Company number: 03597005 Charity number: 1076690
## International Water Association
Report and financial statements For the year ended 31 December 2023
**International Water Association**
## **Contents**
## **For the year ended 31 December 2023**
Trustees’ annual report .....................................................................................................................3 Independent auditor’s report ......................................................................................................... 19 Statement of financial activities (incorporating an income and expenditure account) ...................22 Balance sheet ............................................................................................................................... 23 Statement of cash flows ................................................................................................................24 Notes to the financial statements ................................................................................................. 25
**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **Trustees**
Thomas Mollenkopf AO (President, Chair) Kalanithy Vairavamoorthy (Executive Director) Marie-Pierre Whaley (Senior Vice President) Daniel A. Nolasco (Vice President) Teodor Popa (Treasurer) Rose Kaggwa Walter Kling Sankaralingam Mohan María Molinos-Senante Elisabeta Poci Harsha Ratnaweera Satoshi Takizawa Peter Vanrolleghem Xiaochang Wang Hamanth Kasan (President-Elect)
**Company registered number** 03597005 (England & Wales)
## **Charity registered number**
1076690 (England & Wales)
## **Registered Office**
1.04 & 1,05 Export Building, Republic, 1 Clove Crescent, London E14 2BA, UK
## **Company Secretary**
Mr Satkunam Murugathas
## **Executive Director**
Dr Kalanithy Vairavamoorthy
## **Independent auditor**
Sayer Vincent LLP, Invicta House, 110 Golden Lane, London EC1Y 0TG, UK
## **Principal Bankers**
HSBC Bank Plc, London SW1H 0NJ, UK
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
The IWA Trustees (who are also Directors of the charity for the purposes of the Companies Act) present their annual report together with the audited consolidated financial statements of the International Water Association (the 'Association' or 'IWA') for the year ended 31 December 2023.
The Trustees confirm that the annual report and financial statements of the Association and the group comply with:
- a) the current statutory requirements;
- b) the requirements of the Association, and the Association's governing document; and
- c) the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **1. OBJECTIVES AND GENERAL ACTIVITIES**
## **Objectives of the Association**
These are to:
- (a) promote the art and science of water management for the public benefit, particularly, but not exclusively, by the encouragement of education, training, study, and research in water management and the publication of the useful results of such research;
- (b) advance the education of members of the public in the science and practice of water management;
- (c) promote and enable the development and direct provision of water management schemes worldwide for the public benefit, where "water management" means the establishing, maintaining, and securing of safe and sustainable water supplies, storm water systems, and wastewater treatment and disposal systems.
## **Strategies for achieving objectives**
The Association fulfils its objectives by:
- (a) holding a World Water Congress and a Water and Development Congress in alternate years in different continents of the world;
- (b) holding worldwide regional and specialised conferences, seminars, webinars, and workshops, providing a continual source of knowledge and information;
- (c) publishing a range of books, journals, and reports; and
- (d) promoting multi-level collaboration amongst its members and others through, for example, specialist groups, task forces, forums, regional associations, projects, and programmes.
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **Activities for achieving objectives**
The Association continues to develop as the global reference point for water professionals working on all aspects of the water cycle. IWA helps water professionals deliver innovative, pragmatic, and sustainable solutions to challenging global needs for safe water and sanitation, within urban areas and river basins.
IWA is a unique global knowledge hub for water professionals, and anyone concerned about the future of water. As such, IWA continues to inspire change towards our common vision of a water-wise world.
Through the Association, members collaborate to lead the development of effective and sustainable approaches to water management, with emphasis on the science and management of drinking water, wastewater, stormwater, and the conservation of water resources throughout the world.
IWA’s Water and Development Congress & Exhibition is an important component of its activities for achieving its objectives. This event has a particular focus on the needs of and potential solutions relevant to low- and middle-income countries, serving as a platform for networking for water sector professionals from such countries. The Association delivered an extremely successful edition of this event, held in Kigali, Rwanda, in December 2023.
More generally, the Association continued to maintain close working relationships with major international water agencies and associations, partnering with these bodies, and engaging members, on joint projects, publications, and representation of positions in international forums.
The Association has a strong and developing outreach programme concerned with the transfer of knowledge and skill in water management from professionals across all countries. With members engaged in the delivery of this programme, it maintains a strong focus on environmental health, hygiene, and sanitation issues in lowerincome countries.
## **Main charitable activities for the public benefit**
The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 and have taken due regard to the Charity Commission's general guidance on public benefit.
This is achieved by the generation and dissemination of knowledge and best practices on all facets of the water cycle. This occurs formally at conferences, facilitated exchanges through the Specialist Groups, Task Forces, and other member networks (such as the Young Water Professionals) and through the journals, books and other publications produced by the Association.
Activities during 2023 with a particular relevance to public benefit included contributions through various initiatives and programmes. These included the focus on sanitation, especially the need for progress in lowand middle-income countries, provided in particular through IWA’s Inclusive Urban Sanitation (IUS) initiative. At the same time, climate change has already had and will increasingly have a significant impact on utilities' ability to provide safe water and sanitation services while also protecting people and assets. In this context, progress with IWA’s Climate Smart Utilities initiative during 2023 is of note. This included extension of a dedicated Recognition Programme to inspire progress for utilities in low- and middle-income countries. All activities are described in more detail in the relevant sections below.
## **Open Access publishing and the public benefit**
In 2023, continued impacts of the move of journals to Open Access were seen, including a 55% increase in the total number of citations progress, and work continued to increase the diversity and representativeness of journal editorial teams, which has seen editorial board membership from Africa, Asia, the Middle East, and Latin America grow by 141% between 2018 and 2023. Meanwhile, 70% of book titles published were Open Access.
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**International Water Association**
**Trustees’ Report**
## **For the year ended 31 December 2023**
## **2. GROUP STRATEGIC OVERVIEW**
A successful year marked another significant chapter in IWA's journey, building on the successes and momentum achieved in 2022 as the world emerged from the global pandemic.
One highlight was the Association’s annual Governing Assembly, held this year in Bordeaux, France in September 2023. The Governing Assembly saw excellent participation and representation of its 61 Governing Members. The Governing Assembly’s business included voting on the next President of IWA. As a result of this vote, IWA is able to welcome Dr Hamanth Kasan of South Africa as its President-Elect. Dr Kasan will take up the role of President at the end of the World Water Congress & Exhibition in Toronto, Canada in August 2024. Dr Kasan brings a wealth of experience, leadership, and international connections to the position, with involvement with the Association extending back some 35 years.
An important development for 2023 was the launch of the IWA Connect Plus membership platform at the start of the year. This powerful new resource has been launched to support global networking, the hosting and sharing of thousands of items of content mainly from IWA events, and the management of IWA’s many member groups, among other features. Its use as the registration platform for key IWA events was also introduced during the year. In all, the platform gathered some 75,000 visits during its first year of use.
A standout event of the year was the 2023 IWA Water and Development Congress & Exhibition held in Kigali, Rwanda, on 10-14 December. With nearly 3000 water and development professionals, organisations, visitors, and companies in attendance, this Congress can be seen as IWA’s most successful in this event series yet. Under the theme 'Water, sanitation, and climate resilience – keys to a water-wise future', the Congress provided an excellent platform for dialogue, collaboration, and knowledge exchange. It was very much by and for those from low- and middle-income countries, with a particular focus on addressing pressing challenges in Africa.
The Congress also offered an opportunity for IWA to feature important programmes and initiatives, including the Inclusive Urban Sanitation and Climate Smart Utilities initiatives, among others.
During the year, IWA made significant strides in advancing diversity, equity, and inclusion through various actions and partnerships, reinforcing its commitment to fostering a more inclusive water community. Notably, the addition of seven new Governing Members marks a significant expansion of IWA's global network and influence. This diverse representation strengthens IWA's ability to address water challenges on a global scale, fostering collaboration and innovation across regions.
Important progress in IWA’s youth-related activity included the establishment of the Emerging Water Leaders Endowment Fund that will support the IWA Emerging Water Leaders Scholarship Programme. The year also witnessed the successful expansion of the Young Water Professionals Community, with the addition of five new Country Chapters globally. Also, 13 young professionals were able to participate in the UN Water Conference in New York under the Youth Action for SDG 6 Fellowship.
2023 was therefore a year of substantial progress and impactful engagement, reflecting IWA's commitment to addressing global water challenges and driving positive change in the water sector.
Overall, the Association continued to advance its core mission, visible through our diverse activities and a strong membership base that broadly remained steady in terms of membership numbers. This progress was supported by IWA’s strong foundations, which are based on financial prudence and the commitment of all the many people involved – i.e., the Board, staff, members, and partners.
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**International Water Association**
**Trustees’ Report**
## **For the year ended 31 December 2023**
## **Key financial performance 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 £2,055,802 (2022: £6,255,611), with the decline on the prior year reflecting the Association’s normal two-year income cycle. Other income, including income from trading activities, investments, and other sources, was £4,124,448 (2022: £4,258,756) giving total income for the year of £ 6,180,250 (2022: £10,14,368).
After making provision for gain on investments of £67,992 (2021: Loss £187,827) the net reduction in group funds was £327,741 (2022 increase of: £1,415,622) providing closing group funds as of 31 December 2023 of £ 3,979,040 (2022: £4,306,781).
## **3. ACHIEVEMENTS AND PERFORMANCE**
## **Programmes**
2023 was an extremely successful year for IWA’s Programmes, with significant progress for several key initiatives. Launched at the 2022 IWA World Water Congress & Exhibition, the Inclusive Urban Sanitation (IUS) initiative gained greater momentum in 2023 through various engagement efforts and further promotion of its #SanitAction campaign. In particular, a number of key milestones were achieved during the 2023 IWA Water and Development Congress & Exhibition (WDCE).
A prominent feature in the WDCE programme was the day-long IWA High-Level Sanitation Summit. This provided a pivotal engagement platform for politicians and policymakers to underscore the imperative of shaping policy and action. Meanwhile, the Innovation Acceleration Forum and SanitAction Innovators Expo held there provided a unique platform for innovators to display their solutions and prototypes. The summit brought together innovators, government officials, utilities, city managers, and practitioners to explore innovative solutions and thinking around the sanitation agenda, with a special focus on Africa and its unique challenges.
The seven winners of the inaugural Inclusive Urban Sanitation Champions Programme were announced during the closing ceremony of the WDCE. This programme, aimed at acknowledging outstanding contributions towards achieving SDG 6.2 in low- and middle-income countries, received an excellent response, with 106 submissions from 21 countries. A distinguished 13-member expert jury evaluated these submissions, highlighting initiatives that advanced sustainable and inclusive sanitation practices. The Champions Programme is structured into seven categories, with one winner selected for each category.
The IUS initiative also presented a new publication at the WDCE. The white paper ‘Sanitation Financing in Eight South Asian and Sub-Saharan African Cities’ aims to shed light on critical aspects related to utility and government financing for urban sanitation. Focused on eight cities across Sub-Saharan Africa and South Asia, the publication covers several important themes, including the types of policies influencing finance allocation within the sanitation sector, resource sufficiency and gaps, equitable allocation to marginalised communities, and financial monitoring, and contributes to the ongoing dialogue on sustainable sanitation practices.
