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2023-03-31-accounts

A Company Limited by Guarantee and not having a Share Capital

Trustees’ Report and Consolidated Financial Statements

For the year ended 31[st] March 2023

REGISTERED CHARITY NUMBER: 1077889

REGISTERED COMPANY NUMBER: 03661446 (England & Wales)

www.pumpaid.org @PumpAid Pump Aid

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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CONTENTS PAGE
Harnessing Enterprise - Ending Dependency 2
Legal and Administrative Information 3
Acting Chair’s Introduction 4
Trustees’ Report
Vision, mission and values 5
Charitable purpose 5
Achievements in 2022/23 6
Objectives for 2023/24 7
Basis of accounting 8
Criteria for measuring success 8
Risk management 8
Structure, governance and management 9
Appointment and training of trustees 9
Approach to fundraising 9
Going concern 10
Financial review of 2022/23 10
Reserves policy 11
Auditors and disclosure of information to auditors 12
Statement of Trustees’ Responsibilities 13
Independent Auditor’s Report 14
Financial Statements
Statement of Financial Activities 18
Balance Sheets 20
Cash Flow Statement 22
Notes to the Financial Statements 23
Glossary of terms and abbreviations 30

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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HARNESSING ENTERPRISE - ENDING DEPENDENCY

“The effectiveness of Pump Aid’s approach is in its commitment to a sustainable market model, as well as in its advocacy to challenge the traditional model of aid.”

Sarah Donachie - Deputy Fund Director, UK Aid Direct

The Water Point Management Committee of Kayira village in Dowa

“It no longer takes a week, two weeks or a month for our borehole to be repaired, now it only takes a day or two!” Catherine Chuma – Vice Chair of Water Point Committee

“I have 25 active contracts and, from this money, I have bought fertilizer and a plough to use at my farm. I am helping my community access clean and safe water and, at the same time, I am providing a reliable source of income for myself and my family.

Jailos Phiri - Area Mechanic in Mchinji

“A mindset that women cannot do a type of work which was previously seen as ‘men’s work’ is now realised as wrong and I therefore hope more women will follow my lead.”

Selina Phiri - Area Mechanic in Kasungu

“We are very grateful for the decision we made, even though it was hard to convince our community members. But, when it comes to the end of our service contract, I know we will enter into an agreement again, because we have seen the benefit.” Elina Yelemani – WPC Member, Lipenga village in Dowa

“My extra and regular income has not only helped me buy my children school uniforms and text books, it has also eased the pressure on my husband, as I am now able to help him support our wider family too.”

Jinesi Masanjala Dyson - Area Mechanic in Mchinji

“Pump Aid’s approach is commercially sustainable with good engagement at different levels of local governance and a degree of local ownership far more than we often see from INGOs.”

Ruth Davison - Judge, UK Charity Awards

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Prof Stefan Allesch-Taylor CBE (Former Chair) - Appointed February 2011, resigned November 2022 Sandra Welch – Appointed July 2023

Megan Bingham-Walker - Appointed May 2003 Ashley Lopez – Appointed January 2016, resigned November 2022 Spencer Mahony – Appointed July 2016 Ben Nealon OBE - Appointed November 1998 Gerard Tyler – Appointed July 2016 Pramodrai Unia – Appointed May 2023 Dave Waller – Appointed July 2016, Acting Chair from November 2022 to July 2023

Company Secretary Matthew Gill

Charity Number

1077889

Company Number

03661446

Registered office and principal address

3[rd] Floor, 86-90 Paul Street, London, EC2A 4NE

Bankers

Barclays Bank Standard Bank 1-7 King Street Capital City London, EC2V 8AU Lilongwe, Malawi

UK Auditors

Harmer Slater Salatin House, 19 Cedar Road, Sutton, SM2 5DA, United Kingdom

Malawi Auditors

Audit Consult Vanguard Life Insurance House, Mandala Road, Lilongwe 3, Malawi

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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ACTING CHAIR’S INTRODUCTION

In last year’s report, Stefan Allesch-Taylor (our outgoing Chair) reflected on his twelve years on the Board and how much Pump Aid had changed. Every trustee and every staff member has been part of this change, but Stefan’s contribution has been indispensable and, without his leadership, Pump Aid would not be in the strong position it is now. Because of our willingness to challenge traditional models of aid, Pump Aid is now at the forefront of moves in Malawi to professionalise the repair and maintenance of community water points and is starting to influence organisations many times its size. Increasingly we are being seen as not just contesting the status quo, but as offering sustainable solutions to problems that have beset the water sector in Malawi for decades and the opportunity for us to make significant and lasting change is now tantalisingly close.

I have been overseeing the process to recruit a new Chair and I am delighted to report that Sandra Welch will be appointed Chair at our forthcoming AGM, at which point I will stand down as Acting Chair and return to my trustee role. Sandra was born and brought up in Africa. She is currently chief executive of another major charity and, without doubt, has all the skills and experiences we need to take our strategy forward. I am sincerely grateful for the way my fellow trustees have supported me in my temporary role and I am extremely pleased to be able to report that Pump Aid has continued to grow and innovate under my leadership over the year just past.

Pump Aid’s network of owner-managed pump mechanic small businesses has now grown to more than 100 and, since this programme started, they have cumulatively repaired almost 3,000 poorly functioning community water points. We have also continued to manufacture and sell our easy to use, easy to maintain domestic and irrigation pumps and, by March 2023, our cumulative sales of water pumps had topped 2,400. Collectively these two programmes will have brought clean, safe and reliable water within easy reach of more than 800,000 people.

Pump Aid has further increased its impact this year by using Beyond Water (its Malawi based social enterprise) to forge links with other organisations working in Malawi; including those seeking to invest in social impact businesses, those seeking to incentivise improved pump functionality and those seeking to use a reduction in wood burning to trade in carbon credits. Each of these potential partners opens up an income stream we have not previously enjoyed and, in combination with the grants and donations provided by the trusts, corporates and individuals who already fund us, will in time turn Beyond Water into a fully funded and self-sustaining Malawi based organisation.

