2022-12-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Registered company number: 04845905 Registered charity number: 1098874

THE AIR AMBULANCE SERVICE

(A company limited by guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

	Page
Chairman's statement	1
Chief Executive’s report	2
Trustees’ Annual Report	3-17
Independent Auditor's report to the members	18-21
Group Statement of Financial Activities (incorporating the income and expenditure account)	22
Group Balance Sheet	23
Charity Balance Sheet	24
Consolidated Cash flow Statement	25
Notestothefinancialstatements	26-42

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CHAIRMAN’S STATEMENT

Since | joined The Air Ambulance Service my admiration for all that we achieve has grown immeasurably. Our community of donors, volunteers and staff lie at the heart of what we do. Without the enthusiasm and commitment of so many people in so many different ways, our medical and flight teams would not be able to operate our lifesaving services.

In 2022 we responded to 3,119 urgent requests for help. Since the Warwickshire & Northamptonshire Air Ambulance (WNAA), and Derbyshire, Leicestershire & Rutland Air Ambulance (DLRAA) were established we have exceeded an incredible 48,000 missions!

A major clinical development in the last 12 months is that we now carry blood and plasma on board our helicopters and critical care cars. Our highly trained crews can provide pre-hospital emergency blood transfusions to patients who have severe injuries involving life-threatening blood loss.

The Children’s Air Ambulance (TCAA), our national Paediatric Intensive Care Transfer and Retrieval Service, has entered into a new era. We have commissioned the first of two brand new aircraft, G-NICU, which is fully operational from our Oxford airbase. TCAA continues to work in close partnership with eleven NHS Clinical Partners across the country, providing transfers for the country’s most seriously ill babies and infants. Our AgustaWestland AW169 aircraft provides specialist support for both young patients and their families. The new TCCA aircraft are fitted with state-of-the art equipment. In short, there is no other emergency response service like it in the country: something we can all be proud of.

The enduring commitment shown by all of our stakeholders ensures that the charity continues to adapt and maintain the highest possible standards of clinical care. This is all the more important with the additional pressures experienced by those working in the NHS and the challenges brought on by the cost-of-living crisis.

As you might expect, our costs have increased significantly, from the fuel required to run our clinical service to the electricity needed to maintain our shops and retail network. Once again, those that support us financially have responded to these challenges in the most extraordinary way. | constantly remind myself that ail of our income comes from either charitable support or trading and | am hugely grateful to many thousands of people for their contributions. Be in no doubt that every donation saves lives because we are able to provide the best possible emergency medical services.

This year, 2023, sees the Warwickshire & Northamptonshire Air Ambulance, and Derbyshire, Leicestershire & Rutland Air Ambulance celebrate 20 and 15 years of service respectively. Our Children’s Air Ambulance will celebrate 10 years since we safely delivered our first infant patient transfer. We can all look back on 20, 15 and 10 years with pride. We also look forward to the next exciting chapter in our history. We have recently recruited a group of new Trustees and a new Chair of our Trading Company Board. They are already having a positive impact on our activities and | am grateful to all of them for their support. As | write this report, we are well advanced in recruiting a new Chief Executive and | am confident that we shall be able to make an excellent appointment. We are in the final stages of developing our next strategic plan which will provide the roadmap for our future activities. In my brief time as Chair of Trustees | have come to fully understand and appreciate the significance of what we do and all that we achieve. Whatever your role in our charity, a most sincere thank you. Your contribution is an essential part of our success and | do hope that you are as proud as | am of all that we achieve together.

Professor Bob Allison CBE DL Chair of Trustees

. THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CHIEF EXECUTIVE’S REPORT

As Acting CEO of The Air Ambulance Service (TAAS) it gives me great pleasure to reflect on the fantastic hard work and accomplishments made across the charity in 2022, as well as looking forward to leading the charity this year as we celebrate significant milestones across our lifesaving services - 10 years of the national Children’s Air Ambulance (TCAA), 15 years of the local Derbyshire, Leicestershire & Rutland Air Ambulance (DLRAA) and 20 years of the local Warwickshire & Northamptonshire Air Ambulance (WNAA).

At the beginning of last year, we welcomed Professor Bob Allison CBE, as TAAS’ Chair of the Board of Trustees, and he has since brought a wealth of knowledge and professional experience, helping to lead the charity in this next phase of development and growth.

Despite the economic difficulties people faced with the cost-of-living-crisis, 2022 saw many significant developments across the charity, especially enhancements to our clinical services, all made possible by the continued generous support from our loyal supporters and donors, as well as our dedicated staff and volunteers.

Our 24/7 frontline HEMS (Helicopter Emergency Medicine Service) services enhanced as we made clinical developments through bringing blood products onboard our helicopters and Critical Care Cars and we trained our critical care paramedics in the use of ultrasound equipment.

Following this, we joined forces with West Midlands Police on a collaborative campaign in a bid to tackle the rising and potentially tragic issue of knife crime - with plans to join more forces to help educate and prevent this key topic, hoping to make a positive impact and save more lives.

Not only did we continue to provide leading pre-hospital emergency care to our patients and support the NHS by air and road, but we also made strides across other areas of the charity — vital in raising the funds needed to keep our crucial services operational.

As we receive no government funding, our services are funded entirely by voluntary donations and by the trading and fundraising activities we undertake, and last year we added to our portfolio of retail shops with the opening of a homeware store in Stratford-upon-Avon, and we celebrated income from incredible donors such as East Midlands DHL team whose support reached £100k and received over £300k worth of Gifts in Kind.

The Children’s Air Ambulance continues to pioneer across paediatric and neonatal transfers and has integrated three new bespoke incubators - England's first incubator on a rotary-wing aircraft — into service which have further assisted the Clinical Partner Teams we work alongside during lifesaving flights.

I'd like to take this opportunity to thank everyone involved in enabling us to keep enhancing our charity, and to deliver such fantastic clinical services, from the frontline crews to all staff, volunteers, and supporters. It's the shared passion and commitment that has made 2022 a success on so many levels as we achieved great things together - we truly are all lifesavers.

We now look forward to a fantastic 2023, a future of continued achievement as we make our vision a reality, to ensure children grow into adults, for adults to live longer and for families to stay together, as bereavement through trauma becomes rare.

Emma Peake Acting Chief Executive

‘ THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees are pleased to present their annual report together with the consolidated financial statements of the charity and its subsidiary (“the Group’) for the year ending 31 December 2022 which are also prepared to meet the requirements of a Directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

LEGAL AND ADMINISTRATION INFORMATION

Charity Name The Air Ambulance Service Charity Registration Number 1098874 Company Registration Number 04845905 Registered Office Blue Skies House Butlers Leap Rugby Warwickshire CV21 3RQ independent Auditors Crowe U.K. LLP 4 Floor, St James House St James Square Cheltenham GL50 3PR Bankers Barclays Bank PLC Meridian Business Park Leicester LE19 1RP Investment Managers Cazenove Capital 1 London Wall Place London EC27 5AU CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

STRUCTURE, GOVERNANCE AND MANAGEMENT

Principal Activities

The principal activities of The Air Ambulance Service (“TAAS’) are the relief of sickness and injury and the protection of human life, principally (but not exclusively), by the provision of an air ambulance service.

Statement of public benefit

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit’.

The Air Ambulance Services’ charitable objects are stated within its memorandum and articles of association and as such the trustees ensure that the charity's activities are carried out for the public benefit through its strategic priorities. This is done primarily through the delivery of services by the provision of an emergency and children’s air ambulance service. This report allows us to show how our charitable funds are spent and the impact and benefits that has on those requiring our services, as well as the wider impact on the communities we operate in.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Our fundraising standards

As a charity reliant on voluntary income we take an active and responsible approach to our fundraising. We are registered with the Fundraising Regulator and are firmly committed to ensuring we are compliant with their Code of Practice.

