**Registered number: 07085879 Charity number: 1133295**
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3|
|**Independent auditors' report on the financial statements**|23 - 26|
|**Consolidated statement of financial activities**|27|
|**Consolidated balance sheet**|28|
|**Charity balance sheet**|29|
|**Consolidated statement of cash flows**|30|
|**Notes to the financial statements**|31 - 54|
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Trustees**|Mr M P Carne CBE, Chair|
|---|---|
||Mr C C Pomfret, Vice Chair (resigned 26 July 2022)|
||Mr S A Carr, Chair of Nominations and Remuneration Committee|
||Mr R Cowie, Chair Finance Committee|
||Mr B S Mark, Chair Risk and Audit Committee|
||Mrs B Sharples (resigned 26 July 2022)|
||Mr D Scott|
||Mrs D Griffith|
||Ms L A McKay (appointed 28 January 2021)|
||Mr N Lentern (appointed 28 January 2021)|
|**Philanthropy Forum**|Mr J McCulloch, Chair|
||Mrs B Sharples|
||Ms J Stanley|
||Dr K Dickens|
||Dr K O'Sullivan|
|**Company Registered**
**Number**
07085879
**Charity Registered**
**Number**
1133295
**Company secretary**
Mr S Murdoch (to 24 September 2021)
Mr A Whitton (from 14 September 2021)
**Senior Leadership Team** Mrs P Martin, Chief Executive Officer (left 28 February 2021)
Mr S Murdoch, Chief Operating Officer/Interim Chief Executive Officer (from 1
March 2021 to 31 August 2021) (left 23 November 2021)
Mr T Bunting, Chief Executive Officer (from 1 September 2021)
Mr A Whitton Head of Finance & Business Intelligence (from 1 September 2021)||
Page 1
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Independent Auditors**|Bishop Fleming LLP|
|---|---|
||Chartered Accountants|
||Statutory Auditors|
||Chy Nyverow|
||Newham Road|
||Truro|
||Cornwall|
||TR1 2DP|
|**Bankers**|HSBC plc|
||3 Fore Street|
||Bodmin|
||Cornwall|
||PL31 2HU|
|**Legal Advisers**|Stephens Scown|
||1 High Cross Street|
||St Austell|
||Cornwall|
||PL25 4AB|
|**Investment Managers**|Quilter Cheviot|
||One Kingsway|
||London|
||WC2B 6AN|
Page 2
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 FOR THE YEAR ENDED 31 DECEMBER 2021**
## **&+$,50$1¶6 67$7(0(17**
The chairman presents his statement for the year.
The Cornwall Air Ambulance Trust is in good health and doing well despite the unprecedented challenges of the last two years. We have adapted to the new reality of fundraising in these more challenging times and have enhanced our operations capability. Our new helicopter is a huge success and the higher standards of clinical care we can now deliver are helping to save more lives than ever.
Like any high performing organisation, we are ambitious to improve further the service that we can offer the people of Cornwall and the Isles of Scilly. We are now in the process of expanding the base at Newquay to provide our aircrew with better training facilities, which will enhance our clinical capabilities. Although we are not immune to the cost-of-living challenges that are making life much harder for so many people in our county, through innovation, focus and hard work, I am confident that we will be able to continue our journey of improvement. This is only possible thanks to the extraordinary generosity and kindness of the people we serve.
On behalf of the entire Board of Trustees, I am extremely grateful to supporters, staff and volunteers for your tireless efforts. Together we are doing something incredibly important and valuable; saving lives.
Thank you.
**Chairman: Mr M P Carne CBE** Date: 23rd September 2022
Page 3
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **&+,() (;(&87,9(¶6 67$7(0(17**
This set of accounts for the year ending 31st December 2021 encapsulates another challenging year for Cornwall Air Ambulance under the cloud of the Covid-19 pandemic. I am pleased to report that every department within the charity has stepped up and ensured our life saving missions can continue, despite the uncertainties and changing landscapes faced.
Once again, we undertook close to 1,100 missions in 2021 and with the significant influx of tourists into the county and the subsequent increase in population, demand for our services is only likely to increase. ± However, this is of course solely down to the support of a huge number of people primarily the people of Cornwall and the Isles of Scilly. As a resident since 2010, I have always been very aware of that it is those communities support that keep the helicopter flying and the specialist critical care paramedics and doctors saving lives.
I am extremely proud to lead the organisation into a new era and for the next 3 years, we will be focusing on 5 key priorities:
1. Culture, Vision and Values ± ensuring our people (supporters, aircrew, staff and volunteers) are at the centre of everything we do.
2. Operational Excellence ± providing the very best critical care for the people of Cornwall and the Isles of Scilly.
3. Income Generation & Marketing ± providing the necessary funds and awareness to support our missions.
4. Special projects ± supporting innovation and continual development is at the forefront of our thinking.
5. Finance & Business Intelligence ± ensuring donated funds are invested well and we have the information to make informed decisions.
During the year, we have transitioned to a new helicopter operations partner, Castle Air. _Your AW169 has been one of the busiest HEMS aircraft in the UK and I am therefore very pleased to be working closely with a locally based business that understands the importance our service provides._
Looking forward, we want to ensure that we can continue to fund the lifesaving missions we undertake, but also explore how our service needs to evolve to better meet those needs both now, and well into the future. Thank you to each and every one for your continued support. Your charity continues to save lives.
**Chief Executive Officer: Tim Bunting** Date: 23rd September 2022
Page 4
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **75867((6¶ 5(3257**
The Trustees (who are also Directors of the Charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of the Cornwall Air Ambulance Trust for the year 1 January 2021 to 31 December 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) 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 2015) as amended by Update Bulletin 1 (effective January 2015).
Since the Charity and the group qualify as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
## **Objectives and activities**
The principal objective of the Charity is relieving pain and sickness for the benefit of the public by assisting in the provision of emergency medical services and equipment, in particular the provision of an air ambulance service or other emergency transportation, primarily in Cornwall and the Isles of Scilly. These are the purposes of the Charity as set out in its Governing documents.
The Charity serves a local community of around 570,000 people, together with over 5 million visitors who come to the region every year. The Charity relies on the local community to raise sufficient funds to deliver the service without receiving regular government funding or support from the National Lottery.
7KH &KDULW\¶V &ULWLFDO &DUH 7HDPV RI SDUDPHGLFV GRFWRUV DQG SLORWV SURYLGH HQKDQFHG HPHUJHQF\ PHGLFDO services to the most seriously ill and injured patients throughout Cornwall and the Isles of Scilly. These services are delivered in partnership with the South Western Ambulance Service NHS Foundation Trust (SWASfT) who support the delivery of the clinical services and Castle Air, based in Liskeard who operate and PDLQWDLQ WKH &KDULW\¶V KHOLFRSter ± a Leonardo AW169, registration G-CRWL.
The Charity also operates two critical care cars, which were upgraded in 2021, carrying the same specialist lifesaving equipment, specialist drugs and the same crew who would normally fly on the air ambulance helicopter. These cars provide a backup service if the helicopter is unavailable, predominantly due to poor weather limitations).
## **Public Benefit**
The public benefit provided by the Charity is to anyone and everyone in Cornwall and the Isles of Scilly, including residents and visitors, and although primarily in the County of Cornwall, also extends to Devon and beyond when required. The Cornwall Air Ambulance is free at the point of need, on the grounds of fixed sets of criteria which take into account clinical need, urgency, accessibility and distance to hospital. These criteria are regularly reviewed and rigorously applied. No private benefit use of the Cornwall Air Ambulance helicopter is given to anyone at any time.
The Trustees run the charity with due regard to the public benefit guidance issued by The Charity Commission and the Charity Act 2011.
Page 5
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STRATEGIC REVIEW**
In 2021, Cornwall Air Ambulance was tasked to 318 patients suffering from cardiac arrests ± and Peter Sowden was one of them.
A referee for his local football club, Peter was about to start a match at Kimberley Stadium, Saltash, when he collapsed in early December.
_³%DVLFDOO\ , FDQ RQO\ JR RQ ZKDW SHRSOH KDYH VDLG EXW ,¶G EHHQ RXW DQG GRQH P\ SUH-match warm-up and ILQLVKHG DOO WKH SDSHUZRUN , QHHG WR GR ZKHQ , JR RXW RQ WKH ILHOG IRU SOD\ 6XGGHQO\ LW KDSSHQHG ´_
± After that, Peter remembers nothing except waking up in hospital eight days later. What was happening on the ground, though, was lifesaving.
$OPRVW LPPHGLDWHO\ WKH WHDP¶V SK\VLRWKHUDSLVW MXPSHG LQWR DFWLRQ ZLWK WKH VWDGLXP¶V GHILEULOODWRU DQG ZLWK the help of a nurse and a firefighter (who just happened to be playing on the opposing team), started CPR.
_³7KH\ VKRFNHG PH DQG PDQDJHG WR JHW PH EDFN LQ D YHU\ VKRUW WLPH IUDPH 7KH\¶G RQO\ KDG WKH GHILE IRU WKUHH ZHHNV DQG QRZ WKH\ KDYH WKUHH DURXQG WKH VWDGLXP ´_
Between them they were able to deal with the situation until an ambulance crew, and Cornwall Air Ambulance, made it to the scene.
Page 6
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
_³:KHQ WKH &RUQZDOO $LU $PEXODQFH critical care team turned up, they were able to give me sedatives to try and stabilise me, because I was getting jumpy and erratic in my EHKDYLRXU ´_
Peter was rushed to Derriford Hospital by land ambulance, with the Cornwall Air Ambulance crew on board to administer critical care along the way.
He then spent over a week on a ventilator in intensive care, before being fitted with an ICD- a heart monitoring device.
