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2020-12-31-accounts

VILLAGE WATER LIMITED

(A company limited by guarantee)
Report and Financial Statements
for the Year Ended
31 December 2020

Registered charity numbers: 1117377 (England & Wales)
and SCO44129 (Scotland)
Company number 05970344

.

The newly repaired waterpoint in Nhaurunharu, Manica Province, Mozambique

VILLAGE WATER LIMITED

Contents Page
Reference and administrative details 3
Trustees’ Report for the year ending 31 December 2020 4
Structure, governance, management
Vision & ambition
Principal activities
2020 overview
Fundraising & grant making statements
Events after year end
Statement of Trustees’ Responsibilities 9
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cashflows 13
Notes to the Financial Statements 14
Report of the Independent Auditor 23 
Covid materials being handed over in Zambia.

Report and financial statements for the year to 31 December 2020 Page

2 

VILLAGE WATER LIMITED

Reference and administrative details

Village Water is a charitable company limited by guarantee and a registered
charity governed by its Memorandum and Articles of Association.

Company Registration number 05970344.
Charity Registration number 1117377 (England & Wales) and SCO44129 (Scotland).

Principal and Registered Office:

Office C, URC, Coleham Head
Shrewsbury
Shropshire SY3 7BJ
Telephone:   +44 (0) 1743 241563

Website: www.villagewater.org
E-mail: info@villagewater.org

Bankers:

CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent ME19 4JQ

Trustees:

Mr Hugh Woodhouse (Secretary)
Mr Christopher Morley
Mr Richard Pither (retired 15 October 2020)
Mrs Louise Cook
Mr Andrew Picken (Chair)
Mr Geoff Houston
Ms Hilary Nithsdale
Mr Mahir Sahin (resigned 24 April 2020)
Ms Trina Chakravarti
Mr Paul Marston
Ms Sarah-Jane Docherty

Independent Auditor:

Harmer Slater Limited
Statutory Auditor
Salatin House
19 Cedar Road
Sutton
Surrey SM2 5DA

Report and financial statements for the year to 31 December 2020 Page

3 

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020

The Trustees of Village Water present their annual report and audited financial
statements for the year ended 31 December 2020 and confirm that they comply
with the requirements of the Companies’ Act 2006, the Charities’ Act 2001, and
Accounting and Reporting by Charities: Statement of Recommended Practices
applicable to charities preparing their financial statements in accordance with
the Financial Reporting Standard applicable in the UK and Republic of Ireland
(Charities SORP (FRS 102)).

Structure, governance and management

Village Water is a charitable company limited by guarantee incorporated on 18
October 2006 and registered with the Charity Commission on 22 December 2006.
The Memorandum and Articles of Association were revised and approved by the
Board on 14 April 2016.

The charitable company’s Board of Trustees currently comprises nine volunteer
members who are responsible for the strategic direction and policy of the
charitable company. The Board meets four times a year.

Trustees are appointed as required. When considering new Trustees, the position
is advertised on specialist sites. Board members make recommendations on
applicants and selection is by interview.  Newly appointed Trustees receive
induction in Village Water’s background, strategic goals, and financial history.
Each Trustee is encouraged to join one of the sub-committees and given the
opportunity to visit the projects in Africa to better understand the work.

The staff team is led by the director, to whom the Trustees delegate
responsibility for ensuring that the charitable company delivers the services
specified and that strategic targets are met. The director manages a team of
seven, six full-time equivalent, staff including fundraising, monitoring and
evaluation and finance functions.

Vision: Better health, education, and opportunity for everyone, through safe
water and sanitation.

Ambition: To be a catalyst in supporting the systems needed to achieve 100%
water, sanitation and hygiene (WASH) coverage district by district.[1]

Principal activities

Since 2004 Village Water has supported the provision of safe water alongside
hygiene and sanitation promotion in villages, schools, and clinics in rural
Africa, thus improving health, work, and education opportunities for more than
850,000 people.

We work in partnership with local organisations – registered charities and
District Councils to deliver our integrated hygiene, sanitation, and safe water
programme, encouraging long-term behaviour change. Training local people to
service the growing demand for water means technically skilled teams are in the
area, reducing the dependency on external agencies, and ensuring that if a pump
breaks, it can be fixed quickly.

