## **Bread and Water for Africa UK** 

## **(A company limited by guarantee)** 

## **Registered Charity Number: 1103138** 

## **Company Number: 05043252** 


## **Financial Statements for the year ended** 

## **31 March 2023** 

1 



BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **CONTENTS** 

||**Page**|
|---|---|
|Trustees’Report|1|
|Auditors Report|9|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Notes to the Accounts|15|



1 



BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **COMPANY INFORMATION** 

**Registered Charity Number:** 1103138 **Company Number:** 5043252 **Registered Office:** 33 Creechurch Lane London EC3A 5EB **Trustees & Directors:** Street Child (Appointed 1[st] April 2022) Anthony Wallersteiner (Appointed 1[st] April 2022) Mr C. Queree (Chair) Ms E. Robinson (Resigned 1[st] April 2022) Ms L Kocher (Resigned 1[st] April 2022) Ms L Delaney (Resigned 1[st] April 2022) Mr B Tawuya (Resigned 1[st] April 2022) Mr D Talbot (Resigned 1[st] April 2022) **Auditors:** Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP **Bankers:** The Cooperative Bank PO Box 250 Skelmersdale Greater Manchester WN8 6WT 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **TRUST** EES’ **REPORT** 

The Trustees are pleased to present their report together with the financial statements for the year ended 31 March 2023. The information shown on the previous page forms a part of this report. 

## **Acquisition by Street Child** 

Bread and Water for Africa Trustees have always looked at ways to make the charity more effective and to take us closer to our vision. During 2021/22, the Trustees carried out a fundamental review of the charity as a whole, taking into account the impact we want to have in the world and the incredible need that is out there. As part of this process, Trustees spoke with Street Child, meeting a charity that shares our aims and objectives. It quickly became clear that, together, we could have a much greater impact than the sum of our parts. 

Street Child believes that every child deserves the chance to go to school and learn. They understand the vital role of education in ending poverty and operate in Kenya and Sierra Leone and in many other countries across Africa and Asia including Democratic Republic of Congo, Liberia, Ghana, Cameroon, Burundi, Nigeria, Uganda, Somalia, South Sudan and Mozambique. 

These talks resulted in Build Africa becoming a part of the Street Child family with the acquisition finalised on 1[st] April 2023 when Street Child became corporate Trustee of Bread and Water for Africa. 

We believe this is an exciting step forward for Bread and Water for Africa and our supporters that will enable us to reach even more children who are not yet getting the education they deserve. 

## **SCOPE OF THE CHARITY** 

## **Mission and Objectives** 

The main objectives for the year to 31 March 2023 continued to be the relief of poverty and sickness, the advancement of education, and the promotion of social and economic development in Africa with a focus on longterm programmes that make it possible for communities to develop their own sustainable solutions. Bread and Water for Africa UK was established to pursue these objectives within Africa, particularly but not exclusively, by working with and assisting members of local populations to build viable livelihoods, encouraging self- reliance, and supporting sustainable projects initiated by them. 

This year, Bread and Water for Africa UK continued its efforts to help rebuild communities, healthcare infrastructure and education programmes in the different countries its partners operate. 

The Charity also continued its efforts to most efficiently achieve its programmatic and fundraising goals by diversifying its fundraising streams and by utilising voluntary contributions. Our Trustees ’ Annual Reports over the past three years have highlighted these goals of diversification, as well as the measures undertaken to achieve them. 

The strategies adopted to achieve the Charity ’ s objectives are to: 

- Fund grassroots, community-based African organisations (as programme partners) to help them implement sustainable initiatives promoting economic self-sufficiency, health, and education; 

- Identify needs and provide skills and tools to programmes partners to help them become more efficient and more resilient; 

- Raise awareness of the needs of our beneficiaries 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **Public Benefit** 

Through our objective of the relief of poverty, public benefit is inherent in everything that we do. We adhere and have had due regard to section 17 of the Charities Act 2011 on public benefit when pursuing our objectives. In shaping our objectives for the year, the Trustees have considered the Charity Commissi on’s guidance on public benefit, including the guidance ‘ Public benefit: running a charity (PB2) ’ 

## **Activities** 

The principal areas of activity are Grant-making to programme partners that are community-based, nongovernmental organisations (NGOs) in Africa run by local community leaders; 

The Trustees ’ policy is to take particular care to ensure that every grant is awarded only to those African recipients who will not betray the trust of the donors. As outlined by the Charity’s grant-making policy, prospective grantees are required to undergo a thorough due diligence process. No new organisation was selected to become partner of Bread and Water for Africa UK this year. 