Key to all of this has been our commitment to sustainability and the development of an approach to water improvement that enables all parties to benefit and, in many cases, to generate income. While many businesses set up by NGOs and other well-meaning funders struggle to survive once their aid funding ceases, our small businesses have flourished and, even in the wake of a global pandemic, have continued to do so. Each new business we create and support and each community water point we sign up for our professionalised maintenance service brings our goal of eradicating water poverty in rural Malawi by 2030 ever closer and in the pages of the report that follows we demonstrate just how much closer that vision has come.

On behalf of the Board, I would like to thank everyone who has supported Pump Aid over the past year and I would also like to express my personal thanks to all of Pump Aid’s staff. It is their performance that has driven Pump Aid’s success and their commitment that will secure its future.

Dave Waller Acting Chair 27[th] July 2023

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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TRUSTEES’ REPORT

The Board of Trustees are pleased to present their Trustees’ Report and Financial Statements for the year ending 31[st] March 2023.

The Trustees’ Report contains a Directors’ Report as required by company law. The Financial Statements comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their Financial Statements in accordance with FRS102 (effective 1[st] January 2019).

VISION, MISSION AND VALUES

Vision

Pump Aid is committed to the delivery of the UN’s Sustainable Development Goals and the total eradication of water poverty by 2030. But our ultimate goal is to transform the lives and life chances of poor and disadvantaged communities, so that they reach a point of resilience and selfreliance where they no longer need the support of us or anyone else.

Mission

Pump Aid’s mission is to achieve lasting positive change in poor and disadvantaged communities by improving the quality, availability and use of water and sanitation, by harnessing the power of the community, local businesses and partners in other sectors, and providing access to affordable, innovative and sustainable water solutions.

Values

At the heart of everything we do is the central belief that fulfilling the basic human right to safe water and sanitation is the vital first step to better life expectancy, improved educational attainment and increased social and economic independence.

CHARITABLE PURPOSE

The Charity Commission’s guidance on public benefit, as required by section 17 of the Charities Act, 2011, sets out two key principles: the organisation must have an identifiable benefit and the benefit must be to the public or to a section of the public.

Trustees have reviewed the vision and mission of the Charity in the light of this guidance and have been mindful of it when setting the objectives for the current year. They have also noted the emphasis on water and sanitation in the UN Sustainable Development Goals of which SDG6 requires the achievement of universal and equitable access to safe and affordable drinking water, access to adequate and equitable sanitation and an ending of open defecation. SDG6 also requires action to improve water quality by reducing pollution, increased water-use efficiency, the elimination of water poverty, the protection of water-related ecosystems and support to strengthen the participation of local communities in improving water and sanitation management.

Pump Aid is engaged in activities that support all of these objectives and Trustees believe the activities of Pump Aid, as detailed in this report, demonstrate that the Charity fully meets both of the Charity Commission’s public benefit requirements.

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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ACHIEVEMENTS IN 2022/23

Pump Aid’s charitable activities are delivered wholly in Malawi, where widespread access to water is seriously hampered by the poor functionality of rural water points. In the most recent study, 55% of Malawi’s community water points were classified as non-functional (UpGro/DFID) depriving almost 9m Malawians of access to improved water. And, while 85% of Malawi’s rural population is reliant on subsistence farming, only 11% of small-scale farmers use any form of irrigation, which both severely limits farm yields and increases the vulnerability of farm livelihoods.

Since 2014, Pump Aid has been creating and supporting a network of pump mechanic businesses, by encouraging them to sell small-scale domestic and irrigation pumps and repair non-functioning community water points. Our network of small businesses has now grown to 108 and, by March 2023, our area mechanics had repaired a total of 2,879 poorly functioning community water points and our sales team had sold over 2,400 individual pumps, together bringing clean, safe and reliable water within reach of more than 800,000 people.

At the same time as we have been developing innovative approaches to improving access to water in Malawi, the water sector itself has started to recognise the impact of poor pump functionality - not just on water point users - but on investors and funders, who increasingly see low levels of functionality as a poor return on their investments. A report into pump functionality, published by UNICEF in 2020, concluded that “Improved levels of pump functionality can only be sustained if they are supported by affordable preventative maintenance delivered by highly trained, professionally organised and properly motivated contractors.” (UNICEF, Reach) and this is precisely what our small-business approach was intended to achieve.

In April 2021, we relaunched our small business programme as a professionalised preventative maintenance service, using our social enterprise (Beyond Water), and created incentives for our pump mechanics to seek and secure maintenance contracts from Water Point Committees where, for a fixed fee, they would regularly visit and correct minor issues before they turned into major repairs. We supported this programme by offering Beyond Water service level agreements to District Water Offices, giving them the power to deliver regulation and control and to hold us accountable if we failed to deliver the improvements in functionality we promised. Together these two approaches have begun to deliver the ‘professionalised’ service that the UNICEF study had said was essential and this has also coincided with a shift in Malawi government policy towards the approaches we have been advocating.

We are clearly ahead of the game in Malawi and, over the past 12 months, our focus has shifted firmly towards professionalised repair and maintenance and we have transferred resources from our manufacturing and sales programme in order to secure our early adopter status and capitalise on repair and maintenance’s new found popularity. We now have more than 500 community water points under service level agreements and, in the near term, we think repair and maintenance will probably make up around 80% of our activities in the field. But, more important than the impact on us, we are currently achieving levels of pump functionality in excess of 90% in the communities whose water points are subject to service level agreements and the impact of this on the health and long term resilience of the 125,000 people who depend on those water points is immeasurable.

