Drop4Drop Llmlted (A company Ilrnfted by guarantee) Charfty No. 1115277 Company No. 05704054 Truste Report and Unaudlted Accounts 31 Tch 2024
Drop4Drop Limited Pages 2to4 Trustees, Annual Report Independent Examinerfs Report Statement of Financial Activities Balance Sheet Notes to the Accounts 8t015 Page I
Drop4Drop Llrnlted Trustees Annual Report The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2024. REFERENCE AND ADMINISTRATIVE DEfAILS Company No. 05704054 Charlty No. 1115277 Registered Office Unit 21 Mackley Industrial Estate Small Dole Henfield BN5 9XR Dlrectors and Trustees The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year.. K.L. Barry S.C. Koneckl R. Leek L. White Dlrectors of Corporate Trustees S.C. Konecki R.Leek Accountants rime Accounts Limited Room 34 Basepoint Business Centre Llttle High Street Shoreham-by-sea BN43 SEG Page 2
Drop4Drop Llmlted Trustees Annual Report srRucfuRE. GOVERNANCE AND MANAGEMEKr Nature of governing document The company is registered as a tharitsble company limited by guarantee and was set up by a Trust deed. The company is constituted under the Artides of Association and is registered charity number 1115277. Recrultment and appolntment of trustee •The meeting is to be set and objectives set by the Founder. •AII Trustees must be in attendance: •The Trustee must carefully consider the eligibility and appropriateness of the proposed trustee. •A majorlty vote must be agreed before appointing new members of the board. OBJECTIVES AND AcnvmES Objerts ond alms Mlsslon; DROP4DROP believes everyone. everywhere, has the rtht to clean water. Access to clean water transforms lives, creates opportunities and lays the foundattons for a brighter fvture. Purpose: DROP4DROP (forthwith named as 'the a)arttV) Is a publlc benefft organlsatlon that Is commltted to providing clean water projects auoss the globe to communities without acces . The Charlty, based In the United Kin8dom, seeks to provlde clean drfnklng bore-wells across the 8lobe to communltles Ilvlng wlthout access. The Charity's goal Is to strategtse and Implement tools and solutlons to allevlate the World Water Crlsis • The Charity provldes grants to In-country organlsatlons to provlde sustainable clean water solutlons, funded by vital donations from corporats and prlvate Indlvlduals. . The Charity recelves funding and operational support from Life UK Ltd (mentloned forthwlth as The Buslness,) to ensure operatlonal costs are absorbed outside the Charity's financial structure. . The Charlty researches and implements the advancement of resources and methods to provide clean water to communlt*s living without access to clean water. • The Charlty utlllses partnerships with non-governmental organisatlons In the locatlons of work and provides grants to outsource physical constructlon of wells. The Charity's objectlves are the rellef and asslstance of people in developin8 countries deprived of dean drinkin8 water. In particular acceptin& admlnlsterlng and redlstrilxrting donations from the bottled water and soft drinks industry and investin8 these donations in water projects in affected countries. Public benefrt The significant activities undertaken by charity during the year are: •Clrca 48 clean water projects construtted, roughly 24,000 people reached. •lmplemented clean water projects in Uganda. across Mpigi District & Hoima Distri¢ Zambia. Kenya and Tamil Nadu. India. •Began work on projects In Kenya and Zambia. •Contlnued work on developin8 our carbon offsetting programme in Uganda. Page 3
Drop4Drap Llmlted Trustees Annual Report 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 benefit guidan publlshed by the Charity Commission for England and Wales. Going concern After making approprlate enqulries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regardlng the adoption of the going concern basis can be found in the accounting policies. ACHIEVEMENTS AND PERFORMANCE Maln achlevements of the charlty are as foll0v. •Clrca 48 clean water projects constructed, roughly 24,000 people reached. •lmplemented clean water projects in Uganda, across Mpigi District & Hoima District. Zambia. Kenya and Tamll Nadu, India. •8egan work on projects in Kenya and Zambla. •Continued work on developing our carbon offsetting programme in Uganda. FINANCIAL REVIEW The charlty continues its SUPPOrt to ongolng projects. Expendlture Is Incurred In furtherance of the charlty priorities as outllned In its Objectives and Activities. The char5ty has significant reserves which the Trustees c105ely monitor. Policy on reserves The charity will ensure there are always funds available for prior5ties and will analyse all commltments to ensure efficiency without overspend. