OpenCharities

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

2022-09-30-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

hiowaa.org Company Number: 5244460 | Charity Number: 1106234

CONTENTS

----- Start of picture text -----
2 HIOWAA [●] Hampshire and Isle of Wight Air Ambulance
----- End of picture text -----

----- Start of picture text -----
Photography by Tim Wallace
----- End of picture text -----

3

Annual Report and Financial Statements

TRUSTEES REPORT

Trustees and Directors

DAVID DREW Chair

GWEN MOULSTER OBE Vice Chair

PETER C TAYLOR JP, FCA, FRSA Treasurer

ELIZABETH BROWN (Resigned November 2022)

ANDREW CHEESEWRIGHT FCA

DR ANDY EYNON BSC (Hons) MBBS (Hons)

GRAHAM HILL FRCS (Tr & Orth)

BENJAMIN ROGERS

REBECCA BRACKWELL-SLADE

DANIEL TOWNSEND (Resigned May 2022)

DAVID WAKEHAM

CATHARINE WILSON STEVE VEAR MBE JP

Company Secretary

Sherie Williams Ellen

Chief Executive

Richard Corbett

Auditors

CLA Evelyn Partners Limited, 15-17 Cumberland Place, Southampton, Hampshire, SO15 2BG

Bankers

Handelsbanken, Oceana House, 39-49 Commercial Road, Southampton, SO15 1GA

Lloyds Bank Plc, 49 High Street, Winchester, SO23 9BU

CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

NatWest, 25 West Street, Poole, Dorset, BH15 1LD

CCLA Investment Management Ltd, 80 Cheapside, London, EC2V 6DZ

Investment Managers

Rathbone Brothers Plc, 32 Southgate Street, Winchester, SO23 9EH

Brewin Dolphin, 12 Smithfield Street, London, EC1A 9BD

Registered Office

F4 Adanac Park, Adanac Drive, Nursling, Southampton, SO16 0BT

Registered Numbers 5244460 Companies House 1106234 Charity Commission

Chairman’s Introduction

It’s a pleasure to be able to introduce the latest Report and Financial Statements for the year ending 30 September 2022.

On the 1 July the charity celebrated 15 years of supporting the population of Hampshire and the Isle of Wight. In reaching this milestone we can reflect on the many lives the organisation has made a lasting impact on and be rightly proud of this achievement.

After acting as Chair since the summer of 2021, I was delighted to take on the role in a substantive capacity in January 2022. During my first year as Chair I have continued to witness the way in which the organisation is constantly developing. In the last few months not only extending our reach by introducing a second paramedic led response vehicle but also starting a whole new element to our service through the new After Care Team.

I look forward during my period as Chair to continue to watch and support the organisation, as it grows its ability to save more lives and to develop ever closer relationships with the local community who we depend on to be able to deliver our service.

In closing I would like to thank all those from our front-line staff, our volunteers, partners through to our thousands of supporters, who come together to make the service what it is today. We could not be there without all of you.

Overview

The Trustees of Hampshire and Isle of Wight Air Ambulance (HIOWAA), who are also Directors of the charitable company for the purpose of Company Law, are pleased to present their Annual Report and the Financial Statements for the year ended 30 September 2022. The reference and administrative information set out on page 4 forms part of this report.

Structure, Governance and Management

Hampshire and Isle of Wight Air Ambulance is a registered charity (number 1106234) which was incorporated on 28 September 2004. The charity’s Objects, as contained within its Articles of Association (amended in 2022) are: The relief of sickness and injury and the protection of human life for the benefit of the population of and visitors to the counties of Hampshire and the Isle of Wight and surrounding areas, by the provision and support of:

HIOWAA’s Mission is: To ensure that, through your support, we always bring exceptional Critical Care to people in Hampshire and the Isle of Wight.

HIOWAA is governed by a board currently of 11 Trustees, including three honorary officers (chair, vicechair and treasurer). The Board of Trustees must consist of at least three individuals and will not normally exceed 12.

The following committees report to the board:

Underpinned by the Charity’s Values of:

Openness

Dedication

----- Start of picture text -----
Professionalism
----- End of picture text -----

Teamwork

and HR management. To monitor changes in governance practice & policy and employment law.

Trustees are recruited through an open and efficient process by the Board against required skill sets to ensure the right mix of proficiency and experience. All new Trustees receive an induction pack and appropriate induction meetings and training. Wider on-going training and development opportunities are also offered.

5

4

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

Trustees serve an initial term of three years, after which they may offer themselves for re-election; a trustee will not normally serve for longer than three terms. Formal Board meetings occur quarterly in order to achieve routine governance business and additionally, as required, for special purpose briefings.

volunteers), our premises and all equipment to support our medical and engagement activities.

Engagement: Responsible for securing income via public engagement, marketing, communications and fundraising.