The Charity ’ s programme partners must continually meet specific criteria that demonstrate a real community need for their services, as well as their trustworthiness and ability to carry out those services to the best possible standards. 

In addition, Street Child staff are in regular contact with the programme partners to provide advice and guidance on strategic development and project planning and implementation. The Charity takes into consideration the partners’ needs, then uses its long experience in development programmes to guide their choices and decisions, ensuring their projects are as efficient and self-sustainable as possible, based on funds available. The Charity also informs them about other sources of funding for which they may be eligible and provides advice on how to most effectively communicate with donors and partners, including providing reports, impact assessments and marketing materials. 

The Charity works in a collaborative approach with its partners, encouraging honest and open communication. The Trustees understand that situations may prevent the partners from either implementing the project or spending the budget as planned. When this occurs, a solution is found together. 

That said, the programme partners must comply with the Charity’s narrative and financial reporting process, they must demonstrate their efforts to remain cost-efficient. The Charity has a zero-tolerance policy towards corruption or any misuse of funds. 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **OVERVIEW OF THE FINANCIAL YEAR** 

The Charity ’s income decreased to £75,220 from £126,943 in the prior year. 

This is in part due to the fundraising focus for the year focusing on regular donors with no applications submitted to Trusts and Foundations since this work is now being undertaken by the parent charity Street Child. 

## **Use and Value of Volunteers** 

There were no volunteers used during the year. 

## **Fundraising Strategy** 

A successful mailout campaign during the year saw generous donations with some donors giving to Bread and Water for Africa and some to Street Child, in a campaign which encouraged emergency preparedness funding. 

## **Fundraising Activities** 

The Charity ’ s principal funding sources are donations made online through its website, through other giving websites such as JustGiving or Global Giving, legacy bequests, and through direct mail appeals.  Fundraising expenditure fell from £60,594 in the prior year to £24,381. 

## **Grant funding Activities** 

In 2022/23 Bread and Water for Africa supported programmes in Sierra Leone and Burundi with the provision of £4,518 of funding. Funding in Sierra Leone was provided to longstanding partner organisation Glocal Forum Yala Africa. 

## **Reserves Policy** 

The Charity aims to maintain free reserves at a level that equates to between three and six months of total resources expended (a range of approximately £90,000 to £180,000). This will provide sufficient funds to cover ongoing governance, education, and support costs and to meet grant payments that have already been committed to, as well as to respond to any urgent grant requests which may arise from time to time. This fixed baseline – level of reserves is monitored as needed to ensure that it is adjusted and maintained at a responsible level – with the approval of the Trustees on the basis of changing environmental factors and developments in costs and income. 

The charity started the year with total reserves of £12,661 which were all unrestricted.  It ended the year with unrestricted reserves of £37,874.  The charity also has restricted reserves of £15,333 which will be utilised to fund projects in 2023/24. 

Street Child Group’s reserves policy is to maintain reserves within a range set with reference to key risks, and calibrated against the level of reserves that would be required to fund three to six months of operating costs. 

The largest two risks facing Street Child are a fall or under-performance in Unrestricted income, and/or the need to use Unrestricted funds to cover Restricted Programme costs, for instance because of cost disallowed by the funders. 

This quantification of reserves will be carried out on an annual basis as part of the budget setting process which concludes in March each year.  At this stage the Trustees will consider if any of the major risks have changed, and also the quantification of the reserves in line with the budget. 

For Street Child Group the reserves target is £0.75m to £1.5m, with a mid-range target of £1.1m.  Street Child Group unrestricted reserves at 31 March 2023  of £1.1m (2022: £1.2m) were ahead of the mid-range target. 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing Document** 

Bread and Water for Africa UK is a registered charitable company (Registered Charity No. 1103138 and Company No. 05043252) limited by guarantee and governed by its Memorandum and Articles and Constitution dated 13 February 2004. 

The members of the Board of Trustees, hereafter referred to as “ the Trustee s,” are set out on the previous page. For the purposes of company law, the Trustees are also the Directors of the Company. 