Across the rest of the year, the establishment of a diverse Advisory Board and Task Force, along with the formation of strategic subgroups, underscored the IUS initiative's commitment to addressing urban sanitation challenges comprehensively. Moreover, the initiative remains committed to knowledge generation and dissemination, evidenced by the publication of 35 high-impact case stories, a discussion paper, and an article in IWA’s magazine, _The Source_ . Additionally, the initiative organised three strategic IUS webinars, furthering its reach and impact, and forged new institutional partnerships as shown by the signing of MoUs with two South Asian institutions, ASCI (India) and ITN BUET Bangladesh, during the WCDE.
The Climate Smart Utilities initiative continued its leadership efforts around climate change and water and sanitation services. A key highlight for the year was the second edition of the Climate Smart Utilities Recognition Programme at the WDCE. This honoured 20 utilities in low- and middle-income countries for their innovative efforts in building a lowcarbon water and sanitation sector. Support for participation by utilities in low- and middle-income countries was received through a collaboration with the World Bank’s NewIBNET benchmarking initiative.
In September 2023, the IWA Climate Smart Utilities GHG sub-group released a new short guide titled ‘Greenhouse Gas
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
Emissions and Water Resource Recovery Facilities’. This guide draws upon recent research and publications, emphasizing the importance of life cycle carbon accounting and wider life cycle assessment. It serves as the first instalment in a series focusing on GHG emissions, monitoring, and mitigation in wastewater treatment.
The initiative conducted workshops at both the UN-Water Conference and the Bonn Climate Conference in 2023, in addition to organising a webinar series showcasing Danish national monitoring programmes and initiatives undertaken by utilities. Furthermore, two Community of Practice meetings, attended by 70 participants, delved into discussions on trends in N2O off-gas monitoring in wastewater treatment.
In 2023, the Digital Water Programme (DWP) went from strength to strength, underscoring the pivotal role the programme is increasingly playing in supporting the advance of digital transformation within the water sector. The programme led delivery of the 2[nd] Digital Water Summit, held in Bilbao in November. Further activities under the programme included the launch of several initiatives spotlighting members, including multiple newsletters, podcasts, and blogs underscoring our commitment to knowledge exchange and collaboration within the digital water community.
IWA’s Operations and Maintenance Network (OMN) achieved a significant milestone in 2023 with the launch of the second edition of the Water Safety Plan manual in collaboration with the World Health Organization (WHO). The launch event convened experts and stakeholders from around the world to discuss the importance of water safety planning and share insights and experiences gained over a decade of practical implementation.
Also, IWA’s Specialist Groups (SGs) continue to serve as dynamic hubs of expertise and innovation, driving forwardthinking research and solutions in various domains of water management. In 2023, SG-related developments included the launch of a Cluster on wastewater-based epidemiology and the establishment of the new SG on Sustainable Coastal and Estuarine Development. Throughout the year, SGs organised 23 conferences, conducted over 20 online webinars, and delivered various presentations during the IWA Water and Development Congress & Exhibition. Also, SG leaders actively participated in the first online SG Leaders Forum, focusing on enhancing engagement among SGs.
## **Events**
The year saw what can be regarded as IWA’s most successful Water Development Congress & Exhibition (WDCE) to date. Held on 10-14 December 2023 at Rwanda’s iconic Kigali Convention Centre, the event brought together almost 3000 water and development professionals, organisations, visitors, and companies, primarily from low- and middleincome countries.
The Congress set a benchmark for IWA’s growing presence and support for the sector in Africa, reflecting the critical role of the continent in IWA’s future. With a theme focused on ‘Water, Sanitation, and Climate Resilience – keys to a water-wise future’, the Congress featured an extensive programme, including keynotes, technical sessions, workshops, and five important forums.
Keynote speaker Mathi Vathanan, Principal Secretary from the Government of Odisha in India, set the tone by sharing insights into his state’s successful transition to 24/7 water systems, prioritising the importance of the urban poor and engaging women water teams.
Sanitation and climate resilience were key topics throughout the event, with highlights including the High-Level Summit on Sanitation and the second edition of IWA’s Climate Smart Utilities Recognition Programme.
The success of the event was made possible through collaboration with local, regional, and global partners, especially the Government of Rwanda and utility WASAC Group, who provided invaluable support. The event also saw the announcement of the winners of the prestigious Water and Development Awards 2023 (see later section).
There was participation of delegates representing 85 countries, well over 100 exhibitors, and a comprehensive programme including 39 technical sessions with almost 160 papers and 42 workshops. The special forums were: the High-Level Sanitation Summit; the Innovation Acceleration Forum; the Utility Leaders Forum; the International Water Regulators Forum; and the Emerging Water Leaders Forum. As such, the event provided an outstanding platform focusing on the challenges and opportunities faced by low- and middle-income countries.
The 19[th] edition of IWA’s Leading Edge Conference on Water and Wastewater Technologies was held in Daegu, South Korea on 29 May to 2 June 2023. The successful event saw an impressive turnout, drawing more than 300 participants from 36 countries. This prestigious event served as a platform for the dissemination of cutting-edge research and insights in water and wastewater technologies, featuring 67 top-tier presentations and showcasing more than 100 posters highlighting the latest innovations and findings in the field.
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
IWA’s programme of events for the year also included a highly successful second edition of the Digital Water Summit, held once again in Bilbao Spain. This is focused as a business-to-business event with programme content and structure designed to connect solutions providers and end user water utilities. The event garnered significant attention, with nearly 400 delegates convening to explore the latest innovations and strategies in digital water management.
A further important event-related development was the selection during the IWA Board and Governing Assembly meetings held in September of Kuching, Malaysia and São Paulo, Brazil as the locations for the World Water Congress & Exhibition editions to be held in 2028 and 2030, respectively.
## _**The Source**_ **magazine**
The Source is IWA’s quarterly magazine, delivered both in print and online. It is available to all IWA members as a benefit of membership.
The content of the magazine is specifically intended to reflect IWA’s goal of inspiring a world in which water is wisely managed. It therefore offers features, viewpoints and updates to help readers keep up to speed with the issues that shape the sector and the progress in response to these topics.
Topics covered in detail in 2023 included: experiences of implementing city resilience in New York; the opportunities presented by digital technology for IWA’s development; a leading example from Hong Kong of the use of wastewater based epidemiology as a means of informing public health measures; thinking on the opportunities to progress inclusive urban sanitation; how decentralised approaches offer ways to overcome barriers to access to services; alternative, circular paths for wastewater treatment; progress with improving the sustainability of desalination technologies; and the potential for contract frameworks to support improvements in operations and maintenance.
## **IWA Publishing**
In the third year since the strategic transition to Open Access, IWA Publishing continued to see the impacts of this transformation in 2023.
As of 2023, all IWA Publishing journals have Impact Factors. The median Impact Factor of the journals increased by an average of 3%. The journals outperformed other journals in the JCR Water Resources category by 15.4%. More than half of the journals moved up a quartile, with seven now placed in Q1 or Q2.
The total number of papers published increased from 1636 to 1756, while the total number of citations increased from 5067 to 7828. This impressive 55% growth in citations and the high quality of the journals are thanks to the continued hard work, dedication, and valuable research of our authors and editors.
Work continues to increase the diversity and representativeness of IWA Publishing Journal Editorial teams. Between 2018 and 2023, Editorial Board membership from Africa, Asia, the Middle East, and Latin America grew by 141%. These engagement initiatives will carry on in future years. One of the key objectives of IWA Publishing’s new Strategic Plan is to ensure that the teams running the journals align closely with the authors who publish in them.
The book programme continued to grow in 2023. 70% of titles published were Open Access, increasing the visibility of the authors’ works. The most notable book published during the year was the second edition of Biological Wastewater Treatment: Principles, Modelling and Design, the updated version of IWA Publishing’s bestselling title.
## **Young Water Professionals (YWP)**
IWA’s Young Water Professionals (YWP) community showed notable growth and impactful initiatives through 2023. With the addition of five new Country Chapters globally, the community continues to expand its reach and influence.
A highlight of the year came as part of the YWP Youth Action for SDG 6 Fellowship, a collaboration with Grundfos. The support enabled 13 outstanding YWPs to attend the UN Water Conference in New York, further enhancing their exposure and engagement in water sector discussions. A further result of the collaboration was a publication by the SDG 6 Fellows launched during the WDCE, aiming to underscore the crucial role young individuals play in the UN 2030 SDG Agenda. It focused on illustrating how the water sector can be revolutionised by their passion and ingenuity.
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
A significant milestone in IWA’s youth-related activity was reached in 2023 with the successful establishment of the Emerging Water Leaders Endowment Fund. The fund will support the Emerging Water Leaders Scholarship Programme. The intention to create the programme and fund, and the support of founding donors Glen and Patty Daigger, had been announced at the IWA World Water Congress & Exhibition in 2022. The aim of the fund is to provide a sustainable financial foundation for the future endeavours of the association, playing a crucial role in supporting longterm initiatives and ensuring the continued growth and success of IWA's mission.
The successful staging of the Emerging Water Leaders Forum at the WDCE in Kigali further underscored the commitment and leadership of the next generation in addressing water-related challenges. Lastly, plans to recognise the YWP Chapter of the Year were announced in Kigali, Rwanda, with the inaugural edition slated for celebration during the upcoming Emerging Water Leaders Forum in Toronto in 2024.
## **IWA Awards**
The IWA Water and Development Awards 2023 were announced and presented during the Opening Ceremony of the IWA Water and Development Congress on 10 December in Kigali, Rwanda. The recipients of the IWA Water and Development Awards were Dr Veena Srinivasan for Research and Dr Doulaye Kone for Practice.
These awards honour excellence, leadership, and innovation in the water sector, aiming to promote sustainable water management in low- and middle-income countries. Judged by a diverse panel of experts, they acknowledge outstanding contributions to research or practice that have made a tangible impact in these regions.
In deciding to recognise the achievements of Dr Veena Srinivasan, the judges noted that she demonstrated bravery and passion in her quest to follow an emerging but much-needed knowledge path in socio-hydrology, but also through advocacy for research and the establishment of WELL Labs in Bengaluru, India.
Dr Doulaye Kone of the Bill & Melinda Gates Foundation was lauded for catalysing technological innovations in nonsewered sanitation through the Reinvent the Toilet Challenge and promoting sustainability in faecal sludge management. His visionary leadership has influenced policies and strategies in the water and sanitation sector.
Both winners have extensive experience and have made significant contributions to their respective fields, driving impactful change in water and sanitation.
## **4. FINANCIAL REVIEW**
IWA income is principally based on Gift Aid from its trading subsidiary, IWA Publishing, membership subscriptions and surpluses from its World Water Congress, which is held every two years. Some income is also received through grants and contract income from various organisations. IWA’s income profile tends to fluctuate with surpluses from Congress years used to smooth out lower income in alternate years. 2023 represented an acceptable financial outcome for the group, considering it was a non-World Water Congress year. Additional details on the group's financial results for the year are provided under the section on 'Key financial performance indicators' in Section 2 (page 7). Overall, the result for the year was a deficit of £327,741 (2022: Surplus £1,415,622).
## **Investment policy and performance**
Preservation of capital is the primary objective in guiding the risk profile of the Association’s investment policy. After satisfying the primary objective, the secondary objective is to maximize the return on the investment in accordance with the ethical investment policy. The investment position has been considered from both a Euro and Sterling currency perspective. The group's investments value is £1,251,078 as of 31 December 2023 (2022: £1,164,700). In 2023, there were improvements in performance since 2022 but still falls below benchmark levels.
## **Assessment of going concern**
Trustees are confident that the Association possesses adequate resources to sustain operational continuity for the foreseeable future. This assessment incorporates an evaluation of the reserves as of 31 December 2023, along with financial forecasts extending for at least one year from the approval date of this report and financial statement.
