Trustees’ Report
and consolidated financial statements
Chairman’s Introduction and report on the year Page 2 Chief executive officer’s report Page 3-4 Legal and administrative details Page 5-6 Trustees’ report Page 7-16 Independent auditor’s report to the members of North West Air Ambulance Page 17-18 Consolidated statement of financial activities Page 6 Balance sheets Page 7 Notes Page 8 The following does not form part of the statutory financial statements:
Charity Statement of Financial Activities Page 9
List of Significant Donors for the Year page 10
Contents
The enclosed report covers the year ending 31st March 2012, being the twelfth year of operation of the North West Air Ambulance.
Welcome to the Trustees’ report for the year 2011-12.
The year, as in the last few years, has been one of change for the Charity and we have had to adapt accordingly.
Speculation around developments to Trauma Hospitals was confirmed when the Department Of Health announced exactly where those hospitals would be located within the North West.
This has meant that the chosen hospitals, Royal Preston and Wythenshawe, have worked hard to upgrade their helipads and make the necessary preparations for the helicopters to be based there. We have started preparing the tender for our Blackpool aircraft, as the lease expires in December 2012. We have spoken to our stakeholders, who have all identified their needs we now await the outcome of what the new vehicle may look like. We are exploring the possibility of aircraft that are able to operate at night and also how we can work more closely with other air ambulances in order to provide an even greater level of patient care.
In January, we announced that we would be launching a cutting-edge partnership with the North’s only specialist adult respiratory service at Wythenshawe hospital. The specialist service, Extra-Corporeal Membrane Oxygenation (ECMO) is designed to help patients whose lungs and heart aren’t working properly by oxygenating blood outside of the body. We are the first air ambulance service in UK to broker such a partnership, bringing seriously ill or injured patients to the specialist unit and then transferring them back to hospital where they can receive the best treatment.
Over the past year, we have taken a look at the Charity and how we want to be placed in order to reach the targets and achieve the aspirations set by the Board. We have appointed some new team members and have restructured our existing team. We are very confident that we now have the right people in place.
There was, understandably, much speculation about the direction of the Charity in light of the current economic climate and the impact it has had on charitable donations. In light of this, we decided that it was very important to raise awareness of the fact that we are a charity, and that we rely on donations from the public to keep our two helicopters operational and saving lives. We therefore made the decision to tender for a PR and Marketing agency to help raise our profile and provide strategic advice on our communications strategy. We appointed MC2 in October 2011, and have worked closely with them over the last 9 months to help enhance our public profile.
I am also delighted to announce a total income of £5.4m which would not have been possible without the support of the people of North West England.
Yours,
Darryl Cooke
Chair, on behalf of the Board of Trustees
Chairman’s
The CEO’s view of the future
The financial year 2011/12 is our 12th year of operation and brought some new challenges for the charity and has been our most demanding so far.
With the economic climate being high on everyone’s agenda the charity made the decision to recruit new personnel into the fundraising team and restructured the existing staff within the charity. The strategy proved successful as it enabled us to progress our long term plans with confidence.
Our Chairman set a challenge to the Senior Management team which resulted in our constructing a new 5 year strategic plan. It is a challenging and exciting plan which will see us
a) Operating from hospital helipads as opposed to airports b) Putting emergency physicians on all flights and increasing our
clinical skills at the scene of an incident c) Deploying a 3rd aircraft within the region d) Flying 24/7 through the hours of darkness.
Some of this work has already been completed and we will make a concerted effort to try to ensure we fulfill all of the plans within the set timeframe.
We also undertook work on our Charter, which is our pledge to the people of the North West region.
How...
We are going to get to where we want to be...
Future Plans:
By 2016 we are committed to: Always being there when needed
We will operate a 24-7 service with helicopters that have the capability to support our population during the hours of darkness. If required, we will increase our fleet of helicopters to ensure people get the help they need.
Taking healthcare right to the patient
As part of our commitment, every mission will be manned by a pilot, a paramedic and a doctor, all of whom can give life-saving drugs and clinical support at the scene of the incident.
Increasing chances of survival
By moving our bases from airports to hospitals we will be able to take specialist resources to the patient as quickly as possible. We will aim to get the patient to the right hospital in the right time, first time. The aim is to reduce the need for onward transfer and delays to life saving treatment.
Providing our volunteers, donors and supporters with first-class support
As a charity, we rely on those people who collect, donate and give time to fund the service we provide. Without them we would not be able to operate, so we will provide them with a first-class service to ensure everyone feels part of our Charity.
Pushing the boundaries of innovation, passion and teamwork
Healthcare is an ever-changing environment with new practices and techniques, technologies and ideas. We will not sit on our laurels but will constantly adapt, evolve and work together with our partners to be the best service we can be.
The service delivery team continued to be busy with many of the region’s hospitals either upgrading their helipads or constructing one where none exist. This work will continue well into 2013/14 as we progress our own plans.
Work commenced on the procurement of an aircraft to replace the helicopter based at Blackpool as the lease expires in December 2012. It is essential that the replacement aircraft is the most suitable platform if we are to deliver our objectives. This was a major piece of work and will come to conclusion during the next financial year when we will be proud to announce the outcome.
We are continually reviewing the operation with our major stakeholders and strive to be the best we can be. This is only possible due to the dedication of our volunteers who work tirelessly for us and the dedicated staff who work for the North West Air Ambulance. The ultimate commitment comes from those people and organisations who support us financially and we thank you for your generosity, we couldn’t do it without you.
