Company number". 03597005 Charity number-. 1076690 International Water Association Report and financial statements For the year ended 31 December 2021 SAYER 00000 00000 V I NCENT ooooooo 000 0000 ABAM344Z 1710022 COMPANIES HOUSE
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International Water A550ciation Contents For the year ended 31 December 2021 Trustees. annual report Independent auditor's report Statement of financial activities (incorporating an income and expenditure account) Balance sheet Statement of cash flows Noies to the financial statements .36 -37 -38 39
INTERPIATIChNALWATER ASSOCIATION Trustees. rtert For the ar ended 31 Oecernber 2021 The IWA Trusiees (who are also Direciors of the charity for the purposes of the Companies Act) presenttheir annual report together with the audited consolidated financial statement5 of International Water Associaiion (the 'Association' or 'lWA) for Ihe year ended 3 1 December 2021. The Trustees confirm that the annual repon and financial statements of the Associaiion and the groupcomply with: al rhe current statutory requirement5: bl the requirernents of the Association. and the Association's governing document.. and cl the provisions of the Statement of Recommended Practice ISORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Siandard applicable in theUK and Republic of Ireland {FRS 1021. 1. OBJEcfivES AND GENERAL AcnvmES Objectives of the Assoclatlon These are to.. lal promote ihe art and science of water management for the public benefit. panicularly. bui not exclusively. by the encouragemenr of education, trainin9, Study. and research in water management and the publication of the useful resulis of such research., Ibl advance the education of members of the public in the science and practice of water management: Icl promote and enable ihe development and direct water provision of water management schemes worldwide for the public benefit. whefe "water managemenr" means the establishing. maintaining. and securing of safe and susiainable water supplies, storm water systerns. and wastewater treatment and disposal systems.
ifrirERNAnQNALWATER ASSOCLATION Trustees. Wrt Fortht year ended 31 Oecefflber 2021 Strategies for achlevlng obJertlve5 The Association fulfils its objectives by.. lal holding a World Water Congress every two years in different continents of the world: Ibl holding worldwide regional and specialised conferences. seminars. webinars. and workshops.providing a continual source of knowledge and information- Icl publishing a range of book5. journa15. and reports- and Idl promoting multi-level collaboration amongsi its member5 and others through, for example. specialist groups. task forces. forums. regional associations. projects. and programmes. ArtNities for achlevlng objectfves The IWA continues to develop as the global reference point for water professiona15 working on all aspects of the water cycle. The IWA helps water professionals delNer innovaiive. pragmatic. and susiainable solutions to challenging global needs for safe water and sanitation, within urban areas and river basins. The IWA is a unique global knowledge hub for water professionals and anyone concerned about the future of water. As such. the IWA conrinues io inspire change toward5 our cornrnon V15ion of a water- wise world. Through the Associaiion. members iollaborate to lead the development of effective and sustainable approaches io water management. with emphasis on the science and management of drinking water, wastewater, storm water, and the conservation of water resources throughoui the world. In 2021. the Association took important steps io further expand its dissemination of information and knowledge. especially thai created by it5 members. In particular, the Association moved publication of its journals to publication under a 'subscribe to open, Open Access model. greatly increasing the accessibility of this content. with numerous books also being made available on an Open Access basis.
INToNAL WATER ASslATI(}N Tru5tees' Ileptyrt For the ar ended 31 December 202] Also in 2021. IWA held it5 first vlrtual Congre55. This covered a broad Tange of themes and facilitated acce55 10 high-quality presentations and dTrscussions by IWA members and our wider nets¥ork for participant5 around the world. More gerterally, the Associaiion continued to maintain close working relationships with all of the major iniernational water agencies and associations, partnering with these bodies. and engagin9 members. on joint projects. publications and representation of positions in international forums. The Association has a 51rong and developing outreach prngramme concerned with the transfer of knowledge and skill in waier management from professionals across all countries. With members engaged in the delivery of this pro9ramme. it maintain5 a strong focus on environmental health. hy9iene. and sanitaiion issue5 in lower income countries. Maln charitable actlvltle5 for the publlc benefft The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 and have iaken due regard of the Charity Commission's general guidance on public benefit. Thi5 is achieved by the generation and dissemination of knowledge and best praciice on all facets of the water cycle. Thi5 occurs formally at conferences. facilitated exihanges through the specialist groups. task forces. and other member networks (such as the Young Water Professionals, and Womenin Waterl and through the journals, books and other publications produced by the Association.
INTERNATIONALWATER ASSOCIATI( Trustees. Report For ihe yeaf ended 31 O¢ttmbtr 2021 Open Access publlshlng and the public benefft Important activity during 2021 regarding the core charitable activity of generating and disseminating knowledge and besi praaice on all facets of the water cycle featured the move of journal publication io a 'subscribe to open. IS201 Open Access model. Ar the siart of the year. publication by subsidiary IWA Publishing of ten journals was 5Wltched to S20. The journals include importani and respected waier sector titles such as Waterscience and Technology. the Joumal of Water and Health. AQUA. Water pol. and the Journal of Hydroinformals. The S20 rnodel enables ihe Journals to be free to read and free to publish in. In 2021 . the number of journal papers downloaded nearly doubled, with readers from all over the world contributing io this increase in readership. Meanwhile. article submissions increased by l 0% in 2021 . with the growth coming from all continents. In addition to thbs activity relating io journals. 19 Open Access books were released in 2021 .
INTERNAMONALWATER ASSOOAMON T$t$. Report For the ended 31 DeCeMr 2021 2. GROUP STIIATEGIC OVERVIEW De5Plte the continuing challenges presented by the COVID-19 pandefflic. 2021 was another year of progress for IWA. The year was a relatively strong one from a purely financial perspective. despite the further postponemeni of the World Water Congress & Exhibition to 2022. traditionally a major source of income. due to the global pandemic. The Association coniinued to advance its core mission. visible through our diverse activities and a strong membership base that broadly remained steady in ierms of membership numbers. This progress was supported by IWA'S sirong foundations, which are based on financial prudence and the commitment of all the many people involved - i.e. the Board. staff, members. and partners. They enabled much of IWA'S 2021 anticipated programme and engagement of members to continue. desplte the ongoing pandemic. COVID-19 ha5 brought challenges. especially given that IWA traditionally runs and 5UPPOrt5 many event5. Mitigation measures iniiiated in 2020 were continued and scaled up, with traditional in-person events increasingly being hosted online. Adapting to the new normal of online meetings. workshops, and conferences. we expanded a programme that drew quality speakers and exceptional participation. drawing on substaniial inpui by members in the delivery of this programme. A particularly impressNe example in thi5 respect was ihe Digital World Water Congres5. which ran from May 24 to June 4. 2021 and attracted more than 2,300 regisiered delegates. So, despite challenges. IWA sustained its efforts to implement the objectives of the 2019- 2024 Sirategic Plan. This also included producing a substantive range of high-qualily Outputs. such as publications and reports often prepared with the input of Members. a5 well as providing and supporting knowledge-sharing and neNorking opportunities for and by members. Thi5 level of activity indicates the positive response from members. who have been ever eager to commit their timeto the Associaiion. Building on 2020 having marked the 20ih anniversary under the IWA identity. thi5 level of engagement in 2021 demonstraies the compelling draw
INTERNATIONAL WATER ASSOCIATrON Trustees. Report For the ar end*d 31 Decefflber 2021 of our vision of creaiing a water-wise world. Furthermore. the essential role of our sector has beeft further underlined by the COVID-19 pandemic. raising general awareness of the critical role of hand washing and access to basic services. The resilience shown by IWA in such challenging circumstances has provided reassurance that the organisation is sustainable and adaptable. and ihis outlook is funher supported by the Associaiion's coniinuing ability to attract strong and enthusiastic participation by its membership even urtder these condilions. demonstraiing the strength of IWA'S root5 Wlthin the global water community.
INTERNATIONALWATER ASSOOATION Trustees. Report For the year ended 31 DeEembEr 2021 Key finarKial perfomwice indicators The consolidated financial Statements. as presented. comply with the legal requirements of both the Charity Commission and the Companies Act. Income from charitable activities was £1.047.006 (2020= £1.753.663). her income. including income from irading activitie5. investments. and other sources. was £5.034.396 12020.. £ 5,023.308) giving total income for the year of £6.081.402 12020-. £6.176.9711. After making provision for tax payable in relation to the operaiion in Nanjing, China of £8.415 12020= £ 13.0231, gains on invesiments of £102.256 12020 £40,826) and an actuarial loss on the pension scheme of £- 12020: loss of £40.341). the net increase in group funds was £328.117 {2020 increase of.. £432,030) providing closing group funds as of 3 1 December 2021 of f 2,932,190 12020.. £2.604.073). We have sustained our commitment to deliver on ihe IWA 2019-2024 Strategic Plan. Under the plan.we will achteve for our members a stronger culture of service and a unique value proposition through.. Professional development programmes., Leadership developmeni. inside and outside the A55ociation." Agenda-setting programmatic work to generate pride in our membership.. and Global rteOrking opportunities for mernber5 to connect with people and ideas. We are poised to make greater progress with the plan. having completed the relocation of our LondonheadqLJarters to modern facilrties. This move allowed us to manage the uncertainties around Brexit by transferring the function5 of our operations in ihe Netherlands to the new office. co-locating them with our publishing arm to provide opportunilies for greater synergv.
IMrERNATIONALWATER ASS(KIATI(hY Trustees. Report For the 3T ended 31 DecembEr 2021 3. ACHIEVEMENTS AND PERFORMANCE Programmes Through 2021. IWA made further important progress with numerous initiatives that contribute to the Association's aim of shaping the global water agenda. Designed to facilitate member involvement in issues of strategic importance to the Assochation, these are broadly focused on cities and on waier and wasiewater utiliiies. Within the wider Cities of the Future Programme. in 2021 IWA made progress with its Climate Smart Uiilities iniiiative. including leveraging this aciivity to support participation by IWA at events at ihe COP26 meeiing in Scotland. reinforcing the iniiiaiiwe's goal of supporting water and wastewater utilities in improving their climate resilience while a150 contribuling to a significani and sustainable reduction in carbon emissions. IWA made significant progress with lis contribution in the area of water regulation. drawing in particular on this seg.ment of our membership. As part of the Regulating for Ciwide Inclusive Sanitation (R-CWISI. IWA delivered a 'Call to Aciion. aimed at identifying the need5, opporiunities. and tools for action to support and inspire regulators in their contribution to achieving ciwide inclusive sanitation in the context of the Sustainable Development Goals. The publication has been translated in three languages. In 202 1. the CWIS programme has secured funding from the Bill & Melinda Gates Foundation to professionalise and mainstream the CWIS approach among and beyond sector leaders and professionals, with this aciivity to be rolled out in 2022 and beyond. WA held the 6th International Water Regulaiors Forum virtually in June 2021. This high-level gaihering of regulator5 offered a plarform for policy debates and knowledge sharing across continents durin9 the pandemic. In addiiion. as part of IWA'S work on regulaiion. new Communitie5 of Practice on Adaptive Water Policy and on Regulation were formed, creating focal points for member interaciion and widening of our network.
