Drop4Drop Limited (A ci>mpany limlted by Euardnteel charity No. 1115277 Cornpany No. 05704054 Trustees. Report and Unaudited Accounts 31 Marth 2023 'BCIEH8W* 1511212023 CC•APAAIES HOUSE 813
Drop4Drop Limited Contents Page5 Tru5tees' Annual Report Independent Examiner's Report Statement of Finanual Activities 2to5 Balance Sheet Notes to the Accounts 9t016 Page I
DrOp40p iimlted Trustees Annual Report The trustees. who are also dirertors of the charity forthe purposes of the Companies Act 2(MJ6. present their report with the unaudited financol statements of the charity for the year ended 31 March 2023. REFERENCE AND ADMINISTRATIVE oAlL$ Cornpany No. 05704054 Charlty No. 1115277 Registered Office Ila North Street Portslade Eè.st S.yssex 8N41 IDH Directors and Trustees The Oirectors of the charitable company are its Trustees for the purposes of charity law. The following Dirertors and Trustees Seed during the year- K.L. Barry S.C. Kone¢ki R. Leek L. White Directors of Corporate Trustees S.C. Konecki R.Leek Accountsnts Time Accounts Limited Room 34 8asepoint Business Centre Little High Street Shoreham-by-sea BN43 SEG Page 2
Drop4Drop Llmlted Trustees Annual Report 08JEcfivES AND AcnvmES Objerts ond oims Mission: DROP4DROP believes everyone, everywhere, has the right to clean water. Access to clean water transforms lives, creates opportunittes and lays the foundations for a brighter future. Purpose: DROP4DROP Iforthwith named as'the Charity'l is a pub14c benefit organisation that is committed to providing clean water projects across the globe to communities without attess. • The Charity, based in the United Kingdom, seeks to provide clean drinking bore-we115 across the globe to communities living wtthout access. The Charity's goal is to strategise and implement tools and solutions to alleviate the World Water Crisis The Charity provides grants to in-country organisations to provide w5Eainable clean water solutions, funded by vitsl donations from corporate and private indivKluals. The Charity receives funding and operational support from Life UK Lid (mentioned forthwith as Th.¢ Busine,) to ensure operational costs are absorbed outside the Charity's financial structure. • The Charrty searCheS and implements the advancement of resources and methods to provide clean water to communities living without access to clean water. The Charity utilises partnerships with non-governmentsl organisations in the locations of work and provides grants to outsource physical construLtion of wells. The Chafity's objettives are the lief and assistance of people in developing countries deprived of clean drinking water. In particular atteptin8. administering and redistributing donations from the bottled water and soft drinks industry and investing these donations in water projerts in afferted countries. Public benefit The significant activities undertaken by charity during the year are- •Cirta 76 clean water projert5 construrted. roughly 58.800 people reached. •lmplemented dean water projects in Uganda, across Mpigi Distrirt & Hoima Distrirt and Tamil Nadu. India. •Water fIration projert trials begun for collaboration proiert. •Began work on projects in Senegal. •Worked on collaborative clean water projects wtth a local NGO The Bulindi Chimpanzee and Community Project.. a local NGO founded to help people and chimps co-exist. to build l)orehole wells outside the forest to dissipate the conflict. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefrt guidance published by the Charity Commission for Englènd and Wales. Going concern After making appropriate enquirie5. the Trustees have a reasonable expectation that the company ha5 adequate resoLbrces to continue in operational existence for the foreseeable ftjture. For this reason, they continue to adopt. the Boing concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting polbctes. Page 3
Drop4Drop Limited Trustees Annual Report ACHIEVEMENT5 AND PERFORMANCE Main achievements of the charity are as follows: • C4rca 76 clean water projects constructed, roughly 58.800 people reached. • Implemented clean water projects in Uganda. across Mpigi District"& Hoima District and Tamil Nadu, India. Water filiration projert trials begun for collaboration project. • Began work on projects in Senegal. • Worked on collaboratNe clean water projects with a local NGO The BulindTr Chimpanzee and Community Proje, a local NGO founded to help people and chimps CxiSt. to build borehole wells outside the forest to dissipate the conflict. FINANaAL REVIEW Income for the year showed a good performance. The continued to be a healthy income from the Charity's primary business donor whose donations to the CharTty are based on the volume of customer sales. The remainder of the income was received from other torporate and private donors. The charty receives support from Life UK Ltd. which leaves funds fulty availab for the priorities outlined in Objectives and Activities Policy on reserves The Trustees are responsible for keeping proper accountin8 records that disclose with reasonable accuracy at any time the financial position of the charity and to enab them to ensure that the financial statements comply with the Company Act 26. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention ènd detertion of fraud and other irregularities. The above report has been prepared in accordance wrth the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 21K16 and in attordance with the Charities SORP IFRS 1021- STRUCTURE, GOVERNANCE ANO MANAGEMENT Nature of 8ovefnin8 docyment The company is re8lStered as a charitsble company limited by guarantee and was set up by a Trust deed. The tompany is constituted underthe Articles of Assocbation and is re8lStered charity number 1115277. Recruitment and appointment of twstee In order for a new trustee to be appointed. a meeting should be arranged with the proposed appointment to be outlined and followed as such •The meeting is to be set and objectives set by the Founder: •AII Trustees must be in attendance: •The:Trustee must carefvlly consider the eligibility and appropriateness of the proposed trustee: •A majority vote must be agreed before appointing new Members of the board. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply wtth the Companies Att 21x16. The Trustees are also sPOnsIble for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4
Drop40rop Limited Trustees Annual Report The above report has been prepared in attordante with the provisions applicable to tompanies subjett to the small companies regime as set out in Part 15 of the Companies Art 2LK16 and in accordance with the Charities SORP IFRS 102). Signe(l on behalf of the board K.L. Barry Tr tee 11 k33 Page 5
Drop4Drop Limited Independent Examiner5 Report Independent Examiner's Report tothe trustees of Dffop4p Limit I report to the.charity trustees on my examination of the financial statements of Drop4Drop Limited for the year ended 31 March 2023 vthich comprise the Statement of Financial Activities. the Sumrnary Income and Expenditure Account. the Balance Sheet and the related notes. Responsibilities and bas•$ of rewt A5 the trustees of the charity land also its directors for the purposes of company lawl you are responsible for the preparation of the financial statements in accordance with the requirements ot the Companies Act 2006 I'the 2(K)6 Art. Having satisfied myself that the financial statements of the charity a not qUired to be audited under Part 16 of the 2006 Ad and a eligible for independent examination. I report in respect of my examination of your charity's financial statements as carried out under sertion 145 of the Charities Art 20111'the 2011 Art'l. In carrying oul my examination I have followed the Directions given by the Charty Commission under section 1451Sllbl ol the 2011 Art. Independent examiner's ststement I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination gbving me cause to believe that= • accounting records were not kept in accordance with section 386 of the 26 Act . or the financial statements do not accord with those records: or • the financial statements do not comply with the accounting requirements under sertion 396 of the 2006 Act other than any requirement that the financial statements gNe a 'true and fair. view which is not matter considered as part of an independent examination- or • the financial statements have not been prepared in accordance with the Charities SORP IFRS 1021. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understsnding of the financial statements to ke reached. Mrs Hannah Thatcher, FCA LLB Institute of Chartered Accountants England & Wales Room 34 Basepoint Business Centre Little High Street Shoreham-by-sea BN43 SEG Page 6
Drop4DTOP Limited Statement of Financial Arti¥ities lor the year ended 31 Marth 2023 Unrestricted funds Totalfund5 Total funds 2023 2023 2022 Notes Income and endowments Donation5 and legacies Other 171,074 171.074 163.192 11.467 Total 171,074 171.074 174,659 Expenditure on: Charitable activities Other 239.072 57 239,072 57 103.245 Total 239.129 239.129 103,250 Net 8ains on investments Net lexpendltureifincome Transfers between funds 168.0551 168,0551 71,409 Net lexpenditure)lincorne befve other galnslllossesl 168.0551 168.0551 71,409 Other gains and losses Net rnovement in funds 168,0551 168,0551 71,409 Reconciliation of funds: Total funds brought forward 303.604 303.604 232.195 Total funds carried forward 235,549 235,549 303,604 Page 7