In addition to the programmes delivered by our social enterprise, our charitable arm has continued to support vulnerable young children who depend on the services provided by Malawi’s network of rural Community Based Childcare Centres (CBCCs). The total number of CBCCs to whom we have given access to improved water and sanitation now stands at 91 and, in comparison with CBCCs we are not supporting, monitoring data indicates a 42% increase in attendance, a 60% drop

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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in diarrhoea rates and an improvement in handwashing at crucial times from 27% to 63%, all of which will massively improve the lives and life chances of the 13,000 children that attend them.

We have also taken every opportunity to use our network of small businesses and our highly trained field teams to support Malawi’s rural population more generally and in, 2022/23, this included working with the communities hardest hit by Tropical Storm Freddy; restoring access to safe water to those CBCC’s whose water source had been damaged by two separate bouts of major flooding; distributing chlorine and hygiene materials in communities experiencing the greatest rise in Cholera; and providing starter packs of seeds and fertilisers to encourage the creation of kitchen gardens in communities whose access to fresh fruit and vegetables has been hindered by three years of poor harvests.

With the impact of Covid finally receding, 2022/23 contained fewer surprises than in the previous two years, but it did give us the opportunity to look afresh at how we were delivering resilience and sustainability and how we might better meet the current and emerging needs of the remote and rural communities with whom we work and our objectives for 2023/24 have been informed by everything we have learned.

OBJECTIVES FOR 2023/24

Since the arrival of the current management team in 2014, Pump Aid has been slowly repositioning itself away from that of a traditional INGO towards a more customer focussed, social impact business and, in April 2022, this objective took a significant step forward when Beyond Water (Pump Aid’s social enterprise) began trading in its own right.

From 1[st] April 2022, Pump Aid Malawi has been subcontracting much of its delivery work to Beyond Water Malawi, which is a wholly owned subsidiary of Beyond Water UK, itself a wholly owned subsidiary of Pump Aid UK.

Pump Aid Malawi itself has been delivering:

By the end of 2023/24, Beyond Water plans to have added another 500 community water points to its professionalised repair and maintenance service, leveraging the increased concern around the sustainability of the sector’s historic approach and developing additional income streams, including micro insurance (for spare parts and repairs), carbon credits (to subsidise major repairs and refurbishments), and the use of District Development Funds (Malawi government grants to local authorities to increase access to water).

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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In addition we are working with national and local government in Malawi and other NGOs working in Malawi to improve the evidence base for professionalised maintenance; including hosting a national round table in partnership with the Ministry of Water, working with Madza Alipo (a Malawi based database developer) on the development of a performance monitoring and service recording App that can be updated by our area mechanics on the ground and used by our central teams to create an online database of the community water points we have under contract. This will help improve our monitoring, contract management and impact measurement and enable us to access other income streams based on pump performance and results based service payments.

Over the next three years (2023-2026) Beyond Water aims to become the leading professionalised repair and maintenance organisation in Malawi, ensuring at least 1,250,000 people have access to functional water points providing improved access to safe water on a sustainable basis, to move into the management of piped water systems, to include health centres and schools in our repair and maintenance model, and to attract inward investment to support our growth to scale from a more diverse range of investors. Over the same period, Pump Aid will continue to deliver its philanthropic community programmes and seek ways in which it could seed Beyond Water type activities in other countries of Sub-Saharan Africa.

BASIS OF ACCOUNTING

As stated in note 18, in previous years the Charity delivered all its activities in Malawi through a Malawi registered branch, Pump Aid Malawi. Since April 2022, some of its activities in Malawi have been delivered by Beyond Water Malawi, a Malawi registered company of which the Charity is the ultimate sole beneficial owner. The Consolidated Financial Statements of the Charity include all of the funds it raised during the year and all of the activities it delivered, regardless of which company raised the funds or delivered the activity.

CRITERIA FOR MEASURING SUCCESS

Pump Aid has developed a detailed framework for measuring its impact using an activity based framework. Qualitative and quantitative indicators are collected from beneficiaries, installations are independently tested and verified and case studies and questionnaires are used to determine the effectiveness and appropriateness of all of Pump Aid’s interventions. Pump Aid uses this data for the compilation of its reports to funders and its restricted programmes are often subject to additional external and independent evaluations as and when required by funders.

RISK MANAGEMENT

All significant activities are subject to a risk review as part of the initial activity assessment and implementation. The Senior Management Team ranks all risks in terms of their potential impact and likelihood and, where possible, puts in place appropriate mitigation.

Major risks for this purpose, are those that may have a significant impact on:

Trustees annually assess the major risks, both positive and negative, to which the Charity is

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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exposed, particularly those related to its finances, operations and reputation, and ensure that adequate systems are in place to:

A risk review forms part of the Board’s annual planning process.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Pump Aid is a company limited by guarantee incorporated on 4[th] November 1998. The Company was registered as a Charity with the Charity Commission on 21[st] October 1999. The Company’s governing document, its Memorandum and Articles of Association, was revised and approved at the Annual General Meeting held on 13[th] October 2014.

Pump Aid’s Trustees are responsible for the general control and management of the Charity and serve for an initial period of three years, after which they may offer themselves for re-election. The Trustee Board is responsible for setting the organisation’s strategy, assessing risk and reviewing and adopting the Charity’s annual budget and quarterly financial reports. The Trustee Board meets four times per year, including an annual strategy day with senior staff.

Except as stated in note 7 to the Financial Statements, Trustees have no beneficial interest in the activities of the Charity. All Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

Day to day management and oversight of the Charity is vested in a Senior Management Team comprising its UK based Chief Executive and Head of Business Development and Engagement, and its Malawi based Country Director. Staff salaries are benchmarked against similar roles in similar sized organisations and the salaries of the Senior Management Team are set by the Board with reference to market data for each individual role.

APPOINTMENT AND TRAINING OF TRUSTEES

The Board conducts a biennial skills audit and, if necessary, new trustees are sought to ensure the Board maintains a mix of skills and expertise appropriate to the needs of the organisation. New Trustees are provided with information on the purposes of Pump Aid, its financial position and the key issues it faces. They are also given copies of policies and procedures on issues such as delegated authority, recruitment, equal opportunities, and guidance on conflicts of interest. Additional training is provided in line with the identified needs of the Board.