1 Systems Change aims to create sustainable WASH coverage at district, provincial & national levels. This comprises research into current WASH coverage, identifying local structures including councils, public & private companies, supply chains, funders, construction teams, pump minders & communities & donors, & assessing how they interact, who can support which elements & where the gaps remain.

Report and financial statements for the year to 31 December 2020 Page

4

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 (continued)

Principal activities (continued)

Since 2011, we have invested in manual well construction as an alternative to
mechanical drilling or hand digging. A well can be completed in one day, the
technology is safer and cheaper, and the lightweight kit can be used in remote,
cut off areas and unstable soils. In 2020 we successfully trialled the technology
in North Western Province, Zambia, and there is much interest at both government
and private client level for the services of the teams trained.

In 2020 we began to measure the reduction in carbon emissions once communities
no longer need wood to boil their water to make it safe. We repaired 1104 broken
down pumps in Mozambique and Zambia, reducing CO2 emissions by an estimated
413,257 tonnes per year.

We will continue to fill the gap in access to safe water by concentrating our
investment to achieve 100% coverage in specific areas of Zambia and Mozambique
over the coming years.

Public benefit

Working towards achieving the Sustainable Development Goals’ ‘Leave no-one
behind’ concept, the Trustees confirm thatthey have complied with the duty in
the Charities’ Act 2011 and consider that the objects of the charitable company,
the activities outlined in this report and the charitable company’s future plans
have a demonstrable benefit to the public.

Risk Management

The Trustees have overall responsibility for ensuring that the charitable
company has an appropriate system of controls to identify financial and other
risks and to take appropriate measures to manage them. At each quarterly meeting,
the Board reviews its risk matrix, which sets out organisational and programme
risks and actions to mitigate these if appropriate.

2020 overview

Over the year we have reached more than 558,547 people with our work.

Zambia – Western, North Western, Lusaka and Central Provinces

Report and financial statements for the year to 31 December 2020 Page

5 

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 (continued)

Zambia – Western, North Western, Lusaka and Central Provinces (continued)

Mozambique

Income

Our 2020 income increased by 32% on 2019. We continue to attract funding from
a wide range of supporters, new and long term.

Income streams

Individuals (including gift aid) £35,760
Community groups  £30,018
Trusts £193,531
Businesses £725,169
Statutory - Guernsey OA&DC £49,929
Statutory – FCDO formerly DFID £102,633
Total £1,137,040

Key successes include our strengthened partnership with CO2 Balance. We will be
working with them for the next five years on a carbon emissions reduction
programme in Mozambique and Zambia. We also secured our ninth consecutive grant
from Guernsey Overseas Aid and Development Committee (OA&DC).

We thank all our supporters for their generous gifts during the year. We
acknowledge the on-going assistance of The Waterloo Foundation, The Randal
Charitable Foundation, Millichope Foundation and Wilmslow Wells for Africa,
among others, too many to mention.

Expenditure

Expenditure on charitable activities (including governance) was £1,193,205 (a
59% increase on 2019). Unrestricted funds made up 15% (2019: 32%) of income
from donations. This drop reflects the impact of Covid 19 on traditionally
unrestricted income streams including individuals and community groups.  These
streams will be a focus for improvement in 2021.

Expenditure on charitable activities in 2020 was 93p (2019: 88p) in every pound.

Every £1 invested in fund raising brought in £19 (2019: £11).

Report and financial statements for the year to 31 December 2020 Page

6 

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 (continued)

Fundraising Statement

Village Water complies with the regulatory standards for fundraising. We are
registered with the Fundraising Regulator and are committed to the Fundraising
Promise and adherence to the Code of Fundraising Practice. Village Water is an
Organisational Member of the Institute of Fundraising. We are also signed up to
the Fundraising Preference Service to enable individuals to opt out from
receiving fundraising communications from us. We actioned zero requests from
this service last year.

All our income came from fundraising. In 2020 we spent £61,468 (2019: £77,700)
to run our projects.

Our fundraising activities include applications to Trusts, encouraging private
donations, and participation in events – either run by us or by supporters on
our behalf.

We employ a small fundraising team which supports all income generating
initiatives. Village Water does not use third-party suppliers for any
activities.

