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← Village Water Limited

2023-12-31-accounts

VILLAGE WATER LIMITED

VILLAGE WATER LIMITED

(A company limited by guarantee) Report and Financial Statements for the Year Ended 31 December 2023

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

Company number: 05970344

Filomena Giraldo washing her face, Mozambique.

VILLAGE WATER LIMITED

Contents

Page

Reference and administrative details 3
Trustees' Report for the year ending 31 December 2023 4
•
Structure, governance, management
•
Vision
•
Principal activities
•
2023 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 24

Regina Fazenda at a hygiene and sanitation training in Mozambique

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 (retired 12.10.2023) Mrs Louise Cook Mr Andrew Picken (Chair) 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) Mr Drake Peabody (appointed 25.01.2024) Mr Martin Rickard (appointed 18.04.2024)

Independent Auditor:

Shaw Gibbs (Audit) Limited Statutory Auditor Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

Report and financial statements for the year to 31 December 2023 Page 3

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2023

The Trustees of Village Water present their annual report and audited financial statements for the year ended 31 December 2023 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 07 January 2024.

The charitable company's Board of Trustees currently comprises ten 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, Strategy, HR, 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 and 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 CEO, to whom the Trustees delegate responsibility for ensuring that the charitable company delivers the services specified and that strategic targets are met. The CEO manages a team of eight staff including fundraising, monitoring and finance functions.

Vision: Better health, education and opportunity for everyone, through safe water, sanitation and hygiene, along with additional integrated activities, improving the lives of the people we work with.

Principal activities

This year, we celebrate Village Waters’ 20-year anniversary of safe water projects. Working with skilled, passionate partners we’ve been able to improve over 1.7 million lives across Zambia & Mozambique through integrated safe water, sanitation & hygiene education (WASH). 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.

Through collaboration with district councils & our experienced local partners we co-develop District Wide Plans (DWPs) as a solution for 100% WASH coverage. These plans support enterprise, create opportunities, promote equity & inclusion & ensure accountability.

We map out all the current systems in the 3 districts we work in, Nalolo, Mumbwa & Báruè to find the gaps in WASH access. We seek to promote & nurture enterprise & sustainable solutions that have real long-term impacts for the districts, with the aim to ensure everyone has access to WASH services. We monitor our impacts annually & strategically, allowing us to pinpoint how effective the chosen solutions really are.

While continuing supporting infrastructure like boreholes, latrine blocks & solar systems, each District Wide Plan goes much further & tackles more complicated issues, like water resource management, planning, climate resilience, equity & many other issues.

Report and financial statements for the year to 31 December 2023 Page 4

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2023

Principal activities (continued)

We have been measuring carbon emissions reductions in our projects in Zambia and Mozambique since 2019. The communities we have supported no longer need to burn wood to make their water safe. With 3,636 water points repaired across four provinces in Mozambique and Zambia over the past 5 years, we've reached more people than we could ever have imagined. That’s 204,000 families that enjoy a safer & healthier life.

We are scaling up investment in the District Wide Plan (DWP) approach and are now working in 3 districts in Zambia and Mozambique. We aim to focus on these 3 districts for the next strategic period and help over 500,000 people access better WASH services.

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.

2023 Overview:

Throughout the year, we made significant strides in improving water, sanitation, and hygiene (WASH) in the areas we work, reaching over 344,000 people in Zambia and Mozambique combined.

Zambia:

• Enterprises Development: Supporting the creation & development of local enterprises to build toilets, increase capacity of local water committees and area pump minders ensuring they have the tools & knowledge to maintain waterpoints.

• Villages: Successfully constructed 10 new boreholes, accompanied by the establishment of robust water committees to ensure the longevity and sustainability of these water points.

• School & Health Centres: We installed & upgraded WASH facilities including 3 solar water systems & 1 borehole, 10 handwashing devices & 5 ablution blocks, including revitalising school clubs and promoting good hygiene and sanitation practices.

Report and financial statements for the year to 31 December 2023 Page 5

VILLAGE WATER LIMITED

2023 Overview (continued)

Mozambique:

• School and Health Centres: Implemented solar water systems and constructed permanent latrine blocks in 2 schools, complemented by hygiene promotion activities, pad production, and the establishment of girls' clubs.

• Villages: Successfully constructed 10 new boreholes, accompanied by the establishment of robust water committees to ensure the longevity and sustainability of these water points.

• District Wide Plan: We started a new district wide plan in Báruè district, Mozambique, involving community mapping and a thorough baseline assessment. Identified the need for increased water coverage, with only 21% of institutions and 42% of villages having access to improved water sources. The district wide plan will be developed in 2024 and activities will help start progress towards 100% coverage.

Income

Our 2023 income increased slightly by 6% on 2022. This was fuelled by the ongoing collaboration on carbon emission projects with our corporate partner. We continue to attract funding from a wide range of supporters, new and long term. 2023 marked yet another milestone with record-breaking income levels achieved. While individual income experienced a slight decline from previous year, we are actively working to bolster this in 2024.