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
Our reserves remain robust due to favorable outcomes from conferences, sustained membership income, and ongoing publishing income. While publishing income has decreased in recent years, our reserves are deemed sufficient to endure any short to medium-term reduction in publishing revenue or other fluctuations. Management consistently conducts scenario analyses to evaluate potential impacts on our reserves. These assessments, combined with prudent financial management practices, ensure our resilience against unforeseen challenges. Despite fluctuations in publishing income, our medium-term financial outlook remains secure. We do not currently anticipate that the overall financial position of the group will be adversely affected, or its financial solvency threatened.
## **Reserves policy**
IWA’s Reserves Policy aims to strike a balance between utilizing the maximum portion of its income to fulfil its charitable objectives and maintaining an adequate level of reserves to ensure uninterrupted operations and provide a buffer to adapt to changes in financial circumstances.
A target range has been adopted for the Association’s reserves, with the higher amount indicating the aspirational level of reserves, and the lower amount indicating the minimum level of reserves that should not be breached. The Board reserves the right to adjust the reserves level based on anticipated future strategic investment needs.
IWA Reserves Target Range: £1.38M - £1.80M
This proposed target range for reserves is deemed appropriate as it strikes a balance between the income needs to fulfil our charitable objectives the necessity to uphold operation as a going concern. It reflects IWA’s business model and considers the potential financial impact of key risks. Given the inherent nature of our operation, flexibility within the range of the reserves is essential.
The group free reserves as of 31 December 2023 are at the level of £ 2,329,511 (compared with 2022: £2,657,031). This is above the intended target range however the Board considers that it is appropriate to hold an additional buffer for future strategic investment needs.
The target range for reserves aims to ensure financial stability, operational resilience, and the ability to fulfil our charitable objectives effectively.
This Reserves Policy will be reviewed periodically and adjusted as necessary to align with the evolving needs and circumstances of IWA.
## **Principal funding**
Principal funding sources for the charity are membership, conferences, Gift Aid Income from its wholly owned subsidiary IWA Publishing Limited and IWA Conference Limited, and grant and contract income from various organisations. The group does not work with any commercial or professional fundraisers and does not solicit donations from the public.
## **5. RISK MANAGEMENT**
The Trustees have assessed the major risks to which the group is exposed, those related to the operations and finances of the Association. They are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The Board recognises the importance of identifying and managing the risks of the Association and its subsidiaries. A risk management framework, which includes a risk and control register, identifying and prioritising the Association's key risks, is maintained. The register includes a programme of control measures and actions to manage material risks. The risk register is reviewed and updated quarterly by the management. A risk report is presented to the Finance and Investment Committee at the following meeting to discuss the basis for any movements in the risk register, and any “emerging risks”, and to confirm the summary which will be presented at the next board meeting. Twice per year, the Board is informed on the status of the risk register and the related mitigation measures.
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **Key internal risks for the Association include:**
- a) Reduction in Gift Aid from IWA Publishing leading to lower revenues to support IWA’s charitable activities:
- b) Overall financial resources will not keep pace with globally expanding IWA roles and responsibilities and associated activities in line with IWA’s 2019-2024 Strategic Plan
- c) Breaches in the security of the IT systems including hacking, unauthorised access, fraud, permanent damage to electronic data, and manipulation of key data.
- d) Business disruption caused by loss of key staff.
## **Key external risks to the Association include:**
- a) Reduction in income due to renegotiation of publishing partnership agreement on less favorable terms
- b) Reduction in income from changes in the publishing landscape and the possible need to transition to a new business model.
- c) Disruption to or reduced income from World Water Congresses.
- d) Risk related to rent review after 5 years (May 2025) leading to significant cost increase.
## **Financial risk management objectives and policies**
The management team reviews, on behalf of the Board, matters concerning accounting, financial reporting, and internal controls, including the risk register. It also reviews the management accounts and the annual report and financial statements before they are submitted to the Board of Trustees and deals directly with the external auditor regarding the conduct of the audit.
## **6. STRUCTURE, GOVERNANCE, AND MANAGEMENT**
## **7. Constitution**
The Association is constituted under a Memorandum of Association dated 13 July 1998 and is a registered charity (number 1076690). The Articles of Association were most 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 £1 in the event of a deficiency of assets on winding up. The total number of such guarantees on 31 December 2023 was 14 (2020: 15)
.
## **Method of appointment or election of Trustees**
The management of the Association is the responsibility of the Trustees who are elected and appointed under the terms of the Articles of Association. As noted earlier, the Trustees also constitute the Board of Directors for the purposes of the Companies Act.
The President and Vice Presidents are elected, and the other Trustees (other than the Executive Director) are appointed, in each case for a two year term, at an Annual General Meeting of the Association.
## **Policies adopted for the induction and training of Trustees**
The Board of Directors 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 covering governance and trustees' legal responsibilities. New Trustees are provided with an induction pack that covers their general duties as well as a briefing on IWA-specific matters such as Strategic and Business Plans, financial reports, governance documents, and other relevant reports. All Board members attended a training session on the Duties and Responsibilities of Directors and Trustees in February 2023.
## **Organisational structure and decision-making**
The Board of Directors is responsible for the management of the affairs of the Association. It sets the strategic direction of the Association, appoints the Executive Director (also a Trustee), and provides financial and programme oversight to the Association. The Board generally meets at least four times each year. The four meetings in the year were in London (February 2023), Toronto (May 2023), Bordeaux (September 2023) and by video (December 2023).
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
Additional meetings of the Board may be called as required, and the Articles of Association allow for written resolutions to be circulated for approval. Board Committees (see pages 14 and 15) support the Board in its role.
## **The Board of Directors**
The names of the individuals serving on the Board, at any time during the year of report and up to the date of approval of this report, are as follows:
Thomas Mollenkopf AO (President, Chair) Kalanithy Vairavamoorthy (Executive Director) Marie-Pierre Whaley (Senior Vice President)
Daniel A Nolasco (Vice President) Teodor Popa (Treasurer) Rose Kaggwa Walter Kling Sankaralingam Mohan María Molinos-Senante Elisabeta Poci Harsha Ratnaweera Satoshi Takizawa Peter Vanrolleghem Xiaochang Wang Hamanth Kasan (President-Elect, appointed on 16 September 2023)
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**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **The Board of Directors (continued)**
The Board comprises elected officers and other officeholders. Under the Articles of Association, all Board members (except the Executive Director) serve two-year terms. The elected officers (President and two Vice Presidents) generally serve for a single term of two years but may be re-elected to serve a second term. The other officeholders will usually serve two terms on the Board, aside from the Immediate Past President, who is limited to a single term.
The Board nominations process is overseen by the Governance and Nominations Committee and, to the extent possible, a practice of rolling retirements is adopted to maintain continuity on the Board.
By accepting to serve on the Association’s Board, Trustees commit to conduct themselves in accordance with the highest ethical standards in carrying out their responsibilities. The Board 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 responsibilities to the Board.
## **Governing Assembly**
The Governing Assembly is comprised of the representatives of the Governing Members around the world, each of whom is entitled to appoint three representatives to the assembly.
The Governing Assembly meets at least annually and is responsible for electing the Officers of the Association and appointing other Office holders and approving constitutional changes. As mentioned above, the 2023 AGM and Governing Assembly were held in Bordeaux, France on 16 September 2023, in accordance with the articles of association. The Governing Assembly ensures that the interests of members – including Individual, Corporate and Governing Members – are represented and it provides oversight and input into the Association’s overall direction. The Governing Members of IWA represent the core mechanism for national and regional interaction with members across a range of issues.
## **Key Committees and Strategic Council**
The Association has established a number of key Committees and a Strategic Council, each of which plays a specific role in the Association’s governance or activities. Further details on the Strategic Council and the various Board Committees are provided below.
## **Finance and Investment Committee**
Teodor Popa (Treasurer) chairs the Finance and Investment Committee. Other members of the committee are Hamanth Kasan (President-Elect), Marie-Pierre Whaley (past Treasurer) (resigned 24[th] February 2024), and Mr Matthew Woolcock (Member nominated). Mr Thomas Mollenkopf (President) and Dr Kalanithy Vairavamoorthy (Executive Director) are ex officio members. It reviews, on behalf of the Board, matters concerning accounting, financial reporting and internal controls, including the Risk Register. It also reviews the management accounts and the annual report and financial statements before they are submitted to the Board of Trustees and deals directly with the external auditor regarding the conduct of the audit. It also, on behalf of the Board, sets the Investment Manager’s mandate and monitors performance on a quarterly basis.
14
**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **The Governance and Nomination Committee**
Marie-Pierre Whaley (Senior Vice President) chairs the Governance and Nomination Committee. Other members of the committee are Rose Kaggwa, Walter Kling, Elisabeta Poci, Satoshi Takizawa and Yang Villa. Thomas Mollenkopf (President) and Kalanithy Vairavamoorthy (Executive Director) are ex officio members. The Committee advises the Board on corporate governance matters for the Association, including its subsidiaries, committees, and other Association entities; assists the President or the Board to ensure that 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 Membership and Engagement Committee**
Daniel A Nolasco (Vice President) chairs the Membership and Engagement Committee. Other members of the committee are Ed McCormick, Sankaralingam Mohan, María Molinos-Senante, Harsha Ratnaweera and Xiaochang Wang. Thomas Mollenkopf (President) and Kalanithy Vairavamoorthy (Executive Director) are ex officio members. The Committee provides necessary policy oversight concerning the Association members, their expectations, and their participation follows the effectiveness of the recruitment process, discusses new schemes of membership, discusses the communications policy towards different segments of members, and the schemes of honours and awards.
## **Strategic Council**
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 to the Association in the development of new activities and in the coordination of key existing activities.
## **Key management personnel**
The IWA Management Team, led by the Executive Director Kalanithy Vairavamoorthy, comprises several Directors: Varghese Babu (IT & Digital Transformation Director); Daniela Bemfica (Strategic Programmes & Engagement Director); Keith Hayward (Marketing & Communications Director); Tao Li (Strategy & Development Director);; Kizito Masinde (Events and Awards Director); Satkunam Murugathas (Finance Director & Company Secretary); and Keith Robertson (Operations Director).
The Trustees consider that they, together with the IWA Management Team, comprise the Association’s key management personnel, in charge of directing and controlling the charity.
Except for the Executive Director, none of the Trustees are remunerated for their services to the charity. The Executive Director is remunerated (as permitted under clause 5.2 of the charity's memorandum of association) for his role as Executive Director. The Executive Director's remuneration is set by the non-executive members of the Board based on benchmarking of similar international roles in the charity or NGO sector and having regard to prevailing market rates.
The remuneration of the members of the IWA Management 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.
15
**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **IWA Publishing Limited**
The Association has a wholly owned subsidiary, IWA Publishing Limited (IWAP), the principal business of which is the provision of publishing and information products and services to the international water supply and wastewater market. This includes the production and distribution of various publications of the Association. Profits are transferred to the Association by way of Gift Aid. The financial results and year-end position of the subsidiary have been incorporated in the consolidated financial statements accompanying this report.
## **Other related companies**
## **In India:**
- IWAT Science and Technology Private Limited
- IWA also owns the following companies in full, which have remained dormant since incorporation:
- IWA – Conferences Limited
- IWA Solutions International Limited
- IWA Global Enterprises Limited (previously named Aquarating Limited)
IWA also created NGOs in Kenya - called IWA Africa - and in India - called IWAI Water Foundation. Both have remained dormant since their creation.