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial posltion of the charlty and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable step5 for the prevention and detectlon of fraud and other irregularlties. The above report has been prepared in accordance wlth the provislons applicable to companies subject to the small companies regime as set out In Part 15 of the Companies Act 2006 and in accordance with the Charltles SORP (FRS 1021. Signed on behalf of the board K.L. Barry Trustee Page 4
Drop4Drop Llmited Independent Examlners Report Independent Examiner's Report to the trustees of Drop4Drop Umlted I report to the charity trustees on my examination of the financial statements of Drop4Drop Limited for the vear ended 31 March 2023 which comprise the Ststement of Financial Activities. the Summary Income and Expenditure Account, the Balance Sheet and the related notes. Responslbllltles and bas15 of report As the charity's trustees of the company land also Its dlrectors for the purposes of company law) you are responslble for the preparatlon of the financial statements in accordan wlth the requirements of the Companles Act 2006 l*he 2006 Act. Having satisfled myself that the financial statements of the Charity are not required to be audSted under Part 16 of the 2006 Art and are eligible for Independent examlnatlon, I report In respect of my examination of your charity's flnancial ststements as carrled out under section 145 of the Charities Act 2011 ('the 2011 Act,). In carrylng OLrt my examSnation I have followed the Dlrertlons glven by the Charlty Commlsslon under sectlon 145{5) (bl of the 2011 Act. Independent examlner's statement I have completed my examlnatlon. I can conflrm that no materlal matters have come to my attentlon in connectlon wlth the examlnatlon glvlng me cause to belleve: accountlng records were not kept In accordance wlth sectlon 386 of the 2006 Act . or the flnancial statements do not accord with those records; or the financlal statements do not comply with the accounting requirements under sertlon 396 of the 2006 Art other than any requlrement that the financial statements 8lve a 'true and falr, vlew whlch Is not a matter consldered as part of an Independent examlnatlon; or the flnancial statements have not been prepared In accordance wlth the methods and prlnclples of the Statement of Recommended PractSce for accountlng and reportlng by charltles appllcable to charltles preparing thelr accounts In accordance wlth the Financial Reporting Standard applicable in the UK and Republlc of Ireland (FRS 102). I have no concerns and have come across no other matters In connectlon wlth the examlnatlon to which attentlon Should be drawn in this report In order to enable a proper understandin8 of the flnanclal statements to be reached. Mrs Hannah Thatcher, FCA LLB InstStute of Chartered Accountants England & Wales Time Accounts Limited Room 34 Basepolnt 8uslness Centre Little High Street Shoreham-by-sea BN43 SEG Page 5
Drop4Drop Llmlted Statement of Flnanclal Actfvltles for the year ended 31 Marth 2024 Unrestrirted funds Total funds Totsl fvnds 2024 2024 2023 Notes Income and endowments Donations and legacies 83.642 83,642 171,074 Total 83,642 83.642 171,074 Expendlture on: Charitsble activities Other 149,468 68 149,468 239,072 57 Total 149.536 149,536 239,129 Net gains on investments Net expendlture Transfers between fvnds {65,894) {65,8941 168,055) Net expendlture before other sain51{105ses) (65,894) (65,894) {68,055) other galns and1055e5 Net movement in fvnds (65,8941 (65,894) 168,055) Reconclllatlon of funds: Total funds brought forward 235,549 235,549 303,604 Total funds carrfed forward 169.655 169.655 235,549 Page 6