brop4Drap Llmited Balance Sheet at 31 March 2023 Company No. 05704054 2022 Current assets Debtors Cash at bank and in hand io 9,796 296,334 306,130 12.5261 303,604 230,680 238,740 13.1911 235.549 Credlt¢xs: Amount fallrne due within one year Net current assets li Tolal a55ets less current l•abilities 235.549 303,604 Net assets exduding pensi¢)fi asset ry liablllty 235.549 303,604 Tal net assets 235,549 303,604 The funds of the tharity Restrirted funds UnrentIed funds General funds Others 12 12 235.549 263,628 39,976 235.549 303,604 12 Total funds 235,549 303.604 These accounts have been prepared in accordance wtth the special provisions of Part 15 of the Companie5 Act 2006 relating to small companies. For the year ended 31 March 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small compantes. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Art 2006. The trustees acknowledge their responsibilit for complying wrth the requirements of the Companies Act 2006 with respect to accountine records and the preparation of accounts. Approved by the board on 11 De¢wkn 1013 And signed on its behalf by= Barry T.rustee Page 8
Orop4Drop Limited Notes to the Accounts for the year ended 31 March 2023 l Accounting policies Statement of Compliance The financial statements have been ppared in accordance with Accounting and Reporting by Charities-. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Rewblic of Ireland IFRS 1021 (effective I January 20191- (Chartties SORP 2019 IFRS 10211. the Financial Reportire Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Art 2006 and Charities Art 2011. Basls of preparatlon Drop4Drop Ltd meets the definition of a publK benefrt entity under FRS 102. Assets and Liabilities a initially recognised at historical cost or transaction value unless otherwise stsied in the relevant accounting policy notes. Chan8e in basi5 of accountin8 or to previous accounts There has been no change to the accounting policies (valuation rules and method of accountingl since last year and no changes have been made to atcounts for previous years. Fund accounling Unrestricted funds These are available for use at the discretion of the trustees in furthernnce of the general objects of the charity. DesFdnated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation fvnds These are unrestricted fvnds which include a revaluation reserve representin8 the restatement of investment assets at their market values. Restrirted funds These are available for use subject to restrictions imposed by the donor or through terns of an appeal. Income "Recognition of tncome Income is included in the Statement of Financial ActNities ISOFAI when the charity becomes entitled to. and virtually certain to recesve. the income and the amount of the income can be measured with sufficient reliability. Income with related Where income has related expenditure the income and related expenditure is expenditure reporterfgross in the SOFA. Donations and Donations are OgnISed when the charity has been nottfied in writing of both the amount and Settrnent date. In the event that a donation is subject to conditions that require a Ve1 of performante by the charity before the charity is entitled to the funds. the incorne is deferred and not recogntsed until either those conditions are fully met. or the fuifilment of those conditions is wholly within the control of the charity and rt ts probable that these conditions will be fulfilled in the reporting period. legacie5 Page 9
Drop4Drop Lifflited Notes to the Accounts Expenditure Recognition of expenditure All expenditure 15 recognised once there is a legal or constNctive obligation to that expenditure. it is probable settlement is required and the amount tan be measured reliabty. All costs are allocated to the applicable expenditure heading that aggregate similar tosts to that category. Where costs cannot be directly attributed to particular headin85 they have been allocated on a basis consistent with the use of resources. with central staff costs allocated on the basis of time spent. and depreciètion charges allocated on the portion of the asset's use. Other support costs are allotated based on the spread of staff costs. Expendi(ure on raising funds These comprise the costs associated wilh attracting voluntary income, fundraisinE trading costs and investment management costs. Expenditure on Charitable expendtture comprises those costs