INTERNATIQNALWATER ASSOCIATION Twstees, Report For ihe year ended 31 December 2021 Programmes (continued) The Digital Water PTograrnme has been a key area of focus throughout 2021. helping waier utilities transition to the next generation of smart water sysiems. Drawing heavily on inpui of our member neork. activities under the Digital Water Programme in 2021 included the release of three white papers. as well as webinafs. podcasts. blogs and a new Community of Practice on Earth Observation Technologies. IWA is also a partner in the EU Horizon 2020-funded research project Primewater. which runs until 2022. Thi5 project generate5 information on the effects of upstream changes on future water quality and quaniiiy. There was further progress with the AquaRatin9 rating tool that can help drive performance improvernents in water utilities. In the past 12 months. NIA has been working with utilities in Sierra Leone and Mongolia. Events With the COVID-19 pandemic having required reschedulin9 of the Copenhagen IWA World Water Congress to September 2022. IWA initiated a global virtual event in 2021 to provide the international waier community especially the Association's membership with an opportunity to preseni and access latest developments across a broad spectrum of waier theme5. IWA held the Digital World Water Congress from May 24 to June 4, 2021 . This event proved to be a greai success. with more than 2.300 regisiered delegates from 95 countries. During the industry-leading conference. 5 1 technical sessions were delivered. each featuring a live Q&A session to encourage interaction among attendees. Some 150 papers were presented across these sessions. Wlth a further 31 O poster presentation5 available. The wider programme featured Special Screenings of three award-winning documentarie5, and the iechnical sessions were available for on-demand viewing for a number of weeks afier the initial event. The Congress 9arnered a great response. with 96 percent of attendees indicatin9 that they were happy or extremely satisfied. In addiiion to the Digiial World Water Congre55. 20 online events Iwebinars. panel events, online forums) with a combined total of more than 7.331 registranrs were organized with the
INTERNATIONALWATER A$ATION Trnsiees. Report For the ar ended 31 Outmber 202T support of our member netsvork. as well as 14 successful conferences Sta9ed by ihe Association's Specialist Group member communities in INe. hybrid. and virtual format. The Source rnaguine The Source is IWA'S quarierly magazine. delivered boih in print and online. It is available to all IWA members as a benefit of membership. The magazine's conteni reflecis IWA'S goal of inspiring a world in which water 15 wisely managed, offering features. viewpoints. and updates to help readers keep up to speed with the issues that shapethe sector. and leading responses to these topics. Recent IOPlC5 covered in detail in 202 1 include.. a round-up of examples of iniiiaiives for stimulating water sector innovation.. examples and strategic perspectives on the use of non- 5ewered sanitation.. leading global case5 illusiraiing growing application of waier reuse.. and tools to support water sector progress Wlth resilience. IWA Publlshlng (IWAP) For IWA Publishing. 2021 was a landmark year. During this year. IWAP 5wiiched ten journals to Open Access. followin9 a model called 'Subscribe To Open. IS20). These include Water Science and Technology. the Journalof Warerand Healrh. AQUA. Warer Policy. and the Journal of Hydroinfomiatics. In addition. 19 Open Access books were released in 2021 . While the $20 journal model provide5 Open Access. libraries continue io pay subscriptions. That income stream enables the journals io be free to read and free to publish in. Open Access has had an instant impact. In 2021 . the number of journal papers downloaded nearly doubled. Readers from all over the world have contributed to this increase in readership. Alon9side thi5 progre5S. the average Impact Factor of the journals (the average number of times each paper is cited in other papers) increased by 37% in the 2020 dataset, which was published in June 2021, driven by a 41 % growth in citaiions between 2018 and 2020. 10
INTERNATthALWATER ASSOCIATION Tru$tees' R*port For the year ended 31 (Jecember 2021 Article submissions increased by l 0% in 2021 . with the growth coming from all continents. In addition. the Net Promoter Score for writers who publish in IWAP journals has surged to 83. indicating ihat they are enthusiastic and happy about their experience. Moreover. Ihe journals are now completely compliani wilh ihe Eu's Horizon Europe programme and the requirements of other national and non-governmenial funding organisations. Furthermore. the organisation has a long-sianding and highly successful publishing collaboration with Elsevier for Water Research. That partnership now also covers ihe Open Access journal Water Research X(WRXI. which will receive lis first Irnpact Facior in 2022. The current projeciion is that it will be in the region of 8.500 - high enough to be placed in the top five of the Water Resources category. IWA also collaborates with Elsevier in the publication of Water Resources and Industry. WRI has been accepted for indexing in the Journal Citation Reports and is scheduled to receive lis first Impact Factor in 2022. Last but not least. there is an ongoing effort to expand the range of non-English publications. Books published in 2021 included a Hindi translation of Wetland Technology. a French version of Climare-resilienr WarerSaferyPlans. and Spanish translations of Performance Indicators for Wa5rewarerSetvices. Treafment Weilands. SrandardDefinirions for WarerLosses, and Wetland rechnology. Young Water Professlonals CYVIP) IWA has coniinued to improve its value proposiiion for IWA Young Water Professional (YWPI rnembers over the past year. delivering open actNities as well as member-only interaction and setvices. IWA invests in YWPS by empowering them both within ihe association and across the water industry. During 2021 . two virtual get-together5 were organised. which attracted 275 attendees. The focus of these events was 'The future of WASH. Uanuary 2021) and 'Next Generaiion Water Action.. Turning Challenge5 into Opportunities, Uuly 2021). IWA hosted ihe Emerging Water Leaders Forum in November 202 1. delivering ihi5 Wlth ihe
1KrERNATI4ALwATEftAS5ATIcl TNsttts' R¢port For ihe yt•r ended 31 December 2021 support of the YWP community. This aitracted a total of 345 registraiions. was held over three days and Trncluded an online panel. a workshop, and networking opportunities. IWA Award5 IWA has a range of awards io provide recognition for noiable conrributions to the water sector Worldwide especially those of IWA members. These include ihe Global Water Award. the Women in Water Award. the Project Innovation Award. the Professional Development Awartl, the Water & Development Award. the Young Leadership Award. and the IWAIISME Ilniernaiional Sociery for Microbial Ecology) Biocluster Award. The laiest awards were celebrated durin9 the openin9 ceremony of the 202 7 Digital World Water Congress. recognising the outstanding achievements of IWA members and water sector professiona15. The IWA Global Water Award reco9nises those individuals who, through inno¥ative leadership and practice. have made a significant contribution to a world in which water is wisety managed. Inspiraiional academic Marcos von Sperling, of Universidade Federal de Minas Gerais in Brazil, won th is acclaimed award. The IWA Women in Waier Award, which celebrates the work of women in the field of water, was won by sanitation adv¢xate Nafisa Baroi. The award recognises the key role played by women, but also seeks to encourage greater inclusion and female leadership in the water sector. The Professional Development Award recognsses waier secior companies that are making a significant contribution to the professional developmeni of their employees. supporting Ihe attraction, development. and reiention of ihe next generaiion of water leaders. Malaysian sewerage company Indah Waier Konsortium won the IWA Professional Development Award for its exceptional record of developing talent in ihe secror. The IWA Young Leadership Award is granted to an exceptional young water professional who demonstrates significant achievements in their career, outstanding leadership. and the poteniial ro play an influential role in the water indvstry in the future. Renowned scientist and engineer Dr Siddhariha Roy had been announced as the award winner prior to the Congress. Moreover, in 2021 there were three recipients of the Honorary Mernbership Award. This award recognises outsianding and sustained contributions of members in relation to ihe waier sector and the Association. The exceptional bn(lividuals who won this recogniiion are Prof. Jiri 12
INTERNAMONALWATER ASSOOATION Tru5tee5' Rep(¥t Forthe ar ended 31 Ile¢tmb¢r 2021 Wanner. from the University of Chemistry and Technology in Prague, Czech Republic, Prof. Mark van Loosdrecht. from Delft University of Technology in the Netherlands. In addition. our outgoing IWA President Diane d'Arras also received the Honorary Membership Award. FINANCIAL REVIEW Commentary on the group's financial result5 for the year are provided under the section on 'key financial performance indicators. on page 6 above. Investment pollcy and perfomiance Preservation of caprtal is the primary objective in guiding Ihe risk profile of the Association's investment policy. After satisfying the primary objective. the secondary objective is ro maximize the return on the investment in accordance with the ethical investment policy. The invesiment position has beenconsidered from both a Euro and Sierling currency perspeciive. The group's investments totaled £1.337.045 as of 31 December 2021 {2020.' £1.221.5521. The valuation shows a realised investment gain of.£6.143 12020." loss of £4.193) and unrealised investment gain of £107.762 {2020= £45,019). The Trustees are Satisfied with the performance in 202 1 and will continue to regularly monitor fuiure performance. particularly given the risk of increased market volatility in the mKlst on a global pandemic. 13
INTERNAMONALWATER AssoaAnON TNstet5' Report Forthe ar endtd 31 Oe(ember 2021 Assessment of golng concem After making appropriate enquiries. the Trustees have a reasonable expectation ihat the Association has adequate resources to continue in operational existence for the foreseeable future. In making this assessmeni. the Trustees have iaken accouni of the reseTres position as of 31 December 202 1 (see below) and the financial forecasts and projections for a period not less than one year from the date of approval of this report and financial statements. During the period from 31 Oecember 2021 to the date ihat the financial siatements were approved, theCovid-19 outbreak has coniinued io cause extensive disruptions to businesses as well as economic activities globally, with the UK being no exception. Following the advice issued by the UK Government regarding employees working from home and othersocial distancing measures. procedures were ifflplemented to facilitate this as far as possible. with a detailed plan effectively enabling normal operaiions whilst ernployees are not physically present in thecharity's offices. However. it has not been possible io maintain the events programme during this period due to country- specific resirictions and global travel constraints. The Trustees recognise that the Covid-19 experiencemay have longer term impacts in relaiion to the willingness of people to atiend international conferences and in response have been actively investigating other potential models io deliver successful evenis. In addition. we are also anticipating a possible reduction in publishing income due to lightening budget5 at universities, resulting in reduced institutional subscriptions from libraries. The Trustees are monitoring thi5 Situation carefully and at the same time developing and analysing Potential mitigation and adaptation responses. Our current reserves leve15 are strong, and ihis coupled with good financial management and discipline,rneans that our medium-term outlook is secure. We do not currently anticipate that Ihe overall financialposltion of the group will be adversely affected, or its financial solvency Ihreatened. The Trustees believe there are no material uncertainties in respect to the group's financial position which may severely curtail its work andlor threaten its ability to operate a5 a going 14
INATI£l¥ALWATER AssoaATION Trusi¢es' Report For the year ended 31 Ozcember 2021 concern. The Trustees iherefore continue to adopt the going concern basis in preparing the financial statements. Further deiails regarding the adoption of the going concern basis can be found in the accounting policies accompanying the financial staremenrs. Reserves policy IWA'5 reserves policy seeks to balance spending ihe maximum amount of its incorne lo meet its charitable objective5. while maintainin9 an adequate level of re5erve5 to ensure uninterrupted operation and PfOV4de time to adjust to changes in financial circum5tanies. Based on the prudent assessment ofthe financial impact of risk evenis on reserves. the trustees have estimated a target level of free reservesof £1 .2M +l- I I Ook. Business plans are set with the aim of maintaining reserves within the target range. The reserves maymove outside of the tar9et range because of faciors such as operational issues, short-term investment requirements. and economic changes. If ihis were the case. rnanagement would adjust business activities over the medium term with the airn of re5torin9 resetves to within the targei range. The group free reserves as of 31 December 2020 are at the level of £ 1.882.439 (compared with 2020.. £ 1.684.491). This is above the intended iarget level and so should enable the Association to better handle the financial impacts of Covid-19. in particular the p05tponement of the World Water Congress. 15
INTERNAnONALWATUi ASSOCLATION Tru5tee5' Report Forthe ar ended 31 December Z021 Principal fundlng Principal funding sources for the charity are membership. conferences (albeit temporarily curtailed dueto the pandemic). Gift Aid Income from its wholly owned subsidiary IWA Publishing Limited. and grant and contraci income from various organisations. The group does not work with any commercial or professional fundraisers and does not solicit donations from the general public. S. RISK MANAGEMENT The Trustees have assessed the major risks to which ihe group is exposed. in particular, those related to the operations and finances of the Association. They are satlsfied ihat SVStems and procedures are in place to miligate our exposure ro the major risks. The Board recognises the importance of identifying and managin9 the risks of the Association and its subsidiaries. A risk management framework. which includes a risk and control register, identifying and prioriiising the Association's key risks. is maintained. The register includes a programme of conirol measures and actions to manage material risks. The risk register is reviewed and updated quarterly by the management. A risk report is presenied to the Finance and Invesiment Committee at the following meeting to discuss the basis for any movements in the risk register. any"emerging risks" and to confirm the summary which will be presented at the next board meeiing. Once per year ihe Board is informed on ihe status of the risk register and the relaied mitigation measures. Key Internal r15k5 for the Associatlon indude". al Lower gift aid for the Associaiion due io lower profit generated by our publishing activities. Mitigation.. Regular monitoring and evaluation of IWA Publishing's financial performance by theBoard- adaptive management systems that allows the Association to respond efficiently to potential changes in future. bl Breaches in the security of" the IT svstems including hacking, unauthorised access. fraud. permanent damage io electronic data, and manipulation of key daia. Miiigation= Manage hardware and software to protect data Irhrough back-up and regular updates), educateemployees through cyber security trainin9 (from Naiional Cyber Security 16
