2021-03-31-accounts

Registered Number: 04436859 Charity Number: 1092204

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees’ report and financial statements

31 March 2021

The Great North Air Ambulance Service

(A company limited by guarantee)

Contents =SSSSSS

	Page
Trustees’ report	01-19
Independent auditors' report to the trustees ofthe
Great North AirAmbulance Service	20 - 23
Consolidated statement offinancial activities	24
Companystatement offinancial activities	25
Consolidated balance sheet	26
Company balance sheet	27
Consolidated cash flow statement	28
Notestothefinancialstatement	29-42

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees and professional advisors for the year ended 31 March 2021 ——

The trustees confirm that the annual report and financial statements of the company and the group comply with the Charities Act 2011, the Companies Act 2006, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities (FRS 102)’ effective from 1 January 2015.

Trustees	MrB Jobling, Chair
	MrJ Devine
	Dr K Han
	Mr P Turner (resigned 31 July 2020)
	MrsJTrench
	Mr S Groves OBE
	Ms D Dunn
	Mr P Neal
	Prof M Defeyter
	Mrs CVaughan (appointed 29 January 2021)
Company registered number	04436859
Charity registered number	1092204
Registered office	Progress House
	Urlay Nook Road
	Eaglescliffe
	Stockton-on-Tees
	TS16 0QB
Company secretary	Muckle Secretary Limited
Chief executive officer	MrG PickeringMBE (resigned 29 March 2021)
	MrD Stockton (appointed 8 February 2021)
Independent auditors	UNW LLP
	Chartered Accountants
	Citygate
	St James' Boulevard
	Newcastle uponTyne
	NE1 4JE
Bankers	Royal Bank ofScotland
	Drummond House
	1 Redheughs Avenue
	Edinburgh
	EH12 9JN
Solicitors	Muckle LLP
	32 Gallowgate
	Newcastle upon Tyne
	Tyne and Wear
	NE1 4BF
=
	Page1

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report

for the year ended 31 March 2021

The trustees (who are also directors of the charity for the purposes of the Companies Act) present this their annual report together with the audited financial statements of The Great North Air Ambulance Service (the company and the group) for the year ended 31 March 2021. This report includes the directors’ report as required by company law. This report includes the directors’ report as required by company law.

Strategic Report

Throughout the year, COVID-19 has thrown significant challenges our way.

From an operational perspective the bulk of the work in the early part of the year focussed on issues around the acquisition of PPE and the complex area of ongoing risk assessment based on growing understanding of the way the virus is transmitted. We have maintained our service throughout, and we can proudly say that through the measures put in place we have not lost a minute of service. During the crisis, we have flown on, providing critical care, preserving the ability to fly patients through rapid adaptations to the aircraft and delivering the service to the people of the North that we are so very proud of.

From a fundraising perspective, we are incredibly grateful for the continued support the public has shown us - we appreciate the significant human challenges our communities have faced, and we are humbled by their generosity. Sadly, despite this incredible support, our fundraising activity and donation income has been impacted by the pandemic. The government’s furlough scheme helped us to protect jobs in these areas throughout the early part of the crisis, and this will put us in a much stronger position to recover as restrictions on the movement of people, and therefore our fundraising, begin to lift. Our team have shown a huge level of resilience and we welcome their continued support.

The external training calendar was also postponed. The training faculty remain highly motivated and are planning their return to course delivery once the situation allows, with course directors taking a lead on moving courses forward.

All operations of our Trading Company had to cease in late March 2020. To protect our trading subsidiary for the longer term, several measures were taken to minimise costs including use of the furlough scheme for the majority of employees. Ad-hoc collections resumed in June 2020, and we continued to monitor the situation to allow us to make an informed decision as to when it is safe to re-start our door-to-door collections.

As we neared the end of the year, the charity began preparation for a new era after its founder left the organisation due to ill health.

Grahame Pickering MBE, who started the Great North Air Ambulance Service (GNAAS), departed the organisation due to ongoing health issues after more than 20 years of dedicated service.

Mr Pickering built GNAAS from the ground up and introduceda series of initiatives in the region that have gone on to become commonplace throughout the UK, including carrying doctors on board air ambulance missions. The charity simply would not exist if not for Grahame’s tenacity in getting it off the ground.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021 — ees —eeeeeeeseeeeeeeee_ En

With the generous support of the public, the charity has prevented many unnecessary deaths and relieved serious suffering throughout our region, as well as taking a pivotal role in the development and training of emergency critical care.

In 2011, in recognition of his humanity, dedication and success, Grahame was awarded an MBE for emergency health care - an award recognising not just his contribution but the support of many within the industry and the wider community. We wish him well for the future.

David Stockton was appointed as the charity’s in-coming CEO towards the end of the year. This was a hugely sought-after role, and after a very competitive recruitment process the trustees were delighted to appoint David as chief executive.

It is a challenging time for all charities, the effect of COVID-19 has been stark on our finances and David has just the right mix of skills, experience and strength of character to lead this organisation into a bold and bright future.

David brings decades of experience in the commercial sector to GNAAS. David previously ran his own businesses, focussing primarily on healthcare and retail and he also spent the last five years working at board level within a multi-billion-pound company.

David’s immediate focus is on helping the charity emerge out of the coronavirus crisis, and beyond that, to support the delivering of the charity’s strategic aims and continued ambition to expand services so that more people can benefit from our life-saving services.

Our aims and objectives

Our vision is to provide a world-class pre-hospital care service for the people of the region.

The principal objects of the charity are:

• e To promote the relief of sickness within the counties of Cumbria, Northumberland and Durham and surrounding areas by the provision of an air ambulance service.

• © To provide and maintain or assist with the provision and maintenance of aircraft and other ancillary and associated equipment.

• e The advancement of education and training of medical professionals and health care personnel in medical disciplines with particular reference to emergency and pre-hospital care.

Our mission is to extend and constantly seek to improve emergency pre-hospital and inter-hospital critical care across our region.

Everything we do is focused around the delivery of world-class care for our patients, but the impact is felt far beyond this group of people. Our impact extends to their families, their friends and colleagues, those we train, our healthcare partners and the communities involved in fundraising activity.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

Strategy for achieving the objectives

Our strategic aims for 2020 onward

In October 2019 the trustees worked with the management team to develop the strategic aims for the next 3-5 years. These are:

• © Put people at the heart of our strategy

• e Operate safely, efficiently and effectively

• e Increase service capability across areas of operation

• e Revise and update the clinical plan to support the delivery of our Mission

• e Develop and deliver world-class research, education and training e Developa financial plan to sustain and grow income generation e Toconsolidate and optimize the infrastructure which supports the furtherance of the objects

Work toward these objectives has begun, albeit more slowly than it might have given the added challenges COVID-19 has presented.

Ordinarily the trustees review the aims and objectives of the charity on an annual basis. The review looks at progress made toward the achievement of the agreed strategic aims and re-examines them, along with the aims and objectives, to ensure they remain relevant and continue to support the delivery and continued improvement of the charity’s services. Due to the impact of COVID-19, the focus during the year has been on continued delivery against agreed aims.

We measure our success by the improvement in pre-hospital and inter-hospital emergency care across the region. In addition to the expertise of our clinicians, our research, training, fundraising and support services are all integral part of securing this success. However, none of this would be possible without the on-going charitable support of the public that makes all of this possible.

Achievements and performance

Achievements

2020/21 was the first year of our new strategic plan and activity has therefore been focused on working to develop the aims for the next 3-5 years.

Throughout the year we have faced the human, operational, and financial challenges presented by COVID-19. These challenges continue and, for that reason, we have included within this report details of our response to these challenges and an indication of what this means for the charity.

Highlights of our achievements against our key strategic aims are set out below.

Put people at the heart of our strategy

This strategic aim is focussed not only on our staff. It is also concerned with our patients, their families, our supporters, and our volunteers.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021 eee eT In early 2020 the executive team commenced a programme of staff engagement events designed to provide a forum for staff to share information, voice concerns, and promote a culture of openness and transparency across the organisation. Whilst COVID-19 has meant we cannot physically meet we have maintained communication and engagement with the use of a weekly virtual update that is open to all members of our team. The session provides a platform to provide updates to colleagues, and to keep in touch.

A number of activities were also undertaken to gain feedback from across the organisation. The feedback allowed us to focus on areas where working practices could be improved.

During the year we asked for volunteers from across the charity to come forward to act as mental health champions. These team members have attended specialist training and are working together to help to raise awareness of, and promote, positive mental health and to signpost to relevant support and help, where appropriate.

Opportunities to meet our supporters and volunteers have been significantly restricted across the year and we have further developed our use of social media and other digital channels to enable our existing and potential supporters to engage with us remotely. Our activities included the launch of virtual fundraising events, which were well received and well supported.

We look forward to welcoming people back to Progress House once the current restrictions begin to lift and it is safe to do so.

Operate safely, efficiently and effectively

As would be expected, our primary focus at the start of the year was to respond to the challenges of COVID-19 with the primary aim of maintaining our service for those who need it most.

On the front-line we would always be at the highest risk, and because we have to work as a team this infection could be easily spread. Indirectly, we were facing the loss of staff, with doctors possibly being redeployed back into the NHS.

With this in mind, and because we cover the largest area of any charitable air ambulance in the UK, we had to find a way to fly patients safely. The initial guidance was that air ambulances could not be used to transport patients, but we looked at our rural communities and knew that this could mean the difference between life and death.