incurred by the charity in the delivery charitable activities of its activrties and ser¥ites for its beneficiaries. It includes both costs that can be allocated dirertty to such artivities and those costs of an indireot natu n¢cessary to support them. Grants payable All grant expenditu is accounted for on an actual paid basis plu5 an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. Governance costs These include the costs attributable to the charty's compliance wtth constitutional and statutory reqU1Ments, including audiL Strategic management and tru5tees'5 meetings and reirnbur5ed expenses. Other expenditure These are support costs not allocated to a particular activity. Support costs include central functions and have been allocated to artrvity cost categories on a basis consistent with the use of resources. for example. allocating property costs by floor areas. or per capita. staff costs by the time spent and other costs by their usage. Taxation The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a Charitab company for UK corporation tax purposes. Accordingly. the charity is potential exempt from taxation in respect of income or capttsl gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Aci 1992. to the extent that such income or gains are applied exclusrvely to charitable purposes. Trade and other debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effecthve interest method. less provision for impairment. A provision for the impaiment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due accofdin8 to the original terms of the receivables. Accrued income relates to money the charity is due to received in relation to donation5 1 grants byt has vet to be received, and for which an invoice I request for funds has yet to be made to the donor. Page 10
Drop4Dr(w Limited Notes to the Accounts Cash and cash equi¥alents Cash and cash equivalents comprise cash on hand and tall deposits. and other short-term highly liquid investments that are readily convertible to a known amount of cash and a subject to an insignrfKant risk of change in value. Trade and other creditors Trade creditors are obligations to pay for goods or serv$ that have been acquired in the ordinary course of business trom suppliers. Accounts payable are classTf*d as current liabilities if the charity does noi have an unconditional right, at the end of the reportin8 period. to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twefve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initialEy at the transaction prKe and subsequently measured at amorti5ed t05t using the effective interest method. Pension costs The charity operates a defined contribution plaft for its employees. A defined contribution plan is pension plan under which the company pays fixed contributions into a separate entty. Once the contributions have been paid the company has no further payments obligations. The tontributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. Fund structure Unrestricted income funds are general fvnds that are available for use at the trustees discretion in furtherance of the objertives of the charity. Financial instruments Classification Financial assets and finanaal liabilities are recognised when the charity becomes a party to the contractual provisbons of the instrument. Financial liabilities and equity instruments are tlassified according to the substance of the contractual rrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charily after dedurting all of its liabilities. Goin8 concenb The trustees consider ihat the are no material uncertainties about the charity's ability to continue as a going concem nor any signrfTrnt areas of.uncertainty that affect the carrying value of assets held by the charity. Exemption from preparing a cash Ilow statement The charity hs exempt from preparation of a cash flow statement. Page 11
Orop4Drop Llmited Notes to the Accounts Z Charity status The charity is incorporated in England and Wa5 and is limited by guarantee and consequently does not have share capttal. Eath of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the ent of liquidation. The charrty is incorporated in England and Wales. The address of its registered office is- Ila North Street Portslade East Sussex BN41 IDH 3 Slaternent of Financial Arti¥ities- prior year Vnrestrirted funds Totsl fvnds 2022 2022 Income and endowments from: Donations and legac5 Other 163.192 11,467 163,192 11.467 Total 174.659 174,659 Expenditure on: Charitable artNitres 103.245 103.245 Other Totsl 103.250 103,250 Net income 71,409 71,409 Net income before other gainslllossesl Other gains and losses: 71.409 71,409 Net movement in funds 71.409 71,409 Reconciliation of funds: Total funds bro¥Jght forward ToLIl funds carried forward 232.195 232.195 303,604 303,604 4 Income frorn donati¢)ns and legaues Unrestricted Total Total 2023 2022 Charity incoming resources Iprojectsl 171,074 171,074 163,192 171,074 171.074 163,192 fjrants reteived are unrestricted but are to be.used by the charity in furtherènts of its mission and to be provided to CIplent institutions to be used for the purposes of clean water projects. Page 12
