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2022-12-31-accounts

VILLAGE WATER LIMITED

VILLAGE WATER LIMITED

(A company limited by guarantee)
Report and Financial Statements for the Year
Ended 31 December 2022

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

Women from Carvalho, Mozambique, celebrate the water flowing once again at their waterpoint!

VILLAGE WATER LIMITED

Contents

Page

Reference and administrative details 3
Trustees' Report for the year ending 31 December 2022 4
• Structure, governance, management
• Vision & ambition
• Principal activities
• 2022 overview
• Fundraising & grant making statements
• Events after year end
Statement of Trustees' Responsibilities 8
Statement of Financial Activities 10
Balance Sheet 11
Statement of Cashflows 12
Notes to the Financial Statements 13
Report of the Independent Auditor 23 
Stanley, dreams of being an area pump minder to help his community and others like it keep the water
running.

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:

Room C, URC Offices
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)(retired 20.04.2023)
Mr Christopher Morley
Mrs Louise Cook
Mr Andrew Picken (Chair)
Mr Geoff Houston (retired 31.12.2022)
Ms Hilary Nithsdale (retired 31.12.2022)
Ms Trina Chakravarti
Mr Paul Marston
Ms Sarah-Jane Docherty
Mr Steven Andre (appointed 20.01.2023)
Mr Martyn Anwyl (appointed 20.01.2023)
Ms Zara Prabhu (appointed 20.01.2023)

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 2022 Page 3

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2022

The Trustees of Village Water present their annual report and audited financial
statements for the year ended 31 December 2022 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 compliance
activities of the charitable company. The Board meets four times a year. Board
Management and Finance and Risk Committees meet regularly.

Trustees are appointed as required. When considering new Trustees, the Board will
carry out a gap analysis before advertising the position on specialist sites.
The Board Management Committee will make recommendations on applicants
selection is by interview. Newly appointed Trustees receive induction in Village
Water's background, strategic goals, and financial history. Trustees are expected
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
eight staff including fundraising, monitoring and finance functions.

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

Principal activities

Since our foundation in 2004, we have focused on water, sanitation and hygiene
(WASH) support in villages, schools and clinics in Zambia and Mozambique,
reaching nearly 1.4 million people through installation or rehabilitation of
water points. This work has directly led to improvements in health through
significant reductions in cases of diarrhoea and other water borne disease, in
turn providing families greater chances to earn a living, and for their
children to stay in school.

One of the key ways we do this is to invest in support and build the resilience
of our local partners who are independent, specialist WASH organisations.

Our developmental model is System's Strengthening. Rather than supporting WASH
across a scattered geographical area, we have moved towards a more focussed
approach investing in a smaller number of districts, supporting the building
blocks to work towards sustainable 100% WASH coverage.

This involves working closely with district staff to map existing services,
identify local structures such as companies, supply chains, funders and
trainers to assess the gaps in services and to develop a realistic budget to
reach full coverage, including on-going maintenance, monitoring and support.
These activities set the foundations of a District Wide Plan (DWP), that can be
used by the councils to apply for funding and provide evidence of progress towards
100% WASH services.

Report and financial statements for the year to 31 December 2022 Page 4 

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2022

Principal activities (continued)

We have been measuring carbon emissions reductions in our projects in Zambia
and Mozambique since 2019. Communities no longer need wood to boil their water
to make it safe. On average, across our projects, CO2 emissions fall by an
estimated 395 tonnes per village each year.

We are scaling up investment in the District Wide Plan (DWP) approach and have
added another district in Zambia this year. We aim to help ensure
sustainability and 100% coverage of water, hygiene, and sanitation (WASH) in
the districts we work in.

Public benefit

Working towards achieving the Sustainable Development Goals' concept 'Leave
no-one behind,’ the Trustees confirm that they 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. The Finance and Risk
Committee carries out on-going reviews of the risk matrix to present to the
Board at each quarterly meeting. This sets out organisational and programme
risks and actions to mitigate these if appropriate.

2022 overview

Over the year we have reached more than 367,103 people with our work in two
provinces of Zambia, Western and Central, and in Manica Province in Mozambique.

Income

Our 2022 income increased by 92% on 2021. The increase was largely down to
two factors; firstly, we scaled up our carbon emission project with our
corporate partner, secondly, we kindly were gifted a large legacy from EJ Spice
Charitable Trust. We continue to attract funding from a wide range of
supporters, new and long term.