Peter has continued to recover well and is back home with his family, enjoying everyday life.
_³0\ OLIH KDV FKDQJHG TXLWH D ELW ± , ZRQ¶W EH GRLQJ WKH VDPH SK\VLFDO DFWLYLW\ WKDW , ZDV $OO LQ DOO , ZDV YHU\ fortunate because I was in the right place at the right time, with the right people dealing with it. It all happened so quick._
_³7KDW ZDV WKH FUXFLDO IDFWRU WKDW HYHU\ERG\ LQFOXGLQJ WKH DLU DPEXODQFH JRW WKHUH VR IDVW :KHQ \RX ORRN DW ± the distance, they still must get there and land and they got there remarkably quick. You never know when it could hDSSHQ ´_
## **OPERATIONAL PERFORMANCE**
The operations of the air ambulance have been a challenge again this year due to the continued strain of the Covid-19 pandemic. In addition to this, the short notice transfer of helicopter servicing and training services to a new supplier, and the direct employment of the Pilots has also introduced some considerable turbulence in this year. Whilst the new supplier provided CAAT with a backup helicopter, it does not have the performance or capability of the primary aircraft. It is not cleared for night-time operations and has a reduced capacity to convey patients.
Despite these challenges the crew have continued to fly and treat patients throughout these changes and in 2021 tasking has remained at a similarly high level when compared to previous years, responding to 1109 taskings in our aircraft and critical care cars.
Our service responds to patients with life threatening medical conditions, traumatic injuries and a small number of patients requiring urgent, time critical transfers between hospitals for specialist treatment. The specialist care provided or critical care paramedics and doctors, together with the clinical urgency and the complexity of the incident are the most significant factors in a patient requiring support and treatment from air ambulance crews.
Page 7
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
Following the departure of the COO, the charity has recruited a new Head of Operations. It has been an enormous achievement to keep up operational tempo with the change in service provider and key personnel during this time of major change. This is a testament of the skill and dedication of the whole team and would QRW EH SRVVLEOH ZLWKRXW WKH GRQDWLRQV IURP WKH FKDULW\¶V VXSSRUWHUV
Delivery of our services would not be possible without the contribution of our key partners:
## **South Western Ambulance Service NHS Foundation Trust**
Cornwall Air Ambulance is part of a fully integrated response to emergencies in Cornwall, facilitated through the South Western Ambulance Service NHS Foundation Trust. The ambulance service is contracted through a Service Level Agreement for the provision of a team of paramedics dedicated to air ambulance operations, deployment on emergency missions from their Emergency Clinical Hub in Exeter and the clinical governance and oversight of the paramedics and doctors.
## **Royal Cornwall Hospitals NHS Trust (RCHT) and University Hospitals Plymouth NHS Trust (Derriford)**
The charity works with a small team of doctors to carry out the role of education support physicians for the development of specialist paramedic aircrew and to undertake clinical shifts as part of the crew bringing specialist skills (particularly the provision of Pre-Hospital Emergency Anaesthesia).
## **Cornwall Blood Bikes**
The Blood Transfusion Service at RCHT also support the charity with the supply of blood product for the service, which is delivered daily to the airbase by a team of volunteer riders.
## **Kernow Clinical Commissioning Group (CCG)**
The Covid-19 pandemic has put the NHS nationally and locally under extreme pressures, therefore closer working relationships have been formed across the healthcare community. This has resulted in greater levels of engagement between the charity and the CCG, supporting healthcare across the region.
## **Castle Air**
&RUQZDOO $LU $PEXODQFH DSSRLQWHG &DVWOH $LU DV WKH FKDULW\¶V QHZ KHOLFRSWHU RSHUDWRU LQ :KLOH WKH charity owns the AW169 helicopter, Castle Air holds the operating license for the aircraft and is responsible for the maintenance of the AW169 and back-up AW109 helicopters.
Page 8
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Other key stakeholder partners include:**
- x Air Ambulances UK
- x Bristow (Search and Rescue)
- x Cornwall Airport Newquay
- x Cornwall Council
- x Wider emergency service partners
## **MAKING IT ALL POSSIBLE**
## **New Helicopter Operations Partner**
Cornwall Air Ambulance appointed Castle Air as its helicopter operations partner in 2021. The Liskeard-based company will be UHVSRQVLEOH IRU WKH RQJRLQJ PDLQWHQDQFH DQG HQJLQHHULQJ RI WKH FKDULW\¶V $JXVWD:HVWODQG (AW) 169 helicopter, which was manufactured by Leonardo.
&DVWOH $LU KDV RYHU \HDUV¶ H[SHULHQFH LQ WKH PDQDJHPHQW RI DLUFUDIW DQG LV DQ $SSURYHG /HRQDUGR 6HUYLFH Centre. It operates and maintains several AgustaWestland helicopters for the provision of Helicopter Emergency Medical Services (HEMS), VIP Charter, Aerial Surveillance, Passenger Transport and Training services.
Castle Air will carry out routine maintenance and the annual checks on the aircraft to ensure the air worthiness of the AW169. When the helicopter is offline, the crew of Cornwall Air Ambulance will respond to incidents in the back-up AW109 helicopter (G-KRNO), to ensure they can continue to reach the most seriously sick and injured patients in Cornwall and the Isles of Scilly.
Page 9
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Blood on Board**
At the end of 2020, Cornwall Air Ambulance started to carry blood products on board the aircraft and the rapid UHVSRQVH YHKLFOHV IRU WKH ILUVW WLPH LQ LWV KLVWRU\ 7KH LQWURGXFWLRQ RI WKH µ%ORRG RQ %RDUG¶ VHUYLFH LV D collaboration with the blood transfusion service at Royal Cornwall Hospital Trust (RCHT), South Western Ambulance Service NHS Foundation Trust and Cornwall Blood Bikes.
Daily the RCHT Blood Transfusion Service provide two sealed blood boxes of O+ blood and two units of fresh frozen plasma and O- blood and two units of fresh frozen plasma. These are maintained at a temperature between 2-6°C within approved Credo boxes, which provide a consistent temperature for 36 hours. During operating hours, the blood is stored in the airconditioned room and moved to either the aircraft or rapid response vehicle for a mission. This maintains cold chain validation, allowing any unused blood products to be returned to the main blood bank stock, minimising waste.
Cornwall Blood Bikes provide daily delivery and collection of blood products between Cornwall Air Ambulance airbase and the RCHT blood bank. A safety deposit box outside the hanger facilitates the late-night pick-up and dawn drop-off for blood products.
Cornwall Air Ambulance critical care paramedics underwent a rigorous training process to be able to DGPLQLVWHU WUDQVIXVLRQV ZKLFK ZDV RYHUVHHQ E\ WKH FKDULW\¶V GRFWRUV
The Henry Surtees Foundation donated £36,560 to the project, which covered the cost of a new BMW RT1250 motorcycle for Cornwall Blood Bike volunteers to transport the blood and training and equipment for the aircrew to be able to administer it.
,Q WKH ILUVW \HDU RI WKH VHUYLFH WKH FKDULW\¶V FULWLFDO FDUH SDUDPHGLFV FDUULHG RXW SUH-hospital blood transfusions.
## **Impact- Patient Story**
A road traffic collision in winter left 23-year-old Liam Bradley with life-threatening injuries.
Liam was on his way to work in the early hours of 22 January 2021, when the incident happened on the A388 at St Mellion. It took emergency services almost two hours to cut him free from the car.
Suffering from extensive injuries to both legs and a collapsed lung, Liam was in critical condition. Cornwall Air Ambulance was tasked to the scene, where critical care paramedics administered a blood transfusion to increase blood pressure and minimise damage to his brain.
Liam became just the second patient to receive a blood transfusion on scene since Cornwall Air
Ambulance started carrying blood in December 2020.
Due to the proximity to Plymouth, the crew joined Liam in the back of a land ambulance for the transfer to Derriford Hospital. He spent two weeks in an induced coma.
Page 10
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
2Q WKDW GD\ /LDP¶V GDG *DU\ KDG WKH NQRFN RQ WKH GRRU QR SDUHQW HYHU ZDQWV WR UHFHLYH 2QFH WKH SROLFH delivered the news, he went straight to the hospital. Gary said: _³7R VHH KLP VWULSSHG ZLWK EORRG HYHU\ZKHUH DQG DOO RI WKH GRFWRUV DQG QXUVHV ZRUNLQJ RQ KLP ZH MXVW WKRXJKW µKH¶V QRW JRLQJ WR VXUYLYH WKDW¶ :H sat in the car park for hours hoping to see him once he was out of the operating theatre. It was such an XQEHOLHYDEO\ WUDXPDWLF DQG HPRWLRQDO WLPH ´_
Liam suffered a brain injury due to the lack of oxygen going to his brain because of his injuries. Following treatment at Derriford Hospital, he was transferred to Mount Gould Hospital for specialist rehabilitation. Over a year on from the incident, Liam has recovered remarkably well. He came to the airbase to visit the crew who helped him, including critical care paramedics Martin, Paul and Thomas and pilot Adam.
