that we have 97.7% (prior year 92.3%) achievement against the standards, this being the total of both evidenced and completed items with further improvement anticipated. In addition, a program of quality assurance has commenced which includes quarterly sample audits and an annual full audit. Additional reassurance provision will be undertaken in the form of an external review by Crowe Auditors. This will seek to identify any gaps and provide strategic direction to further enhance the CFD. 

A Mandatory Occurrence Register (MOR) has been established. The register covers all areas of the Charity and is based on two key aspects. The first being all mandatory incidents or events that are reportable to regulators/bodies such as HMRC or the HSE. The second, covers all other incidents or events that are not mandatory, but which require action by NWAA. This covers internal events such as a process or procedural failure that require escalation to either, or both, SMT and the Board of Trustees. All events in both areas also have reporting timelines and owners to allow a consistent and timely approach. 

There has also been work undertaken to consider the outcomes of the lottery compliance external audits and the action plan derived from the safeguarding review as well as an overview of the return-to-work projects which have followed each lockdown. 

Following an audit programme undertaken in 2019, both airbases and headquarters have now been installed with CCTV, monitored alarm systems, and improved access control systems. This improves upon areas identified as vulnerable and demonstrated NWAA’s commitment to a safe and secure working environment. 

A Business Continuity Plan (BCP) was developed and implemented during 2020 after being identified as an area for improvement via the NWAA risk register. The BCP has helped to support the imposed change of operational model, seeing the impact of Covid-19 necessitate the need for HQ staff to work from home and meet in a virtual environment. 

13 

15 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

## Clinical Governance Sub Committee (CGSC) 

As per the Service Level Agreement (SLA) and to demonstrate compliance within the accountability framework, the North West Ambulance Service (NWAS) provides clinical governance and CQC registration for North West Air Ambulance (NWAA); the purpose of the NWAA Clinical Governance Sub Committee (CGSC) is to monitor and provide assurance regarding clinical governance provided by NWAS and to report to the Board of Trustees on all clinical and quality aspects of service delivery. Supporting information for the CGSC is achieved via Clinical Governance review meetings, held monthly, and chaired by a member of the Clinical SMT. As a result of Covid-19 the previously held monthly meetings were changed to virtual fortnightly meetings which proved successful with increased attendance. This forum allows for case review, professional discussion and creates a positive learning environment. In addition, all clinicians, led by Clinical SMT, have been appointed a defined audit area to review and will support the methodology of and enable “deep dive” key topic audit review. 

## Operations Sub Committee (OSC) 

This committee was introduced last year to scrutinise and review systems in place to ensure, monitor and improve the quality of operational service provided to support and facilitate clinical service delivery and the wider Charity. The active reporting of health and safety requirements will also move to be overseen here, along with oversight and guidance in relation to the above-mentioned helicopter contract review and renewal. 

Ongoing improvements have been made to health and safety following the introduction of a Staff Forum and Safety Committee. A newly developed three-year Health and Safety Plan, with Board approval, has been introduced to ensure a cycle of continuous improvement is evidenced. This follows the “Plan, Do, Check, Act” ethos and will enable greater individual ownership for staff, supported by additional training and focus on key areas such as IOSH Training for all retail managers and the ambition to achieve industry recognition in subsequent years (Year 3). 

## Senior Management Team (SMT) 

The day-to-day running of the Charity and subsidiaries is undertaken by the Senior Management Team (SMT) led by the Chief Executive. SMT comprises: 

Chief Executive Officer Medical Director Director of Income and Engagement Operations Director Director of Finance and Resources 

The remuneration packages of the SMT (excluding the Medical Director) are benchmarked against those of similar organisations and are reviewed annually by the Trustees. 

Company Secretarial and Governance advice is provided by Brabners. 

The Medical Director is provided by North West Ambulance Service NHS Trust, a key strategic partner, as part of a service level agreement arrangement. The role is essential to manage and be held accountable for the clinical governance of the Charity. The position strengthens the revisions to the SLA and provides assurance to the Trustees that the Charity is operating in a compliant clinical manner and their approach to risk. 

The Charity is a member of Air Ambulances UK. The Association was established as a membership body for those organisations which form the air ambulance services in the UK. Extensive use is being made of the contacts, primarily other air ambulance charities to learn and share best practice and in particular to understand the impact of Coronavirus on all aspects of the sector. 

14 

16 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

## **Staffing and Resources** 

Significant work has taken place in this area, although a considerable focus has inevitably been put on managing the staffing and resources due to the impact of the pandemic. 

The Employee Forum was disrupted due to the pandemic. A number of our forum representatives were on furlough leave in 2020 which meant that the forum could not meet for a period of 6 months due to not being quorate. The forum has recommenced in 2021. 

There were a number of vacant roles within the Income and Engagement Directorate that were not immediately filled in 2020/21.  This decision was taken due to the anticipated financial impact and restrictions for fundraising arising from the global pandemic.  In order to mitigate the impact, roles were held vacant, and some employees were asked to take furlough leave, in particular during the national lockdowns.  The recruitment for these roles started in the summer of 2020 as the UK economy emerged from the pandemic. 

Staff turnover reduced in 2020/21 in comparison to the previous year: 

||Retail|Charity|Total|
|---|---|---|---|
|2019-20|21.5%|28%|24.4%|
|2020-21|8.1%|9.5%|8.8%|



An annual Performance Review Process was introduced in 2019. The timings of the performance review process for 2020/21 were adjusted due to the pandemic to ensure this remained a meaningful process. 

A survey about the communications we were providing was conducted in June 2020 to ensure we were reaching our employees and were sharing the information that people wanted and needed especially during the pandemic. The survey results were positive and informed some adjustments to the information shared. We also provide an employee assistance helpline and counselling support which we encouraged employees to use throughout the pandemic. 

The training and development we had initially planned for 2020/21 was hugely impacted by Covid-19 as face-to-face training could not take place and a number of our employees were on furlough leave. As the year moved on, we were able to continue with some essential training where it was safe and necessary to do so including a management development programme, safeguarding, equality and diversity, IOSH and First Aid as well as addressing some individual training needs. 

We have selected an employee survey process, the ‘b-Heard’ survey which is run by Best Companies. The purpose of the survey is to measure, recognise and improve levels of workplace engagement and to help us to better understand what we are doing well, and what we might be able to improve. This will be implemented for the first time for all employees of NWAA in June 2021. 

The benefits offered to employees were further enhanced. In 2020-2021 the Board approved a proposal to adjust the optional Enhanced Maternity pay to ensure we include Maternity/Adoption/Shared Parental Leave Pay in the scheme. 

We have also introduced a holiday purchase scheme which will be effective from the beginning of  the 2021- 2022 leave year.  This scheme will enable greater flexibility and smarter working which surveys indicate are becoming ever more important to employees. 

A replacement payroll and HR system was selected in 2019 - 2020 and implemented in 2020 – 2021. The new system went live in July 2020. An expenses module linked to this system will be introduced in 2021, with additional training delivered by the HR team to support this. 

We met with staff  early in 2020 to gain feedback on what values and behaviours represent NWAA.  The core values and behaviours have now been finalised and we will launch these and embed these within our processes in Autumn 2021. Values Awards will be announced, with a nomination process to be implemented to identify those worthy of awards for presentations which will be made at our first  employee conference now planned for Autumn 2021. 

15 

17 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

Due to the Covid-19 pandemic and the enforced working from home requirements, all staff other than critical business staff (some finance and admin personnel) and retail are working successfully from home. This was overseen by SMT, with any required recommendations reviewed and recommended via the newly established Defining Our New Normal (DONN) working group. 

## **ICT and GDPR** 

The previous work undertaken to move to a new, more reliable ICT provider and to address the over reliance on the terminal server proved beneficial when a significant proportion of staff were required to work from home and meant that these changes were relatively seamless. 

Despite the restriction of the pandemic, a number of IT projects were completed such as the upgrade to the financial system, replacement of the HR / payroll system, and implementation and the tendering of the provision of internet and telephone systems, ensuring they are fit for purpose in a changing world. Website redesign was also progressed. 

Projects also considered the use of ICT in the wider business such as the shops (handheld tablets to capture gift aid signups) and fundraising (e.g., use of contactless devices) and developing paperless systems and processes in other areas of the business. 

GDPR compliance continued in the year under a cross functional group which meets at least quarterly. Key focuses during the year have been policy review and considering the impact of Covid-19 and to ensure that the group remains compliant whilst undertaking different modes of working.  Trustees moved onto a more secure SharePoint portal. We have also improved staff and volunteer awareness and training levels when Covid-19 impacts have allowed. We use an external advisor to act as a critical friend for this work and agree a “health check” programme of work with them every year. 