With our aviation partner Multiflight we began to look at ways to minimise risk to the pilot - who unlike other crew members is unable to wear the appropriate PPE. We made and installed Perspex screens to separate the pilot from the patient. This gave us the ability to fly those patients who, put simply, would die without that flight.

Just as we wanteda solution for the aircraft, we also aimed towards a firm solution for PPE. This came in the form of respirator hoods. These can be decontaminated and offer very high levels of protection during those high-risk procedures.

During this time our clinical care continued to be rigorously examined and improved through our clinical governance structures and crew debriefing techniques. This ongoing work ensures that we continue to develop, refine and learn from the critical care we deliver.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

All operational crew have an in-depth annual appraisal and analysis of their performance where strengths are highlighted, and areas of improvement formalised. It is with great credit to the team that everyone’s commitment to continued development means this has been embraced by the crews and is now part of our culture.

As reported in our last annual report, in 2019 we secured a deal on a new helicopter. The Dauphin N3+ aircraft can fly for longer and safely carry heavier loads, among many other advantages, and replaces one of our helicopters, which are each around thirty years old. Once secured the team began a detailed project to redesign the inside of the aircraft and overhaul the equipment we carry. This has led to some brilliant design work, the principles of the project were around simplicity, ergonomics and infection control. Having a minimal style of cabin means cleaning is more effective and safer. Without the foresight of COVID-19 this has proven to be an excellent decision.

This aircraft went live in July 2020 and coincided with the move of our critical care teams from Teesside International Airport to Progress House, our headquarters near Eaglescliffe, concluding the work to rationalise our facilities and provide a long-term home for the charity.

Whilst this new aircraft, the Guardian of the North II is capable of operating across our region we continued our search for a replacement aircraft for our Cumbria operations. A suitable Dauphin N3 was identified in late 2020 and actions taken to secure it for the charity. As at the end of March 2021 the aircraft was being refitted to the same specification as the Guardian of the North Il. This second aircraft will be located at our base in Langwathby and will support the on-going sustainability and development of our services. The purchase ofthis aircraft was completed in April 2021.

During the year work also began to further strengthen quality and assurance across the charity. Work is underway to establish concise and meaningful indicators to help assure standards, where these do not currently exist. An assurance panel will provide oversight of quality and compliance through review and audit.

Increase service capability across areas of operation

We have provided an overnight response car in the North East since 2015. With that now established, work has commenced to replicate this model in Cumbria as a further upgrade to the charity’s service in the county. This service will go live in May 2021.

Our aspirations to deliver a full 24/7 rollout across the North East has been impacted by COVID-19 but this remains part of our plans for the future.

The most newsworthy trial carried out during the year was the test the use of a jet suit to deliver care in the Lake District. We knew it would generate some excitement, but we could not have predicted the international attention it would bring. As we spoke to media outlets from around the globe, one of the recurring themes that we kept hearing was how refreshing it was to hear about something so adventurous and positive at a time when coronavirus dominated the global news cycle.

Our initial testing in late summer 2020 was a success and we now plan to undertake the next phase in our exploratory jet suit paramedic project. We hope to demonstrate how jet suit technology, developed by UK-based Gravity Industries, can be used to deliver care to remote and inaccessible

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021 _———— TT EEE locations. We think it could help us reach up to 20 additional patients a week in the Lake District and we hope the next stage of our exploration will demonstrate how this concept could becomea reality.

Revise and update the clinical plan to support the delivery of our Mission

Our commitment to the development of our own clinicians continues with the delivery of internal training days and facilitating courses such as the Dip IMC and FIMC.

Throughout the year we have worked with our clinicians to agree new contracts aimed at supporting the long-term clinical plan for the charity. We will look to further refine these in 2021.

Develop and deliver world-class research, education and training

Delivery of frontline services remained more critical than ever during the height of the pandemic and whilst we were unable to deliver our pre-hospital emergency anaesthesia and pre-hospital emergency crew courses, we continued to support the delivery of mandatory training for colleagues in other lifesaving services across the year. We look forward to resuming our full range of courses in 2021.

Developa financial plan to sustain and grow income generation

Our supporters are critical in allowing us to deliver our services. We employ our own staff who, with the assistance of our volunteer base, are responsible for generating the funds we need to enable us to deliver our clinical services. Our media and communication activities promote awareness of the charity, support fundraising, and manage the reputation of the charity harnessing internal and external media. Social media and digital channels are increasingly important aspects of our communication activity.

The running costs of the charity continue to grow year on year and the costs of replacing and maintaining our aircraft remains a challenge. Added to that we have been faced with COVID-19. Being detached from our supporters and the communities we serve has been incredibly challenging for our fundraising team members and our volunteers.

Our regular fundraising events, that our supporters engage with, were all cancelled or postponed during the year. We have, instead developed virtual fundraising initiatives, and utilised social media channels and on-line networking opportunities to keep in touch with our supporters and volunteers. Whilst this has helped us to maintain a level of donations and fundraising, we look forward to the time when we can see each other face to face.

The generosity of those who remember us in their wills is always invaluable. Gifts in wills, or legacies, generally represent approximately one quarter of our income year on year. This year it makes up a more significant part of our overall income and we are incredibly grateful for this.

Grant applications for small grant schemes are undertaken on a cyclic basis. A number of trusts and foundations have varied their approach during the year, recognising the impact of COVID-19 on charity’s and responding accordingly. The government also put in place emergency funding grants for many sectors, including a package of £750mil of funding support for the Voluntary, Community and Social Enterprise sector, with £360mil of this allocated by government departments to charities providing key services during the COVID-19 crisis. As a charity, with the support of Air Ambulance UK

—— EE EEE EE ee Page 7

(A company limited by guarantee)

The Great North Air Ambulance Service

Trustees annual report for the year ended 31 March 2021 _————EEE (a membership body for air ambulances) we secured £520,000 of this funding via the Department of Health and Social Security.

To consolidate and optimize the infrastructure which supports the furtherance of the objects

We could not deliver our life-saving services without effective and efficient support services and suitable infrastructure that acts as an enabler for our frontline services.

Digital capabilities are increasingly crucial to our service delivery and during the year work commenced on our digital strategy, aimed at developing agreed principles against which digital development and investment will be considered.

We delivered a project to replace our finance system, to improve our financial reporting to aid our future decision making and be more responsive to changing circumstances, and commenced work to identify a HR system that will help us streamline the administrative processes for our staff and volunteers. We also spent time reviewing the structure of our support services to identify areas where we could improve our services.

With the completion of our new operational base and centre of excellence we relocated our operational base from Teesside International Airport, allowing us to exit our lease arrangements at that site and rationalise our facilities.

Performance

Operational performance

From our airdesk at Progress House, we monitor the three areas covered by the North-West, North East and Yorkshire ambulance services, as well as the mountain rescue teams within the North of the UK.

On a bank of screens, we can see emergency calls from the North East Ambulance Service and North West Ambulance Service while they are ongoing, meaning we receive live updates on a patient’s condition. We also take calls from the ambulance services either if their call-handlers or their paramedics on the ground require assistance. We adhere to our own dispatch criteria, which means we will activate the aircraft and crew if an incident falls into a certain category, such as major trauma. Examples of this might be road traffic collisions, falls, industrial incidents, and medical incidents.

As well as our aircraft which are deployable during daylight hours, we have a fleet of rapid response vehicles, as there are some circumstances, such as adverse weather conditions, where it may be deemed unsafe for us to launch our aircraft. We also have a car working through the night.

Our onboard team is usually made up of a pilot, a specialist pre-hospital doctor and a paramedic. In order to function in some of the most testing environments, they must operate as equals, drawing on each other’s experience and skills for the benefit of the patient.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

eee eee

Our paramedics are full-time staff members at GNAAS and as well as their vital role in the critical care of patients, they provide support to the pilot when in flight, and act as the essential link between the team and airdesk, relaying information often under extreme pressure. We also have a paramedic based on our airdesk. They play a central role in deploying the team to incidents and acting as a communications link between the on-scene team, other emergency services, and hospitals.

Our pilots hold the ultimate responsibility for getting the patient to hospital safely. On a daily basis, they monitor flying conditions and the performanceofthe aircraft to ensure the safety of all on board.

Our doctors work for the charity on a part-time basis. Our doctors are all pre-hospital experts and come from a variety of backgrounds. We have several doctors who also have careers in the military, we have GPs with a pre-hospital speciality, and we have anaesthetics and emergency medicine consultants from hospitals throughout the region.

While on a call-out, our doctors’ sole focus is on patient care but back on the base they also lead research and development projects that drive improvements in our service.

During the year the regions three NHS ambulance services called us out 1,287 times (2019/20: 1,466).

The average cost per request for assistance, based on total expenditure for the charity excluding the financial adjustment for the impairment relating to the aircraft is £5,193 (2019/20: £4,603).

We do not receive any financial, human resource or equipment support from the government on an on-going basis but were grateful of the support of one-off grant funding made available to air ambulance charities, and the furlough scheme that was available to organisations generally during COVID-19.

Overall, the impact of the charity’s activities continues to improve the patient care and survivability, adding value to the regions’ health economy without any cost to the NHS.

Fundraising

Our fundraising and income generation activities raised £7.05mil (2019/20: £7.2mil) during the financial year. This figure excludes the government COVID-19 grant, funding for the furlough of staff from the Coronavirus Job Retention Scheme, and the donations from our trading subsidiaries.