INTERNATIONALWATER ASS(KIAnON rru5tees' Report For the ytar ended 31 December 2021 Centrel. move to Microsoft 365 and cloud-based solutions (all in Azure data centres. which are amongst the safest in world). and CRM systems hosted only in most secure data centres. cl Enforced working from home for a long period potentially leading io lack of cohesion among staff and low staff morale. Mitigation.. move to a hybrid working week with 3 days in the office and two days working remotely- a greaier emphasis of ieam building following reoccupation of the London office in October 2021 with regular surveys and all staff meetings online with individual meetings with line managers. dl Loss of key personnel. Mitigation= Continue io ensure we provide an effective and modern work environment for employees. includlng career development opportunities. Key external r15k5 to the A5(latIon Include: a) Severe disruption to our activitie5 and finances as a result of the COVID-19 pandemic. Mitigation.. the position continues to be Monitored regularly by both the Finance & Investment Committee and the Board of Trustee5 who are developing contingen(y plans - see witFiin Yuture planning" below and -assessment of going concern. above for additional cofflmentary. bl Cancellation of the World Water Congress & Exhibition based on circumstances, rather than force majeure meanin9 no insurance coverage. the incurring of substantial cosis. and receiving no income. Mitigaiion.. follow best practice in signing venue contracts.. ensurefavourable cancellation terms- and insist on broader force majeure clauses. which include causes beyond the conirol of the parties which result in it being inadvisable. illegal. impossible.or commercially impractical to hold the event. c) Reduced income from congresses and events due io lower attendance due to concerns around overseas travel. Mitigation.. develop alternative formats for congresses and events.. stren9ihen internal processes to increase exhibiiions. sale5. and sponsorships. 17
INTERNAMONALWATER ASXKIATION Trusiees, Reptyt For the ar Èndtd 31 December 2021 d) Declining income from membership fees (especially corporate members) dLTre to emergence of alternative neorkIng Opportunities. Miligaiion= to improve the Membership renewal system. enhance the online IWA member portal. and ensure a dynamic programme of member activities. e) Declining "Subscribe to Open. IS201 access revenue beyond 2021. due to lack of motivation among libraries to financially support 520. as their individual Open Access privilege5 are not dependent on this. Mitlgation.. continued advocacy towards the importance of Open Access and the need for collective action among libraries for lis sustainability (enlightenedself-interest). strong focus on increasing impacis factors of journals. and improving iurnaround from when manuscripts are received io when they're acceptedlpublished. Flnanclal rlsk management objectives and policies The management team reviews, on behalf of the Board. matters concerning accounting. financial reporring. and internal ionirols. including the risk register. It also reviews the management accounis and ihe annual report and financial statemenis before they are submitted to the Board of Tru5tee5 anddeals directly with the external audiior regarding the conduct of the audit. 18
INTERNAMONALWATER A55(KIAT1014 Trustees. Report Forthe year ended 31 De£ember 2021 6. STRucfuRE. GOVERNANCL AND MANAGEMENT Constftutlon The Association is constiluted under a Memorandum of Association dated 13 July 1998 and 15 a registered charity (number 10766901. The Articles of Associaiion were m05t recently revised in September 2020 to authorise virtual general meetings. Liability of the members is limited by guarantee and the Association does not have share capital. Members of the Association guarantee to contribute an amount not exceeding £ l in the event of a deficiency of assets on winding up. The total number of such guarantees at 31 December 202 1 was 15 12020.. 1 $1. Method of appolmment or electlon of Trustees The management of the Associaiion is the responsibility of the Trustees who are elected and appointed under the terms of the Articles of Association. As noted earlier. the Trustees a150 constitute the Board of Directors for the purposes of the Companies Act. A special resolution was approved at the annual general meetin9 on 23 September 2020, advocating thai the terms of office of Directors serving on the Board of Directors. and those of the President and Vice Presidents. be extended until 31 May 2021 . A General Meeting was held on 21 April 2021 at which there wa5 a presidential handover from Diane D'Arras to Thomas Mollenkopf. eleciion of Mo Vice Presidents, and the appointment of other offlceholders and a new Board of D1clOr5 for the period April 2021 to September 2022. Policies adopted for the induction and tralnlng of Trustees The Board of Direciors has adopted a programme of trustee training which covers existing and new Board members. New Trustees attend an induction programme and a formal training session coveringgovernance and trustees. legal responsibiliiies. New Trustees are provided with an induction pack ihatcovers their general duties as well as a briefin9 on IWA specific matters such as Strategic and BusinessPlans. financial reports. governance documents, and other relevani reports. All Board member5 lexisting and newl also attended an online tralnlng session on Duties and Responsibiliiie5 of Directors and Trustee5 conducted by Andrew Studd 19
INTERNAnONALWATER AS5(KIATION TNsiee5' Report For the year ended 31 Oerefnber 2021 and Rebecca Cumming from the charity team of Russell Cooke LLP on 19 May 2021. Oryanlsatlonal structure and declslon-making The Board. as Trusiees and Directors, are responsible for the management of the affairs of the Association. It seis ihe strategic direction of the Association. appoint5 the Executive Director (also a Trusieel. and provides financial and programme oversight to the Association. The 8oard generally meets at least four times each year. The continuation of the COVID-19 pandemic prevented in-person meetings of the Board in 202 1. The Board continued its practiie of more frequent {1 I meetings during the yearl. but shorter 12 hours). virtual meetings to discharge its governance and strategic responsibilities. Despite the challenge of a revised approach io meetings, the Board noi only made themselves available. but also made key and composed contributions to decision-making which helped enable a resilient and decisive response to the pandemic. as well a5 effective forward planning. In addition. a General Meeting was called in accordance wilh ihe IWA'S revised articles of association and held remotely on 21 April 2021 . The 2021 ACM and Governing Assembly was also held remotely on 27 October 2021 . at which the audiied accounts of the Company for the year ended 2020 and ihe Directors Report and the Auditors Report were duly received and Thomas Mollenkopf was re-elecied as President of the Association for a term of two years commencing at the 2022 World Water Congress and concluding at the conclusion of the 2024 World Water Congress .
INTERNATIONALWATER ASSOCLAMON Tru5tees' Report Forthe ar *nd¢d 31 D¢¢¢mb¢r 2021 The of Direc¢0 The names of the individuals serving on the Board, at any time during the year of report and up to the date of appmval of this report. are as follows-. Thomas Mollenkopf {President. Chairl Dr Enrique Cabrera Rochera (Senior Vice President) Or Hamanth Kasan (Vtce Presideni) Or Kalanithy Vairavarnoorthy (Executive Director) Dr Asma Elkasmi Diane d'Arras Or Maria Molinos-senante lappoinred on 24th April 2021) Dr Marie-pierre Whaley ffreasurer) Dr Peter Vanrolleghem IAppoinied on 24th April 2027) Dr Rose Kaggwa {Appointed on 24th April 20211 Teodor Popa Virgillo Rivera Walter Kling (Appointed on 24th April 20211 Dr Xiaochang Wang (Appointed on 24th April 202 1) Dryoshihiko Matsui Daniel Nolasco (retired on 24th April 202 1) Helle-Kathrine Andersen {reiired on 24th April 2021) Dr Joan Rose (retired on 241h April 2021) Dr Sudhir Munhy (Senior Vice President) (reiired on 24th April 2021) 21
INTERNAMCWALWATER ASS(KIATION Trustee5' Repon For rhe at ended 31 December 2021 The Board of Dlrectors (contlnued) The Board comprises ihe elected officers and other officeholders. Under the Article5 of Association. allBoard members (except ihe Executive Director) serve two-year terms. The elected officers (President and two Vice Presidents) generally serve for a single term of years but may be re-elected to serrfe a second term. The other office holders will usually serve two terms on the 8oard. aside from ihe Immediaie Past Presideni. who is limited to a single term. The 2020 Annual General Meeting would ordinarily have been the moment to Iransition from one Board to the next. and to hold elections fow the roles of Vice President - both activities typically benefit from ihe opporrunity for face-to-face meeiings. With the 2020 Congress deferred. there was no chance for a face-io-face meeting wilh the Governing Members and so a 'virtual' General Meeling was held in accordance with Schedule 14 of the Corporate In501vency and Governance Act 2020. At this meetin9lt was resolved by special resolution to extend the terms office for ihe Board uniil 31 May 2021 . A Ceneral Meeiing was held on 21 April 2021 at which there was a presidential handover from Diane d'Arras to Thoma5 Mollenkopf. election of Vice Presidenis and the appointment of other officeholders and new Board of Directors for the period April 2021 to September 2022. The Board nomirtations process is o¥erseen by the Governance and Nominaiions Committee and. to the extent P05sible. a practice of rolling retirements is adopred to maintain continuity on the Board. By acceptln9 to serve on ihe Associaiion's Board. Trustees commit io conduci themselves in accordance with the highest ethical standards in carrying Out their responsibilities. The 8oard has therefore adopted an internal Code of Conduct. which provides ethical standards and criteria. All Board members are required to adhere to the Code in the performance of their respon5ibilitie5 fo the Board.
INTEMTIONALWATER ASSIXIATION Trustees. Report For ihe ar ended 31 D¢¢¢mb¢r 2021 Governing Assembty The Coverning Assembly is comprised of ihe representatives of the Governing Members around ihe world. each of whom is eniitled to appoint three representatives to the assembly. The Governing Assembly meets at least annually and is responsible for electing ihe Officer5 of ihe Association and appointing oiher Office holders and approving constitutional changes. As mentioned above. Ihe 2021 AGM and Governing Assembly was held remotely by electronic means on 27 Ociober 2021 . accordance with the articles of association, and the Governing Assembly also met for a General Meeting on 21 April 2021.. The Governing Assembly ensures that the interests of members including Individual. Corporate and Governing Members are represented and it provides oversight and input into Ihe Association's overall direction. The Governing Members of IWA represent the core mechanism for national and regional interaciion with members acr055 a range of issues. Key Comrnittees and Strategic Councll The Association has established a nurnber of key Committee5 and a Strategic Council. each of which plays a 5pecifii role in the Associairon's governance or activities. Further derails on the Strategic Council and of Ihe various Board Committees is provided below. Flnance and Investmem Commlttee Dr Marie-Pierre Whaley (freasurer) chairs the Finance and Investment Committee. Other member5 ofthe committee are Mr Tom Mollenkopf (President). Mrs Diane d'Arra5 and Mr Richard Hoult. Dr Kala Vairavamoorthy (Executive Dirertor) is an ex officio member of the Committee. It reviews. on behalf of the Board. mailers concerning accounting, financial reporting and internal contro15, including the Risk Register. It also reviews the management accounts and the annual report and financial statemenis before they aresubmilted to the Board of Trustees and deals dbrectly with the external auditor regarding the conduct ofthe audit. It also. on behalf of the Board. sets the Investment Manager's mandate and monitors performance on a quarterly basis.
INTERNATIALwATER ASSOOATI(*4 Trustets, Report For the af ended 31 DerembEr 2021 The Govemance and Nomination Committee Professor Hamanth Kasan [Ce President) chairs the Go¥ernance and Nomination Commitiee. Other members of the committee a- Magnus Arnell. Rose Kaggwa. Teodor Popa. Yoshihiko Matsui and Walter Kling. Mr Thomas Mollenkopf (President) and Dr Kala Vairavamoorthy (Executive Director) are ex officio members. The Committee advises ihe Board on corporate governance matters for the Association. including its subsidiaries. committees, and other Association entitie5', assists the President or the Board to ensure ihat appropriate individuals are selected for Various Association entities- and defines and revises the processes for choosing the nominees and winners of the different awards of the Association. The Membershlp and Enga9ement Commlttee Professor Enrique Cabrera (Senior Vice President) chairs the Membership and Engagement Committee. Other members of ihe committee are- Asma El Kasmi. Diane d'Arras. Marie-Pierre Whaley. Perry Rivera. Peter Vanrolleghem, Xiaochang Wang and S Mohan. Mr Thomas Mollenkopf (President) and Dr Kala Vairavamoorthy (Executive Director) are ex officio members. The Committee provides necessary policy oversight concerning the Associaiion members, their expectaiions. and their participation. follows the effectiveness of the recruiiment process. discusses new schemes of membership. discusses the communications pollcy towards different segments of members. and the schemes of honours and awards. Straleglc Councll The Strategic Council plays two key roles Within the Association. It provides strategic input to the Association's Board of Trustees and Governing Assembly. In addition. it provides guidance and assistance io the Association in the development of new activities and in the coordination of key exisiing activities. Key management personnel The IWA Management Team, led by the Executive Director Dr Kala Vairavamoorthy. comprises severalRegional and HQ based Director5.' Daniela Bemfica (Strategic Programmes & 24
INTERNATIALwATER ASSOCIATION Trustees, Report For tht ar ended 31 Decembef 2021 Engagement Director).. Hong Li (Regional Engagement Direttor)- Keith Hayward {Marketing & Communications Director)," Keith Robertson (Operations Director).. Kizito Masinde (Events and Awards Director).. Satkunam Murugathas (Finance Director & Company Secretaryl- Tao Li (Water Intelligence Direciorl and Varghese Babu (IT & Digiial Transforrnation Director). The Trustees consider thai they. together with the IWA Management Team. comprise the Association'skey management personnel. sn charge of directing and controlling the charity. Except for the Execuiive Director. none of the Trustees are remunerated for their services to the charity.The Executive Director is remuneraied las permiued under clause 4 of the charity's memorandum of association) for his role as Executive Direcior. The Execuiive Director's remuneration is set by the non-executive members of the Board based on benchmarking of similar international roles in the charity orNGO sector and having regard to prevailing market rate5. The remuneration of the members of the IWA Managemeni Team is determined in line with those of other personnel within the group. Pay is determined by the Executive Director based on industry benchmarking of similar international roles in the Charity or NGO sector.