## **Public Benefit Statement** 

The Trustees confirm that they have due regard to the Charity Commission’s guidance on public benefit and that the Charity meets the requirements in the advancement of its objectives. 

The Charity exists to provide free of charge emergency clinical care services to the people of the North West of England during daylight hours. Three helicopters are manned by highly skilled Doctors and Paramedics. In 2017 we introduced Consultant level Doctors to operate from one helicopter. This provides enhanced medical care services having the capacity to save lives by conducting advanced medical interventions at the scene of the accident or incident. 

## **Forward look for the Charity** 

The worldwide pandemic has had a significant impact on the Charity, as it has on most businesses. Overall, the regrowth plans for income across fundraising channels are not, at this stage, able to keep pace with the required operational spend. Over reliance on the lottery, for example will in fact increase in the period in the year as, although it is impacted by Covid-19, it still remains a significant proportion of income, and other income streams are in a period of restoration due to the pandemic. 

One-year income strategies have been developed by the Director of Income and Engagement for each income stream with the bases for growth and diversity supported by risk analysis, consideration of dependencies and operational KPIs. These will be further developed into 3-year plans later in Q2/3. 

The year ahead will be one of uncertainty, however the direction is to develop new opportunities for existing income streams, adapt to new ways of working and optimise on the opportunities Covid-19 has afforded the Charity, in terms of developing and implementing a more digital and innovative approach to fundraising, which will enable the Charity to engage with a more diverse demographic of supporter. 

16 

18 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The Operational plan is focused around improving patient impact and ensuring operational excellence. Service development aspirations result from the newly devised evidence-based Clinical Strategy, which identifies several potential initiatives, such as providing a night-time car service and blood being provided on all platforms, will in the first instance undergo a trial period, prior to being determined as a formally revised operational delivery provision. 

In addition, the Charity will look to embed the foundations of digital innovation which will enable the clinical strategy and operational development. This clinical innovation will not be impeded by financial constraints given the reserves position of the Charity and the development of the income generation longer term strategy. 

The Trustees have assessed their financial position and plan to continue to progress their strategic plans and ambitions, despite the impact of Covid-19, where practically possible. The overall strategic aim, to maximise patient impact, remains at the core of the strategy. 

As part of this specific review the Board recognised that income generated by fundraising will be impacted for some time and that alternative routes to market to generate income will need to be developed. Conversely, they recognise the relative resilience of the income from the CIC and legacies. It has considered that it will likely continue to plan for operational and clinical development and also may face some cost increases from the impact of Covid-19. A range of forecasts and scenarios have been reviewed, and headroom / capacity have been considered, as has the ability to utilise its reserves, through its investments, if required. 

The reserves policy has given the Charity the reliance to be able to continue meeting its charitable objectives and service provision, even within times of great uncertainty, in order to ensure that its operational plans can continue unheeded where possible. 

The Board will continue to carefully monitor the cash flow and financial position of Promotions on a regular basis. It has also recognised that it will need external support as and when necessary, to provide advice regarding decision making and key actions thus ensuring that decisions regarding the strategic direction and future of the retail business are well informed and consider key factors and uncertainties. 

## **Risk** 

The organisation has developed a revised risk strategy and methodology. The Board is accountable for risk and will review key and high-level risks on a regular basis, but the FSC will provide the oversight to the process and ensure that progress, accountability and consistency are maintained. Each committee will review and challenge the risk assessments for its own area as necessary. 

The strategic risk register is used with a clear outline of the risk assessment process systematically followed: this considers the unmitigated risk, the levels of existing controls and assurance and therefore the current risk, and finally action plans to mitigate risk further where required. The Board is fully aware of the highest rated risks and the plans to reduce their current levels and what residual risks will remain. 

A “5x5” risk assessment matrix of likelihood and consequence is in place. Roles and responsibilities have been defined and the reporting structure, based on a RAG system, has been established. 

The strategic risks are identified by SMT. Risk is updated on at least a quarterly basis and also updated as changes take place. SMT also perform an “executive challenge” of movements in the register at their monthly meeting. The Board has also undertaken horizon scanning for potential new risks and considers the impact of risk at each formal meeting. 

Covid-19 has inevitably had a significant impact on the risk register across many areas, in particular relating to the economic environment, resourcing, income generation growth and protection and the retail business. In addition, there is a potential risk to the operational provision.  It has had an impact on the inherent risk, the current risk ratings, and the target risk levels and plans. 

17 

19 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The risk register has been reviewed at both Board and Committee level and this has been undertaken on a quarterly basis. In addition, in order to manage risks and decisions as they evolved due to Covid-19, some Trustees also have been meeting SMT on a fortnightly basis between Board meetings. Committees are also invited to undertake “deep dives” on risks identified at their quarterly meetings to gain a greater understanding of the assessment of, and assurance around, the risks identified. 

The current top 3 strategic risks identified are regarding inadequate Business Continuity Planning, the impact of economic uncertainty and the sustainability of the retail operating model. However, the impact on other risks as noted above has been significant.  Revised action plans have been put in place to gradually mitigate these risks, although it is recognised that this will not all be within the control of the Charity. 

## **Reserves Policy** 

## Funds per the balance sheet 

The total reserves/funds for the group at the end of 2020/21 is £18,027,890 (2019/20: £16,033,384). Of this the restricted funds for nominated specific use totals £170,709 (2019/20: £194,279) which are analysed in more detail in the notes to the accounts leaving unrestricted funds of £17,857,181 (2019/20 £15,839,105). 

Unrestricted designated funds are based upon the need to earmark funds to meet two years’ annual lease commitments (for property and helicopters) as described in the notes to the accounts, which gives a value of £4,559,067 (2019/20 £5,891,586). This leaves a value of £13,298,114 (2019/20 £9,947,519) of unrestricted general funds. 

A further allowance must be made to discount for tangible functional fixed assets, to reflect the fact that these funds cannot be freely spent. This reduction of £542,459 (2019/20 £674,163) then leaves a free reserves balance of £12,755,655 (2019/20 £9,273,356). 

## Review of available reserves 

The Charity’s policy is to hold two years of operational expenditure as reserves to ensure continued financial security and to provide for contingencies.  The reserves considered are those that are unrestricted funds, less the tangible assets. 

The total annual operational expenditure for 2020/21 was £6,163,206 (2019/20 £6,128,009) which was mostly from unrestricted funds. This is comprised of the direct costs of the operations (lease costs, fuel, clinical staffing, training etc.) plus a proportion of indirect costs (such as staffing, depreciation and governance costs) as detailed in the notes to the accounts. 

To assess the reserves policy position at the end of the year it will be necessary to compare the total funds above and planned operational spend for the next two years. It will be also necessary to consider any forecast change in reserves. 

The funds available under the reserves policy as of 31st March 2021 are therefore £17,314,722 (being unrestricted funds less the tangible assets). This is considerably in excess (by c £5m) two years of the 2020/21 total unrestricted operational expenditure at current levels and therefore Trustees should consider if it remains within its reserves policy. 

However, the direct operational spend for 2021/22, under the latest forecast, is c £5.8m. Allowing for indirect operational spend of a similar level to previous years would give an expected total operational spend of just under £7m. In addition, the procurement process for the future provision of helicopters will require both an increased annual spend in subsequent years and upfront payments for upgrades of the assets. Finally, Trustees are also mindful that Covid still presents a financial risk to the group and that the pandemic experience has emphasised the need for prudence with regards to reserves. 

18 

20 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The Charity’s forecast position for 2021/22 is for a small deficit of £(50)k due to the impact of Covid-19 on income generation levels. 

Trustees are committed to continuing evidence led operational and clinical development and therefore expenditure will increase further over future years. 

Given this forward-looking context the reserves of £17,314,722 are in line with holding 2 years of operational funds and therefore the organisation is operating within its reserves policy. 

## Review of reserves policy under coronavirus 

The Charity’s policy is to hold two years’ of operational expenditure as reserves to ensure continued financial security and to provide for contingencies. As required by the SORP, the Trustees have particularly reviewed this policy to consider the impact of Coronavirus on the policy, and also on the level of reserves held. 

As part of this specific review the Board recognised that income generated by fundraising could be impacted for some time and that alternative methods of generating income will need to be developed. Conversely, they recognise the relative resilience of the income from the lottery and legacies. It has considered that it will likely continue to plan for operational and clinical development and also may face some cost increases from the impact of coronavirus. 