For every £1 spent by the charity on raising funds, we generated £4.91 (2019/20: £4.88) in donations, legacies, grants, and lottery and fundraising income. This is a small increase across financial years arising from a significant increase in legacies as a percentage of our overall income.

The charity is registered with the Fundraising Regulator and fundraising activities undertaken by the charity are carried out with reference to the Code of Fundraising Practice. All complaints received by the charity are recorded and investigated in line with the charity’s complaints and appreciations procedure. During the year we received 5 (2019/20: 9) complaints. All complaints were handled in line with the charity’s published complaint procedure and resolved at stage 1 of the process. No complaints were received via the Fundraising Regulator.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

As a charity, we do not use the services of professional fundraisers, external call centres or external sales canvassing companies to support our fundraising activities. Where a business supporter seeks to promote our charity alongside the sale of their own product or service, we require them to put in place the appropriate legal agreement recognising their responsibilities.

The charity provides guidance and training to employees and volunteers on dealing with people in vulnerable circumstances.

Volunteers

The charity covers a large geographic area and relies on a willing team of volunteers to support our small team of paid fundraising staff.

Sadly, during 2020/21 their activity was significantly impacted by COVID-19. We are incredibly grateful for our ‘Ground Crew’ volunteers; we could not do what we do without them. The support they give shows the true spirit of our amazing charity. We currently have 59 registered volunteers, and we look forward to increasing our register of volunteers and working with them more closely again as the restrictions lift and it is safe to do so.

Financial review

The financial results for the year are set out in pages XX to XX of this report.

The charity has been impacted financially due to the COVID-19 crisis, with our fundraising activities being worst hit, alongside a reduction in donations. Gift in wills and a one-off government grant has helped to bridge our funding gap this year. We are incredibly grateful for the continued support of the public during what has been a very challenging year.

Consolidated accounts

The consolidated accounts set out the combined results for The Great North Air Ambulance Service charity, and for the charity’s wholly-owned trading subsidiaries (The Great North Air Ambulance Trading Company and ARC Medtech Limited) for the year ended 31 March 2021. Income for the year totalled £8,517,729 (2019/20: £8,313,235), a small increase year on year.

Gifts in wills remained a significant source of income but are by their nature unpredictable, the amount received increased by £1.77mil compared to 2019/20. Income from donations, grants, lottery and fundraising decreased by £1.15mil year on year.

During the year the government put in place emergency funding grants for many sectors, including a package of £750mil of funding support for the Voluntary, Community and Social Enterprise sector, with £360mil of this allocated by government departments to charities providing key services during the COVID-19 crisis. As a charity, with the support of Air Ambulance UK (a membership body for air ambulances), we secured £520,000 of this funding via the Department of Health and Social Security.

As we emerge from the pandemic there is a continued focus on increasing our more sustainable income streams.

Page 10

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

Resources expended in the year totalled £7,429,630 (2019/20: £8,086,125), a decrease of £656,495.

The consolidated accounts include income of £867,468 (2019/20: £1,087,445) earned by the subsidiary companies and associated resources expended of £746,289 (2019/20: £897,828). Income decreased by £219,977 as a result of the impact of COVID-19 on clothing collections. The subsidiary companies made a return to the charity of £182,850 in the current financial year (2019/20: £323,924).

The capital fund differentiates the capital costs of the charity from the revenue expenditure required to fund the charity’s running costs. The costs of depreciating the assets over their useful lives, and the finance costs relating to borrowing to fund the aircraft are reflected in the capital fund. The capital fund remains unrestricted.

Results for the charity

Results for the charity are shown on page 25, ‘Charity statement of financial activities’. These figures relate to the activities of the charity, excluding the activities of the trading companies and any consolidation adjustments that must be reflected in the consolidated statement of financial activities. Following a change in the accounting treatment of donations from trading subsidiaries, donations received from the trading companies for the financial years 2018/19 onward are reflected in the charity’s accounts on the date of payment. The donation received in the current financial year was £182,850 which relates to profits generated in 2019/20.

Income for the year totalled £7,833,111 (2019/20: £7,549,714). Our sources of income include:

• e Donations from individuals, corporate supporters and from the charity's own trading company £1,902,887 — 24% (2019/20: £2,103,060 — 28%)

• e Legacies £3,163,729 — 40% (2019/20: £1,392,857 — 18%)

• e Charitable activities (chargeable pre-hospital care services and training) £310,770 — 4% (2019/20: £375,830 — 5%)

• e Lottery subscriptions £1,061,367 — 14% (2019/20: £1,051,188 — 14%)

• e Fundraising activities including events £565,096 — 7% (2019/20: £1,076,245 — 14%) e Grants and other income £829,262 — 11% (2019/20: £1,550,534 — 20%)

Resources expended in the year totalled £6,683,341 (2019/20: £7,188,297). Resources expended include:

• e Costs of delivering our charitable activities — these costs cover the clinical, operational, training, compliance and essential support costs of delivering our services. Total costs of delivery for the year were £5,246,884 (2019/20: £5,267,421), this represents 79% (78%) of our costs.

• e The costs of delivering fundraising activities — these are the costs, including staff and non-staff costs, relating to events, managing fundraising activities, promotion activities to generate public support, and the costs of running the lottery. Without these activities, the charity could not generate the financial support needed to allow us to deliver our services. £1,436,457 (2019/20: £1,480,876) of our costs, 21% (22%), are attributable to this area of our work.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report

for the year ended 31 March 2021

• _——eee____ el e Impairment of aircraft/aircraft spare parts — In 2019/20 two of the existing aircraft were put on the market, the expected market value was less than the carrying amount resulting in an impairment of £440,000 in the 2019/20 statement of financial activities.

Any surplus generated is held for future investment and to support the reserves policy laid down by the charity's trustees.

As set out above, the capital fund differentiates the capital costs of the charity from the revenue expenditure required to fund the charity’s running costs.

Investment policy and performance

As per the memorandum and articles of association the charity has the power to acquire assets to borrow money and to invest surplus funds in any way that the trustees wish.

There were no investments and no investment income during the year other than small amounts of interest received from interest-bearing current accounts, and a small number of shares received through gifts in wills.

The trustees reviewed their approach to investment during the year and concluded to continue to maintain cash balances in the light of future capital commitments and plans. The trustees keep the cash position and broader investment strategy and policies of the charity under review.

Reserves policy

In line with Charity Commission guidelines, the trustees monitor the level of reserves held to ensure they are being used to help to achieve the objectives of the charity.

The charity aims to keep free reserves at levels to provide for six months operating costs which the trustees consider prudent. Based on 2021/22 budgeted costs the operating costs of the charity excluding depreciation are forecast at £7mil, this equates to an estimated £3.5mil for six months.

As at 31 March 2021, the charity holds total reserves of £15.3 million, of which £11.7 million is tied up in fixed assets. The charity’s free reserves stand at £3.6 million, however this is expected to reduce over the coming year with the charity’s reserves being utilised to ensure continuity of service whilst continuing to invest in fundraising activities to support the charity's recovery once restrictions on movement begin to lift. The aim is to return free reserves to the target of 6 months expenditure following recovery.

Principal risks and uncertainties

As part oftheir[responsibilities,][the][ trustees] ensure[ that][the] major[risks][to] which[ the][charity][is] exposed are reviewed and systems established to mitigate those risks. The trustees have appointed the chief executive and the executive team to review major risks and make recommendations to the trustees as to how to manage them. The finance, audit, remuneration and risk committee are responsible for the review and monitoring of the effectiveness of policies and processes for assessing and managing risk.

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The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

The principal risk categories are strategic governance, clinical, service delivery (clinical),service delivery (other), financial risk, income generation risk, reputational risk, information governance/data protection, and human resources.

Foremost for consideration are clinical and operational risks involving patient treatment and care, this particular aspect is regulated by the Care Quality Commission (CQC) where failure to comply with the regulations would severely inhibit the charity; and factors involved with the flying environment, this is highly regulated by the Civil Aviation Authority (CAA).

In addition to the major risk groups, the charity has developed a business continuity plan to ensure that the charity is prepared to deal with service outages caused by factors beyond its control that could seriously impair the charity’s ability to continue normal operations. COVID-19 has meant that our business continuity plan has been put to the test and shown to work with our frontline services continuing to operate with the necessary adaptations, and our non-frontline services mobilised to work from remote locations.

As part of their responsibilities, the trustees ensure that major risks to which the charity may be exposed are reviewed annually. At each meeting of the board, any new risks or changes to existing risks identified from the papers or discussions around agenda items are noted and the risk register updated accordingly.

Complaints received are reviewed by the relevant sub-committee on a regular basis. The committees review the number and general nature of complaints received; any trends in complaints; and any areas of risk that need to be addressed.

Going concern

The charity saw reduced income from donations, grants, lottery and fundraising across 2020/21 with a decrease of £1.15mil year on year. This was offset in part by a one-off government grant to support air ambulance charities during COVID-19 of £520,000, and Coronavirus Job Retention Scheme (CJRS) funding of £82,424. The charity’s trading company also accessed the CJRS, claiming £126,353. Gifts in wills remained a significant source of income but are by their nature unpredictable, the amount received in 2020/21 increased by £1.77mil compared to 2019/20, allowing the charity to end the year in a surplus position.

Income continues to be impacted into 2021/22 as social distancing measures reduce the charity's ability to generate funds through community, corporate and events fundraising. The charity’s trading company has also been impacted, reducing the amount that can be gifted to the charity.