Liam said: _³,W¶V KDUG WR H[SODLQ when you have an accident, but \RX GRQ¶W UHDOO\ EHOLHYH LW¶V happened to you. I remember VFUHDPLQJ EXW , GLGQ¶W NQRZ ZKDW - ZDV JRLQJ RQ ,¶P D OXFN\ ER\ there is no point sulking. It was overwhelming to meet the people ZKR KHOSHG PH ´_
Critical Care Paramedic Martin Bunt said: _³7R VHH /LDP VDW KHUH now with the injuries he had is amazing. He had a hard time coming off the sedation, which ZDV D FRQFHUQLQJ VLJQ VR LW¶V_
_YHU\ LPSUHVVLYH +LV SRVLWLYH DWWLWXGH KDV UHDOO\ KHOSHG LQ KLV UHFRYHU\ ´_
## **Volunteers**
The backbone of Cornwall Air Ambulance has and always will be the support of our incredible team of volunteers. In 2021 our Groundcrew Volunteers donated 24,680 hours, saving the charity £220,152 in wages. The charity relies on a team of 250 dedicated volunteers to carry out a range of duties alongside paid staff members. Volunteers are vital to the running of our seven charity shops, other roles include administration, jar collection, event support and speakers who go into the community to talk about the work the charity does. Volunteers are some of the charity¶V PRVW SDVVLRQDWH DGYRFDWHV
Cornwall Air Ambulance has held an Investing in Volunteers accreditation; in 2022 the charity will undergo the process of reaccreditation. We are committed to enhancing the opportunities and experiences available to volunteers.
## **250 volunteers 24,680 hours £220,152 wages saved**
Karolyn Albutt, Groundcrew- Volunteer Administrator
_³%\ YROXQWHHULQJ , NQRZ ,¶P UDLVLQJ IXQGV WR VXSSRUW WKH YLWDO OLIHVDYLQJ ZRUN WKH crew of Cornwall Air Ambulance carry out each year. My granddaughter was airlifted eight years ago; volunteering is my way of saying thank you and giving VRPHWKLQJ EDFN WR WKH FKDULW\ ´_
Page 11
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Rapid Response Vehicles**
In 2021 Cornwall Air Ambulance purchased two new rapid response vehicles. The Volvo V90 Cross Country B6 mild hybrid estates have upgraded suspension, tyres and brakes specifically designed for blue light vehicles. Both cars are a bespoke design, created by the crew, to fit their specialist lifesaving kit. The conversion was carried out by Halls Electrical- H[SHUWV LQ EOXH OLJKW FRQYHUVLRQV 7KH FKDULW\¶V GHVLJQHU Charlotte Freeman created the wrap for the vehicles in line with the Cornwall Air Ambulance brand, whilst maintaining the look of an emergency service vehicle. The rapid response vehicles were funded through the Big Give supported by Dr Karen J Dickens of Comitti Boats UK & Caribbean and the Tanlaw Foundation.
## **FUNDRAISING**
It is only thanks to the generosity of the communities that we serve that we are able to keep the Air $PEXODQFH IO\LQJ DQG VDYLQJ OLYHV 7KH &KDULW\¶V LQFRPH LV EDVHG RQ D EURDG UDQJH RI DFWLYLWLHV WR HQVXUH that we engage with individuals, groups and organisations. The Charity employs a professional fundraising to manage these income streams and ensure compliance with our statutory obligations for fundraising.
The pandemic continued to play havoc with our traditional fundraising events calendar, with often short notice cancellations occurring. However, the team continued to innovate and adapt, contributing to of £1m of unrestricted income to the charity.
Page 12
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Mission Maker Lottery**
The long established Mission Maker Lottery generates unrestricted income from the sale of society lottery tickets. This vital income stream contributed £1,594K. The lottery is managed by an external lottery manager, Lottery Fundraising Services Ltd, a Gambling Commission accredited operator who work under the supervision of the Cornwall Air Ambulance Trust Senior Leadership Team (SLT) who hold the Gambling Licence. Their agents wear the charity brand in the community, with lottery fundraising being regulated under both Gambling Commission laws and Fundraising Regulator Codes of Practice. The Leadership Team hold quarterly compliance meetings with our lottery fundraising operator, and undertake reviews of their canvassing activities including the training of fundraisers engaged directly in communicating with the public. The Board of Trustees, and the board led Risk & Audit and Finance Committees scrutinise this fundraising activity and its reporting.
## **Legacies**
Cornwall Air Ambulance Trust actively encourages the public to consider leaving a gift in their Will and promotes legacy giving through a range of sensitive campaigns. These gifts for a vital source of income for the charity. The Trustees are extremely grateful to have received such a generation donation and have designated these funds for future development of the charity as a lasting legacy.
## **Marketing and Communications**
The Charity continues to deliver multi-channel marketing campaigns that not only build the charity brand but also reach new audiences to support our income generation. In 2022, the team will continue to focus on the growth of its excellent digital presence, bringing new channels into its portfolio.
## **Fundraising Promise**
The Charity adheres to the very highest standards in donor care and fundraising compliance as set out in the Code of Fundraising Practice. We are registered with the Fundraising Regulator and we agree to ensure our fundraising is legal, open, honest and respectful. Our own Fundraising Promise outlines the commitment this Charity makes to donors and the public, and together with the Complaints Policy and the Communications and Privacy Policies, can be found on our website.
## **Charity Retail**
In the early part of 2021, the global pandemic and government enforced lockdowns resulted in the closure of non-essential retail. a challenging year for charity shops across the sector and for the Cornwall Air Ambulance.
At the time of publishing these accounts, the Cornwall Air Ambulance Charity shops have re-opened on 12th April 2021 Since the shops reopened, they have traded strongly and we were delighted to open a Superstore in Bodmin. Our retail stores are not only a valuable source of income, but also important connectors to the communities in which they are based.
## **OUR FUTURE DIRECTION**
## **Impact of Covid-19**
The Covid-19 pandemic has created a significant amount of uncertainty and disruption across the charity sector and beyond and many charities and business are likely to continue to struggle financially in the coming months and year.
Whist the financial position of the Charity has not yet been significantly affected, the economic impacts of the pandemic have not yet taken full effect and it is therefore likely that the fundraising environment will continue to be challenging. However, the Charity is in a fortunate position with sufficient reserves and a healthy cash position to maintain operations for the foreseeable future.
As lockdown restrictions have been eased during 2021, the charity has seen a return to more normal fundraising events and the reRSHQLQJ RI WKH FKDULW\¶V VKRSV WKHVH LQFRPH VRXUFHV WRJHWKHU ZLWKRXW VWURQJ OHJDF\ SLSHOLQH DQG UHJXODU ORWWHU\ LQFRPH JLYHV WKH 7UXVWHHV FRQILGHQFH LQ WKH FKDULW\¶V ORQJ WHUP sustainable income however the trustees are keeping this under review.
Page 13
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **FUTURE DEVELOPMENTS 2023 & BEYOND**
## **Extension to Operations Headquarters**
Work has started on a new crew building, which is an extension to the eastern end of the existing helicopter hangar. The new development will provide better training facilities, a significantly improved operations room, and more rest areas for the aircrew. The extension will also allow the charity team more space at headquarters to facilitate growth in the team.
## **Crew training**
Our pilots are now directly employed by the charity, a great step forward for Cornwall Air Ambulance which provides continuity and allows us to bring their aviation expertise in-house. We are the first air ambulance charity to send our pilots overseas twice in a year for simulator training with helicopter provider Leonardo. Access to the simulator is a vital part of the training, and our plan is to continue to enhance the training we ± can provide in the coming years both for the Pilots and the Specialist Critical Care Paramedics.
## **Enhanced website & Digital engagement**
Our website attracts up to 12,000 visitors a week and is a vital way for us to reach people about our lifesaving work. Our website is getting older and must be enhanced to help us reach people more effectively with our work. With a growing number of people coming to us via platforms such as mobile phone, tablets and laptops as well as through social media, we need to invest in our website and in new digital solutions to help us better connect with people with our work, giving them the content they want and deserve ± presented in the best way possible.
## **Improved interactions with donors**
With our supporter database growing all the time, one of the key challenges we face is to communicate effectively and efficiently with our amazing community. Our current database system for managing our supporter connections is over 10 years old and technology has hugely advanced over this time. One of the key things we would like to fund is upgrading our donor management system, which will help us to more effectively communicate and interact with our supporters.
## **Education Officer**
As a charity we want to build strong relationships with local schools and colleges, organising talks and visits to educate local communities about the work of Cornwall Air Ambulance. An Education Officer, will be responsible for developing an Education Programme. This will include creating resources and materials to engage young people and educate them on all things CAAT, including how to be safe in the county. Over the next 12 months we will be strengthening the brand by proactively building relationships and parentships with schools and colleges across Cornwall and the Isles of Scilly through work experience placements and educational talks/visits. We also plan to encourage more students to undertake work experience and take their first career moves with the charity, encouraging the next generation to carry Cornwall Air Ambulance forward.
## **Our Thanks To You**
The people of Cornwall and beyond have shown their incredible generosity throughout 2021.
Despite many ongoing challenges as a result of the pandemic, they have continued to raise the vital funds needed to keep Cornwall Air Ambulance responding to emergencies 365 days a year.
We extend our heartfelt thanks to every individual, business and community group who fundraised, held an event, took on a challenge or popped a penny in the pot for the charity - it all makes a huge difference. We also extend our grateful thanks to all 250 volunteers, without which the charity could not continue to provide a lifesaving service to the people of Cornwall and the Isles of Scilly.
Page 14
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
A thank you to town and parish councils, and Cornwall Councillor Fred Greenslade for their support to the charity. And to the many generous trust and grant funders who, combined, donated over £100,000 to Cornwall Air Ambulance towards vital pieces of equipment and training for the aircrew.
A final thank \RX WR &RUQZDOO $LU $PEXODQFH¶V 5R\DO 3DWURQ +5+ 7KH 'XFKHVV RI &RUQZDOO 3UHVLGHQW Colonel Edward Bolitho OBE and Vice President Dr Ed Abrahamson, and all our other very dedicated ambassadors.
## **FINANCIAL REVIEW**
## **Key Performance Indicators**
Key Financial Performance Indicators (KPI's) are a measurable value that demonstrate how effectively we are doing in achieving our key business goals.