Lynda Brislin, - Chief Executive
How...
North West Air Ambulance (hereafter referred to as “the Charity”) is a registered company and is registered with the Charity Commission. The Charity was incorporated on 12 April 1999.
Charity registration number: 1075641
Company registration number: 03752544
Chairman of the Trustees: Darryl Cooke
Hon, Secretary: I J Lockhart
Bankers:
The Royal Bank of Scotland Liverpool Group of Branches 1 Dale Street
Liverpool L2 2PP AND
The Co-Operative Bank PLC 1 Balloon Street
Manchester M60 4EP
Registered auditors:
TLL Accountants Ltd
Chartered Accountants & Registered Auditors 7-9 Station Road
Hesketh Bank Preston PR4 6SN
Investment managers:
Investec (formerly Rensberg Sheppard) 2 Gresham Street
London EC2V 7QP
Registered address:
Stanley House
North Mersey Business Centre Woodward Road
Knowsley Merseyside L33 7UY
Chief Officer: Lynda Brislin
Legal and
administrative details
WHO...
Our officials are... Board of Trustees
Mr Darryl Cooke (Chair) Mr J Keight
Mrs K March
Mr A Jude (Chair of Finance Sub Committee) Mr T Bibby
Mr S Meehan
The trustees are the members of the Charity. In the event of the Charity being wound up, the guarantee of each member is limited to £10.
Governing instrument
The Charity is governed by its memorandum and articles of association. The accounts have been prepared in accordance with the Special Provisions of Part 15 of the Companies Act 2006 applicable to small companies, and in accordance with the Charities SORP 2005.
Appointment of Trustees
New trustees are nominated by the current trustees, with a view to recruiting from a range of business experiences and qualifications and also to represent the whole geographical area of the North West Air Ambulance. A Trustee Induction Pack has been produced which along with a Trustee interview process ensures that the high quality of Trustees the organisation deserves is ensured. All Trustees are given the opportunity to attend an external Trustee training course and are invited to submit any further training needs during the year that the Board will review and if approved will be settled by the Charity.
Legal and
The trustees are required to:
1. Select suitable accounting policies and then apply them consistently; 2. Make judgements and estimates that are reasonable and prudent; 3. State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
4. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operate. The trustees are required by law to act in accordance with the trust deed and the rules of the Charity within the framework of trust law. They are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets Group and hence for taking reasonable steps for the prevention of fraud and other irregularities. Insofar as the trustees are aware; there is no relevant audit information (as defined by section 418 of the Companies Act 2006) of which the Charity’s auditor is unaware; and the trustees have each taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Senior Management Team
Lynda Brislin – Chief Executive
Jackie Northover – Head of Retail
Roger Kirkbride – Head of Finance
Mark Carroll – Head of Development
Statement of
trustees’ responsibilities
As every year in our twelve year history the organisation has relied heavily on the time donated to us by our volunteers. We are always so thankful for their commitment and enthusiasm and for raising funds, spreading the news about the Charity or helping in our head office with administration or serving in our charity shops.
Sarah Horne has been volunteering as a speaker for the North West Air Ambulance Charity since 2006 after seeing first hand the importance of the service.
Just over six years ago, Sarah’s husband was involved in a serious road traffic accident. The North West Air Ambulance was immediately called out to the scene to airlift Mr Horne to Royal Preston Hospital. Whilst being airlifted, Sarah’s husband lost consciousness and later at the hospital, he sadly passed away.
Sarah, now a retired teacher, delivers speeches at her local W.I and Rotary club, where she appeals for support on behalf of the Charity and shares her personal experience with the North West Air Ambulance. Sarah donates her speaker fee from each event to the North West Air Ambulance. In addition to this, she regularly attends cheque presentations as a representative on behalf of the Charity.
Commenting on her volunteering work, Sarah said “It is the least I can do to give back to a charity which helped my husband feel safe and at ease in his final moments.
She later added, “I feel that it is important to spread the Charity’s message locally, as well as share my own personal experience in my husband’s memory. The North West Air Ambulance is a wonderful charity who rely completely on the generosity of the public to keep it going 365 days of the year”
If you think you might be interested in joining our growing group of volunteers, then drop a line to the regional fundraisers below for an informal chat – whether you can donate one hour or a whole week we would love to hear from you.
Volunteer Team
Wendy Askew – Head of Volunteering
Jackie Northover – Head of Retail (for Charity Shop Volunteering)
Zoe Casson – Regional Fundraiser for Cumbria
Sue Powell – Regional Fundraiser for Cheshire & Wirral
Joanne Fowler – Regional Fundraiser for West Lancs & Merseyside
The North West Air Ambulance’s primary objective is the relief of sickness and injury and the protection of human life, by the provision of an air ambulance service in Lancashire, Cumbria, Greater Manchester, Merseyside and Cheshire.
The organisation is a registered charity receiving no mainstream funding, yet it offers a vital service seven days a week, 365 days a year across 5,500 square miles serving a residential population of seven million. NWAA operates two aircraft – from Blackpool airport -, and from City of Manchester airport both operating seven days per week. NWAA covers all major motorway networks, and areas that have poor and restricted road access. On average the NWAA is called out four times per day, rising up to ten in the summer. Whilst the incidents vary greatly, there are two over-riding factors for the NWAA’s presence – either because time is extremely crucial or where road access is limited.