Prior to COVID-19 the charity had prepared budget forecasts for the period to 31 March 2022. These original forecasts showed an expected loss of £874k in 2021/22. The forecast losses were attributable to increases in deprecation costs following investment in aircraft; increased operating costs of moving toward 24/7 cover; and increased costs in fundraising activities. The budget forecast for 2021/22 has been revised to reflect the expected impact of COVID-19 and forecasts prepared for 2022/23. The forecasts show an expected loss of £1.5mil in 2021/22 and continued though reducing losses into 2022/23. Work continues to address these predicted losses and return the charity to a surplus position.

Page 13

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

The charity’s liquidity position remains positive, having started in a strong position prior to COVID-19. With the recent replacement of the charity’s aircraft, the old aircraft are now being marketed and when sold will provide a cash receipt for the charity.

Having considered the financial forecasts the trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Plans for future period

Our continued focus is to develop the services of the charity for the benefit of our patients. Inevitably, our plans for the coming year continue to be impacted by COVID-19, but we remain optimistic that we can face the on-going challenges and look at new ways of working that provide new income streams and aid our recovery from the financial impacts of the virus. With this in mind, our plans for the coming year are set out below:

• @ Wewill maintain our focus on our people, broadening the ways in which we engage with our staff, our volunteers, our supporters and our patients.

• e Wewill continue to develop our people plan, promoting wellbeing, and providing support to engage and empower staff with open and honest communication across the charity.

• e Wewill conclude the purchase of the Dauphin N3 and bring this into service.

• e We will continue our work to develop an overnight car in Cumbria and begin a phased implementation of the service beginning with two nights a week and continue to seek sustainable funding to support our aspirations to deliver a full 24/7. Rollout across the North East has been impacted by COVID-19 but this remains part of our plans for the future.

• e Wewill undertake the next phase in our exploratoryjet suit paramedic project. e We will introduce a paramedic response car to ensure service resilience and appropriate clinical exposure.

• e Wewill produce a medical workforce plan to support delivery of our increase in services.

• e Wewill seek to embed learning, development and improvement cultures across the charity; look at opportunities to access training for members of our team to help support the mental health and well-being of our staff; and continue our commitment to our own clinicians by delivering internal training days and facilitating courses such as the Dip IMC and FIMC.

• e We will exploit the training, research, and development opportunities enabled through the development of our new base and centre of excellence, and continue our work with delivery partners, regional education providers, and the wider pre-hospital care community to deliver training opportunities that support improvements in medical practice.

• e Wewill continue to promote the charity to maintain awareness and help us to achieve our stretching financial targets for donations, fundraising, grants and gifts in wills that fund our service; seek to grow corporate support; update and develop our individual giving strategy; and continue to grow and improve our virtual fundraising. Once it is safe to do so, our fundraising team will be back out in our region, meeting supporters and gently encouraging the public to get behind our cause.

• e We will continue to develop internal systems to improve efficiency, performance monitoring and data use, seeking to utilise enterprise-wide solutions where it is relevant to do so.

Page 14

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

aEEEE

Public benefit

All our charitable activities are undertaken to further our charitable purposes for the public benefit. Over the last nineteen years, this charity has changed the way many seriously ill or injured patients are treated and cared for. This advance in pre-hospital emergency medical care (limited only by resource) has noticeably impacted on vulnerable patients with many more surviving than would otherwise have done so previously, delivering proven public benefit.

In accordance with $17 of the Charities Act 2011, the trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives of the charity and when planning the future activities. The trustees assess how new activities planned will contribute to the overall aims and objectives they have set and periodically review existing activities to ensure ongoing public benefit.

Structure, governance and management

The charity is a company limited by guarantee, incorporated in the United Kingdom on 13 May 2002 and registered in England and Wales. It is also a registered charity (charity number 1092204).

Organisational structure

The controlling entity of the charity is the Board of Trustees. The board meets a minimum of four times per year. Between general meetings subcommittees of the board, the Finance, Audit, Remuneration and Risk committee; and the Operations and Clinical committee, are called upon to maintain a continuous governance overview.

The charity is sub-divided into Medical, Operational, Fundraising, Business Support, Compliance and Assurance, and HR, each headed up by a member of the executive team. The executive team are responsible for leading their service area, and collectively along with the Chief Executive are responsible and accountable for delivering a safe and efficient service. The charity employs its own paramedics and doctors. The clinical team are supported by a range of support functions, including fundraising; and by a team of active volunteers.

The charity owns two non-charitable commercial subsidiary companies known as the Great North Air Ambulance Service Trading Company and ARC Medtech.

The Great North Air Ambulance Trading Company operates independently of the charity with its own structure, management and employees. This recycling and international export business trades in mobile phones, inkjet cartridges, unwanted clothing and other disposable goods. The trading company donates the distributable profits derived from its trading activities to the charity that over the years has amounted to over £4mill, making it the charity’s largest single commercial donor.

ARC Medtech was established in 2019 to allow the charity to exploit the intellectual property vested in its operational ICT system. ARC Medtech does not employ any staff. As with the trading company, ARC Medtech’s distributable profits derived from its trading are donated to the charity.

EE Page 15

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

Governance

The trustees, who are also directors of the charitable company, are bound by the charity’s Articles of Association and Memorandum.

The trustees collectively are responsible for directing the affairs of the charity ensuring that it is solvent, well run, delivering the charitable outcomes for which it was set up, and ensuring compliance with charity law and all other applicable legislation and regulation. The trustees also determine the strategy and key objectives and vote on major policy decisions affecting the charity. Trustees monitor the performance of the charity at meetings of the board and its sub-committees. Sub-committees meet a minimum of 3 times per year.

The Operations and Clinical committee has delegated responsibility for overseeing all operational and clinical aspects of the charity and reporting back to the board accordingly.

The Finance, Audit, Remuneration and Risk Committee has delegated responsibility for overseeing all financial aspects of the charity, including audit and remuneration, to ensure short and long-term viability and report back to the board accordingly. The committee, when required, will determine and make recommendations regarding the remuneration of the senior executive specifically and employees generally. The remuneration packages of senior executives and employees are established with reference to market rates for similar roles and are designed to attract and retain employees while remaining affordable to the charity.

Two of the trustees are also directors of the trading company, and two of the trustees are also directors of ARC Medtech. The directors of each of the trading subsidiaries report on the company’s activities and performance and communicate those matters to the charity board.

Regulatory compliance and overall performance standards are monitored and assessed with quality and key performance indicators by the board throughout the year. This helps to ensure the charity is well-governed, safe and legislatively compliant in all aspects of its duties and operations.

Policies adopted for the induction and training of trustees

Trustees are identified by a process of targeted recruitment aimed at ensuring the skills of the board remain both relevant and balanced. New trustees are interviewed and appointed by the presiding trustees who aim to achieve a good mix of professional skills that will benefit the charity.

Each new trustee undergoes a brief induction programme that includes the charity's vision and objects, role and responsibilities and financial standing. The charity facilitates attendance at appropriate external training events where there is an identified need.

In addition to the constitution, trustees are bound by the charity’s Code of Governance and Code of Conduct.

Page 16

(A company limited by guarantee)

The Great North Air Ambulance Service

Trustees annual report for the year ended 31 March 2021

Management

Although ultimate responsibility for the management of the charity lies with the trustees, they do have the power to delegate and do so to enable the charity to function on a daily basis.

The trustees are responsible for appointing a chief executive. The chief executive is responsible for staff leadership, management, and administration as well as the clinical and operational aspects of the charity and is the link between the board of trustees and the staff. Senior managers are appointed to assist the chief executive in these duties and this structure ensures the charity is effective, wellgoverned and legislatively compliant in all aspects of its operations.

The executive team are responsible and accountable to the CEO for their designated area of operation, ensuring that services are delivered in pursuance of the charity’s agreed strategies and objectives; that relevant regulatory compliance is maintained; and that performance is in line with agreed standards. The executive team provide reports on performance to the CEO and the Board.

Due to sickness, an interim structure has been in place for the majority of the year, with the executive team reporting directly to the Board, and collectively assuming some ofthe responsibilities ordinarily undertaken by the CEO. At the end of March 2020, the trustees took the decision to appoint Joan Trench as an interim contractorto work alongside the executive team providing further support during COVID-19, this appointment continued until October 2020.

Regular departmental and staff meetings are held to ensure the charity progresses and maintain its aims and objectives thereby delivering on its public benefit requirement.

Page 17

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

Disclosure of information to auditors

Each ofthe[persons] who[are][ trustees][at][ the][ time] when[this][ Trustees’][report][is] approved[has][confirmed] that:

• e so far as that trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and

• e That trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.

This report, incorporating the group strategic report, was approved by the trustees, in their capacity as company directors, on 23 July 2021 and signed on their behalf by:

----- Start of picture text -----
Mr| Jobling, Chairman
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Page 18

The Great North Air Ambulance Service

(A company limited by guarantee)

Trustees annual report for the year ended 31 March 2021

Trustees’ responsibilities in relation to the financial statements

The charity trustees (who are also directors of the Great North Air Ambulance Service Limited for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statement, the trustees are required to:

• e Select suitable accounting policies and then apply them consistently; e Observe the methods and principles in the Charities SORP;

• e Make judgements and estimates that are reasonable and prudent;

• e State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• e Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and the dissemination of the financial statements may differ from legislation in other jurisdictions.