Our complaints’ policy is publicly available on our website, giving individuals
clear means to complain, even anonymously, about something they are unhappy
with. There were no complaints made in 2020 (2019: none). Our safeguarding
policy is available on demand. All staff are familiar with the procedures and
have signed the organisation’s Code of Conduct.

Grant making statement

Village Water works through local partners in Zambia and Mozambique, with whom
we have Partnership Agreements which define roles, expectations, and obligations
of all parties. Each partner signs a Memorandum of Understanding which details
the specific activities, activity timeline and budget.

When we identify new partners to work with in-country we carry out due diligence
checks including organisational, governance, policies, and financial processes.
For project progress we use a mobile to web monitoring system following activity
timeline milestones. Financial reports are required by an agreed deadline which,
once approved, triggers further transfers made in line with the annual budget.
Directors meet bi-monthly and team members from each partner, including VW,
take part in ‘hubs’ focussing on, but not limited to communications & marketing,
safeguarding, finance and stock control, monitoring, and board support. Staff,
Trustees and occasionally volunteers visit the projects to support local
partners to develop new projects, gather data, marketing materials, and to carry
out ‘follow the money’ finance checks.

Events after the year end

The COVID 19 virus continues to affect our work and income both in the UK and
in Africa where activities have had to be adapted or cancelled due to government
restrictions, limiting what could safely take place. The Village Water team and
Trustees are continually monitoring developments and assessing the risks arising
as a result of the continuing pandemic in the UK and the growing prevalence in
Africa.

Report and financial statements for the year to 31 December 2020 Page

7

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 (continued)

Events after the year end (continued)

These include:

As the situation is developing, it is difficult to fully assess the final impact
of Covid 19 on the organisation. However, both the team and the Trustees remain
confident that they will be able to raise funds and deliver much-needed support
to the communities in Africa for the foreseeable future.

Report and financial statements for the year to 31 December 2020 Page

8 

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 Statement of Trustees’ responsibilities

The Trustees (who are also directors of Village Water Limited for the purposes
of company law) are responsible for preparing the Trustees’ Annual Report and
the financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare accounts for each financial year
which give a true and fair view of the state of affairs of the charitable
company as at the balance sheet date and of its incoming resources and
application of resources, including income and expenditure, for the financial
period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of Village
Water and enable them to ensure that the accounts 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.

This report has been prepared in accordance with the Statement of Recommended
Practice-Accounting and Reporting by Charities (SORP (FRS 102)) and in
accordance with the special provisions of Part VII of the Companies Act 2006
relating to small companies.

Statement as to disclosure to auditors

The Trustees confirm that they have taken all the required steps to acquaint
themselves with any relevant audit information, as defined by Section 418 of
the Companies Act 2006 and to ensure that Village Water’s auditors are aware of
that information.

Going concern

The financial statements are drawn up on the going concern basis which assumes
Village Water will continue in operational existence for the foreseeable future.
The Board has given due consideration to the working capital and cash flow
requirements of Village Water. The Board consider Village Water’s current and
forecast cash resources to be sufficient to cover the working capital
requirements of the charitable company for at least 12 months.

Auditors

Harmer Slater Limited are Village Water’s auditors. A resolution will be put to
the AGM that they be reappointed.

Report and financial statements for the year to 31 December 2020 Page

9

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2020 (continued) Statement of Trustees’ responsibilities

Small companyprovisions

The Trustees' Report has been prepared in accordance with the special provisions
relating to small companies within Part 15 of the Companies Act 2006.

Approved by the Board on 8 April 2021 and signed on their behalf by:

_______________________
Andrew Picken – Chair of Trustees

Page 10 

Report and financial statements for the year to 31 December 2020

VILLAGE WATER LIMITED

Statement of Financial Activities (incorporating an Income and Expenditure account) for the year to 31 December 2020