## **8. FUTURE PLANNING**
IWA’s 2019-2024 Strategic Plan has been in operation following its adoption at the Governing Assembly held at the 2018 IWA World Water Congress & Exhibition in Tokyo. This plan remains effective as the strategic foundation for the day-to-day activities of the organisation. We are actively progressing further implementation of the plan, working with our members, strengthening our Association’s membership value, providing insights into trends for the sector and beyond, being a platform for members to exchange knowledge and accelerate the diffusion of innovation, and collaborating on opportunities to address the SDG challenges.
Alongside continuing with implementation of the current plan, a new Strategic Plan for 2025-2030 will be developed during the year. The development and adoption of the new plan will be overseen by the IWA Board of Directors.
Importantly, the current IWA Strategic Plan refers to diversity. This is backed by a strong Board-level commitment to champion diversity throughout the organisation. Actions to progress diversity include working across the Association’s many structures, rotating roles to extend this diversity, and monitoring our progress. For 2024, IWA anticipates being able to further progress its plans of achieving more comprehensive progress on diversity. Leveraging the success of the 2023 Water and Development Congress & Exhibition in Kigali, Rwanda, this will be especially in terms of supporting and securing more equal participation by low- and middle-income countries, as well as individuals and organisations from these countries, with the support of funding received from the Bill & Melinda Gates Foundation.
Likewise, there is a great need for more rapid progress with inclusive urban sanitation, particularly in low- and middleincome countries. Continuing work with the Inclusive Urban Sanitation initiative will advance creation and uptake of a framework with broad practical application to define global goals and the core principles of a public service approach to outcomes that can advance inclusive urban sanitation, particularly in low- and middle-income countries.
We will also continue to work to make our published material more easily accessible online and available in different languages, to enhance our contribution to resolving water challenges around the world. This will be done by building on the progress with Open Access achieved during 2021-2023.
In addition to this, IWA officially launched its new digital membership platform, IWA Connect Plus, at the start of 2023. This platform improves on core needs, such as membership administration. It also provides the basis for enhanced and expanded functionality in terms of information sharing and networking, strengthening IWA’s membership offering. During 2024, we will work to widen the benefits achieved with the platform, especially in terms of its use by key
16
**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
communities such as our Governing Members and Specialist Groups.
## **Five-year goals**
The Strategic Plan is based on the following five commitments for the IWA to achieve over the coming five years:
**1. An engaged and balanced membership -** The IWA will have an engaged membership that is globally representative of the multiple segments, actors, and practice areas of the water sector.
**2. A source for leading-edge water knowledge -** The IWA will have strengthened our position as an authoritative source and a global reference point for water knowledge, addressing and informing on emerging and potentially disruptive trends within the sector and the wider world.
**3. A space for professionals to exchange water knowledge -** The IWA will have provided a broad range of professional content and programming that is relevant and widely valued by the water sector worldwide.
**4. A bridge between research and practice -** The IWA will play a pivotal role in bridging the chasm between research and practice to accelerate the development and diffusion of innovation in the global water sector.
**5. Support to the implementation of SDGs -** The IWA will support and promote the Sustainable Development Goals and strengthen the sector through professional and capacity development so that people and countries can pursue their ambitions in relation to water-related SDGs.
## **8. TRUSTEES’ RESPONSIBILITIES STATEMENT**
The Trustees (who are also Directors of the International Water Association for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of income and expenditure of the group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by charities;
- make a Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland (FRS 102);
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departure disclosed and explained in the financial statements;
- prepare the financial statements on a going concern basis, unless 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 any time the financial position 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 charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
17
**International Water Association**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
## **Disclosure of information to auditor**
In so far as the Trustees are aware:
- there is no relevant audit information of which the group's auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Approved by the Trustees and signed on their behalf by:
Mr. Thomas Mollenkopf AO President and Chairman
Approved on: 29 May 2024
18
**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’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise 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 statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on International Water Association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
19
**Independent auditor’s report**
## **To the members of**
## **International Water Association**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements
- The trustees’ annual report, including the strategic report has been prepared in accordance with applicable legal requirements
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- The parent charitable company financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and
20
**Independent auditor’s report**
## **To the members of**
## **International Water Association**
non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the 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 statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities _._ This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Orchard (Senior statutory auditor)
## DATE
for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 110 Golden Lane, LONDON, EC1Y 0TG
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
21
## **International Water Association**
**Consolidated statement of financial activities** (incorporating an income and expenditure account)
## **For the year ended 31 December 2023**
|Note
**Income from:**
2
2
2
2
2
2
2
4
**Reconciliation of funds:**
Charitable activities
Other trading activities
Membership subscriptions
Income from projects and grants
Income from conferences
Income from publications
Income from Nanjing operation
Other sales income
Investment management costs
Publications costs
Nanjing operations costs
Investments
Other
**Total income**
**Expenditure on:**
Raising funds
**Total expenditure**
Charitable activities
Engaged & collaborative membership
Source of leading-edge water knowledge
Platform for water knowledge exchange
Bridging science to practice
Income from Events
**Total funds carried forward**
Transfers between funds
**Net income / (expenditure) before other**
**recognised gains and losses**
Actuarial losses on defined benefit pension
schemes
**Net movement in funds**
Total funds brought forward
**Net (expenditure) / income, before net gains on**
**investments**
Net gains on investments
**Net income / (expenditure) for the year**|Continuing
Unrestricted
£
648,451
-
603,091
3,902,360
159,038
-
30,198
30,778
2,074|Restricted
and
endowment
£
-
788,200
16,060
-
-
-
-
-|**2023**
**Total**
**£**
**648,451**
**788,200**
**619,151**
**3,902,360**
**159,038**
**-**
**30,198**
**30,778**
**2,074**|Restated
Continuing
Unrestricted
£
653,149
-
4,039,999
4,006,670
-
-
38,518
26,371
145,144|Discontinued
Unrestricted
£
-
-
-
-
-
42,053
-
-
-|Restricted
and
endowment
£
-
1,562,463
-
-
-
-
-
-
-|Restated
2022
Total
£
653,149
1,562,463
4,039,999
4,006,670
-
42,053
38,518
26,371
145,144|
|---|---|---|---|---|---|---|---|
||5,375,990|804,260|**6,180,250**|8,909,852|42,053|1,562,463|10,514,368|
||10,257
2,068,999
-
1,696,216
468,757
1,173,229
487,150|-
-
-
-
-
17,821
654,413|**10,257**
**2,068,999**
**-**
**1,696,216**
**468,757**
**1,191,050**
**1,141,563**|10,889
2,004,202
-
1,874,032
467,619
3,199,371
596,476|-
-
497,762
-
-
-
-|-
-
-
-
-
-
260,568|10,889
2,004,202
497,762
1,874,032
467,619
3,199,371
857,044|
||5,904,607|672,234|**6,576,841**|8,152,589|497,762|260,568|8,910,919|
||(528,617)
67,992|132,026
**-**|**(396,591)**
**67,992**|757,263
(187,827)|(455,709)
**-**|1,301,895
**-**|1,603,449
(187,827)|
||(460,625)
14,045|132,026
(13,187)|**(328,599)**
**858**|569,436
53,035|(455,709)|1,301,895
(53,035)|1,415,622
-|
||(446,580)
-|118,839
-|**(327,741)**
**-**|622,471
-|(455,709)
-|1,248,860
-|1,415,622
-|
||(446,580)
3,012,958|118,839
1,293,823|**(327,741)**
**4,306,781**|622,471
2,391,347|(455,709)
454,849|1,248,860
44,963|1,415,622
2,891,159|
||2,566,378|1,412,662|**3,979,040**|3,013,818|(860)|1,293,823|4,306,781|
Discontinued activities relate to Nanjing operations. All other activites are continuing. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21a to the financial statements.
22
**International Water Association**
Company no. 03597005
## **Balance sheets**
## **As at 31 December 2023**
|**As at 31 December 2023**||||Company no. 03597005|Company no. 03597005|
|---|---|---|---|---|---|
|||**The group**|**The group**|**The charity**||
||||restated||restated|
|||**2023**|2022|**2023**|2022|
||Note|**£**|**£**|**£**|£|
|**Fixed assets:**||||||
|Intangible assets|9|**13,455**|44,190|**-**|-|
|Tangible assets|10|**223,412**|312,595|**221,478**|312,595|
|Investments|11|**1,251,078**|1,164,700|**1,401,081**|1,314,703|
|||**1,487,945**|1,521,485|**1,622,559**|1,627,298|
|**Current assets:**||||||
|Stock|14|**2,216**|52,953|**-**|-|
|Debtors|15|**2,091,179**|2,289,204|**1,448,002**|1,669,510|
|Cash at bank and in hand||**3,550,617**|4,354,381|**2,553,157**|3,336,724|
|||**5,644,012**|6,696,538|**4,001,159**|5,006,234|
|**Liabilities:**||||||
|Creditors: amounts falling due within one year|16|**(3,032,917)**|(3,791,242)|**(1,524,678)**|(2,205,893)|
|**Net current assets**||**2,611,095**|2,905,296|**2,476,481**|2,800,341|
|**Total assets less current liabilities**||**4,099,040**|4,426,781|**4,099,040**|4,427,639|
|Creditors: amounts falling due after one year|18|**(120,000)**|(120,000)|**(120,000)**|(120,000)|
|**Net assets excluding pension asset / (liability)**||**3,979,040**|4,306,781|**3,979,040**|4,307,639|
|Defined benefit pension scheme asset|19|**-**|-|**-**|-|
|**Total net assets**||**3,979,040**|4,306,781|**3,979,040**|4,307,639|
|**Funds:**|21a|||||
|Restricted income funds||**666,206**|1,293,823|**666,206**|1,293,823|
|Endowment funds||**746,456**||**746,456**||
|Unrestricted income funds:||||||
|Designated funds||**236,867**|355,927|**236,867**|356,785|
|Revaluation reserve||**207,169**|139,177|**207,169**|139,177|
|General funds||**2,122,342**|2,517,854|**2,122,342**|2,517,854|
|Non-charitable subsidiary funds||**-**|-|-|-|
|Pension reserve||**-**|-|-|-|
|Total unrestricted funds||**2,566,378**|3,012,958|**2,566,378**|3,013,816|
|**Total funds**||**3,979,040**|4,306,781|**3,979,040**|4,307,639|
Approved by the trustees on 28th May 2024 and signed on their behalf by 9
Thomas Mollenkopf President and Chairman
23
**International Water Association**
## **Consolidated statement of cash flows**
## **For the year ended 31 December 2023**
|**For the year ended 31 December 2023**|||||
|---|---|---|---|---|
|Note
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Amortisation charges
Gains on investments
Dividends, interest and rent from investments
Foreign exchange loss
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase in creditors
**Net cash provided by operating activities**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
**Change in cash and cash equivalents in the year**
Change in cash and cash equivalents due to exchange
rate movements
**Cash flows from operating activities**
**Net cash provided used in investing activities**
**Cash flows from investing activities:**
Investment income
Purchase of tangible and intangible fixed assets
Proceeds from sale of investments
Purchase of investments
Finance and administrative costs in respect of defined
benefit pension scheme
Change in cash held by investment manager
Disposal of tangible and intangible fixed assets|**£**
**(327,741)**
**92,083**
**30,735**
**(67,992)**
**(30,778)**
**-**
**50,736**
**-**
**198,025**
**(758,325)**
**30,778**
**(2,900)**
**-**
**316,293**
**(347,292)**
**12,614**|**£**
**2023**|restated
£
1,442,961
118,262
69,646
187,827
(26,371)
-
(144,747)
-
(555,491)
160,732
26,371
(17,516)
167,517
218,316
(227,611)
(6,187)|restated
£
2022|
|||**(813,257)**
**9,493**||1,252,819
**160,890**|
||||||
|||**(803,764)**
**4,354,381**
**-**||1,413,709
2,940,672
-|
|||**3,550,617**||4,354,381|
24
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **1 Accounting policies**
## **a) Company status**
The Association is a charitable company limited by guarantee and is incorporated in England.