As part of our monthly Management Accounts, we actively measure and monitor the pounds raised per employee and the percentage relating to our Charitable Objects. These statistics enable Trustees to understand in real time the performance or contribution of each activity.
In addition, the Charity Retail Association collect and publish retail KPIs which enable the Charity Shops to be benchmarked against other similar retail Charity Shops. This information is then used to help assess how our Charity Retail Shops meet the targets and expectations of the Board in terms of Return On Investment. It also assists in measuring how well they perform as a contribution towards our cause.
Annually, we monitor the overall performance for the year, especially the percentage of funds committed direct to the cause, including funds set aside for reserves and the designated helicopter replacement fund.
## **Performance Review**
Despite continued challenges of the Covid -19 pandemic the Charity continues to deliver strong financial performance. Resilient Lottery income along with Legacies have helped offset reduced General Fundraising income. Retail increased its income and profitability in 2021 as Covid restrictions were relaxed. The &KDULW\¶V 5HWXUQ RQ ,QYHVWPHQW IRU WKH \HDU 52, RI LV VLPLODU WR WKH 52, IRU DQG improvement over 4.5:1 ROI for 2019.
Page 15
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Income**
7KH &RYLG 3DQGHPLF KDV FRQWLQXHG WR HIIHFW LQFRPH DV WKH &KDULW\¶V QRUPDO IXQGUDLVLQJ DFWLYLWLHV KDYH EHHQ curtailed. Lottery income of £1.6M has remained resilient alongside £2.4M of Legacies income recognised in 2021. The Charity retail has also continued to be impacted with shops closed at the beginning of the year but showing an increase in income over 2020 as Covid restrictions relaxed.
## **Expenditure**
7KH &KDULW\¶V IRFXV RQ FRVW FRQWURO GXULQJ WKH SDQGHPLF KDV KHOSHG XV GHOLYHU HIILFLHQFLHV and ensure that the PDMRULW\ RI LQFRPH LV GLUHFWHG WR GHOLYHU WKH &KDULW\¶V REMHFWLYHV 7R WKDW HQG SUHYLRXVO\ LQ and 77% in 2019) of our expenditure has been used to support our aviation and clinical operations or set aside to support development of our operational services in the future. Our direct Operating costs for the helicopter and our clinical services were £4,245K (an increase on 2020 but included one off contract costs). 7KH GLUHFW RSHUDWLQJ FRVWV LQFOXGH WKH FKDULW\¶V RZQHUVKLS of the helicopter, direct employment of the pilots and 19 hours/day service delivery.
The Charity remain grateful to many businesses which donate pro bono or discounted services each year, helping the Charity to manage its costs and focus as much as possible on the cause.
The Trustees are always mindful prudent use of charitable income for essential expenditure and procurement and how important this is to all those who give to the charity. As such, it is encouraging to see such a high proportion of the funds spent on or retained for the charitable purposes of the Charity.
Page 16
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Trading Subsidiary**
The Charity's trading subsidiary continued its activities in 2021 focussed on non-primary purpose activities primarily the commercial sponsorship activities undertaken by the charity. The trading company delivered an Operating profit of £30K which was donated to the Charity.
## **FINANCIAL POLICIES**
## **Reserves Policy**
The Trustees have established a Reserves policy to ensure the continuation of the air ambulance service in the event of a shortfall of income over expenditure in any one year or if a major funding stream stops abruptly. The reserve levels have been set to be sufficient to cover day to day activities, cover unplanned emergency repairs and respond to change and opportunity.
The reserves policy is formally reviewed by the Trustees each year and account is taken of the Charity Commission guidance (CC19) on reserves.
The reserves policy was reviewed at the April 2021 board meeting and having taken account of the risk analysis, primarily financial and operational, the probability of loss/reduction of income generation, the extent of the contractual commitments for the outsourced helicopter services and the need to meet the challenges associated with the procurement of the new helicopter, the Trustees concluded that a minimum of £2.4 million free reserves should be maintained. This reserves policy will be subject to further review during 2022.
$W WKH HQG RI WKH &KDULW\¶V WRWDO IXQGV ZHUH RYer £19.3M (increased from £18M in 2020), which were made up as follows:
The resultant free reserves of £5,920K is above the level required in the agreed reserves policy.
Page 17
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Material Investments Policy**
The Charity's investment powers are governed by the Charity's Articles of Association and permit the Charity's funds to be invested in a wide range of assets. The Board of Trustees is responsible for setting the investment policy and has delegated the ongoing monitoring to the Finance sub committee, while Quilter &KHYLRW SURYLGH GLVFUHWLRQDU\ LQYHVWPHQW DQG FDVK PDQDJHPHQW VHUYLFHV WR WKH &KDULW\ 7KH &KDULW\¶V SROLF\ remains to instruct their advisers to operate within medium risk parameters to secure reasonable investment income and sustain moderate capital growth.
The Charity held investments on 31 December 2021 with a market value of £3,578K (2020: £3,259K). This reflects a net unrealised gain in the portfolio value of £319K.
7KH LQYHVWPHQWV DUH KHOG DV SDUW RI WKH &KDULW\¶V IUHH UHVHUYHV Income from the portfolio is paid into the &KDULW\¶V EDQN DFFRXQW RQ D TXDUWHUO\ EDVLV ,Q WKH WRWDO LQFRPH JHQHUDWHG UHFRYHUHG DIWHU WKH LQLWLDO VKRFN RI WKH SDQGHPLF DQG LQFUHDVHG WR � . IURP ODVW \HDU¶V LQFRPH RI � .
The investment portfolio is held in a Global Income & Growth Fund for Charities, managed by Quilter Cheviot. This funds investment objectives are identical to those of the Charity but with reduced investment management fees. Whilst the fund has seen fluctuations as a result of the pandemic, overall it has demonstrated a high degree of resilience to the market fluctuations.
The Charity also holds deposits of £6.45M which are held at UK regulated banks and other cash and LQYHVWPHQW DFFRXQWV 7KHVH GHSRVLWV LQFOXGH ¼ . (XURV DV a retention against the purchase for the new AW169 helicopter pending completion of the installation of Retractable Slump Pads (part of the original aircraft specification) which will be undertaken in 2022.
## **a. FINANCIAL HEALTH/GOING CONCERN**
The Covid 19 SDQGHPLF KDV EURXJKW VLJQLILFDQW XQFHUWDLQW\ WR WKH ZRUOG¶V HFRQRP\ ZKLFK KDV LQHYLWDEO\ KDG consequences for the charity. The Charity has strong reserves position, has taken steps mitigate risk and is adapting its strategy to the changing market conditions. As a result, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
The Charity and the group is registered as a charitable company limited by guarantee and was set up by a Memorandum & Articles of Association on 24 November 2009.
The Charity and the group is constituted under a Memorandum & Articles of Association dated 24 November 2009 and is a registered charity number 1133295.
## **Board and Committees**
The Trustees exercise governance by meeting as a Board quarterly throughout the year to review strategy and performance, oversee risks and ensure that the charity complies with all legal and regulatory requirements.
The Board is supported by three non-executive led committees.
- x Finance
- x Risk and Audit
- x Nominations and Remuneration
Page 18
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Methods of appointment or election of Trustees**
,W LV WKH 7UXVWHHV¶ DLP WR HQVXUH WKDW DQ DSSURSULDWH PL[ RI VNLOOV DQG H[SHULHQFH LV PDLQWDLQHG RQ WKH %RDUG RI Trustees. Potential Trustees are invited to apply through open recruitment processes, and are interviewed by external non-executive recruitment specialists and a Committee of the Board who assess their suitability. In 2018, the Trustee made changes to their Governing Document relating to the reappointment of Trustees completing their third term of service. This amendment, approved by the Charity Commission, permits a Director (Trustee) who has served 9 years, to be re-elected on an annual basis provided their re-election has the full support of the remainder of the Board. This change to the Governing Document was made to provide full flexibility, and reduce the risk of losing a Director with key expertise at the wrong moment during evolving strategy.
Two new directors, Ms Laura MacKay and Mr Neil Lentern were appointed to the Board on 28 January 2021.
The Trustees would also like to recognise the support received from Mrs Ellen Winser who retired from the Board in July 2019 but has remained a co-opted member of the Finance Committee until July 2021.
## **Policies adopted for the induction and training of Trustees**
The Charity provides a full induction programme for new Trustees. This includes providing Trustees with an organisation email address, a tablet with encrypted hard drives providing access to a suite of files including the Trustee handbook. From time to time each Trustee can attend training and trustees networking events, days covering aspects of Governance and trustee responsibilities including training with Civil Society/NCVO in London and locally based experts in the Charity Sector.
## **Organisational Structure**
The Board of Trustees delegate the day to day running of the charity to the Chief Executive Officer. The organisational management is delegated between three distinct areas of work, Income & External Engagement (Fundraising, Marketing & Communications and Retail departments), Operational Delivery ± (Delivery of the HEMS, Health & Safety and Infrastructure both land and airside) and Support Functions (Finance & Business Intelligence and HR (Volunteers and Staff)). Each department has a Manager, who forms part of the charity Leadership Team reporting directly into the Chief Executive. This provides clear lines of communication and resilience within the organisation, allowing for future investment and potential growth, as well as development.
## **Trading Subsidiary**
Cornwall Air Ambulance Trading Limited, is a wholly owned Trading Subsidiary of the main Charity, Company Number 10227352 and the Directors of that company are the Chief Executive Officer, the Head of Finance & Business Intelligence (Company Secretary) and two Trustees including the Chair of the Finance Committee. Trustees have considered the requirement for an independent Director of the Trading Company but while the trading activity remains minimal the Directors will remain as currently appointed. The Directors of the Trading Subsidiary are clear on the requirement to act in the interests of the Company when making decisions.