Note
Incoming Resources
Incoming resources from
generated Funds:
Donations
2
Investment Income:
Bank and Other Interest
3
Total Incoming Resources
Resources Expended
Charitable Activities Zambia
Charitable Activities
Mozambique
Fund raising expenses
Governance
Total resources expended
4
Net income/(expenditure) for
the year before transfers
Transfers between funds
6
Net income/(expenditure) for
the year after transfers
Reserves at 1 January 2020
Reserves at 31 December 2020
Unrestricted
2020
£
Restricted
2020
£
Total
2020
£
Unrestricted
2019
£
Restricted
2019
£
Total
2019
£
168,231
968,809
1,137,040
277,464
583,114
860,578
529
-
529
1,848
-
1,848
168,760
968,809
1,137,569
279,312
583,114
862,426
64,831
519,709
584,540
69,226
230,153
299,379
66,044
511,947
577,991
52,612
375,952
428,564
61,468
-
61,468
77,700
-
77,700
30,675
-
30,675
24,523
-
24,523
223,018
1,031,656
1,254,674
224,061
606,105
830,166
(54,258)
(62,847)
(117,105)
55,251
(22,991)
32,260
( 48,405)
48,405
-
( 7,525)
7,525
-
(102,663)
(14,442)
(117,105)
47,726
(15,466)
32,260
219,673
31,442
251,115
171,947
46,908
218,855
117,010
17,000
134,010
219,673
31,442
251,115

Notes:

All of the above results are derived from continuing activities.

All gains and losses in the year are included above.

The notes on pages 14 to 22 form part of the Financial Statements.

Page 11 

Report and financial statements for the year to 31 December 2020

VILLAGE WATER LIMITED

Balance Sheet (Company no. 05970344) As at 31 December 2020

Note
Non-current Assets
Property, plant and equipment
10
Current Assets
Receivables
11
Cash and cash equivalents
12
Payables: Amounts falling due within one year
13
Net current assets
Net Assets
15
Funds
Unrestricted
16
Restricted
Zambia
16
Mozambique
16		 Total Funds
2020
£
2019
£
915
1,281
3,883
72,639
141,463
185,790
145,346
258,429
( 12,251)
( 8,595)
133,095
249,834
134,010
251,115
117,010
219,673
17,000
31,442
-
-
134,010
251,115		 
The financial statements have been prepared in accordance with the special
provisions relating to small companies within Part 15 of the Companies Act 2006
and Accounting and Reporting by Charities: Statement of Recommended Practice
applicable to charities preparing their financial statements in accordance with
the Financial Reporting Standard applicable in the UK and Republic of Ireland
(FRS 102).

These financial statements were approved and authorised for issue by the Board
on 8 April 2021 and signed on its behalf by:

Andrew Picken – Chair of Trustees

The notes on pages 14 to 22 form part of the Financial Statements

Page 12 

Report and financial statements for the year to 31 December 2020

VILLAGE WATER LIMITED

Statement of Cashflows

for the year to 31 December 2020

Net cash flows from operating activities
Net (expenditure)/income for the year
Adjustments for items not affecting cash flows:
Depreciation of equipment
Bank interest received
Net operating cash flows before reinvestment in
working capital
Decrease/(increase)in receivables
Increase in payables
Net cash flows from operating activities
Net cash flows from investing activities
Purchase of non-current assets
Bank interest received
Cash generated from investing activities
Decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2020
£
2019
£
(117,105)
32,260
865
695
( 529)
( 1,848)
(116,769)
31,107
68,756
( 44,175)
3,656
1,930
( 44,357)
( 11,138)
( 499)
( 1,756)
529
1,848
30
92
( 44,327)
( 11,046)
185,790
196,836
141,463
185,790

Page 13 

Report and financial statements for the year to 31 December 2020

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020

1. Accounting Policies

General information

Village Water is a private charitable company limited by guarantee, incorporated
in England and Wales under Companies’ Act and registered as a charity in England
and Wales (1117377) and Scotland (SCO44129).

The charitable company’s registered office address is shown on page 3. The
nature of the charitable company’s operations and its principal activities are
set out in the Trustees’ Report on pages 4-10.

Village Water meets the definition of a public benefit entity as defined by FRS
102.The principal accounting policies adopted, judgements and key sources of
estimation uncertainty in the preparation of the financial statements are set
out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.

Going Concern

The financial statements are drawn up on the going concern basis which assumes
Village Water will continue in operational existence for the foreseeable future.
The Board has given due consideration to the working capital and cash flow
requirements of Village Water. The Board consider Village Water’s current and
forecast cash resources to be sufficient to cover the working capital
requirements of the charitable company for at least 12 months.