The NWAA has a maximum flying time of ten minutes to the nearest appropriate hospital anywhere in the region and in the event of serious incidents it is this speed with which medical care can be delivered that is crucial. It is recognised that by receiving treatment at the scene and arriving at the hospital with the “Golden Hour”, the patient’s chances of survival and speed of recovery are dramatically improved.
The NWAA ensures a very high standard of care is met, whilst overcoming the problem of distance and congestion, accessing most areas of the North West promptly, in turn bringing highly qualified doctors and paramedics, as well as sophisticated equipment to the patient. All crew are operational ambulance staff that have received special additional training in navigation, meteorology, principles of flight, helicopter safety and helicopter evacuation training.
With two air ambulances now fully commissioned and operational we are in a position to provide an even better and more comprehensive service across the North West of England.
Public Benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future objectives and policies, and are satisfied that the necessary conditions are met, as described in this report.
Who...
We are and what we do...
Last year the NWAA flew over 1,200 missions, undertaken by two EC 135 Aircraft - one based at Blackpool Airport and the second based at City of Manchester Airport.
The Eurocopter EC135 utilises twin Turbomeca Airbus 2B2 engines. It has a maximum take-off weight of 2835kg with a fast cruise speed of 150kt. It is equipped with a stretcher of 1 to 2 patients and a maximum flying range of 320nm.
The Eurocopter has been specifically configured for HEMS (Helicopter Emergency Medical Service) and the seating is two front: Pilot and Paramedic, and rear: Paramedic with facility to carry patient and carer. The two aircraft are currently dispatched through the North West Ambulance Service 999 system and they will deploy the aircraft to a patient who is seriously ill or injured.
All paramedics working with us are seconded from North West Ambulance Service NHS Trust and must have a minimum two year’s experience, on a land vehicle, prior to joining our team.
How...
Spinal injuries survivor now climbing mountains thanks to NWAA
In November 2005, Jenny’s life changed dramatically as a result of a road traffic incident in Lancashire. Jenny’s spine was broken in a car accident, and emergency services responders on the scene in Chorley quickly recognised her need for immediate air-lift services to Royal Preston Hospital.
Jenny particularly remembers the quiet calm and confidence of Justin and Ian, the Air Ambulance crew who attended her. “They were great”, says Jenny. “I knew I was seriously injured but they were reassuring and professional, and quickly got me to Preston”.
After six months of close medical attention, a great deal of
physiotherapy and having to wear a full-body brace, Jenny was able to pick up the pieces of her life and make a full recovery.
Seven years later Jenny, now married with children, remains an active supporter of and fund-raiser for the North West Air Ambulance. And her full physical recovery can be seen in her successful sponsored trek up Kiliminjaro earlier this year!
We salute Jenny’s courageousness and hugely positive outlook on life, and are deeply grateful to her for all her support.
Fatality narrowly missed for Barrow worker thanks to NWAA
Eighteen months ago, Paul Dacre from Barrow went into work. It was a day just like any other working day. But within 24 hours Paul was in desperate need of specialist medical attention and, thanks to the North West Air Ambulance service, he was transported rapidly to waiting surgeons at the Royal Preston Hospital.
Paul had suffered a fall at work but with no obvious injuries he continued working that day, went home as normal and returned to work the next day. It was only on the second day that work colleagues noticed his changed behavior and mental condition, and Paul was taken to Hospital for a checkup.
At that point, the extent of his injuries was fully recognised – including a fractured skull, spine and clavicle. A blood clot on Paul’s lung was also discovered.
Paul urgently needed attention from specialist spinal injuries professionals at Royal Preston Hospital. By road the journey would have taken at least one and a half hours, but the North West Air Ambulance was called, and delivered Paul to Royal Preston Hospital within twelve minutes.
Paul is hugely grateful for the rapid air-lift which made a major contribution to saving his life. He says: “I cannot remember very much at all about the 24 hours post-accident. I was very dazed and obviously not at all well. The Air Ambulance got me to the specialist injuries unit and saved my life. It’s that simple”.
We at the North West Air Ambulance are extremely happy that our service could be there for Paul, at exactly the right time and place. We are also very grateful for all his support and fund-raising since his accident.
Who...
We have helped...
Fundraising
We are, without doubt, in a very fortunate position of having many loyal and committed supporters throughout the North West, and beyond; whether individuals, formal or informal groups or corporate organisations. We have touched the lives of many people in the last 12 months, and indeed over the last 12 years, whether directly or indirectly, and it’s true to say we have made some lasting friendships.
Our fundraising activities have covered the entire social spectrum from Education and Sports groups to Bikers groups and Freemasonry. The strength of awareness of the NWAA brand has had its traditional heartland in the Region’s central belt; looking forward, we have now strengthened our fundraising team by doubling our presence in Lancashire, Merseyside and Greater Manchester and adding specific fundraising expertise in both Cheshire and Cumbria.
We are developing a strategic approach to individual vertical markets within the Region by formulating specific activity for each vertical and alignment and coordination of both fundraisers and marketing activity. We intend to drive our volunteer recruitment and retention across the Region to underpin and complement the workloads of each fundraiser and we are to completely revise the current collection tin methodology into one of controllable proactive income generation, which will build into a significant stand- alone process over the next 5 years.
Events
In addition to local events, we were actively involved in a variety of larger scale fundraising events during the course of 2011/12:
The selection below highlights the diversity of our events and gives an indication of the different demographic profiles we have reached and worked and played with.
We held our first ever Christmas Carol Concert in Manchester Cathedral in December, which saw a wide variety of performances to an audience of over 500 people. The event was such a success that we will be holding a similar event again this coming December.