The Trustees, who are also directors for the purposes of company law, who served during the year and up to the date of this report, are set out on page 3.

APPROACH TO FUNDRAISING

Pump Aid raises a very small amount of its income from the UK public (2023: 4.6%, 2022: 4.9%), with the majority of its income coming from governments, corporates and charitable trusts and foundations. All fundraising activities are delivered by directly employed staff, whose working

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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practices fully comply with the Fundraising Regulator’s Code of Fundraising Practice and our use and storage of fundraising data is in full accordance with the GDPR. Pump Aid does not share its supporter details with other parties and we do not purchase cold contact lists. Supporters on Pump Aid’s fundraising database are contacted in the manner they prefer and we encourage them to contact us with any feedback. The Charity received no complaints with regard to its fundraising activities in the year under review (2022: none).

GOING CONCERN

Trustees have reviewed income projections for 2023/24 and 2024/25, have assessed the economic climate and its potential impact on the Charity and have considered a report on the financial sustainability of the organisation prepared by the Senior Management Team. Because Beyond Water Malawi is wholly dependent on the income raised by Pump Aid UK and Pump Aid Malawi is ultimately liable for all expenditure incurred by Beyond Water Malawi, for the purposes of their going concern assessment, Pump Aid’s trustees have considered these separate entities as if they were one.

Though the global impact of Covid19 has started to recede, it is still affecting the lives of many people in the developing world. Throughout the pandemic, Pump Aid’s staff showed themselves to be incredibly flexible and continued to deliver all of the Charity’s field activities (albeit with enhanced hygiene measures). Trustees have noted that Pump Aid’s response to Covid19, and the manner in which it supported Malawi’s fight against the pandemic, has significantly increased its profile in Malawi and, overall, Covid19 has had an unexpectedly positive influence.

Though the past three years have undoubtedly been very challenging, trustees believe Pump Aid’s long-term sustainability is not in doubt and that the repositioning of the Charity as a social impact business has increased its revenue generation potential and means it will have no difficulty in generating the resources it needs to meet the requirements of a going concern.

FINANCIAL REVIEW OF 2022/23

Income

As Pump Aid (through Beyond Water) has steadily repositioned itself away from a traditional INGO towards a more customer focussed, social impact business, it has also been refining its approach to funders. This has inevitably led it away from some organisations who had been generous funders in the past, most notably the UK government, and towards organisations that see sustainability as more important than simple numeric beneficiaries. Trustees were aware that the move from one group of funders to another might cause a slight hiatus in the receipt of funds and that has been the case in 2022/23, with Pump Aid’s total income being slightly down on the £1,012,198 it raised in 2021/22.

Key fundraising successes in the year include securing three year funding of £420,000 from the Medicor Foundation towards our professionalised repair and maintenance service and follow on funding for the same purpose from Urenco UK and Rotork plc. The recruitment of an experienced Head of Business Development and Engagement has also helped us to better engage with previous donors, which has led to the receipt of £100,000 from a corporate who, in the previous two years, had given £13,000 and £20,000; and £50,000 from a foundation who last funded us in 2016. We also received our largest ever single donation (£120,000) from an individual who first gave us £50 in the Times Christmas Appeal of 2008 and has been a regular donor ever since. The ability of our

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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fundraising team to use our new approaches to both attract new donors as well as re-engage with previous ones gives us great confidence for the future.

Our changed approach to water improvement is further evidenced in the breakdown of income in the table below, which shows how we have steadily moved away from the simple installation of water pumps towards the creation of sustainable water networks and how funding for this has risen from 10% of our total income, when our journey started, to more than 85% now.

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Community water, hygiene and sanitation 81.3% 64.3% 41.6% 38.2% 31.9% 18.0% 12.1% 9.3%
WASH for vulnerable populations 1.8% 16.3% 14.3% 18.3% 13.8% 9.8% 18.2% 5.1%
Urban WASH and entrepreneurship 6.9% 15.1% 4.6% 0.5% - - - -
Enterprise for WASH and agriculture 10.0% 4.3% 39.5% 43.0% 54.3% 49.9% 26.4% 18.5%
Enterprise for repair and maintenance - - - - - 22.3% 43.3% 67.1%
TOTAL INCOME 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Expenditure

Expenditure on charitable activities in the year was £805,158 and, reflecting our move towards a more enterprise led approach, the bulk of this was spent on our repair and maintenance service (£351,300) and on manufacturing and sales (£286,853). As we become increasingly funded by funders who are more interested in sustainable impact than with simple beneficiary numbers, we have also needed to invest in data capture, pump certification and performance monitoring and almost £50,000 was spent in 2022/23 on this vital investment in our future. We also commenced work on a database of all the community water points we have under contract and an online dashboard that funders will be able to access and see, in real time, the impact their funding is having. Having already established ourselves as the market leader in professionalised repair and maintenance in Malawi, improved data collection and better data communication will ensure we stay ahead of the game.

Despite the recent investment the Charity has made in increasing its fundraising capacity, Pump Aid continues to operate with an extremely small UK team (just 4.9 FTEs) and we are pleased to note that direct programme expenditure in 2022/23 constituted 85 pence of every pound we spent. An astonishing achievement for a charity of our size, particularly when compared to the 70 pence in the pound and less achieved by some of the larger charities in the UK water sector.

RESERVES POLICY

Trustees believe unrestricted reserves are necessary for three reasons:

Trustees acknowledge that Covid19 has had an impact on the Charity’s income and expenditure, but they believe that the way the Charity has adapted over the past three years has more than demonstrated its ability to cope and thrive. Trustees have previously set a minimum unrestricted

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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reserve target of £150,000 and an optimum target of £250,000 or the equivalent of three months unrestricted operating expenses but, at last year’s annual review, they decided to increase the Charity’s minimum unrestricted reserves target to £250,000.