INTERNATIONALWATER ASSCKIATION Trusttos. R*port For the year ended 31 December 2021 IWA Publlshlng Llmlted The Association has a wholly owned subsidiary. IWA Publishing Llmited IIWAPI, the principal bu5inessof which is the provision of publishing and information products and services to the internaiional water supply and wasrewater market. This includes the production and distribution of various publications of the Association. Profiis are transferred to the Association by way of Gift Aid. The financial results and year end p051tion of the subsidiary have been incorporated in the consolidated financial staiements accompanying thi5 report. Other related companies In China= Nanjing IWA Science & Technology Co. Ltd. In Indla: IWAT Science and Techno109y Privaie Limited IWA also owns the following companies in full. which have rernained dormant since incorporation.. IWA- Conferences Limited IWA solutions International Limited IWA Clobal Enterprises Limited (previously named Aquarating Limited) IWA also created NGOS in Kenya called IWA Africa - and in India called IWAI Water Foundation. Boih have remained dormant since their creation_ 7. FUTURE PLANNING IWA'S 2019-2024 Strategic Plan has been in operaiion since ils adoption ai the Governing Assembly atthe 2018 IWA World Waier Congress & Exhibition in Tokyo. Thi5 plan remains effeitive as the strategic foundation for the day-to-day activities of the organisation. We are actively progressin9 further implementation of the plan. by working wilh our members. strengthening our Association's membership value. providing insights into trends for the
IKrERNATIONALWATER *SSOCLITKIN rrusiee5' Report For the r eThd 31 D¢c¢rnb¢r 1021 sector and beyond. being a platform for members to exchange knowled9e and accelerate the diffusion of innovation. and from collaborating to address ihe SDG challenges. Importantly. the IWA Strategic Plan refers to diversily. This 15 backed by a strong Board-level commitment io chafflpion diversiiy ihroughout the organisation. Actions to progress diversiiy include working across the Assoiiation'5 many struciures. rotaiing role5 to extend this diversity. and monitoring our progress. For 2022, IWA anticipates being able to escalate its plans of achieving more comprehensive progress on diversity. especially in term5 of SUPPOrting and securing more equal panicipation by developing countries and individuals and organi5ations from developing countries. with the support of funding received frorn ihe 8111 & Melinda Gates Foundaiion. We will also continue to work to make our published material more easily accessible online and available in different languages. so as to enhance our coniribution to resolving water challenge5 around the world. This will be done by building on the progress with Open Access achieved during 2021. Also in 2022. IWA will roll out implementation of its new di9ltal membership platform. on which work has been underAfay throughout 2021. This platform will both improve on core needs. such as membership administration. and provide ihe basis for enhanced and expanded functionality in ierms of informaiion sharing and of newrking, all of which will support a strengthening of IWA'S membership offering. 27
INTERNATIONAL WATER ASSCthTION TrusteEs' Report For ihe Ye•f ended 31 December 2021 Flve-year goals The Strategic Plan is based on the following five commitments for the IWA to achieve over the comingfive years= 1. An engaged and balanced mÈrnber5hlp - The IWA will have an engaged membership that isglobally representaiTrve of the multiple segments. actors. and practice areas of the water sector. 2. A Source for leading-edge Tter knowledge - The IWA will have strengthened our position as an authoriraiive source and a global reference point for water knowledge. addressing and informing on emerging and potentially disruptive trends within the sector and wider world. 3. A space for professlonals to exchange water knowledge - The IWA will have provided a broad range of professional conteni and programming thai is relevant and widely valued by thewarer sector worldwide. 4. A brldge between research and practke - The IWA will play a pivotal role in bTidging the chasm beThveen research and practice to accelerate the developmenr and diffusion of innovation in ihe global water sector. S. A support io ihe implementathin of SDGS - The IWA will support and prornote the Sustainable Development Goals and strengthen the sector through professional and capacity development so thai people and couniries can pursue their ambitions in relaiion to water related SDGS. 28
INTERNATIONALWATER ASSOOATION Trnsiees, Report Foi iht ar ended 31 December 2021 8. TRUSTEES. REPONSI8ILmES STATEMENT The Trustees (who are also Directors of Internaiional Water Association for the purpose5 of company law) are sPonSible for preparing the Trustees. report and the financial statements in accordance withapplicable law and Uniied Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trusiees to prepare financial siatemenis for each financial year which give a true and fair view of the state of affairs of the charity and the group and of income and expenditure ofihe group for ihar period. In preparing these financial statement5. the Tru5tee5 are required to.. Select suitable accounting policies and then apply them consistently- observe the methods and principles in Accounting and Reporting by charitles: make a Statement of Recommended Practice applicable to charities preparing their accounis in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland(FRS 1021- make judgments and estimates thai are reasonable and prudent., slate wheiher applicable UK Accounting Standards have been followed. subject to any materialdeparture disclosed and explabned in the financial siatement5- prepare ihe financial statements on ihe going concern basi5. unle55 It is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at time the frnancial positron of the charity and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. the Charities Act 2011. and regulations made thereunder. They are also responsible for safeguarding the assets of the chariry and the group and hence for iaking reasonable step5 for the prevention and detection of fraud and other irregularities. The Tru5tee5 are responsible for the rnainienance and integrity of the corporate and financial information included on the group's website. Legislaiion in the Uniied Kin9dom governing the preparation and dissemination of financial staiemenis may differ from legislation in other jurisdictions.
Twst¢es' Report Forthe r ended 31 Deornber 2021 Dlsclosure of Informatlon to audllor In so far as ihe Trustees are aware= there is no relevant audit infomation of which the group's auditor 15 unaware- and the Trustees have taken all steps that they ought to have ken to make.themselve5 aware ofany relevant audit information and to establish that the auditor is aware of that informatlon. This confirmation is glven and should be interpreted in accordance with ihe provisions of s418 of thecompanies Act 2006. Approved by the Trustees and srgned on their behalf ty. Mr Thomas Mollenkopf President and Chairman Approved on.. 6 June 2022
Independent auditovs report To the member5 of Iniematlonal Water A550clailon Independent auditor's report to the members of International Water Association Opinion We have audited the financial statements of International Water Association (the 'parent charitable company'l and its subsidiaries (the 'group') for the year ended 31 December 202 1 which cornpri5e the consolidated statement of financial activities. the group and parent charitable company balance sheets. the consolidated statement of cash flows and the notes to the financial 5tatement5. including a summary of significant accounting policie5. The financial reporting framewlork that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards. including FRS 102 The Financial Reporting Srandard applicable in rhe UK and Republic of Irelandlunited Kingdom Generally Accepted Accounting Praciice). In our opinion. the financial siatementS-. 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'5 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 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 Standard5 on Auditing IUK) (ISA5 (UKII and applicable law. Our responsibiliiies under those standards are further described in the Auditor's responsibilitie5 for the audii of the group financial staiements section of our report. We are independent of the group and pareni chariiable company in accordance with the ethical requiremenis that are relevant to our audit of ihe financial statements in ihe UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe ihat the audit evidence we have obtained Is sufficient and appropriate io provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that ihe trustees, use of the going concern basis of accounting in the preparation of ihe financial siaiernent5 is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to evenis or conditions ihai. individually or colleciively. may casi significant doubt
Independent audltorfs report To the members of Internatlonal Water Assoclatlon on International Water Association's ability to rontinue as a going concern for a period of at leasi twelve monrhs from when the financial staiements are authorised for issue. Our responsibilities and the responsibilities of the trustees wrth respect to going concern are described in the relevant sections of this repon. Other Information The other informaiion comprises the informaiion included in ihe trustees. annual report, including the strategic report, other than the group financial 5taternents and our auditor's port thereon. The Irustees are responsible for the other inforrnaiion contained within the annual report. Our opinion on the group financial statements does not cover the other information. and. excepr to the extent oiherwise explicitly stated in our report. we do not express any form of assurance conclusion ihereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsisient with the group financial staiements or our knowledge obtained in the course of the audit or otherwise appears io be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to deterrnine whether this gives rise to a material misstaiement in the group financial siatements 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 nothin9 to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on ihe work undertaken in the course of the audit.. The informalion 9iven in the tru51ees' annual report. including the straiegic report. for the financial year for which the financial statement5 are prepared 15 Consistent with the frnancial staiements The trustees, annual report. including the strategic report has been prepared in accordance wilh applicable legal requirement5 Matters on which we are required to report by exception In ihe lighi of the knowledge and understanding of rhe group and the parent chariiable company and their environment obtained in the course of the audit. we have not identified material missiatements in the trustees, annual report. including the strategic report. We have noihing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires US to report io you if. in our opinion.. 32
Independent audi10$ report To the members of Internatlonal Water Assoclatlon Adequaie accounring records have not been kept by the parent charitable company. or returns adequate for our audii have noi been received from branches not visiied by us., or The parent charitable company fTrnancial statements are nor in agreement with the accounting records and returns., or Certain disclosures of trusiees. remuneration specifled by law are not made- or We have not received all the information and explanations we require fDr our audit.. or Responsibilities of trustees As explained rnore fully in the statement of trustees. respon5ibiliiies set our in ihe trustees, annual report. the trustees Iwho are also the direciors of the pareni charitable company for the purposes of company law) are responsible for the preparaiion of the financial statements and for being satisfied that they give a true and fair view, and for such iniernal conirol as the trustees determine is necessary 10 enable the Preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the trusiees are responsible for assessing the group's and the parent charttable company's ability 10 COFltinue as a going concern. disclosing. as applicable. matiers related 10 90in9 concern and usin9 the going concern basis of accounting unless the irustees either intend to liquidaie the group or the parent charitable company or to cease operations. or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and secrion 151 of the Charites Act 2011 and report in accordance with ihose Aits. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstaremeni. whether due to fraud or error, and to issue a auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always derect a maierial misstatement when it exists. Missiatements can arise from fraud or error and are considered rnaterial if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users iaken on the basi5 of these financial staiements. Irregularities, including fraud. are instances of non-compliance with law5 and regulaiions. We design procedures in line with our responsibilities. outlined above. to detect material mi5Statement5 in respect of irglarItIes. including fraud. The exteni to which our procedures are capable of detecting irregularities. including fraud are set out below. 33