Page 19

Independent auditor’s report to the members of The Great North Air Ambulance Service

Opinion

We have audited the financial statements of The Great North Air Ambulance Service (the 'parent charitable company') and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the company statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:

• e give a true and fair view of the state of the group’s and of the parent charitable company's affairs as at 31 March 2021 and of the group’s and of the parent charitable company’s incoming resources and application of resources, including its income and expenditure for the year then ended;

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

• e 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 United Kingdom, including the Financial Reporting Council'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 group's or the parent charitable company'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.

Page 20

Independent auditor’s report to the members of The Great North Air Ambulance Service

Other information

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

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

• e the information given in the trustees’ report including the group strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• e the trustees' report and the group strategic report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

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

• e the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• e the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• e certain disclosures of trustees’ remuneration specified by law are not made; or

• e we have not received all the information and explanations we require for our audit.

Page 21

Independent auditor’s report to the members of The Great North Air Ambulance Service

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 group’s and the parent 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 group or the parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the trustees and other management (as required by auditing standards) and from inspection of the group’s and the parent charitable company's legal correspondence, and we discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Firstly, the group and the parent charitable company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies and charities legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the group and the parent charitable company are subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; data protection, health and

Page 22

Independent auditor's report to the members of The Great North Air Ambulance Service

safety, civil aviation regulations, care quality legislation, employment laws and certain aspects of company and charity legislation, recognising the nature of the group’s and of the parent charitable company's activities. Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of any actual or suspected non-compliance that was sufficiently significant to our audit or material.

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 non-compliance 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 non-compliance with all laws and regulations.

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.

Use of our report

This report is made solely to the parent 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 parent 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 parent charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Anne Hallowell BSc FCA DChA (Senior Statutory Auditor) for and on behalf of UNW LLP, Statutory Auditor Chartered Accountants Newcastle upon Tyne

23 July 2021

Page 23

The Great North Air Ambulance Service (A company limited by guarantee)

Consolidated statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2021

		Great North	Great North	Great North	Great North
		Air	Air	Air	Air
		Ambulance	Ambulance	Ambulance	Ambulance
		Service Capitalfund	Service Unrestricted	Service Restricted	Subsidiary Companies	Total	Restated Total
		(Unrestricted)	Funds	Funds	(Unrestricted)	funds	Funds
		2021	2021	2021	2021	2021	2020
	Note	£	£	£	£	£	£
Income and endowments from:
Donations and legacies
Donations		-	1,720,037	-	-	1,720,037	1,779,136
Legacies		-	3,163,729	-	-	3,163,729	1,392,857
Grants		-	824,076	-	126,353	950,429	1,542,255
Charitable activities
AirAmbulance services		-	310,770	-	-	310,770	375,830
Othertrading activities
Lottery and raffle		-	1,061,367	-	-	1,061,367	1,051,188
Fundraising activities		-	565,096	-	-	565,096	1,076,245
Trading activities	2	-	-	-	741,115	741,115	1,083,252
Investments
Interest receivable		-	1,745	-	-	1,745	7,524
Other Income
Profit on sale of assets		-	3,441	-	-	3,441	4,948
Total		-	7,650,261	-	867,468	8,517,729	8,313,235
Expenditure on:
Raisingfunds
Charity
Direct costs	4	10,007	802,891	-	-	812,898	926,632
Support costs	4	37,448	586,111	-	-	623,559	554,244
Trading activities	3	-	.	-	746,289	746,289	897,828
Charitable activities
Direct costs
Direct costs	4	1,101,783	2,834,928	-	-	3,936,711	4,175,673
Impairment ofAircraft	4	-	-	-	-	-	440,000
Support costs	4	112,339	1,197,834	-	-	1,310,173	1,091,748
Total		1,261,577	5,421,764	-	746,289	7,429,630	8,086,125
Net gains/(losses) on investments		-	212	-	-	212	(906)
Net income/(expenditure)		(1,261,577)	2,228,709	-	121,179	1,088,311	226,204
Revaluation oftangible fixed assets		-	-	-	-	-	-
Transfer between funds	18	278,088	(95,238)	-	(182,850)	-	-
Netmovement in funds fortheyear		(983,489)	2,133,471	-	(61,671)	1,088,311	226,204
Reconciliation offunds:
Total funds brought forward	18	9,424,556	4,438,996	-	324,046	14,187,598	13,961,394
TOTALFUNDSCARRIED FORWARD		8,441,067	6,572,467	-	262,375	15,275,909	14,187,598
Allactivitiesrelatetocontinuingoperations.

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

The notes on pages 25 to 38 form part of these finanical statements.

During the period a review of income classification was undertaken which resulted in raffle income of £100,925 being reclassified from fundraising activities to Lottery and raffle within the Statement of financial activities for 2019/20. There was no impact on the previously reported result or on the year end position.

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Page 24

The Great North Air Ambulance Service

(A company limited by guarantee)

Charity statement of financial activities

(incorporating income and expenditure account) for the year ended 31 March 2021

ee SSS———

----- Start of picture text -----
||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Restated| |Capital fund|Unrestricted|Restricted|Total|Total| |(Unrestricted)|Funds|Funds|Funds|Funds| |2021|2021|2021|2021|2020| |£|£|£|£|£| |Income|and|endowments|from:| |Donations|and|legacies| |Donations|-|1,902,887|-|1,902,887|2,103,060| |Legacies|-|3,163,729|-|3,163,729|1,392,857| |Grants|-|824,076|-|824,076|1,542,255| |Charitable|activities| |Air Ambulance|services|-|310,770|-|310,770|375,830| |Other trading|activities| |Lottery and|raffle|-|1,061,367|-|1,061,367|1,051,188| |Fundraising|activities|-|565,096|-|565,096|1,076,245| |Trading|activities|-|-|-|-|.| |Investments| |Interest|receivable|-|1,745|-|1,745|7,524| |Other|Income| |Profit on|sale of assets|-|3,441|-|3,441|755| |Total|-|7,833,111|-|7,833,111|7,549,714| |Resources|expended| |Raising|funds| |Fundraising|activities| |Direct|costs|10,007|802,891|-|812,898|926,632| |Support|costs|37,448|586,111|-|623,559|554,244| |Charitable|activities| |Direct|costs| |Direct|costs|1,101,783|2,834,928|-|3,936,711|4,175,673| |Impairment|of Aircraft|-|-|-|-|440,000| |Support|costs|112,339|1,197,834|-|1,310,173|1,091,748| |Total|1,261,577|5,421,764|-|6,683,341|7,188,297| |Net|gains/(losses)|on|investments|212|-|212|(906)| |Net income/(expenditure)|(1,261,577)|2,411,559|-|1,149,982|360,511| |Transfer|between|funds|278,088|(278,088)|-|-|-| |Net movement|in|funds for the|year|(983,489)|2,133,471|-|1,149,982|360,511| |Reconciliation|of funds:| |Total|funds|brought|forward|9,424,556|4,399,463|-|13,824,019|13,463,508| |TOTAL FUNDS|CARRIED|FORWARD|8,441,067|6,532,934|-|14,974,001|13,824,019| |The|statement|of|financial|activities|includes|all|gains and|losses|recognised|in|the|year.| |During|the|period|a|review|of income|classification|was|undertaken|which|resulted|in|raffle|income|of £100,925|being| |reclassified|from|fundraising|activities to|Lottery and|raffle|within|the|Statement|of financial|activities|for|2019/20.| |There was|no|impact|on|the|previously|reported|result|or on|the year|end|position.|

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1. Page 25

The Great North Air Ambulance Service (A company limited by guarantee)

Consolidated balance sheet

As at 31 March 2021

			2021		2020
	Note	£	£	£	£
Fixed assets
Tangible assets	7		11,478,915		12,277,599
Intangible assets	8		206,124		277,585
Investments	9		3,801		3,589
Current assets
Stocks	10	93,425		42,846
Debtors	11	973,386		504,643
Cash at bank and in hand		6,492,852		5,145,133
		7,559,663		5,692,622
Current liabilities
Creditors: amounts falling due within one
year	13	(968,657)		(979,597)
Net current assets			6,591,006		4,713,025
Total assets less current liabilities			18,279,846		17,271,798
Creditors: amounts falling due after one
year	15		(3,003,937)		(3,084,200)
Net assets			15,275,909		14,187,598
Charityfunds
Great North AirAmbulance Subsidiary
Companies	17	262,375		324,046
Unrestricted funds	17	6,572,467		4,438,996
Capital funds	17	8,441,067		9,424,556
Total unrestricted funds			15,275,909		14,187,598
Restricted funds	17		-		-
			15,275,909		14,187,598

The financial statements were approved by the trustees on 23 July 2021 and signed on their behalf by:

----- Start of picture text -----
ly | -
B Jobling, Chai
----- End of picture text -----

Company Number 04436859

The notes on pages 25 to 38 form part of these finanical statements.