Current Reserves

The Charity’s free and unrestricted reserves figure of £615,921 at March 2023 is more than double Trustees’ minimum target and free reserves now stand at their highest level since 2010. While many actions have contributed to this, the two most significant were the restructuring Pump Aid undertook at the start of 2020, which significantly reduced its cost base; and the decision the Board took three years ago to focus on enterprise, which has enabled Pump Aid to ride out the Covid storm with more ease than many much larger charities.

The effect of Covid19 on the aid sector in general and on countries like Malawi in particular is likely to be long lasting and Trustees have given management permission to spend some of the surplus reserves on increasing Malawi’s resilience to this and future global events.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the Directors has confirmed there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Audit Consult, a Malawi based independent auditor, were appointed in 2020 and reappointed in 2022 to provide independent oversight of Pump Aid’s Malawi operations. They have conducted a local audit of Pump Aid Malawi and have provided information and assistance to the Charity’s auditor in the UK.

AUDITORS

HW Fisher had been the Charity’s UK auditor since 2007 and, in accordance with good practice, the Charity put its audit out for tender at the conclusion of its 2022 AGM. Following a competitive tendering process Harmer Slater were appointed UK auditors for the current financial year.

For and on behalf of the board of Trustees

Dave Waller Acting Chair 27[th] July 2023

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Charity’s trustees (who are also the directors of Pump Aid for the purposes of company law) are responsible for preparing a Trustees’ Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires Trustees to prepare financial statements for each financial period, which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure of the Charity for that period.

In preparing these financial statements, Trustees are required to:

Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

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INDEPENDENT AUDITOR’S REPORT To the Members of Pump Aid

OPINION

We have audited the financial statements of Pump Aid (‘the charitable company’) for the year ended 31[st] March 2023, which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheet, the Consolidated Cash Flow Statement and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

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 financial statements section of our report. We are independent of the 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 the charitable company'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 directors 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 annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other

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information. Our opinion on the 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 financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the Statement of Trustees’ Responsibilities (set out on page 9), the trustees (who are also the directors of the 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 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 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 as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Page | 15

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

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 is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We considered the nature of the charitable company’s sector and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also identified the laws and regulations applicable to the charitable company through discussions with the Trustees and other management, and from our cumulative audit, knowledge and experience of the charitable company.

We obtained an understanding of the legal and regulatory framework that the Charitable company operates in, and identified the key laws and regulations that:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page | 16

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Records) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Harmer Slater Limited

Chartered Accountants and Statutory Auditors Salatin House, 19 Cedar Road, Sutton, Surrey, SM2 5DA

Date: 29[th] September 2023

Harmer Slater Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page | 17

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES incorporating an Income and Expenditure Account for the year ended 31[st] March 2023

Notes
INCOME
Donations and voluntary income
2
Income from charitable activities
3
Net profit on disposal of assets
Bank interest
TOTAL INCOME
EXPENDITURE
Costs of raising funds
Costs of generating voluntary income
and income from charitable activities
Charitable activities
Delivering water, sanitation and
hygiene improvement in Malawi
TOTAL EXPENDITURE
4
Net income and net movements in
funds
14
Reconciliation of funds
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
15		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
373,845
446,020
819,865
138,042
-
138,042
101
-
101
1,597
-
1,597
513,585
446,020
959,605
54,570
49,876
104,446
420,670
384,488
805,158
475,240
434,364
909,604
38,345
11,656
50,001
577,575
58,894
636,469
615,920
70,550
686,470		 Total
2022
£
619,759
389,911
2,509
19
1,012,198
72,566
918,528
991,094
21,104
615,365
636,469

All income and expenditure is derived from continuing activities.

Page | 18

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES incorporating an Income and Expenditure Account for the year ended 31[st] March 2022

Notes
INCOME
Donations and voluntary income
2
Income from charitable activities
3
Net profit on disposal of assets
Bank interest
TOTAL INCOME
EXPENDITURE
Costs of raising funds
Costs of generating voluntary income
and income from charitable activities
Charitable activities
Delivering water, sanitation and
hygiene improvement in Malawi
TOTAL EXPENDITURE
4
Net income and net movements in
funds
14
Reconciliation of funds
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
15		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
180,505
439,254
619,759
389,911
-
389,911
2,509
-
2,509
19
-
19
572,944
439,254
1,012,198
50,796
21,770
72,566
519,144
399,384
918,528
569,940
421,154
991,094
3,004
18,100
21,104
574,571
40,794
615,365
577,575
58,894
636,469		 Total
2021
£
1,121,630
144,233
224
8
1,266,095
69,960
893,224
963,184
302,911
312,454
615,365

All income and expenditure is derived from continuing activities.

Page | 19

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

CONSOLIDATED BALANCE SHEET AT 31[st] March 2023

REGISTERED COMPANY NUMBER: 03661446 (England & Wales)

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Stocks
10
Debtors
11
Cash at bank and in hand
Less: CURRENT LIABILITIES
Creditors: Amounts falling due within one year
12
NET CURRENT ASSETS
NET ASSETS
Total assets less total liabilities
Represented by:
Restricted funds
Unrestricted funds
TOTAL FUNDS CARRIED FORWARD
15		 2023
£
10,695
10,695
53,215
46,805
642,135
742,155
(66,380)
675,775
686,470
70,550
615,920
686,470		 2022
£
22,382
22,382
91,289
122,828
437,612
651,729
(37,642)
614,087
636,469
58,894
577,575
636,469

The Financial Statements were approved for issue by the Trustees on 27[th] July 2023 and signed on their behalf by:

Dave Waller

Acting Chair

Page | 20

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

CHARITABLE COMPANY BALANCE SHEET AT 31[st] March 2023

REGISTERED COMPANY NUMBER: 03661446 (England & Wales)