## **Appointment of Trustees** 

As dictated by the Charity ’ s Constitution, the Trustees are appointed by a simple majority of the Board. Any person desiring to be admitted to the membership of the Company is required to apply in writing. No person shall be admitted until approved by a resolution passed in accordance with the Constitution by the existing members. 

## **Trustees Induction and Training** 

– Once elected, new Trustees receive an induction pack outlining the role of Trustees; what is expected of them roles and responsibilities; and details of the structure and purpose of the Charity. 

The pack includes a copy of the governing document and contact details of all Board members along with details of the key operational personnel, professional advisors, and key suppliers. 

Trustees are kept up to date with various governance publications and notices from network memberships. Trustees will also be advised of any appropriate courses that they may benefit from attending. 

## **Risk management and internal control** 

The Trustees are fully aware of the need to assess the risks faced by the charitable group and to minimise those risks. They have conducted a comprehensive process to identify, assess and manage risks. This culminates in a register of risks, with all risks being scored for likelihood and impact and management strategies and timetables being established. The risk register is reviewed by the Finance Committee every quarter and at every Board Meeting (also quarterly) to assess all risk factors identified in the risk register and ensure that all Trustees are fully abreast of the risk situation in the organisation. 

In addition to the organisational risk register, each country programme holds a register for all large projects, which have their own risk registers that are used by project management teams to make operational decisions. All fundraising events have their own risk assessments. 

While no system of internal control can provide absolute assurance against material misstatement or loss, Street Child Group’s systems have been developed to provide assurance to the Board that there are proper procedures in place and that they are operating effectively. 

Key elements of the system of risk management and internal control include: 

- Delegation: there is a clear organisational structure with lines of authority and responsibility for control; and procedures for reporting decisions, actions and issues. 

- A clear, comprehensive documented suite of financial procedures accessible to all staff. 

- Financial Reporting: the Board approves and monitors the annual budget and income projections. Each Board meeting receives an update on the latest forecast income and expenditure together with explanations of significant variations. The Finance Committee reviews the financial reports in detail and agrees any appropriate management actions; minutes from this Committee’s meetings are presented to the Board. 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

- Programme reporting: regular reports are received by the Chief Executive from the country leads. These are reviewed to ensure that the programmes are progressing as planned and to identify any issues which are followed up as necessary.  Written quarterly updates are provided to the Board along with any issues, risks or opportunities. 

The principal risks and uncertainties facing the charitable group, as identified by the Trustees of Street Child include the following: 

- Unrestricted Income being insufficient to support institutional restricted funding or pursuing opportunities for investment.  This is mitigated by careful monitoring of income compared to budget and forecast, and the pipeline income and by ensuring that costs are carefully managed. 

- Unsatisfactory Programmes impact, or donors consider project impact to be unsatisfactory.  We continue to invest in quality in-country programme and finance teams to ensure that we can meet donor requirements. 

## **Plans for Future Periods** 

Bread and Water for Africa UK now operates as a subsidiary charity of Street Child. This means the charity registration number will remain and the charity’s independence will continue. The Charity will continue to report to the Charity Commission and Companies House and be entirely responsible for its own accounts, policies and legal compliance. 

Bread and Water for Africa UK ’ s aim is to continue to raise funds and awareness for programmes promoting selfsufficiency, health, and education in Africa and to increase its base of supporters. Through Street Child, the Charity will also continue to use e-mails alongside social media campaigns as a low-cost method of expanding its donor base and taking advantage of other channels to educate, inform and solicit feedback from existing supporters. 

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BREAD AND WATER FOR AFRICA TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 

## **TRUSTEE** S’ **RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS** 

The Trustees (who are also Directors of Bread and Water for Africa UK for the purposes of company law) are responsible for preparing the Trustees ’ Report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), ‘ ’ including FRS 102 The Financial Report Standard applicable in the UK and Ireland . 

Company law requires Trustees to prepare financial statements for each fiscal year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 contained in the Charity ’ s SORP; 

- Make judgements and estimates that are reasonable and prudent; 

- State whether the applicable UK Accounting Standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; 

- Provide oversight to the Charity ’ s fundraising methods and ensure compliance with database and donorfocused best-practices; 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company 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 Charity ’ s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Small Company Exemption** 

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. 