Our fundraising activity is carefully planned and all supporter data on our fundraising database is governed by strict consent, unsubscribe and complaints processes. Oversight of these processes is carried out by an internal Data Protection Officer, ensuring we are kept up to date with new legislation as well as supporter feedback.

The Charity is committed to providing an excellent service to supporters and retail customers but we recognise that occasionally things don’t always go according to plan. With this in mind, we encourage complaints and suggestions to help shape the ongoing development of our services and the way in which we work with our supporters.

Company Status

The charity is a company limited by guarantee (registration number - 04845905), and as such has no share capital. The company is governed by its Memorandum and Articles of Association which were last updated in November 2019. The liability of the members of the company, as set out in the Memorandum of Association, is limited to £1 per member.

Board of Trustees

The Trustees of the charitable company, who are directors for the purpose of company law, who served during the year and up to the date of this report are set out as follows:

Professor R J Allison CBE DL (appointed 2"¢ February 2022 and co-opted as Chair on 18t March 2022) Mr C M Faircliffe (Outgoing Chair— resigned 17 May 2022) Mr P Wells (appointed 14'" March 2022)

Mr J C R Tennent (appointed 14" March 2022)

Mr P Holdcroft (resigned 18! March 2023)

Mr N Bandtock (resigned 18 March 2023)

Mr P Whatmore

Mrs M Bradley (resigned 21% October 2022)

Mr F Jaftri Mr A Majithia (resigned 7" September 2022) Ms D Atkins Mr A Newman (resigned 7° September 2022) Ms S Baumann (appointed 21st December 2022)

Ms C Sheppard (appointed 218 December 2022)

Mr T Boxell (appointed 21st December 2022)

Mr A Hoyle (appointed 21st December 2022)

Directors are selected against pre-determined skills criteria designed to ensure that the Board has the necessary knowledge with which to direct The Air Ambulance Service.

Key Management Personnel: Senior Management Team of The Air Ambulance Service and its Subsidiary at the year end

Ms E Peake Acting CEO Mr K Tailor Director of Finance Mr R Clayton Director of Operations Ms D Young Director of Income Generation

Trustee and Director induction and training

Trustees are inducted to the organisation on appointment and are briefed as appropriate. As part of ongoing training, trustees have received formal charity law updates, strategic sessions and presentations in relation to operational requirements during the year.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Organisational Structure

The Air Ambulance Service Board of Trustees meets at least 4 times per year to oversee the development of the charity and the work of the Senior Management Team.

The Air Ambulance Service Trading Company Board also meets at least 4 times a year, to oversee the work and development of the trading subsidiary.

There is a Finance Committee which considers matters of finance, audit and control for both the Charity and the Trading company. The Finance Committee meets four weeks prior to the Boards so that the committee can report the discussions and actions arising from their meeting. There are also additional committees in place which consider matters of governance, operations, marketing and human resources, which provide additional reporting processes.

During the year an Audit & Risk Committee was established to consider matters of compliance and a Nominations Committee which has responsibility for senior staff and Trustee appointments, to ensure the Board aims to attract a diverse range of candidates who have the skills the Charity needs.

The Trustees are responsible for the control over all activities and authorise all major transactions of the charitable company and its subsidiaries. Day to day activities are overseen by the Chief Executive and the Senior Management Team on a delegated basis.

Pay policy for Senior Staff

Remuneration Committee considers pay and other benefits for senior staff and makes recommendations to the Board of Trustees for approval. The senior management team comprise the key management personnel of the Charity in charge of directing, running and operating the Charity on a day-to day-basis.

Risk Management

A detailed risk management process is in place in respect of clinical operations, which is in accordance with the Care Quality Commission guidelines and advice. In addition a wider organisation focussed Risk Management process is in place and is monitored regularly by the Senior Management Team and Board.

In line with best practice and the requirements of the Charities SORP (FRS 102), the Trustees have reviewed all major potential risks for the charity and taken appropriate measures to mitigate their impact.

OBJECTIVES AND ACTIVITIES

The objects of the charitable company have not changed and are as stated earlier under the Principal Activities.

The activities of the Charitable company continue to be:

e The delivery of Helicopter Emergency Medical Services (HEMS), a trauma service responding to road accidents, falls of many kinds, medical emergencies, injuries received in remote locations and many other scenarios. These services are based in Warwickshire, Northamptonshire, Derbyshire, Leicestershire and Rutland.
e The Delivery of the Children’s Air Ambulance, a hospital-to-hospital paediatric transfer service. This is a national service and involves liaison with critical care hospitals and paediatric retrieval teams across England.

TheOur work makesa difference to people, to communities and to society as a whole. Our responsibility is far reaching. obvious impact is on saving lives, improving clinical outcomes and being able to react quickly and efficiently to emergencies but our influence is also able to challenge, and when necessary, try to change Government policies on health; we are able to innovate in clinical care, challenge the boundaries that often exist in state run services and invest heavily in the development of the people who deliver that care.

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Our primary purpose is healthcare and we will lead the way in our chosen fields of operation in trauma and medical emergencies via our HEMS services and in the innovation and development of the unique critical transfer and retrieval service that is The Children’s Air Ambulance. However our reach goes much further in our impact on society. We are a significant employer and contributor to our local economies; we are a socially responsible organisation that values the very communities that support us. Our expertise is made available to smaller charities, to education establishments and to organisations with similar goals. We care about our environment and we must use our abilities to change, shape or challenge the voluntary sector as a whole for genuine public benefit.

We are an organisation that engenders pride and purpose in every individual associated with us.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Helicopter Emergency Medical Services (HEMS) and Clinical Operational Report

Operating two specialist AW109 helicopters and two Rapid Response Vehicles (RRV) daily, The Air Ambulance Service (TAAS) remains one of the busiest air ambulance service providers in the country, providing critical care, lifesaving services to the NHS 24 hours a day, 365 days a year.

The Air Ambulance Service (TAAS) attended 1,586 critical care missions by helicopter, and a further 1,538 critical care missions by RRV — 3,124 critical care missions in total for 2022. TAAS has responded to 48,475 lifesaving missions since services commenced in 2003, a truly remarkable achievement.

The dedicated spare helicopter, which was introduced as part of the new helicopter fleet in March 2021, has been an asset during 2022 for periods of scheduled maintenance (routine servicing) and unscheduled maintenance (repairs) of the primary helicopters. This additional resilience has ensured that our life saving services by air were maintained throughout the year. The spare helicopter was also converted and used as the Children’s Air Ambulance (TCAA) during 2022 for an extended period whilst awaiting delivery of the new TCAA fleet.

Extended flying hours, May to August inc., were once again undertaken in 2022 following the successful trial in 2021. During extended flying hours both aircraft were utilised not only in our primary regions but also providing mutual assistance in other areas. The DLRAA team who are based at Nottingham Heliport and have been since December 2021 were further supported by the ‘Helipad Appeal’ following a successful application. This application facilitated the funding of a night landing light system to ensure safety is maintained when returning to base during the hours of darkness.

New Rapid Response Vehicles (RRV) were delivered in December 2022, this is a far better position than previously anticipated as the new vehicles had been delayed till May 2023 due to the global semiconductor shortage. A new vehicle conversion specialist (audible and visual warning devices and sirens) was selected following a competitive tendering process. It is expected to take six weeks to convert both vehicles, and the clinical operations team look forward to receiving the new vehicles early 2023 where the old fleet will be retained to provide much needed resilience during periods of servicing and maintenance.