Forecasts have been produced on a regular basis, and on a monthly basis for the most impacted Promotions business. 

Headroom / capacity have been considered, as has the ability to realise its reserves, through its investments, if required.  The reserves policy has given the Charity the reliance to be able to continue meeting its charitable objectives and service provision, even within times of great uncertainty. 

The Charity also holds designated funds earmarked to cover two years’ annual lease commitments (property and helicopters) and Trustees have also considered if this is still appropriate. 

Overall, therefore the Trustees consider the reserves policy and designated reserves to still be appropriate. 

## **Financial Investments** 

Trustees completed their review of the investment policy under the guidance of professional independent financial advisors and implemented it during 2016/2017. 

The Charity is reliant on fundraising donations for its activities. Investment assets are held as reserves. A key risk to the long-term reserves is inflation. The Charity’s investment objective is to generate a return in excess of inflation. The Charity is aiming to achieve and maintain a real portfolio value of £10m over the medium to long term. The portfolio aims to preserve capital value as much as practically possible while seeking to achieve the above objective and maintaining liquidity necessary to support operational requirements. 

19 

21 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

The target and actual investment allocations as at 31 March 2021 were as follows: 

|**Asset Class**|**Fund**|**Strategic**<br>**Allocation**|**31 March**<br>**2021**|
|---|---|---|---|
|Diversified Growth Fund|Black Rock Dynamic Diversified Growth<br>Fund|25%|28.5%|
|Diversified Growth Fund|Ninety-One Diversified Growth Fund<br>(formerly Investec)|25%|25.0%|
|Cash|ASI Liquidity Fund|50%|46.5%|
|**Total**||**100%**||



The Trustees have appointed Isio as investment advisors (with Isio being formed out of the sale of KPMG’s Pensions Advisory business). The performance of the funds are kept under review by Isio and reviewed twice a year by the Trustees (or more frequently if required). 

The total return to 31 March 2021 can be broken down between mandates as follows: 

||BlackRock DDG<br>fund|ASI Sterling<br>Liquidity<br>fund|Ninety-One DGF<br>(formerly Investec)|**Total**|
|---|---|---|---|---|
|12-month net return|<br>19.0%|0.1%|23.0%|**10.0%**|
|12-month net<br>objective|3.2%|-0.1%|5.7%|**2.1%**|
|Net objective<br>description|3-month LIBOR<br>+ 3%|7-day LIBOR|CPI +4.3%||



During the year, the growth funds outperformed their objectives as growth markets recovered from the Covid-19 driven market sell offs experienced in early 2020. Asset values in growth mandates were supported by fiscal and monetary measures introduced to combat the impact of lockdowns. The total return is estimated at 10.0% compared with the investment manager’s objective returns of 2.1% and RPI inflation of 1.5%. 

Although the impact of Covid-19 on the investments has been significant, to date in 2021/22 they have shown signs of considerable recovery, although markets can remain volatile. 

Returns are shown net of investment manager fees. 

## **Going concern** 

In the light of the financial outlook outlined above the Directors have considered the financial forecasts for the CIC and are confident that it remains a going concern, and for the accounts to be prepared on this basis. 

Similarly, the financial forecasts for the Charity, with the potential to utilise reserves in the medium term if required, enable the Trustees to remain confident that it has the means to remain a going concern and to adapt as necessary to changes required. 

20 

22 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

Covid-19 had significantly impacted the retail business with the shops and online business closing in March 2020, with a gradual reopening from June 2020. Sales were impacted and there are additional running costs of being Covid-19 secure. The business secured the available government grants and JRS funding offered and has arranged an overdraft facility under the government backed CBILS scheme. It has looked to attain specialist external advice where appropriate. Given the impact of covid the business was technically insolvent at year end with negative net current assets. 

Since the April 2021 opening the shops have performed well, although 2 shops are to close following unsuccessful lease negotiations to offset the impact on sales. 

However, the future trading environment remains uncertain as it does for many retail businesses. In particular, the key risk is the financial impact of any impact on consumer confidence and further lockdowns, without sufficient government funding being available as mitigation. 

On this basis, the Directors have considered the forecasts for the retail business and consider the business to be a going concern. 

## **Statement of Trustees’ Responsibilities** 

The Trustees (who are also directors of North West Air Ambulance Charity for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). 

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 judgments and 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 are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

21 

23 



## **NORTH WEST AIR AMBULANCE** 

## **Trustees Report** 

Insofar as the Trustees are aware, there is no relevant audit information (as defined by section 418 of the Companies Act 2006) of which the Charity's auditor is unaware and the Trustees have each taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

## **PLANS FOR FUTURE PERIOD AND LONG-TERM OBJECTIVES** 

## **Plans for future period** 

The report gives a detailed outline of the objectives for the immediate future which are 

- to evidence and maximise Patient Impact 

- to drive improvements in clinical capability and capacity 

- the re-generation of diverse income streams and development of the longer-term strategy 

- to embed culture and values to establish a great place to work and volunteer 

- to create an environment to encourage innovative healthcare and a digital first approach 

- raising profile of NWAA as a Charity 

## **Long term objectives** 

The key aspects of our strategy are: 

**Impact** - To deliver specialist and enhanced medical care to the critically ill and injured and transport patients to the most appropriate place to achieve the best outcomes for them 

**Forward Thinking** - To actively encourage innovation and embrace technology to enhance our ability to provide innovative healthcare 

**Collaborative** -To continue to work collaboratively with our partner organisations to provide the best possible outcomes for all 

**Transparent** - To adhere to robust governance structures and ensure transparency and compliance 

**Our People** -To create an environment where staff and volunteers will flourish 

**Sustainable** - To ensure financial stability and responsible income generation 

**Profile** - To continue to raise awareness with the public and all other stakeholders across the North West 

## **Auditors** 

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditors. 

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies. 

Approved by the Board of Trustees on 6th October 2021 

and signed on its behalf by: 



**Mrs K J Spencer** Trustee 

**Mr A G Jude** Chair 

22 

24 



**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF NORTH WEST AIR AMBULANCE** 

## **Opinion** 

We have audited the financial statements of North West Air Ambulance (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2021 and of the group’s income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information contained within the annual report. 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. 

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 this gives rise to a material misstatement in the financial statements themselves. 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. 

23 



**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF NORTH WEST AIR AMBULANCE** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion based on the work undertaken in the course of our audit 

- the information given in the trustees’ report, which includes the directors’ report and the strategic 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 strategic report 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 light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate and proper accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

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. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

24 



**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF NORTH WEST AIR AMBULANCE** 

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were those contained within the Charities Act and the Gambling Commission Regulations. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

[This report has not yet been signed] 

Vicky Szulist Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor The Lexicon Manchester M2 5NT 

Date 12th October 2021 

25 



## **NORTH WEST AIR AMBULANCE** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021** 

|**Notes**<br>**Income from:**<br>Donations and legacies<br>4<br>Other trading activities<br>5<br>Investments<br>3<br>**Total**<br>**Expenditure on:**<br>**_Raising funds:_**<br>Commercial trading operations<br>Other fundraising costs<br>6<br>**_Charitable activities_**<br>Cost of operation of the North<br>West Air Ambulance<br>6<br>**Total**<br>6<br>**Net Income**<br>**Other recognised gains**<br>Gains/(losses) on investments<br>12<br>Net movement in funds<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**<br>15|**Restricted**<br>**funds total**<br>**Year ended**<br>**31 March**<br>**2021**<br>**Unrestricted**<br>**funds total**<br>**Year ended**<br>**31 March**<br>**2021**<br>**Funds total**<br>**Year ended**<br>**31 March**<br>**2021**<br>Funds total<br>Year ended<br>31 March<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>**445,660**<br>**4,005,723**<br>**4,451,383**<br>5,070,450<br>**-**<br>**5,964,542**<br>**5,964,542**<br>6,914,719<br>**-**<br>**8,775**<br>**8,775**<br>36,349|
|---|---|
||**445,660**<br>**9,979,040**<br>**10,424,700**<br>12,021,518|
||**-**<br>**1,926,456**<br>**1,926,456**<br>2,425,398<br>**-**<br>**1,292,759**<br>**1,292,759**<br>1,295,482|
||**-**<br>**3,219,215**<br>**3,219,215**<br>3,720,880<br>**469,230**<br>**5,733,144**<br>**6,202,374**<br>6,171,850|
||**469,230**<br>**8,952,359**<br>**9,421,589**<br>9,892,730|
||**(23,570)**<br>**1,026,681**<br>**1,003,111**<br>2,128,788<br>**-**<br>**991,395**<br>**991,395**<br>(349,876)|
||**(23,570)**<br>**2,018,076**<br>**1,994,506**<br>1,778,912<br>**194,279**<br>**15,839,105**<br>**16,033,384 **<br>14,254,472|
||**170,709**<br>**17,857,181 **<br>**18,027,890**<br>16,033,384|



The notes in the appended pages form part of these Financial Statements. 