Income streams

Individuals (including gift aid) £92,645
Community groups £2,664
Trusts £449,618
Businesses £1,704,653
Statutory £44,184
Gift aid£7,282
Total£2,301,046

Report and financial statements for the year to 31 December 2022 Page 5 

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2022

Key successes include further strengthened partnership with CO2 Balance
and once again increasing the number of rehabilitated boreholes repaired
during the year. Conducting a baseline in another district in Zambia to lay
the foundationsto achieve 100% WASH by 2030 in Mumbwa, Zambia.

We thank those who make regular gifts - your support gives us the security to
plan ahead. We could not continue to grow our impact without the many generous
donations from individuals, community groups and trusts during the year. We
acknowledge among others, too numerous to mention, E J Spice Charitable Trust,
The Waterloo Foundation, Wilmslow Wells for Africa, Guernsey Overseas Aid and
Development Committee (OA&DC), The Randal Charitable Foundation,
Christadelphian Meal a Day Fund, and The Peter Stebbings Memorial Charity.

Expenditure

Expenditure on charitable activities (including governance) was £1,975,025.
Unrestricted funds made up 69% (2021: 68%) of our income. Income from Trusts
and Foundations significantly bounced back after challenges in 2020 and 2021
due to the global pandemic. We are excited to continue to scale our
partnerships with corporates to further grow and expand operations.

Expenditure on charitable activities in 2022 was 94p (2021: 91p) in every
pound. Every £1 invested in fundraising brought in £32 (2021: £20).

Fundraising statement

Village Water complies with the regulatory standards for fundraising. We are
registered with the Fundraising Regulator and adhere to the Fundraising Promise
and 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 receivedzero requests from this service last year.

All our income came from fundraising. In 2022 we spent £72,133 (2021: £60,713)
in support costs for our projects.

Our fundraising activities include applications to trusts, encouraging private
donations, and digital appeals. Our income from corporate sectors has grown
over the years alongside our profile. We employ a small fundraising team which
supports all income generating initiatives. Village Water does not use third-
party suppliers for any activities. All our 2022 UK costs are covered by a
generous funding partner, so that 100% of donations can support our work
in Africa.

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 2022 (2021: none). Our
safeguarding policy is available on our website. 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 specific activities, timeline and budget.

Report and financial statements for the year to 31 December 2022 Page 6 

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2022

When we identify new partners to work with in-country we carry out due
diligence checks including organisational, governance, policies, and financial
processes. Partnerships are reviewed annually.

For project progress and impact monitoring we use a mobile to web monitoring
system following activity timeline milestones. Financial reports are required
by an agreed deadline which, once approved, trigger further transfers made in
line with the annual budget. Directors meet bi-monthly and team members from
each partner, including Village Water, take part in 'hubs' focusing on, but
not limited to communications and 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

COVID 19 is still affecting some areas of our work both in the UK and in
Africa where illness and absences affect timelines on project activities.
Rates of Covid infection have dropped dramatically in 2022 and 2023 in both
Zambia and Mozambique, as the vaccine programme is rolled out. An outbreak of
Cholera has caused concern in Mozambique, we are working with the local government
to help where we can. We completed a risk assessment on travel in 2022 and
reinstated UK trips to partner countries, this has continued in 2023. The cost-
of-living crisis and the war in Ukraine has resulted in many people going
through very tough financial times. This has meant difficulties in raising
funds from some streams of income which is likely to continue to affect
fundraising activities going into 2023.

Report and financial statements for the year to 31 December 2022 Page 7

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2022

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 is Village Water's auditors. A resolution to reappoint
will be put to the AGM.

Report and financial statements for the year to 31 December 2022 Page 8

VILLAGE WATER LIMITED Tru8t•••' R¢pott £or tl1• yur ￿ti￿ag JI Dec•thr 2022 stat•wDt 0£ Trnat•••' E•AponslbIL￿•ts The TriJsteths Report has been preparad -n a¢ecidarJce with =he special provisions relatiig tc sTr&ll conpanies with-n Fart L5 of the Cornpa_Tr'es A￿t 2006. Approved by the Board on 28 July 2023 and signed on its behalf by: Paul Mar•toa - Tzy•t•• Aewt a.Id tir.aDcial statEn-s ti)r t.h¥> ypar ta 31 tLkn.r 2Q22 P•g• 9