We started our Big Discussion to find out what people in the North West think about our charity. This saw us engage with a wide variety of audiences, from schools to business leaders and provided some very useful feedback about how we can better work with the North West community as a whole. Amended this paragraph as included in Chairman’s piece.
As always there were some fantastic fundraising efforts in aid of the NWAA and these helped to further raise public awareness of what our charity does. A few of these amazing efforts include Tony McColley’s kayak challenge from London to Manchester completely unaided, Jane Harrison’s unbelievable feat of swimming the entire length of the river Lune, Rebecca James and Matt Reynolds’ decision to ask guests to their wedding to donate money to our charity, Dean Kelly’s second attempt at the Beaverbrooks Charity Bike ride after suffering a heart attack at the same event last year and Martin Spooner’s Bob Graham challenge. We were also thrilled at the number of people who took part in the Cross Bay Walk this summer. Their combined efforts raised over £10,000 for our charity.
Moving forward, we will concentrate our event focus on lower risk, high return activity. As we now have a strong fundraising structure, the emphasis will be on expanding our awareness through regionalised event campaigns across all 5 counties in the North West.
How...
Lottery
Our in house society lottery once again had a great year and continues to go from strength to strength providing a reliable and sustainable income source to the charity. As well as growing our paying membership substantially again, this year we bought our grand annual draw in- house and through the involvement and support of all of the team managed a record breaking year for ticket sales. In the coming year we are planning campaigns using groundbreaking initiatives in member recruitment, and will strive to continue our success story.
Shops and Trading
The charity – through its trading arm NWAA Promotions Ltd – currently leases premises in Southport (Merseyside), Garstang (Lancashire) and Lytham (Lancashire) and operates these premises as charity shops. We have recently introduced bought-in items and also introduced various initiatives, which have increased the weekly income.
There are two elements of the strategy for the shops. Firstly, taking advantage of the areas where support for the Charity is strong this will result in the charity receiving support in the form of donations and sales from the local community. Secondly, operating shops in areas that fall within our area of operation, but where the visibility and individual support for the Charity is low.
Without the generous support of the public our vital service could not be provided. NWAA is indebted to the many people who have contributed to our cause through donating their time and goods for the shops.
The Promotions arm of the Charity also looks after our merchandising – we have NWAA branded goods from Christmas Cards to teddy bears and even a rose in our colours (called You Are My Sunshine).
Our full range of charity merchandise is available at www.nwaa.net
How...
We raised funds to support ourselves...
Financial review of the year
The charity has seen a strong year financially, in a difficult year for the wider economy. The charity had planned to ensure some growth in its income, but has managed to achieve 20 per cent growth, a level which it has maintained from the previous year. The major increases in income come from donations from the Friends of the North West Air Ambulance (the NWAA Lottery) and an increase in event income in the year. The Charity has implemented a new budget setting process in order to tighten up the financial management and forecasting of the organisation – this ensures value for money and financial transparency is at the core of what we do. The new budget has also been closely tied into the Charity’s new 5 year strategic plan. The Finance team have worked closely with the senior management team and the Board to review the financial information produced to ensure that it is fit for purpose – providing information that allows timely and well informed business decisions. The Head of Finance continues to work closely with the Fundraising team to review income levels and consider where targeted campaigns need to be focused. All departments are reviewing their expenditure budgets monthly and will provide (with support from Finance) a quarterly reforecast of expenditure for the Board’s review.
The strategic vision for the Finance Department is to embed finance into the decision making systems of the Charity and ensure that finance provides key information to managers that is both timely and relevant and assist in robust decision making.
Other key functions and the focus for the future will continue to be on compliance and best practice. The Charity prides itself on being transparent in all its transactions and is committed to ensuring all new legislation and directions for best practice are introduced at the earliest possible time; to ensure the best levels of compliance with both Company law and the Charity Commission guidance.
Risk
The trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. This year the Risk Register has been revised into a new format which the Finance Sub Committee (Audit Committee) feel is a better fit for the organisation and that makes the management of risk easier (based on a model used by the NHS). The major risks to the Charity under each heading were reviewed, rated and controls and monitoring identified for each. A major review of Health & Safety also took place during the year, and the results of this programme have been appended to the Risk Register.
The trustees undertake to review the risk register at least once per year, but endeavour to make it a ‘living’ document—updated as changes take place in the organisation, and with this in mind has tasked the management team with regular review and update to the register as the business changes.
How...
Reserves
In line with the Charities Act requirement, the trustees have reviewed the Charity’s reserves policy during the year. The reserves policy was agreed at two year’s operational costs and this remains the target— however, the trustees recognise that this continues to be a challenging target as costs continue to grow.
The management team has worked especially hard this year and has been able to add £1.4m to reserves this year – taking the current level to £2.3m (General funds) – closer to the targeted £3m. The longer-term five-year plan remains to increase to two year’s operational costs (estimated to be between £4m and £5m).
Investments
After their appointment in late 2009 Investec (formerly Rensberg Sheppard) took over the management of the Charity’s investment funds. The Charity transferred the sum of £500,000 to Investec during the year.
The Trustees have agreed a cautious approach to investment and of course wish to maximise income from funds but with the primary concern being the safety of funds invested.
Investments of no more than 6 months was agreed, and a mix of investment periods, providers and returns has been utilised during the year in order to keep the assets of the Charity as liquid as possible. Investec have managed to achieve net gains on investment of £87k in the year and the Board feel that this level of performance, along with the strong business relationship between the Charity and Investec means that the relationship will continue through 2012.