26 



## **NORTH WEST AIR AMBULANCE** 

## **BALANCE SHEETS FOR THE YEAR ENDED 31 MARCH 2021 Registered Company Number: 03752544** 

|Notes<br>**Fixed Assets**<br>Tangible Assets<br>10<br>Investments<br>12<br>Intangible assets<br>11<br>**Current assets**<br>Stock<br>Debtors<br>13<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within<br>one year<br>14<br>**Net current assets**<br>**Net assets**<br>**Income funds**<br>Restricted Funds<br>15<br>Unrestricted – General Funds<br>15<br>Unrestricted – Designated Funds<br>15|**Group**<br>**Charity**<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**542,459**<br>674,163<br>**337,968**<br>389,390<br>**10,935,254**<br>9,963,318<br>**10,438,777**<br>9,467,755<br>**560**<br>8,954<br>**-**<br>-|
|---|---|
||**11,478,273**<br>10,646,435<br>**10,776,745**<br>9,857,145<br>**30,158**<br>34,264<br>**-**<br>-<br>**689,134**<br>721,355<br>**1,751,228**<br>2,310,136<br>**7,883,845**<br>6,599,347<br>**7,019,257**<br>5,130,853|
||**8,603,137**<br>7,354,966<br>**8,770,485**<br>7,440,989|
||**(2,053,520)**<br>(1,968,017)<br>**(1,450,223)**<br>(1,342,703)|
||**6,549,617**<br>5,386,949<br>**7,320,262**<br>6,098,286|
||**18,027,890**<br>16,033,384<br>**18,097,007**<br>15,955,431|
||**170,709**<br>194,279<br>**170,709**<br>194,279<br>**13,298,114**<br>9,947,519<br>**13,367,231**<br>9,869,566<br>**4,559,067**<br>5,891,586<br>**4,559,067**<br>5,891,586|
||**18,027,890**<br>16,033,384<br>**18,097,007**<br>15,955,431|



The consolidated figures above include the results of the Charity which had income for the year of £8,646,216 (2020: £9,606,169) and a net surplus of £2,141,576 (2020: £1,785,186). 

The Financial Statements were approved and authorised for issue by the Board of Trustees on 6th October 2021 and signed on its behalf by: 


**Mr A G Jude** Chair 


**Mrs K J Spencer** Trustee 

27 



## **NORTH WEST AIR AMBULANCE** 

## **CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021** 

|Cash flows from operating activities<br>Net cash provided by operating activities<br>_Cash Flows from investing activities_<br>Dividends and interest from investments<br>Purchase of property, plant and equipment<br>Proceeds from investments<br>Net cash provided by investing activities<br>Change in cash and cash equivalents in the year.<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year.**<br>**NET CASH FLOW FROM OPERATING ACTIVITIES**<br>Net incoming resources<br>Investment income<br>Depreciation and amortisation of fixed assets<br>Decrease/(increase) in debtors<br>Decrease/(increase) in stock<br>Increase in creditors<br>**Net cash provided by operating activities**<br>**ANALYSIS OF CASH AND CASH EQUIVALENTS**<br>Cash at bank<br>**RECONCILIATION OF NET DEBT**<br>Cash at bank<br>Bank overdraft|||**2021**<br>**£**<br>**1,325,546**<br>**8,775**<br>**(69,282)**<br>**19,459**<br>**(41,048)**<br>**1,284,498**<br>**6,599,347**<br>**7,883,845**<br>**2021**<br>**£**<br>**1,003,111**<br>**(8,775)**<br>**209,380**<br>**32,221**<br>**4,106**<br>**85,503**<br>**1,325,546**<br>**2021**<br>**£**<br>**7,883,845**<br>At 1 April<br>2020<br>£<br>6,599,347<br>**-**<br>6,599,347|Cashflow<br>£<br>1,284,498<br>(68,281)<br>1,216,217|2020<br>£<br>2,828,164<br>36,349<br>(293,167)<br>1,505<br>(255,313)<br>2,572,851<br>4,026,496<br>6,599,347<br>2020<br>£<br>2,128,788<br>(36,349)<br>84,040<br>(125,176)<br>(13,687)<br>790,548<br>2,828,164<br>2020<br>£<br>6,599,347<br>At 31 March<br>2021<br>£<br>7,883,845<br>(68,281)<br>7,815,564|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||



28 



**NORTH WEST AIR AMBULANCE** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 1. **General information** 

The Charity is a company limited by guarantee (registered number 03752544) which in incorporated in England and Wales.  The address of the registered office is Stanley House, North Mersey Business Centre, Woodward Road, Knowsley, Merseyside L33 7UY. 

## 2. 

## **Accounting policies** 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements. 

## **Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable with the 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. North West Air Ambulance meets the definition of a public benefit entity under FRS102. 

The Charity has taken advantage of the exemption available to a qualifying entity in FRS102 from the requirement to produce a charity only cash flow statement with the consolidated financial statements. 

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. 

## **Basis of consolidation** 

The consolidated financial statements include the Financial Statements of the subsidiary companies: North West Air Ambulance Promotions Limited and Friends of the North West Air Ambulance Lottery CIC for the year to 31 March 2021. This has been consolidated on a line by line basis in accordance with the requirements of the Charity SORP (FRS102). 

The Charity has not presented its own Statement of Financial Activities (SOFA) as permitted by the Companies Act 2006 and the provisions of the Charity SORP   2015 (FRS102). 

The financial statements for the two subsidiaries contain financial information up to 28 March 2021. 

## **Going concern** 

Coronavirus has had a considerable impact on the operational and financial plans of the Charity. Some income streams, such as Community and Events, have been considerably impacted, and the trading position of the Promotions subsidiary was impacted by consumer confidence and lockdowns. However other key income streams, such as that from the CIC and legacies, have remained resilient with potential for further growth for most streams. New ways of fundraising are being developed across the business with longer term plans being developed. The operational business continues to provide a life-saving service, and has been adapted, where necessary, to ensure it provides the best impact to support patients. The clinical strategy is progressing and the Charity has a reserves policy that gives the financial headroom for this to take place whilst fundraising recovers. Therefore, the Trustees have considered the financial forecasts for Charity and are confident that it has the means to remain a going concern and to adapt as necessary to changes required. 

29 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

## 2. **Accounting policies (continued)** 

## **Income, Grants and donations** 

All incoming resources are included on the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. 

Grants and donations are included in the Statement of Financial Activities as they become due and are included in the relevant fund. Income expended is accounted for in the Statement of Financial Activities. 

Where income has donor imposed restrictions regarding its use, this is shown within restricted funds with related costs being allocated to the same fund. 

Where there is a timing restriction which requires income to be deferred to a future period, such amounts are shown within creditors and later credited to the Statement of Financial Activities as eligible. 

## **Donations in kind** 

Where assets are donated to the Charity these are included within restricted income and costs at the market value of the asset or the value in use at the time of the donation.  Where the cost is capitalised, a transfer is made out of restricted funds to the extent that the restriction no longer exists. A threshold of £3,000 is operated for donations in kind. 

## **Legacies** 

Legacies, which are included within voluntary income, are recognised when the bequest becomes due and is quantifiable. Any new legacy income received or first identified more than six weeks after the Charity's year end will be included in the following financial year's income for practical accounting purposes. 

## **Grants paid** 

Grants paid are included in the Statement of Financial Activities as they become payable. These become payable when authorised by the trustees. 

## **Expenditure and support costs** 

Expenditure has been charged to the Statement of Financial Activities on an accruals basis. Expenditure relating directly to the objectives of the Charity is shown as charitable expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the statement of financial activities. There is deemed to be only one key objective to which charitable costs are allocated. 

Support costs are shown in note 8. These include Governance costs. Governance costs include an element of administrative staff costs / support costs which relate mainly to year end compliance costs and non-fundraising related professional fees. 

## **Investments** 

Investments are shown at market value. 

30 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

## 2. **Accounting policies (continued)** 

## **Commercial income** 

Commercial income represents the amounts (excluding value added tax) received from the sale of goods to customers during the year through the trading subsidiary North West Air Ambulance Promotions Limited and income from the lottery run by Friends of the North West Air Ambulance Lottery CIC. All such turnover arises in the United Kingdom. 

