Charity number.. 299000 FIRST AIR AMBULANCE SERVICES TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Bishop Fleming FIRST AIR AMBULANCE SERVICES TRUST CONTENTS Page Rèference and administrative details of thè charity, its Trustees and advisers Trustees. rgPQrt Independent auditors. report on the financial statements Statement of flnanclal adlvitie$ 10 Balance sheet Notes to the financial staternents 12-17 FIRST AIR AMBULANCE SERVICES TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees Mr M M P Carne CBE, Chairman Mr C C Pomfret Iresigned 26 July 20221 Mr R R Cowie, Chairman of Finance Commitiee Mrs B A Sharples Iresigned 26 July 20221 Mr B S Mark, Chaimian Risk and Audit Committee Mr S Carr Mr D Scott M5 D Griffith Ms L A M¢Kay Mr N Lenlern Charity registered number 299000 Princlpal office Comwall Air Ambulance Trust Trevilhick Downs Newquay Cornwall TR8 4DY Independent auditors 8ishop Fleming LLP Chartered Accountants stalulory Auditors Chy Nyverow Newham Road Truro Cornwall TR1 2DP Bankers HSBC plc 17 Boscawen Street Truro Cornwall TR1 2QZ Solicito Stephens Scown Osprey House Malpas Road Truro Cornwall TR1 1UT Page 1 FIRST AIR AMBULANCE SERVICES TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees present their annual report together with the audil&d financial statements of the Charty for the year 1 January 2022 to 31 December 2022. The Charity also trades under the name Comwall Air Ambulance Trust. Objectives and activitias a. Policies and obje¢tÈves To relieve sickness in the county of Cornwall and the Isles of Scilty by assisting in the provision of an Air Ambulance Service. b. Activitie5 undèrtaken to achieve objectlv&s On 1 sl January 2010 the aclivilies of the First Air Ambulance servi￿ Trust IFAASTI were assumed by 8 new charity. Cornwall Air Ambulance Trust ICAATI a company limited by guarantee, and substantially all of the assets of FAAST were transferred to CAAT under a deed dated 15th February 2010. FAAST has remained Open lo recÈiv& any residual donations and legacies. It was othen￿lSe inactive. c. Main acttvities undertaken to further the charity's purposes for the public bènefit The public benefit provided by the Charity is the relief of sickness andlor injury through rapid treatment andlor transportation to a hospf(al or treatment ¢enlre. This benefit is provided to all communities across Cornwan and the Isles of Scilly including residents and visitors and although piimarily in the county of Cornwall, also extends lo Devon when required. For primary and secondary missions, the Air Ambulance is free al the point of need on the grounds of fixed sets of criteria which take into account ¢lini¢al need, urgency, accessibility and distance lo hospital. These criteria are regulady reviewed and rigorously applied. No private benefit use of the Air Ambulance helicopter is given lo anyone * any time. The CDunty lends ilseLI ideally lo a serV￿e of this kind having a widely scattered population with many people living in remote and isolated tural Communities, far distant from the nearest accident and emergency hospital facilities. During the summer months in particular, many of Cornwall'$ narrow and winding roads become congested with holiday traffic, making any jOUTney to hosprtal by conventional means a daunting prospect. The beaches, clifftops and moorland areas where so many a¢cidents occur are also frequently inaccessible by foad. The Air Ambulance has proven lo be an invaluable part of the county's emergency semces. The Air Ambulance aclmties and primary fundraising a¢tiMties are now undertaken by the new incorporated charity as previously described. The Trustees have complied with their duty lo have due regard to guidance published by the Charity Commission on the operation of the public benefit requirement. Achievements and pèrformance Financial review Going concern After making appropriate enquiries, the Trustees have a reasonable expe¢talion that the Gharity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in p￿parIng the financial statements. Further details regarding the adoption of the going concern basis can be found in thg accounting policies. Page 2 FIRST AIR AMBULANCE SERVICES TRUST TRUSTEES. REPORT IcoKllNUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 b. Re$erve$ pollcy Due to the natu￿ of the of the Charity. which serves lo receive any residu81 donations and legacies which a subsequently passed to Cornwall Air Ambulance Trust, the Trustee's believe that £Nil reserves are sufficient for the Charity. During the year, the Trust received donations and legacies lolalling £30.306 {2021'. £31,867) which, after the deduction of administrative expenses. were remitted lo Cornwall Air Ambulance Trust. The net assets of the Trust as al 31 December 2022 were £Nil {2021.. £Nill. structure. governance and management a. Constitution First Air Ambulan￿ Services Trust is a registered