VILLAGE WATER LIMITED Statement of Financial Activities

(incorporating an Income and Expenditure account)

for the year to 31 December 2022

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
Fundraising 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 2021
Reserves at 31 December 2022		 Unrestricted
2022
£
Restricted
2022
£
Total
2022
£
Total
2021
£
1,589,526
711,520 2,301,046
1,201,639
2,350
-
2,350
121
1,591,876
711,520 2,303,396
1,201,760
115,911
579,915
695,826
553,013
81,385
1,082,161
1,163,546
459,705
72,133
-
72,133
60,713
43,520
-
43,520
37,615
312,949
1,662,076 1,975,025
1,111,046
1,278,927
(950,556)
328,371
90,714
(1,096,293)
1,096,293
-
-
182,634
145,737
328,371
90,714
224,724
-
224,724
134,010
407,358
145,737
553,095
224,724

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 13 to 22 form part of the Financial Statements.

Report and financial statements for the year to 31 December 2022 Page 10

VILLAGE WATER LIMITED 05970344) A• at 31 D•O•b￿ 2022 Note 2C21 ProportYF plant and equipwÉnt io i.o?.y 633 Receivable3 Castt and cash equivalents 21.271 540.105 ¢£1,37S 14.6%6 224.091 12 13 (LQ,102> 224.Q91 15 53 224 rrt4 Unre8trlcted kest-_, etÈd 16 16 145.'13i 553 095 224 ?A4 The finanelal sLaLemenLS have been prepared in accordanee wlLb. the special provisions relating lo $Jllall cotupanies w3thin Pa£L 15 0£ the Companies ACL 2006 and A¢¢ounting ar.d Reporting by Char-ties: Statemènt of Recomended Practice applicable to crLarities preparirtg their f inancial state]tLents in accordayjce wit.1 the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021. These tinanclal statcmcnts wcre approved and authozlsed for Issue by the Board on 28 July 2023 and slgnÈd or. Its behalf by- The notes on pages 13 Lo 22 form part of the Financial SLaLements. ReEX)rt and f"'nancla"' stat*￿t8 for Lhe year to 31 tÈcert)er 2D22. P4• 11

VILLAGE WATER LIMITED

Statement of Cashflows

for the year to 31 December 2022

Net cash flows from operating activities
Net income/(expenditure)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
(Increase)/decrease 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 (utilised in)/generated from investing activities
Increase/(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		 2022
£
2021
£
328,371
90,714
1,193
981
(2,350)
(121)
327,214
91,574
(6,605)
(10,783)
(4,564)
2,415
316,045
83,206
(2,381)
(699)
2,350
121
(31)
(578)
316,014
82,628
224,091
141,463
540,105
224,091

Report and financial statements for the year to 31 December 2022 Page 12 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022

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 4-7.

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 Accounting
and Reporting by Charities: Statement of Recommended Practice applicable to
charities preparing their accounts in accordance with the Financial
Reporting Standard applicable in the UK and Republic of Ireland - (Charities
SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and
Republic of Ireland (FRS 102) and 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

Village Water, in accordance with recommendations from the Charity Commission,
aims to maintain an unrestricted reserve equivalent to a minimum of 3 months,
to be reviewed annually. This is in order to:

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

2. Ensure sufficient funds should any non-routine staffing issues arise such as pregnancy, redundancy, extended sickness, jury service etc.

Report and financial statements for the year to 31 December 2022 Page 13 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022

Reserves policy (continued)

3. Offer short-term (up to target of 3 months) security to local partners in Zambia and Mozambique to continue activities in the unlikely event of point 1 occurring.

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

The Board remains focused 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 - represent 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 & equipment33% 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.

Report and financial statements for the year to 31 December 2022 Page 14 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022

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.

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

Community
Corporate
Individuals
Statutory
Gift aid
FCDO
Trusts/Foundations
Total Donations		 Unrestricted
2022
£
Restricted
2022
£
Total
2022
£
Unrestricted
2021
£
Restricted
2021
£
Total
2021
£
2,664
- 2,664
21,986
4,179
26,165
1,424,589
280,064 1,704,653
532,126
114,789
646,915
76,644
16,001 92,645
125,669
5,286
130,995
4,855
49,039 44,184
-
48,543
48,543
7,282
7,282
-
-
-
-
-
-
-
101,335
101,335

83,202
366,416 449,618
143,312
104,414
247,726
1,589,526
711,520 2,301,046
823,093
378,546
1,201,639

3) Interest income

Unrestricted Restricted Total Unrestricted Restricted Total
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Bank interest 2,350 2,350 121 121
receivable - -