Drop4ttrop Umlted Notes to the Accounts S Other income Total Total 2023 2022 Furlough income IHMRCI 11,467 11,467 6 Expenditure on tharitsble arti¥ities UnrestrKted Total 2023 Total 2022 Expenditure on chGritoble octivities Grants made 162.126 162,126 62,423 Governonce costs Allocated support cost- wa8es & salaries Allocated support cost-Nl & tax 63.347 63.347 35,387 1,701 1,701 Allocated support cost-pension oiher governance cost 1.417 1.417 7.25 10.481 10.481 4.710 239,072 239,072 103.245 7 Analysis of gTrnts Gfants to Activity or programme Institutions Total Total 2023 2022 Clean water project in India Clean water project in Uganda 116.472 116,472 56,859 45.654 45,654 5,564 162,126 162,126 Grants for clean water projects in Tamil Nadu. India were paid out to the following organisations. New Entity of Welfare Society INEWSI. Grants for clean water projects in the Hoima District. Uzanda and Mpigi DistricL Uganda were paid out to tme following organisations. Kituntu Women's A550ciation The provision of grants to such institutes are unrestricted but are to be used for the purpose of clean water projects. Page 13
Drop4Drop Llmlted Notes to the Accounts 8 oiher expenditure Unrestricted Total Total 2023 2022 8ank charges 57 57 57 57 9 Stiff costs 2023 1.417 1,417 2022 Pension costs 725 725 No employee received emoluments in ex$5 of £60.CrfXI. The average rnOnth number of full time equNalent employees during the year was as follows.. 20Z3 2022 Number Number 10 Debtors 2013 2022 Prepayments and accnjed income 8,060. 8,060 9,796 9,796 11 Creditors: amounts falling due within one year 2023 2022 Trade creditors Other taxes and social security Other creditors Accru315 106 78 1.058 225 776 172 1.802 3.191 1.500 2.526 Page 14
Drop4Drop Llmlted Notes to the Accounts 12 Movement in funds Incomlng At31 March 2023 lindudln8 At I April other 2012 pinsllow) Resources expended Gross transfers Restrirted funds". Unrestricted lunds: General funds 263,628 171,074 1239,1291 39.976 235.549 Designated funds: Other reserves 39.976 139,9761 Totol 39.976 139,9761 Tt)tsl lunds 303.604 171,074 1239,1291 235,549 During the year other reserves comprising fvrlough income receive during the Co¥id-19 pandemic was transferred to general reserve available for use by the charity. Previous year At31 At l April 2021 Incoming Resources resources experHled March 2022 Unrestricted funds: General funds 203.686 28,509 163.192 11,467 1103.250) 263.628 39,976 Other reserves 232,195 174,659 1103.2501 303,604 13 Analysis of net assets between funds Unrestricted Total lunds Current assets Current liabilities Total net assets 238,740 13.1911 235.549 238,740 13,1911 235.549 At31 Unrestricted fvnds March 14 2022 Current assets Current liabilities 306,130 12,5261 303,604 306,130 12,5261 303,604 Total net assets Page 15
Drop4Drop Llmlted Notes to the Accounts 15 Reconciliation of net debt At31 March 2023 At IApril 2022 Cash Ilows Cash and cash equivalents 296,334 296,334 165.6541 165.6541 230,680 230.680 Net debt 296.334 165,6541 230,680 16 Commitments Pension commitments 2023 2022 The pension cost charge to the company amounted to: 1.417 725 Unpaid contributions due to the fund are included in other creditors and amounted to: 225 172 17 Relaied party disclosures 2023 202Z Tron5othons wlth relatedpqrties Name of reloted party K.L. Barry Description of relotionship between the porties Descriptton of transartion Trurtee of the charity is also director of UK ond oenerul amounts company. Life UK b"mited. Durin8 the year. involved charity received charitable dDnatK•n of Amount duefrom/fto) the relotedpoty Trustee 77,470 81,609 Nome of rèlatedporty De5CflPtion of relotionship between the porties S.C. Konecki Trustee Trustee of the charity is also director of UK company, Life UK Limited and Fartory 21 Limited. During the year. charity reIVed charitable donation of Amount duefrom/ltoJ the relotedpoty Controlling porty Description of tn7nsartion und generol omounts involved 77.7C(I 81.609 The company is limited by guarantee and has no share capital.. thus no sinere party controls the company. Page 16