As a pre-hospital provider committed to delivering excellence in patient care we continue to provide specialist prehospital doctors on all four of our operational platforms (helicopters and RRVs). TAAS achieved doctor cover at an impressive 97% of occasions in 2022. To further increase resilience, a doctor recruitment and selection event took place in 2022 to recruit 12-month fixed term fellowship positions. We are delighted to report that two positions have been offered and accepted for 2022/23 term which will further enhance doctor cover.

In addition to recruiting new doctors, TAAS continues to support the West Midlands Deanery with their PHEM (PreHospital Emergency Medicine) Training Programme, essentially helping to train and educate the next generation of PHEM doctors. TAAS has also been contacted by the East Midlands deanery regarding supporting this region with ‘PHEM training. Early discussions with the Deanery look positive and will continue into 2023.

, THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

There was also some movement within the Critical Care Paramedic team in 2022, whether moving on to new ventures, stepping down, or advancing their own career within TAAS. | am delighted to report that we have appointed a new Derbyshire Leicestershire & Rutland Air Ambulance Airbase Manager in 2022, and following a very successful recruitment campaign, selected 3 trainee HEMS paramedics. All three trainee HEMS have completed their ‘technical crew member’ (aviation awareness) course with Sloane Helicopters Limited before joining TAAS operationally and will now commence their clinical competency sign off phase which is scheduled to conclude early 2023.

Following a productive Clinical Quality Manager secondment, the role has now been made substantive. This new role to the management structure has already proven to be of great benefit by providing much needed capacity to drive the clinical effectiveness and quality of our services as well as supporting the Head of Operations to progress the clinical strategy.

TAAS achieved its strategic aim to have blood on board its operational platforms in 2022. From February we started to carry four units to administer blood to our most critically ill patients. From implementation TAAS has already delivered this additional treatment on average once a week. Along with this we have started to work with the East Midlands networks and other pre-hospital providers to develop and implement a ‘blood to scene’ process involving hospitals across the East Midlands regions. The ‘blood to scene’ initiative are for occasions where further blood products are required at scene due to own products being exhausted such as prolonged entrapments at road traffic collisions.

2022 had several business case proposals submitted and approved by the Clinical Governance Group. Proposals approved during 2022 included new devices such as syringe drivers (used to administer drugs over specified periods) and advanced surgical equipment. These two areas alone changed how we deliver certain medication to patients as well as performing invasive surgical procedures for our sickest, most severely injured patients.

TAAS clinicians undertook ultrasound (a device to capture live images) courses with East Anglian Air Ambulance. This initial course provides the foundation to use ultrasound in the pre-hospital setting. A bespoke training course is being developed by TAAS with the objective of each Critical Care Paramedic signed off as competent as we move into 2023.

Honorary contracts are now in place with neighbouring Major Trauma Centres allowing our clinicians to undergo shifts in different departments and thus continue their professional development. This exposure will assist the Clinicians with assessments and treatment in the pre-hospital setting. Having knowledge of pathways within hospitals and exemplary care before reaching hospital can only serve patients with better outcomes.

Learning and reflection from missions is an integral part of continuous improvement and we have been actively progressing Data Sharing Agreements with Major Trauma Centres, Trauma Units and Specialist Hospitals. The Clinical Liaison Officer has been developing agreements to allow the safe and secure sharing of patient information between the Hospital Trusts and TAAS. Sharing patient information and their recovery etc. will provide TAAS clinicians with invaluable insight into the treatment they provided; what went well and what could be improved to further enhance our services. Feedback will also provide a mechanism for patients and relatives to provide feedback to the Clinical Liaison Officer and ask questions about their treatment to aid their emotional recovery and rehabilitation.

One of the biggest pieces of work throughout 2022, which will continue into 2023, surrounds the TAAS estates strategy. Part of this work involves locating (based on historical data) potential sites for new HEMS operational bases. TAAS has secured the assistance of a third party who has vast experience in this field and has assisted several air ambulances across the country.

2023 will see the implementation of an updated clinical mission database. Version 2 will see the development of an electronic patient report form system (ePRF) which will negate the need to use and share paper copies.

Quality outcomes/audit reports continued to be reviewed monthly by the Operations Management Team and quarterly by the Clinical Governance Group. Audit assurances for anaesthesia, sedation, surgical skills and Infection, Prevention & Control for both operational bases continue to provide excellent assurance.

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Children’s Air Ambulance Operational Report

Following the termination of the helicopter contract by Specialist Aviation Services (SAS) in September 2021 TAAS has been working with Sloane Helicopters Limited to introduce two new AgustaWestland 169 (AW169) helicopters. The termination was in response to TCAA being asked to pay additional costs, for two aircraft, which would have doubled the monthly expenditure for the remaining four years of the contract. This would have amounted to more than £15 million additional expenditure.

In the interim, an AgustaWestland 109 (AW109) was introduced in 2022 to ensure continuity of services and minimise downtime caused by SAS’s termination. | am pleased to report the first new AW169 helicopter finished its clinical conversion and entered service in December 2022, with the second scheduled for early 2023.

As described above, the termination did impact on mission numbers for 2022 due to the limitations with the interim service (single, smaller helicopter). TCAA completed 30 critical missions across the country in 2022 supporting 11 NHS paediatric and neonatal specialist transport teams in their lifesaving work. TCAA has completed 706 missions since services commenced.

TCAA has been historically serviced from two operational bases, one north and one south. Unfortunately, the base in the north at Doncaster Sheffield Airport experienced several operational challenges due to poor support services at the airport causing delays to missions. As such TCAA team explored alternative locations whilst looking at an amicable exit from the airport. | am pleased to report that Gamston Airport has been chosen as the new north base location and work continues with the airport management team to relocate the operation early 2023.

Following contact by the Birmingham Women’s and Children’s NHS Foundation Trust specialist transport team ‘KIDS’ (Kids Intensive Care and Decision Support) work began onboarding KIDS as a new Clinical Partner Team. The onboarding process concentrates on understanding and compliance to the Children’s Air Ambulance Governance Framework. KIDS currently undertakes missions as a Level 2 (Team Moves Only) whilst work is underway to provide KIDS with a patient transfer stretcher early 2023.

In readiness for the new helicopters/service TCAA continued to innovate, working closely with NHS neonatal specialist transport teams to design and develop an incubator transport system for the new helicopters. Project management worked extremely well, and | am delighted to report 3x incubator transport systems were delivered free-of-charge to the NHS in November 2022 gaining a significant amount of media attention. TCAA is the first and only helicopter provider in England to support the NHS with a helicopter certified incubator transport system. Also, in readiness for the new service, a ‘TCAA Crew Member’ was trialled during 2022. The TCAA Crew Member acts as the technical expert for the clinical interior equipment, the interface between the pilots and clinicians, and non-clinical problem solver. Introduction of the TCAA Crew Member has also eliminated the need for NHS clinicians to attend annual aviation environmental training, saving the NHS a significant amount of training hours with compromising safety. Due to the overwhelmingly positive feedback following the trial the new role has been permanently introduced.