Income streams

Individuals (including gift aid) £75,162 Community groups £10,466 Trusts £431,343 Businesses £1,861,185 Statutory £49,500 Legacy £10,000 Total £2,437,656

Report and financial statements for the year to 31 December 2023 Page 6

VILLAGE WATER LIMITED

Trustees’ Report for the year ending 31 December 2023

Key Successes

Key successes include a further strengthened partnership with CO2 Balance and once again increasing the number of rehabilitated boreholes repaired during the year. We also conducted a baseline in another district to lay the foundations to achieve 100% WASH by 2030 in Báruè, Mozambique.

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).

Expenditure

Expenditure on charitable activities (including governance) was £2,405,465. Unrestricted funds made up 53%(2022: 69%) of our income. Income from Trusts and Foundations & Individuals reduced slightly from 2022, but all other income streams increased. We are excited to continue to scale our partnerships with corporates to further grow and expand operations.

Expenditure on charitable activities in 2023 was 94p (2022: 94p) in every pound.

Fundraising statement

Village Water complies with the regulatory standards for fundraising. We are registered with the Fundraising Regulator and adhere to the Fundraising Promise. We are also signed up to the Fundraising Preference Service to enable individuals to opt out from receiving fundraising communications from us. We received two requests from this service in 2022 from donors not on our database, so likely done in error.

All our income came from fundraising. In 2023 we spent £104,497 (2022: £72,133) in support costs for our projects.

Our fundraising activities include applications to trusts and foundations, 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 2023 UK costs were covered by a generous funding partner, so that 100% of donations could be used to 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 2023 (2022: 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 2023 Page 7

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2023

Grant making statement(continued)

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

In Mozambique and Zambia, an outbreak of cholera has posed challenges, prompting us to deploy emergency funding to curb its spread. Our partners are actively collaborating with local authorities to provide assistance where possible. Furthermore, the drought in Zambia is amplifying the challenges faced by the most vulnerable we support. On a positive note, we've welcomed two new trustees to our board, enhancing the governance of the charity.

Report and financial statements for the year to 31 December 2023 Page 8

VILLAGE WATER LIMITED

Trustees' Report for the year ending 31 December 2023

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

Following a merger of Harmer Slater Limited with Shaw Gibbs (Audit) Limited in November 2023, Harmer Slater Limited resigned as the company’s auditors and Shaw Gibbs (Audit) Limited were appointed to act as the company’s auditors. A resolution to reappoint will be put to the AGM.

Report and financial statements for the year to 31 December 2023 Page 9

VILLAGE WATER LIMITED Trustees, Report £or th• y•ar •ndlng 31 D•e•Thb•r 2023 statement of Trustees, rosponsibilities Small ¢c>rnoanv r¢vl¥l¢n$ The Trust.ee3' Rpport has been prepareol in accordance with the specLal provisions relatlng to small cornpanies w3thin Part 15 of the Companies Act 2006. Approved by the Board on 11 July 2024 and signed on Its behaLf by: P•ul Marston Tru8t•• Ib 7.2Q'L Rep)rt and financial statements for the year to 31 fEcember 2023 Pa9e10

VILLAGE WATER LIMITED Statement of Financial Activities

(incorporating an Income and Expenditure account)

for the year to 31 December 2023

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 2023
Reserves at 31 December 2023		 Unrestricted
2023
£
Restricted
2023
£
Total
2023
£
Total
2022
£
1,293,644
1,144,012 2,437,656
2,301,046
10,234
-
10,234
2,350
1,303,878
1,144,012 2,447,890
2,303,396
90,393
1,256,179
1,346,572
695,826
83,830
975,063
1,058,893
1,163,546
104,497
-
104,497
72,133
48,996
-
48,996
43,520
327,716
2,231,242 2,558,958
1,975,025
976,162
(1,087,230)
(111,068) 328,371
(1,006,493)
1,006,493
-
-
(30,331)
(80,737)
(111,068)
328,371
407,358
145,737
553,095
224,724
377,027
65,000
442,027
553,095

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 23 form part of the Financial Statements.