charty, number 299000, and is constituted under a Trust deed. The charty is registered as the First Air Ambulance Service Trust, bul has adopted the working name of Cornwall Air Ambulance Trust with the approval of the Charities Commission. The First Air Ambulance Service was introduced on 1 April 1987 as an integral part of the Cornwall Ambulance Serwce during 1987. The service was paid for by Cornwall slatLJlory and voluntary donations, bul Cornwall and the151e5 of Scilly Area Health Authority found it difficult to underwrite the cost of the Service and consequently on 17 November 1987 the First Air Ambulance Service TTUSI Charity was established by Trust Deed dated 22nd February 1988, and is govemed by further Deeds of Variation, dated 2nd December 20C14, 1 st September 2008 and 15th February 2010. b. Methods of appointmerrt or election of Trustees The management of the charity is the responsibilty of the Trustees who are elected and cTropled under the terms of the Trust deed. It is the Iruslees. aim to ensure that an appropriate mix of skills is maintained on the Board of Trustees. All trustees of the incorporated Charity Cornwall Air Ambulance Trust ICAAT), charity 1133295, as referred lo in "Object5 and Acliviles are automatically elected as Iruslees of First Air Ambulance Tru51 IFAAST), in accorclance with the Articles of Association of CAAT and the Trust Deed for FAAST. Trustees conduct separate board meetings and a separate AGM lo consider the interests of the First Air Ambulance Service Tiusl independently of the incorporated charity, which has conducted the main charitable activities since its formation. c. Organisational structure and decision-making policies The Charity as consliluled does not have a ￿Mplicated organisalional slruclure. The Trustee Board manages the inte￿51S of FAAST in accordance with furtheTing ils aims and objedives in relation to the Charity and ils relationship with the incorporated charity. The Chief Executive of CAAT gives time volunlaTily lo matters pertaining lo FAAST. During the year, the Charity received donations exceeding £5,000 and therefore the eonlinued registration of the Charity with the Charity Commission is required. Page 3 FIRST AIR AMBULANCE SERVICES TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 structure, governance and management ICONTINUEDI d. Poll¢le$ adopted for the Induction and training of Trustees The Ctiarity has documented policies on the induction and training of new Trustees and where tratning is provided, Trustees are strongly encouraged to participate. All new Trustees are supplied with a copy of the Trust Deeds and a Copy of the lalesl sel of audited financial accounts. The welcome pack and trustee handbook also includes a copy of'Good Governance, a practical guide for Iruslees. chairs and CEOS" (Dalton) as well as a range of other board and senior executive level policy Information and from lime to lime e8¢h Trustee has the opportunity to attend training days covering aspects of governance and Iruslee responsibilities. It is felt that as a srnall and Slraighlfon￿ard charity a discu$sion with existing Trustees, together with a Teview of recent managernenl reports and mg91ing minutes, is a suitable way for a new Trustee lo leam everything they need lo know lo b￿1n theii Trusteeship effectively. Trustees are offered the opportunity to attend training ané seminars on charity govemance and have access lo a number of publica110ns of the National Council for Voluntary Organisalions INCVOI. The Trustees are all Directors of the incorporated charity Cornwall Air Ambulance Trust and benefit from resources and training provided through CAAT. Plans for future periods FAAST received donations and legacies tolalling £30.306 during 2022 and therefore the continued registration of the Charity with the Ch8rity Commission is Tequired until such a time that the Trustees consider that Ihg Charity's registration is no longer required. STATEMENT OF TRUSTEES, RESPONSIBILITIES Th& Trustees are responsible tor preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AC￿pted Accounting Prath'ce). The law applicable to charitie5 in England & Wales requires the TrLJslees lo prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial slalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021-, make judgments and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial ststements., prepare the financial slalemenls on the going concern basis unless i( is inappropriate lo presume that the charity will continue In business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charity's transactions and disclose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the Iinancial statements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking ieasonable steps for the preventson and detection of fraud and other irregularities. Page 4 FIRST AIR AMBULANCE SERVICES TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Disclosure of Infomiation to auditors Each of the persons who are Trustees at the lime whgn this Trustees. report is approved has confimed that.. so far as that Trustee is aware, there is no relevant audit information of which the charitys auditors are unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order lo be aware of any relevant audit infomialion and lo establish that the charitys auditors are aware of that information. Audito The auditors, Bishop Fleming LLP, have indicated their willingness lo continue in office. Approved by order of the members o Trustees and signed on their behalf by. Mr M M P Carne CBE Ichairmanl Date= 19-9-23 Page 5 FIRST AIR AMBULANCE SERVICES TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FIRST AIR AMBULANCE SERVECES TRUST OPINION Vve have audited the financial statements of First Air Ambulance Services Trust Ilhe 'charily'l for the year ended 31 December 2022 which comprise the Statement of financial aclivities, the Balance sheet, the Slalement of cash flows and the related notes, including a summary of significant accounting policies. The fi'nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, Iuniled Kingdom Generally Accepted AccoLJnling Praclicel. The financial statements have been prepared in aceordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference lo the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. This has been done in order for the a¢¢ounls lo provide a true and fair view in accordance with the Generally Accepted Ac¢oiJnting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial slatemenls.. gwe a true and lair view of the slate of the charity's affairs as al 31 December 2022 and of its incoming resources and application of resources for the year then ended.. have been properly prepared in accordan¢e with Unrted Kingdom Generally Accepted Aecounling Practice., and have been prepared in accordance wf(h the requirements of the Charities Act 2011. BASIS FOROPINION We conducted our audit in accordan￿ wth International SlandaTds on Auditing IUKI IISAS {UKI} and applicable law. Our responsibilities under those standards are further described In the Audttors. responsibilities for the audit of the financial slalements section of our report. We are independent of the charity in a¢cordan¢e 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 appropri*e lo provide a basi$ for our opin10n. 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 slal&mènls is appropriate. Based on the work we have perfomied. we have not identified any material uncertainties relatin9 to events or conditions that, individually or colle¢lively, may cast significant doubt on the charity's ability lo continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the re5ponsibililies of tho Trustees with respect lo going concern are described in the relevant 5eclion5 of this r8POrt. Page 6 FIRST AIR AMBULANCE SERVICES TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FIRST AIR AMBULANCE SERMCES TRUST ICONTINUED) OTHER INFORMATION The other information comprises the information included in the Annual report other than the financial statements and OUT Auditors, report the￿On. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the finanaal statements does not cover the other information and, except lo the extent otherwise explicitly stated in our report, we do not express any fom of assurance conclusion thereon. Our responsibility is to read the other inform81ion and. in doing so. consider whether the other information is materrally inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such maleTial inconsistencies or apparent material misslalemenls, we are required to detemiine whether thi5 gives rise to a material misstatement in the financial slalements themselves. If. based on the work we have performed, we con¢lude that there 15 a material misstalemenl of this other information, we are iequired lo report that fact. We have nothing to report in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires U5 to report to you if, in our opinion.. the information given in the Trustees. report is inconsistent in any material respect with the financiai statements., or sufficient a¢counting records have not been kept., or the financial slalemenls are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. OTHER MATTERS The prior year compaiatives of the financial statements are unaudited. The Auditor has obtained sufficient appropriate audit evidence that the opening balances do not contain misslatemenls that materially affect the current period's financial slalemenls. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees, responsibilf(ies slalemenl, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial slalements that are free from material misslalemenl, whether due lo fraud or error. In preparin9 the financial 5tstements, the Trustees are re5ponsibie for assessing the charitys ability lo continue as a going concem, disclosing, as applicable, matters related lo going concern and using the going concgrn basis of accounting unless the Trustees either intend lo liquidate the chafity or lo cease operations, or have no realistic alternative bul lo do so. Page 7 FIRST AIR AMBULANCE SERVICES TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FIRST AIR AMBULANCE SERVICES TRUST ICONTINUEDI AUDITORS. RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor under section 145 of the Charities Ad 2011 and report in accordance with the Act and relevant regulations made or having effect theieLtnder. Our objectives ale lo obtain reasonable assurance about whether the financial slalemenls as a whole are free from material misstatement. whether due lo fraud or error, and lo 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 ISA5 IUKI will a￿ayS delect a malerial misslalement when il exists. Misslatemenls can arise from fraud or error and are conSide￿d material rf. individually or in the aggrogate, they could reasonabty be expe¢led lo influence the economic decisions of users taken on the basi5 of these financial statements. Irregularities, including fraud, are in51ance$ of non-compliance with laws and regulations. We design procedures in line with OLJr responsibilities, outlined above, to delect material misstalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of detectin9 irregularities, including fraud is detailed below.. 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 idenlrfication and assessment of the risk ot irregularities., For any matters identified we have obtained and reviewed the parent charitable company's documentation of their policies and procedures relating lo", Identifying, evaluating and complying with laws and regulations whether they were aware of any instances of non-¢ompliance', Delecling and responding lo the risk of fraud and whether they have knowledge of actual, suspected or alleged fraud., and The internal controls established lo mitigate the risks of fraud or non-complian￿ wi(h 18ws and iegulalions. We have considered the mallers discussed among the audit engagement team, induding internal lax speci81isls regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these pro￿d￿reS, we have considered the opportunities and incentives that may exist within the organisalion for fraud and identified the highest area of risk lo be in relation lo income recogn1tion, with a particular risk in relation lo year-end cul off. In common with all audits under ISAS IUK} we are also required lo perfomi specific procedures lo respond lo the risk of management override. We also obtained an understanding of the 18gal and regulatory frameworks that the Charitable Group and Company operates in, focusing on provisw)ns of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial slalements. The key laws and regulations we considered in this Context included the Charities SORP IFRS 1021- Accounting and Reporting by Charitie5 and the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021. In adclilion, 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 abilty lo operate or lo avoid a material penalty. These include data protection regulations. health and safely regulations, aviation law. lottery regulaliDn5, fundraising laws and employment legislalion. As a result of performing the above procedures, we have completeness and cut-off of revenue recognition as a key aduil matter related lo the potential risk of fraud. Our procedures lo respond to risks identrfied included the following.. Documenting and validating the contrcl environment for income and debtors and carrying out walklhrough testing., Undertaking substantive sample-based testing or proof in lolal calculations on all material revenue streams o ensure revenue as een recognise approp Page 8 FIRST AIR AMBULANCE SERVICES TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF FIRST AIR AMBULANCE SERVJCES TRUST ICONTINUEDI Considering manual income joumals as part of our work on fraud risks documented above,. Reviewing the financial slalemenl disclosures and testing to supporting documenlalion.. Enquiiing of management con¢erning actual and potential lrf(igalion claims", Perfoming analytical procedures to identify any unusual or unexpected relationships that may indicate risk5 01 material misslalemenl", Reading minutes of meetings of those charged with governance., and In addressing the risk of fraud through management override of Controls, lesling the appropriateness of journal entries and other adjuslmenls,. assessing whether the judgemen15 made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactTons that are unusual or outside the normal course of business. We also communicated relevant laws and regulations and potential fraud risks lo all engagement team members and remained alert lo any indications of fraud or non