Independent audltorfs report To the members of International Waier Assoclatlon Capability of the audit in detecting irregularities In ideniifying and assessing risks of material mi55tatement in respect of irregularities. including fraud and non-compliance with laws and regulations. our procedures included the following.. We enquired of managemeni. which included obtaining and reviewing supporting documentation, concerning the group's policies antl procedures relaiing io.. Identifying. evaluating. and complying wilh laws and regulations and whether they were aware of any instances of non-compliancè". Deiecting and responding to the risks of fraud and whether they have kno¥vledge of any actual, suspected. or alleged fraud: • The iniernal controls established to rnitl9ate risks related to fraud or non- compliance with laws and regulaiions. We inspected the minutes of meeiings of those charged with governance. We obiained an understanding of the le9al and regulatory framework that the group operates in. focusing on ihose laws and regulations rhai had a material effect on the financial statements or ihat had a fundamental effect on the operations of Ihe group from our professional and sector experience. We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We reviewed any reports made to regulators. We reviewed the financial statemeni disclosures and tested these to supporting documentaiion to assess compliance with applicable laws and regulaiions. We performed analytical procedures to identify any unusual or unexpected relationships ihat may indicate risks of material misstatement due to fraud. In addressing the risk of fraud ihrough managemeni override of conrro15, we tested Ihe appropriatene55 of journal entries and other adjustments. assessed whether the judgement5 made in making aicounting estimates are indicative of a potential bias and tested significant transactions thai are unusual or those outside the normal couTse of business. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities. includin9 those leading to a material missiatement in ihe financial statements or non-compliance with regulaiion. This risk increases the more that compliance with a law or regulation is removed from the events and iransaciions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather ihan error, as fraud involves intentional concealrnenr. forgery, collusion, omission or m1srepre5entatn. 34
Independent audor'S report To the members of Intematlonal Water Assoclatk)n A further description of our responsibilities is available on the Financial Reporting Council's website ai.. www.fr ibilities. This description forms parr of our auditor's report. Use of our report Thts report is made solely to ihe chariiable companWs members as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section l 54 of thai Act. Our audit work has been undertaken $0 that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than ihe charitable company and the charitable company's member5 as a body, for our audit work, for this report, or for ihe opinion5 we have formed. Jonathan Orchard Isenior statutory auditor) 10 August 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor In¥icta House. 108-114 Golden Lane. LONDON, ECI Y OTL Sayer Vincent LLP 15 eligible 10 act as auditor in terms of seciion 1212 of the Companies Act 2006 35
Interhailonal Water Assoclailon Consolldated staiemenr of lfjhantial adi¥ftles lirforporaring an income and expendirurè ac£¢yJnt) For the ar ended 31 December 2021 2021 Toial Unrestricied 2020 Total Unre51ri(ied Re1(1¢ Re5tricred NoTe Intome from= Mernbership subscriptKJns Income from projects and #rants Incorne frorn <onferen£es her ifading ICIIVITies Incorne frorn publication5 Incorne frorn Nanjing tsperatio• Other sales income Inve51rnents OthEr 733.927 56.980 138.069 733.927 175.010 138.069 757.672 757.672 377,946 18.045 118,030 377.946 18.045 4.104.502 837.191 68.393 24.310 4.104.502 837.191 68.393 24.310 4.436.967 527.965 34.926 23.450 4.4a6.967 527,965 34.926 23,4SO Tthal In<ome 5.963.372 118.030 6.081.402 5,799,025 377.946 6.176.971 Expendirure on.. Raising fund5 Invesimeni maTha9ement costs Publications costs Nanjing operaiions costs 1.074 1.969.540 599.342 11.074 1.969.540 599.342 10.031 2.073.353 452.22 10.031 2.073,353 452.228 Engaged & collaboraiive wnembefship Source of leadlng-edge water knowledge Platform for water knowledge exchange Bridging 5tIEn£e io pracrice 1.59B.509 400.691 385.995 706.29S 1.598.509 400.691 385,995 881.975 1.829.627 383,110 345.452 356.881 1,829,627 383.110 345,452 638.602 175.680 281.721 Total expenditure 5.671.446 175.680 5.147,126 5.450.682 281.721 S,732,403 Net Income I It¥pendiiur¢l belpr¢ iaxatlon 291.926 (57.650) 234.276 348,343 96.225 444.568 Taxation on 14anjihg operarion (8.41 S) (8.415) {13,0231 113.023) Net Income I lexpendlturel after taxatlon, bEfore net 9lhs on In¥tSfments 283.511 (57.650) 225.861 335.320 96.225 431.545 Nei 9ains on ithvestmenis 102,256 102.256 4Q.826 40.826 Net Income I Itxpendiiurtl for the year 385.767 (57.650) 32B.117 3?6.146 96.225 472.371 Transfers bEts•een funds 123,344) 23.344 Net Income I lexpendlturel before other reco9n15ed galns and losses 362.423 (34.3061 328.117 376.146 96.225 472,371 Aciuarial losses on defined benetit pension Schemes {40.341) 140,3411 Net mo¥emeni ITh funds 362.423 (34.3061 321.117 335,805 96.225 432.010 Rtconciliarion of funds.. Total fund5 brought forward 2,524,804 79.269 2.604.073 2.188.999 (16,9561 2,172.043 Total funds cairled foTh¥ard 2,887.227 44.963 2.932.190 2,524.804 79,269 2.604.073 l of the abthe results are éerwed frorn KtMtie5. Thvtvre no Oth•r rtO9nised 9aiThS Ot losses other those 5r4ted abo. MDvEmEntS i firnés are di5<1tssed Ilote 20a its ihe nfiancial stattmonts. 36
International Water Ass¢>clailon alance sheets Company no. 03597005 r202 The group 2021 The tharfty 2021 2020 2020 No Flxed ass*ts'. Iniangible assers Tangible a55ets Investmenis i 06.700 443.247 l.J37.045 174.562 560,332 1.221.552 396.429 1.487.048 488.505 1,371,555 1.886,992 1,956.446 1.883.477 1.860.060 Current assets: Stock Oebtors Cash at bank and in hand 52.953 1.733.713 2.940.672 44.701 2,293,509 1.381.923 14 1.565278 2.076.380 1.698.129 728.116 4.727.338 3,720,133 3.641.658 2.426.245 Uablllile$- Creditors.. amounts I1n9 due within ont year (3.562.I401 12.952,5061 (2.927.794) 11.788,6811 Net ojrrent assets 1.165,198 767.627 713.864 637,564 Total a55ets les5 current Ilabllltle5 3.052.190 2,724.073 2.597.341 2.497.624 Creditors: amounts fling due after one year (120.0001 (120,0001 {120.0(M)) 1120.0001 Net assets excludlng pen$Th asset l Olablllty) 2.932.190 2.604.073 2.477.341 2.377.624 Defined benefit pension scheme asset Total net assets 2.932.190 2.604.073 2.477.341 2,377.624 Funds.. Re5triaed income fund5 Unrestricted incorne funds- DeslgnateL1 funds Revaluation reserve General funds Non-charitable subsidiary funds Pension reserve 20a 44.963 79,269 44.963 79.269 I.¢YJl.796 327.004 .SSS.427 898,537 225.419 1.400,848 549.947 327.004 1.555.427 368.505 283,645 1.646.205 Total unrestiicted funds 2.887.227 2.524.804 2.432.378 2.298.355 Tts1 funds 2.932.190 2.604.073 2.477.341 2.377,624 Approve tees on 6 June 2022 and signed on iheir behalf by Thornas Mollenkopf Presldent and Chairman 37
Internatlonal Water Assoclatlon Consolidated statement of cash flows For the ar onded 31 December 2021 Note 2021 2020 Cash flows from operatlng atIeS Net income for the reporting period las per the statement of financial aaivities} Depreciaiion charges AmorEisation charges Gain5 on tnvestment5 Dividends. interest and rent from investments Finance and adminisirarive cost5 in respect of defined benefit pension scheme Foreign exchange loss Ilncieaselldecrease in stocks Ilncreaselldecrease in debtors Increase in creditors 328.117 472.371 130.624 67.862 (102,256) (24.310) 124,474 67,862 140.8261 123,4501 190.0001 41,699 7.245 {801.3871 355,778 264 (8.252) S59.796 609.634 Net cash provlded by opeIng aCtItIeS 1.561.479 113.766 Cash flows from Investlng actmtles: Invesimeni income Purchase of tangible and intangible fixed a$5ets Proceeds from sale of investmenis Purchase of invesiment5 Change in cash held by investment manager 24.310 (13.539) 233.110 (239,580) (7.031) 23.450 1519, 5621 439.008 1456,7891 Net cash provlded used In Inve5tlng aalvliies (2.730) 1513.893) Change In Cash and cash equlvalents In the year 1.558.749 1400,127) Cash and cash equivalenis at the beginning of the vear Change in cash and cash equivalents due to exchange rate movements 1.381.923 1.792.506 7.958 Cash and cash equlvalents at the end of the year 2.940.672 1,400.337 38
Internaiional Water A$allOn Note5 to the ftnandal statements Ithe ar ended 31 December 2021 l Accounting polIe5 a) Cornpany status The A550ciation 15 a charitable company limited try guarantee and is incorpwated in England. The registered office addre55 15 £¥pori 6uilding. First Floor. I clo Cre5cenr. LMdon. E14 28A. bl Basls of preparatlon and consolldaiion The financial statement5 have been prepared in accwdance wiih A£couThiing and Reporting by Charities". Statemeni of Recornmerbded Pracri<e appli¢ablt io thariiies preparin9 rheir atcounts in accordance wilh the Financial Reporring Sianlldrd applicable In the UK and Republi£ of Ireland (FRS 102)- (Charities SORP FRS 102). The Financial Reportin9 Srandard appllcable in the UK and Republic of Ireland (FRS 1021 and the Companies Au 2¢)06. These finan<ial sratements consolidate ihe results of the Ass¢ciation and Its wholly-rmned 5ub5idiaries IWA Publishing Limite¢ and Nanjing IWA Science & Techndogy Co. LEd. Transaaions and balanie5 beeen rhe chariry and its subsidiaries have been eliminared From rhe consolidared financial 514iemerbts. Balance5 be¥@en the eniilies are disclosed in the nore5 of ihe charity's balance sheet. A separate statement ol financial actiMtie5. or Income and expendiiure acc(wnt, for the Association Itself Is not presented because ihe charity has taken advantage of ihe exemprions afforded by se(tiorb 408 of the Companie5 Acr 2006. Assets and liabilities are initially recognlseo ai hisiorlcal (051 or transaciion value unless orhtnwise Sle0 in the relevant accountin9 policy or note. The financial statement5 are prepared in steding. which 15 Ihe fvnaional oJrren(y of the company. Monetary amounts In these financial 51aremenis ale rourbded io rhe nearest £. c) Public benefit entity The charity meets the definitron of a public benefit entity under FRS 102. dl AssessmeTrt of goln9 concern The Trustees a55es5 wheiher the use of going concern 15 appropriate i.e. whether there are any matenal unceriainties related to evenis or conditions that may cast 51gnificant doubt on the ability of the company to coniinue as a gtxn9 concern. The Trustees rnake this a55essment in re5pe<t of a period of ar leasi one year from the dale of authorisation for issue of the financial statements. In forming their assessmeni. the Trusiees have also given consideration io financial forecasts and busine55 plans. including group entities. They have also given ¢ue c¢nsideraiion io Ihe irnpart of the COVID-19 pandernic on ihe group's operations. wSlh a focus on Its effe(t on ihe Associaiion's membership. cusiorners. suppliers. employees and invesimenrs. The Trusiee5 acknowledge ihe disruption Caused by the pandÈmit io the 9roup's éay-to-day operations and confirm rhat ihey noi consider thi5 to be cause for marerial uncertainty in respecr of the group'5 abiliry io conrinue as a going concern. The group has Successfully emFAoyel contin9ency plans, and trustees have considered that the charily ha5 5ufficieni cash resource5 to continue for the foreseeable ftsiure. despite the current crisis. The group balance sheet as at 31 December 2021 reports net curreni asseis of £XXXX 12020". fiet currefir assets of f 767.6271. The Trustees also hi9hli9hi rhai the inve5rment5 rarried wiihin fixed assets of £XXXX (2020.. £1.221.552) are available io the Association in order to meet wkIng capital needs If requiied. and only invested in ordei io piovide a better return on siJrplu5 funds which are not immediaiely needed_ The TTusiees have therefore concluded that the group has adequate re50urce5 to conrinue in operarional existence for the foreseeable future and to rneet liabiliiie5 as they fall ilue foT a period of ai1east 12 months f11Th9 the Trusiees, approval of Ihese financial statements. Further cornmeniary on the Trustees, assessrnent of going concern Inay be found within the Trustees, report accompanwng the financial staiements. 39