Trustees’ report (continued) This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Auditors
A resolution for the appointment of TLL Accountants Ltd as auditors of the Charity for the forthcoming year was approved at the Annual General Meeting.
Approved by the Board of trustees on 17th October 2012 and signed on its behalf by:
How...
We pay for it all...
Mr Darryl Cooke Mr Allan Judge
You can help support us...
The reality is that, as a charity, the more we commit to do the more we need your help. If we are to give the gift of time, then we need your support to help us raise the vital funds required to enhance our service.
You can enable us to give the gift of time by:
Donating your time
• Become a volunteer: For a volunteer application form please call 0151 547 7830 or email [email protected]
Donating financially to the charity
• Donate online at www.nwaa.net
• Call 0151 547 7830 to donate by credit or debit card
• Send a cheque payable to North West Air Ambulance Charity to • NWAA North Mersey Business Centre
Woodward Road Knowsley L33 7UY
• Text RESCUE to 70300 to make an instant donation of £3.00 Take your donation to one of our charity shops.
• Take part in one of our initiatives, such as the lottery, clothing donations or set up a monthly standing order Open an affinity account with our partners – Furness Building Society, Marsden Building Society or Chorley Building Society
Events
We are holding a number of events this year to raise money for the Charity. From dressing up to joining us at one of our glamorous balls, to sponsored walks or even getting us to come to your event! If you are interested in getting involved then please contact our fundraising team by emailing [email protected]
Many of the community groups who choose to support the North West Air Ambulance do so by organising events on our behalf and donating the proceeds:
This year has seen spectacular firework displays, sponsored skydives, theatre performances, sponsored rides, Motor Shows, Gala Balls and County Shows just to name a few.
If you are interested in organising an event, or would simply like to see if any events are taking place near you please visit our website at www.nwaa.net
How...
We have audited the financial statements of North West Air Ambulance Charity for the year ended 31st March 2012, which comprise the Consolidated Statement of Financial Activities (income and expenditure account), the Consolidated and Parent Company Balance Sheets, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and Financial Reporting Standards for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).
This report is made solely to the Charitable Company’s members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and its members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor
As explained more fully in the Trustees’ Responsibilities Statement (within the Trustees’ Report) the trustees (who are also the Directors of the Charitable Comany 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.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Trustees in the preparation of the financial statements and of whether the accounting policies are appropriate to the Charity’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Independent Auditor’s Report
to the Trustees and Members
of North West Air Ambulance
(limited by guarantee)
Opinion
In our opinion the financial statements:
• Give a true and fair view of the state of the Group and Charitable Company’s affairs as at 31st March 2012 and of its 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 (applicable to smaller entities); and
• Have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 required us to report to you if, in our opinion: • Adequate accounting records have not been kept or returns
adequate for our audit have not been received from branches not visited by us; or
• The 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 exemption in preparing the Trustees’ Report. P Buck ACA, DChA Senior Statutory Auditor, for and on behalf of: TLL Accountants Ltd
Chartered Accountants Statutory Auditors 7-9 Station Road Hesketh Bank Preston PR4 6SN 17th October 2012
Independent Auditor’s Report
to the Trustees and Members
of North West Air Ambulance
Notes Restricted funds total Year ended 31 March 2012 £ Unrestricted funds total Year ended 31 March 2012 £ Funds total Year ended 31 March 2012 £ Funds total Year ended 31 March 2011 £ Incoming resources
Incoming resources from generated funds
Voluntary income 23,761 4,863,627 4,887,388 4,409,696 Activities for generating funds:
Commercial trading operations
- 440,773 440,773 361,820
Investment Income 2 - 47,631 47,631 14,679
Total incoming resources 23,671 5,352,031 5,375,792 4,786,195
Resources Expended
Costs of generating funds
Commercial trading operations - 301,693 307,693 289,373 Other Fundraising costs - 598,809 598,809 596,672 3 - 900,502 900,502 866,045
Charitable activities
Cost of operation of the North West Air Ambulance
3 23,761 3,134,205 3,157,966 3,180,695
Governance costs 3 - 37,328 37,328 39,130
Total resources expended 23,761 4,072,035 4,095,796 4,105,870
Net Income for the year before transfers and recognised gains and losses
- 1,279,996 1,279,996 680,325 Gains/Losses on investments - 87,437 87,437 78,206 Total funds brought forward - 3,644,995 3,644,995 2,886,464
Total funds carried forward 13 - 5,012,428 5,012,468 3,644,995
Consolidated Statement
of Financial Activities
(Income & Expenditure Account)
for the year ended 31 March 2012
The consolidated figures above include the results of the Charity which had income for the year of £5,074,099 (2011: £4,496,823) and a net surplus of £1,367,428 (2011: £758,531).The above results arose solely from continuing activities.There is no material difference between the reported results and the historical results of the Group and Charity.The notes in the appended pages form part of these Financial Statements.
Statement of total recognised gains and losses
The Charity has no recognised gains or losses other than the net movement in funds for the year.