## **On Behalf of the Trustees** 


……………………………………………….. 

Anthony Wallersteiner 

30[th] January 2024 

8 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BREAD AND WATER FOR AFRICA 

## Opinion 

We have audited the financial statements of Bread and Water for Africa (‘the charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- ! give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- ! have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- ! have been prepared in accordance with the requirements of the Companies Act 2006. 

## 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 financial statements section of our report. We are independent of the Corporation 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 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 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. 

In connection with our audit of the financial statements, 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. 

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BREAD AND WATER FOR AFRICA 

## 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 for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- ! the trustees’ annual report have 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

- ! adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- ! the financial statements are not in agreement with the accounting records and returns; or 

- ! certain disclosures of trustees’ remuneration specified by law are not made; or 

- ! we have not received all the information and explanations we require for our audit; or 

## Other matters 

The corresponding figures in the financial statements of Bread and Water for Africa were not audited as the company did not require a statutory audit under the Companies Act 2006. 

## Responsibilities of trustees 

As explained more fully in the trustees’ responsibilities statement set out on page 8, 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 

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- ! Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from 

10 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BREAD AND WATER FOR AFRICA 

error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- ! Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control. 

- ! Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

- ! Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. 

- ! Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 

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. 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. 

Our approach was as follows: 

- ! We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation. 

- ! We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. 

- ! We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. 

- ! We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

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## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BREAD AND WATER FOR AFRICA 

- ! Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

## 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. Our audit work has been undertaken so that we might state to the 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 


Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 

9 Appold Street London EC2A 2AP 

Date: 30[th] January 2024 

12 



**BREAD AND WATER FOR AFRICA STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 March 2023** 

|**Note**<br>**Income from**<br>_Donations and Legacies_<br>Donations and similar income<br>Legacies<br>**Total Income**<br>**Expenditure On**<br>_Raising funds_<br>**3**<br>_Charitable activities_<br>**4**<br>**Total Expenditure**<br>**Net movements in funds**<br>**2**<br>**Total funds brought forward**<br>**Total funds carried forward**<br>**10**|**Year ended**<br>**31 March**<br>**Unrestricted Restricted**<br>**Total**<br>44,414<br>851<br>45,265<br>10,955<br>19,000<br>29,955<br>55,369<br>19,851<br>75,220<br>24,381<br>-<br>24,381<br>5,775<br>4,518<br>10,293<br>30,156<br>4,518<br>34,674<br>25,213<br>15,333<br>40,546<br>12,661<br>-<br>12,661<br>37,874          15,333          53,207<br>**2023**<br>**£**|**Period ended**<br>**31 March**<br>**2022**<br>**£**<br>**Total**<br>106,145<br>20,798|
|---|---|---|
|||126,943|
|||60,594<br>116,184|
|||176,778|
|||(49,835)<br>62,496|
|||12,661|



The Statement of Financial Activities includes all gains and losses recognised in the year. 

The above results are derived from continuing activities. 

The accompanying notes form part of these financial statements. 

13 



**BREAD AND WATER FOR AFRICA BALANCE SHEET As at 31 March 2023** 

|**Current Assets**<br>Debtors<br>**8**<br>Cash in hand and at bank<br>**Creditors: Amounts falling due**<br>**within one year**<br>**9**<br>**Net Current Assets**<br>**Total Assets less Current Liabilities**<br>**Unrestricted funds**<br>General Reserve<br>**10**<br>Restricted Funds<br>**11**|**31 March**<br>**2023**<br>**£**<br>-<br>89,807<br>89,807<br>(36,600)|**31 March**<br>**2023**<br>**£**<br>53,207<br>53,207<br>37,874<br>15,333<br>53,207|**31 March**<br>**2022**<br>**£**<br>5,367<br>36,645<br>42,012<br>(29,351)|**31 March**<br>**2022**<br>**£**<br>12,661<br>12,661<br>12,661<br>-<br>12,661|
|---|---|---|---|---|



These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 

Approved, and authorised for distribution, by the Board of Trustees on 30th January 2024 and are signed on their behalf by: 

...................................................... Christopher Querée **Trustee** 

The accompanying notes form part of these financial statements. 