The following charts illustrate the number, type, and spread of missions in 2022.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
Breakdown of HEMS Missions flown by fleet 2022
Total 1586 Missions
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
m@DLRAA ® WNAA
Breakdown of HEMS RRV Missions by fleet 2022
Total 1538 Missions
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
MOLRAA mWNAA
Breakdown of regions served by WNAA HEMS
[2022]
Westest 1Midland4% 31s [Aircraft] otal 681 Missions
Derbyshire, 8%
Other, 4% Leicestershire,
Staffordshire, 2% 16%
Rutland, 1% Warwickshire, 23%
Northamptonshire,
27% Nottinghamshire; Lincolnshire, 1%
----- End of picture text -----

;

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
Breakdown of regions served by DLRAA HEMS
Aircraft 2022
Total 905 Missions
Staffordshire Other West Midlands
Northamptonshire 1% IN‘ 1% 1% Derbyshire
7% ’ 33%
Rutland
Nottinghamshire Ty
20% A
Lincolnshire | ~—
5% Warwickshire
3% Leicestershire
27%
Breakdown of regions served by WNAA RRV 2022
Derbyshire, 1% Total 734 Missions Leicestershire,
West Midlands, ; 11%
39%
FA : \ warwickshire,
Other, 2% i Northamptonshir
e, 20%
Staffordshire, 1%
----- End of picture text -----

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
Breakdown of regions served by DLRAA RRV 2022
Total 804 Missions
Northamptonshire Rutland Staffordshire
% % 1%
2% 2% lA Derbyshire
| 26%
Nottinghamshire \
33% \
Lincolnshire | Leicestershire
3% 32%
Warwickshire
1%
Breakdown of Mission types Aircraft 2022
Total 1586 Missions
OTHER, 17%
INDUSTRIAL, 3% RTC, 29%
FALL,er
SPORTS, 6% MEDICAL, 36%
«RTC = MEDICAL =SPORTS = FALL = INDUSTRIAL = OTHER
----- End of picture text -----

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

----- Start of picture text -----
TRUSTEES’ ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
----- End of picture text -----

----- Start of picture text -----
Breakdown of Mission types RRV 2022
Total 1538 Missions
OTHER, 31%
INDUSTRIAL, 1% CRTRTC, 25%
FALL, 10%We LaeMEDICAL, 33%
SPORTS, 1%
= RTC =MEDICAL «SPORTS =FALL = INDUSTRIAL » OTHER
Breakdown of Mission types WNAA 2022
Total 1415 Missions
OTHER, 25%
INDUSTRIAL, ial _
FALL, 1%>
10%=
y MEDICAL, 33%
SPORTS, 3%
Breakdown of Mission types DLRAA 2022
Total 1709 Missions
OTHER, 23%
INDUSTRIAL, ae RTC, 26%
FALL, 2%sS
10% - “
MEDICAL, 35%
SPORTS, 3%
----- End of picture text -----

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
TCAA Missions 2022
----- End of picture text -----

----- Start of picture text -----
7
6
5 .
4
3 .
0 ae . 2s = - ua LL a - : oll
JAN FEB MAR APR MAY = JUN JUL AUG SEPT OCT NOV DEC
TEAM MOVE GPATIENT <6kg & PATIENT 6kg - 30kg
BAPATIENT 30kg - 130 kg @ incubator & DECLINED
Compliments 2022
@ Teamwork |
@ Professionalism
@ Speed of Service
f @ Quality of Care
‘ y m Thanks
----- End of picture text -----

: THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Financial Position

We receive no government support. We rely solely on donations, legacies, sponsorship, grants, fundraising events and our retail operations. We believe this enables us to ensure that we put the needs of the patient at the top of our entire decision making.

We are in a strong and better than anticipated position, following decisions we had to make in earlier years, which allows us to move forward feeling confident in increasing our investment in our strategy to support more people through our services.

We are confident that The Air Ambulance Service remains a financially stable organisation and that we are well positioned to operate as effectively as possible.

We benefitted from an incredible response from our supporters, enabling us to perform better than anticipated, generating a total £34 million income for the year, being £3 million more than the previous year.

The sustainability of our income allows us to cope with increasing costs, secure the stability of the charity by moving towards our reserves policy and as always, to ensure the maximisation of funds raised in the operation and running of the Helicopter Emergency Medical Services and The Children’s Air Ambulance.

Reserves policy

We have improved our reserves position in 2022, in line with the desire to secure the stability of the Charity by holding 12 months operational costs, which are approximately £13 million. As at 31 December 2022 the Charity held unrestricted free reserves of £31 million. This provides us with the necessary fall-back position to maintain our operational capabilities in periods of downturn and invest in new equipment as it becomes available.

Going concern

The financial statements have been prepared on a going concern basis as the trustees consider that adequate reserves continue to be available to fund the activities of the charity and group for the foreseeable future and believe no material uncertainties exist. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Streamlined Energy and Carbon Reporting (SECR)

The Charitable group is reporting energy and carbon emissions in compliance with Companies (Trustees Report) and Energy and Carbon Report Regulations 2019.

UK Greenhouse and gas emissions and energy use data forthe period	2022	2021
Energy consumption used to calculate emissions (kWh)	1,429,372	1,475,597
Emissions in metric tonnes CO2e
Gas consumption	34.98	31.79
Owned transport	33.06	34.42
Purchased electricity	18.47	20.72
Business travel in employee owned vehicles	61.07	48.77
Total emissions in metric tonnes CO2e	147.58	135.7
Intensityratio	0.35	0.36

The chosen intensity measurement ratio is total gross emissions in CO2e per no. of employees.

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial Instruments

The charity does not use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk and manages this through credit control procedures. The trustees do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position or performance.

The Companies (Miscellaneous Reporting) Regulations 2018 requires large companies to include detail in their annual report describing how the Trustees have had regard to matters set out in section 172 (1) of the Companies Act 2006. The Trustees statement is set out below.

Section 172 (1) statement Companies Act 2006

The trustees have acted in the way which they consider, in good faith, promotes the success of the charitable group for the benefit of its members and stakeholders as a whole, and in doing so have given regard to (amongst other matters):

Business relationships

With a highly committed and dedicated workforce, the charitable group takes great pride in listening to what our beneficiaries and stakeholders want and continues to provide the level of service they have come to expect, leading to continued increases in the awareness of the charitable group's activities and operations.

Our relationship with the community

As a charity, public benefit is at the heart of all we do. The Chief Excecutive’s report together with the Objectives & Activities and Achievements & Performance section of the Trustees’ Annual Report gives full details of the impact of our operations.

Maintaining a reputation for high standards

As a fundraising charity, we are compliant with the Code of Conduct issued by the Fundraising Regulator and take our responsibilities for exemplary clinical care very seriously. Further detail can be found in the Clinical and Operational Report included within the Trustees’ Report.

Our people

At the end of 2022, we employed 421 members of staff and it is only through the combined effort of our whole workforce — our employees, supporters and volunteers that we can change the lives of so many. The charity encourages the involvement of employees by means of regular employee meetings and engagement in decision making processes that impact on them directly. Further details regarding key management personnel can be found in the Structure, Governance & Management section of the Trustees’ Annual Report.

Employee involvement and employment of the disabled

Staff communication meetings are held on a quarterly basis for presentations and discussion of key areas including business updates and projects.

The Air Ambulance Service has a number of policies and procedures in relation to all personnel matters, including:

e Equal opportunities; and e Health & Safety

The recruitment and training of staff is undertaken in accordance with the charity's equal opportunities policy and in line with the Disability Discrimination Act (1995).

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Funds held as Custodian Trustees

The Charity has access to and control over the funds held for The Children’s Air Ambulance Service lottery. These funds are held in a separate bank account from the funds of the charity. The Charity is registered with the Gambling Commission to run this lottery with day-to-day operations being under the control of a third party. Funds are released to the Charity in accordance with accounts submitted by the third party.

Principal Risks and Uncertainties The Board and Senior Management Team have established a risk register which identifies the current perceived risks and which is reviewed at all monthly Senior Management Team and quarterly Trustee meetings.