## **Taxation** 

The Charity does not have any charge to tax on its charitable activities. 

## **Unrestricted funds** 

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees. 

## **Irrecoverable VAT** 

Irrecoverable VAT is accounted for in the expenditure category under which the costs are incurred. 

## **Fixed Assets** 

Tangible fixed assets for use by the Charity are stated as cost less depreciation. A fixed asset is defined as a unit of property that has an economic useful life that extends beyond 12 months and was acquired or produced for a cost greater than £500. 

In addition, "Grouped assets" are a collection of assets which individually may be valued at less than £500 but which together form a single collective asset because the items fulfil all the following criteria: 

- the items are functionally interdependent; 

- the items are acquired at about the same date and are planned for disposal at about the same date; 

- the items are under single managerial control; and, 

- each individual asset thus grouped has a value of over £200 

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: 

Plant & machinery, office equipment and motor vehicles: 20% on straight line basis Computer equipment: 33% on straight line basis 

## **Goodwill** 

Goodwill being the amount paid in connection with the acquisition of a business in 2007 which is now fully amortised. 

31 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

## 2. **Accounting policies (continued)** 

## **Stocks** 

Stocks are valued at the lower of cost and net realisable value, after making due allowances for any obsolete or slow moving items. 

Donated goods received for sale in the shops are not valued as it is impractical to do so. 

## **Operating lease agreements** 

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against income on a straight-line basis over the period of the lease 

## **Pension costs and post-retirement benefits** 

The Charity operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from those of the Charitable Company. Employer contributions in respect of this scheme are charged to the Statement of Financial Activities in the period to which they relate. 

## **Financial instruments** 

The Group has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at the transaction value and subsequently measured at amortised cost using an effective interest method. Financial assets are held at amortised cost comprise cash and bank in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors. 

## **Critical accounting judgements and key sources of estimation uncertainty** 

In the application of the entity's accounting policies which are described above, the Trustees are required to make judgments, estimates, assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods. 

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

32 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 3. **Investments – Group** 

|||**Year ended**|Year ended|
|---|---|---|---|
|||**31 March**|31 March|
|||**2021**|2020|
|||**£**|£|
||Bank Interest|**41**|294|
||Investment Income|**8,734**|36,055|
|||**8,775**|36,349|
|4.|**Donations and Legacies – Group**|||
|||**Year**|Year|
|||**ended**|ended|
|||**31 March**|31 March|
|||**2021**|2020|
|||**£**|£|
||Community Fundraising|**285,971**|699,299|
||Corporate Fundraising|**165,192**|278,683|
||Challenge Events|**57,575**|190,095|
||Individual Giving|**615,627**|642,445|
||Charitable Trust|**121,000**|221,818|
||Legacies|**1,904,629**|2,877,167|
||Donations Gift Aid|**68,134**|157,787|
||Grants|**1,230,130**|-|
||Other|**500**|-|
||Donations in Kind|**2,625**|3,156|
|||**4,451,383**|5,070,450|



Grant income includes £313k of CJRS income and £917k of other Covid19 support grants. 

## 5. **Other trading activities - Group** 

||**Year ended**|Year ended|
|---|---|---|
||**31 March**|31 March|
||**2021**|2020|
||**£**|£|
|Lottery income|**5,281,399**|5,342,951|
|Shop income|**683,143**|1,571,768|
||**5,964,542**|6,914,719|



33 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

6. **Total expenditure – Group** 

|6.|**Total expenditure – Group**|||
|---|---|---|---|
|||**Year ended**<br>|Year ended|
|||**31 March**|31 March|
|||**2021**|2020|
|||**£**|£|
||**Direct Charitable expenditure**|||
||Operating costs|**5,163,837**|5,081,771|
||Support costs (note 8a)|**888,138**|959,864|
||Depreciation|**114,706**|78,779|
||Investment managers fees|**35,693**|51,436|
|||**6,202,374**|6,171,850|
||**Raising Funds**|||
||Staff costs and travel (note 8a)|**744,992**|796,183|
||Other expenses (note 8a)|**547,767**|499,299|
|||**1,292,759**|1,295,482|
||**Subsidiary expenses**|||
||Lottery expenses|**330,063**|852,956|
||Shop expenses|**1,596,393**|1,572,442|
|||**1,926,456**|2,425,398|
|||**9,421,589**|9,892,730|
|7.|**Staff members and costs –Group**|||
|||**Year ended**|Year ended|
||Total staff costs for the year may be analysed as follows:|**31 March**|31 March|
|||**2021**|2020|
|||**£**|£|
||Wages and salaries|**1,996,800**|1,830,664|
||Social Security costs|**156,696**|143,200|
||Pension costs|**61,428**<br>|81,766<br>|
|||**2,214,924**<br>|2,055,630<br>|



In addition to the staff costs above, there are further costs relating to operational staff and paramedics included within 'Operating costs' which are paid by way of a service level agreement. We also provided a clinical team including paramedics, doctors, dispatch and a senior consultant. 

The Trustees decided that the charity should pay the full cost of the service provision from 2020/21 and therefore the charity now receives no government funding for clinical costs. 

The costs of the Charity shop management staff (within the subsidiary company) are included within fundraising costs. 

The key management personnel of the Charity comprise the senior management team and are listed in the legal and administrative information on page 3.  The total employee benefits of the key management personnel of the Charity were £313,281 (2020: £415,441). 

34 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

The average number of employees, analysed by function was as follows: 

||**Year ended**|Year ended|
|---|---|---|
||**31 March**|31 March|
||**2021**|2020|
||**Number**|Number|
|Fundraising|**28**|27|
|Administration|**13**|13|
|Commercial|**49**<br>|44<br>|
||**90**<br>|84<br>|
|The remuneration package of the higher paid employees was:|||
||**2021**|2020|
||**No**|No|
|£70,001 - £80,000|**1**|-|
|£80,001 - £90,000|**1**|2|
|£110,001 - £120,000|**1**<br>|1<br>|



The Trustees received no remuneration from the Charity (2020: £nil), reimbursement of expenses during the year totalled £nil (2020: £nil).  During the year professional indemnity insurance was purchased relating to all of the Trustees, at a cost of £2,030 _(_ 2020: _£_ 2,020 _)_ . 

During the year there were redundancy or termination payments which amounted to £nil (2020-: £16,312). 

## 8a **Support costs** 

Support costs are allocated to fundraising and direct charitable expenditure as follows (on the basis outlined below): 

|Cost of raising funds<br>Staff cost and travel<br>Office and utility costs<br>Stationery, postage and telephone<br>Events and consultancy<br>Advertising and website<br>Professional fees and other costs<br>Governance costs|**Total**<br>**2021**<br>**Charitable**<br>**Activities**<br>**Fundraising**<br>**Costs**<br>**Total**<br>**2020**<br>**117,509**<br>**-**<br>**117,509**<br>106,036<br>**1,489,985**<br>**744,993**<br>**744,992**<br>1,592,366<br>**115,085**<br>**57,543**<br>**57,542**<br>112,028<br>**12,513**<br>**6,257**<br>**6,256**<br>31,010<br>**106,933**<br>**-**<br>**106,933**<br>55,528<br>**131,917**<br>**-**<br>**131,917**<br>112,361<br>**170,132**<br>**42,533**<br>**127,599**<br>205,140<br>**36,812**<br>**36,812**<br>**-**<br>40,877|
|---|---|
||**2,180,886**<br>**888,138**<br>**1,292,749**<br>2,255,346|



35 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 8b **Support costs – Basis of allocation** 

Support costs are allocated to fundraising and direct charitable expenditure on the basis outlined below: 

|Costs of raising funds<br>Staff cost and travel<br>Office and utility costs<br>Events and consultancy<br>Stationery and postage<br>Advertising and website<br>Professional fees and other costs<br>Governance costs|**Total**<br>**Charitable**<br>**Activities**<br>**Fundraising**<br>**Costs**<br>**Basis of**<br>**allocation**<br>**117,509**<br>0%<br>100%<br>Nature of<br>service<br>**1,489,985**<br>50%<br>50%<br>Staff<br>numbers<br>**115,085**<br>50%<br>50%<br>Staff<br>numbers<br>**106,933**<br>0%<br>100%<br>Nature of<br>service<br>**12,513**<br>50%<br>50%<br>Staff<br>numbers<br>**131,917**<br>0%<br>100%<br>Nature of<br>services<br>**170,132**<br>25%<br>75%<br>Nature of<br>services<br>**36,812**<br>100%<br>0%<br>Nature of<br>services<br>**2,180,886**|
|---|---|



## 8c **Governance costs** 

|Non fundraising related professional fees<br>Auditors fees – audit and accounts<br>Bank charges and other|**Year**<br>**ended**<br>**31 March**<br>**2021**<br>**£**<br>**5,644**<br>**24,183**<br>**6,985**<br> <br>**36,812**<br>|Year<br>ended<br>31 March<br>2020<br>£<br>10,548<br>24,350<br>5,979<br> <br>40,877<br>|
|---|---|---|



## 9 **Taxation** 

Neither the Charity nor its subsidiary companies had any liability to corporation tax during the year. 