## **Company number 05043252** 

14 



BREAD AND WATER FOR AFRICA CASH FLOW STATEMENT As at 31 March 2023 

|Net cash (outflow)/inflow from operating activities<br>(Decrease)/Increase in cash and cash equivalents<br>Cash and cash equivalents at the beginning of the period<br>Cash and cash equivalents at the end of the period|2023<br>2022<br>£<br>£<br>53,162<br>(42,140)<br>53,162<br>(42,140)<br>36,645<br>78,785<br>89,807<br>36,645|
|---|---|



## RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 

|Net Movement in Funds<br>Decrease/(Increase) in debtors<br>Increase/(Decrease)in creditors<br>Net Cash Inflow /outflow from operating activities<br>Analysis of cash and cash equivalents and net debt<br>Opening balance<br>Cash-Flows<br>Closing balance|2023<br>£<br>40,546<br>5,367<br>7,249<br>53,162<br>2023<br>£<br>36,645<br>53,162<br>89,807|2022<br>£<br>(49,835)<br>(5,367)<br>13,062|
|---|---|---|
|||(42,140)|
|||2022<br>£<br>78,785<br>(42,140)|
|||36,645|



15 



BREAD AND WATER FOR AFRICA CASH FLOW STATEMENT As at 31 March 2023 

42,140 0 

53162.39 89807.39 

16 



**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1 Accounting Policies** 

## **Basis of Preparation** 

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), published on 16 July 2014.  The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP),  the Companies Act 2006 and the Charities Act 2011. 

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 pound. 

The principle accounting policies adopted in the preparation of the financial statements are set out below. 

## **Going Concern** 

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable entity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charitable entity’s forecasts and projections and have taken account of pressures on donation and investment income. In assessing whether Bread and Water for Africa is a going concern, the Trustees have also considered the reserves of the Street Child charitable group, of which the charity is a wholly owned subsidiary. The trustees have considered the group forecasts and projections and have taken account of pressures on donation and grant income and cash flow for 12 months from the date of approval of the financial statements, the associated assumptions that under-pin it, the pipeline of new income and the steps that could be taken to reduce expenditure should this be necessary. 

The Trustees are satisfied that the group has sufficient resources to continue in operational existence for the foreseeable future. The group is largely sheltered has a loyal donor base and a significant grant pipeline.  Annual budgets include prudent figures for both income and expenditure and the charity holds reserves within the policy set out in the reserves policy and has liquid assets in the form of cash held in short term deposits. 

The Trustees have concluded that with the reserves policy and cash liquidity requirements of the charity together with the commitment of support received from Street Child, the ultimate controlling party, there are no material uncertainties as to the charity’s ability to continue in operational existence for the foreseeable future. 

On 1 April 2022, the charity was acquired by Street Child,  a charity company registered in England and Wales, registered Charity no 1128536 and registered company no 06749574. On the date of acquisition all activities, assets and liabilities of Bread and Water for Africa UK were transferred to Street Child. 

## **Income** 

Income is included on an accruals basis except for donations received, which are credited as income when received. 

## **Gift Aid Repayments** 

Income from gift aid repayment claims is only included for claims which have been submitted for tax periods ending on or before the year end and when the receipt of this income is reasonably certain. 

16 



**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1 Accounting Policies (continued)** 

## **Expenditure** 

Expenditure, which is charged on an accruals basis, is allocated between: 

- expenditure incurred directly in the effort to raise voluntary contributions (raising funds); 

- expenditure incurred directly in the fulfilment of the charity's objectives (charitable activities); and 

Charitable activities comprise all the expenditure incurred by the charity in meeting its charitable objectives and is further analysed between: 

- Grants payable 

- Education and development 

Where items of expenditure involve more than one cost category these costs have been apportioned on a reasonable basis as determined by the Trustees. The basis used is 50% allocated to Fundraising and 50% allocated to Programmes activities. 

## **Fund Accounting** 

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity. 

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in note 11. 

## **Foreign Currencies** 

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction, the average rate being used as an approximation to this rate.  Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All exchange differences are dealt with through the statement of financial activities. 

17 



**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1 Accounting Policies (continued)** 

## **Cash and Cash Equivalents** 

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less. 

## **Financial Instruments** 

## **Debtors and creditors** 

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest. 