Finance & Commercial: Responsible for day-to-day financial management and the contractual oversight of our key contracts.

Strategic direction of the charity is determined by the Trustees, who also take responsibility for assurance that relevant laws and codes are adhered to and to monitor performance against agreed objectives. Day-to-day business of the charity is delegated to the Chief Executive and his senior management team (SMT) who are authorised to deliver agreed plans on behalf of the Board.

Our key partners: These partners are contracted by the charity.

University Hospital Southampton (UHS), host the Helicopter Emergency Medical Services (HEMS) Care Group. UHS hold the contracts of employment (permanent/bank/ honorary) for all clinical and dispatch staff. They also maintain essential clinical governance assurance, including the registration with the Care Quality Commission.

Following a period of development HIOWAA became operational as an Air Ambulance in July 2007. Now in our 16[th] year of service, we operate through a partnership between the charity and four key partners. Together we deliver our mission for the people of Hampshire and the Isle of Wight:

Babcock Mission Critical Services (Onshore) (BMCS), who provide every aspect of our aviation capability.

Lottery Fundraising Services (LFS), who run our society lottery and deliver a canvassing service for our regular giving campaign.

HIOWAA charity Team: The charity team is led by our Chief Executive who is responsible to the Board for the delivery of our mission.

HIOWAA is contracted by the ambulance service to deliver critical care services on their behalf. This relationship gives us access to the 999 service on which we rely to access patients. Our partner being:

At the start of the financial year the charity operated through four directorates: Charity Operations, Fundraising, Marketing & Communications and Finance. Following a restructure and staff changes we now operate in three teams each led by a director –

South Central Ambulance Service (SCAS) who provide access to the Emergency Operations Centres, from where HIOWAA assets are dispatched.

Charity Operations: Responsible for supporting our people (staff and

We also cooperate closely with our neighbouring Air Ambulance services and the Isle of Wight Ambulance Service.

Public Benefit, Openness and Accountability

The Trustees have paid full regard to Charity Commission guidance on Public Benefit. The Trustees remain confident that, through the provision of pre-hospital emergency medicine, which is freely available to the public in Hampshire and the Isle of Wight- we are in accordance with the regulations on public benefit.

The charity is subject to regulation by the Charity Commission, Companies House, Care Quality Commission, Civil Aviation Authority, Gambling Commission, Information Commissioner and the Fundraising Regulator. No serious incidents required reporting this year.

The board considers the diversity of Trustees to be a key priority but recognises the challenges meeting the combination of diversity imperatives. Following recruitments in summer 2021 the profile of the board has improved significantly however the board still recognises important gaps and this will continue to be a priority in future recruitment.

The Trustees review their performance against the Charity Governance Code and continue to implement recommendations of the external review held in July 2019. An internal review will be undertaken in 2023 leading to a planned timeline for the next external evaluation.

Environmental, Social and Governance (ESG): We are focussing on our social responsibility by ensuring that factors key to our supporters are central to our decision making. All board reports now contain a section focussed on the ESG implications of proposals. We will continue to develop our approach in this area recognising the challenges of meeting for instance net zero ambitions, given the nature of our operation.

Activities and Achievements Summary of Key Achievements

Lives saved: Visiting the Isle of Wight for the first time in May 2022, Janine, 71, and her husband Trevor, 72, from Lincoln had hardly unpacked their bags before Janine was being loaded onto our helicopter after she slipped and fell off a sea wall, hitting her head and back on the concrete steps nine feet below. Following multiple emergency surgeries, treatment and rehabilitation, Janine miraculously survived a fractured skull, a bleed on the brain and a fractured spine. The injury to her spinal cord means Janine will be in a wheelchair for the rest of her life.

She said: “I don’t want to sound dramatic, but Trevor thought I was dead. It wasn’t until I let out a groan that he learned I was alive. He is sure I wouldn’t have made it without the Air Ambulance.”

This is the story of one deployment this year. Of the 1,693 deployments undertaken between October 2021 and September 2022, we have many similar stories of lives saved by our service – from our dispatch assistants to the crew out on the road and up in the air each playing their part.

Service Development

We continuously look to develop our service both through the training of our staff and enhancements to our delivery. This year we:

Sustainable Income

Despite a challenging year emerging from Covid restrictions and gaps in staffing as we restructured our fundraising approach, we received record income of £9,165k. This figure was boosted by significant legacy gifts and the continued support of our 16,655 regular supporters.

Fundraising Approach

Hampshire and Isle of Wight Air Ambulance receives no Government or National Lottery funding for routine operations, and it is only thanks to the generosity of the communities that we serve that we are able to keep the Air Ambulance flying and saving lives. Our income profile is broad and is designed to deeply engage with individuals

and groups. We employ a salaried, professional fundraising team, who do not earn a bonus, to manage our income streams and ensure that we meet statutory obligations to the Charity Commission and Fundraising Regulator.