We have a formal process in placewhereby all types ofrisksfaced bythe Charity have been considered as to their	We have a formal process in placewhereby all types ofrisksfaced bythe Charity have been considered as to their
probability and impact, measuresand	and strategieshavebeen documented and implemented todealwith the identified
risks on both an individual and overall basis. All activity is reviewed in the context ofthese risks and our principal
risks are noted.
Principal risks	Whatthe risks mean toThe Howwe manage the risks
	AirAmbulance Service
Maintaining financial stability	The risk is that we don't have
	sufficient income to operate. robust budgeting process. We also have
	different income streams to avoid
	dependence on any one income stream.
Governance and strategy	The risk is that we don’t have
	in place to drive our strategy. processes in place to lead strategic change.
People capability and capacity
External influence and perception	There is a risk of loss of public
	purpose because our
	messagingisnotclear.

PLANS FOR THE FUTURE

The Trustees are currently progressing work on the strategic, tactical and implementation plan for 2023-2025 and it is expected this will be completed towards the end of 2023. This document will include a review of our Vision, Mission, Core Values and Core Principles.

Our Vision is that we want children to grow into adults and adults to live longer, making bereavement through trauma rare. Our Mission Statement “Our rapid response services work tirelessly to save lives and alleviate pain and suffering, wherever and whenever needed’ is reflected in our core values which are Compassion, Courage and Creativity.

As an organisation we are clear on three things, our ultimate aim (The Vision), the impact we make on Society (The Mission) and the way we go about achieving this important work (The Values). Every individual in every part of the organisation holds these three things dear to them, for we are not here to do a job: we are here for a purpose driven by passion, commitment and humanity.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Our current strategic aims, as noted below are:

e Continuously advance rapid response critical care services to patients
e Berecognised as a leading authority on pre-hospital emergency care and paediatric transfer services e Raise awareness, understanding and engagement with our charity across the country
e Unite people in the common purpose of our charity and create advocates who will enhance reputation and reach of the charity
e Be the organisation of choice and opportunity for the most talented and driven from diverse backgrounds e Drive best practice across all areas of the organisation in a sustainable, responsible and ethical manner, to ensure a positive impact on the communities and environments in which we operate
e Grow income to £30 million in a diverse and sustainable manner to continue and develop our services.

Each of these will be reviewed and a detailed plan prepared which involves the whole of the Charity and measures to check and report our progress towards these aims.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also Directors of The Air Ambulance Service for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepting Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including income and expenditure, of the charitable group for that period. In preparing these financial statements, 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 2019 (FRS 102);
e make judgments 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; and
e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 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 dissemination of financial statements may differ from legislation in other jurisdictions.

Provision of information to auditor

So far as each of the Trustees is aware at the time this report is approved:

e there is no relevant audit information of which the charitable company’s auditor is unaware; and e the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved by the Board of Trustees on 8 June 2023 and signed on its behalf by:

----- Start of picture text -----
Robert J Allison ¢
Chair of Trustees hor J e Alc -
----- End of picture text -----

THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of The Air Ambulance Service (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended31 December 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charitable Company Balance Sheet, Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

e give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2022 and of the group's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ 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.

, THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit
e the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
e the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

e adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
e the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
e certain disclosures of directors’ remuneration specified by law are not made; or
e we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 17, 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 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.

THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Auditorss responsibilities for the audit of the financial statements

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

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

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

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

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), anti-fraud, bribery and corruption legislation, health and safety legislation, taxation legislation and employment legislation.

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

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed 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.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Use of our report

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

Guy Biggin Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 4'" Floor St James House St James Square Cheltenham GL50 3PR

Date: 15 August 2023

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure Account)

For the year ended 31 December 2022

		Unrestricted	Restricted	2022	2021
	Note	Funds	Funds	Total	Total
		£°000	£7000	£000	£7000
Income
Incomingresources from generated funds
Donations and legacies	2	7,231	2,860	10,091	10,974
Othertrading activities	2	23,057	-	23,057	19,072
Investment income	4	435	-	435	319
Total income		30,723	2,860	33,583	30,365
Expenditure
Costs ofraising funds
Costs ofgenerating voluntary income		5,152	-	5,152	4,349
Commercial trading operations and
other costs		14,182	-	14,182	11,593
Charitable activities
Operation ofAirAmbulances		5,172	2,837	8,009	9,019
Total expenditure	5	24,506	2,837	27,343	24,961
Net income before gains on investments		6,217	23	6,240	5,404
Net (loss)/gain on fixed asset investments		(1,438)	-	(1,438)	1,143
Netmovement in funds		4,779	23	4,802	6,547
Reconciliation offunds
Total Funds brought forward at 1 January 2022		28,530	664	29,194	22,647
TotalFundscarriedforwardat31December	2022	33,309	687	33,996	29,194

The statement of financial activities includes all gains and losses recognised in the year. All income and expenses are derived from continuing activities.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CONSOLIDATED BALANCE SHEET Company number: 04845905

As at 31 December 2022

	Note				2021
		£7000	£°000	£7000	£000
Fixed assets
Tangible assets	10		1,952		1,480
Investments	11		12,165		138,603
			14,117		15,083
Current assets
Debtors	12	4,203		3,952
Stocks		477		503
Cash at bank and in hand		18,030		12,007
		22,710		16,462
Creditors: amounts falling due
within one year	13	(2,831)		(2,351)
Net current assets			19,879		14,111
Net assets			33,996		29,194
Funds
Unrestricted funds
General funds	15		33,144		26,927
Investment revaluation reserve	15		165		1,603
Restricted funds	14		687		664
			33,996		29,194

The notes on pages 26 to 42 form part of these financial statements.

These financial statements were approved by the Board of trustees and were signed on their behalf on 8 June 2023.

Robert J Allison SS Chair of Trustees

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CHARITABLE COMPANY BALANCE SHEET Company number: 04845905

As at 31 December 2022

	Note				2021
		£000	£7000	£7000	£000
Fixed assets
Tangible assets	10		993		620
Investments	11		12,166		13,604
			13,159		14,224
Current assets
Stocks		-		15
Debtors	42	4,236		3,912
Cash at bank and in hand		15,768		10,648
		20,004		14,575
Creditors: amounts falling due
within one year	13	(1,523)		(1,087)
Net current assets			18,481		13,488
Net assets			31,640		27,712
Funds
Unrestricted funds
General funds	15		30,788		25,445
Investment revaluation reserve	15		165		1,603
Restricted funds	14		687		664
			31,640		27,712

The notes on pages 26 to 42 form part of these financial statements.

These financial statements were approved by the Board of trustees and were signed on their behalf on 8 June 2023.

----- Start of picture text -----
Onna)
----- End of picture text -----

Robert J Allison Chair of Trustees

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOW YEAR ENDED 31 DECEMBER 2022

		2022		2021
		£°000		£°000
Reconciliation of net incoming resources
to net cash flowfrom operating activities
Net income		4,802		6,547
Depreciation		582		525
Loss on disposal oftangible fixed assets		-		-
Net loss/(gain) on fixed asset investments		1,438		(1,143)
Decrease/(increase) in stock		26		(176)
Increase in debtors		(251)		(708)
Increase in creditors		480		506
Investment income received		(435)		(319)
Net cash inflowfrom operating activities		6,642		§,232
Cash Fiow Statement
Net cash inflow from operating activities		6,642		5,232
Cash flows from investing activities		435		319
Purchase of intangible fixed assets		-		(3,000)
Purchase of tangible fixed assets		(1,054)		(805)
Increase in cash and cash equivalents
in theyear		_6,023		__1,746
Analysis ofchanges in netcash
	At 1 January 2022	Cash flow	At 31 December 2022
	£7000	£°000		£°000
Cash atbankand in hand	12,007	_ 6,023		_18,030
Reconciliation of Movement in Cash			2022	2021
			£7000	£°000
Net increase in cash and cash equivalents
forthe year			6,023	1,746
Cash and cash equivalents
as at 1 January 2022			12,007	10,261
Cash and cash equivalents
as at 31 December2022			18,030	12,007
Cash flows from investing activities
			2022	2021
			£°000	£000
Investment income received			435	319
	25

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

Accounting policies

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

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

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 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 Air Ambulance Service meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The consolidated accounts incorporate the accounts of the parent charitable company and all group undertakings. Consolidation has been undertaken ona line by line basis. A separate statement of financial activities for the parent charitable company is omitted from the group accounts by virtue of section 408 of the Companies Act 2006.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charitable group is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Gifts in kind i) | Assets given for distribution by the charity are included in the Statement of Financial Activities only when distributed.
ii) Assets given for use by the charity (e.g. property for its own occupation) are included in the Statement of Financial Activities as incoming resources when receivable.
iii) Gifts made in kind but on trust for conversion into cash and subsequent application are included in the accounting period in which the gift is sold.