Statement of compliance

The financial statements have been prepared in accordance with Financial
Reporting Standard 102 "The Financial Reporting Standard applicable in the UK
and Republic of Ireland" and Charities Statement of Recommended Practice issued
by the Financial Reporting Council and in accordance with the Companies Act
2006.

Basis of preparation

The financial statements have been prepared using the historical cost
convention.

The functional currency of the charity is considered to be pounds sterling (£)
because that is the currency of the primary economic environment in which it
operates. The financial statements are presented in pounds sterling (£).

Incoming resources

All incoming resources are included in the statement of financial activities
when the charitable company is entitled to the income, it is probable that the
income will be received, and the amount can be measured reliably.

Incoming resources from donations represent voluntary income, which is credited
in the year in which they are received; and investment income, including bank
interest, which is credited in the year in which it is received.

Reserves policy

The trustees acknowledge the need to hold unrestricted reserves equal to a
minimum three month’s UK operating costs in order to:

1. Fulfil any legal obligations should the organisation be obliged to cease activities.

2. Offer short-term security to local partners in Zambia and Mozambique to continue activities in the unlikely event of point 1 happening.

3. Take advantage of such opportunities which may arise requiring rapid and flexible decision making and funding. 

Report and financial statements for the year to 31 December 2020

Page 14 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020

Reserves policy (continued)

The Board remains focussed on the need to balance the level of reserves in the
charity with the effective delivery of the organisation's strategic
objectives.

Resources expended

Expenditure is included on an accrual’s basis inclusive of VAT, which is not
recoverable. Expenditure directly attributable to specific activities has been
allocated to those activities.

Fund structure

The funds held by the charitable company fall into the following categories:

Unrestricted funds - represents donations and other incoming resources
receivable for the object of the charitable company without further specified
purpose and are available as general funds.

Restricted funds – represents funds subject to restrictions on their expenditure
as imposed by the donor.

Property, plant and equipment

Property, plant and equipment is stated in the balance sheet at cost less
subsequent accumulated depreciation and subsequent accumulated impairment
losses.

The cost of property, plant and equipment comprises the purchase price together
with all expenses directly incurred in bringing the asset to its location and
condition ready for use.

Depreciation is charged by annual instalments estimated to write off their cost
less any residual value over the expected useful lives which equate to the
following rates:

Furniture & equipment

33% per annum on straight line

Receivables

Receivables are recognised at settlement amount due. Prepayments are valued at
the amount prepaid net of any discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and bank current account balances
and are subject to insignificant risk of change in value.

Report and financial statements for the year to 31 December 2020 Page

15 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020

Payables

Payables are recognised where the charitable company has a present obligation
resulting from a past event that will probably result in the transfer of funds
to a third party and the amount due to settle the obligation can be measured or
estimated reliably. Payables are normally recognised at their settlement amount.

Financial instruments

The charitable company only has financial assets and financial liabilities of
a kind that qualify as basic financial instruments. Basic financial instruments
are initially recognised at transaction value and subsequently measured at their
settlement value.

Pensions

The charitable company operates a defined contribution pension scheme.
Contributions are recognised in the Statement of Financial Activities in the
period in which they become payable.

2. Donations

. Donations
Community
Corporate
Individuals
Statutory
FCDO
Trusts/Foundations
Total Donations		 Unrestricted
2020
£
Restricted
2020
£
Total
2020
£
Unrestricted
2019
£
Restricted
2019
£
Total
2019
£
17,374
12,644
30,018
6,587
17,048
23,635
72,143
653,026
725,169
15,926
199,680
215,606
32,821
2,939
35,760
176,697
17,644
194,341
-
49,929
49,929
-
39,338
39,338
-
102,633
102,633
-
61,699
61,699

45,893
147,638
193,531
78,254
247,705
325,959
168,231
968,809 1,137,040
277,464
583,114
860,578

3. Interest income

Unrestricted Restricted Total Unrestricted Restricted Total
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Bank interest
receivable		 529 - 529 1,848 - 1,848