Notes
FIXED ASSETS
Tangible assets
CURRENT ASSETS
Stocks
Debtors
Cash at bank and in hand
Less: CURRENT LIABILITIES
Creditors: Amounts falling due within one year
NET CURRENT ASSETS
NET ASSETS
Total assets less total liabilities
Represented by:
Restricted funds
Unrestricted funds
TOTAL FUNDS CARRIED FORWARD		 2023
£
9,889
9,889
52,369
37,525
622,521
712,415
(54,674)
657,741
667,630
70,550
597,080
667,630		 2022
£
22,382
22,382
91,289
122,828
437,612
651,729
(37,642)
614,087
636,469
58,894
577,575
636,469

Page | 21

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

CONSOLIDATED CASH FLOW STATEMENT for the year ended 31[st] March 2023

Reconciliation of net movement in funds
to net cash flow from operating activities
Net movement in funds
Bank interest
Depreciation
(Profit) / Loss on the disposal of fixed assets
Decrease / (Increase) in stock
Decrease / (Increase) in debtors
Increase / (Decrease) in creditors
Net cash (used in) / provided by operating activities
Cash flows from investing activities
Bank interest received
Proceeds from the disposal of fixed assets
Payments to acquire fixed assets
Net cash (used in) investing
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Cash balances are held in the following locations
United Kingdom
Overseas
CASH BALANCES at 31st MARCH 2023
Analysis of changes in net debt		 2023
£
50,001
(1,597)
15,047
(101)
38,074
76,023
28,737
206,184
1,597
4,644
(4,580)
1,661
204,523
437,612
642,135
591,548
50,587
642,135		 2022
£
21,104
(19)
17,423
(2,509)
(39,854)
(96,966)
(22,712)
(123,533)
19
2,509
(19,791)
(17,263)
(140,796)
578,408
437,612
409,098
28,514
437,612

The charity had no net debt during the year

Page | 22

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31[st] March 2023

1. ACCOUNTING POLICIES

Legal status of the Charity

Pump Aid is a company limited by guarantee incorporated on 4[th] November 1998. Its registered office is at 3[rd] Floor, 86-90 Paul Street, London, EC2A 4NE.

Basis of accounting

The Consolidated Financial Statements have been prepared in accordance with the Charity's Memorandum & Articles of Association, the Companies Act 2006 and “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) (effective 1[st] January 2019)”.

As stated in note 18, in previous years the Charity has delivered all of its activities in Malawi through a Malawi registered branch, Pump Aid Malawi. Since April 2022, some of its activities have been delivered by Beyond Water Malawi, a Malawi registered company of which the Charity is the ultimate sole beneficial owner. The Consolidated Financial Statements of the Charity include all of the funds it raised during the year and all of the activities it delivered, regardless of which company raised the funds or delivered the activity.

The Company meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Save as noted above, the accounting policies of the Charity have not changed during the period.

Preparation of the financial statements on a going concern basis

As stated on page 10 of the Trustees’ Report, Trustees believe there are no material uncertainties that call into doubt the Charity’s ability to continue as a going concern and the financial statements have therefore been prepared on the basis that the Charity is a going concern.

In reaching this conclusion, Trustees have considered the enduring effect of Covid19 on the Charity which has been largely positive, due in part to Pump Aid’s reputation for flexibility which has enabled the Charity to redeploy staff from activities the pandemic made impossible onto programmes that were both deliverable and fundable.

The Charity has continued to employ all its staff on a full-time basis and believes it can continue to fund its existing and future programme commitments. The pandemic has given its staff the opportunity to demonstrate their willingness to adapt, which has enabled the Charity to adapt its delivery models and, over time, it believes all of its current programmes can be realigned to operate in a post Covid19 world. The way its field teams have adopted new health and safety measures has also contributed to a greater awareness of hygiene and sanitation within the communities with which the Charity works. While the pandemic has undoubtedly caused some disruption to the Charity’s fundraising and delivery, Trustees are confident that Pump Aid can continue as a going concern for the foreseeable future.

Functional currency

The financial statements are prepared in pounds sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

Income

Income is recognised when the Charity is entitled to the funds, any requirements attached to the income have been met, it is probable the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

Page | 23

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all the costs related to a category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.

Expenditure is recognised once there is an 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.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Almost all costs are directly attributable to programmes and are recovered either by direct recharge or by apportionment. Unlike larger charities with substantial UK and overseas offices, Pump Aid has a very small central team which both develops and delivers programmes and, aside from the proportion charged to fundraising and governance, the payroll and occupancy costs of the central team are charged to the programmes they deliver.

Critical accounting judgements and estimation uncertainty

In the application of the Charity’s accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Trustees do not consider there to be any critical accounting estimates or judgements in preparing these financial statements.

Pension costs

In Malawi, the Charity contributes to a defined contribution pension scheme and, in the UK, the Charity contributes to any personal scheme which meets its obligations under auto enrolment. The amounts charged in the financial statements are the employer’s contributions payable in the financial year.

Operating leases

Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the life of the lease.

Tangible fixed assets

Fixed assets are stated at cost less depreciation. They are depreciated at rates intended to reduce their cost to their residual value over their estimated useful life (currently 33.3% on a straight-line basis). Any asset costing less than £500 is fully depreciated in the year of acquisition. All assets are inspected regularly for any impairment and any defects fixed to maintain their value and usefulness.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. All financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Stock

Stocks are stated at lower of cost or net realisable value.

Page | 24

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

Debtors and prepayments

Trade and other debtors are recognised at the settlement amount after any provision for bad and doubtful debts. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short-term, highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation 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 recognised at their settlement amount.

Foreign currency translation

Transactions in foreign currencies are translated into sterling at the average rate of exchange pertaining to the relevant accounting period. At each reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated at the rates prevailing at the reporting date. Exchange differences are recognised through the Statement of Financial Activities.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Restricted funds are donations which the donor has specified are to be used solely for specific projects or for specific aspects of the Charity’s work to be delivered in specific locations.