## **Critical accounting estimates and areas of judgement** 

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. 

|**2**|**Surplus / (Deficit) of Income over Expenditure**|**2023**|**2022**|
|---|---|---|---|
|||**£**|**£**|
||The surplus / (deficit) of income over expenditure is stated after charging:|||
||Independent Examiner's / Auditors' remuneration:|||
||- Auditors fees / Independent examiner's fees|5,400|6,000|
||- Accountancy and other professional services|-|1,515|



|**3**<br>**Fund Raising and Publicity**<br>Mailshots<br>Collection of Income<br>Total before allocated Support costs<br>Support costs|**2023**<br>**£**<br>-<br>18,606<br>18,606<br>5,775<br>24,381|**2022**<br>**£**<br>36,868<br>-|
|---|---|---|
|||36,868<br>23,726|
|||60,594|



All of the above expenditure relates to unrestricted funds in 2023 and 2022. 

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**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

|**4**<br>**Charitable Activities**<br>_Grants Payable_<br>**Unrestricted**<br>**Restricted**<br>Global Forum Yala<br>-<br>4,311<br>Burundi<br>-<br>206<br>Kamili Foundation, Kenya<br>-<br>-<br>Lewa Children's Home<br>-<br>-<br>**Total direct costs of grants payable**<br>-<br>4,517<br>Support costs of grant programmes<br>5,775<br>-<br>5,775<br>4,517<br>**Costs of Activities in Furtherance of the Charity's Objectives**<br>Education and development<br>**Total charitable activities**<br>**2023**<br>**£**<br>**Total expenditure on charitable**<br>**activitites**<br>Support costs allocated to Education<br>and development|**Unrestricted**<br>-<br>-<br>-<br>-|**Restricted**<br>4,311<br>206<br>-<br>-<br>**2023**<br>**£**|**Total**<br>4,311<br>206<br>-<br>-|**2022**<br>**£**<br>**Total**<br>38,744<br>993<br>1,020<br>31,649|
|---|---|---|---|---|
||-<br>5,775|4,517<br>-|4,517<br>5,775|72,406<br>5,297|
||5,775|4,517|10,293|77,703|
||||**2023**<br>**£**<br>-<br>-|**2022**<br>**£**<br>544<br>37,937|
||||-|38,481|
||||10,293|116,184|



## **Support Costs** 

Support costs of charitable activities are analysed as follows: 

|Legal and professional fees (see note 5)<br>Consultancy costs<br>Overhead costs|**Raising funds**<br>4,223<br>1,138<br>414|**2023**<br>**Grant**<br>**Education and**<br>**Total**<br>**Programme**<br>**Development**<br>**£**<br>**£**<br>**£**<br>4,223<br>-<br>8,446<br>1,138<br>-<br>2,276<br>414<br>-<br>828<br>5,775<br>-<br>11,550<br>**Charitable activities**|**2023**<br>**Grant**<br>**Education and**<br>**Total**<br>**Programme**<br>**Development**<br>**£**<br>**£**<br>**£**<br>4,223<br>-<br>8,446<br>1,138<br>-<br>2,276<br>414<br>-<br>828<br>5,775<br>-<br>11,550<br>**Charitable activities**|**2023**<br>**Grant**<br>**Education and**<br>**Total**<br>**Programme**<br>**Development**<br>**£**<br>**£**<br>**£**<br>4,223<br>-<br>8,446<br>1,138<br>-<br>2,276<br>414<br>-<br>828<br>5,775<br>-<br>11,550<br>**Charitable activities**|
|---|---|---|---|---|
||5,775|5,775|-|11,550|



Grant award support costs and staff support are provided by the parent charity Street Child. 

|Grant award support costs<br>Legal and professional fees<br>Staff costs (see note 6)<br>Consultancy costs<br>Overhead costs|**2022**<br>**Raising funds**<br>**Grant**<br>**Education and**<br>**Total**<br>**Programme**<br>**Development**<br>**£**<br>**£**<br>**£**<br>1,903<br>425<br>3,086<br>5,414<br>5,845<br>1,305<br>9,479<br>16,629<br>15,643<br>3,493<br>25,372<br>44,507<br>-<br>-<br>-<br>-<br>335<br>75<br>544<br>954<br>**Charitable activities**|
|---|---|
||23,726<br>5,297<br>38,481<br>67,504|



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**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **5 Governance costs** 