Drop4Drop Llmlted Balan Sheet at 31 March 2024 Company No. 05704054 Notes 2024 2023 Current assets Debtors Cash at bank and in hand 21,785 150,580 172,365 12,710) 169.655 8,060 230,680 238,740 {3,191) 235,549 235,549 235,549 Credltors: Amount falling due wlthln one year Net current assets 10 Total assets less current Ilabllltles 169,655 Net assets ex¢ludln8 penslon asset or Ilablllty 169,655 Total net assets 169.655 235,549 The lunds of the charfty Unrestrlcted funds General funds 11 169,655 235,549 169,655 235,549 Total funds 169,655 235,549 These accounts have been prepared In accordance wlth the speclal provlslons of Part IS of the Companles Act 2006 relatln8 to small companSes. For the year ended 31 March 2024 the company was entltled to exemptlon under see£lon 477 of the Companles Act 2006 relating to small companles. The members have not requ5red the company to obtsln an audlt In accordance wlth sectlon 476 of the CompanSes Act 2006. The dirertors acknowledge theSr responslbllltles for complylng wlth the requlrements of the Companles Act 2006 wlth respect to accountSng records and the preparatlon of accounts. Approved by the board on 31 March 2024 And slgned on fts behalf by: K.L. Barry Trustee Page7
Drop4Drop Limited Notes to the Accounts for the year Lsnded 31 March 2024 l Accountlng polldes Statement of Compliance The financial statements have been prepared in accordan with Accounting and Reporting by Charltles: 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) (effertive l January 2019) - (Charltles SORP {FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) and the Companies Act 2006 and Charities Act 2011. Bas15 of preparatlon Drop4Drop Ltd meets the definition of a public benefft entity under FRS 102. Awts and Liabilities are initially reco8nised at historical cost or transaction value unless otherwise stated in the relevant accountlng pollcy notes. Change In basls of accountlng or to prevlous accounts There has been no change to the accounting policies (valuation rules and method of accountln8) slnce last year and no chan8es have been made to accounts for prevlous years. Fund accountlng Unrestrlcted funds These are available for use at the dtscretlon of the trustees in furtherance of the general objects of the charlty. These are unrestricted funds eamiarked by the trustees for particular purposes. These are unrestricted funds whith include a revaluatlon reserve representing the restatement of investment assets at their market values. These are available for use subject to restrlctlons Imposed by the donor or through terms of an appeal. Deslgnated funds Revaluatlon funds Restrlcted funds Income Recognitlon of Income Income Is included in the Statement of Financial Artfvltles {SoFA) when the charity becomes entitled to, and virtually certain to receive, the Income and the amount of the income can be measured wlth sufficient reliability. Income with related Where income has related expenditure the income and related expendlture Is expenditure reported gross In the SOF Donations and legacles Voluntary income received by way of 8rants. donations and gffts Is Included in the the SOFA when recelvable and only when the Charity has unconditional entitlement to the income. Page 8
Drop4Drop Llmlted Notes to the Accounts Expenditure Recognition of expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliabty. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resour. with ntral stsff costs allocated on the basis of time spent. and depreaation charges allocated on the portion of the asset's use. Other support costs are allocated based on the Spad of staff costs. Expendlture on These comprlse the costs associated wlth attracting voluntsry income, raising funds fundraising tradin8 costs and investment management costs. Expenditure on Charitable expenditure comprises those costs incurred by the charity in the charitable artivitie5 delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activit*s and those costs of an indirect nature necessary to support them. All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. These include the costs attributable to the charity's compliance with constitutional and statutory requirements. including audiL strategic management and trustees's meetings and reimbursed expenses. These are support costs not allocated to a particular activity. Support costs include central functions and have been allocated