In all cases, the amount at which gifts in kind are brought into the accounts is either a reasonable estimate of their value to the charitable group or the amount actually realised.

Donated services and facilities Donated services and facilities are included at the value to the charitable group where this can be quantified. In accordance with the Charities SORP (FRS 102), the value of services provided by volunteers has not been included in these accounts.

Legacies

Legacies are recognised at the earlier of the date that probate was granted or the legacy was received. Other legacies notified are not accrued due to uncertainty of value and timing.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

1. Accounting policies — continued

Trading outlets

Retail sales are included in the period in which the sale is initiated.

Structure of funds

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as a restricted fund. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the trustees have chosen to earmark for set purposes are designated funds.

Resources expended

All expenditure is accounted for on an accruals basis. All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. Expenditure is matched against the restricted or unrestricted funds to which it relates. Support costs directly attributable to an activity are allocated to that activity. Other costs that cannot be directly attributed are allocated against the categories based on management's estimate of usage of those services.

a) Costs of raising funds

The costs of generating funds are the costs associated with generating income through fundraising and other activities, including the costs of the commercial trading operations.

b) Charitable activities

The trustees consider that there is only one charitable activity, that of the provision of an air ambulance service.

c) Governance costs

These are the costs associated with the governance arrangements of the charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. The costs include external audit and costs associated with constitutional and statutory requirements e.g. the cost of trustee meetings and preparing statutory accounts.

THE AIR AMBULANCE SERVICE (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

1. Accounting policies — continued

Fixed assets

Capitalisation

All assets falling into the following categories are capitalised.

i) Tangible assets which are capable of being used for more than one year and have a cost equal to or greater than £500, (£200 for The Air Ambulance Service Trading Limited)
ii) | Groups of tangible fixed assets which are interdependent or would normally be provided or replaced as a group with a total value in excess of £5,000 and an individual value of £500 or more, (£200 for The Air Ambulance Service Trading Limited)
iii) Computer software licenses are capitalised as intangible assets where they are capable of being used for more than one year and havea cost, individually or as a group, equal to or greater than £500, (£200 for The Air Ambulance Service Trading Limited)

Tangible Fixed Assets and Depreciation

Fixed assets are recorded at cost or, in the case of assets where assets have been donated to the group, at valuation at the time of acquisition. Depreciation is provided on all tangible fixed assets excluding freehold land, at rates calculated to write off the cost, less estimated residual value, based on values prevailing at the date of acquisition, of each asset, on a straight line basis, over its expected useful life, as follows:

Buildings	7%
Fixtures and fittings	20%
Medical equipment	20%
Office equipment	20%
Motor vehicles	25%
Computerequipment	33%

The holding value of assets is regularly reviewed for impairment and where deemed appropriate assets are written down.

Fixed Asset investments

Investments are a form of basic financial instrument, are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market value. Gains and losses arising on disposals and revaluation throughout the year are included in the statement of financial activities All investment income is treated as unrestricted.

Stock

Stock consists of purchased goods for resale and items to be given to volunteers and people who participate in fundraising events. Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. The value of goods donated for sale in the group’s charity shops is not included in stock. Instead, they are accounted for as income in the period in which the goods are sold.

Debtors

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible into known amounts of cash with insignificant risk of change in value.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

1. Accounting policies — continued

Financial instruments

The charitable company enters into only basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Creditors and provisions

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Pensions

The charitable company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charitable company. The annual contributions payable are charged to the Statement of Financial Activities.

Operating leases

Operating lease rentals are charged to the statement of financial activities on a straight-line basis over the lease term. Lease incentives are charged on a straight-line basis over the term of the lease.

Gift aid payments receivable

The parent charity receives income from its trading subsidiary under the gift aid scheme, which are recognised as distributions to owners in equity within retained earnings of that company.

At the reporting date there was no legal obligation in place for the charity to receive this gift aid payment, although prior to the reporting date the trading subsidiary board had indicated its intention to pay the taxable profits to the parent charity in respect of the reporting date.

There is no tax charge in the year due to the exception under 29.14A of FRS 102. Relief is allowed as the gift aid payment will made by the trading subsidiary to the parent company within 9 months of the year end.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

1. Accounting policies — continued

Judgements in applying accounting policies and key sources of estimation uncertainty

The charitable company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the charitable company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the trustees have made the following judgements:

e Determine whether leases entered into by the charitable company either as a lessor or a lessee are operating leases or finance leases. The decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor or lessee on a lease-by-lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.
e Provisions. A provision is recognised when the charitable company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

e Depreciation and residual values. The Trustees have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual values of fixtures and fittings, and have concluded that asset lives and residual values are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Donations and legacies	Unrestricted	Restricted	Total	Total
	Funds	Funds	Funds	Funds
			2022	2021
	£000	£°000	§=£7000	=£'000
Donations	5,439	-	5439	4,982
Legacies	1,792	2,417	4,209	5,627
Grants receivable (see note 3)	-	443	443	365
	7,231	2,860	10,091	10,974
Other trading activities
Charity shop income (see note 11.1)	13,743	-	13,743	9,083
Lottery income	8,719	-	8,719	7,683
Event income	595	-	595	380
Government grants receivable	-	-	-	1,552
Other	-	-	-	374
	23,057	-	23,057	19,072

Included within government grants receivable is £Nil (2021:£0.98m) claimed under the Small Business Grant Fund and E£Nil (2021:£0.572m) claimed under the Coronavirus Job Retention Scheme.

Income from donations and legacies in 2021 was £11m of which £8m was attributable to unrestricted funds and £3m to restricted funds. Income from other trading activities in 2021 was £19.072m all of which was attributable to unrestricted funds.

Material grants received by category

Material grants received by category
	2022	2021
Sources of material grants:	£7000	£’000
General Charities ofthe City ofCoventry	90	90
The Margaret Giffen Charitable Trust	20	20
Rooney Family Foundation	25	-
The Bernard Sunley Trust	-	20
The Saintbury Trust	20	-
O’Brien Charitable Trust	10	10
The Leaf Charitable Trust	15	-
Lions Club International Foundation	-	11
Dignity	-	10
The EBM Charitable Trust	10	10
Mahoro Charitable Trust	-	10
Groundworks (Tesco Bags of Help)	10	-
County AirAmbulance	10	-
Anonymous	10	-
Other < £10,000	223	184
Total	443	365

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Investment income	2022	2021
	£000	£000
Bank interest	15	3
Investment income	420	315
Other	-	1

5. Resources expended by activity

		Costs of Fundraising	Costs of Fundraising	Costs of Fundraising
	Basis of	Generating Trading		Charitable Governance
	Allocation	Voluntary	costs	activities	costs
						2022	2021
		£000	+ £7'000	£000	£000	£°000	£°000
Costs directly allocated to activities
Fundraising Costs Operations Marketing and PR	Direct Direct Direct	1,895 - 2,337	- - -	- 7,063 -	- - -	1,895 7,063 2,337	1,383 8,124 2,098
Trading costs	Direct	-	13,735	-	-	13,735	11,185
Depreciation	Direct	-	342	240	-	582	525
Support costs allocated to activities
Support Services	Hours	920	-	706	105	1,731	1,646
		5,152	14,077	8,009	105	27,343	24961

Operational and fundraising staff are allocated directly, management and administration are allocated on a time apportioned basis.