Hampshire and Isle of Wight Air Ambulance work with Lottery Fundraising Service (LFS) as our third-party operator, to provide end to end management of our Flight for Life society lottery and to deliver a canvassing facility for our Small Change Big Difference committed giving campaign. There is a Commercial Participation Agreement in place, detailing the obligations of each organisation and regular reviews are in place to thoroughly appraise the service provided.

The LFS canvassers complete a charity induction that focuses on gambling and fundraising regulation, including standards of behaviour that are expected when they interact with the public. All canvassers are ‘Dementia Friends’ accredited by the Alzheimer’s Society to protect vulnerable persons. Additionally, the charity conducts regular canvasser mystery shopping exercises and compliance calls to ensure quality and consistency of service.

The charity is a member of the Chartered Institute of Fundraising, the Fundraising Regulator, and holds a society lottery license with the Gambling Commission alongside LFS. The charity maintains strong governance practices and remains compliant with the associated organisational codes of practice.

Any complaints that our fundraising activities may generate are recorded and investigated by the charity Operations team, reviewed by the relevant line manager, or referred to our third-party operator where appropriate. The Charity take any opportunities to improve supporter care very seriously. Our fundraising activities generate very few complaints each year with fewer than 10 received in 2021/2022; none required escalation beyond the charity.

6

7

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

1 October 2021 - 30 September 2022

YEAR IN NUMBERS

----- Start of picture text -----
16,655
1,693
Regular Donors
as of 30 Sept 22 Total Missions
595
Event Participants
771
234,501 922
Website
page views
Total Deployments
Total Deployments in Emergency
in Helicopter Response Vehicles
80,181
● Donations and
Legacies (49%)
HIOWAA
46% ● Investment Income &
Total website users Income 49%
Bank Interest (5%)
2022
● Lottery & Other
Income (46%)
116 5%
Volunteers
9% ● Operations of Air
1% Ambulance (66%)
13% ● Fundraising Costs &
Cost of Sales (11%)
HIOWAA
Expenditure 66% ● Lottery Costs (13%)
11% 2022 ● Investment Management
Fees (1%)
56,482 ● Support Costs &
Lottery Players Governance (9%)
as of 30 Sept 22
(player numbers – can include multiple tickets) Figures based on statutory accounts at 30.09.2022
LOTTERY
PLAYER
TICKET
LOTTERY
PLAYER
TICKET
----- End of picture text -----

Activity and Plans

Operations

Activity:

The core service delivered 1,693 missions this year making a positive impact to the lives of many patients and their families. This impact not only included lifesaving critical care interventions but also managing the scene at incidents, training with our colleagues in the ambulance service and providing outreach to ensure ambulance crews are aware of what we deliver and how they can seek our support.

The service was also enhanced by adding a second paramedic led team which deploys by car and appointing an After Care Team to support patients after our clinical handover. This team will not only be able to provide patients support in managing their paths to recovery but will also establish a feedback loop to allow us to better assess the impact of our service, while also helping us build an ongoing relationship with patients and their families.

In September we signed a new threeyear contract with Babcock to deliver 19 flying hours daily. This replaced the previous sharing agreement with Thames Valley Air Ambulance where we flew 17/12 hours on a two-week rotational basis. The new contract takes an open book approach to costs and sets incentivised performance metrics.

Plans for next year: We will allow the developments around flying hours, the paramedic car and the After Care Team to bed in during the year ahead, while continuously reviewing our set up as we immediately start the process to enable us to decide what aviation package we will be seeking from September 2025. Early decisions are required to allow for a potential aviation contract tender process and to update our contracts with both UHS and SCAS which will be renewed in the year.

We are also starting a Research programme after the appointment of a lead doctor; this will complement our involvement in the Whole Blood trial which we will be starting in partnership with other Air Ambulance services across the country.

Engagement

Activity:

The Engagement team went through a major restructuring this year. This amalgamated the Fundraising team and the Comms & Marketing team into one unit managed by a single Director. With significant staff turnover and recruitment, it was a challenging year for the team. Despite this distraction it was a year of record income as our events and community programmes were reinvigorated after the Covid years. We also maintained the support of our many loyal and regular donors, through managing our relationships and effective communication of the impact of our work.

Plans for next year:

The fully staffed and motivated team now have a golden opportunity to change the way in which the charity approaches income generation, supporter engagement and communication. This will focus on managing the long-term relationship with our supporters. We will also be looking at new and innovative ways to engage new donors, both through digital approaches and in our face-toface interactions.

People & Business

Activity:

A process to update the organisational strategy started through forming a number of staff groups to review our approach under different themes. These working groups developed outline plans that will be developed into a full strategy review.

The restructure mentioned focussed on the Engagement team but also impacted on teams across the organisation. Also leading to the implementation of structured pay scales and a revised performance

management system with greater focus on objectives, key performance indicators and grading based on performance.

