TAAS responds to critical report
The Air Ambulance Service (TAAS) has responded to a critical report issued by the Charity Commision, the body that regulates charities in England and Wales.
The Air Ambulance Service (TAAS) has responded to a critical report issued by the Charity Commision, the body that regulates charities in England and Wales.
TAAS operates HEMS providers the Warwickshire & Northamptonshire Air Ambulance (WNAA) and the Derbyshire, Leicester & Rutland Air Ambulance (DLRAA), as well as the hospital transfer service The Children’s Air Ambulance (TCAA).
The Commission’s case report states that it received several complaints about the charity that made detailed allegations of ‘significant losses incurred by the charity as a result of a failed fundraising event held in 2012’, ‘a large loan made to one of the charity’s senior employees without appropriate board oversight’, and ‘a lack of oversight by the charity’s trustees, with the charity’s chief executive and chairman making important decisions without seeking input of the full board’.
The event referred to involved TAAS purchasing tickets for the London premiere of the stage version of The Bodyguard. According to the Commission, this resulted in an overall loss to the charity of around £111,000. The processes in place for managing the event were ‘significantly inadequate’, said the Commission, amounting to ‘a serious failure on the part of the trustees’. However, the report added: “The trustees pointed out that although losses were made on the failed fundraising event, publicity for the subsidiary charity, TCAA, may have [contributed] to a recent, substantial grant being made to that charity.”
A spokesperson for The Air Ambulance Service (TAAS) explained: “In 2012, TAAS purchased seats to resell for the London premiere of The Bodyguard, a method of fundraising used by other UK charities. Unfortunately, the event was not commercially successful due to poorer than anticipated ticket sales.” The spokesperson continued: “2012 was a record year for fundraising for TAAS and this was the only event not to make a profit in its own right, but it did serve as a useful profile-raising exercise and an opportunity to attract new supporters and volunteers on a long-term basis. TAAS now has in place an experienced fundraising team and robust strategy to ensure each event is profitable in its own right.”
The loan totalled £27,000 and was made to ‘a senior employee’. The Commission said the legal basis for the loan had not been made clear, adding ‘charities may only apply funds in a way that helps them further their purposes for the public benefit and in the best interests of their beneficiaries’.
According to the TAAS spokesperson, the loan ‘was a one-off and made to a valuable employee facing unforeseen personal circumstances’. The spokesperson continued: “It was interest-bearing and came with a guarantor – so there was no financial risk to the charity – and was put in place by the chair of trustees, CEO and finance director with the approval of the finance committee. Advice was also sought from the Charity Commission’s [telephone] helpline.”
The lack of oversight cited related to the fundraising event and the loan. The report stated: “We found that the trustees did not exercise sufficient controls over the CEO … there were unclear reporting procedures and the trustees appeared over-reliant on the CEO and their chair and did not appear fully aware of their responsibilities to act as a collective body.”
The Commission said it issued TAAS with an action plan that included tasking the charity with adhering to its governing document and ensuring trustees are involved appropriately in key decisions. The trustees were also told they must satisfy themselves as to the legal basis for agreeing to the loan. Finally, the trustees have been told to provide a full report detailing the events that led to the ‘failed fundraising event’. The report continued: “The trustees must learn the relevant lessons to ensure that any future events are properly managed, events undergo appropriate feasibility scoping, and that proper methodology and skills are in place before the project commences.”
The TAAS said: “We have worked closely with the Charity Commission to ensure governance is tightened and all employees and trustees are fully aware of their roles and responsibilities. The focus of TAAS remains on ensuring it is run as efficiently as possible to fund the growing demand for our life-saving services.”