Internaiional Waier Assoclatlon Notes to the financlal statemen For the ar ended 31 Decernber 2021 l Accounting policie5 1£<)ntinutd) el Criilcal ac(OUniSng e5tirnates and areas of judgement Preparation of the tinancial 5raiemenr5 requires ihe rru5tees ahLI management ro make si9nificaTrt judgements and estimates. The items in ihe financial Statements where these jud9ements and estimaies have been maée include.. The esiimate of the group's liability in respect of a defined benefii pension scheme prewou51y offered to IWA staff. the valuarion of whi<h ha5 been esrimared by an independent auuary iakin9 account of various assumptions ncluding the long iefm rates of ieiurn on scheme assets, the long-term anticipated rate ol Inflation. Ihe life expecun(v of 5cherne parricipanis. and the discount rare applied.. The e5timaie5 of the useful economic Ir¥es of tangible and intangible fixed a55ets used io deiermine rhe annual depreciation chawge-. The estimaied future cost of reinsiating short term leasehdd property to its original conLlition in line wirh the ierms tsf the lease agreemeni The assumpiions adopteé by ihe trustees and management in determining the value of any de51gnaiions required from the chariivs general unrestricied fuTrds'. The basis on which suppori c05rs have been allocated acTOSS expendiiure headings". and Judgements and a55UrnPlion5 made In foreca5tirig future income and e¥penditure for the purposes of assessing whether the going concern basis of preparing rhe finanoal starement$ Is appropriate. fj Income All income is recogniseé once the Association or group has entitlement to the incorne. any perforrnance condiiions arrached to the income have been mei. it is probawe thai Ihe incoffle will be received and rhar ihe amount of income rKeivable can be measured reliably. Donaied services or facilities are recognised when ihe Association or gioup ha5 control over ihe iiem. any conditions associated wlth the donated itern have been met, the re¢*pt of economic benefrt ffom the use of the iiem is probable and the etonomic beneht can be rnea5ured reliablv. On receipt, donated gifts, professional serrices donated facilities are re(0gnised on the basi5 of the gift to the A550ciarion or group which 15 the amount the Association N 9rcwp Wld have been willing ro pay rts obiain servi<es or facilities of equivaleni economic benefii on the open rnarkei." a correspondtng amouni is then recognised in expenditure in ihe period of receipt. Interest on funds held on #ep051t is includefl when receivable and the amount un be measured rellably by the company,. thi5 15 normally Jpon notificarion of ihe interest paid or payable by rhe bank. gl Fund accounring General funds are unre5rricied funds which are available for use ai rht dis(teriofi of Ihe Trustees in fuctherance of the gener31 objectives of the Association and which have not been desi9nated f Oiher purposes. Designated funds comprise of Urtrèstriu funtls that have beon set aside by the Trusiees for partiCLtlar purpose5. The aim and Use of each de519nated fund is sei out in the notes to the financial staternenis. The investments revaluarion reserve is an unrestricted fund and reflects the balance included wihin fixed a$5er inve5trnen15 which has l$ell as a consequence of Ehe cumulative impact of markei value rhanges 10 tho Associaiion's investment assets. Resiricied fund5 are fund5 which are io be used in accordance with speufbc re5rricEiOn5 IrnP05ed by donor5 or which have bene raiseé by ihe Association foi particular purposes. The costs of raisin9 and administerin9 such funds are char9ed againsi the specific fund. the alm and use of each restrict fund is sei (t In the notes to the financ1al 5taiemenis. Inve51rnenr incorne. gains and 1055e5 are allocaied to ihe approprtate fund. hl Expenditure and Irrecoverable VAT txpenditure Ss recognised once there is a legal or construtttve obligation to rnake a paymenr To a Third parry. IT Is probable rhat settlernenr will be reouired and the amwnt of rhe obli9aiion can be measured Teliably. All expenditure Is accounted for on an accruals basis. All expenses including support cosis and governance costs are allcKaied io the applicable expenditure headings. Irrecoverable VAT is thar9ed a9ainsi rht expenditure headin9 fot which it was incurred. The e51irnated c05t5 of reinstaiin9 Short term le3sehold property 15 also capitali5ed ai ihe poini of the modification works being urbdertaken. 40
Internailonal Water Assoclailon Note5 to the flnantial staiements aren l December 2021 Accouniln9 policits Icmtinyedl 11 Allocation of 5UPPOrt costs Resources expended are allocated to the particular a(lity where the cost relates directly to that acri¥iiy. However. the c05t of overall ¢irection and administration of each a(tiwty. comprising the salary and overhead c0515 of the central funcrion, is apportioned on the following ba515 which are an estimate. based on staff itme. of ihe amwnr atrributable to each activitv. Where inforTnation abour ihe airns, objtcrive5 and projecr5 of the tharity 15 prwdttl ro potential boneficiaries. the costs as5(Kiated with this publlcity are allocated to chaiitable expenditure. Where such informaiion aboui the aims. objeciTrve5 and projects of Ihe tharity is also prwded io p¢xeniial donors. actiwty C05t5 are apportionel beNeen fundraisin9 an+J chariiable aCtirieS on the tjasis of of literature occupied by each activity. Engaged & collaborative Membership Sourte of leadin9-edge water knthyledge Plarform for water knrmledge exchange Bridging science ro practice Support costs • CoverThance costs 12% 1% Suppori and governance (0515 are re-allocated to each of the attivities on the following basis which is an estimate, based on Staff rime, of ihe am¢xJni attributable io each aaiviiv. Éngaged & collaborative rnembership 5ourte of leading-edge water kn¢hvledge Plarforrn for waier kn¢xledge exchange Bridgir¢9 science 10 pracrice 25% 25% 25% 25% Governance c05l5 are the cost5 a550ciaied with ihe 9overnance arrangement5 of the chariiy. The5È Costs are associated wlth constiiuiional and staEUTOry ¥e4uiremenis inclule any c1$ assooated with the stiategic management of Ihe Iharity's activitie5. Jl Tangible fixed assets Assets are capira115ed where the purchase price exceed5 £500. Tangible fixed assets are stated at cost less depreciaiion. The esiimaEed cosi of reinstating shon re¥m leasehold properries is a150 capitalised ai rhe point of the rnodifi(arion work5 being undenaken. Depreciation 15 wovided at rates (alculated to write off the cost ol the fixed assets. le55 their esiimaied residual value over thei expeaeé useful live5 on rhe [ll19 ba51S.' Leasehold irnprovemen15 Fixture5 and fittirigs Office equipment Cornpuier equipmefir l O years 51Taighr line 5-6 years stiaight line 6 years 5trai9ht line 3 years straight line kl Intangible fixed a55ets Assets are capitalised where the puichase price exceeds £500. Iniangible fixed assers are 5rated at Cost less amort15aiion. Arnorrisarion is pio¥ided ai rates calculated to wriie off the cost of fixed assets, less their estimaled residual value, over rheir experted useful lives on the follr**in9 base5'. Computer equiprneni 5 years strai9hr line 11 Invesiments Investrnent5 are a form OF basic financial insirument and are initially ie£ogni5ed at iheir rran5acrion value and subsequently measured at Their fair value as at the balance sheet date usim9 rhe closin9 quoted market price. Any change in fair value will be recognised In Ihe 5taternent of financial acti¥Atles. Investment gain5 and lusses. wheiher realistd or uhrealised, are combined ané shown in ihe heading "Nei gainsl(1055esl on invesrrnents- in ihe 51atement of financial atiiwiies. The charity does not acquire put options. ¢eiivatives or other ccwnplex financial instruments. Investments in subsidiary companies which are unlisted are rArried on the A550ciation's balance sheet ai c05t less impairment. 41
Internatlonal Water Assocbatlon P4otes to the flnanclal statements For ihe ar ended 31 De l Accountlng polltlts Icontinuedl rnl Siotks Stock5 are valued al the lower of (051 aTrd nei reali5able value aftef rnakiny due allowtn£e for obsolete and slthv-moving stock5. Cost Includes all direct costs antl an appropriate proportion of fied and variable overhead5. Net reali5able value 15 (he price at which siocks can be sold in the normal cwrse of business after allrh¥in9 for the costs of reali5airffl. nl Taxation The Associati is an exempt charity wilhin the meanin9 of schedule 3 of Ihe Charities Act 2021 and is con51dered to pa55 the tests sei out in Paragraph I Schedule 6 Finance Act 2010 and therefore li rneeis ihe definiiion of a charirable company for UK corporation rax purptsses. The group's liability for rurrellt tsx in this fe9aftl is calcvlattd using tax rates that have been enacied or substantively enacted by the end of the reportin9 period thIn the relevani jurisdiction. The gioup Incurred tax charges in Nanjing. China. ol Debtors Trade and other debtors are recognised at the 5eitlement amwnt after any trade discount offered. Prepayments are valued at the arnouni repaid net of any trade discounts due. pl Cash at bank and In hand Cash at bank and in hand includes (ash and Short ierrn highly liquid inve5tment5 wilh a shon maiurity of rhree months or less from the date of acquisltion or openin9 of ihe deposii OT Similar accouni. q) Creditors and provislons Creditors and provisi?ns are reco9nised wheie the Association has a present obligation resulting from a pasr eveni that will probably result In the transfer of funds to a third party and the arnount due to settle the otsligaiion be measured or esrimated reliably. CfediroTs and prowsions are normally recognised ar iheir settlement amount after allowing for any Irade di5counis due. Long term liabililies are discounted where the effett of discouniing would be maierial io the accounis. r) Flnandal Insiruments The Association only has financial assets and finaftcial lia-lItieS of a kind that qualify as basic financial insirurnenrs. Ba51( financial Insiruments are inirially reco9ni5ed at rran5acrion Value and subsequently measured ai their settlement value wilh the exception of bank loans which are subsequently measured at amcKtised cost using the effeciive iTrreresi rnethod. sl Forei9n currEncTres Transaclions in foreign currencies are translated into sterling at the rate ruling on rhe date of the transaction. Monetary a55e15 and liabilities denominaied In Foretrgn currencies are iranslaied inio srerling ai rate5 of exchange rulin9 at ihe balance sheei date. Exchange gains and losses are recognised in the Statement of Financial Activities. tl Penslons Group employees are able to partictpate in defined contribution schemes administrated in the UK. Netherland5 and China. The a55et5 of rhe schernes are held Separately from ihose of the group_ In addition. IWA Publishing Ltd makes contributions inio the personal pension plans for sorne of lis employees. The costs of providing pensions are charged to ihe SOFA as incurred, i.e. in line with the contribution PaYae by The 9roup in ihe per_ The Associaiion also previovsly offered employees access io a defined beftefit pension scheme adminisiered in ihe UK. The defined benefit pension 5cherne 15 c105ed 10 fviure entrant5 and there are no rernaining acrive mtmbers in the scheme. For the delined benefits scheme. Ihe Statemeni of Finanoal Attivities ISOFA) is charged with the cost of providing pension benefits earned by former employees in ihe peric#J. The expected return on pension scheme a5sers less rhe interest on the pension scheme liabilities Is intluded as part of ihis charge. Artuarial gains and losses arising in the period for the difference beten aaual and empecred retum5 in the pension scheme a55ets. experience gain5 and 1055e5 on pension scheme liabiliiies and Ihe effeci of changes in demographics and financial assumptions, are included as after reco9nised gain5 and losses in the Staiement of Financial Activifies. The accumulated pension Scheme deficil IS feco9nised in full and included in the balance sheer. However. in the event ihai rhe scheme Is in net 5urplu5 POSlllOll. the asset is noi fecognised in the balance sheet as it is nor expected that the syrplys will tye realbsable by the Assooation until after buying Out pension benefit5 to the pensione¥s. ul Conferences The World Water Congress is held bi-annually. Expenditure incurred in preparing for the Congress Is also carried ftslward and recognised In rhe year of rhe Congress irself. excepr for rhe cosi of siaff rimt %Yhich is reco9nised in the financial year in whlch the sernces were rendered by the employees. 42
Internatlonal Water Assoclatlon Ne$ to the financi statements For the onded 31 December 2021 l Accounting poliae5 Iconiinued) vl Specialist group funds Speciali51 groups rurt independently fr¢ the Assooatlon and their incorne. expendiiure. a55eis liabiliiies are not included in the Association's financial staiements. Where specialist 9roups use the As50(iation'5 seTr7ces. rhese are char9etl to the group and shrthn as income for the Association. In many cases. this relates 10 a share of income frorn evenis wganised by the 5pecialisi group in a9reement wlth the Association. Thls income is accounted foi once cL¥iftrmaiion is received of ihe arnounr due and it is reasonably certain that li will be received. The Assooation holds funds on behalf of the specialist groups. The balances due io the 9roup5 are includtd in IrefSitQTS. 43
1nttrnatpJnwa NU5 rost5 knwrtCD5ts 1021 202D Tot1 514ftCV5t5lNott41 OihrFro515 In¥r51mrnl pJ515 4],665 I.IJS0,412 160.145 149.3fj6 59.gyg 3.051.912 407.641 411.169 SD.266 l¢¢¥ 5.1 6$.86 ITc0515 59.112 91.SOI 12.(WJD AGM TIw51iyrnwliryS 1.$6S40 599.542 J09.714 309.sii ?34. 23.4G6 Suppllrt r05t5 .110 114.108 iQ,L¥JJ 6.56P 1.366 1.366 111.466] 1969540 (1.96?,540) 1.569,540 599.142 1.591.509 4(0.¥ 315.995 S.147.110 ZOIQ I.BZ9.61P 113.110 634.601