36 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|10<br>**Tangible Fixed Assets**<br>**Group**<br>**Cost**<br>At 1 April 2020<br>Additions<br>At 31 March 2021<br>**Depreciation**<br>At 1 April 2020<br>Charge for the year<br>At 31 March 2021<br>**Net Book Value**<br>31 March 2021<br>31 March 2020|**Plant &**<br>**machinery**<br>**£**<br>**639,001**<br>**49,539**<br> <br>**688,540**<br> <br>**256,017**<br>**116,119**<br> <br>**372,136**<br> <br>**316,404**<br> <br>382,984<br>|**Office and**<br>**computer**<br>**equipment**<br>**Motor Vehicles**<br>**£**<br>**£**<br>**337,061**<br>**112,182**<br>**19,743**<br>**-**<br> <br> <br>**356,804**<br>**112,182**<br> <br> <br>**116,732**<br>**41,332**<br>**65,642**<br>**19,225**<br> <br> <br>**182,374**<br>**60,557**<br> <br> <br>**174,430**<br>**51,625**<br> <br> <br>220,329<br>70,850<br> <br>|**Total**<br>**£**<br>**1,088,244**<br>**69,282**<br> <br>**1,157,526**<br>|
|---|---|---|---|
||||**414,081**<br>**200,986**<br> <br>**615,067**<br>|
||||**542,459**<br>|
||||674,163<br>|



37 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|**Charity**<br>**Plant &**<br>**machinery**<br>**Cost**<br>**£**<br>At 1 April 2020<br>**265,293**<br>Additions<br>**43,656**<br> <br>At 31 March 2021<br>**308,949**<br> <br>**Depreciation**<br>At 1 April 2020<br>**142,947**<br>Charge for the year<br>**41,421**<br> <br>At 31 March 2021<br>**184,368**<br> <br>**Net Book Value**<br>31 March 2021<br>**124,581**<br> <br>31 March 2020<br>122,345<br> <br>|**Office and**<br>**computer**<br>**equipment**<br>**£**<br>**268,478**<br>**19,743**<br> <br>**288,221**<br> <br>**72,284**<br>**54,175**<br> <br>**126,459**<br> <br>**161,762**<br> <br>196,195<br>|**Motor**<br>**Vehicles**<br>**£**<br>**112,182**<br>**-**<br> <br>**112,182**<br> <br>**41,332**<br>**19,225**<br> <br>**60,557**<br> <br>**51,625**<br> <br>70,850<br>|**Total**<br>**£**<br>**645,953**<br>**63,399**<br> <br>**709,352**<br>|
|---|---|---|---|
||||**256,563**<br>**114,821**<br> <br>**371,384**<br>|
||||**337,968**<br>|
||||389,390<br>|



38 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

## 11 **Intangible Fixed Assets- Group** 

|**Software**<br>**Goodwill**<br>**£**<br>**£**<br>**Cost**<br>At 1 April 2020<br>**25,183**<br>**125,000**<br>  <br> <br>At 31 March 2021<br>**25,183**<br>**125,000**<br>**Amortisation**<br>At 1 April 2020<br>**16,229**<br>**125,000**<br>Amortisation in the year<br>**8,394**<br>**-**<br>  <br> <br>At 31 March 2021<br>**24,623**<br>**125,000**<br>**Net Book Value**<br>At 31 March 2021<br> **560**<br>**-**<br>At 31 March 2020<br> 8,954<br> -<br>12**Fixed Asset Investments**<br>**Group**<br>**2021**<br>**£**<br>Carrying value (MV) at beginning of year<br>**9,963,318**<br> <br>Disposals at carrying value<br>**-**<br>Net gain/(loss) on revaluation<br>**971,936**<br> <br> <br>Carrying value (MV) at end of year<br>**10,935,254**<br> <br> <br>Historical cost of above investment at the end of the year<br>**10,000,000**<br> <br>Analysis or investment value by type:<br>**2021**<br>**£**<br>Diversified Growth Funds<br>**5,575,531**<br>Liquidity funds<br>**5,359,723**<br> <br>**10,935,254**<br>|**Total**<br>**£**<br>**150,183**<br> <br>**150,183**<br>**141,229**<br>**8,394**<br> <br>**149,623**<br>**560**<br>8,954<br>2020<br>£<br>10,314,699<br>(37,560)<br>(313,821)<br> <br>9,963,318<br> <br>10,000,000<br>2020<br>£<br>4,613,243<br>5,350,075<br> <br>9,963,318<br>|
|---|---|



39 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

|**Charity**<br>**2021**<br>**£**<br>Investments in listed securities<br>**10,427,275**<br>Investments in subsidiary entities<br>**11,502**<br> <br>**10,438,777**<br> <br>|2020<br>£<br>9,456,253<br>11,502<br> <br>9,467,755<br>|
|---|---|



Investments were significantly impacted late in 2020/21 due to the global pandemic.  Values have recovered to some extent in 2021/22 but markets remain volatile. 

|**Investment in subsidiary entities**|**2021**|2020|
|---|---|---|
||**£**|£|
|Ordinary £1 shares in North West Air Ambulance|||
|Promotions Limited – at market value|**11,502**|11,502|



The historical cost of these investments was £11,502 (2020: £11,502). 

The Charity has two subsidiaries, North West Air Ambulance Promotions Limited, a company incorporated in England and Wales (Company Number: 03752582) and Friends of the North West Air Ambulance Lottery CIC (Registered Number 6646759) which are consolidated into the results of the North West Air Ambulance.  The Charity owns the entire share capital of North West Air Ambulance Promotions Limited, being 11,502 ordinary shares.  The Charity is the sole member of Friends of the North West Ambulance Lottery CIC.  The companies raised funds for the North West Air Ambulance during the year. 

Audited Financial Statements of North West Air Ambulance Promotions Limited and Friends of the North West Air Ambulance Lottery CIC for the year ended 31 March 2021 are filed with the Registrar of Companies. A summary of the trading results of North West Air Ambulance Promotions Limited and Friends of the North West Air Ambulance Lottery CIC are shown below: 

## **North West Air Ambulance Promotions Limited** 

||**2021**|2020|
|---|---|---|
||**£**|£|
|**Turnover**|**683,141**|1,571,768|
|Cost of sales|**(45,348)**<br>|(97,063)<br>|
|**Gross profit**|**637,793**|1,474,705|
|Administrative expenses|**(1,551,042)**|(1,475,379)|
|Other operating income|**774,654**<br>|-<br>|
|Operating loss|**(138,595)**|(674)|
|Interest payable|**(9,375)**<br>|(9,375)<br>|
|Loss on ordinary activities after tax|**(147,970)**<br>|(10,049)<br>|



40 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|The aggregate of assets, liabilities and reserves are:<br>Assets<br>Liabilities<br>Total reserves (including £11,502 share capital)<br>**North West Air Ambulance Lottery CIC**<br>**Turnover**<br>Cost of sales<br>**Gross Surplus**<br>Administration expenses<br>**Operating Surplus**<br>Interest receivable and similar income<br>**Surplus for the Financial Year**<br>Gift Aid Payment<br>**Total Comprehensive Income**<br>The aggregate assets, liabilities and reserves are:<br>Assets<br>Liabilities<br>Total reserves|**2021**<br>**£**<br>**283,583**<br>**(369,374)**<br> <br>**(85,791)**<br> <br>**2021**<br>**£**<br>**5,265,609**<br>**(196,348)**<br> <br>**5,069,261**<br>**(133,713)**<br> <br>**4,935,548**<br>**915**<br> <br>**4,936,463**<br>**(4,935,548)**<br> <br>**915**<br> <br>**2021**<br>**£**<br>**1,368,884**<br>**(1,340,693)**<br> <br>**28,191**<br>|2020<br>£<br>635,867<br>(573,688)<br> <br>62,179<br> <br>2020<br>£<br>5,425,200<br>(702,780)<br> <br>4,722,420<br>(150,176)<br> <br>4,572,244<br>4,069<br> <br>4,576,313<br>(4,572,538)<br> <br>3,775<br> <br>2020<br>£<br>1,833,604<br>(1,806,328)<br> <br>27,276<br>|
|---|---|---|



The consolidated statements of financial activities includes the results of the subsidiary companies. 