We retendered our IT support contract and onboarded a new supplier ‘Silver Lining’. Our base at Adanac Park was also adapted by building a medical store and crew storage lockers to allow shifts to start and finish from this location.

Plans for next year:

We will be undertaking a full review of organisational policies and tightening our systems for ongoing review by delegated committees. We will also start to explore our digital strategy by focussing initially on systems for internal communications and file storage.

Our Ambition for the Future

Support more patients

We will continue to develop our way of operating and build on the training of our staff to provide the best possible service. This approach will look at both how we deliver our medical support through research and training and at strategic projects to improve our speed and flexibility of response, with the aim of utilising the most appropriate transport and approaches to get our highly trained crews with the right equipment, as quickly as is feasible to the patients to whom we can deliver maximum impact.

This means looking at our current operational bases, the mix and utilisation of cars and helicopter delivery, analysis of our operational and flying hours to deliver maximum benefit to patients. While also supporting research projects both locally and engaging in national trials like the Whole Blood trial.

Sustainable Income

Our approach to Engagement is aimed to build a lasting relationship with our regular donors. We will continue to build our pool of donors

8 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

9

Annual Report and Financial Statements

both through canvassing but also through our events and community programme, as well as looking at digital recruitment. Once on board we will continuously communicate the impact of our service and the contribution of our regular donors in ensuring its sustainability.

We will also offer opportunities of those donors who might wish to increase their support of the charity, through volunteering, one off donations, increasing regular payments or recognising us further with a gift in their Will. We want to ensure we have a lifetime relationship with our supporters, where we continuously prove the impact of their support.

Environmental, Social, Governance (ESG)

A key part of the Engagement approach is recognising what is important to our supporters and ensuring we communicate what we are doing to manage the issues which are important to them. Going forward we will be looking to mitigate our environmental impact, while recognising the nature of our service. We will also maintain a focus on our equality, diversity and inclusion approach, especially to recruitment, while at all times maintaining strong governance of the organisation. We will also seek to develop our reporting to prove our focus and progress in delivering against ESG plans.

People, Business and Digital

Underpinning the operations are the business processes, systems and our people. These need to be continuously developed so we are supporting our people to deliver their best by providing the latest tools, approaches and training. We are conscious of the need to develop in all areas but especially around digital. We will be developing our digital systems to gain greater integration and supporting our people to gain maximum benefit from them.

Financial Review

Overview

We continue to gain significant regular monthly income thanks to the generosity of our regular donors and lottery players. This support, then bolstered by significant legacies and our programme of community outreach, allowed us to exceed our budgeted income enabling full delivery of our operational programme.

Income

Overall, we raised £9,165k in 202122, an increase of 11% on last year (2020-21: £8,269k). This significantly exceeded budgetary expectations mainly due to legacy income. All areas though contributed as our events and activities programmes restarted after the Covid suspension.

Expenditure

From the total expenditure of £9,840k, we spent 58% on the operation of our critical care services, 32% on lottery and fundraising costs, and the remaining 11% on support costs and investment management fees. Our operational expenditure was managed within budget but expenditure overall increased due to the loss in market value of our funds under investment.

Investment

Policy

Rathbones and Brewin Dolphin continue as HIOWAA’s appointed Investment Managers. The investment objective for both investment managers continues to be to preserve the value of the funds under management in real terms, balancing risk against return.

Ethical investing: Both our investment managers embrace ESG in the day-today management of our funds. As a charity we are actively reviewing our ethical investment approach.

The Trustees continue to review the performance of the charity’s investments regularly, both on an ad-hoc basis and with an annual

formal performance review between the fund managers and the Finance and Investment Sub-Committee.

Changes in the economic climate will make it more challenging to meet our income objectives next year. We will be maintaining our approach during the current period of market uncertainty but will review during the year to potentially adapt policy in line with medium term market conditions.

Reserves Policy

The unrestricted reserves as at 30 September 2022 amounted to £17,299k, roughly 2 years of overall expenditure. The charity’s current five year forward forecast confirms that on the basis of predicted income and expenditure, our reserves are adequate and will provide for sustainability of operations.

The charity is currently looking at a number of significant projects that could involve the deployment of reserves. Once decisions are finalised around these projects a review will be undertaken of the reserves policy. This is likely to lead to the designation of funds prior to the implementation of agreed projects.

Remuneration Policy

The pay of all staff is reviewed annually. The salary of SMT members is externally benchmarked and individual recommendations made by the CEO and agreed by the Governance and People SubCommittee. The salary of the CEO is reviewed separately by the Chairman in liaison with this committee. In accordance with the Charities SORP, further detail on senior staff pay is contained in the notes to the financial statements (note 9).

Risk

On behalf of Trustees, the Chief Executive maintains a comprehensive Risk Register, this has been broken down into five key areas (Governance and Compliance; Operations; Income

the people and communities of Hampshire and the Isle of Wight.