The expenditure in 2021 was £24.961m of which £21.945m was attributable to unrestricted funds and £3.016m to restricted funds.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

6. Staff costs

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2022|2021| |£°000|£000| |Wages|and|salaries|8,656|7,293| |Social|security|costs|747|595| |Pension|costs|260|209| |Redundancy|and|termination|payments| 7|| |8,103| |9,670|6| |The|average|number of employees|during|the|year was|as|follows:| |2022|2021| |No.|No.| |Aviation|Operations|31|31| |Fundraising|29|29| |Trading|320|275| |Administration|41|43|

----- End of picture text -----

Pensions contributions

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Annual contributions amounting to £259,984 (2021: £209,127) were charged to the Statement of Financial Activities during the year. At the balance sheet date, there were £48,588 outstanding contributions (2021: £39,539).

Key Management Personnel remuneration

There were five (2021: five) members of the senior management team and their aggregate remuneration in respect of qualifying services for the Group was:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2022|2021| |£000|£000| |Remuneration|receivable|485|437| |Termination|payments|34|-| |Social|security|costs|66|52| |Pension|contributions|29|_13| |614|502| |number of senior management personnel of senior management personnel senior management personnel management personnel personnel|whose|remuneration|(excluding|pension|contributions)| |year|fell|within|the|following|bands|were:| |2022|2021| |No.|No.| |£160,000|to|£169,999|1|-| |£140,000|to|£149,999|-|1| |£100,000|to|£109,999|1|1| |£90,000|to|£99,999|-|2| |£80,000|to|£89,999|2|-| |£70,000|to|£79,999|2|-| |£60,000|to £69,999|_3|—|

----- End of picture text -----

The number of senior management personnel of senior management personnel senior management personnel management personnel personnel whose remuneration (excluding pension contributions) for the year fell within the following bands were:

No other employees (outside of key management personnel) earned more than £60,000 in 2021.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

7. Trustees and connected persons’ transactions

Trustees’ expenses reimbursed

During the year expenses of £2,661 (2021: £Nil) were reimbursed to Trustees and related to travel costs.

Trustees’ remuneration

No trustees received remuneration during the year (2021: Nil).

The Charity pays an insurance premium in respect of Trustees’ and Individuals’ liability cover at a cost of £1,785 (2021: £878).

8.

Net incoming resources	2022	2021
	£000	£000
This is stated after charging:
Auditors’ remuneration - audit services	31	17
Depreciation — owned assets	582	525
Loss on disposal of tangible fixed assets	-	-
OperatingLeaseCosts	5,389	6,439

9. Taxation

The charitable company, as a registered charity, is exempt from tax on income and gains falling within section 478 of the Taxes Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen within the charitable company.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

10. Tangible fixed assets

GROUP

GROUP
	Leasehold	Fixtures		Motor
	Property £000	&fittings £000	Equipment £°000	Vehicles £°000	Total £°000
Cost
At 1 January2022 Additions Disposals	134 - -	1,571 316 -	2,647 653 -	139 85 -	4,491 1,054 -
At31 December2022	134	1,887	3,300	224	5,545
Depreciation
At 1 January 2022 Charge forthe year	92 9	1,007 208	1,807 345	105 20	3,011 582
Disposals	-	-	-	-	-
At 31 December2022	101	1,215	2,152	125	3,593
Net book value
At31 December2022	33	672	1,148	99	1,952
At 31 December2021	42	564	840	34	1,480
CHARITY
	Leasehold	Fixtures		Motor
	Property	& fittings	Equipment	Vehicles	Total
	£7000	£’000	£000	£000	£°000
Cost
At 1 January 2022 Additions Disposals	134 - -	290 58 -	1,946 470 -	135 85 -	2,505 613 -
At 31 December2022	134	348	2,416	220	3,118
Depreciation
At 1 January2022 Charge forthe year	92 9	288 2	1,401 209	104 20	1,885 240
Disposals	-	-	-	-	-
At 31 December2022	101	290	1,610	124	2,125
Net book value
At 31 December2022	33	58	806	96	993
At31December2021	42	2	545	31	620

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

11. investments

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Group|Managed| |Funds|Total| |£°000|£°000| |Cost|or Valuation| |At|1|January|2022|13,603|13,603| |Net|losses|on|investment|(1,438)|(1,438)| |At|31|December 2022|12,165|12,165| |Charity|Investments|in|Managed| |Subsidiaries|Funds|Total| |£000|£000|£000| |Cost|or|Valuation| |At|1|January|2022|1|13,603|13,604| |Net|losses|on|investments|-|(1,438)|(1,438)| |At 31|December|2022|1|12,165|12,166|

----- End of picture text -----

Our portfolio of funds is managed equally by Cazenove Capital and CCLA. Their mandate is to maximise the overall growth of these funds through investment in various different asset classes while ensuring that the risks taken are carefully monitored, managed and controlled, whilst bearing in mind liquidity needs.

The following are subsidiary undertakings at 31 December 2022:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Name|Holding|Principal|activity|Proportion|held|by| |the|charity| |The|Air Ambulance|Service| |Trading|Limited|Ordinary|shares|Retail|charity|outlet|100%| |The|Air Ambulance|Service| |Events|Limited|Ordinary|shares|Dormant|100%| |The|Air Ambulance|Service| |Recycling|Limited|Ordinary|shares|Dormant|100%| |The|Air Ambulance|Service| |Aviation|Limited|Ordinary|shares|Dormant|100%| |TAA|Service|Company|limited| |by|guarantee|Dormant|n/a| |The|Children’s|Company|limited| |Air Ambulance|by|guarantee|Dormant|n/a|

----- End of picture text -----

All of the above companies are incorporated in England & Wales.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

11.1

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Net income from trading activities of subsidiary

The Air Ambulance Service Trading Limited, the wholly owned subsidiary of the charity is a retail charity outlet. A summary of its trading results for the year to 31 December 2022 are shown below. Audited accounts will be filed with the Registrar of Companies.

					2022	2021
					£000	£000
	Turnover				13,712	9,083
	Cost ofsales				(1,301)	(924)
	Administration expenses Otheroperating income				(10,008) 31	(8,023) 1,652
	Operating profit				2,434	1,788
	Profit aftertax				2,434	1,788
	Retained earnings atthe beginning ofthe year				1,483	299
	Profit forthe year				2,434	1,788
	Giftaid payment				(1,560)	(604)
	Retained earnings atthe end oftheyear				2,357	1,483
	The assets and liabilities at 31 Decemberwere:	were:
	Fixed assets				958	861
	Current assets				3,390	2,469
	Current liabilities				(1,991)	(1,847)
	Total netassets				2,357	1,483
	Aggregateshare capital and reserves				2,357	1,483
12.	Debtors		Group		Company
		2022		2021	2022	2021
		£°000		£7000	£°000	£°000
	Amounts falling duewithin oneyear
	Amounts duefrom group undertaking	-		-	683	581
	Trade debtors	136		106	29	32
	Other debtors	24		1	22	1
	Prepayments	985		983	595	610
	Accrued income	2,724		2,513	2,724	2,513
	VAT	334		349	183	175
		4,203		3,952	4,236	3,912

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

13. Creditors

				Company
	2022	2021	2022	2021
	£000	£000	£7000	£000
Amounts falling duewithin oneyear
Trade creditors	1,439	700	1,047	304
Taxation and social security	208	168	134	94
Other creditors	57	43	32	24
Accruals and deferred income	1,127	1,440	310	665
	2,831	2,351	1,523	1,087

Included within accruals and deferred income is an amount of ENil (2021 £0.5m) received from Libor banking fines.