Report and financial statements for the year to 31 December 2020 Page

16 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

4. Analysis of Resources Expended

a) Restricted Resources Expended

Village Water raises donations in the UK to support water, sanitation and
hygiene (WASH) activities in Zambia and Mozambique. The monies are remitted to
Village Water Zambia, Empowered Communities Helping Others and WATSAN
Mozambique, all independent NGOs, who carry out our fieldwork programme.
Remittances to Zambia
Supporting partners to deliver water, sanitation &
hygiene
FCDO (formerly DFID)
Direct Expenditure in UK on work in Zambia
Capacity Development
IT, Equipment and Materials
FCDO (formerly DFID)
Remittances to Mozambique
Supporting partners to deliver water, sanitation &
hygiene
Direct Expenditure in UK on work in Mozambique
Total Expenditure		 2020
£
2019
£
423,733
145,994
75,290 65,789
499,023
211,783
325
3,350
1,988
3,645
18,373 11,375
20,686 18,370
511,602
369,059

345
6,893
1,031,656
606,105

b) Unrestricted Resources Expended

The charitable company initially identifies all unrestricted expenditure and
then apportions the cost between four major expenditure categories:

Report and financial statements for the year to 31 December 2020 Page

17 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

4. Analysis of Resources Expended (continued) b) Unrestricted Resources Expended (continued)

The table below outlines unrestricted expenditure, as apportioned between the
four expenditure categories.
Year ended
31 December 2020
Salaries
Training
Travel
Volunteers
Events &
fundraising
Office costs
Insurance
IT expenses
Other governance
costs
Audit fees
Depreciation
Bank charges		 Charitable
Activities
Zambia
Charitable
Activities
Mozambique
Fund Raising
Expenses
Governance
Total
2020
£
£
£
£
£
61,235
62,171
53,296
26,666
203,368
101
109
129
51
390
180
194
229
90
693
10
10
12
5
37
-
-
3,607
-
3,607
1,939
2,089
2,461
970
7,459
198
213
252
99
762
943
1,016
1,197
471
3,627
-
-
-
251
251
-
-
-
1,900
1,900
225
242
285
112
864
-
-
-
60
60
64,831
66,044
61,468
30,675
223,018
Year ended
31 December 2019
Salaries
Training
Travel
Volunteers
Events &
fundraising
Office costs
Insurance
IT expenses
Other governance
costs
Audit fees
Depreciation
Bank charges		 Charitable
Activities
Zambia
Charitable
Activities
Mozambique
Fund Raising
Expenses
Governance
Total
2019
£
£
£
£
£
67,402
50,745
71,233
19,123
208,503
130
130
226
79
565
698
698
1,214
425
3,035
10
10
18
7
45
-
-
3,294
-
3,294
749
784
1,305
424
3,262
146
152
254
82
634
91
93
156
50
390
-
-
-
1,778
1,778
-
-
-
1,800
1,800
-
-
-
695
695
-
-
-
60
60
69,226
52,612
77,700
24,523
224,061		 
Salaries, recruitment, training, travel and volunteers’ costs are apportioned
per capita – i.e. on the number of people employed within an activity.
Events and fundraising, other governance costs, audit fees and bank charges
apportionment is based on usage.

Office costs, insurance and IT expenses apportionment is based on floor area
occupied by an activity.

Report and financial statements for the year to 31 December 2020 Page

18 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

5. Employees and Trustees

The aggregate payroll costs were as follows:
oyees and Trustees
regate payroll costs were as follows:
Salaries
Social security costs
Pension costs		 2020
£
2019
£
196,912
186,893
14,438
13,534
12,294
11,102
223,644
211,529		 
No employee received emoluments above £60,000.
Employee salaries by band: £40,000 to 50,000: 1. £30,000 - £40,000: 3.
£20,000-£30,000: 3.

The average number of employees during the year calculated as full-time
equivalents was 6 (2019: 6)

The Trustees were not paid any remuneration or received any other benefits from
employment with the charitable company in the year (2019: £nil).
No Trustees were paid expenses (2019: 4 Trustees £1,194) for travelling to UK
Trustees’ meetings. No charity Trustee received payment for professional or
other services supplied to the charity (2019: £nil).

6. Transfers

In accordance with a standing Board resolution to support expenditure in Africa
with unrestricted funds and maintain a positive balance on restricted funds,
unrestricted funds of £48,405(2019: £7,525) were transferred to restricted
funds.