Generation; Finance; People) and designed to assess risks that may impact on the charity achieving its agreed objectives. Whilst some areas of operational and clinical risk are transferred to our key partners, Trustees review quarterly the key risks that could impact on both the delivery and resilience of our lifesaving service as well as the strong reputation of the charity.

We especially wish to acknowledge the contribution of:

The approach to managing risk is currently being reviewed and will now be refocused to look at strategic risks under five themes:

Accordingly, Trustees wish to record their sincere gratitude for this wide-ranging and vital generosity.

  1. Impact (What we deliver)

  2. Culture, People and Partnerships (How we deliver)

Trustees’ Responsibilities for Financial Statements

  1. Reputation

  2. Financial Sustainability

  3. Compliance

Oversight of operational and project risks are delegated to the CEO with key current risks and opportunities reported monthly to the Board.

The Trustees are responsible for preparing the Annual Report and the Financial Statements in accordance with the Companies Act 2006 and for being satisfied that the Financial Statements give a true and fair view. The Trustees are also responsible for preparing the Financial Statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Trustees acknowledge their responsibilities to:

Further information

This report provides a snapshot of the work of the charity. For detailed information and stories of the patients whose lives we have impacted please visit our website www.hiowaa.org for more information on our life saving work.

Our gratitude

In closing the Trustees wish to reaffirm that our critical care service delivery is only made possible by the generosity and very broad support that the charity receives right across

departures disclosed and explained in the financial statements;

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

Auditors

Nexia Smith & Williamson (now CLA Evelyn Partners Limited) were appointed as the charity auditors, on 27 Sept 2016. The current Trustees confirm that they have taken all necessary steps to make themselves aware of any information needed by the charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any relevant audit information which has not been disclosed to CLA Evelyn Partners Limited.

In preparing this Trustees’ report advantage has been taken of the small companies’ exemption.

This report was approved by the Trustees on 20/02/2023 and is signed on their behalf by:

David Drew Chairman

10 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

11

Annual Report and Financial Statements

INDEPENDENT AUDITORS’ REPORT

Independent Auditor’s Report to the Members of Hampshire and Isle of Wight Air Ambulance Opinion

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.

We have audited the financial statements of Hampshire and Isle of Wight Air Ambulance (the ‘charitable company’) for the year ended 30 September 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and the 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Conclusions relating to going concern

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

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

In our opinion, the financial statements:

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 other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the

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 charitable company in accordance with the ethical requirements that

13

12

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

adequate for our audit have not been received from branches not visited by us; or

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 11, the Trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained a general understanding of the charitable company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance. We also drew on our existing understanding of the charitable company’s industry and regulation.

We understand that the charitable company complies with the framework through:

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to

the charitable company’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the charitable company:

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s

financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities . This description forms part of our auditor’s report.

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

These areas were communicated to the other members of the engagement team not present at the discussion. The procedures we carried out to gain evidence in the above areas included:

Julie Mutton

Senior Statutory Auditor, for and on behalf of

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities. In particular, both the senior statutory auditor and the audit manager have a number of years’ experience in dealing with charitable companies. A further description of our responsibilities is available on

CLA Evelyn Partners Limited

Statutory Auditor Chartered Accountants Cumberland House 15-17 Cumberland Place Southampton Hampshire SO15 2BG 21/02/2023

15

14

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

STATEMENT OF FINANCIAL ACTIVITIES

BALANCE SHEET AT 30 SEPTEMBER 2022

Statement of Financial Activities (Incorporating Income and Expenditure Account) for the year ended 30 September 2022

----- Start of picture text -----
UNRESTRICTED RESTRICTED TOTAL TOTAL
NOTE FUNDS 2022 FUNDS 2022 2022 2021
(£000’s) (£000’s) (£000’s) (£000’s)
Income and
endowments from:
Donations and legacies 2 4,498 16 4,514 3,611
-
Other trading activities 3 4,246 4,246 4,287
Investments 4 405 - 405 368
Other -
- - - 3
Government Grants
Total 9,149 16 9,165 8,269
Expenditure on:
Raising funds 5 2,889 2 2,891 2,677
Charitable activities 6 5,681 8 5,689 5,135
Total 8,570 10 8,580 7,812
Operating surplus
579 6 585 457
for the year
Net (loss)/gain on 11 (1,260) - (1,260) 976
investments
(Deficit)/Surplus for
(681) 6 (675) 1,433
the year
Transfers between
7 (7) - -
funds
Net movement
(674) (1) (675) 1,433
in funds
Funds at 1 October
17,973 32 18,005 16,572
2021
Funds at 30 September
17,299 31 17,330 18,005
2022
----- End of picture text -----

The statement of financial activities incorporating the income and expenditure account includes all gains and losses recognised in the year.