2b (fvyw) ¢E (0511 >Jpport costi 2020Totsl 843.PP? PA6.IOS 1.237m7 254.la5 220.997 9F.034 2$2.7 IV2Q 23Q.951 InvtJlmen[ m4n49tm*Tht (Jstj 383.768 66.498 450.266 L¢gèlan¢ ptol¢55wII fee5 Dep(111 and bmwimeni Alt AGkl•ndTwsl¢e Tr4eliny5 1.491.251 545.4&1 5,732,403 5upp>rtfQ515 307.944 fjF.716 .394 5J5J $.J40 Tvtalexyndtty ZOZO 2.073.353 452221 631.fjoz 11.969.540) 5.732,403 45
International Water Assoclailon Note5 10 Ihe financial 5taiemenis For the ear ended 31 0e¢ernber 2021 Net Sncome I lexpendliure) after iaxarlon. before net gains on Invesimtnts Thi5 15 Stared after char9in9 1 Icreditin9)". 2021 2020 Depreciatson of tangible fixed a55et5 Amortisaiion of iniangible fixed asseis Loss o¥ piofit on disposal of fixed asseis Auditor's remuneration.. Statutory audit Other seTvices Foreign exchange gains or 105ses 130.624 67.862 124.474 67.862 16.900 1.500 16.300 1.500 Analysls of staff costs. tNsiee rtmuneratoon aftd expenses. and ihe cost of key managernem personnel Siaff and ttsnsultants tosrs were as foll¢h¥s". 2021 2020 Salaries and wages Redundancy and termination costs social security costs Oiher pension costs Consuliants charges 2,323.346 2.517.597 276,401 315.149 147.016 308,957 248,781 155.166 3.061.912 3,230,501 The followng number of employtts rtctwtd employee benefits (excludin9 employer pension costs and employer's naiional insurance) during the year beeen. 2021 No. 2020 No. £60.001 170,000 £70.001 180.000 £80,001 £90,000 £90.001 I I00.( £ioo,001 £iio.000 £1 10.001 £120.000 £130.001 £140,000 £140.001 £150.000 £250.001 £260.000 The total employee benefits lincludift9 pension contributions antl employer's national insurance) of the kry management personnel were 1979,197 12020.. £854.7871. The ioial coniributions to the defined contribuiion pension schemes during the year was £131.$99 12020.. £145.5281. At the year end £0 12020." Inill was outstandin9. No fees or remuneration are paid io any members or olficers of the Association wr(h the exception of the Executive Direcior who received £258.700 during the year 12020.. £255.5611. Clause 4 of ihe Memorandum of the Associaiion provide5 specific power to rnake such payrneni to ihe Execytive DirettoT. The Associaiion incurred a total of £682 12020.. £30.9181 in respect of international travel. subsistence and venue costs for 1 12020.. 14) 8oard members. Durlng the year the Association maintained an Indemniry Insurance cover for its offKers for up to £ 10 12020= £10 million) ai a cosi of £5.500 per annuffl 12020". £5.0001. 46
Internatlonal Warer AssocSatlon Notes to the financlal 5taternents rihe ar end d 31 December 2021 Staff numbers The average number of employees (head Count based on number of staff employed) during the year wa5 52 12020.. The avera9e number of employees durin9 ihe year was as follow5 linclvding casual and part-time staffl." 2021 No. 2020 No. Charirable attivities Publishing activities Management and admini51ration 34 14 34 52 91 Related party transa(tlons Durin9 the year Trusiees received reimbursement of expenses a5 sei oui in note 4. The followin9 transactions look place during ihe year with rhe Trusrees Enri4ue Cabrera and Peier Vanrolleghem. Book royaliie5 of £25 12020.. £201 wa5 payable to Enrique Cabrera and book royaliies of £25 12020.. £191 was payable to Peier Vanrolleghem. The total amount of £50 12020.. £391 wa5 ouistsnding as at 31 December 2021. The paymeni of royalties are made ai a standard rate wih rTro prefeiential tatMeNt due to their involvemeni with rhe Associaiion. Trustees are required io be members of the Association. for which they pay the Association a rnembership fee. Furthermore, they may from time to time purthase goods or services from the Association le.g. book5. journals, conference attendances). The payment of fees or purchase of good or service5 are on normal cornmericial ierms wilh no prefereniial ireatmenr by virtue of being a tru51ee. Other ihan the above. there were no rtlared party transactions to repofl in the period of rewrt 12020.. nonÈ}. Taxatlon The charily is exempt from cofporaiion tax as all its in(ome 15 Iharitable and is applied for charitable purposes. The charity5 trading Subsidiary IWA Publishing bmited disiritwtes under Gift Aid available prof115 to the parent charity. Its charge io corporaiion tax in ihe year was. 2021 2020 UK corporation tax ai 19X 47
International Water Assoclation Notes to ihe financlal siatements ear ended 31 December 2021 Intanglble flxed assets The 9roup Online plaiform Total Cosi At the start of the year Addilions ir¢ year 0i5P05a15 in year 339,311 339,311 At the end of the year 339,311 339,31 I Amoni5ailon At the start of the yeaf Charge for Ihe year El¢minaied on disposal 164.749 67,862 164.749 67.862 At the end of the year Nei book value At the end of the year 232,611 232.611 106.700 106.700 At the start of the year 174.562 174.562 All of the above assÈrs art used for charitable purposes. 48
lrfernatlonal Water Assoclaiion Notes to ihe financlal 51aternents For the ear ended 31 December 2021 Tangible fixed assets The group Leasehold Fixtures and improvernent rirtlll9S Office equiprneni Computers Ttstal Cost At the start of the year Addilions in year 0i5P05als in year 120.( 521.IM)O 28.558 109,730 13,539 19.9451 779.288 13,S39 126,6611 16,716) At the end of the year 120.000 521.000 11,842 113.324 766.166 Depreciation Al the start of ihe year Charge for the year Eliminated on dispos 12,000 12.000 110.824 86.833 4.761 15.903 116.7161 91,371 15.888 19,9451 218.956 130,624 26.661) At the end of the year Net book value At the end of ihe year 24.000 197.657 3,948 97.314 322,919 96.000 323.343 7.894 16,010 443,247 At the starr of the year 108.000 410.176 23,797 18.359 560.332 The charl Leasehold Fixtures and improvement ritlin95 OITKe equiprneni Computers Total Cost At the start of the year Additions in year Oisposals in year 120.000 420.619 28.558 74,668 13.538 643.845 13,538 116.717) 116,7171 At the end of the year 120.000 420,619 11.841 88.206 640,666 Depreciation At the start of the year Charge for ihe year Eliminatetl on Llisposal 12.000 12.000 70.104 70,103 4.761 15,903 116.7171 68,475 7,608 155.340 105,614 116.7171 At the end of the year Nei book value At the end of the year 24.000 140,207 3.947 76,083 244,237 96.000 280,412 7.894 12.123 396.429 At the stan of the year 108.000 350,515 23.797 6.193 488,505 All of the above asseis are used for charitsble purposes. 49
Inlernatlonal Water Assoclaiion Notes io the financial 5tattments For the ar et)ded 31 December 2021 Investsntnts The group 2021 The charlty 2021 2020 2020 Fair value ai the sian of the year Addiiions at cost Disposal proceeds Net 9ain I Ilossl on change in fair value 1.221.552 239,580 (233.110) 83.580 1.144.531 456,789 1439.0081 40.826 1,371,S55 239,580 1233.1101 83,580 1.294,534 456,789 1439.0081 40,826 1.311.602 25.443 1.203.138 1,461.605 25.443 1.353.141 Cash held by investmeni broker pendrn9 reinvestment 18.414 18.414 Fair value ai the end of ihe year 1.337.045 1.221.552 1,487,048 1.371,555 Inve51men15 compri5e'. The group 2021 The charlty 2021 2020 2020 Shares listed on the London Stock Excharvje (er$eaS listed investrnenis Unlisted income bonds in the UK Inves¢men¢ in subsidiaries 686,851 600.194 so.000 597,787 573.765 50.000 686,851 600,194 50.000 150.003 597.787 573,765 50.000 150.003 1,337.045 1.221,552 1.487,048 ,371,555 50
Internatlonal Waier A550clatbon Notes io the financlal siatement5 For the ar end d 31 December 2021 Subsldiary vndertakln9S The Association holds a controlling interest in tWA Publishin9 Limited. tWA Conferences Llmited, fwA Develgprneni Solurions Lirniied, IWA Global Enterprise5 Lirniied. Nanjing IWA Science & Technology Co. Ltd Ichinal, IWAT Science and Technology Private Limited Ondia) and IWAI Water Foundation fjndHI, whose details are 9iven below. IWA Publishing Limlted The charity owns ihe whole of ihe issued ordinary share capital of IWA Publishin9 Limited. a company registered in England. The cornpany number is 03690822. The registered office address is Expon Building. First Floor, I Clove Cresceni, London, El 4 28A. The 5ub5idiary is used for non-primary purpose trading activities. these bing the publishing ofbooks. periodicals and video recoTding5. All aaiviiies have been consolidated on a line by line basi5 in ihe statement of financial acriviries. Available profits are distrbuted under Gift Aid io the parent charity. The trustees Kalanithy Vairavamoonhy. Enrique Cabrera R¢Khera. Marie-Pierre Whaley and Peter Vanrolle9hem a also directors of ihe subsidiary. A summary of tht resulis of ihe subsidiary is shown belcw= 2021 2020 Turnover Cosi o15ales C05t of sales relaied to puriha5es from parenr undenaking 4.104.474 {725.8221 4.436,555 1846,3081 Gross profit Adrnir¥istrative expenses 3.378.652 (1.243,7181 3.590,247 11,227.0451 Profil on ordinary aaThiiie5 before imere51 and uxaTion Inieresi receivable and slmilar income 2.134,934 2.363,202 412 Profit on ordlnary acilvltles before raxatlon 2.134.962 2.363,614 Taxation on profit on ordinary aaiviiie5 Profil for the finan¢ial"year 2,134,962 2.363,614 Reialned earnln95 Toial retained ea¥nings brought foaT Profit for the financial year Distribuiion under Gift Aid io pareni charity 2.134.962 2.363.614 (2.134.962) 12.363,6141 Total retained earning5 carried forward The aggregate of the asseis. liabilities and reserves was: Assets 1.654.346 (1.504.346) 2.036.841 11,886.8411 Re5er¥es 150.000 150.000 Amounts owed to the pafent undertaking were-. £830.153 12020-. £837,132).
Internatlonal Warer Assoclatlon Notes to the financial staternents For the ar ended 37 December 2021 Subsidiary undertaklngs Icoi)tlnuedl Nanjlng IWA Sclence & Technology Co. Lrd The charity owns the whole of the issued oidinary share capiial of Nanjing IWA Science & Technology Co. Ltd. a company re9isiered in China. The comparf5 aaiviiie5 in the year were that of promotin9 the art and science of water management globally. by the encouragernent of tra¢ning. srudy and research in water managemenr and the publications of the useful results of such research.. to share advances technolTrJie5 and besi praciices wilh water professiona15 and organisaiion5. The Subsidiary is Used for non-primary purpose trading actr¥ities. All attivtties have been consolidated on a line by lint basis sn ihe siaiemeni of financial adi¥iries. AvaiLible profits a held in ihe company for future operaiions. A summary of ihe results of the subsidiary is shown below- 2021 2020 Turnover Turnover from sales to parent undertakin9 Cost of sales C051 of Sales ¥elaied to purchases from panI undertaking 836.156 527,629 1391,5821 259,8541 Gross profltll105s1 Admini51raiive expenses Management charge payable to parent vndenakin9 Management charge due from parenl urbdertakin9 Other operating income 444,574 1207.764) 267,774 1192.3741 Profitlllossl on ordinary aaivities before interes1 and raxation Interest receivable and similar income Inrerest payable Interest payable to parent undenakin9 236,810 1,035 75,401 336 Profit on ordlnary a(tMtles before iaxaifjon 237.845 75,737 Ta¥ation on profit on ordinary activilies 18.4151 {13.0231 Profft for the finan<lal year 229,431 62,7?4 Retained eamlngs Total rerained earnings brought forward Profit for the financial year 225.419 229.431 162,705 62.714 Total retalned earnings carrled fonrd 454.850 22S,419 The aggregate of asseis. liabilities and restrves was". Assets 508.492 153.642) 317,395 191,9761 Re5erye5 454,850 22S,419 Amounts owed tolfrom the parent undertaking were_. £0 12020: £162.7051 S2
Internatlonal Water Assoclaiion Noies to ihe financial statements For the tar ended 31 Decefflber 2021 12 Parent charlty The parent charity's 9ross income and ihe results for ihe year ale disclosed as follu4VS'. 2021 2020 Gross incorne Result fo¥ the year 1.139.709 {2.240.7911 1.212.039 12,035.6091 13 Stock Tht group 2021 The charlty 2021 2020 2020 Goods held for resale 52.953 44.701 52.953 44.701 Debtor5 The group 2021 The charitv 2021 2020 2020 Tiade debiors Other debtors Prepaymenis and accrued income Amounts due from subsidiary undenakin9S 1,189.365 202.615 340.635 1.098 1.463.85 1 242.779 586.879 169,557 192,846 278,138 924.737 137.573 223.839 498,488 838,229 1.733.713 2.293.509 1,565,278 1.698,129 I S Credltors.. amounts fajllng due withln one year The group 2021 The charirv 2021 2020 2020 Tvade credirors Other creditors Social security Costs Specialist Group fuftds Accruals and deferred income (note 161 459.939 595.117 6S.597 160.467 2.281.021 333.267 385.687 111.203 140.765 1.981.S84 288,581 465.834 48.536 160.467 .964.377 214.838 225,807 81.734 140,765 1,125.537 3.562.140 2.952.506 2,927,794 1.788,681 16 Deferred income Deferred income comprises income collected in advance for ftstu journal. membershlp subscripiion5 and evenis. The group 2021 The charfjry 2021 2020 2020 Balance at the be9inning of the year Amount released to income in ihe year Amouni deferred in the year 1.981.584 {1.981.5841 2.281,021 1.125.537 (1.125.537) 1,964,377 Balance at the end of ihe year 2.28T.021 1.964.377 53