Notes Group Charity 2012 £ 2011 £ 2012 £ 2011 £ Fixed Assets Tangible Assets 8 134,715 123,761 104,001 88,029 Investments 9 - - 11,502 11,502 134,714 123,761 115,503 99,531 Current Assets Stock 10,691 13,262 Nil 5,804 Investments 10 2,730,562 2,087,994 2,730,562 2,087,994 Debtors 11 533,549 584,025 691,416 720,693 Cash at bank and in hand 1,723,133 1,041,229 1,586,444 925,888 4,997,935 3,726,510 5,008,422 3,740,379
Creditors:
amounts falling due within one year
12 (120,221) (205,276) (115,490) (198,903)
Net Current assets 4,877,714 3,521,214 4,892,932 3,541,476
Net assets 5,012,428 3,644,995 5,008,435 3,641,007
Income funds
Unrestricted – General Funds 13 2,276,952 1,734,723 2,272,959 1,730,735 Unrestricted – Designated Funds 13 2,735,476 1,910,272 2,735,476 1,910,272 5,012,428 3,644,995 5,008,435 3,641,007
Balance Sheets
as at 31 March 2012
These Financial Statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective January 2007).
The notes in the appended pages form part of these Financial Statements.
These Financial Statements were approved by the Board of Trustees on 17th October 2012 and signed on its behalf by:
Notes
(Forming part of the financial statements)
1 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group’s financial statements.
Basis of preparation
The Financial Statements have been prepared in accordance with the Statement of Recommended Practice 2005 (SORP) “Accounting and reporting by Charities” and applicable accounting standards and under the historic cost accounting rules in line with the Companies Act 2006 The Group is exempt from the requirement of Financial Reporting Standard 1 (revised) to prepare a cash flow statement as it qualifies as a small Group.
Basis of consolidation
The consolidated financial statements include the Financial Statements of the subsidiary company: North West Air Ambulance Promotions Limited for the year to 31 March 2012. This has been consolidated on a line by line basis in accordance with the requirements of the SORP.
The Charity has not presented its own Statement of Financial Activities (SOFA) as permitted by the Companies Act 2006 and the provisions of paragraph 397 of the SORP 2005.
Related party transactions
The trustees have taken advantage of the exemption in FRS8, paragraph 3(c), and have not disclosed related party transactions with its subsidiary undertaking.
Grants and donations
Grants and donations are included in the Statement of Financial Activities as they become due and are included in the relevant fund. Income expended is accounted for in the Statement of Financial Activities. Where income has donor imposed restrictions regarding its use, this is shown within restricted funds with related costs being allocated to the same fund.
Where there is a timing restriction which requires income to be deferred to a future period, such amounts are shown within creditors and later credited to the Statement of Financial Activities as eligible.
Donations in kind
Where assets are donated to the Charity these are included within restricted income and costs at the market value of the asset or the value in use at the time of the donation. Where the cost is capitalised, a transfer is made out of restricted funds to the extent that the restriction no longer exists. A threshold of £3,000 is operated for donations in kind.
Legacies
Legacies, which are included within voluntary income, are recognised when the bequest becomes due and is quantifiable. Any legacy income received or identified more than six weeks after the Charity’s year end will be included in the following financial year’s income for practical accounting purposes.
Grants paid
Grants paid are included in the Statement of Financial Activities as they become payable. These become payable when authorised by the trustees.
Notes
(continued)
Expenditure
Expenditure has been charged to the Statement of Financial Activities on an accruals basis. Expenditure relating directly to the objectives of the Charity is shown as charitable expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the statement of financial activities. There is deemed to be only one key objective to which charitable costs are allocated.
Governance costs include an element of administrative staff costs / support costs which relate mainly to accounts preparation.
Investments
Investments are shown at market value.
Commercial income
Commercial income represents the amounts (excluding value added tax) received from the sale of goods to customers during the year through the trading subsidiary North West Air Ambulance Promotions Limited. All such turnover arises in the United Kingdom.
Taxation
The Charity does not have any charge to tax on its charitable activities.
Unrestricted funds
Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Irrecoverable VAT
Irrecoverable VAT is accounted for in the expenditure category under which the costs are incurred.
Fixed Assets
Tangible fixed assets for use by the Charity are stated as cost less depreciation.
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
All categories of assets: 20% on straight line basis
Stocks
Stocks are valued at the lower of cost and net releasable value, after making due allowances for any obsolete or slow moving items.
Notes
(continued)
Year ended 31 March 2012 £ Year ended 31 March 2011 £ Bank Interest 1,888 4,981 Investments - -Current Asset Investment Income 45,743 9,78847,631 47,631 Year ended 31 March 2012 £ Year ended 31 March 2011 £
Direct Charitable expenditure
Operating costs 2,721,353 2,784,981 Support costs (note 6a) 403,913 395,714 Depreciation 32,700
-3,157,966 3,180,695
Fundraising Costs
Staff costs and travel 289,498 274,815 Investment managers Fees 18,679 16,620 Other expenses 290,632 305,237
598,809 596,672 Subsidary expenses 301,693 289,373 900,502 886,045
Governance Costs
Auditor fees - audit and accounts 6,600 6,000 - other services 2,700 -Bank charges 2,986 3,088 Depreciation 4,468 30,042 Legal and professional 20,574
-37,328 39,130
2 Investment Income – Charity and Group
3 Analysis of total resources expended – Charity and Group
Notes
(continued)
Total staff costs for the year may be analysed as follows: Year ended 31 March 2012 £ Year ended 31 March 2011 £ Gross pay 505,434 437,977 Social Security costs 52,011 47,405 Pension costs 5,834 6,847
563,279 492,229
The average number of employees (full time equivalents), analysed by function was as follows:
Year ended 31 March 2012 Number Year ended 31 March 2011 Number Fundraising 8 7 Administration 9 8 17 15
4 Staff numbers and costs – Charity and Group
5 Staff numbers and costs – Charity and Group
One employee was paid over £60,000 (the disclosure limit specified by the Charity Commission). The total remuneration was in the bracket from £60,000 to £70,000. There were also employer pension costs to a defined contribution scheme of £1,599 (2011: £1,599) for the year.