## **Scheme of Delegation**
A schedule of delegated authority, set by the Board of Trustees, governs the extent to which policy decisions, contracts, purchasing, salaries, payments and other key business decisions can be made by the Senior Leadership Team and Managers, including controls for very high level decisions around cash management and investments where the Board itself has ultimate control the schedule of delegated authority was updated and approved by the board of trustees in October 2021.
## **Regulation**
The charity is regulated by the Charity Commission as a registered charity and by the Gambling Commission for its lottery and raffle activities. The charity has also paid its voluntary levy to the Fundraising Regulator.
The Charity is also registered with the Information Commissioners Office and complies with the Data Protection Act 2018.
Page 19
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **RISK MANAGEMENT**
The Trustees have assessed the major risks to which the Charity and the group is exposed. In particular who is related to the operations and finances of the Charity and the group and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Cornwall Air Ambulance Trust operates a Board level Risk and Audit Committee, which meets four times a \HDU DQG UHSRUWV WR WKH %RDUG RI 7UXVWHHV 5LVN PDQDJHPHQW LV D IXQGDPHQWDO HOHPHQW RI WKH &KDULW\¶V business strategy on all levels and encompasses different types of risk. It is therefore an integral part of the business planning and controlling processes.
The Committee has responsibility for ensuring the adequacy of risk management, internal control and governance arrangements on the implementation of a strategic plan and policies of the Charity. It is also responsible for reviewing the integrity of the annual report and financial statements.
Following the annual review of recent uncertainties, the major risks currently facing the charity have been identified as:
**----- Start of picture text -----**
Nature of Risk Mitigation
Transitioning the helicopter serving and Continued rectification meetings and a
engineering support contract from SAS to dedicated contract manager. A planned
Castle Air and keeping the required standard of rationalisation of the contract once areas of
services delivery. improvement are fully identified. Three month
notice period.
Loss of key members of staff/ volunteers. Recruitment of retail staff currently challenging
and may impact retails performance during
2022. Recruitment/ trawl is ongoing for the
current vacant retail positions. Limited
resilience in many key areas would exacerbate
any further vacancies. Review working culture,
creation of the Culture Committee.
Resilience of Key Positions and Staff in general Clearer strategy and target with an
understanding of the resources needed to
achieve this
Poor availability of CRWL Severe corrosion plan implemented, Back up
helicopter (AW109) provided as part of the
service contract.
Limited capability of backup helicopter )XWXUH ³VSDUH´ KHOLFRSWHU RSWLRQ EHLQJ H[SORUHG
with other Air Ambulances and helicopter
manufacturers
**----- End of picture text -----**
All risks identified by the charity, including the above major risks are continuously monitored and significant management time is invested in mitigating these risks to minimize the probability of occurrence and potential impact on the Charity if they were to occur.
## **Pay Policy**
The success of the Charity is largely dependent on its ability to attract and retain talented staff, with appropriate skills, who share its core values and passion for the cause of saving lives. The Charity is therefore committed to investing in its people, both from a remuneration perspective and in terms of their professional and personal development.
Page 20
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
7KH &KDULW\¶V UHPXQHUDWLRQ SROLF\ DLPV WR HQVXUH WKDW VDODULHV UHIOHFW WKH NQRZOHGJH VNLOOV UHVSRQVLELOLWLHV and personal competencies required for the satisfactory performance of each role. Salaries are reviewed annually and benchmarked against the charity sector locally and regionally.
We want to attract and retain the very best talent - creating clear career pathways for our staff teams who are vital to ensuring we can operate to the highest standards.
Recruiting in some areas of the charity team has proven difficult at times, since Cornwall has traditionally had lower salaries than in other parts of the UK and the demand for some skillsets has been high.
Following on from a pay review in early 2022, the board agreed to adopt the Real Living Wage foundation commitment to paying staff equitably.
± We will also be creating one pay scale for both our retail and headquartered based staff to encourage development between different areas of the organisation.
We continue to benchmark our salaries against similar organisations both in terms of geography and type.
Salaries of the Leadership Team, including the Chief Executive Officer are reviewed annually, based on performance, by the Remuneration Committee before being ratified by the Board of Trustees.
## **Senior Executive Pay Disclosure**
The charity acknowledges the recommendations of the Report of the Inquiry into Charity Senior Executive Pay and Guidance for Trustees on Setting Remuneration by the UK National Council for Voluntary Organisations (NCVO). The inquiry advocates greater transparency and the Charity recognises and accepts those recommendations. As a result, the Charity provides details of the number of staff whose remuneration is £60,000 or more, in salary bands of £10,000, publishes its Pay Policy and utilises ratios to help determine senior executive pay.
The Charity is committed to openness and transparency on senior pay and will continue to keep this under review.
## **Funds held as custodian**
There are no funds held by the Charity on behalf of another charity or project.
## **Chairman: Mr M P Carne CBE**
Date: 23rd September 2022
Page 21
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **75867((6¶ 5(3257 (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- x select suitable accounting policies and then apply them consistently;
- x observe the methods and principles of the Charities SORP (FRS 102);
- x make judgments and accounting estimates that are reasonable and prudent;
- x state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- x prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- x so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- x that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
## **Auditors**
The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
7KH 7UXVWHHV¶ 5HSRUW LQFRUSRUDWLQJ D VWUDWHJLF UHSRUW ZDV DSSURYHG E\ RUGHU RI WKH %RDUG RI 7UXVWHHV, as the Company directors, and signed on its behalf by:
## **Chairman: Mr M P Carne CBE**
Date: 23rd September 2022
Page 22
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL AIR AMBULANCE TRUST**
## **OPINION**
We have audited the financial statements of Cornwall Air Ambulance Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 23
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL AIR AMBULANCE TRUST (CONTINUED)**
## **OTHER INFORMATION**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.
## **OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Page 24
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL AIR AMBULANCE TRUST (CONTINUED)**
## **AUDITORS' 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 Auditors' 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:
- The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows:
- We have considered the nature of the industry and sector, control environment and business performance;
- We have considered the results of our enquiries of management and the the Board about their own identification and assessment of the risk of irregularities;
- For any matters identified we have obtained and reviewed the parent charitable company's documentation of their policies and procedures relating to;
- Identifying, evaluating and complying with laws and regulations whether they were aware of any instances of non-compliance;
- Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected or alleged fraud; and
- The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
- We have considered the matters discussed among the audit engagement team, including internal tax specialists regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Charitable Group and Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities SORP (FRS 102) - Accounting and Reporting by Charities and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charitable Group and Company's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations, aviation law, lottery regulations, fundraising laws and employment legislation.
## Audit response to risks identified
As a result of performing the above procedures, we have completeness and cut-off of revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
- Documenting and validating the control environment for income and debtors and carrying out walkthrough testing;
- Undertaking substantive sample-based testing or proof in total calculations on all material revenue streams to ensure revenue has been recognised appropriately and accurately;
Page 25
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL AIR AMBULANCE TRUST (CONTINUED)**
- Considering manual income journals as part of our work on fraud risks documented above;
- Reviewing the financial statement disclosures and testing to supporting documentation;
- Enquiring of management concerning actual and potential litigation claims;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement;
- Reading minutes of meetings of those charged with governance; and
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 Auditors' Report.
## **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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Alison Oliver FCA (Senior statutory auditor)**
for and on behalf of
**Bishop Fleming LLP** Chartered Accountants Statutory Auditors Chy Nyverow Newham Road Truro Cornwall TR1 2DP
Date: 7th October 2022
Page 26
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
**Total income**
**Expenditure on:**
Raising funds
8
Charitable activities
9
**Total expenditure**
**Net income/(expenditure) before net**
**gains on investments**
Unrealised net gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**5,404,941**
**21,250**
**871,031**
**94,958**
**6,392,180**
**1,197,755**
**4,101,334**
**5,299,089**
**1,093,091**
**319,742**
**1,412,833**
**15,441,444**
**1,412,833**
**16,854,277**|**Restricted**
**funds**
**2021**
**£**
**98,826**
**-**
**-**
**-**
**98,826**
**-**
**143,407**
**143,407**
**(44,581)**
**-**
**(44,581)**
**2,557,190**
**(44,581)**
**2,512,609**|**Total**
**funds**
**2021**
**£**
**5,503,767**
**21,250**
**871,031**
**94,958**
**6,491,006**
**1,197,755**
**4,244,741**
**5,442,496**
**1,048,510**
**319,742**
**1,368,252**
**17,998,634**
**1,368,252**
**19,366,886**|Total
funds
2020
£
7,457,774
16,398
694,253
62,219
8,230,644|
|---|---|---|---|---|
|||||1,414,630
3,029,573
4,444,203|
|||||3,786,441
241,220
4,027,661|
|||||13,970,973
4,027,661
17,998,634|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 31 to 54 form part of these financial statements.
Page 27
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:07085879**
## **CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds:
Restricted funds
20
Restricted fixed assets funds
20
Total restricted funds
20
Unrestricted funds
20
**Total funds**|**23,381**
**395,444**
**6,449,941**
**6,868,766**
**(1,289,708)**
**1,737**
**2,510,872**|**2021**
**£**
**10,209,934**
**3,577,894**
**13,787,828**
**5,579,058**
**19,366,886**
**2,512,609**
**16,854,277**
**19,366,886**|7,581
2,770,682
2,570,640
5,348,903
(924,268)
3,850
2,553,340|2020
£
10,315,099
3,258,900|
|---|---|---|---|---|
|||||13,573,999
4,424,635|
|||||17,998,634|
|||||2,557,190
15,441,444|
|||||17,998,634|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ ................................................ **Mr M P Carne CBE Mr N Lentern** Chairman Trustee
> Date: 23rd September 2022
The notes on pages 31 to 54 form part of these financial statements.