The registered office address is Export Building, First Floor, 1 Clove Crescent, London, E14 2BA.
## **b) Basis of preparation and consolidation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
These financial statements consolidate the results of the Association and its wholly-owned subsidiaries IWA Publishing Limited and Nanjing IWA Science & Technology Co. Ltd. Transactions and balances between the charity and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the Association itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
## **c) Public benefit entity**
The charity meets the definition of a public benefit entity under FRS 102.
## **d) Assessment of going concern**
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements. In forming their assessment, the Trustees have also given consideration to financial forecasts and business plans, including group entities. They have also given due consideration to the impact of the COVID-19 pandemic on the group's operations, with a focus on its effect on the Association's membership, customers, suppliers, employees and investments. The Trustees acknowledge the disruption caused by the pandemic to the group's day-today operations and confirm that they do not consider this to be cause for material uncertainty in respect of the group's ability to continue as a going concern. The group has successfully employed contingency plans, and trustees have considered that the charity has sufficient cash resources to continue for the foreseeable future, despite the current crisis.
The Trustees have therefore concluded that the group has adequate resources to continue in operational existence for the foreseeable future and to meet liabilities as they fall due for a period of at least 12 months following the Trustees' approval of these financial statements. Further commentary on the Trustees' assessment of going concern may be found within the Trustees' report accompanying the financial statements.
25
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **1 Accounting policies (continued)**
## **e) Critical accounting estimates and areas of judgement**
Preparation of the financial statements requires the trustees and management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
- The estimate of the group's liability in respect of a defined benefit pension scheme previously offered to IWA staff, the valuation of which has been estimated by an independent actuary taking account of various assumptions including the long term rates of return on scheme assets, the long-term anticipated rate of inflation, the life expectancy of scheme participants, and the discount rate applied;
- The estimates of the useful economic lives of tangible and intangible fixed assets used to determine the annual depreciation charge;
- The estimated future cost of reinstating short term leasehold property to its original condition in line with the terms of the lease agreement
- The assumptions adopted by the trustees and management in determining the value of any designations required from the charity's general unrestricted funds;
- The basis on which support costs have been allocated across expenditure headings; and
- Judgements and assumptions made in forecasting future income and expenditure for the purposes of assessing whether the going concern basis of preparing the financial statements is appropriate.
## **f) Income**
All income is recognised once the Association or group has entitlement to the income, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount of income receivable can be measured reliably.
Donated services or facilities are recognised when the Association or group has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and the economic benefit can be measured reliably.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the gift to the Association or group which is the amount the Association or group would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.
## **g) Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Association and which have not been designated for other purposes.
Designated funds comprise of unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
The investments revaluation reserve is an unrestricted fund and reflects the balance included within fixed asset investments which has arisen as a consequence of the cumulative impact of market value changes to the Association's investment assets.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have bene raised by the Association for particular purposes. The costs of raising and administering such funds are charged against the specific fund. the aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **h) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
All expenses including support costs and governance costs are allocated to the applicable expenditure headings.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
The estimated costs of reinstating short term leasehold property is also capitalised at the point of the modification works being undertaken.
26
**International Water Association**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **1 Accounting policies (continued)**
## **i) Allocation of support costs**
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.
Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.
Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.
|�|Engaged & collaborative membership|46%|
|---|---|---|
|�|Source of leading-edge water knowledge|10%|
|�|Platform for water knowledge exchange|19%|
|�|Bridging science to practice|25%|
|�|Support costs|0%|
|�|Governance costs|0%|
Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.
|�|Engaged & collaborative membership|25%|
|---|---|---|
|�|Source of leading-edge water knowledge|25%|
|�|Platform for water knowledge exchange|25%|
|�|Bridging science to practice|25%|
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
## **j) Tangible fixed assets**
Assets are capitalised where the purchase price exceeds £500.
Tangible fixed assets are stated at cost less depreciation. The estimated cost of reinstating short term leasehold properties is also capitalised at the point of the modification works being undertaken.
Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value over their expected useful lives on the following basis:
|�|Leasehold improvements|10 years straight line|
|---|---|---|
|�|Fixtures and fittings|5-6 years straight line|
|�|Office equipment|6 years straight line|
|�|Computer equipment|3 years straight line|
## **k) Intangible fixed assets**
Assets are capitalised where the purchase price exceeds £500.
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Computer equipment
5 years straight line
## **l) Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.
Investments in subsidiary companies which are unlisted are carried on the Association's balance sheet at cost less impairment.
27
**International Water Association**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **1 Accounting policies (continued)**
## **m) Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation.
## **n) Taxation**
The Association is an exempt charity within the meaning of schedule 3 of the Charities Act 2021 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. The group's liability for current tax in this regard is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period within the relevant jurisdiction. The group incurred tax charges in Nanjing, China.
## **o) Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.
## **p) Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **q) Creditors and provisions**
Creditors and provisions are recognised where the Association has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Long term liabilities are discounted where the effect of discounting would be material to the accounts.
## **r) Financial instruments**
The Association only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **s) Foreign currencies**
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Exchange gains and losses are recognised in the Statement of Financial Activities.
## **t) Pensions**
Group employees are able to participate in defined contribution schemes administrated in the UK, Netherlands and China. The assets of the schemes are held separately from those of the group. In addition, IWA Publishing Ltd makes contributions into the personal pension plans for some of its employees. The costs of providing pensions are charged to the SOFA as incurred, i.e. in line with the contribution payable by the group in the period.
The Association also previously offered employees access to a defined benefit pension scheme administered in the UK. The defined benefit pension scheme is now closed to future new entrants and there are no remaining active members in the scheme. For the defined benefits scheme, the Statement of Financial Activities (SOFA) is charged with the cost of providing pension benefits earned by former employees in the period. The expected return on pension scheme assets less the interest on the pension scheme liabilities is included as part of this charge. Actuarial gains and losses arising in the period for the difference between actual and expected returns in the pension scheme assets, experience gains and losses on pension scheme liabilities and the effect of changes in demographics and financial assumptions, are included as after recognised gains and losses in the Statement of Financial Activities. The accumulated pension scheme deficit is recognised in full and included in the balance sheet. However, in the event that the scheme is in net surplus position, the asset is not recognised in the balance sheet as it is not expected that the surplus will be realisable by the Association until after buying out pension benefits to the pensioners.
## **u) Conferences**
The World Water Congress is held bi-annually. Expenditure incurred in preparing for the Congress is also carried forward and recognised in the year of the Congress itself, except for the cost of staff time which is recognised in the financial year in which the services were rendered by the employees.
28
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **1 Accounting policies (continued)**
## **v) Specialist group funds**
Specialist groups run independently from the Association and their income, expenditure, assets and liabilities are not included in the Association's financial statements.
Where specialist groups use the Association's services, these are charged to the group and shown as income for the Association. In many cases, this relates to a share of income from events organised by the specialist group in agreement with the Association. This income is accounted for once confirmation is received of the amount due and it is reasonably certain that it will be received.
The Association holds funds on behalf of the specialist groups. The balances due to the groups are included in creditors.
29
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **2a Analysis of expenditure (current year)**
|Staff costs (Note 5)
Other costs
Investment management costs
Support costs within subsidiaries
Rents, rates and services
Legal and professional fees
IT costs
Insurance
Depreciation and impairment
Audit
AGM and Trustee meetings
Support costs
Governance costs
**Total expenditure 2023**
Total expenditure 2022||Raisingfunds|||Charitable activities|Charitable activities||Governance
costs
£
20,000
-
-
-
-
-
-
-
-
22,900
219,463|Support costs
£
60,000
-
-
35,347
201,929
34,888
43,312
39,084
70,087
-
-|**2023 Total**
**£**
**3,339,444**
**2,260,134**
**10,257**
**68,913**
**324,163**
**63,027**
**85,327**
**54,125**
**123,788**
**28,200**
**219,463**|2022 Total
£
3,439,372
4,625,399
-
98,015
292,039
51,434
71,459
60,966
199,994
18,184
54,059|
|---|---|---|---|---|---|---|---|---|---|---|---|
||Investment
Management
£
-
-
10,257
-
-
-
-
-
-
-
-|Publications
£
829,587
939,416
-
33,566
122,234
28,139
42,015
15,041
53,701
5,300
-|Nanjing
Operation -
discontinued
£
-
-
-
-
-
-
-
-
-
-
-|Engaged &
collaborative
membership
£
1,165,661
239,649
-
-
-
-
-
-
-
-
-|Source of
leading-edge
water
knowledge
£
234,488
120,576
-
-
-
-
-
-
-
-
-|Platform for
water
knowledge
exchange
£
450,375
582,696
-
-
-
-
-
-
-
-
-|Bridging
science to
practice
£
579,333
377,797
-
-
-
-
-
-
-
-
-|||||
||10,257
-
-|2,068,999
-
-|-
-
-|1,405,310
225,315
65,591|355,064
48,102
65,591|1,033,071
92,388
65,591|957,130
118,842
65,591|262,363
-
(262,363)|484,647
(484,647)
-|**6,576,841**
**-**
**-**|8,910,921
-|
||**10,257**|**2,068,999**|**-**|**1,696,216**|**468,757**|**1,191,050**|**1,141,563**|**-**|**-**|**6,576,841**|8,910,921|
||10,889|2,004,202|497,762|1,894,036|458,392|3,189,754|855,881|-|-|||
30
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **2b Analysis of expenditure (prior year)**
|**Analysis of expenditure (prior year)**|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|Staff costs (Note 5)
Other costs
Investment management costs
Support costs within subsidiaries
Rents, rates and services
Legal and professional fees
IT costs
Insurance
Depreciation and impairment
Audit
AGM and Trustee meetings
Support costs
Governance costs
**Total expenditure 2022**||Raising funds|||Charitable activities|||Governance
costs
£
20,000
3,250
-
-
-
-
-
-
-
9,000
54,059|Support costs
£
60,000
-
-
98,015
200,727
39,015
50,749
42,545
59,258
-
-|2022
Total
**£**
**3,439,370**
**4,625,399**
**-**
**98,015**
**292,039**
**51,434**
**71,459**
**60,966**
**199,994**
**18,184**
**54,059**|
||Investment
Management
£
-
10,889
-
-
-
-
-
-
-
-
-|Publications
£
874,043
903,394
-
-
81,786
5,325
20,382
17,410
92,862
9,000
-|Nanjing
Operation -
discontinued
£
392,276
39,469
-
-
9,526
7,094
328
1,011
47,874
184
-|Engaged &
collaborative
membership
£
1,120,386
419,956
-
-
-
-
-
-
-
-
-|Source of
leading-edge
water
knowledge
£
233,189
155,747
-
-
-
-
-
-
-
-
-|Platform for
water
knowledge
exchange
£
219,100
2,905,039
-
-
-
-
-
-
-
-
-|Bridging
science to
practice
£
520,376
187,655
-
-
-
-
-
-
-
-
-||||
||10,889
-
-|2,004,202
-
-|497,762
-
-|1,540,342
312,113
21,577||||86,309
-
(86,309)|550,309
(550,309)
-|**8,910,919**
**-**|
||**10,889**|**2,004,202**|**497,762**|**1,874,032**|**467,619**|**3,199,371**|**857,044**|**-**|**-**|**8,910,919**|
31
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **3**
## **Other activities**
During the year, the Association deregistered its wholly owned subsidiary, Nanjing IWA Science & Technology Co. Ltd, registered in Nanjing, China, following the decision to close its operations in Nanjing.