7. Movement in funds

Net movement in funds is stated after charging:
Depreciation 2020
£
2019
£
865
695

8. Auditor’s remuneration

. Auditor’s remuneration
Auditor’s remuneration – the audit of charitable company’s
accounts
Auditor’s remuneration – other services		 2020
£
2019
£
1,300
1,200
600
600
1,900
1,800

9. Taxation and charitable status

The Trust is a charitable company within the definition of Section 467
Corporation Tax Act 2010 and is, therefore, able to take advantage of the
exemption given by Section 486 of that Act. Accordingly, there is no Corporation
Tax charge in these financial statements.

Report and financial statements for the year to 31 December 2020 Page

19 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

10. Non-current assets

Furniture & Equipment
Cost
At 1 January
Additions
At 31 December
Depreciation
At 1 January
Charge in the year
At 31 December
Net book value at 31 December
11. Receivables
Gift Aid Recoverable
Pledged Donations
Prepayments		 2020
2019
£
£
6,048
4,292
499
1,756
6,547
6,048
4,767
4,072
865
695
5,632
4,767
915
1,281
2020
£
2019
£
3,529
5,800
-
65,847
354
992
3,883
72,639		 
There were no pledged donation at 31 December 2020; the pledged donations at
31 December 2019 satisfied the recognition criteria stipulated by SORP FRS
102.

12. Cash and cash equivalents

2. Cash and cash equivalents
2020 2019
£ £
Cash at bank 141,416 185,765
Petty cash 47 25
141,463 185,790
3.Payables: amounts falling due within one year
2020 2019
£ £
Other taxes and social security 5,766 4,214
Other payables 6,485 4,381
12,251 8,595

13 . Payables: amounts falling due within one year

14. Pensions scheme

The charitable company operates a defined contribution pension scheme. The
pension cost charge for the period represents contributions payable by the
charitable company to the scheme and amounted to £12,294 (2019: £11,102).

Contributions totalling £2,782 (2019: £2,045) were payable to the scheme at the
end of the year and are included in other payables.

Report and financial statements for the year to 31 December 2020 Page

20

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

15 . Analysis of net assets between funds

Year ended 31 December 2020
Property, plant & equipment
Receivables
Cash at Bank
Payables
Year ended 31 December 2019
Property, plant & equipment
Receivables
Cash at Bank
Payables		 Unrestricted
Restricted
Total
Funds
£
Zambia
£
Mozambique
£
£
915
-
-
915
3,883
3,883
124,463
17,000
-
141,463
(12,251) -
-
(12,251)
117,010
17,000
-
134,010
Unrestricted
Restricted
Total
Funds
£
Zambia
£
Mozambique
£
£
1,281
-
-
1,281
72,639
72,639
154,348
31,442
-
185,790
( 8,595) -
-
( 8,595)
219,673
31,442
-
251,115

16 . Movements in funds

Unrestricted
Property, plant & equipment
Receivables
Cash at Bank
Payables
Total Unrestricted Funds
Restricted
Village Water Zambia
Mozambique
Total Restricted Funds
Total Funds
Unrestricted
Property, plant & equipment
Receivables
Cash at Bank
Payables
Total Unrestricted Funds
Restricted
Village Water Zambia
Mozambique
Total Restricted Funds
Total Funds		 At 1 Jan
2020
£
Incoming
Resources
£
Outgoing
Resources
£
At 31 Dec
2020
£
1,281
499
( 865)
915
72,659
3,883
( 72,659)
3,883
154,328
162,907
(192,772)
124,463
( 8,595)
( 12,251)
8,595
(12,251)
219,673
155,038
(257,701)
117,010
31,442
505,267
(519,709)
17,000
-
375,952
(375,952)
-
31,442
881,219
(895,661)
17,000
251,115
1,036,257
(1,153,362)
134,010
At 1 Jan
2019
£
Incoming
Resources
£
Outgoing
Resources
£
At 31 Dec
2019
£
220
1,756
( 695)
1,281
28,464
72,659
( 28,464)
72,659
149,927
271,786
(267,385)
154,328
( 6,665)
( 8,595)
6,665
( 8,595)
171,946
337,606
(289,879)
219,673
46,909
214,686
(230,153)
31,442
375,952
(375,952)
-
46,909
590,638
(606,105)
31,442
218,855
928,244
(895,984)
251,115

Report and financial statements for the year to 31 December 2020 Page

21 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2020 (continued)

17. Lease Commitments

Operating Leases
The total of future minimum lease payments is as follows:
No later than one year
Between two and five years		 Office premises
2020
2019
£
£
4,200
-
12,250
-
16,450
-

18. Company limited by guarantee

The company is a charitable company limited by guarantee and consequently does
not have share capital. Each of the 9 (2019: 12) members of the charitable
company is liable to contribute £10 towards the assets of the charitable company
in the event of liquidation.