Report and financial statements for the year to 31 December 2022 Page 15 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (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 Empowered
Communities Helping Others and WATSAN Mozambique, both 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		 2022
£
2021
£
542,335
343,682
-
78,921
542,335
422,603
3,926
(325)
27,529
29,193
6,125
6,199
37,580
35,067
1,079,110
371,230
3,051
22,568
1,662,076
851,468

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 2022 Page 16 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (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 2022
Salaries
Training
Travel
Volunteers
Work from home
allowance
Events &
fundraising
Office costs
Insurance
IT expenses
Other governance
costs
Audit fees
Depreciation
Bank charges
Year ended
31 December 2021
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
Fundraising
Expenses
Governance
Total
2022
£
£
£
£
£
110,282
76,919
64,815
35,646
287,662
99
782
993
340
3,106
624
496
496
220
1,836
5
4
4
2
15
292
232
232
103
859
-
-
2,641
1,520
4,161
1,695
1,346
1,346
1,591
5,978
547
435
435
193
1,610
1,069
849
849
377
3,144
-
-
-
839
839
-
-
-
2,359
2,359
406
322
322
143
1,193
-
-
-
187
187
115,911
81,385
72,133
43,520
312,949
Charitable
Activities
Zambia
Charitable
Activities
Mozambique
Fundraising
Expenses
Governance
Total
2021
£
£
£
£
£
91,535
61,809
51,326
31,860
236,530
9
11
13
5
38
198
213
251
99
761
-
-
-
-
-
-
-
4,557
-
4,557
2,052
2,209
2,604
1,026
7,891
219
236
279
110
844
1,074
1,154
1,360
536
4,124
-
-
-
1,404
1,404
-
-
-
2,328
2,328
256
275
323
127
981
-
-
-
120
120
95,343
65,907
60,713
37,615
259,578		 
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 2022 Page 17

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (continued)

5) Employees and Trustees

The aggregate payroll costs were as follows:
Salaries
Social security costs
Pension costs		 2022
£
2021
£
250,565
204,409
15,955
12,522
21,143
19,600
287,663
236,531		 
No employee received emoluments above £60,000.

Employee salaries by band: £50,000 - 60,000: 0. £40,000 - £50,000: 1.
£30,000 - £40,000: 4. £20,000 - £30,000: 4.

The average number of employees during the year calculated as full-time
equivalents was 8 (2021: 6)

The Trustees were not paid any remuneration or received any other benefits
from employment with the charitable company in the year (2021: £nil).

Six Trustees were paid expenses of £1,382 (2021: £930) for travelling to UK
Trustees' meetings. No charity Trustee received payment for professional or
other services supplied to the charity (2021: £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 £1,096,293 (2021: £455,922) were transferred to
restricted funds.

7) Movement in funds

Net movement in funds is stated after charging:
) Movement in funds
Net movement in funds is stated after charging:
Depreciation
) Auditor’s remuneration
Auditor’s remuneration – the audit of charitable
company’ accounts
Auditor’s remuneration – other services		 2022
£
2021
£
1,193
981
2022
£
2021
£

1,628
1,628
700
700
2,328
2,328

8) Auditor’s remuneration

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 2022 Page 18

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (continued)

10) Non-current assets Furniture & Equipment

Furniture & Equipment
Cost
At 1 January
Additions
Disposals
At 31 December
Depreciation
At 1 January
Charge in the year
Released on disposal
At 31 December
Net book value at 31 December
11) Receivables
Gift Aid Recoverable
Other receivables
Prepayments
12) Cash and cash equivalents
Cash at bank
Petty cash
13) Payables: amounts falling due within one year
Other taxes and social security
Other payables		 2022
2021
£
£
3,503
6,547
2,381
699
(3,743)
5,884
3,503
2,870
5,632
1,193
981
(3,743)
4,063
2,870
1,821
633
2022
£
2021
£
9,172
9,172
11,591
4,855
508
639
21,271
14,666
2022
£
2021
£
540,105
223,999
-
92
540,105
224,091
2022
£
2021
£
5,074
4,022
5,028
10,644
10,102
14,666

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 £21,143 (2021: £19,600).