Page 28
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:07085879**
## **CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds
20
Unrestricted funds
20
**Total funds**|**23,381**
**427,891**
**6,409,527**
**6,860,799**
**(1,281,742)**|**2021**
**£**
**10,209,934**
**3,577,895**
**13,787,829**
**5,579,057**
**19,366,886**
**2,726,127**
**16,640,759**
**19,366,886**|7,581
2,801,092
2,527,487
5,336,160
(911,526)|2020
£
10,315,099
3,258,901|
|---|---|---|---|---|
|||||13,574,000
4,424,634|
|||||17,998,634|
|||||2,557,190
15,441,444|
|||||17,998,634|
The Charity's net movement in funds for the year was £1,368,252 (2020 - £4,027,661).
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
**Mr M P Carne CBE** Chairman
................................................ **Mr N Lentern** Trustee
> Date: 23rd September 2022
The notes on pages 31 to 54 form part of these financial statements.
Page 29
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Cash flows from operating activities**
Net cash from operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from the sale of intangible assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
**Net cash used in investing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 31 to 54 form part of these financial statements|**2021**
**£**
**4,123,473**
**94,958**
**-**
**(339,130)**
**6**
**(6)**
**(244,172)**
**-**
**3,879,301**
**2,570,640**
**6,449,941**|2020
£
1,809,055
62,219
3,000
(347,265)
3,028,970
(3,033,649)
**(286,725)**
**-**
**1,522,330**
1,048,310
2,570,640|
|---|---|---|
Page 30
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. GENERAL INFORMATION**
The Charity is incorporated as a Company limited by guarantee and does not have share capital. In the event of the Company being wound up each member is liable to contribute a sum not exceeding £10 towards the debts and liabilities of the company and the costs, charges and expenses of winding up. The company is incorporated in England and Wales. The registered number and office is as stated on page 1.
## **2. ACCOUNTING POLICIES**
## **2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cornwall Air Ambulance Trust 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.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
## **2.2 INCOME**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Consolidated Statement of Financial Activities on an entitlement basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 31
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.3 EXPENDITURE**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
## **2.4 GOVERNMENT GRANTS**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.
## **2.5 INTEREST RECEIVABLE**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
|Freehold land|- no depreciation is charged|
|---|---|
|Operations facility|- over 50 years|
|Short leasehold improvements|- over 10 years|
|Motor vehicles|- 25% per annum on the reducing balance|
||method|
|Shop fixtures and fittings|- over 3 years|
|Equipment (including Aircraft|- over 3 or 5 years as appropriate|
|specialist equipment)||
|Helicopter|- over 20 years to 30% of residual value|
Page 32
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.7 INVESTMENTS**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.8 STOCKS**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.9 DEBTORS**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 CASH AT BANK AND IN HAND**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 LIABILITIES AND PROVISIONS**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.
## **2.12 FINANCIAL INSTRUMENTS**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. 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.
## **2.13 PENSIONS**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
Page 33
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.14 FUND ACCOUNTING**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT**
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.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Legacy income may require management judgement in respect of associated timing of revenue recognition and estimation of the income. Legacy income is considered on a case by case basis.
Page 34
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **4. INCOME FROM DONATIONS AND LEGACIES**
|**Unrestricted**
**funds**
**2021**
**£**
Donations
1,299,037
Legacies
2,387,376
Grants
124,772
COVID-19 Grant
-
Lottery
1,593,756
5,404,941
TOTAL 2020
6,995,983|**Restricted**
**funds**
**2021**
**£**
-
-
5,647
25,215
-
30,862
461,791|**Restricted**
**Fixed Asset**
**funds**
**2021**
**£**
-
-
67,964
-
-
67,964
-|**Total**
**funds**
**2021**
**£**
**1,299,037**
**2,387,376**
**198,383**
**25,215**
**1,593,756**
**5,503,767**
7,457,774|Total
funds
2020
£
1,233,703
3,686,582
797,978
146,193
1,593,318
7,457,774|
|---|---|---|---|---|
||||||
## **5. INCOME FROM CHARITABLE ACTIVITIES**
|**Unrestricted**
**funds**
**2021**
**£**
Air Ambulance service
21,250
TOTAL 2020
12,750|**Restricted**
**funds**
**2021**
**£**
-
3,648|**Total**
**funds**
**2021**
**£**
**21,250**
16,398|Total
funds
2020
£
16,398|
|---|---|---|---|
|||||
Page 35
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **6. INCOME FROM OTHER TRADING ACTIVITIES**
## **Income from fundraising events**
|**Unrestricted**
**funds**
**2021**
**£**
Charity shop sales & other income
843,239
Income generated by subsidiary
27,792
**TOTAL 2021**
871,031
TOTAL 2020
574,648|**Restricted**
**funds**
**2021**
**£**
-
-
-
119,605|**Total**
**funds**
**2021**
**£**
**843,239**
**27,792**
**871,031**
694,253|Total
funds
2020
£
668,045
26,208
694,253|
|---|---|---|---|
|||||
## **7. INVESTMENT INCOME**
|**Unrestricted**
**funds**
**2021**
**£**
Investment income
94,958
Investment income - local cash
-
94,958
TOTAL 2020
62,219|**Total**
**funds**
**2021**
**£**
**94,958**
**-**
**94,958**
62,219|Total
funds
2020
£
61,734
485
62,219|
|---|---|---|
||||
Page 36
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **8. EXPENDITURE ON RAISING FUNDS**
## **COSTS OF RAISING VOLUNTARY INCOME**
|**Unrestricted**
**funds**
**2021**
**£**
Donations, fundraising & events
388,348
Legacies
47,034
Lottery management & development costs
231,267
Retail expenses & purchases for resale
538,266
Investment management costs
(8,975)
Expenditure incurred by subsidiary
1,815
1,197,755
TOTAL 2020
1,406,917|**Restricted**
**funds**
**2021**
**£**
-
-
-
-
-
-
-
7,713|**Total**
**funds**
**2021**
**£**
**388,348**
**47,034**
**231,267**
**538,266**
**(8,975)**
**1,815**
**1,197,755**
1,414,630|Total
funds
2020
£
536,882
42,875
333,659
493,640
4,636
2,938
1,414,630|
|---|---|---|---|
|||||
## **9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2021**
**£**
Provision of air ambulance service
4,101,334
TOTAL 2020
2,761,396|**Restricted**
**funds**
**2021**
**£**
143,407
268,177|**Total**
**funds**
**2021**
**£**
**4,244,741**
3,029,573|Total
funds
2020
£
3,029,573|
|---|---|---|---|
|||||
Page 37
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES**
|Provision of air ambulance service
TOTAL 2020
**ANALYSIS OF SUPPORT COSTS**
Staff costs
Marketing
Insurance
Property Costs
Repairs & Maintenance
Staff Expenses
Office Expenses
Bank Fees
Legal & Professional
Profit on disposal of assets
Governance Costs
**TOTAL 2021**
TOTAL 2020|**Activities**
**undertaken**
**directly**
**2021**
**£**
3,148,396
2,174,978|**Support**
**costs**
**2021**
**£**
1,096,345
854,595
**Provision of**
**air**
**ambulance**
**2021**
**£**
415,344
172,758
125,814
61,380
54,583
69,035
46,187
50,976
81,903
(135)
18,500
1,096,345
854,595|**Total**
**funds**
**2021**
**£**
**4,244,741**
3,029,573
**Total**
**funds**
**2021**
**£**
**415,344**
**172,758**
**125,814**
**61,380**
**54,583**
**69,035**
**46,187**
**50,976**
**81,903**
**(135)**
**18,500**
**1,096,345**
854,595|Total
funds
2020
£
3,029,573
Total
funds
2020
£
317,117
155,306
38,380
109,299
39,615
58,191
39,064
40,068
58,002
(447)
-
854,595|
|---|---|---|---|---|
Page 38
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. AUDITORS' REMUNERATION**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**17,750**|16,000|
|Fees payable to the Charity's auditor in respect of:|||
|All taxation advisory services not included above|**750**|750|
## **12. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|**Group**
**2021**
**£**
**943,229**
**82,297**
**58,390**
**1,083,916**|Group
2020
£
1,026,163
89,378
54,314
1,169,855|**Charity**
**2021**
**£**
**943,229**
**82,297**
**58,390**
**1,083,916**|Charity
2020
£
1,026,163
89,378
54,314
1,169,855|
|---|---|---|---|---|
The total amounts of redundancy payments in the year was £nil (2020: £17,178), with no balances due at the year end.
The average number of persons employed by the Charity during the year was as follows:
|**Group**
Group
**2021**
2020
**No.**
No.
Average headcount number of staff employed
**34**
39
The average headcount expressed as full time equivalent was:
**Group**
Group
**2021**
2020
Administration
**5**
4
Charity shops
**14**
16
Fundraising
**7**
10
Marketing
**4**
3
Senior leadership team
**2**
3
Volunteer department
**1**
1
Operations (Pilots and Patient Liason)
**1**
-
**34**
37|**Charity**
**2021**
**No.**
**34**
**Charity**
**2021**
**5**
**14**
**7**
**4**
**2**
**1**
**1**
**34**|Charity
2020
No.
39|
|---|---|---|
|||Charity
2020
4
16
10
3
3
1
-|
|||37|
Page 39
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **12. STAFF COSTS (CONTINUED)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|Group|
|---|---|---|---|
|||**2021**|2020|
|In the band £60,001|- £70,000|**-**|1|
|In the band £70,001|- £80,000|**1**|1|
The Charity considered it's key management personnel in the year to comprise the Trustees and the senior leadership team as disclosed on page 1.