All amounts relate to continuing activities.

Balance Sheet at 30 September 2022 | Company number 5244460

----- Start of picture text -----
TOTAL 2022 TOTAL 2021
NOTE
(£000’s) (£000’s)
Fixed assets
Tangible assets 10 507 602
Investments 11 12,898 14,287
13,405 14,889
Current assets
Stocks 20 22
Debtors 12 1,100 967
Cash at bank and in hand 5,509 4,033
6,629 5,022
Liabilities
Creditors: Amounts falling due
13 (2,704) (1,906)
within one year
(2,704) (1,906)
Net current assets 3,925 3,116
Total assets less current liabilities 17,330 18,005
Net assets 17,330 18,005
Funds
Restricted income funds 19 31 32
Unrestricted funds 16 17,299 17,973
Total funds 17,330 18,005
----- End of picture text -----

Approved by the Trustees and authorised for issue on 20/02/2023 and signed on their behalf by:

David Drew Peter Taylor JP FCA FRSA Chairman Treasurer

The notes on pages 18 to 28 form part of these financial statements.

The notes on pages 18 to 28 form part of these financial statements.

16 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

17

Annual Report and Financial Statements

STATEMENT OF CASH FLOWS ENDED 30 SEPTEMBER 2022

Statement of cash flows for the year ended 30 September 2022

----- Start of picture text -----
TOTAL 2022 TOTAL 2021
(£000’s) (£000’s)
Cash flows from operating activities:
1,078 (205)
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment (54) (235)
Net Withdrawal of investments/investment income 437 99
Interest received 14
Net cash provided by/(used in) investing activities 397 (136)
Change in cash and cash equivalents in the financial year 1,475 (341)
Cash and cash equivalents at the beginning of the year 4,034 4,375
Cash and cash equivalents at the end of the year 5,509 4,034
----- End of picture text -----

Reconciliation of (deficit)/surplus to net cash flow from operating activities

----- Start of picture text -----
2022 2021
(£000’s) (£000’s)
Net (loss)/income for the year (675) 1,433
Adjustment for:
Losses/(Gains) on investments 1,260 (976)
Investment income (391) (368)
Investment costs 81 68
Depreciation charges 147 169
Loss on disposal of fixed asset 2 -
Decrease in stock 2 7
(Increase) in debtors (132) (346)
Increase/(Decrease) in creditors 798 (192)
Interest received (14) -
Net cash provided by/(used in) operating activities 1,078 (205)
----- End of picture text -----

Analysis of changes in net debt would replicate the information provided above and is therefore not disclosed.

18

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

i) Funds

1 Accounting Policies /

Hampshire and Isle of Wight Air Ambulance is a company limited by guarantee and incorporated in England and Wales. The Address of the registered office is: F4 Adanac Park, Adanac Drive, Nursling, Southampton, SO16 0BT.

The financial statements have been prepared in accordance with the Charity Commission Statement of Recommended Practice (SORP) on Accounting and Reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

The Trustees confirm that the charity is a public benefit entity, as defined in FRS102.

a) Accounting Convention

The financial statements are prepared under the historical cost convention with the exception of investments, which are included at revalued amounts.

b) Going Concern

The charity’s primary sources of income are donations, legacies, lottery and investment income. After careful consideration of the charity’s current financial position, the Trustees are confident that the charity has adequate resources to continue in operation for the foreseeable future which is at least 12 months from the date of approval of these financial statements. Accordingly they continue to adopt the going concern basis in preparing the accounts.

c) Presentation currency

The functional currency of the charity is in pounds sterling and the financial statements are also presented in pounds sterling.

d) Income

Income is recognised once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

Income represents the value of all grants, donations and other income receivable in respect of the year. Legacy income is included on receipt or when it becomes probable that the legacy will be received and the value of the incoming resources can be measured with sufficient reliability.

Income from the lottery is recognised in the period in which the individual prize draws are held. Income received in advance of those draws is deferred until the period in which they take place.

Donated services are included at their estimated value to the charity when received, and under the appropriate expenditure heading depending on the nature of service or facility provided, at the same value and time.

e) Expenditure

Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the respective category. Irrecoverable VAT is charged against the category of expenditure for which it was incurred.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

Support costs are allocated to the category of expenditure to which they apply, including direct staff cost, such as operational and fundraising staff. Where costs are not directly attributable, such as administrative staff costs, these are apportioned on the basis of time spent by those staff on different activities.

f) Tangible fixed assets and depreciation

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. The rates generally applied are on a straight line basis, as follows:

----- Start of picture text -----
Leasehold Improvements Over life of lease
Fixtures and Fittings Over 4-10 years
Equipment Over 4-5 years
Motor Vehicles Over 4 years
----- End of picture text -----

Only tangible fixed assets costing more than £1,000 are capitalised.

g) Leased assets

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

h) Investments

Investments are included in the balance sheet at market value.

current market conditions and other factors. Management makes estimates and assumptions concerning the future in preparing the financial statements and the actual results will not always reflect the accounting estimates made.