14, Restricted funds

	Balance at 1 Jan 2022	; Incoming Resources	: Outgoing Resources	Transfers	Balance at 31 Dec 2022
	£7000	£’000	£7000	£7000	£000
The Children’s AirAmbulance — Incubator	58	-	-	-	58
CAA Helicopter lease appeal	-	229	223	-	6
DLRAA Helicopter lease appeal	-	782	763	-	19
WNAA Helicopter lease appeal	-	1,849	1,818	-	31
Lloyds Charities Trust	49	-	-	-	49
Various Other Trusts and Foundations	58	-	-	-	58
LIBOR Funding	499 664	- 2,860	33 2,837	- —-	466 687
	Baance 2021	Incoming Resources	Outgoing Resources	Transfers	Balance at 31 Dec2021
	£000	£°000	£°000	£000	£°000
The Children’s AirAmbulance— Incubator	58	-	-	-	58
CAA Helicopter lease appeal	-	349	349	-	-
DLRAA Helicopter lease appeal	-	902	902	-	-
WWNAA Helicopter lease appeal	-	1,349	1,349	-	-
Lloyds Charities Trust	49	-	-	-	49
Various Other Trusts and Foundations	54	420	416	-	58
LIBOR Funding	499 660	- 3,020	: 3,016	- —	499 664

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

14. Restricted funds - continued

Purposes of restricted funds

The Children’s Air Ambulance — Incubator was an appeal launched to purchase an incubator for TCAA before it was part of TAAS.

The CAA helicopter lease appeal represents funds received specifically towards CAA lease costs.

The DLRAA helicopter lease appeal represents funds received specifically towards DLRAA lease costs.

The WNAA helicopter lease appeal represents funds received specifically towards WNAA lease costs.

The Lloyds Charities Trust donated a grant to purchase a new detachable stretcher for one of our Clinical partners (Evelina Children’s Hospital or Great Ormond Street Hospital).

Various other trusts and foundations have provided donations for specific restricted projects.

The LIBOR funding was awarded to meet the capital costs associated with the two new Children’s helicopters.

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Unrestricted funds (group)	Unrestricted funds (group)	Unrestricted funds (group)
	‘One £000	Incoming £°000	Outgoing £000	Losses on Invest- ments £°000	Transfers £7000	sarees £000
General funds	26,927	30,723	24,506	-	-	33,144
Investment
revaluation	1,603	-	-	(1,438)	-	165
reserve
	soe £°000	Incoming £7000	Outgoing £000	Gainson I vest- ments £000	Transfers £000	a1 pee £000
General
funds	21,527	27,345	21,945	-	-	26,927
Investment
revaluation	460	-	-	1,143	-	1,603
reserve	ee		Ce	CC	a‘$}NyRNNNNNs«_@“i=naa
Unrestricted	funds
(charity)
	Poe £°000	Incoming £000	Outgoing £000	Losses on Invest- ments £°000	Transfers £000	31 pee £000
General funds	25,445	18,541	13,198	-	-	30,788
investment
revaluation	1,603	-	-	(1,438)	-	165
reserve	eee		CC	tCC*“a‘#§$YT[N’YSNNRRNds		@*Niwai
	ew ; £°000	incoming £000	Outgoing £°000	Gainson I vest- ments ; £°000	Transfers £000	ot pec ; £’000
General funds	21,229	17,215	12,999	-	-	25,445
Investment revaluation	460	-	-	1,143	-	1,603
reserve

‘

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

16. Analysis of net assets between funds

	Unrestricted	Restricted	2022	Unrestricted	Restricted	2021
			Total			Total
	£7000	£’000	£000	£000	£°000	£000
Fixed assets	13,819	298	14,117	14,709	374	15,083
Netcurrent assets	19,490	389	19,879	13,821	290	14,111
	33,309	687	33,996	28,530	664	29,194

17. Operating lease commitments

At 31 December 2022 the charitable group had future minimum lease payments under non-cancellable operating leases as set out below.

Group

Group
		2022		2021
	Land and		Land and
	Buildings	Other items	buildings		Other items
	£7000	£7000	£000		£°000
Operating leases which expire:
Within 1 year	1,159	6,554	1,421		5,582
Between 1 to 5 years	4,572	24,493	3,500		31,342
More than 5 years	1,547	7,636	1,242		5,040
	7,278	38,683	6,163		41,964

Charity

Charity
		2022		2021
	Land and		Land and
	Buildings	Other items	buildings		Other items
	£°000	£000	£°000		£7000
Operating leases which expire
Within 1 year	93	6,475	93		5,542
Between 1 to 5 years	347	24,400	347		31,285
More than 5 years	-	7,636	-		5,040
	440	38,511	440		41,867

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

18. Financial Commitments

As a result of group registration arrangements for value added tax (VAT), the charitable company is jointly and severally liable together with other members of the group for any VAT due by the representative member of the group.

19. Membership

The Air Ambulance Service is incorporated under the Companies Act 2006 as a company limited by guarantee having no share capital. The liability of members to contribute towards the debts of the charity in the event of a deficit on winding up is limited to £1.

20. Controlling parties

In the opinion of the trustees, given the structure of the charity, there is no ultimate controlling party.

21. Related party transactions

Transactions with Trustees are disclosed in in note 7.

There were no other related party transactions in the year (2021: none)

THE AIR AMBULANCE SERVICE

CONTENTS

CHAIRMAN’S STATEMENT

CHIEF EXECUTIVE’S REPORT

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

LEGAL AND ADMINISTRATION INFORMATION

STRUCTURE, GOVERNANCE AND MANAGEMENT

Principal Activities

Statement of public benefit

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Our fundraising standards

Company Status

Board of Trustees

Trustee and Director induction and training

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Organisational Structure

Pay policy for Senior Staff

Risk Management

OBJECTIVES AND ACTIVITIES

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Helicopter Emergency Medical Services (HEMS) and Clinical Operational Report

, THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Children’s Air Ambulance Operational Report

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

: THE AIR AMBULANCE SERVICE (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Financial Position

Reserves policy

Going concern

Streamlined Energy and Carbon Reporting (SECR)

THE AIR AMBULANCE SERVICE (A company limited by guarantee) TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial Instruments

Section 172 (1) statement Companies Act 2006

Business relationships

Our relationship with the community

Maintaining a reputation for high standards

Our people

Employee involvement and employment of the disabled

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Funds held as Custodian Trustees

PLANS FOR THE FUTURE

TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Provision of information to auditor

THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

, THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of Trustees

THE AIR AMBULANCE SERVICE (A company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Auditorss responsibilities for the audit of the financial statements

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

THE AIR AMBULANCE SERVICE (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AIR AMBULANCE SERVICE (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Use of our report

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure Account)

For the year ended 31 December 2022

CONSOLIDATED BALANCE SHEET Company number: 04845905

As at 31 December 2022

CHARITABLE COMPANY BALANCE SHEET Company number: 04845905

As at 31 December 2022

CONSOLIDATED STATEMENT OF CASH FLOW YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Basis of preparation

Incoming resources

Legacies