to actNity 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. Grants payable Governance costs Other expenditure Taxallon 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 charitable company for UK corporation tax purposes. Accordingly. the charity is potentially exempt from taxation in respect of income or capital gains ceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to charitsble purposes. Trade and other debtors Trade debtors are amounts due from customers for merchandise sold or services perfomied in the ordinary course of busine55. Trade debtors are recognised initially at the transattion price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairnient of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. Accrued income relates to money the charity is due to received in relatbon to donations / grants but has yet to be received. and for whith an Invol / request for funds has yet to be made to the donor. Page 9
Drop4Drop Llrnlted Notes to the Accounts Cash and o5h equivalents Cash and cash equ¢valents comprise cash on hand and call deposits. and other short-terni highly liquid investments that are readity convertible to a known amount of cash and are subject to an insignificant risk of change in value. Trade and other creditors Trade credltors are obl¥ations to pay for goods or serytces that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right. at the end of the reporting 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 twelve months after the reporting date. they are presented as non-current Ilabilities. Trade creditors are recognised initialty at the transactlon prlce and subsequently measured at amortised cost Uslng the effertlve Interest method. Penslon costs The charity operates a deflned contrlbution plan for its employees. A deflned contrlbutlon plan Is penslon plan under which the company pays fixed contributions into a separate entity. Once the contrlbutlons have been paid the company has no further payments obligations. The contrlbutlons 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 bndependently admlnistered funds. Fund structure Unrestricted income funds are general fvnds that are avallable for use at the trustees discretlon in rtherance of the objectwes of the charity. Flnandal Instruments aosslflcatlon Financial assets and financlal Ilabllltles are recogntsed when the charity becomes a party to the contractual provlslons of the instrument. Flnancial liabilities and equity instruments are classified accordin8 to the substsnce of the contractual arrangements entered into. An equity instrument is any contratt that eviden$ a resldual Inte5t in the assets of the charity after deducting all of its liabilities. Goln8 concern The trustees consider that there are no material unrtaIntleS about the charity's ability to contlnue as a going concern nor any slgnificant areas of uncertainty that affect the carryin8 value of assets held by the charlty. Exemptlon from preparfng a cash flow statement The charity is exempt from preparation of a cash fiow statemenL Page 10
Drop4Drop Limited Notes to the Accounts 2 thaiity ststus The charity is Incorporated in England and Wales and is limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The charity is incorporated in England and Wales. The address of its registered Offi is: Unit 21 Mackley Industrial Estate Small Dole Henfield BN5 9XR 3 Statement of Fjnancial Activities- prior year Unrestricted funds Total funds 2023 2023 Income and endowments from: Donations and legacies Total 171.074 171,074 171,074 171,074 Expendlture on: Charitable activities 239,072 57 239,072 57 Other Total 239.129 239,129 Net incorne (68,055) 168,055) Net Income before other galns/{losses) Other galns and losses: Net movement In funds 168,055) {68,055) {68,0551 (68,055) Reconciliatlon of fvnds: Total funds brought forward Total funds carried forward 303.604 303,604 235,549 235,549 4 Income from donatlons and legades Unrestrlcted Total Total 2024 2023 Charity incoming resources (projects) 83,642 83.642 171,074 83,642 83.642 171,074 Grants received are unrestricted but are to be used by the charity in furtherance of its mission and to be provided to recipient institutions to be used for the purposes of clean water projects. Page 11