19. Related party transactions

The charitable company works in partnership with independent local charities:
Village Water Zambia and Empowered Communities Helping Others in Zambia –and
WATSAN Mozambique in Mozambique, who share a common purpose.  All partners
receive funding for their charitable objectives from Village Water and from
other donors

During the year, the charitable company remitted£1,010,625(2019: £580,842) to
these partners.

2022. Events after the financial period

In March 2020, the UK, along with many other countries, entered into forced
restrictions related to the spread of Covid 19. The current global situation
continues to bring uncertainties for businesses and individuals as the economy
suffers significant slowdown. The Trustees will continue to review the situation
and its impact on the charitable company’s ability to raise funds and deliver
projects both in the short and long term. The Trustees are of the opinion that
at the time of approval of these financial statements there were no indications
suggesting that the charitable company would not be able to continue as a going
concern in the foreseeable future and have therefore prepared these financial
statements on a going concern basis.

Report and financial statements for the year to 31 December 2020 Page

22 

VILLAGE WATER LIMITED

Report of the Independent Auditors to the Members and Trustees of Village Water Limited

Opinion on financial statements

We have audited the financial statements of Village Water Limited for the year
ended 31 December 2020 which comprise the Statement of Financial Activities
(including income and expenditure account), the Balance Sheet, the Statement of
Cash Flows and the notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including FRS 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland”, (United Kingdom Generally
Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the
financial statements section of our report. We are independent of the charitable
company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the FRC’s Ethical Standard
and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ (who
are also directors of the charitable company for the purpose of the company
law) use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.

Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the charitable company's ability to
continue as a going concern for a period of at least twelve months from when
the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustee’s
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

Report and financial statements for the year to 31 December 2020 Page

23 

VILLAGE WATER LIMITED

Report of the Independent Auditors to the Members and Trustees of Village Water Limited

extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and
its environment obtained in the course of the audit, we have not identified
material misstatements in the Directors’ Report included within the Trustees’
Report.

We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations
2006 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities (set out
on page 9), the Trustees, who are Directors for the purpose of the 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

Report and financial statements for the year to 31 December 2020 Page

24 

VILLAGE WATER LIMITED

Report of the Independent Auditors to the Members and Trustees of Village Water Limited

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

Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

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

Report and financial statements for the year to 31 December 2020 Page

25 

VILLAGE WATER LIMITED

Report of the Independent Auditors to the Members and Trustees of Village Water Limited

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

To address the risk of fraud through management bias and override of controls,
we:

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

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

Material misstatements that arise due to fraud can be harder to detect than
those that arise from error as they may involve deliberate concealment or
collusion.

A further description of our responsibilities is available on the Financial
Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.

Report and financial statements for the year to 31 December 2020 Page

26 

VILLAGE WATER LIMITED

Report of the Independent Auditors to the Members and Trustees of Village Water Limited

Use of the audit report

This report is made solely to the charitable company's members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the
charitable company’s Trustees, as a body, in accordance with Regulation 10 of
the Charities Accounts (Scotland) Regulations 2006. Our audit work has been
undertaken so that we might state to the charitable company's members and
Trustees those matters we are required to state to them in an auditors' report
and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the charitable company,
the charitable company's members as a body and the charitable company’s Trustees
as a body, for our audit work, for this report, or for the opinions we have
formed.

-------------------------------------------

Ransford Agyei-Boamah
Senior Statutory Auditor

for and on behalf of:
HARMER SLATER LIMITED
Chartered Accountants and Statutory Auditors
8 April 2021

Salatin House
19 Cedar Road
Sutton, Surrey
SM2 5DA

Report and financial statements for the year to 31 December 2020 Page

27