The trustees received no remuneration from the Charity (2011: £nil), reimbursement of expenses during the year totalled £nil (2011: £nil). During the year professional indemnity insurance was purchased relating to all of the trustees, at a cost of £2,000 (2011: £2,000).
In addition to the staff costs above, there are further costs relating to operational staff and paramedics included within ‘Operating costs’ which are paid by way of a service level agreement. The costs of the charity shop management staff (within the subsidiary company) are included within fundraising costs.
Notes
(continued)
6a Support costs
Support costs are allocated to fundraising and direct charitable expenditure as follows (on the basis outlined below): Total £ Charitable Activities £ Fundraising Costs £ Staff cost and travel 615,953 326,455 289,498 Office and utility costs 92,377 48,960 43,417 Events and consultancy 196,131 - 196,131 Stationery, postage and telephone 39,936 7,987 31,949 Advertising and website 19,630 - 19,630 Professional fees and other costs 38,695 20,511 18,184 1,002,722 403,913 598,809
6b Support costs – Basis of allocation
Support costs are allocated to fundraising and direct charitable expenditure on the basis outlined below: Total £ Charitable Activities £ Fundraising Costs £ Basis of Allocation Staff cost and travel 615,953 53% 47% Staff numbers Office and utility costs 92,377 53% 47% Staff numbers Events and consultancy 196,131 - 100% Staff numbers Stationery, postage and telephone 39,936 20% 80% Staff numbers Advertising and website 19,630 - 100% Staff numbers Professional fees and other costs 38,695 53% 47% Staff numbers
1,002,722
7 Taxation
Neither the Charity nor its subsidiary company had any liability to corporation tax during the year, although the subsidiary had a tax liability of £118 arising from bank interest received in 2010-11 which was paid in the current year.
Notes
(continued)
8 Tangible fixed assets
Group £ Charitable Company £ Cost
At the beginning of the year 229,326 170,136 Additions 66,670 53,140 Disposals - -At end of year 295,996 223,276
Depreciation
At the beginning of the year 105,565 82,107 Charge for the year 55,716 37,168 Depreciation on disposals - -At end of year 161,281 119,275
Net book value
At 31st March 2012 134,715 104,001 At 31st March 2011 123,761 88,029
9. Fixed Asset Investments
2012 £
2011 £
Charity
Ordinary £1 shares in North West Air Ambulance
9. Fixed Asset Investments (continued)
Notes
(continued)
2012 £ 2011 £ Turnover 440,773 361,820 Cost of sales (26,983) (19,639) Gross profit 413,790 342,181 Other operating income - 563 Administrative expenses (282,092) (269,734) Net profit for the year 131,698 73,010 Tax on profits not distributed (118) -Gift aid donation to North West Air Ambulance (131,580) (73,010) Profit on ordinary activities transferredto reserves - -2012 £ 2011 £ Assets 197,030 188,174 Liabilities (181,535) (172,679) Total reserves (including £11,502 share capital) 15,495 15,495
The Charity has one trading subsidiary, North West Air Ambulance Promotions Limited, a company incorporated in England and Wales which is consolidated into the results of the North West Air Ambulance. The Charity owns the entire share capital of this company, being 11,502 ordinary shares. The company raised funds for the North West Air Ambulance during the year.
Audited Financial Statements of North West Air Ambulance Promotions Limited for the year ended 31 March 2012 are filed with the Registrar of Companies. A summary of the trading results of North West Air Ambulance Promotions Limited are shown below:
The aggregate of assets, liabilities and reserves is:
The consolidated statements of financial activities includes the results of the subsidiary company. The total income of the Charity before consolidation adjustments is £5,074,099 (2011: £4,496,823).
10. Current Asset Investments-Charity and Group
Notes
(continued)
2012 £ 2011 £ Carrying value (MV) at beginning of year 2,087,994 -Additions at cost 500,000 2,000,000 Increase (decrease) in cash balance 134,131 29,706 Disposals at carrying value (79,000) (19,918) Net gain/loss on revaluation 87,437 78,206 Carrying value at (MV) at end of year 2,730,562 2,087,994 Historical cost or above investment at the endof the year 2,422,327 2,013,147 2012 £ 2011 £ UK listed equities 1,076,139 518,729 UK fixed Interest 807,335 499,976 Overseas equities 435,534 130,874 Overseas fixed Interest 266,222 191,617 Cash 145,332 746,798 2,730,562 2,087,994 Analysis or Investment value by type:
11 Debtors
12 Creditors: amounts falling due within one year
Notes
(continued)
Group 2012 £ Charity 2012 £ Group 2011 £ Charity 2011 £ Trade debtors - - 74,571 74,571 Amounts owed by the FONWAA 194,122 194,122 153,673 153,673 Amounts owed by subsidiary undertaking - 176,803 - 166,306 Prepayments 27,422 17,632 35,366 10,085 Accrued Income 307,695 301,778 315,618 315,618 Other debtors 4,310 1,081 4,797 440533,549 691,416 584,025 720,693 Debtors includes £25,000 (2011: £25,000) due after more than one year.