41 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 13 **Debtors** 

|Trade debtors<br>Amounts owed by subsidiary<br>undertakings<br>Prepayments<br>Accrued income<br>Other debtors|**Group**<br>Group<br>**Charity**<br>Charity<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**7,825**<br>5,076<br>-<br>-<br>**-**<br>-<br>**1,161,327**<br>1,754,702<br>**341,867**<br>341,020<br>**281,316**<br>264,494<br>**235,131**<br>304,081<br>**204,274**<br>219,762<br>**104,311**<br>71,178<br>**104,311**<br>71,178|
|---|---|
||**689,134**<br>721,355<br>**1,751,228**<br>2,310,136|



Debtors includes £250,000 (2020: £250,000) due after more than one year which relates to a loan from North West Air Ambulance to North West Air Ambulance Promotions Limited.  Interest is charged at 3.75% per annum. 

## 14 **Creditors: amounts falling due within one year** 

|Trade creditors<br>Sundry creditors<br>Social security and other taxes<br>Bank overdraft<br>Accruals<br>Prepaid Subscriptions|**Group**<br>Group<br>**Charity**<br>Charity<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**357,990**<br>**-**<br>**40,459**<br>135,303<br>-<br>43,263<br>**335,016**<br>**-**<br>**34,669**<br>44,802<br>-<br>31,951<br>**68,281**<br>-<br>**-**<br>-<br>**1,130,448**<br>**456,342**<br>1,306,782<br>482,669<br>**1,080,538**<br>**-**<br>1,265,950<br>-|
|---|---|
||**2,053,520**<br>1,968,017<br>**1,450,223**<br>1,342,703|



The group has an overdraft facility under the government backed CBILS scheme.  The bank overdraft is secured by a standard mortgage debenture incorporating a fixed and floating charge over the assets of North West Air Ambulance Promotions Limited. 

42 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 15 **Reconciliation of movement in funds** 

|**Charity**|**1 April 2020**|**Incoming**|**Outgoing**|**Gains/**|**Transfers**|**31 March**|
|---|---|---|---|---|---|---|
|||**resources**|**resources**|**(losses)**||**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Mrs Kluziac|56,094|-|(16,200)|-|-|39,894|
|Coin cards|21,004|-|(21,004)|-|-|-|
|UKH Foundation|6,500|149|-|-|-|6,649|
|Zochonis Charitable Trust|7,000|-|-|-|-|7,000|
|Zochonis Charitable Trust|7,000|-|-|-|-|7,000|
|Henry Surtees Foundation|1,773|-|(1,773)|-|-|-|
|Houghton Dunn Charitable|<br>10,000|-|(10,000)|-|-|-|
|Trust|||||||
|Peter Kershaw Trust|572|-|-|-|-|572|
|The Fort Foundation|1,000|-|(1,000)|-|-|-|
|Dobson Funds|930|-|-|-|-|930|
|B & M|13,273|-|-|-|-|13,273|
|The Grace Trust|4,000|-|-|-|-|4,000|
|Awards for All (National|7,237|-|-|-|-|7,237|
|Lottery Community Fund)|||||||
|The Eric Wright Charitable|10,000|-|(8,310)|-|-|1,690|
|Trust|||||||
|WO Street Charitable|3,000|-|-|-|-|3,000|
|Foundation|||||||
|The Dixie Rose Findlay|2,400|-|-|-|-|2,400|
|Charitable Trust|||||||
|Houghton Dunn Charitable|15,000|-|-|-|-|15,000|
|Trust|||||||
|Marjorie Boddy Trust|2,500|-|-|-|-|2,500|
|The Ursula Keyes Trust|13,995|-|-|-|-|13,995|
|Lord Leverhulmes|6,000|-|-|-|-|6,000|
|Charitable Trust|||||||
|Brian Wilson Charitable|5,000|-|-|-|-|5,000|
|Trust|||||||
|Steel Charitable Trust|-|10,000|-|-|-|10,000|
|JD Haugh|-|5,000|(5,000)|-|-|-|
|UKH Foundation – Redfern|-|6,792|(2,072)|-|-|4,720|
|Medicash|-|5,000|(5,000)|-|-|-|
|Sharples|-|625|(625)|-|-|-|
|Westminster Foundation|-|4,500|(4,500)|-|-|-|
|The Fort Foundation|-|1,000|(1,000)|-|-|-|
|Cheetham|-|2,500|(2,500)|-|-|-|
|Air Ambulance UK|-|374,375|(374,375)|-|-|-|
|Lions Clubs|-|10,866|(10,866)|-|-|-|
|Alec Burford|-|500|(500)|-|-|-|
|John Zochnonis|-|3,500|-|-|-|3,500|
|AAA UK – Julia & Hans|-|2,381|(2,381)|-|-|-|
|Rausing Trust|||||||
|VM Ward|-|2,000|(2,000)|-|-|-|
|The Skelton Charity|-|1,000|-|-|-|1,000|
|Clifford Kay|-|125|(125)|-|-|-|



43 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|The Ursula Keyes Trust – D<br>Lawless<br>The Williams Family<br>Foundation<br>**Unrestricted funds**<br>General<br>Designated<br>**Total funds**|<br>-<br>7,674<br>-<br>-<br>-<br>7,674<br>-<br>7,674<br>-<br>-<br>-<br>7,674|
|---|---|
||194,279<br>445,660<br>(469,231)<br>-<br>-<br>170,709|
||9,869,566<br>8,200,556<br>(7,025,891)<br>990,481<br>1,332,519<br>13,367,231<br>5,891,586<br>-<br>-<br>-<br>(1,332,519)<br>4,559,067|
||15,761,152<br>8,200,556<br>(7,025,891)<br>990,481<br>-<br>17,926,298|
||15,955,431<br>8,646,216<br>(7,495,122)<br>990,481<br>-<br>18,097,007|



44 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

15 **Reconciliation of movement in funds (continued)** 

|**Group**|**1 April 2020**|**Incoming**|**Outgoing**|**Gains/**|**Transfers**|**31 March**|
|---|---|---|---|---|---|---|
|||**resources**|**resources**|**(losses)**||**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Mrs Kluziac|56,094|-|(16,200)|-|-|39,894|
|Coin cards|21,004|-|(21,004)|-|-|-|
|UKH Foundation|6,500|149|-|-|-|6,649|
|Zochonis Charitable Trust|7,000|-|-|-|-|7,000|
|Zochonis Charitable Trust|7,000|-|-|-|-|7,000|
|Henry Surtees Foundation|1,773|-|(1,773)|-|-|-|
|Houghton Dunn Charitable|<br>10,000|-|(10,000)|-|-|-|
|Trust|||||||
|Peter Kershaw Trust|572|-|-|-|-|572|
|The Fort Foundation|1,000|-|(1,000)|-|-|-|
|Dobson Funds|930|-|-|-|-|930|
|B & M|13,273|-|-|-|-|13,273|
|The Grace Trust|4,000|-|-|-|-|4,000|
|Awards for All (National|7,237|-|-|-|-|7,237|
|Lottery Community Fund)|||||||
|The Eric Wright Charitable|10,000|-|(8,310)|-|-|1,690|
|Trust|||||||
|WO Street Charitable|3,000|-|-|-|-|3,000|
|Foundation|||||||
|The Dixie Rose Findlay|2,400|-|-|-|-|2,400|
|Charitable Trust|||||||
|Houghton Dunn Charitable|15,000|-|-|-|-|15,000|
|Trust|||||||
|Marjorie Boddy Trust|2,500|-|-|-|-|2,500|
|The Ursula Keyes Trust|13,995|-|-|-|-|13,995|
|Lord Leverhulmes|6,000|-|-|-|-|6,000|
|Charitable Trust|||||||
|Brian Wilson Charitable|5,000|-|-|-|-|5,000|
|Trust|||||||
|Steel Charitable Trust|-|10,000|-|-|-|10,000|
|JD Haugh|-|5,000|(5,000)|-|-|-|
|UKH Foundation – Redfern|-|6,792|(2,072)|-|-|4,720|
|Medicash|-|5,000|(5,000)|-|-|-|
|Sharples|-|625|(625)|-|-|-|
|Westminster Foundation|-|4,500|(4,500)|-|-|-|
|The Fort Foundation|-|1,000|(1,000)|-|-|-|
|Cheetham|-|2,500|(2,500)|-|-|-|
|Air Ambulance UK|-|374,375|(374,375)|-|-|-|
|Lions Clubs|-|10,866|(10,866)|-|-|-|
|Alec Burford|-|500|(500)|-|-|-|
|John Zochnonis|-|3,500|-|-|-|3,500|
|AAA UK – Julia & Hans|-|2,381|(2,381)|-|-|-|
|Rausing Trust|||||||
|VM Ward|-|2,000|(2,000)|-|-|-|
|The Skelton Charity|-|1,000|-|-|-|1,000|
|Clifford Kay|-|125|(125)|-|-|-|