Page 26

The Great North Air Ambulance Service

(A company limited by guarantee)

Charity balance sheet

As at 31 March 2021

			2021		2020
	Note	£	£	£	£
Fixed assets
Tangible assets	7		11,449,405		12,231,169
Intangible assets	8		206,124		277,585
Investments	9		3,803		3,591
Current assets
Stocks	10	40,965		29,822
Debtors	11	920,042		417,631
Cash at bank and in hand		6,173,364		4,904,664
		7,134,371		5,352,117
Current liabilities
Creditors: amounts falling due within one
year	12	(865,765)		(956,243)
Net current assets			6,268,606		4,395,874
Total assets lesscurrent liabilities			17,927,938		16,908,219
Creditors: amounts falling due after one
year	13		(2,953,937)		(3,084,200)
Net assets			14,974,001		13,824,019
Charity funds
Unrestricted funds		6,532,934		4,399,463
Capital funds		8,441,067		9,424,556
Total unrestricted funds			14,974,001		13,824,019
Restricted funds			ja		2
			14,974,001		13,824,019

The financial statements were approved by the trustees on 23 July 2021 and signed on their behalf by:

BE B Jobling, Chair

Company Number 04436859

The notes on pages 25 to 38 form part of these finanical statements.

Page 27

The Great North Air Ambulance Service

(A company limited by guarantee)

Consolidated statement of cash flow

for the year ended 31 March 2021

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2021|2020| |Note|£|£| |Cash|flows from|operating|activities:| |Net|income/(expenditure)|(as|per the|statement|of financial|activities)|1,088,311|226,204| |Adjustments|for:| |Interest|received|(1,745)|(7,524)| |Interest|paid|95,501|139,222| |Donation|of|investments|:|-| |Taxation|-|-| |(Gains)/losses|on|investments|(212)|906| |Depreciation|of tangible|fixed|assets|1,167,887|1,059,885| |Depreciation|of|intangible|fixed|assets|111,446|89,644| |Loss/(profit)|on|disposal|of tangible|fixed|assets|(3,441)|(4,948)| |Impairment/revaluation|of|aircraft|-|440,000| |(Increase)/decrease|in|stocks|(50,579)|66,641| |(Increase)/decrease|in|debtors|(468,743)|(93,380)| |Increase/(decrease)|in|creditors|(10,940)|93,079| |Net|cash|flow|used|in|operating|activities|1,927,485|2,009,729| |Cash|flows from|investing|activities:| |Proceeds from|sale|of fixed|assets|3,441|44,202| |Purchase|of tangible|fixed|assets|(369,203)|(3,015,749)| |Purchase|of intangible|fixed|assets|(39,985)|(36,961)| |Proceeds|from|sale|of|investments|-|~| |Interest|received|1,745|7,524| |Interest|paid|(95,501)|(139,222)| |Net cash|used|in|investing|activities|(499,503)|(3,140,206)| |Cash|flows from|financing|activities| |Cash|inflows|from|new|borrowings|50,000|-| |Repayments|of borrowings|(130,263)|(260,525)| |Net cash|used|in|financing|activities|(80,263)|(260,525)| |Change|in|cash|and|cash|equivalents|in|the|reporting|period|1,347,719|(1,391,002)| |Cash|and|cash|equivalents|at the|beginning|of the|reporitng|period|5,145,133|6,536,135| |Cash|and|cash|equivalents|at the end|of the|reporting|period|20|6,492,852|5,145,133| |The|notes|on|pages|25|to|38|form|part|of these|finanical|statements.|

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Henne eeTT ee Page[28] a

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies

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

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The Great North Air Ambulance Service meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policies below.

1.2 Reduced disclosures policy

FRS 102 allows a qualifying entity certain disclosure exemptions. The charity meets the definition of a qualifying entity in respect of its separate (non-group) financial statements and has taken advantage of the exemptions relating to the disclosure of key management personnel compensation and the preparation of a cash flow statement. The consolidated financial statements include the equivalent disclosures and a consolidated cash flow statement.

1.3 Company status

The charity is a company limited by guarantee. The members of the charity are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

1.4 Going Concern

The group recorded a net income in 2021 of £1,277,493 and has net assets of £15,465,091, which exceeded original forecasts.

The charity saw reduced income from donations, grants, lottery and fundraising across 2020/21 with a decrease of £1.15mil year on year. This was offset in part by a one-off government grant to support air ambulance charities during COVID-19 of £520,000, and Coronavirus Job Retention Scheme (CJRS) funding of £82,424. The charity's trading company also accessed the CJRS, claiming £126,353. Gifts in wills remained a significant source of income but are by their nature unpredictable, the amount received in 2020/21 increased by £1.77mil compared to 2019/20, allowing the charity to end the year in a surplus position.

Income continues to be impacted into 2021/22 as social distancing measures reduce the charity’s ability to generate funds through community, corporate and events fundraising. The charity’s trading company has also been impacted, reducing the amount that can be gifted to the charity.

Prior to COVID-19 the charity had prepared budget forecasts for the period to 31 March 2022. These original forecasts showed an expected loss of £874k in 2021/22. The forecast losses were attributable to increases in deprecation costs following investment in aircraft; increased operating costs of moving toward 24/7 cover; and increased costs in fundraising activities. The budget forecast for 2021/22 has been revised to reflect the expected impact of COVID-19 and forecasts prepared for 2022/23. The forecasts show an expected loss of £1.5mil in 2021/22 and continued though reducing losses into 2022/23. Work continues to address these predicted losses and return the charity to a surplus position.

Page 29

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

eS

1. Accounting policies (continued)

1.4 Going Concern (continued)

The charity’s liquidity position remains positive, having started in a strong position prior to COVID-19. With the recent replacement of the charity’s aircraft, the old aircraft are now being marketed and when sold will provide a cash receipt for the charity.

Having considered the financial forecasts the trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

1.5 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Designated funds have been allocated from the charity's free reserves to support capital costs associated with maintaining the aircraft, and the expected costs of developing the new base and medical centre of excellence as well as costs relating to any other future investment. Investment income, gains and losses are allocated to the appropriate fund.

1.6 Capital fund

A capital fund was created to isolate the capital costs of the charity from the revenue expenditure required to fund charity's running costs. The costs of depreciating the assets over their useful lives, and the finance costs relating to borrowings to fund the aircraft are chanelled through this fund. The fund remains unrestricted.

1.7 Income

All income is included in the SOFA when the company has entitlement to the funds, reasonable probability of receipt and the amount can be measured with sufficient reliability. Legacy income is recognised when receipt probable and amount can be reliably estimated.

Gifts donated for resale are included as income on donation and are valued at an estimate of fair value. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost.

No amounts are included in the financial statements for services donated by volunteers. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Income received in relation to fundraising events or lottery draws that have not yet taken place is recognised as deferred income.

Income received from the charity's trading subsidiaries is accounted for on receipt, reflecting the legal substance of the transaction as a distribution. (see also note 18)

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions, there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

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The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies (continued)

1.8 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include management and administration costs, as well as costs incurred in connection with governance of the charity and compliance with constitutional and statutory requirements.

Redundancy and termination payments are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All such costs are disclosed in line with SORP requirements in note 6.

All resources expended are inclusive of irrecoverable VAT.

1.9 Basis of consolidation

The financial statements consolidate the accounts of The Great North Air Ambulance Service and all of its subsidiary undertakings (‘subsidiaries’).

The income and expenditure account for the year dealt with in the accounts of the charity was £1,149,983 (2020 - £360,511).

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

1.10 Intangible fixed assets and amortisation

Intangible fixed assets are stated at cost less amortisation. Assets are amortised at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Software - 25% straight line Software under developn - Amortisation is nil until the software is transferred into use.

1.11 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. A review for impairment is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Aircraft - 10% straight line Aircraft spare parts - Depreciation is nil until the parts are transferred into use. Land & buidings - 2% straight line (Urlay Nook site only) Land & buidings - 10% straight line (Langwathby base only) Motor vehicles - 25% straight line Medical equipment - 20% straight line Office equipment & computers - 25% straight line Other fixtures and equipment consists of the following: Fixtures & fittings - 10% straight line Plant & equipment - 10% straight line Internal decoration - 25% straight line eeeee Page 31

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

1. Accounting policies (continued)

1.12 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.

1.13 Leasing and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payments are charged to the SOFA in equal instalments of the period of the lease.

1.14 Stocks

Purchased stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs. Donated good for resale are valued at estimated fair value.

1.15 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

1.16 Financial Instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, bank loans and loans to or from related parties, including fellow group companies.

1.17 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

1.19 Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

1.20 Employee benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

The charity operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

1.21 Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements.

Leenaa...Page[32] .06000

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies (continued)

1.21 Taxation (continued)

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

1.22 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1.23 Judgments in applying accounting policies and key sources of estimation uncertainty

Critical accounting estimates and areas of judgement:

The preparation of financial statements requires management to make judgments, assumptions and estimates that affect the application of accounting policies and amounts reported in the profit and loss account and balance sheet. Such decisions are made at the time the financial statements are prepared and adopted based on the best information available at the time. Actual outcomes may be different from initial estimates and are reflected in the financial statements as soon as they become apparent.

Significant judgments in applying accounting policies:

In preparing these financial statements, no significant judgments were required in the process of applying the company's accounting policies.

Key sources of estimation uncertainty:

Estimates included within these financial statements include depreciation and asset impairments, including in relation to the residual value of aircraft. See note 7 for the carrying value of fixed assets. Some of the estimates made in the preparation of these financial statements are considered to carry significant

estimation uncertainty, and may bear some risk of causing a material adjustment to the carrying amounts of assets and liabilities in the future. However, this risk is mitigated by periodic external valuation of the aircraft with the Board keeping the expected residual value under review.