Unrestricted general funds can be used in accordance with the charitable objects of the organisation at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are given for particular restricted purposes.

The estimates and judgements that are considered to be key to Hampshire and Isle of Wight Air Ambulance are outlined below:

Recognition of legacy income: where notifications of legacies are received prior to the balance sheet date but the income has not been received, an accrual for legacy income will be made if it is probable that the legacy will be received and the value of incoming resources can be measured with sufficient reliability.

j) Provisions

Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation.

Where these measurement criteria have not been met, consideration is made to determine whether the legacies meet the definition of a contingent asset. At the year end the estimated cash value of contingent assets is £nil (prior year £nil).

Judgements in applying accounting policies and key sources of estimation.

Estimates and judgements are evaluated at each reporting date and are based on historical experience as adjusted for

21

20 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

2 Income from donations and legacies /

----- Start of picture text -----
UNRESTRICTED RESTRICTED TOTAL TOTAL
FUNDS 2022 FUNDS 2022 2022 2021
(£000’s) (£000’s) (£000’s) (£000’s)
Donations 3,053 16 3,069 2,646
-
Legacies 1,445 1,445 965
4,498 16 4,514 3,611
----- End of picture text -----

The charity benefits greatly from the involvement and support of its many volunteers, details of which are given in the Trustee’s report. In accordance with FRS102 and the Charity’s SORP (FRS 102) the economic contribution of general volunteers is not recognised in the accounts.

3 / Income from other trading activities

----- Start of picture text -----
UNRESTRICTED TOTAL TOTAL
FUNDS 2022 2022 2021
(£000’s) (£000’s) (£000’s)
Lottery income 4,163 4,163 4,264
Other income 73 73 15
Sale of merchandise 10 10 8
4,246 4,246 4,287
----- End of picture text -----

4 / Income from investments

----- Start of picture text -----
UNRESTRICTED
TOTAL 2022 TOTAL 2021
FUNDS 2022
(£000’s) (£000’s)
(£000’s)
Investment income 391 391 368
Bank interest 14 14
405 405 368
----- End of picture text -----

5 / Expenditure on raising funds

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Fundraising costs and cost of sales 738 414
Fundraising staff costs 204 274
Allocated support costs (note 7) 749 728
Lottery prizes and expenses 1,119 1,193
Investment management costs 81 68
2,891 2,677
----- End of picture text -----

Expenditure on raising funds was £2,891k (2021: £2,677k) of which £2,889k (2021: 2,677k) was unrestricted and £2k (2021: £ nil) was restricted.

6 Expenditure on charitable activities /

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Operation of Air Ambulance 5,346 4,826
Operation staff costs 50 34
Allocated support costs (note 7) 290 275
Grants to Institutions - -
Loss on disposal of fixed asset 3
5,689 5,135
----- End of picture text -----

Expenditure on charitable activities was £5,689k (2021: £5,135k) of which £5,681k (2021: £5,121k) was unrestricted and £8k (2021: £14k) was restricted.

7 / Analysis of expenditure on Support costs

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Administrative salaries and social security 680 613
Pension costs 17 31
Office costs 212 273
Other administrative costs 112 76
Governance costs 18 10
1,039 1,003
----- End of picture text -----

23

22 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Support costs have been allocated as follows:
Expenditure on raising funds (note 5) 749 728
Expenditure on charitable activities (note 6) 290 275
1,039 1,003
----- End of picture text -----

8 Analysis of Governance costs /

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Auditor and accountancy fees 15 10
Trustees expenses
Other 3 -
18 10
----- End of picture text -----

9 / Staff costs

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Wages and salaries 846 842
Employer’s national insurance 81 71
Employer’s pension contributions 23 38
950 951
----- End of picture text -----

Trustees travel expenses were £Nil (2021: £ Nil) during the year. There were no related party transactions during the year.

The average number of full-time equivalent employees was 28 (2021: 25).

The key management personnel of the charity comprise 4 staff members. The total employee emoluments of the key management personnel of the charity were £252k (2021: £340k). The highest paid employee received emoluments of £77k (2021: £73k) and pension contributions of £2k (2021: £18k) in the year.