The total employment benefits including employer pension contributions of the key management personnel were £139,577 (2020: £222,587).
## **13. TRUSTEES' REMUNERATION AND EXPENSES**
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 December 2021, expenses totalling £0 were reimbursed or paid directly to Trustees (2020 - £NIL to 0 Trustees).
Page 40
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **14. TANGIBLE FIXED ASSETS**
## **GROUP AND CHARITY**
|**COST OR VALUATION**
At 1 January 2021
Additions
At 31 December 2021
**DEPRECIATION**
At 1 January 2021
Charge for the year
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|**Freehold**
**property**
**£**
**3,322,011**
**54,645**
**3,376,656**
**584,497**
**66,525**
**651,022**
**2,725,634**
2,737,514|**Short-term**
**leasehold**
**property**
**Air**
**Ambulance**
**helicopter**
**£**
**£**
**30,376**
**7,574,267**
**26,989**
**-**
**57,365**
**7,574,267**
**21,980**
**198,824**
**11,223**
**265,100**
**33,203**
**463,924**
**24,162**
**7,110,343**
8,396
7,375,443|**Motor**
**vehicles**
**£**
**188,447**
**126,878**
**315,325**
**133,005**
**23,230**
**156,235**
**159,090**
55,442|**Fixtures**
**and**
**fittings Equipment**
**£**
**£**
**91,279**
**1,026,062 **
**12,150**
**118,468**
**103,429**
**1,144,530**
**77,612**
**901,425**
**8,673**
**69,544**
**86,285**
**970,969**
**17,144**
**173,561**
13,667
124,637|**Total**
**£**
**12,232,442**
**339,130**
**12,571,572**|
|---|---|---|---|---|---|
||||||**1,917,343**
**444,295**
**2,361,638**|
||||||**10,209,934**|
||||||10,315,099|
Included in land and buildings is freehold land at cost of £268,540 (2020: £268,540) which is not depreciated.
Page 41
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15. FIXED ASSET INVESTMENTS**
|**GROUP AND CHARITY**
**COST OR VALUATION**
At 1 January 2021
Additions
Disposals
Revaluations
AT 31 DECEMBER 2021
**NET BOOK VALUE**
AT 31 DECEMBER 2021
AT 31 DECEMBER 2020|**Listed**
**investments**
**£**
**3,258,899**
**6**
**(6)**
**318,995**
**3,577,894**
**3,577,894**
3,258,899|
|---|---|
Page 42
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **16. Principal subsidiary**
The following was a subsidiary undertaking of the Charity:
**Name Company Registered office or principal Principal activity Class of Holding Included in number place of business shares consolidation** CAAT Trading Limited 10227352 Cornwall Air Ambulance Trust, To enter into Ordinary 100% Yes Trevithick Downs, Newquay, commercial Cornwall, TR8 4DY arrangements to raise funds for its parent charity.
The financial results of the subsidiary for the year were:
**Name** CAAT Trading Limited
**Income Expenditure Profit for £ £ the year before gift aid to parent £ 31,792 1,814 29,977**
Page 43
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**17.**
**STOCKS**
**Group**
Group
**2021**
2020
**£**
£
Finished goods and goods for resale
**23,381**
7,581
**18.**
**DEBTORS**
**Group**
Group
**2021**
2020
**£**
£
**DUE WITHIN ONE YEAR**
Trade debtors
**62,193**
14,451
Amounts owed by group undertakings
**-**
-
Other debtors
**91,817**
26,462
Prepayments and accrued income
**241,434**
2,729,769
**395,444**
2,770,682
**19.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**Group**
Group
**2021**
2020
**£**
£
Payments received on account
**149,392**
185,772
Trade creditors
**869,854**
493,238
Other taxation and social security
**45,241**
26,362
Other creditors
**8,931**
6,039
Accruals and deferred income
**216,290**
212,857
**1,289,708**
924,268|**Charity**
**2021**
**£**
**23,381**
**Charity**
**2021**
**£**
**62,193**
**34,977**
**89,287**
**241,434**
**427,891**
**Charity**
**2021**
**£**
**149,392**
**869,839**
**45,241**
**8,931**
**208,339**
**1,281,742**|Charity
2020
£
7,581|
|---|---|---|
|||Charity
2020
£
14,451
33,028
23,972
2,729,641|
|||2,801,092|
|||Charity
2020
£
185,772
493,238
26,362
6,039
200,115|
|||911,526|
Page 44
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20. STATEMENT OF FUNDS**
## **STATEMENT OF FUNDS - CURRENT YEAR**
|**Balance at 1**
**January**
**2021**
**£**
**UNRESTRICTED**
**FUNDS**
**DESIGNATED**
**FUNDS**
Helicopter
replacement
**198,824**
Helicopter
purchase
retention
**340,280**
NBV of
unrestricted
funded assets
**1,846,868**
NBV of Air
Ambulance
(unrestricted
element)
**5,914,818**
Future
Development &
Investments
**2,700,000**
**11,000,790**
**GENERAL FUNDS**
General funds
**4,440,654**
**TOTAL**
**UNRESTRICTED**
**FUNDS**
**15,441,444**
**RESTRICTED**
**FUNDS**
Other restricted
funds
**3,850**
CJRS grants
**-**
**3,850**|**Income**
**£**
**Expenditure**
**£**
**-**
**-**
**-**
**-**
**-**
**(121,261)**
**-**
**(212,600)**
**-**
**-**
**-**
**(333,861)**
**6,392,180**
**(4,965,228)**
**6,392,180**
**(5,299,089)**
**5,647**
**(7,760)**
**25,215**
**(25,215)**
**30,862**
**(32,975)**|**Transfers**
**in/out**
**£**
**265,100**
**-**
**-**
**-**
**-**
**265,100**
**(265,100)**
**-**
**-**
**-**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**319,742**
**319,742**
**-**
**-**
**-**|**Balance at**
**31**
**December**
**2021**
**£**
**463,924**
**340,280**
**1,725,607**
**5,702,218**
**2,700,000**
**10,932,029**|
|---|---|---|---|---|
|||||**5,922,248**|
|||||**16,854,277**|
|||||**1,737**
**-**
**1,737**|
Page 45
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20. STATEMENT OF FUNDS (CONTINUED)**
|**CAPITAL**
**RESTRICTED**
**FUNDS**
Helicopter AW169
- DCMS (LIBOR)
Helicopter AW169
- (DHSC)
Airbase
construction
(SWRDA)
Annex (LIBOR)
Welfare & Pastoral
Facilities -
(DCMS)
Other restricted
funds
Rapid Reponse
Cars
**TOTAL**
**RESTRICTED**
**FUNDS**
**TOTAL OF**
**FUNDS**|**Balance at 1**
**January**
**2021**
**£**
**973,750**
**486,875**
**820,404**
**215,538**
**36,008**
**20,765**
**-**
**2,553,340**
**2,557,190**
**17,998,634**|**Income**
**£**
**-**
**-**
**-**
**-**
**-**
**7,964**
**60,000**
**67,964**
**98,826**
**6,491,006**|**Expenditure**
**£**
**(17,500)**
**(35,000)**
**(18,963)**
**(5,406)**
**(3,968)**
**(13,224)**
**(16,371)**
**(110,432)**
**(143,407)**
**(5,442,496)**|**Transfers**
**in/out**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**319,742**|**Balance at**
**31**
**December**
**2021**
**£**
**956,250**
**451,875**
**801,441**
**210,132**
**32,040**
**15,505**
**43,629**
**2,510,872**|
|---|---|---|---|---|---|---|
|||||||**2,512,609**|
|||||||**19,366,886**|
Page 46
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR**
|**UNRESTRICTED**
**FUNDS**
**DESIGNATED**
**FUNDS**
Helicopter
replacement
Helicopter
purchase
retention
NBV of
unrestricted
funded assets
NBV of Air
Ambulance
(unrestricted
element)
Future
Development &
Investments
**GENERAL FUNDS**
General funds
**TOTAL**
**UNRESTRICTED**
**FUNDS**|Balance at
1 January
2020
£
-
510,500
7,755,683
-
-
8,266,183
Balance at
1 January
2020
£
3,090,382
11,356,565|Income
£
-
-
-
-
-
-
Income
£
7,645,600
7,645,600|Expenditure
£
-
-
(167,015)
(159,449)
-
(326,464)
Expenditure
£
(3,841,849)
(4,168,313)|Transfers
in/out
£
198,824
(170,220)
(5,741,800)
6,074,267
2,700,000
3,061,071
Transfers
in/out
£
(2,694,699)
366,372|Gains/
(Losses)
£
-
-
-
-
-
-
Gains/
(Losses)
£
241,220
241,220|Balance at
31
December
2020
£
198,824
340,280
1,846,868
5,914,818
2,700,000
11,000,790|
|---|---|---|---|---|---|---|
|||||||Balance at
31
December
2020
£
4,440,654
15,441,444|
Page 47
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20. STATEMENT OF FUNDS (CONTINUED)**
|**RESTRICTED**
**FUNDS**
Heli Appeal
Other restricted
funds
CJRS grants
**CAPITAL**
**RESTRICTED**
**FUNDS**
Helicopter AW169
- DCMS (LIBOR)
Helicopter AW169
- (DHSC)
Airbase
construction
(SWRDA)
Annex (LIBOR)
Welfare & Pastoral
Facilities -
(DCMS)
Other restricted
funds
**TOTAL**
**RESTRICTED**
**FUNDS**
**TOTAL OF**
**FUNDS**|Balance at
1 January
2020
£
-
-
-
-
1,000,000
500,000
839,367
220,898
39,976
14,167
2,614,408
2,614,408
13,970,973|Income
£
431,353
3,850
146,193
581,396
-
-
-
-
-
3,648
3,648
585,044
8,230,644|Expenditure
£
(53,831)
-
(146,193)
(200,024)
(26,250)
(13,125)
(18,963)
(5,360)
(3,968)
(8,200)
(75,866)
(275,890)
(4,444,203)|Transfers
in/out
£
(377,522)
-
-
(377,522)
-
-
-
-
-
11,150
11,150
(366,372)
-|Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
241,220|Balance at
31
December
2020
£
-
3,850
-
3,850|
|---|---|---|---|---|---|---|
|||||||973,750
486,875
820,404
215,538
36,008
20,765
2,553,340|
|||||||2,557,190|
|||||||17,998,634|
Page 48
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21. Transfer between funds**
The transfers between funds during the year relate to the designation of funds in accordance with the Helicopter Relacement Fund referenced in note 22.