45 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|The Ursula Keyes Trust – D<br>Lawless<br>The Williams Family<br>Foundation<br>**Unrestricted funds**<br>General<br>Designated<br>**Total funds**|<br>-<br>7,674<br>-<br>-<br>-<br>7,674<br>-<br>7,674<br>-<br>-<br>-<br>7,674|
|---|---|
||194,279<br>445,660<br>(469,231)<br>-<br>-<br>170,709|
||9,947,519<br>9,979,040<br>(8,952,358)<br>991,395<br>1,332,519<br>13,298,114<br>5,891,586<br>-<br>-<br>-<br>(1,332,519)<br>4,559,067|
||15,839,105<br>9,979,040<br>(8,952,358)<br>991,395<br>-<br>17,857,181|
||16,033,384<br>10,424,700<br>(9,421,589)<br>991,395<br>-<br>18,027,890|



The designated fund of £4,559,067 shown above has been earmarked to cover two years annual lease commitments as described in note 17 and the Annual Report.  It is imperative that the Charity is able to meet these costs before committing other expenditure. 

The restricted balance called Mrs Kluziac relates to a legacy received in previous years of £61K which is to be used against future training costs. 

The balance of £21K Coin Cards was a specific campaign to raise funds specifically for the future cost of new helmets for the crew. 

The Life Pack for RU Fund is money towards the future purchase of Life Packs for the RU medical vehicle. 

The UKH Foundation was a trust application to help towards the purchase of 15 defibrillators. 

The Skelton Bounty Fund is to be used for the purchase of helmets. 

The Zochonis Charitable Trust is money to assist in the purchase of a defibrillator for the response vehicle. The Henry Surtees Foundation is funding for the initial cost of hardware items to set up the Blood on Board project. 

The Houghton Dunn Charitable Trust is money to assist in purchasing 2 Quin Flow machines. 

The Peter Kershaw Trust is money to purchase video laryngoscopes. 

The Fort Foundation is funds to assist in the purchase of a second response vehicle. 

The Grace Trust is money for a community defibrillator. 

Dobson Funds is money for medical equipment. 

Awards for All is money for volunteer inclusion and recognition events. 

The Eric Wright Charitable Trust and The Medicash Foundation is money for Lucas Devices. 

The W O Street Charitable Foundation, Lord Leverhulme Charitable Trust and Brian Wilson Charitable Trust is money for video laryngoscopes. 

46 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

The Dixie Rose Findlay Charitable Trust is money for shop defibrillators. 

The Marjorie Boddy Trust and The Ursula Keyes Trust is money for lifepacks. 

All balances on the balance sheet relate to the unrestricted funds with the exception of restricted funds which are represented by cash. 

The Steel Charitable Trust is funding for new life packs. 

JD Haugh, Sharples, Westminster Foundation, The Fort Foundation, Cheetham, Alec Burford, AAA UK – Julia & Hans Rausing Trust, VM Ward and Clifford Kay is funding for Covid19 PPE. 

The Skelton Charity, The Ursula Keyes Trust – D Lawless and The Williams Family Foundation is funding for parapacs. 

The UKH Foundation and Lion Clubs is funding for Qinflow machines. 

The Medicash is funding for fluid warmers. 

The John Zochonis is funding for Lucas machines. 

The Air Ambulances UK funding was for Covid19 funding. 

## 16 **Analysis of Net Assets between Funds** 

|**Group**<br>Fixed assets<br>Current assets<br>Current liabilities<br>**Group**<br>Fixed assets<br>Current assets<br>Current liabilities|**Unrestricted**<br>**Restricted**<br>**Total**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**11,478,273**<br>**-**<br>**11,478,273**<br>**8,432,428**<br>**170,709**<br>**8,603,137**<br>**(2,053,520)**<br>**-**<br>**(2,053,520)**|
|---|---|
||**17,857,181 **<br>**170,709**<br>**18,027,890**|
||**Unrestricted**<br>**Restricted**<br>**Total**<br>**2020**<br>**£**<br>**£**<br>**£**<br>10,646,435<br>-<br>10,646,435<br>7,160,687<br>194,279<br>7,354,966<br>(1,968,017)<br>-<br>(1,968,017)|
||15,839,105<br>194,279<br>16,033,384|



47 



## **NORTH WEST AIR AMBULANCE** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## 17 **Operating lease commitments** 

Future minimum lease repayments under non-cancellable operating leases for the following periods are: 

|**Group**<br>Within 1 year<br>After 1 year and less than 5 years<br>Total operating lease commitments|**Property**<br>**Helicopters**<br>**Total**<br>**2021**<br>**Total**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**146,533**<br>**2,133,000**<br>**2,279,533**<br>2,945,793<br>**503,500**<br>**-**<br>**503,500**<br>2,785,923|
|---|---|
||**650,033**<br>**2,133,000**<br>**2,783,033**<br>5,731,716|



## 18 **Related party transactions** 

The Trustee directors of the Charity are also directors of the trading subsidiaries: North West Air Ambulance Promotions Limited and Friends of the North West Air Ambulance Lottery CIC.  The transactions with these entities are consolidated with the results of the Charity and as such do not require separate disclosure. 

D Head, a Trustee, is a partner at KPMG LLP (UK) who provided investment advice until February 2020.  During the year £nil (2020: £17,400) was paid to KPMG LLP (UK). 

There are no other related party transactions that need to be disclosed in the financial statements. 

## 19 **Financial Instruments** 

|**Group**<br>Financial assets measured at amortised cost<br>Financial liabilities measured at fair value<br>Financial liabilities measured at amortised cost|**2021**<br>**£**<br>**8,231,112**<br>**10,935,254**<br>**2,013,061**|2020<br>£<br>6,979,682|
|---|---|---|
|||9,963,318|
|||1,924,754|



Financial assets at amortised cost consist of cash, trade debtors and other debtors 

Financial assets held at fair value include assets held as investments 

Financial liabilities at amortised cost consist of trade creditors and other creditors 

48 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **NORTH WEST AIR AMBULANCE** 

## 20. **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES – Comparative figures by fund type** 

|**Notes**<br>**Income from:**<br>Donations and legacies<br>4<br>Other trading activities<br>5<br>Investments<br>3<br>**Total**<br>**Expenditure on:**<br>**_Raising funds:_**<br>Commercial trading operations<br>Other fundraising costs<br>6<br>**_Charitable activities_**<br>Cost of operation of the North<br>West Air Ambulance<br>6<br>**Total**<br>6<br>**Net Income**<br>**Other recognised gains**<br>(Losses)/gains on investments<br>12<br>Net movement in funds<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**<br>15|**Restricted**<br>**funds total**<br>**Year ended**<br>**31 March**<br>**2020**<br>**Unrestricted**<br>**funds total**<br>**Year ended**<br>**31 March**<br>**2020**<br>**Funds total**<br>**Year ended**<br>**31 March**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**88,658**<br>**4,981,792**<br>**5,070,450**<br>**-**<br>**6,914,719**<br>**6,914,719**<br>**-**<br>**36,349**<br>**36,349**|
|---|---|
||**88,658**<br>**11,932,860**<br>**12,021,518**|
||**-**<br>**2,425,398**<br>**2,425,398**<br>**-**<br>**1,295,482 **<br>**1,295,482 **|
||**-**<br>**3,720,880**<br>**3,720,880**<br>**43,841**<br>**6,128,009**<br>**6,171,850**|
||**43,841**<br>**9,848,889**<br>**9,892,730**|
||**44,817**<br>**2,083,971**<br>**2,128,788**<br>**-**<br>**(349,876)**<br>**(349,876)**|
||**44,817**<br>**1,734,095**<br>**1,778,912**<br>**149,462 **<br>**14,105,010**<br>**14,254,472**|
||**194,279**<br>**15,839,105**<br>**16,033,384 **|



49