Drop4Drop Limited Notes to the Accounts 5 Expendlture on tharitable actlvltles Unrestrfcted Totsl 2024 Total 2023 Expenditure on charitable activities Small costs {Projects) Grants made 258 258 88,104 88,104 162.126 Governonce costs Allocated support cost- wages & salaries Allocatsd support cost-Nl & tax Allocatsd support cost-pension Other governan cost 46,636 46,636 63,347 1,701 1,013 1,013 1,417 13,457 149,468 13,457 149,468 10,481 239,072 6 Anatysis of grants Artivity or programme Total 2024 Total 2023 Clean water project in Indla Clean water project in Uganda Clean water project in Zambia 27,914 116.472 43,577 45,654 8,960 Clean water project in Kenya 7,653 88,104 162,126 Grants forclean water projects in Tamil Nadu, Indla were pald out to the following organisations- RCLWA- Rural Christian Lepers Welfare Association. Grants for clean water projects in the Hoima Distrirt, Uganda and Mpigi District, Uganda were paid out to the followlng organisat5ons- Kituntu Women's Association Grants for clean water projects in Kenya were paid out to the following organisation - Well Boring Grants for clean water projects In Zambla were pald out to the followlng organlsatlon - Vlllage Water Zambia. The provision of grants to suth Instltutes are unrestrlcted but are to be used for the purpose of clean water projects. Page 12
Drop40rop Llmlted Notes to the Accounts 7 Other expendlture Unrestricted Total Total 2024 2023 General administrative costs 68 68 57 68 68 57 8 Staff costs 2024 2023 Pension costs 1.013 1.013 1,417 1,417 No employee reiVed emoluments in excess of £60.000. The average monthly number of full time equivalent employees during the year was as follows: 2024 Number 2023 Number 9 Debtors 2024 2023 Trade debtors Prepayments and accrued income 21,785 8.060 8,060 21,785 10 Credltors: amounts falling due within one year 2024 2023 Trade creditors Other taxes and social security Other creditors Accruals 160 106 1,058 225 1,802 3,191 657 225 1,668 2,710 Page 13
Drop4Drop Limited Notss to the Accounts 11 Movement in funds Incomlng (includlng At l Aprfl other 2023 8alns/1¢Sj Resources expended At 31 March 2024 Unrestrlcted funds: General funds 235549 83.642 1149,536) 169,655 Total funds 235.549 83,642 (149.536) 169,655 Prevlous year Incomlnz Ilndudin8 At l Aprfl other 2022 galnsllosses) Gross At 31 March transfer 2023 expended Unrestrfcted fund5: General funds Deslgnated funds: Other reserves Total 263.628 171,074 (239,129) 39,976 235,549 39,976 39,976 (39.976) (39,976) Total funds 303,604 171.074 (239,129) 235,549 ReseNes comprlslng furlough Income recelve durfn8 the Covid-19 pandemic were transferred to general reserve available for use by the charity. 12 Analysls of net assets between fvnds Unrestrlcted funds Total Current assets Current liabilities Total net assets 172,365 {2,710) 169,655 172,365 12,710) 169,655 Unrestricted At 31 March funds 2023 Current assets Current liabilities Total net a55ets 238,740 {3,191) 235,549 238,740 13,191} 235,549 Page 14
Drop40rop Limited Notes to the Accounts 13 Reconciliation of net debt At 31 March 2024 At l April 2023 Cash flows Cash and cash equivalents 230,680 230.680 180,1001 (80,100} 150,580 150.580 Net debt 230,680 (80,1001 150,580 14 Comrnitments Penslon commlknents 2024 2023 The pension cost charge to the company amounted to: 1,013 1,417 Unpaid contributions due to the fund are included in other creditors and amounted to: 225 225 15 Related party disdosures 2024 2023 Tmnsartlons wfth relatedparties Name of related party K.L Barry Description of relotionship between the porties Description of transoction Trustee of the charity is also dirertor of UK and general amounts company. LFfe UK Limited. During the year. involved charity received dlaritsble donation of Amount duefrom/(toJ the lOted porty Triistee 7.872 77.470 Nome of reloted party Descnption of relotionship between the porties S.C. Konecki Trustee Trustee of the charity is also director of UK Description of tronsocts'on company• Life UK Limited and Factory 21 ond geneml amounts Limited. During the year, charity received involved charitable donation of Amount duefrom/{to} the relatedporty Controlllng party The company is limited by guarantee and has no share capitsl: thus no single party controls the company. 7.872 77,700 Page 15