## **22. Designated funds**
## Helicopter Replacement Fund
This fund was established to hold funds for the replacement of the air ambulance helicopter. The Trustees agreed to transfer the depreciation of the helicopter into this fund annually. Noting that the new helicopter is expected to be in operation for the next 19 years.
## Helicopter Purchase Retention
This fund holds the remaining balance of the Helicopter Purchase, £340,280 (€400,000 at an exchange rate of 0.8507). This is held pending completion of the installation of Retractable Slump Pads (part of the original aircraft specification) which will be undertaken in 2022.
## Net Book Value of Air Ambulance (Unrestricted Element)
This fund was established to recognise the net book value of the unrestricted element of the new AW169 helicopter as a fixed asset held by the charity funded by unrestricted funds and from fund whose restriction ended upon the acquisition of the asset.
## Net Book Value of Unrestricted Funded Assets
This fund recognises the net book value of fixed assets held by the charity (excluding the AW169 helicopter) funded by unrestricted funds or from funds whose restriction end upon the acquisition of the asset, and that consequently cannot be easily converted into cash.
## **23. Restricted funds**
## Heli Appeal
All funds from the Heli Appeal have been transferred to complete the purchase of the new AW169 Helicopter.
## Helicopter AW169 – DCMS (LIBOR)
This Helicopter fund of £1M made up of £162,500 of funding received during 2018 and a further £837,500 received in 2019 from the Department for Culture, Media & Sport, towards the cost of the new helicopter purchase.
## Helicopter AW169 - DHSC
This fund reflect the £500,000 received in 2019 from the Department of Health and Care towards the new helicopter purchase.
## Airbase Contraction (SWRDA)
This fund represents grant awarded given by South West Regional Development Agency towards the cost of construction of the air ambulance operations facility and head office.
## Annexe (LIBOR)
The annexe fund represents monies received from HM Treasury from LIBOR bank fines. The money was given to build an annexe to develop the airbase facilities.
## Welfare & Pastoral Facilities (DCMS)
The fund represents the grant funding using to develop facilities to support the welfare of the air ambulance crews.
Page 49
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## Other restricted funds
Other restricted funds represent grants and restricted donations predominantly for the purchase of medical and operational equipment.
## Rapid Response Cars
The fund represents the proportion of restricted grant funding towards the purchase of two rapid reponse cars for the Trust's use. The Trust purchased two Volvo V90 cars in 2021.
## CJRS Grants
CJRS grants relates to the government furlough support scheme. These funds could only be used on staff costs.
## **24. SUMMARY OF FUNDS**
## **SUMMARY OF FUNDS - CURRENT YEAR**
|||||||||||||**Balance at**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Balance at 1**|||||||||||**31**|
||**January**|||||||**Transfers**||**Gains/**||**December**|
||**2021**||**Income**||**Expenditure**|||**in/out**||**(Losses)**||**2021**|
||**£**||**£**|||**£**||**£**||**£**||**£**|
|Designated|||||||||||||
|funds|**11,000,790**||**-**|||**(333,861)**||**265,100**||**-**||**10,932,029**|
|General funds|**4,440,654**||**6,392,180**|||**(4,965,228)**||**(265,100)**||**319,742**||**5,922,248**|
|Restricted funds|**3,850**||**30,862**|||**(32,975)**||**-**||**-**||**1,737**|
|Restricted funds|||||||||||||
|- Class II|**2,553,340**||**67,964**|||**(110,432)**||**-**||**-**||**2,510,872**|
||**17,998,634**||**6,491,006**|||**(5,442,496)**||**-**||**319,742**||**19,366,886**|
||||||||||||||
|**SUMMARY OF FUNDS - PRIOR**|||**YEAR**||||||||||
|||||||||||||Balance at|
||Balance at|||||||||||31|
||1 January|||||||Transfers||Gains/||December|
||2020||Income|||Expenditure||in/out||(Losses)||2020|
||£||£|||£||£||£||£|
|Designated|||||||||||||
|funds|8,266,183||-|||(326,464)||3,061,071||-||11,000,790|
|General funds|3,090,382||7,645,600|||(3,841,849)||(2,694,699)||241,220||4,440,654|
|Restricted funds|-||581,396|||(200,024)||(377,522)||-||3,850|
|Restricted funds|||||||||||||
|- Class II|2,614,408||3,648|||(75,866)||11,150||-||2,553,340|
||13,970,973||8,230,644|||(4,444,203)||-||241,220||17,998,634|
||||||||||||||
Page 50
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **25. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
7,699,062
Fixed asset investments
3,577,894
Current assets
6,867,029
Creditors due within one year
(1,289,708)
**TOTAL**
16,854,277|**Restricted**
**funds**
**2021**
**£**
-
-
1,737
-
1,737|**Restricted**
**Fixed Asset**
**funds**
**2021**
**£**
2,510,872
-
-
-
2,510,872|**Total**
**funds**
**2021**
**£**
**10,209,934**
**3,577,894**
**6,868,766**
**(1,289,708)**
**19,366,886**|
|---|---|---|---|
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**TOTAL**|Unrestricted
funds
2020
£
7,761,759
3,258,900
5,345,053
(924,268)
15,441,444|Restricted
funds
2020
£
-
-
3,850
-
3,850|Restricted
Fixed Asset
funds
2020
£
2,553,340
-
-
-
2,553,340|Total
funds
2020
£
10,315,099
3,258,900
5,348,903
(924,268)
17,998,634|
|---|---|---|---|---|
Page 51
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**26.**
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW**
**ACTIVITIES**
Net income for the year (as per Statement of Financial Activities)
**ADJUSTMENTS FOR:**
Depreciation charges
Amortisation charges
Losses on investments
Loss on the sale of fixed assets
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Interest and rents from investments
**NET CASH PROVIDED BY OPERATING ACTIVITIES**
**27.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash in hand
**28.**
**ANALYSIS OF CHANGES IN NET DEBT**
**At 1**
**January**
**2021**
**£**
Cash at bank and in hand
**2,570,640**
**2,570,640**|**FROM OPERATING**
**Group**
Group
**2021**
2020
**£**
£
**1,368,252**
4,027,661
**444,295**
365,475
**-**
33,685
**(323,482)**
(236,248)
**-**
173
**(15,799)**
(2,069)
**2,373,290**
(2,167,513)
**371,875**
(149,890)
**(94,958)**
(62,219)
**4,123,473**
1,809,055
**Group**
Group
**2021**
2020
**£**
£
**6,449,941**
2,570,640
**Cash flows**
**At 31**
**December**
**2021**
**£**
**£**
**3,879,301**
**6,449,941**
**3,879,301**
**6,449,941**|
|---|---|
Page 52
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **29. CONTINGENT LIABILITIES**
During the year, an employment tribunal case has been raised against the Charity. At the date of this report, the likely outcome nor financial impact on the Charity cannot be reliably estimated. As such, no provision has been made in the financial statements.
## **30. CAPITAL COMMITMENTS**
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**£**|£|**£**|£|
|**CONTRACTED FOR BUT NOT PROVIDED**|||||
|**IN THESE FINANCIAL STATEMENTS**|||||
|Acquisition of intangible assets|**892,131**|-|**892,131**|-|
## **31. PENSION COMMITMENTS**
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £58,390 (2020: £54,314). £8,806 (2020: £5,917) was payable to the fund at the balance sheet date.
## **32. OPERATING LEASE COMMITMENTS**
At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**Group**
**2021**
**£**
**126,537**
**226,990**
**-**
**353,527**|Group
2020
£
127,000
195,000
7,375
329,375|**Charity**
**2021**
**£**
**126,537**
**226,990**
**-**
**353,527**|Charity
2020
£
127,000
195,000
7,375|
|---|---|---|---|---|
|||||329,375|
## **33. OTHER FINANCIAL COMMITMENTS**
During the year the Charity has entered into a financial commitment under a contract for the provision of helicopter services from Castle Air Limited which commenced in June 2021 for a new Air Ambulance for a term of 10 years. The minimum amount payable in during the next 12 months under the contract terms is £1,159,882.
Page 53
**CORNWALL AIR AMBULANCE TRUST (A COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **34. MEMBERS' LIABILITY**
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
## **35. RELATED PARTY TRANSACTIONS**
During the year the Charity received donations of £30,535 (2020: £4,716) from First Air Ambulance Service Trust, a Charity with Trustees in common. At the year end, a balance of £Nil was receivable from this Charity (2020: £NIL).
The consolidated financial statements of Cornwall Air Ambulance Trust have taken advantage of the exemption in Financial Reporting Standard 102 Section 33.1A in not disclosing intra group transactions with 100% owned subsidiaries.
Page 54