Included within legal and professional fees in note 4 are the following costs 

|Audit fees / Independent examination (net of VAT)|**2023**<br>**£**<br>5,400|**2022**<br>**£**<br>6,000|
|---|---|---|



No Trustee received any remuneration for services in this or the prior year. No trustee received reimbursement of expenses this or the prior year. 

|**Staff Costs**<br>Wages and salaries<br>Social Security costs<br>Pension|**2023**<br>**2022**<br>**£**<br>**£**<br>-<br>37,219<br>-<br>9,591<br>-<br>1,687<br>-<br>48,497|
|---|---|



## **6 Staff Costs** 

The average number of employees during the year was none (2022: 1). No employee earned £60,000 per annum or greater in the year (2022: none) 

Key Management Personnel are considered to be the Trustees and the Chief Executive Officer. Total Trustees' remuneration for the year was £nil (2021: £nil). The total remuneration of key management personnel during the year was £nil (2022: £25,339). 

## **7 Taxation** 

The company, being a registered charity, is not liable for corporation tax in respect of its operations for the year. 

|**8**<br>**Debtors**<br>Other debtors<br>**9**<br>**Creditors : Amounts falling due within one year**<br>Amount owing to Parent Company<br>Accruals and deferred income<br>Other Creditors<br>**10**<br>**Unrestricted Funds**<br>**Balance at**<br>**1st April**<br>**2022**<br>**£**<br>General reserve<br>12,661<br>12,661|**2023**<br>**£**<br>-<br>-<br>**2023**<br>**£**<br>21,345<br>5,400<br>9,855<br>36,600<br>**Net Income**<br>**£**<br>25,213<br>25,213|**2022**<br>**£**<br>5,367|
|---|---|---|
|||5,367|
|||**2022**<br>**£**<br>-<br>13,438<br>15,913|
|||29,351|
|||**Balance at**<br>**31 March**<br>**2023**<br>**£**<br>37,874|
|||37,874|



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**BREAD AND WATER FOR AFRICA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023** 

## **11 Restricted Funds** 

|**Restricted Funds**|||||
|---|---|---|---|---|
|Global Forum Yala<br>Emergency Preparedness Appeal<br>Burundi|**Balance at**<br>**1 April**<br>**2022**<br>**£**<br>-<br>-<br>-|**Restricted**<br>**income**<br>**Restricted**<br>**expenditure**<br>**£**<br>**£**<br>19,000<br>(4,311)<br>645<br>-<br>206<br>(206)<br>19,851<br>(4,517)|**Transfers**<br>-<br>-<br>-|**Balance at**<br>**31 March**<br>**2023**<br>**£**<br>14,689<br>645<br>-|
|||||15,334|



Funds for Global Forum Yala were provided from a generous legacy gift. Funds not fully expended in 2022/23 are held for utlisation in 2023/24 finanical year. 

Funds for the Emergecny Preparedness appeal were raised from a mail appeal to BWA supporters. 

|Kamili Foundation, Kenya<br>Web appeal|**Balance at**<br>**1 July 2021**<br>**£**<br>-<br>-<br>-|**Restricted**<br>**income**<br>**Restricted**<br>**expenditure**<br>**£**<br>**£**<br>19,000<br>(19,000)<br>9,827<br>(9,827)<br>28,827<br>(28,827)|**Transfers**<br>-<br>-<br>-|**Balance at**<br>**31 March**<br>**2022**<br>**£**<br>-<br>-|
|---|---|---|---|---|
|||||-|



During the year to March 2022, £19,000 of grants were received specifically to further the work for installation of a water tower and to finish off the building of 3 new classrooms at GFYA in Sierra Leone. All of these restricted funds were spent in the year. A further £9,827 was raised through web appeals, all of which was spent during the year. The web appeal was primarily focussed on mental health and the feeding program. 

## **12 Capital Commitments** 

The charity has no capital commitments as at 31 March 2023 (2022: None). 

## **13 Members' Liability** 

The Charity is a company limited by guarantee.  On the event of winding up, the members' liability is limited to £1. 

## **14 Ultimate Parent Charity** 

The company is a subsidiary of Street Child, a charitable company registered in England and Wales (Company No. 06749574, Charity No. 1128536). 

Copies of group financial statements are available from the registered office of the parent at: 33 Creechurch Lane, London. EC3A 5EB 

20