Internatlonal Water Assoclarlon Note5 to ihe flnancial sthtements For the ear ended 31 Decem r2021 17 Credltors: amounts falllng due after one year The group 2021 Th Charlty 2021 2020 2020 Provision for dilapalI0n 120.000 120.000 120,000 120.000 120.000 120.000 120.000 120.000 Provision for dIlapat(0nS represeffls the estimared c051 of rein51aiement works, repairs and redecoration. as well a5 specific works that will need to be made in line with Ihe office lease. (Export Building. First Floor. I Clove Cresent. London El 4 2BA. Penslon scheme Group and cornpany The group operates a Defined 8enefit Pension S(me. The amount5 recogni5ed in thE 8alance Sheet are as folltxs: 2021 2020 Present value of funded obllgaiion5 Fair value of scheme a55e15 Surplus not recognise 12.950.000) 3,190.000 1240.0001 3,084,000) 3,317.000 1233,0001 Surplu5 in 5cherne at end of ihe year and available io ihe Assockitlon The latest actuarial valuation ai 31 December 2021 shows a pension surplus of £240,00012020..£233,0001. The surplus valuaiion resulis in 2021 is not recogni5ed on ihe balance shttt as an asset because if Is not available io the Association by way of reduced fuiure coniributions. A(tuarial gains and losses arising from new valuations and fTom updaiing valyaiions to the balance sheei date are recognised in the staiement of financial aciNiiies a5 Qiher recognised gains and losses. The afflounts recogn15ed In the Statement of Flnanclal Attmtles are as follows: 2021 2020 Interest ort obli9aiion Expected rerurn on scheme a55ers {42.0001 45,000 161.0001 63,000 3,000 2,000 Movements In the Present yu of iht defined benefft obllgatSon were as follows.. 2021 2020 Opening dtfined benefit obligation Interest cost Actuarial 10sse5 Benefirs paid Administfation cosi 3,084,000 42.000 15,000 1288,000} 97,000 3.127,000 61.000 84.000 1278,000} 90.000 Closing defined benefit obligation 2.950.000 3.084.000 54
Internailonal Waier Assoclatlon Noies to the financlal sratements For ihe ar ended 31 December 2021 18 Ptnslon scheme Iconiinued) Group and company Changes in the fair value of scheme a5set5 were as foll(Thv5= 2021 2020 Opening fair value of scheme assets Expecied return on assets Actuarial gain5 Contribution by employer Benefits paid 3,317,000 45.000 127.000) 143.000 288.000) 3.246,000 63,000 157,000 128.000 1278.0001 3.190,000 3,316.000 The group expecrs ro contribute £147.31JO to lis Defined Benefit Pension Scheme in 2022 12021- £128,000). Principal actuarlal assumptions at the Balance Sheet dait (expressed as weighted avtrdges): 2021 2020 Discount Tate at 31 December Future pension increase5 Retail price inflation 1.90% 3.30% 3.40% 1.40% 2.95% 3.00% 8.60% 7.35% Lon9evity assurnptlons as at 31 Decernber 2021 Male5 Base taNe or Female5 2021 Club Viia base tables refletting profile of individual Scheme member5. in line wilh Ihe 2019 formal actuarial valuation. 2020 Club Viia base tables refleaing profile of individual S£herne mernber5. in line with the 2019 formal actuarial valuation. Future irnprovements CMI 2018 rnodel wilh a long terrn rate of Improvement of 1.5% p.a. for males and i.(rx p.a. for females. calibrdred ro Club Vita experience with a srn¢)othing parameter of SK - CMI 2018 model with along ierm rate of improvement of 1.5% p.a. for rnales and l.0% p.a. for females, calibrated to Club Viia experience with a srnoothing pararneier of S 55
Internailonal Water Assoclaiion Note5 10 the financi statements For the ar ended 31 December 2021 l 9a Analysls of group net as5ers bemeen funds Iiurrent yearl General unresiricted DeSnated funds Revaluation reserve RestflClEd funds Total fund5 Iniangible fixed asseis Tan9ible fixed asseis Investments Nei curreni assets Long term liabilities 106,71)0 443,247 106.700 443.247 1,337,045 1,165.198 1120,0001 1.010.041 66S,386 1120.0001 327.004 454,849 44,963 Net a55ets at Jl December 2021 1,555,427 1,004,796 327.004 44.963 2,932.190 19b Analysis of group net assets beTh¥een fund5 (prior year) General uniestriaed Designated fvrtds Revaluaiion reserve Restricted fun¢Ys Toial fub7ds Intangible Fixed a5set5 Tangible fixed asseis Investmen15 Net current assets Long term liabiliiies 174.562 560.332 174,562 560.332 1,221,552 767.627 (120,0001 937.910 462,939 283,642 225.419 (120.0(X)) 79,269 Net asstts at 31 December 2020 1.400.849 840.313 283,642 79.269 2.604.073 S6
Internailonal Warer Association Notes to ihe financlal statements For the ar ended 31 December 2021 20a Movements in fvnds Iturrent yeafl At31 December 2021 At l January 2021 Income & 9ains Expenditure & losses Transfer5 Restrlcted fvnds: Improving water securiiy for the poor Ciwide inclusive sanitation GIZ Carbon Neutrality in Water Aquaraiing - Mongolia Aquarating Zambia Climate Resilient Operation and Maintenance Nttynrk Diffuse Pollution SC Fund Prime Water Water-wise Cities Project Reach Projeci LAC HRW5 Regulaiors NBS 115,4591 66.800 14.531 135,9361 14.009 130.1401 5.951 21,164 32,843 15.429 30 410 167.2101 122.1461 17.61 Sl 35.936 114.0091 47.510 33.217 117.3701 128.0351 21.164 133.3201 17.0991 15001 477 21,874 14.775 500 5.506 5.506 Total re5trlcied fvnds 79,269 118.030 {T 75.6801 23.344 44.963 Unrestriaed funds.. Designated fund5". Tangible and intangible assets Nanjing Fund 614,894 225.419 164.9471 1607.7611 549.947 454.849 837.191 Total desi9naied funds 840,313 837,191 1672.7081 1,004.796 Revaluation rese 283.642 102.256 158.8941 327.004 General funds 1.400.849 5.126,181 15,007.1531 35.550 1,555.427 Total unresirfcted funds 2.524,804 6.065.628 (5.679.861) 123.3441 2,887.227 Penslon reserve Total funds 2.604.073 6,183,658 (5,855.5411 2.932.190 The narrative to explain ihe purpose of each fund is 9i¥en ai ihe foot of the noie below. 57
Inttrnatlonal Water Assoclatlon Note5 to the flnanclal Statements For the ar ended 31 December 2021 20b Movements In funds Iprlor year) At31 December 2020 At l January 2020 IKome & Expendilure gains & losses Transfer5 Re51ri¢ted fvnds-. Improving waier securiiy for the poor Citywide inclusive saniiation GIZ Carbon Neutrality in Water Aouarating - Mon901ia Aquarating - Zambia Climate Resilitnt WSPS Operation and Mainienance NeThIrk Diffuse Pollution SG Fund Prime Water PBC Partnership FAO Projea LAC HR Re9ulaiors N8S 8.088 123,5471 18,9241 126.4191 (33,9061 132.0771 180,6741 133,7481 {15.4591 66,800 14.531 (35.9361 14,009 130.1401 S.951 21.164 32,843 75.724 40.950 (2.0301 1.367 164.2241 2.124 21.164 11.8431 5.605 44.719 114.758 37.575 58.549 4.141 1.530 123.8631 19.7461 11.5301 17.3201 33 12.826 1331 5.506 Total restfkted fund5 116.9561 377.946 128T.7211 79,269 Unresiricitd funds: Designated funds. Tangible and intangible assets Nanjing Fund 287.666 162.705 1192,3341 1465.2511 519.562 614.894 22S,419 527.965 Toral desi9naied funds 450.371 527.965 1657.5851 519.562 840.313 Revaluaiion reser¥e 337,447 40.826 194.6311 283.642 General funds 1,401.181 5.271,060 {4.806.1201 146S.2721 1,400.849 Total unrtstrftttd funds 2.188.999 5.839.851 15,463,705) 140,3411 2.524.804 Penslon reserve 140,3411 40,341 Toial fund5 2.172.043 6.217.797 15.785.767) 2.604.073 Purposes of restrlcted fvnds Improving water stcurfty for the poor The REACH prograrnme is led by Oxford University and brin95 tO9eiher a consortlum of global leaders in waier science. policy and practice. REACH is a new global research prograrnme io improve waier security for ihe poor by delivering world-cla55 Science ihai transforms poli(v and praciice. CiM¥ide inclusive saniiation The IWA is workin9 Wlth our par¢rt, throu9h this proje(I IWA aims at identifying the needs. opportunities, and tg01s for action to support and inspire regulators in their contribuiion to athieving titywide inclusive sanitarion in the context of the Sustainable Developmeni Goals. GIZ Carbon Neutrallty In Water The IWA is WOTkin9 on a project with GIZ. funded by ihe Cerman Federal Ministry of Environrnenr, Nature Conservation, to irnprove the carbon balance across LITilities. The projett focuses on pans of ihe nexus as addressing greenhouse gas reduction and ener9y efficiency produces benefiis for water efficienry and recover5 resource5. The fvnd cur¥enily having a deficit baLance. pending paymenr receb from the donor. 58
Inieinatlonal Water As50¢1atlon Note5 to the financial statements For ihe ar ended 31 December 2021 Movemeffls In fvnds (continued) Purposes of restricted fund5 Aquaraiing The funds veceived from Millennium Corporaiion. USA iowafd the execuiion of a techni(al rooperation programme for Ihe implemeniaiion of a rating 5VStem Aqua Raiing for ihe waier and sanitation providers. The Aquarating Mongolia and Aquarating Sierra Leone fund cvrrently havin9 a deficit balance. pendin9 payrnent receivable from the donor. Water-wise Cities Project Funded by SIAAP iowards help city leaders ensure ihai everyone In iheir ciiies has acce55 10 safe waier and saniiaiion. One of rhe aims is to ensure that water 15 iniegrated bn planning and design in cities to provide increased resilience io climate change, livability, efficieficies. antl a sense of place foT urban communities. The ulrimaie goal of these Principles is to encourage collaborative aciion,underpinned by a shared vi510n. 50 that lo(al 9overnments. urban professionals, and individuals aaivety engage in addressing and findin9 solutions For managing 311 waters of the city. Operarlon and Malntenance Network Fund5 receive¢J from Minisiry of HealTh. Labour and Welfare fMHLvnJapan io support. raise awarene55 and develop capacities to effectively addre55 operatlOn5 and maintenance of ater supply and saniiation systems and protect public health. GEF Floods & Drought5 Funds received from UN Enviro Programme io develop adaptive. sociotechnical risk management measures and siraie9ies for coasial communities a9ainst extreme hydro-meieorolrtyical evenis minimising social, economic and environmental impacts and increasing the resilience of Coastal Re9ions in Europe_ Prime Water Funded thfough EU Horizon 2020 - Ihe Framework Programme for Research and Innovaiion for éelivering advanced predictive tools from medium to seasonal range for water dependent industr5 and exploiiing the cr055-CUtting pottniial gf EO and hydro-ecological modelling lin short Primewaterl. Diffuse Pollutron Specialist Group Confeience surplus funds received from ihe Diffuse Pollurton Specialisi Group tchwards the cost of future attivities. WSP - Asia-Pacific Netsvork Funds received from UNOP5 iowards hosiing the Nerk Asia. the thematic neork for capacity development for water safety plans and to strengthen the Asia Pacific V•SP nev*rk io support the development of climaie resiltent. daptable systems for water supplv_ Cllmate Reslllent YP.$ funding provided by OPEC Fund for International Development IOFIDI for implementing climaie resilient warer safety planning io improve water supply and public health. 59
International Waier Assoclatlon Notes to ihe financlal statefflents For the tar ended 3) December 2021 Movemen15 in funds Iconiinuedl Purpose5 of re5trided funds Regulators - Nature Based Soluilons 6s) Funds received frorn The Nature Conservancv (fNCI ttrwards SupporTin9 iegulators and regulation to enable considefation and in¥esimeni in naiure based soluiion EO bmpro¥e water security and safety. Purpose5 of designated funds Tanglble and Iniangible asstt fund This fund balance represents the carryin9 value of the Associaiion's iangible and intangible fixed a55ets net of any associated liabililies. This fund has been established in recLhJnition ol the facr thai rhe assets are used in ihe day to day work of ihe charity and do noi represent re5eFves awdilable to finance its operations. Investmeni revaluatlon reserve This fund balance represents ihe balance ilded within fixed asset investmenTS which has arisen as a consequence of the cumulative impart of rnarker value changes TO the Asso(iaiion's investment 355ets. It ha5 been separated in order ro provide an indic3tion of ihe difference beCen ihe value of lisied invesiments at the balance sheei date relatsve 10 lis historic cosi. A calculation is provided at noie 19 to the financlal siaiemenis. Penslon reserve This fund represents the Associaiion'51ong-teTm liability in respea of irs defined benefit pension scherne. 11 IS separated in order acknowled9emeni ihat the liability is long-term and may be disregarded in considerin9 the availabiliiy ol free reserve5 in meeting the day-io-day obligaiions of ihe Assock41ion arKI the group. Nanglng Fund This fund represenis the net asset under the ionirol of the A550ciaiion's subsidiary. Nanjin9 IWA Science & TechnaloyyCo.Ltd inchina. Those net assets are essential io the operations in China and therefore separaiely rin9- fenced in ihese accounts. 21 Operatlng lease commltments payable as a le55ee The group's toial future minirnum lease payments under non-cancelLible operating leases is as folltrws for each of the following periods.. Propeny 2021 Equipment 2021 2020 2020 Less ihan one year One to five years Over five years 226WS 1,132,425 301.980 75,495 1.132,425 528.465 2,900 10.150 1,660,890 .736.385 13.050 The charity's ioial future minirnum lease payments under non-canceliable operatin9 leases is as follows for each of the following periods". Property 2021 Eoulpment 2021 2020 2020 Less than one year One to five years Over five years 75.495 1.132.425 528.465 2.900 10.150 1.132.425 301.980 1,660.890 .736,385 13.050 22 Le9al status of the charfjty The chariiy is a company limiied by guarantee and has no share capital. The liability of each member in the event gf winding is limited io £1. 60