2. DONATIONS AND VOLUNTARY INCOME

Donations
Medicor Foundation
Waterloo Foundation
Michael Pugh
Aspect Capital
Urenco Ltd
Allan & Nesta Ferguson Trust
Rotork PLC
James Percy Charitable Trust
Roland Fox and Colette Flanagan
Estate of Diane Burton
Gift Aid
Donations of less than £10,000 or Anonymous
Government grants
State of Guernsey
Innovate UK
UK FCDO
Concern Worldwide
Deferred donations
Donations deferred to the following year
Total Donations and Voluntary Income		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
-
140,000
140,000
13,000
121,000
134,000
120,000
-
120,000
100,000
-
100,000
-
50,000
50,000
-
50,000
50,000
-
50,000
50,000
-
39,068
39,068
15,388
-
15,388
-
-
-
11,611
-
11,611
113,846
6,000
119,846
373,845
456,068
829,913
-
14,952
14,952
-
-
-
-
-
-
-
-
-
-
14,952
14,952
-
(25,000)
(25,000)
,
373,845
446,020
819,865		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
-
-
-
10,000
111,000
121,000
-
-
-
20,000
-
20,000
-
81,000
81,000
-
-
-
-
45,000
45,000
-
123,916
123,916
10,000
-
10,000
12,922
-
12,922
11,755
-
11,755
87,478
35,950
123,428
152,155
396,866
549,021
-
-
-
-
24,472
24,472
-
11,674
11,674
-
6,242
6,242
-
42,388
42,388
28,350
-
28,350
180,505
439,254
619,759

Page | 25

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

3. INCOME FROM CHARITABLE ACTIVITIES

Waiakea Springs
Thirsty Planet
Sales of pumps in Malawi
Other income
Income received in the year
Income deferred into following year
Total Income from Charitable Activities		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
4,139
-
4,139
77,735
-
77,735
55,191
-
55,191
2,070
-
2,070
139,135
-
139,135
(1,093)
-
(1,093)
138,042
-
138,042		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
166,900
-
166,900
131,862
-
131,862
96,903
-
96,903
1,433
-
1,433
397,098
-
397,098
(7,187)
-
(7,187)
389,911
-
389,911

4. EXPENDITURE ANALYSIS

Costs of generating voluntary income
Charitable expenditure
Delivering water, sanitation and
hygiene improvement in Malawi
Governance costs
Total Expenditure		 Staff costs
Operational
costs
Total
2023
£
£
£
90,702
13,744
104,446
402,500
363,818
766,318
20,626
18,214
38,840
513,828
395,776
909,604		 Staff costs
Operational
costs
Total
2022
£
£
£
62,306
10,260
72,566
426,915
458,256
885,171
14,420
18,937
33,357
503,641
487,453
991,094

Costs of generating voluntary income include staffing, office and publicity costs related to fundraising.

5. STAFF COSTS

Gross emoluments
Employer’s social security costs
Pension contributions
Health insurance for staff in Malawi
Total Staff Costs		 Total
2023
£
438,042
13,426
42,311
20,049
513,828		 Total
2022
£
431,662
7,098
42,646
22,235
503,641

Key management personnel (KMP) of the Charity comprise the Trustees and the Chief Executive. Remuneration of KMP (including employer’s social costs) was £85,848 (2022: £84,242).

In Malawi, the Charity operates a defined contribution pension scheme, whose assets are held in an independently administered fund and in the UK it makes contributions to any personal pension scheme which meets its obligations under auto enrolment. Contributions payable by the Charity in the year amounted to £42,311 (2022: £42,646), these included contributions of £7,000 (2022: £7,000) payable by the Charity on behalf of higher paid staff.

the Charity on behalf of higher paid staff.
Average number of staff excluding trustees
Based in Malawi
Based in the United Kingdom
Total Staff		 Total
2023
14.7
4.9
19.6		 Total
2022
23.3
4.2
27.5

Page | 26

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

6. GOVERNANCE COSTS

Governance costs comprise
Staff costs
Auditors’ remuneration
Premises, office costs and travel
Total Governance Costs		 Total
2023
£
20,626
15,120
3,094
38,840		 Total
2022
£
14,420
16,774
2,163
33,357

Governance costs comprise the costs of external audits, the costs of trustees’ meetings, the costs of statutory compliance and other costs incurred in the strategic oversight of the Charity.

7. TRUSTEES’ EMOLUMENTS AND REIMBURSED EXPENSES

No payments were made to any of the Charity’s Trustees in respect of their role as trustees during the financial year (2022: £nil) and no Trustees were reimbursed expenses (2022: £nil).

8. CORPORATION TAX

As a charity, Pump Aid is exempt from UK tax on income and gains to the extent that these are applied to its charitable objects. No UK tax charges have arisen during the year or in the previous year.

9. FIXED ASSETS

Cost or valuation at 1stApril 2022
Additions during period
Disposals during period
Cost or valuation at 31st March 2023
Accumulated depreciation at 1stApril 2022
Charge for the year
Depreciation on disposals
Accumulated depreciation at 31st March 2023
Net book value at 31st March 2023
Net book value at 31st March 2022		 Land
Fixtures and
Equipment
Motor
Vehicles
£
£
£
1,232
18,665
141,495
-
4,580
-
-
(1,536)
(19,835)
1,232
21,709
121,660
-
13,825
125,185
-
3,848
6,095
-
(1,536)
(13,511)
-
16,137
117,769
1,232
5,572
3,891
1,232
4,840
16,310		 Total
2023
£
161,392
4,580
(21,371)
144,601
139.010
9,943
(15,047)
133,906
10,695
22,382
10. STOCKS
Stocks include small tools, fuel and materials used for building pumps
Stocks of finished pumps
Stocks of pump building materials
Other stock items
Total Stocks		 Total
2023
£
40,424
11,019
1,772
53,215		 Total
2022
£
66,644
21,622
3,023
91,289