The following employees received employee benefits (excluding employer pension costs and employers NI) during the year between:

----- Start of picture text -----
2022 2021
£60,000 - £69,999 2 3
£70,000 - £79,999 1 1
----- End of picture text -----

10 / Tangible fixed assets

----- Start of picture text -----
LEASEHOLD FIXTURES
MOTOR
IMPROVE- EQUIPMENT AND TOTAL
VEHICLES
MENTS (£000’s) FITTINGS (£000’s)
(£000’s)
(£000’s) (£000’s)
Cost
At 1 October 2021 579 441 97 186 1,303
Additions - 50 4 - 54
- -
Disposals (19) (19)
At 30 September 2021 579 472 101 186 1,338
Depreciation
At 1 October 2021 179 294 71 157 701
Charge for the year 50 72 6 19 147
- -
Eliminated on disposal (17) (17)
At 30 September 2022 229 349 77 176 831
Net book value
350 123 24 10 507
At 30 September 2022
At 30 September 2021 399 148 26 29 602
----- End of picture text -----

11 Fixed asset investments /

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Market value at 30 September 2021 14,286 13,109
Net Income/Income withdrawals (47) 270
Fee withdrawals (81) (68)
Realised and unrealised (loss)/gains (1,260) 976
Market value at 30 September 2022 12,898 14,287
Historic cost at 30 September 2022 12,454 12,350
----- End of picture text -----

Total investment income as disclosed on the face of the Statement of Financial Activities also includes £14k (2021: £ Nil) of bank interest. All investments are listed.

No single investments exceeded 5% of total market value. The cash element was £317k.

25

24

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

Annual Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

12 Debtors /

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Accrued income 336 441
Prepayments 560 445
Other debtors 204 81
1,100 967
----- End of picture text -----

13 / Creditors: amounts falling due within one year

----- Start of picture text -----
2022 (£000’s) 2021 (£000’s)
Trade creditors 468 904
Other creditors 54 3
Lottery receipts in advance 550 468
Accruals 1,608 511
Other taxation and social security 24 20
2,704 1,906
----- End of picture text -----

14 / Controlling party

The charity is controlled by its Trustees.

15 / Commitments under operating leases

The charity had commitments under non-cancellable operating leases as set out below:

----- Start of picture text -----
LAND AND LAND AND
OTHER OTHER
BUILDINGS BUILDINGS
2022 (£000’s) 2021 (£000’s)
2022 (£000’s) 2021 (£000’s)
Within one year 93 2,110 93 1,561
In two to five years 316 4,154 349 3
In more than five years 490 - 550 -
899 6,264 992 1,564
----- End of picture text -----

16 Analysis of Unrestricted funds /

----- Start of picture text -----
NET MOVEMENT AT 30
AT 1 OCTOBER TRANSFERS
IN FUNDS SEPTEMBER
2021 (£000’s) (£000’s)
(£000’s) 2022 (£000’s)
General fund -
17,973 (681) 7 17,299
operational reserve
17,973 (681) 7 17,299
----- End of picture text -----

Analysis of Unrestricted funds – prior year

----- Start of picture text -----
NET MOVEMENT AT 30
AT 1 OCTOBER TRANSFERS
IN FUNDS SEPTEMBER
2020 (£000’s) (£000’s)
(£000’s) 2021 (£000’s)
General fund -
operational reserve 16,566 1,372 35 17,973
16,566 1,372 35 17,973
----- End of picture text -----

17 / Analysis of Restricted funds

----- Start of picture text -----
NET MOVEMENT AT 30
AT 1 OCTOBER TRANSFERS
IN FUNDS SEPTEMBER
2021 (£000’s) (£000’s)
(£000’s) 2022 (£000’s)
Reserve for specified
3 9 (7) 5
capital expenditure
Reserve for specific operational costs 21 5 - 26
Reserve for other
specific costs 8 (8) - -
32 6 (7) 31
----- End of picture text -----

The charge to the Statement of Financial Activities relating to operating leases for the year was £1,637k (2021: £1,612k)

26 HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

27

Annual Report and Financial Statements

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2021

Analysis of Restricted funds – prior year

----- Start of picture text -----
NET MOVEMENT AT 30
AT 1 OCTOBER TRANSFERS
IN FUNDS SEPTEMBER
2020 (£000’s) (£000’s)
(£000’s) 2021 (£000’s)
Reserve for specified -
38 (35) 3
capital expenditure
Reserve for specified operational costs 3 18 - 21
Reserve for other
specific costs 2 6 - 8
5 62 (35) 32
----- End of picture text -----

18 / Post Balance Sheet Events

There are no post balance sheet events in the current year.

19 / Analysis of net assets between funds

Fund balances at 30 September 2022 are represented by:

----- Start of picture text -----
UNRESTRICTED RESTRICTED TOTAL
FUNDS (£000’s) FUNDS (£000’s) FUNDS (£000’s)
Tangible fixed assets 507 - 507
Investments 12,898 - 12,898
Net current assets 3,894 31 3,925
17,299 31 17,330
----- End of picture text -----

28

HIOWAA[●] Hampshire and Isle of Wight Air Ambulance

IIID ISLE OF MGHT R AI4BUIANQE LIAMpSHrnEI HAMPSHIRE AND¢ ISLE OF WIGHT AIR AMBULANCE www.hiowaa.org 023 8074 3510 enquiries@hiowaa.org