## **4 Net income / (expenditure) after taxation, before net gains on investments**
This is stated after charging / (crediting):
|This is stated after charging / (crediting):|||
|---|---|---|
||**2023**|2022|
||**£**|£|
|Depreciation of tangible fixed assets|**92,083**|118,262|
|Amortisation of intangible fixed assets|**30,735**|69,646|
|Loss or profit on disposal of fixed assets|||
|Auditor's remuneration:|||
|Statutory audit|**28,200**|18,500|
|Other services|**1,500**|1,500|
|Foreign exchange gains or losses|**(56,952)**|144,747|
- **5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
Staff and consultants costs were as follows:
|Salaries and wages
Pension costs
Redundancy and termination costs
Social security costs
Consultants charges
Other benefits costs|**2023**
**£**
**2,455,515**
**20,432**
**294,634**
**308,506**
**229,796**
**30,561**|2022
£
2,665,076
71,608
283,168
294,043
125,477
-|
|---|---|---|
||**3,339,444**|3,439,372|
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:
|£250,001 - £260,000
£140,001 - £150,000
£150,001 - £160,000
£130,001 - £140,000
£80,001 - £90,000
£90,001 - £100,000
£60,001 - £70,000
£70,001 - £80,000
£100,001 - £110,000
£260,001 - £270,000|**2023**
**No.**
**1**
**2**
**3**
**3**
**1**
**-**
**-**
**1**
**-**
**1**|2022
No.
2
1
4
1
-
1
2
-
1
**-**|
|---|---|---|
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £1,284,157 (2022: £987,912).
The total contributions to the defined contribution pension schemes during the year was £161,215 (2022: £145,712). At the year end £132 (2022: £nil) was outstanding.
No fees or remuneration are paid to any members or officers of the Association with the exception of the Executive Director who received £282,735 during the year (2022: £270,900). Clause 4 of the Memorandum of the Association provides specific power to make such payment to the Executive Director. The Association incurred a total of £208,626 (2022: £53,905) in respect of international travel, subsistence and venue costs for 13 (2022:6) Board members.
During the year the Association maintained an Indemnity Insurance cover for its officers for up to £10 million (2022: £10 million) at a cost of £7,000 per annum (2022 £6,750).
32
**International Water Association**
**Notes to the financial statements**
**For the year ended 31 December 2023**
## **6 Staff numbers**
The average number of employees (head count based on number of staff employed) during the year was 51 (2022: 51).
The average number of employees during the year was as follows (including casual and part-time staff):
|Management and administration
Charitable activities
Publishing activities|**2023**
**No.**
**34**
**13**
**4**|2022
No.
33
14
4|
|---|---|---|
||**51**|51|
## **7 Related party transactions**
During the year Trustees received reimbursement of expenses as set out in note 5.
Trustees are required to be members of the Association, for which they pay the Association a membership fee. Furthermore, they may from time to time purchase goods or services from the Association (e.g. books, journals, conference attendances). The payment of fees or purchase of good or services are on normal commericial terms with no preferential treatment by virtue of being a trustee.
Other than the above, there were no related party transactions to report in the period of report (2022: none).
## **8 Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary IWA Publishing Limited distributes under Gift Aid available profits to the parent charity. Its charge to corporation tax in the year was:
|
year was:||||
|---|---|---|---|
|||**2023**|2022|
|||**£**|£|
|UK corporation tax at|19%|**-**|-|
33
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **9 Intangible fixed assets**
|**Intangible fixed assets**|||
|---|---|---|
|At the end of the year
**Amortisation**
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
**The group**
**Cost**
At the start of the year
Additions in year
Disposals in year
**Net book value**
**At the end of the year**
At the start of the year|Online platform
£
346,448
-
-|**Total**
**£**
**346,448**
**-**
**-**|
||346,448|**346,448**|
||302,258
30,735
-|**302,258**
**30,735**
**-**|
||332,993|**332,993**|
||13,455|**13,455**|
||44,190|44,190|
All of the above assets are used for charitable purposes.
34
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **10 Tangible fixed assets**
|**At the end of the year**
**Cost**
**Depreciation**
**Net book value**
Disposals in year
**The group**
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
**Cost**
Additions in year
At the start of the year
At the end of the year
**At the end of the year**
At the start of the year
**The charity**
At the start of the year
Additions in year
Disposals in year
**Depreciation**
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
**Net book value**|Leasehold
improvement
£
120,000
-
-|Fixtures and
fittings
£
409,442
-
-|Office
equipment
£
13,674
-
-|Computers
£
108,607
2,900
(64,151)|**Total**
**£**
**651,723**
**2,900**
**(64,151)**|
|---|---|---|---|---|---|
||120,000|409,442|13,674|47,356|**590,472**|
||36,000
12,000
-|196,717
70,371
-|6,226
2,279
-|100,185
7,433
(64,151)|**339,128**
**92,083**
**(64,151)**|
||48,000|267,088|8,505|43,467|**367,060**|
||72,000|142,354|5,169|3,889|**223,412**|
||84,000|212,725|7,448|8,422|312,595|
||Leasehold
improvement
£
120,000
-
-|Fixtures and
fittings
£
409,442
-
-|Office
equipment
£
13,674
-
-|Computers
£
94,070
-
(64,151)|**Total**
**£**
**637,186**
**-**
**(64,151)**|
||120,000|409,442|13,674|29,919|**573,035**|
||36,000
12,000
-|196,717
70,371
-|6,226
2,279
-|85,648
6,467
(64,151)|**324,591**
**91,117**
**(64,151)**|
||48,000|267,088|8,505|27,964|**351,557**|
||72,000|142,354|5,169|1,955|**221,478**|
||84,000|212,725|7,448|8,422|312,595|
All of the above assets are used for charitable purposes.
35
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **11 Investments**
|**Investments**|||||
|---|---|---|---|---|
|Investment in subsidiaries
Fair value at the start of the year
Investments comprise:
Additions at cost
Disposal proceeds
Net gain / (loss) on change in fair value
Fair value at the end of the year
Cash held by investment broker pending reinvestment
Shares listed on the London Stock Exchange
Overseas listed investments
Unlisted income bonds in the UK|**2023**
2022
**£**
£
**1,164,700**
1,311,602
**347,292**
227,611
**(316,293)**
(218,316)
**36,363**
(187,827)
**1,232,062**
1,133,070
**19,016**
31,630
**1,251,078**
1,164,700
**2023**
2022
**£**
£
**558,878**
531,950
**642,200**
582,750
**50,000**
50,000
**-**
-
**1,251,078**
1,164,700
**The group**
**The group**||**2023**
2022
**£**
£
**1,314,703**
1,461,605
**347,292**
227,611
**(316,293)**
(218,316)
**36,363**
(187,827)
**1,382,065**
1,283,073
**19,016**
31,630
**1,401,081**
1,314,703
**2023**
2022
**£**
£
**558,878**
531,950
**642,200**
582,750
**50,000**
50,000
**150,003**
150,003
**1,401,081**
1,314,703
**The charity**
**The charity**||
||**1,251,078**|1,164,700|**1,401,081**|1,314,703|
36
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **12 Subsidiary undertakings**
The Association holds a controlling interest in IWA Publishing Limited, IWA Conferences Limited, IWA Development Solutions Limited, IWA Global Enterprises Limited, Nanjing IWA Science & Technology Co. Ltd (China), IWAT Science and Technology Private Limited (India) and IWAI Water Foundation (India), whose details are given below.
## **IWA Publishing Limited**
The charity owns the whole of the issued ordinary share capital of IWA Publishing Limited, a company registered in England. The company number is 03690822. The registered office address is Export Building, First Floor, 1 Clove Crescent, London, E14 2BA.
The subsidiary is used for non-primary purpose trading activities, these bing the publishing ofbooks, periodicals and video recordings. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distrbuted under Gift Aid to the parent charity.
The trustees Kalanithy Vairavamoorthy, Enrique Cabrera Rochera, Marie-Pierre Whaley and Peter Vanrolleghem are also directors of the subsidiary.
A summary of the results of the subsidiary is shown below:
|**Profit on ordinary activities before taxation**
**Retained earnings**
Total retained earnings brought forward
Profit for the financial year
Distribution under Gift Aid to parent charity
Taxation on profit on ordinary activities
**Profit for the financial year**
Interest receivable and similar income
**Gross profit**
Administrative expenses
**Total retained earnings carried forward**
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
**Reserves**
**Profit on ordinary activities before interest and taxation**
Turnover
Cost of sales
Cost of sales related to purchases from parent undertaking|**2023**
**£**
**3,860,459**
**(743,894)**
**-**|2022
£
4,006,312
(780,542)
-|
|---|---|---|
||**3,116,565**
**(1,326,073)**|3,225,770
(1,223,660)|
||**1,790,492**
**9,198**|2,002,110
358|
||**1,799,690**
**-**|2,002,468
**-**|
||**1,799,690**|2,002,468|
||**-**
**1,799,690**
**(1,799,690)**|-
2,002,468
(2,002,468)|
||**-**|-|
||**1,992,530**
**(1,842,530)**|2,900,025
(2,750,025)|
||**150,000**|150,000|
Amounts owed to the parent undertaking were: £611,638 (2022: £1,166,273 ).
37
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **12 Subsidiary undertakings (continued)**
## **IWA Conference Limited**
The charity owns the whole of the issued ordinary share capital of IWA Conference Limited, a company registered in England. The company number is 05653997. The registered office address is Export Building, First Floor, 1 Clove Crescent, London, E14 2BA.
The subsidiary is used for non-primary purpose trading activities, these bing the Events and other Sponsorship . All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distrbuted under Gift Aid to the parent charity.
The trustees Kalanithy Vairavamoorthy is also directors of the subsidiary.
A summary of the results of the subsidiary is shown below:
|Distribution under Gift Aid to parent charity
**Total retained earnings carried forward**
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
**Reserves**
Turnover
Cost of sales
Cost of sales related to purchases from parent undertaking
**Gross profit**
Administrative expenses
**Profit for the financial year**
**Retained earnings**
Total retained earnings brought forward
Profit for the financial year
**Profit on ordinary activities before interest and taxation**
Interest receivable and similar income
**Profit on ordinary activities before taxation**
Taxation on profit on ordinary activities|**2023**
**£**
**159,038**
**-**
**-**|2022
£
-
-
-|
|---|---|---|
||**159,038**
**-**|-
-|
||**159,038**
**-**|-
-|
||**159,038**
**-**|-
**-**|
||**159,038**|-|
||**-**
**159,038**
**(159,038)**|-
-
-|
||**-**|-|
||**477,038**
**(477,038)**|-
-|
||**-**|-|
Amounts owed to the parent undertaking were: £159,038 (2022: £0 ).