1. Subsidiary income

Subsidiary incomeincome	2021	2020
	£	£
Trading Income
United Kingdom	69,055	39,574
Rest of European Union	672,060	1,043,678
Rest ofthe World	-	-
	741,115	1,083,252
Subsidiary expenditure	2021	2020
	£	£
Direct costs	230,304	307,998
Wages and salaries	462,057	530,363
National Insurance	31,608	36,965
Pensions	4,565	6,902
Depreciation	17,755	15,600
	746,289	897,828

3. Subsidiary expenditure

Page 33

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to	Notes to	the financial statements
fortheyear ended 31 March 2021 Leen			ee	™™™	mC mm—		eee
4.	Expenditure by activity				Fundraising	AirAmbulance
					costs	Services	Total
					2021	2021	2021
					£	£	£
	Direct costs
		Pilot and medical costs			-	1,049,271	1,049,271
	Aircraft expenses				-	682,976	682,976
		Fundraising			190,997	-	190,997
	Administration and office costs				6,221	228,784	235,005
		Other costs			48,240	80,407	128,647
		Wages and salaries			510,814	676,052	1,186,866
		National insurance			35,446	72,988	108,434
		Pension cost			11,173	44,450	55,623
		Sub-total excluding depreciation and impairment			802,891	2,834,928	3,637,819
		Depreciation			10,007	1,101,783	1,111,790
		Impairment ofAircraft			:	-	-
		Total direct costs			812,898	3,936,711	4,749,609
	Support costs
		Administration and office costs			107,399	322,187	429,586
		Other costs			5,525	13,523	19,048
		Wages and salaries			421,408	753,410	1,174,818
		National insurance			30,360	55,633	85,993
		Pension cost			18,603	44,635	63,238
		Auditors’ remuneration			2,816	8,446	11,262
		Auditors' non audit costs			.	-	-
		Trustees expenses reimbursed			-	-	-
		Sub-total excluding depreciation and impairment			586,111	1,197,834	1,783,945
		Depreciation			37,448	112,339	149,787
		Total support costs			623,559	1,310,173	1,933,732
	Total				1,436,457	5,246,884	6,683,341
	Expenditure byactivity - prioryear				Fundraising	AirAmbulance
					costs	Services	Total
					2020	2020	2020
					£	£	£
	Direct Costs
		Pilot and medical costs			-	1,121,981	1,121,981
		Aircraft expenses			-	858,039	858,039
		Fundraising			234,838	-	234,838
		Administration and office costs			15,323	292,276	307,599
		Other costs			102,370	104,643	207,013
		Wages and salaries			524,215	665,934	1,190,149
		National insurance			28,868	73,936	102,804
		Pension cost			11,022	46,542	57,564
		Sub-totalexcludingdepreciation and impairment			916,636	3,163,351	4,079,987
		Depreciation			9,996	1,012,322	1,022,318
		Impairment ofAircraft			-	440,000	440,000
		Total direct costs			926,632	4,615,673	5,542,305
	Support costs
		Administration and office costs			130,662	391,970	522,632
		Other costs			17,326	45,128	62,454
		Wages and salaries			332,792	474,157	806,949
		National insurance			25,007	46,150	71,157
		Pension cost			17,879	42,615	60,494
		Auditors' remuneration			2,986	8,957	11,943
		Trustees expenses reimbursed			-	-	-
		Sub-total excludingdepreciation and impairment			526,652	1,008,977	1,535,629
		Depreciation			27,592	82,771	110,363
		Total support costs			554,244	1,091,748	1,645,992
	Total				1,480,876	5,707,421	7,188,297

No trustees (2019: none) received any remuneration for their services as trustees of the charity.

For further information regarding the impairment, please see note 7.

SS Page 34

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

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||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |5.|Net|incoming|resources| |2021|2020| |This|is|stated|after|charging/(crediting):|£|£| |Depreciation|of|tangible|fixed|assets:| |-|owned|by the|charitable|group|1,086,675|1,059,885| |Depreciation|of|intangible|fixed|assets:| |-|owned|by the|charitable|group|111,446|89,644| |Impairment|of|aircraft|.|440,000| |Auditors'|remuneration|14,702|14,350| |Auditors’|remuneration|-|non-audit|3,256|4,920| |1,216,079|1,608,799| |6.|Staff costs|Total|Total| |2021|2020| |£|£| |Wages|and|salaries|2,823,741|2,527,461| |Social|security|costs|226,035|210,926| |Other|pension|costs|123,426|124,960| |3,173,202|2,863,347| |The|average|monthly|number|of|employees|during|the|year|was|as|follows:|2021|2020| |No.|No.| |Management|1|1| |Administration|25|18| |Charitable|operations|15|15| |Fundraising|and|lottery|-|charity|27|32| |Fundraising|and|lottery|- trading company|22|29| |390|95| |The|number|of higher|paid|employees|was:|2021|2020| |No.|No.| |In|the|band|£70,001|-|£80,000|1|1| |In|the|band|£120,001|-|£130,000|-|1| |In|the|band|£380,001|-|£390,000*|1|-| |2|2|

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Remuneration and benefits received by key management personnel

The key management personnel of the group comprise those of the charity and the key management personnel of its trading subsidiaries.

Key management personnel are deemed to be those having authority and responsibility, delegated to them by the trustees for planning, directing and controlling the activities of the charity.

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||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |During|2020/21|they|were:| |D|Stockton|D|Lewis-Bynoe|A|Mawson|A|Drake| |D|Bramley|L Simmons|J|Gray| |The|total|employee|benefits|of the|key|management|personnel|of the|group|were|£309,882|(2020:|£446,408)|

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*Compensation for loss of office

A payment of compensation for loss of office was made to one employee during the year. The payment amounted to £244,000.

Ex-gratia payments

Payments made in relation to termination during the year totalled £15,487 (2020: Enil), relating to redundancies.

Page 35

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

eS

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|||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |7.|Tangible|fixed|assets|Office|Other| |and|Fixtures| |Service|Aircraft|Land &|Motor|Medical|Computer|and| |Aircraft|Spare|Parts|Buildings|Vehicles|Equipment|Equipment|Equipment|Total| |Group|£|£|£|£|£|£|£|£| |Cost| |At|1|April|2020|14,981,421|554,555|4,240,378|484,401|240,645|199,314|824,668|21,525,382| |Additions|257,865|-|604|16,250|64,365|11,206|18,913|369,203| |Disposals|5|-|-|(6,356)|-|-|(74,856)|(81,212)| |Revaluation|:|-|-|-|-|-|-|-| |Transfer|between|classes|-|-|-|-|-|-|-|-| |At|31|March|2021|15,239,286|554,555|4,240,982|494,295|305,010|210,520|768,725|21,813,373| |Depreciation| |At|1|April|2020|7,903,927|433,400|90,523|362,320|160,678|162,223|134,712|9,247,783| |Transfer|between|classes|=|-|-|-|-|-|-|-| |Charge|for the|year|890,518|-|114,618|46,795|28,376|13,651|73,929|1,167,887| |Impairment|-|-|-|-|-|-|-|-| |On|disposals|-|-|-|(6,356)|-|-|(74,856)|(81,212)| |At|31|March|2021|8,794,445|433,400|205,141|402,759|189,054|175,874|133,785|10,334,458| |Net|book|value| |At|31|March|2021|6,444,841|121,155|4,035,841|91,536|115,956|34,646|634,940|11,478,915| |At|31|March|2020|7,077,494|121,155|4,149,855|122,081|79,967|37,091|689,956|12,277,599| |Company| |Cost| |At|1|April|2020|14,981,421|554,555|4,240,378|186,771|240,645|197,897|724,000|21,125,667| |Additions|257,865|-|604|16,250|64,365|10,371|18,913|368,368| |Disposals|-|-|=|(6,356)|-|-|-|(6,356)| |Revaluation|-|-|-|-|-|-|-|-| |Transfer|between|classes|-|-|-|-|-|-|-|-|-| |At|31|March|2021|15,239,286|554,555|4,240,982|196,665|305,010|208,268|742,913|21,487,679| |Depreciation| |At|1|April|2020|7,903,927|433,400|90,523|109,880|160,678|162,046|34,044|8,894,498| |Charge|for the|year|890,518|-|114,618|29,464|28,376|13,227|73,929|1,150,132| |Impairment|=|-|.|~|-|.|=|-| |On|disposals|-|-|-|(6,356)|-|-|-|(6,356)| |At|31|March|2021|8,794,445|433,400|205,141|132,988|189,054|175,273|107,973|10,038,274| |Net|book|value| |At|31|March|2021|6,444,841|121,155|4,035,841|63,677|115,956|32,995|634,940|11,449,405| |At|31|March|2020|7,077,494|121,155|4,149,855|76,891|79,967|35,851|689,956|12,231,169| |Impairment|of|aircraft| |During|2019/20|year|a|review|of the|aircraft|was|undertaken,|which|led|to|an|impairment|charge|of|£440,000.|