Page | 27

Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

11. DEBTORS

Trade debtors
Other debtors
Prepayments
Accrued income
Total Debtors		 Total
2023
£
33,588
13,217
-
-
46,805		 Total
2022
£
70,982
3,298
520
48,028
122,828

12. CREDITORS (amounts falling due within one year)

Trade creditors
Taxes and social security costs
Accrued audit fees
Deferred income
Total Creditors		 Total
2023
£
19,360
5,380
15,547
26,093
66,380		 Total
2022
£
8,365
5,366
16,724
7,187
37,642

13. MOVEMENT IN DEFERRED INCOME

Deferred income at 1stApril 2022
Amounts released from previous years
Incoming resources deferred in the year
Deferred income at 31st March 2023		 Total
2023
£
7,187
(7,187)
26,093
26,093		 Total
2022
£
28,350
(28,350)
7,187
7,187

14. MOVEMENT IN FUNDS

2023
RESTRICTED FUNDS
WASH for vulnerable populations
Enterprise for WASH and agriculture
Enterprise for repair and maintenance
Movement in Restricted Funds
UNRESTRICTED FUNDS
Movement in Total Funds		 Balance at
1st April 2022
£
58,894
-
-
58,894
577,575
636,469		 Income
Expenditure
Net
movement
in funds
Balance at
31st March 2023
£
£
£
£
49,068
(77,412)
(28,344)
30,550
77,000
(77,000)
-
-
319,952
(279,952)
40,000
40,000
446,020
(434,364)
11,656
70,550
513,585
(475,240)
38,345
615,920
959,605
(909,604)
50,001
686,470		 Income
Expenditure
Net
movement
in funds
Balance at
31st March 2023
£
£
£
£
49,068
(77,412)
(28,344)
30,550
77,000
(77,000)
-
-
319,952
(279,952)
40,000
40,000
446,020
(434,364)
11,656
70,550
513,585
(475,240)
38,345
615,920
959,605
(909,604)
50,001
686,470
70,550
615,920
686,470

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

14. MOVEMENT IN FUNDS (comparative)

OVEMENT IN FUNDS(comparative)
Net
Balance at movement Balance at
2022 1st April 2021 Income Expenditure
in funds		 31st March 2022
£ £ £ £ £
RESTRICTED FUNDS
WASH for vulnerable populations 40,794 184,188 (166,088) 18,100 58,894
Enterprise for WASH and agriculture
Restricted FCDO/UKAID funds - 11,674 (11,674) - -
Other restricted funds - 30,714 (30,714) - -
Enterprise for repair and maintenance - 212,678 (212,678) - -
Movement in Restricted Funds 40,794 439,254 (421,154)
18,100		 58,894
UNRESTRICTED FUNDS 574,571 572,944 (569,940) 3,044 577,575
Movement in Total Funds 615,365
1,012,198		 (991,094)
21,104		 636,469
NALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted Restricted
Total		 Unrestricted
Restricted		 Total
Funds Funds
2023		 Funds Funds 2022
£ £ £ £ £ £
Fund balances at 31stMarch represented by:
Tangible fixed assets 10,695 -
10,695		 22,382 - 22,382
Current assets 671,605 70,550
742,155		 592,835 58,894 651,729
Current liabilities (66,380) -
(66,380)		 (37,642) - (37,642)
Fund balances at 31st March 615,920 70,550
686,470		 577,575
58,894		 636,469

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

16. COMMITMENTS UNDER OPERATING LEASES

OMMITMENTS UNDER OPERATING LEASES
Within one year
Between two and five years
Total Commitments		 Total
2023
£
6,034
-
6,034		 Total
2022
£
6,034
-
6,034

17. RELATED PARTY TRANSACTIONS

The Charity received funding in the year from Urenco Limited, a company that employs Gerard Tyler, one of the Charity’s trustees. Charitable donations made by Urenco are overseen by a grant making committee and are subject to a vetting and due diligence process in which Gerard Tyler takes no part. There were no conditions attached to Urenco’s donation that would not have accompanied any other donation to any other charity.

18. SUBSIDIARY COMPANIES

The Charity has a Malawi registered branch, Pump Aid Malawi, which used to deliver all its activities in that country. Since April 2022, some of its activities have been delivered by a wholly owned subsidiary, Beyond Water Malawi. Beyond Water Malawi (Company Number: 01756706. Registered Office: 14/211, off Presidential Way, PO Box 2712, Lilongwe), is a wholly owned subsidiary of Beyond Water Limited. Beyond Water Limited (Company Number: 7387428. Registered Office: 86-90 Paul Street, London, EC2A 4NE), is a wholly owned subsidiary of the Charity.

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Trustees’ Report and Consolidated Financial Statements for the year ended 31[st] March 2023

______________________

GLOSSARY OF TERMS AND ABBREVIATIONS

AM A self-employed area mechanic
BWM Beyond Water Malawi
CBCCs Community Based Childcare Centres (rural nurseries for the under-5s)
CLTS Community Led Total Sanitation
CWP(s) Community Water Point(s)
CWPC(s) Community Water Point Committee(s)
DFID The UK Department for International Development
DWO District Water Office
ENTREPRENEUR A self-employed artisan or trader
FCDO The UK Foreign, Commonwealth & Development Office (formed by the merger
of DFID and the Foreign and Commonwealth Office)
GDPR General Data Protection Regulations
JMP Joint Monitoring programme of the WHO and UNICEF
MVAC Malawi Vulnerability Assessment Committee
NGOs Non-Governmental Organisations
PAM Pump Aid Malawi
SDGs The United Nations’ Sustainable Development Goals
SELF-SUPPLY The delivery of incremental improvements to water for consumption and
irrigation, financed by the users themselves
See http://www.pumpaid.org/our-work/programmes/water
UKAID Funds received from DFID or FCDO
UNICEF The United Nations International Children's Emergency Fund
WASH The collective term for Water, Sanitation and Hygiene interventions
WHO World Health Organisation
WPC Water Point Committee

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