38
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **12 Subsidiary undertakings (continued)**
## **Nanjing IWA Science & Technology Co. Ltd**
The charity owns the whole of the issued ordinary share capital of Nanjing IWA Science & Technology Co. Ltd, a company registered in China. The company's activities in the year were that of promoting the art and science of water management globally, by the encouragement of training, study and research in water management and the publications of the useful results of such research; to share advances technologies and best practices with water professionals and organisations.
The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are held in the company for future operations.
A summary of the results of the subsidiary is shown below:
|Turnover from sales to parent undertaking
Management charge payable to parent undertaking
Management charge due from parent undertaking
Taxation on profit on ordinary activities
Interest payable to parent undertaking
**Retained earnings**
Total retained earnings brought forward
Profit for the financial year
**Total retained earnings carried forward**
**Profit on ordinary activities before taxation**
Interest payable
Other operating income
**Profit for the financial year**
Transfer from IWA
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
**Reserves**
Interest receivable and similar income
Turnover
Cost of sales
Cost of sales related to purchases from parent undertaking
**Gross profit/(loss)**
Administrative expenses
**Profit/(loss) on ordinary activities before interest and taxation**|**2023**
**£**
**-**
**-**
**-**
**-**|2022
£
41,539
-
(39,469)
-|
|---|---|---|
||**-**
**-**
**-**
**-**
**-**|2,070
(458,293)
-
-
-|
||**-**
**-**
**-**|(456,223)
514
**-**|
||**-**
**-**|(455,709)
-|
||**-**|(455,709)|
||**(858)**
**858**
**-**|454,850
(455,709)|
||**-**|(858)|
||**-**
**-**|742
(1,600)|
||**-**|(858)|
Amounts owed to/from the parent undertaking were: £x (2022.: £nil)
39
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **12 Subsidiary undertakings (continued)**
## **IWAT Science and Technology Private Limited**
The charity owns the whole of the issued ordinary share capital of IWAT Science and Technology Private Limited, a company registered in India. The company's activities in the year were that of promoting the art and science of water management globally, by the encouragement of training, study and research in water management and the publications of the useful results of such research; to share advances technologies and best practices with water professionals and organisations.
The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are held in the company for future operations.
A summary of the results of the subsidiary is shown below:
|Turnover from sales to parent undertaking
Management charge payable to parent undertaking
Management charge due from parent undertaking
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
**Reserves**
**Profit for the financial year**
**Retained earnings**
Total retained earnings brought forward
Profit for the financial year
**Total retained earnings carried forward**
Interest receivable and similar income
Interest payable
Interest payable to parent undertaking
**Profit on ordinary activities before taxation**
Taxation on profit on ordinary activities
**Gross profit/(loss)**
Administrative expenses
Other operating income
**Profit/(loss) on ordinary activities before interest and taxation**
Turnover
Cost of sales
Cost of sales related to purchases from parent undertaking|**2023**
**£**
**1,094**
**134,872**
**-**
**-**|2022
£
-
-
-
-|
|---|---|---|
||**135,966**
**(130,910)**
**-**
**16,859**
**-**|-
-
-
-
-|
||**21,915**
**-**
**-**|-
-
**-**|
||**21,915**
**(5,056)**|-
-|
||**16,859**|-|
||**-**
**16,859**|-
-|
||**16,859**|-|
||**16,859**
**-**|-
-|
||**16,859**|-|
40
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **13 Parent charity**
The parent charity's gross income and the results for the year are disclosed as follows:
|**14**
**15**
**16**
Specialist Group funds
**Creditors: amounts falling due within one year**
Trade creditors
Other creditors
Accruals and deferred income (note 16)
Social security costs
Gross income
Result for the year
**Stock**
**Debtors**
Trade debtors
Other debtors
Prepayments and accrued income
Amounts due from subsidiary undertakings
Goods held for resale|**2023**
2022
**£**
£
**2,216**
52,953
**2,216**
52,953
**2023**
2022
**£**
£
**1,581,298**
1,840,188
**276,937**
301,855
**231,846**
146,063
**1,098**
1,098
**2,091,179**
2,289,204
restated
**2023**
2022
**£**
£
**209,260**
882,091
**794,836**
743,826
**71,095**
65,602
**179,454**
230,939
**1,778,272**
1,868,784
**3,032,917**
3,791,242
**The group**
**The group**
**The group**|**2023**
2022
**£**
£
**2,216**
52,953
**2,216**
52,953
**2023**
2022
**£**
£
**1,581,298**
1,840,188
**276,937**
301,855
**231,846**
146,063
**1,098**
1,098
**2,091,179**
2,289,204
restated
**2023**
2022
**£**
£
**209,260**
882,091
**794,836**
743,826
**71,095**
65,602
**179,454**
230,939
**1,778,272**
1,868,784
**3,032,917**
3,791,242
**The group**
**The group**
**The group**|**2023**
**£**
**2,118,852**
**4,507,842**|restated
2022
£
1,071,339
(1,217,868)|
|---|---|---|---|---|
||**3,032,917**|3,791,242|**1,524,678**|2,205,893|
## **17 Deferred income**
Deferred income comprises income collected in advance for future journal, membership subscriptions and events.
|Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year|**2023**
2022
restated
**£**
£
**1,868,784**
2,281,021
**(1,868,784)**
(2,212,651)
**1,778,272**
1,800,414
**1,778,272**
**1,868,784**
**The group**|**2023**
2022
restated
**£**
£
**1,868,784**
2,281,021
**(1,868,784)**
(2,212,651)
**1,778,272**
1,800,414
**1,778,272**
**1,868,784**
**The group**|**2023**
2022
restated
**£**
£
**603,778**
1,964,377
**(603,778)**
(1,896,007)
**562,468**
535,408
**562,468**
**603,778**
**The charity**|**2023**
2022
restated
**£**
£
**603,778**
1,964,377
**(603,778)**
(1,896,007)
**562,468**
535,408
**562,468**
**603,778**
**The charity**|
|---|---|---|---|---|
||**1,778,272**|**1,868,784**|**562,468**|**603,778**|
41
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **18 Creditors: amounts falling due after one year**
|**Creditors: amounts falling due after one year**|||||
|---|---|---|---|---|
|Provision for dilapidation|**2023**
2022
**£**
£
**120,000**
120,000
**120,000**
120,000
**The group**||**2023**
2022
**£**
£
**120,000**
120,000
**120,000**
120,000
**The charity**||
||**120,000**|120,000|**120,000**|120,000|
Provision for dilapidations represents the estimated cost of reinstatement works, repairs and redecoration, as well as specific works that will need to be made in line with the office lease. (Export Building, First Floor, 1 Clove Cresent, London E14 2BA.
## **19 Pension scheme**
## **Group and company**
The group operates a Defined Benefit Pension Scheme.
## **The amounts recognised in the Balance Sheet are as follows:**
|Present value of funded obligations
Surplus in scheme at end of the year and available to the Association
Fair value of scheme assets
Surplus not recognised|**2023**
**£**
**(1,929,000)**
**2,523,000**
**(594,000)**|2022
£
(1,933,000)
2,461,000
(528,000)|
|---|---|---|
||-|-|
The latest actuarial valuation at 31 December 2023 shows a pension surplus of £594,000 (2022:£528,000). The surplus valuation results in 2022 is not recognised on the balance sheet as an asset because it is not available to the Association by way of reduced future contributions. Actuarial gains and losses arising from new valuations and from updating valuations to the balance sheet date are recognised in the statement of financial activities as other recognised gains and losses.
## **The amounts recognised in the Statement of Financial Activities are as follows:**
|**The amounts recognised in the Statement of Financial Activities are as follows:**|||
|---|---|---|
||**2023**|2022|
||**£**|£|
|Interest on obligation|**(86,000)**|(54,000)|
|Expected return on scheme assets|**113,000**|59,000|
||**27,000**|5,000|
|**Movements in the present value of the defined benefit obligation were as follows:**|||
||**2023**|2022|
||**£**|£|
|Opening defined benefit obligation|**1,933,000**|2,950,000|
|Interest cost|**86,000**|54,000|
|Actuarial losses|**70,000**|(893,000)|
|Benefits paid|**(212,000)**|(293,000)|
|Administration cost|**52,000**|115,000|
|Closing defined benefit obligation|**1,929,000**|1,933,000|
42
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **19 Pension scheme (continued)**
## **Group and company**
## **Changes in the fair value of scheme assets were as follows:**
|**Changes in the fair value of scheme assets were as follows:**|||
|---|---|---|
|Opening fair value of scheme assets
Expected return on assets
Actuarial gains
Contribution by employer
Benefits paid|**2023**
**£**
**2,461,000**
**113,000**
**14,000**
**147,000**
**(212,000)**|2022
£
3,190,000
59,000
(640,000)
145,000
(293,000)|
||**2,523,000**|2,461,000|
The group expects to contribute £36,822 to its Defined Benefit Pension Scheme in 2024 (2023: £147,000).
## **Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):**
|Future pension increases
Retail price inflation
Discount rate at 31 December|**2023**
**£**
**4.45%**
**3.40%**
**3.55%**|2022
£
4.75%
3.30%
3.40%|
|---|---|---|
||**11.40%**|**11.45%**|
## **Longevity assumptions as at 31 December 2023**
|**Males (M) or Females (F)**|**2023**|**2022**|
|---|---|---|
|Base table|S3PA tables with 92% Male and 102% Female
scaling factor|S3PA tables with 92% Male and 102% Female
scaling factor|
|Future improvements|CMI 2022 core model with a long term rate of
improvement of 1.5% p.a. for males and 1.0%
p.a. for females, with a smoothing parameter of
Sk=7.0.|CMI 2021 model allowing for 25% of the data from
2020 and 2021 with a long term rate of
improvement of 1.5% p.a. for males and 1.0% p.a.