Contributions totalling £2,789 (2021: £8,509) 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 2022 Page 19 

VILLAGEWATERLIMITED

Notes to the financial statements for the year to 31 December 2022 (continued)

15) Analysis of net assets between 15) Analysis of net assets between 15) Analysis of net assets between 15) Analysis of net assets between funds
Year ended 31 December 2022 Unrestricted Restricted Total
Funds Zambia Mozambique
£ £ £ £
Property, plant & equipment 1,821 - - 1,821
Receivables 21,271 - - 21,271
Cash at Bank 394,368 127,737 18,000 540,105
Payables (10,102) - - (10,102)
407,358 127,737 18,000 553,095
Year ended 31 December 2021 Unrestricted Restricted Total
Funds Zambia Mozambique
£ £ £ £
Property, plant & equipment 633 - - 633
Receivables 14,666 - 14,666
Cash at Bank 224,091 - - 224,091
Payables (14,666) - - (14,666)
224,724 - - 224,724
16) Movements in funds
Year ended 31 December At 1 Jan Incoming Outgoing Transfers At 31
2022 2022 Resources Resources Dec 2022
£ £ £ £
Unrestricted
Property, plant & 633 2,381 (1,193)
-		 1,821
equipment
Receivables 14,666 21,271 (14,666)
-		 21,271
Cash at Bank 224,091 1,578,326 (311,756)
(1,096,293)		 394,368
Payables (14,666) (10,102) 14,666
-		 (10,102)
Total Unrestricted Funds 224,724 1,591,876 (312,949)
(1,096,293)		 407,358
Restricted
Zambia - 432,482 (579,915)
275,170		 127,737
Mozambique - 279,038 (1,082,161)
821,123		 18,000
Total Restricted Funds - 711,520 (1,662,076)
1,096,293		 145,737
Total Funds 224,724 2,303,396 (1,975,025)
-		 553,095
Year ended 31 December At 1 Jan Incoming Outgoing Transfers At 31
2021 2021 Resources Resources Dec 2021
£ £ £ £
Unrestricted
Property, plant & 915 699 (981)
-		 633
equipment
Receivables 3,883 14,666 (3,883)
-		 14,666
Cash at Bank 124,463 822,515 (266,965)
(455,922)		 224,091
Payables (12,251) (14,666) 12,251
-		 (14,666)
Total Unrestricted Funds 117,010 823,214 (259,587) (455,922) 224,724
Restricted
Zambia 17,000 214,439 (457,670)
266,231		 -
Mozambique - 164,107 (393,798) 229,691 -
Total Restricted Funds 17,000 378,546 (851,468)
455,922		 -
Total Funds 134,010 1,201,760 (1,111,046) - 224,724

Report and financial statements for the year to 31 December 2022 Page 20

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (continued)

17) Comparatives for Statement of Financial Activities

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
Fundraising 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 2021
Reserves at 31 December 2021		 Unrestricted
2021
£
Restricted
2021
£
Total
2021
£
823,093
378,546
1,201,639
121
-
121
823,214
378,546
1,201,760
95,343
457,670
553,013
65,907
393,798
459,705
60,713
-
60,713
37,615
-
37,615
259,578
851,468
1,111,046
563,636
(472,922)
90,714
(455,922)
455,922
-
107,714
(17,000)
90,714
117,010
17,000
134,010
224,724
-
224,724

18) Lease commitments

Operating Leases

The total of future minimum lease payments is as follows:
No later than oneyear
Between two and five years		 Office premises
2022
2021
£
£
4,200
4,200
3,850
8,050
8,050
12,250

19) Company limited by guarantee

The company is a charitable company limited by guarantee and consequently not
have share capital. Each of the 9 (2021: 9) members of the charitable company
is liable to contribute £10 towards the assets of the charitable company in
the event of liquidation.

20) Related party transactions

The charitable company works in partnership with independent local charities
Empowered Communities Helping Others (ECHO) in Zambia - 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 £1,620,892 (2021: £793,833
to these partners.

Report and financial statements for the year to 31 December 2022 Page 21 

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2022 (continued)

There have been no significant events between the year end and the date of
approval of these financial statements which would require a change to, or
disclosure in, the financial statements.

Report and financial statements for the year to 31 December 2022 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 2022 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.

Report and financial statements for the year to 31 December 2022 Page 23

VILLAGE WATER LIMITED

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
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:

Report and financial statements for the year to 31 December 2022 Page 24 

VILLAGE WATER LIMITED

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out
on pages 8 and 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 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 2022 Page 25

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,

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 2022 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: Salatin House
HARMER SLATER LIMITED 19 Cedar Road
Chartered Accountants and Statutory Sutton,
AuditorsSurrey
28 July 2023 SM2 5DA

Report and financial statements for the year to 31 December 2022 Page 27