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ee Page 36

The Great North Air Ambulance Service

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

8. Intangible fixed assets

Intangible fixed assets
		Software
	Software	Development	Total
Group and Company	£	£	£
Cost
At 1 April 2020	448,660	16,695	465,355
Additions	16,358	23,627	39,985
Transfer between classes	28,379	(28,379)	-
At 31 March 2021	493,397	11,943	505,340
Amortisation
At 1 April 2020	187,770	-	187,770
Charge forthe year	111,446	-	111,446
Transfer between classes	-	-	-
At 31 March 2021	299,216	-	299,216
Net book value
At 31 March 2021	194,181	11,943	206,124
At 31 March 2020	260,890	16,695	277,585
Amortisation of intangible fixed assets is included within:
Raisingfunds - Charity - Direct Costs
Raisingfunds - Charity -Support Costs
Charitable activities - Direct Costs
Investments		Share in
	Listed	Subsidiary	2021
	Investments	undertakings
Group	£	£	£
At 1 April 2020	3,589	-	3,589
Additions	=		a
Gains/(losses) on investment	212	-	212
At 31 March 2021	3,801	-	3,801
		Share in	2021
	Listed	Subsidiary	£
	Investments	undertakings
Charity	£	£
At 1 April 2020	3,589	2	3,591
Additions	-	-	.
Gains/(losses) on investment	212	-	212
At31March2021	3,801	2	3,803

9. Investments

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The Great North Air Ambulance Service

(A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

SS

10. Stocks

10.	Stocks
		Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Donation bags	28,145	11,397	-	.
	Donated good held for resale	24,315	1,627	-	-
	Items for resale	40,965	29,822	40,965	29,822
		93,425	42,846	40,965	29,822
11.	Debtors
		Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Trade debtors	38,193	96,398	(3,166)	50,587
	Amountsowed by group undertakings	-	-	15,705	3,697
	Other debtors	41,412	40,844	32,095	40,787
	Prepayments and accrued income	893,781	367,401	875,408	322,560
		973,386	504,643	920,042	417,631
12.	Creditors: Amounts falling due within one year
		Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Other loans	260,525	260,525	260,525	260,525
	Trade creditors	80,050	172,360	50,822	139,212
	Amounts owed to group undertakings	-	-	-	33,387
	Corporation tax	4,957	-	-	-
	Deferred tax provision (see note 17)	1,268	3,406	-	-
	Othertaxation and social security	76,216	61,518	61,443	52,242
	Other creditors	52,666	11,071	-	160
	Accruals and deferred income	492,975	470,717	492,975	470,717
		968,657	979,597	865,765	956,243

SS Page 38

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021

13. Creditors: Amounts falling due after one year

			Group		Company	Company
			2021	2020	2021	2020
			£	£	£	£
	Other	loans - charity	2,953,937	3,084,200	2,953,937	3,084,200
	Other	loans - subsidiaries	50,000	-	-	-
			3,003,937	3,084,200	2,953,937	3,084,200
14.	Loans		Group		Company
			2021	2020	2021	2020
			£	£	£	£
	Amounts fallingduewithin one year
	Other	loans	260,525	260,525	260,525	260,525
	Amounts fallingdue between one and two years
	Other	loans	260,525	260,525	260,525	260,525
	Amounts fallingdue between two and five years
	Other	loans	1,092,100	1,042,100	1,042,100	1,042,100
	Amounts falling due overfive years
	Other	loans	1,651,312	1,781,575	1,651,312	1,781,575
	Creditors include amounts not wholly repayable within 5 years as follows:
			Group		Company
			2021	2,020	2021	2020
			£	£	£	£
		Repayablebyinstalments	1,651,312	1,781,575	1,651,312	1,781,575

A loan was taken out in March 19 for the purchase of the new helicopter over 10 a year period.

The loan financing is in the form of a secured loan with a variable interest rate of 2.75% above LIBOR and there is a fixed charge secured against the aircraft, which has a carrying value of £3,214,462.

The terms of the security provide for the lender to claim title to the aircraft in the event of a default, details of which can be found on Companies House.

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2.8.0.0

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2021 a'9.—0—:0°0=

15. Deferred income

15.	Deferred income
				Group and		Company
						£
	Deferred income at 1 April 2020					363,760
	Resources deferred during the year					247,561
	Amounts released from previous years					(345,550)
	Deferred income at 31 March 2021					229,351
16.	Deferred taxation
		Group		Company
		2021	2020	2021		2020
		£	£	£		£
	At beginning ofyear	(3,406)	(1,178)	-		.
	Released duringtheyear	-	(2,228)	-		-
	Atend ofyear	(3,406)	(3,406)	-		-
	The deferred taxation balance is made up
	as follows:	Group		Company
		2021	2020	2021		2020
		£	£	£		£
	Accelerated capital allowances	(3,406)	(3,406)	-		-
17.	Statement offunds
		Unrestricted	funds	Restricted		Subsidiary
		Capital	Undesignated	Funds	Companies
		Fund	Funds
	2021	£	£	£		£
	Brought Forward	9,424,556	4,438,996	-		324,046
	Income resources	-	7,650,261	-		867,468
	Resources Expended	(1,261,577)	(5,421,764)	-		(746,289)
	Gains/(losses)on investment	-	212	-		.
	Transfers in/(out)	278,088	(95,238)	-		(182,850)
	Carried Forward	8,441,067	6,572,467	.		262,375
		Unrestricted	Funds	Restricted		Subsidiary
		Capital	Undesignated	Funds		Companies
		Fund	Funds
	2020	£	£	£		£
	Brought Forward	-	13,503,041	-		458,353
	Income resources	-	6,225,790	1,000,000		1,087,445
	Resources Expended	(1,572,681)	(5,615,616)	(1,000,000)		(897,828)
	Gains/(losses)on investment	-	(906)	-		-
	Transfers in/(out)	10,997,237	(9,673,313)	.		(323,924)
	CarriedForward	9,424,556	4,438,996	-		324,046

ee Page 40

The Great North Air Ambulance Service

(A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

eee

18.	Analysis ofnet assets between funds
		Unrestricted Funds		Restricted
		Capital	Undesignated	Funds	Total
		2021	2021	2021	2021
		£	£	£	£
	Tangible fixed assets	11,449,405	29,510	-	11,478,915
	Intangible fixed assets	206,124	.	-	206,124
	Investments	-	3,801	-	3,801
	Current assets	-	7,559,663	-	7,559,663
	Creditorsdue within one year	(260,525)	(708,132)	-	(968,657)
	Provision for liabilities	-	=	7	r
	Creditors due in more than one year	(2,953,937)	(50,000)	-	(3,003,937)
		8,441,067	6,834,842	-	15,275,909
	Analysis ofnet assets betweenfunds - prioryear	year
		Unrestricted Funds		Restricted
		Capital	Undesignated	Funds	Total
		2020	2020	2020	2020
		£	£	£	£
	Tangible fixed assets	12,231,171	46,428	-	12,277,599
	Intangible fixed assets	277,585	-	-	277,585
	Investments	-	3,589	-	3,589
	Current assets	-	5,692,622	-	5,692,622
	Creditors due within one year	-	(979,597)	-	(979,597)
	Provision for liabilities	-	-	-	-
	Creditors due in more than one year	(3,084,200)	-	-	(3,084,200)
		9,424,556	4,763,042	-	14,187,598
19.	Analysis ofchanges in net debt
		At start of		Non-Cash	At end of
		year	Cash Flows	Movement	year
	Cash	5,145,133	1,347,719	-	6,492,852
	Loans falling due with one year	(260,525)	130,263	(130,263)	(260,525)
	Loans falling due after more than oneyear	(3,084,200)	(50,000)	130,263	(3,003,937)
	Total	1,800,408	1,427,982	-	3,228,390

1. Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted

to £123,426 (2020: £99,364). Contributions totalling Enil (2019: £nil) were payable to the fund at the balance sheet date and are included in creditors.

a Page 41

The Great North Air Ambulance Service (A company limited by guarantee)

Notes to the financial statements

for the year ended 31 March 2021

21. Related party transactions

Dr K Han is a trustee and is a Honorary Medical Director with NEAS. During the year income from NEAS from a contract to provide MERIT services amounted to £307,853 (2020: £303,603) in respect of the charity.

Mr P Neal is a trustee and was an employee of UNW. During the year professional fees of £13,328 (2020: £14,000) were charged by UNW, in respect of the charity and £3,500 (2020: £4,770) in respect of the trading company.

Mrs J Trench is a trustee and a director of C.Change Consultancy. During the year consultancy fees charged by C.Change amounted to £19,500 (2020: £1,750) in respect of the charity and Enil (2020: £nil) in respect of the subsidiary companies.

MrJ Devine is a trustee and a partner in Muckle LLP, solicitors. Legal fees charged by Muckle LLP and paid during the year amounted to £25,590 (2020: £28,483) in respect of the charity and £1,250 (2020: £4,154) in respect of the subsidiary companies.

Related party transactions between the charity and the subsidiaries amounted to £4,926 (2020: £1,139)

22. Principal subsidiaries

Principal subsidiaries
	Company	Principal			Class of				Included in
Name	Number	Activity			Shares			Holding	Consolidation
Great North AirAmbulance	3662874	Trading	subsidiary		Ordinary			100%	Yes
Service Trading Company		for recycling
Limited		collections
ARC Medtech Limited	12189819	Trading	subsidiary		Ordinary			100%	Yes
		for royalites		of
		software
					Profit		for	Net
	Income		Expenditure		the	period		Assets
Name	£			£			£	£
Great North Air Ambulance	837,968		737,921		100,047			285,792
Service Trading Company
Limited
ARCMedtechLimited	29,500			8,368		21,132		19,133

23. Capital Commitments

During the year the charity took the decision to initiate the purchase a Class 1 aircraft, to replace the current class 2 aircraft, located at our Langwathby base. The total amount of capital commitment is £1,960,000. A deposit of £525,000 was paid in November 2020 and is included within prepayments at 31st March 2021.

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