for females, with a smoothing parameter of
Sk=7.0.|
43
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **20a Analysis of group net assets between funds (current year)**
|Intangible fixed assets
Tangible fixed assets
Investments
Net current assets
Long term liabilities
**Net assets at 31 December 2023**|General
unrestricted
£
£
-
13,455
-
223,412
1,043,909
-
1,944,889
-
(120,000)
-
**2,868,798**
**236,867**
Designated funds|General
unrestricted
£
£
-
13,455
-
223,412
1,043,909
-
1,944,889
-
(120,000)
-
**2,868,798**
**236,867**
Designated funds|£
-
-
207,169
-
-
Revaluation
reserve|Restricted
funds
£
-
-
-
666,206
-|**Total funds**
**£**
**13,455**
**223,412**
**1,251,078**
**2,611,095**
**(120,000)**|
|---|---|---|---|---|---|
||**2,868,798**|**236,867**|**207,169**|**666,206**|**3,979,040**|
## **20b Analysis of group net assets between funds (prior year restated)**
|Intangible fixed assets
Tangible fixed assets
Investments
Net current assets
Long term liabilities
**Net assets at 31 December 2022**|General
unrestricted
£
£
-
44,190
312,595
1,025,523
-
1,612,331
(858)
(120,000)
-
**2,517,854**
**355,927**
Designated funds|General
unrestricted
£
£
-
44,190
312,595
1,025,523
-
1,612,331
(858)
(120,000)
-
**2,517,854**
**355,927**
Designated funds|£
-
-
139,177
-
-
Revaluation
reserve|Restricted
funds
£
-
-
1,293,823
-|**Total funds**
**£**
**44,190**
**312,595**
**1,164,700**
**2,905,296**
**(120,000)**|
|---|---|---|---|---|---|
||**2,517,854**|**355,927**|**139,177**|**1,293,823**|**4,306,781**|
44
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **21a Movements in funds (current year)**
|**Total restricted funds**
**Total Endowment funds**
Total designated funds
**Revaluation reserve**
**General funds**
Water-Wise Cities Project
**Unrestricted funds:**
Designated funds:
**Endowment funds:**
Emerging Water Leaders fund
World Bank Grant
**Total funds**
Aquarating - Mongolia
**Total unrestricted funds**
**Restricted funds:**
**Pension reserve**
Operation and Maintenance Network
Diffuse Pollution SG Fund
Citywide inclusive sanitation
Aquarating - Sierra Leone
LAC HRWS
Climate Smart Utilities Initiative
Nanjing Fund
Youth Action for SDG6 Fellowship fund
Tangible and intangible assets
Prime Water|At 1 January
2023
£
999,034
742
8,492
873
13,969
21,164
98,123
13,235
3,475
134,716
-|Income & gains
£
-
-
-
-
38,249
-
3,495
-
-
-
16,060|Expenditure &
losses
£
(377,945)
-
(8,640)
(773)
(47,002)
-
(101,618)
-
-
(118,435)
(17,821)|Transfers
£
-
148
(100)
-
-
(13,235)
-
-|**At 31**
**December**
**2023**
**£**
**621,089**
**742**
**-**
**-**
**5,216**
**21,164**
**-**
**-**
**3,475**
**16,281**
**(1,761)**|
|---|---|---|---|---|---|
||1,293,823|57,804|(672,234)|(13,187)|**666,206**|
||-|746456
746,456|-|-|**746,456**
**746,456**|
||356,785
(858)|-
-|(119,918)
-|-
858|**236,867**
**-**|
||355,927|-|(119,918)|858|**236,867**|
||139,177
2,517,854|67,992
5,375,990|-
(5,784,689)|-
13,187|**207,169**
**2,122,342**|
||3,012,958|6,190,438|(5,904,607)|14,045|**3,312,834**|
||-|-|-|-|**-**|
||4,306,781|6,248,242|(6,576,841)|858|**3,979,040**|
The narrative to explain the purpose of each fund is given at the foot of the note below.
45
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **21b Movements in funds (prior year restated)**
|**Movements in funds (prior year restated)**||||||
|---|---|---|---|---|---|
|**Total restricted funds**
Total designated funds
**Revaluation reserve**
**General funds**
**Total unrestricted funds**
**Pension reserve**
**Total funds**
Citywide inclusive sanitation
Climate Smart Utilities Initiative
Aquarating - Sierra Leone
Youth Action for SDG6 Fellowship fund
Regulators NBS
**Unrestricted funds:**
Designated funds:
Tangible and intangible assets
Nanjing Fund
LAC HRWS
**Restricted funds:**
Operation and Maintenance Network
Diffuse Pollution SG Fund
Prime Water
Aquarating - Mongolia
Climate Resilient WSPs
GIZ Carbon Neutrality in Water
Improving water security for the poor
Reach Project
Water-wise Cities Project|At 1 January
2022
£
-
-
(7,615)
-
-
-
-
11,133
21,164
-
14,775
-
5,506
-
-
44,963|Income & gains
£
-
1,165,189
28,490
36,684
43,495
-
-
35,236
-
118,653
-
-
-
134,716
-|Expenditure &
losses
£
-
(166,155)
(525)
(35,942)
(3,566)
(6,164)
(202)
(23,913)
-
(20,530)
(1,540)
-
(2,031)
-
-|Transfers
£
-
-
(20,350)
-
(31,437)
7,037
202
(8,487)
-
-
-
-
-
-
-|**At 31**
**December**
**2022**
**£**
**-**
**999,034**
**-**
**742**
**8,492**
**873**
**-**
**13,969**
**21,164**
**98,123**
**13,235**
**-**
**3,475**
**134,716**
**-**|
|||1,562,463|(260,568)|(53,035)|**1,293,823**|
||549,947
454,849|-
42,053|-
(497,760)|(193,162)
-|**356,785**
**(858)**|
||1,004,796|42,053|(497,760)|(193,162)|**355,927**|
||327,004|(187,827)|-|-|**139,177**|
||1,514,396|8,909,852|(8,152,591)|246,197|**2,517,854**|
||2,846,196|8,764,078|(8,650,351)|53,035|**3,012,958**|
||-|-|-|-|**-**|
||2,891,159|10,326,541|(8,910,919)|-|**4,306,781**|
## **Purposes of restricted funds**
## **Improving water security for the poor**
The REACH programme is led by Oxford University and brings together a consortium of global leaders in water science, policy and practice. REACH is a new global research programme to improve water security for the poor by delivering world-class science that transforms policy and practice.
## **Citywide inclusive sanitation**
The IWA is working with our partnrs, through this project IWA aims at identifying the needs, opportunities, and tools for action to support and inspire regulators in their contribution to achieving citywide inclusive sanitation in the context of the Sustainable Development Goals.
## **GIZ Carbon Neutrality in Water**
The IWA is working on a project with GIZ, funded by the German Federal Ministry of Environment, Nature Conservation, to improve the carbon balance across utilities. The project focuses on parts of the nexus as addressing greenhouse gas reduction and energy efficiency produces benefits for water efficiency and recovers resources. The fund currently having a deficit balance, pending payment receivable from the donor.
46
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **Movements in funds (continued)**
## **Purposes of restricted funds**
## **Aquarating**
The funds received from Millennium Corporation, USA toward the execution of a technical cooperation programme for the implementation of a rating system Aqua Rating for the water and sanitation providers. The Aquarating Mongolia and Aquarating Sierra Leone fund currently having a deficit balance, pending payment receivable from the donor.
## **Water-Wise Cities Project**
Funded by SIAAP towards help city leaders ensure that everyone in their cities has access to safe water and sanitation. One of the aims is to ensure that water is integrated in planning and design in cities to provide increased resilience to climate change, livability, efficiencies, and a sense of place for urban communities. The ultimate goal of these Principles is to encourage collaborative action,underpinned by a shared vision, so that local governments, urban professionals, and individuals actively engage in addressing and finding solutions for managing all waters of the city.
## **Operation and Maintenance Network**
Funds received from Ministry of Health, Labour and Welfare ("MHLW") Japan to support, raise awareness and develop capacities to effectively address operations and maintenance of water supply and sanitation systems and protect public health.
## **GEF Floods & Droughts**
Funds received from UN Enviro Programme to develop adaptive, sociotechnical risk management measures and strategies for coastal communities against extreme hydro-meteorological events minimising social, economic and environmental impacts and increasing the resilience of Coastal Regions in Europe.
## **Prime Water**
Funded through EU Horizon 2020 – the Framework Programme for Research and Innovation for delivering advanced predictive tools from medium to seasonal range for water dependent industries and exploiting the cross-cutting potential of EO and hydroecological modelling (in short PrimeWater).
## **Diffuse Pollution Specialist Group**
Conference surplus funds received from the Diffuse Pollution Specialist Group towards the cost of future activities.
## **WSP - Asia-Pacific Network**
Funds received from UNOPS towards hosting the WSP Network Asia, the thematic network for capacity development for water safety plans and to strengthen the Asia Pacific WSP network to support the development of climate resilient, adaptable systems for water supply.
## **Climate Resilient WSP's**
funding provided by OPEC Fund for International Development (OFID) for implementing climate resilient water safety planning to improve water supply and public health.
47
**International Water Association**
**Notes to the financial statements**
## **For the year ended 31 December 2023**
## **Movements in funds (continued)**
## **Purposes of restricted funds**
## **Youth Action for SDG6 Fellowship fund**
funding provided by Grundfos towards the participation of 14 bright and promising international young water professionals (YWPs) at the UN 2023 Water Conference, on 22-24 March 2023 in New York, USA.
## **Regulators - Nature Based Solutions (NBS)**
Funds received from The Nature Conservancy (TNC) towards Supporting regulators and regulation to enable consideration and investment in nature based solution to improve water security and safety.
## **Purposes of designated funds**
## **Tangible and Intangible asset fund**
This fund balance represents the carrying value of the Association's tangible and intangible fixed assets net of any associated liabilities. This fund has been established in recognition of the fact that the assets are used in the day to day work of the charity and do not represent reserves available to finance its operations.
## **Investment revaluation reserve**
This fund balance represents the balance included within fixed asset investments which has arisen as a consequence of the cumulative impact of market value changes to the Association's investment assets. It has been separated in order to provide an indication of the difference between the value of listed investments at the balance sheet date relative to its historic cost. A calculation is provided at note 19 to the financial statements.
## **Pension reserve**
This fund represents the Association'slong-term liability in respect of its defined benefit pension scheme. It is separated in order acknowledgement that the liability is long-term and may be disregarded in considering the availability of free reserves in meeting the day-to-day obligations of the Association and the group.
## **Nanging Fund**
This fund represents the net asset under the control of the Association's subsidiary, Nanjing IWA Science & TechnologyCo.Ltd inChina. Those net assets are essential to the operations in China and therefore separately ring-fenced in these accounts.
48
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **22 Operating lease commitments payable as a lessee**
The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|
periods:|||||
|---|---|---|---|---|
|Less than one year
One to five years
Over five years|**2023**
2022
**£**
£
**75,495**
75,495
**1,132,425**
1,132,425
**452,970**
528,465
**1,660,890**
1,736,385
Property||**2023**
2022
**£**
£
**2,900**
2,900
**7,250**
10,150
**-**
-
**10,150**
13,050
Equipment||
||**1,660,890**|1,736,385|**10,150**|13,050|
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|
periods:|||||
|---|---|---|---|---|
|Less than one year
One to five years
Over five years|**2023**
2022
**£**
£
**226,485**
226,485
**1,132,425**
1,132,425
**75,495**
301,980
**1,434,405**
1,660,890
Property||**2023**
2022
**£**
£
**2,900**
2,900
**7,250**
10,150
**-**
-
**10,150**
13,050
Equipment||
||**1,434,405**|1,660,890|**10,150**|13,050|
## **23 Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
49
**International Water Association**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **24 Impact of change in accounting policy**
As a result of the implementation of the new CRM system and the subsequent improvement in revenue recognition processes, the Association revised its accounting policy. The revised policy now stipulates the recognition of membership income based on the actual days of membership (instud of months), reflecting a more accurate reflection of the Association's financial performance.In accordance with the revised accounting policy, prior-year adjustment of £68,370 to the membership income have been incorporated into the financial statements.
|**Reserves position**
Total funds at 31 December 2021 as previously stated
Adjustments to deferred income
Total funds at 31 December 2021 as restated
Total funds at 31 December 2022 as previously stated
Adjustments to deferred income
Total Funds as at 31 December 2022 as restated
**Impact on income and expenditure 2022**
Net income as previously reported
Adjustment to deferred income pre 2022
Adjustments to deferred income 2022
Net income as restated|Unrestricted
£
2,887,227
(41,031)|Restricted
£
44,963
-|**Total**
**£**
**2,932,190**
**(41,031)**|
|---|---|---|---|
||2,846,196|44,963|**2,891,159**|
||3,081,328
(68,370)|1,293,823
-|**4,375,151**
**(68,370)**|
||3,012,958|1,293,823|**4,306,781**|
||Unrestricted
£
194,101
(41,031)
(27,339)|Restricted
£
1,248,860
-
-|**Total**
**£**
**1,442,961**
**-**
**(41,031)**
**(27,339)**|
||125,731|1,248,860|**1,374,591**|
50