Group 2012 £ Charity 2012 £ Group 2011 £ Charity 2011 £ Trade creditors 24,462 23,759 49,173 48,327 Accruals 93,359 89,331 143,684 138,157 Deferred Income 2,400 2,400 12,419 12,419 120,221 115,490 205,276 198,903
12 Creditors: amounts falling due within one year (continued)
13 Reconciliation of movement in funds
Notes
(continued)
Deferred income relates to amounts received towards fundraising events due to take place in the following financial year, when this income will be released to the statement of financial activities and may be summarised as
follows:-The trustees’ reserve policy is to achieve reserves that will ensure two years operational costs of the two aircraft currently operated by the organisation. This means that the organisation aims to achieve reserves of approximately £4-5 million. Through careful budgeting and cost control the trustees hope to reach this target within the next five years.
The designated fund of £2,735,476 shown above has been earmarked to cover the total annual lease commitments as described in note 14 plus sufficient to further cover the increased aircraft operational costs and medical expenditure necessary to satisfy the Charity’s strategic plan of extended flying hours, increased patient care and specialist partnership arrangements (£764,000). It is imperative that the Charity is able to meet these costs before committing other expenditure.
Group £
£
Charity
Balance brought forward 12,419 12,419 Received in year 2,400 2,400 Released to SOFA (12,419) (12,419) Balance carried forward 2,400 2,400
Restricted funds Unrestricted Funds – Designated Unrestricted Funds - General Total 2012 Group
Funds at start of year - 1,910,272 1,734,723 3,644,995 Net Movement In Funds - - 1,367,433 -Transfers - 825,204 (825,204) 1,367,433 Funds at end of year - 2,735,476 2,276,952 5,012,428
14 Lease Commitments
Notes
(continued)
Future minimum lease payments under non-cancellable operating leases for the following periods are as follows, for leases ending…
15 Share capital
The Charity is limited by guarantee and as such has no share capital. In the event of the Charity being wound up, the liability of each member is limited to £10.
16 Related party transactions
Three trustee directors of the Charity (J Keight, K March and A Jude) are also directors of the trading subsidiary: North West Air Ambulance Promotions Limited. The transactions with this company are consolidated with the results of the Charity and as such do not require separate disclosure.
J Keight and K March are also directors of Friends of the NW Air Ambulance Lottery CIC, from which the Charity has received income of £2,344,749 in the year (2011: £1,852,510). The balances owed by the Community Interest Company to the charitable Group are disclosed in note 11 to these Financial Statements. Property £ Other £ Total £ Less than one year - 1,055,832 1,055,832 After 1 year and less than 2 years - - -After 2 years and less than 5 years 40,000 875,644 915,644 More than 5 years - - -Total Operating lease commitments 40,000 1,931,476 1,971,476
17 Transactions with Directors
Notes
(continued)
During the year transaction were conducted with two companies that two current Trustees have interests in.
These transactions were of a type allowed for in the Charity’s Memorandum and Articles of Association and were carried out in accordance with the Charity’s Conflict Policy.
Charity Statement of Financial Activities for the year ended 31 March 2012 Year ended 31 March 2012 £ £ Year ended 31 March 2011 £ £ Incoming resources
Donations from Lottery 2,347,057 1,852,510 Gift Aid from NWAA Promotions 131,580 73,010 Events 301,568 404,599 Legacies 399,827 407,541 Corporate gifts 160,952 172,326 Affinity accounts 134,857 122,184 Individual donations 251,419 201,427 Groups 452,922 283,137 In memoriam 165,198 202,531 Payroll giving 59,128 64,716 Trusts 106,113 56,930 Recycling 148,008 95,848 Collection boxes 68,377 44,210 Statutory funders 24,492 29,302 PCT and Other 228,697 429,678 Gift Aid 38,773 42,758 Bank interest receivable 1,888 4,323 Investment Income 53,243 9,788
2,595,462 2,571,303
17 Transactions with Directors (continued)
Notes
(continued)
Charity Statement of Financial Activities for the year ended 31 March 2012 (continued) Year ended 31 March 2012 £ £ Year ended 31 March 2011 £ £
Resources expended Direct charitable:
Operational Costs 2,721,353 2,784,981 Depreciation 32,700
Fundraising and Publicity:
Direct staff costs and recruitment 574,589 556,486 Utilities and insurance 19,761 19,922 Repairs and renewals 11,375 16,985 Accommodation, catering and room hire 45,401 43,036 Travelling 41,364 28,227 Consultancy, fundraising and promotion 196,131 207,906 Computer, website and software 18,311 14,928 Printing, stationery and postage 27,561 26,514 Advertising 1,319 104 Telephone and internet 12,375 10,135 Equipment 14,265 12,492 Subscriptions and fees 1,575 2,144 Legal and professional 31,799 44,992 Sundry 6,901 8,516
1,002,727 992,387 Total costs carried forward 3,756,780 3,777,368
17 Transactions with Directors (continued)
Notes
(continued)
Charity Statement of Financial Activities for the year ended 31 March 2012 (continued) Year ended 31 March 2012 £ £ Year ended 31 March 2011 £ £ Total costs brought forward 3,756,780 3,777,368
Governance costs:
Audit fees 9,300 6,000 Bank charges 2,986 3,088 Depreciation 4,468 30,042 Legal and Professional 20,574
-37,328 39,130
Total resources expended 3,794,108 3,816,498
Net surplus for the year 1,279,996 680,325
Unrealised gain on Investments 87,437 78,206 1,367,428 758,531
North West Air Ambulance Charity