Report and financial statements for the year to 31 December 2023 Page 11

VILLAGE WATER LIMITED Arrtendtd Balanc• Shggt Icompany no. 059703441 As at 31 D•c•wJboz 2023 Total Funds Note 2023 2022 Non-eurt•nt AsBet¥ Erop8rtYT p lanr and equlpment io 1,864 1,821 Currènt Asa•ts Reeei vabl es Cash and cash equivalents li 12 6,624 41,808 448,432 21,271 540. 105 561,376 P•yabl•8.' Amount falllnq du• wlthn on• y•ar 13 (8, 269) (10.1021 N•¢ curr•nt aB8•ts 440,163 551,274 N•t A¥¥•t• 15 442 027 553, 095 Fund• UnrÈ$trL¢t ed Restrl¢ted 16 377, 027 407,358 16 65,000 115,737 442 027 553 095 These financiaL starements have been propared in accordance. wlth the speclal provisions relLir.ing tr.0 8mal.I compaAles wlthln Part 15 of the Companie5 Act 2006 and AccounLin¢J ond R•portlng by Charities: StaterAent of Revornmcnded Pract.icè appllcable to charltl65 preparlng théir financtal 3tateNignts in accordance th the FiAariLial Reportlng St'andatd <ipplirab'.e n the. UK and Elepubll.c of Irel.and IFIIS 1021 These financlal statemè.nts were approved and authorised for Issue by the Board on 11 July 2024 and signed on its behalf by.. Paul. MarBton Tru8t•• TkLe notes on pages 14 to 23 form part 0£ the amended Financlal Statoments. ReFort and amendgj financiaL Statoments for the year to 31 Decetllber 2023 Pag•12

VILLAGE WATER LIMITED

Statement of Cashflows

for the year to 31 December 2023

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		 2023
£
2022
£
(111,068)
328,371
1,561
1,193
(10,234)
(2,350)
(119,741)
327,214
14,647
(6,605)
(1,833)
(4,564)
(106,927)
316,045
(1,604)
(2,381)
10,234
2,350
8,630
(31)
(98,297)
316,014
540,105
224,091
441,808
540,105

Report and financial statements for the year to 31 December 2023 Page 13

Notes to the financial statements for the year to 31 December 2023

VILLAGE WATER LIMITED

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 4-8.

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 that allows for Village Water to protect against future uncertainties and to provide a secure standing.

Report and financial statements for the year to 31 December 2023 Page 14

VILLAGE WATER LIMITED

Reserves policy (Continued)

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.

This reserve is to be invested in an interest-bearing account with the potential to release deposits in a timely fashion if required.

Should the organisation face liquidation, all assets would be distributed to another not-for-profit organisation, working in the same sphere of activity as Village Water to be used for charitable purposes. Should any such assets be restricted to a specific funder, any decision regarding disposal would be discussed and agreed with them before action.

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 & 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.

Report and financial statements for the year to 31 December 2023 Page 15

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023

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

2) Donations
Community
Corporate
Individuals
Statutory
Trusts/
Foundations
Legacy
Gift aid
Total
Donations		 Unrestricted
2023
£
Restricted
2023
£
Total
2023
£
Total
2022
£
5,823
4,643
10,466
2,664
1,115,456
745,729
1,861,185
1,704,653
47,469
15,111
62,580
92,645
-
49,500
49,500
44,184
102,314
329,029
431,343
449,618
10,000
12,582
-
-
10,000
12,582
-
-
1,293,644
1,144,012
2,437,656
2,301,046

3) Interest income

Unrestricted Restricted Total Unrestricted Restricted Total
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Bank interest 10,234 10,234 2,350 2,350
receivable - -

Report and financial statements for the year to 31 December 2023 Page 16

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (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
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		 2023
£
2022
£
1,204,832
542,335
1,204,832
542,335
-
3,926
-
6,125
51,347
27,529
51,347
37,580
971,295
1,079,110
3,768
3,051
2,231,242
1,662,076

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 2023 Page 17

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (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 2023
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 2022
Salaries
Training
Travel
Volunteers
Work from home
allowance
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
2023
£
£
£
£
£
84,451
77,668
95,361
39,187
296,667
995
1,031
1,105
552
3,683
911
945
1,013
506
3,375
-
-
-
-
-
508
526
564
282
1,880
-
-
2,533
-
2,533
1,324
1,373
1,472
736
4,905
287
298
319
160
1,064
1,496
1,552
1,662
831
5,541
-
-
-
1,520
1,520
-
-
-
4,882
4,882
421
437
468
234
1,560
-
-
-
106
106
90,393
83,830
104,497
48,996
327,716
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

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 2023 Page 18

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (continued)

5) Employees and Trustees

The aggregate payroll costs were as follows:
Salaries
Social security costs
Pension costs		 2023
£
2022
£
258,830
250,565
19,660
15,955
18,177
21,143
296,667
287,663

No employee received emoluments above £60,000.

The average number of employees during the year calculated as full-time equivalents was 7 (2022: 8)

The Trustees were not paid any remuneration or received any other benefits from employment with the charitable company in the year (2022: £nil).

Three Trustees were paid expenses of £1,053 (2022: £930) for travelling to UK Trustees' meetings. No charity Trustee received payment for professional or other services supplied to the charity (2022: £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 £1,152,230 (2022: £1,096,293) were transferred to restricted funds.

7) Movement in funds

Net movement in funds is stated after charging:

2023 2022
£ £
Depreciation 1,560 1,193

8) Auditor’s remuneration

) Auditor’s remuneration
Auditor’s remuneration – the audit of charitable
company’ accounts
Auditor’s remuneration – other services		 2023
£
2022
£

3,000
1,628
1,440
700
4,440
2,328

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 2023 Page 19

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (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		 2023
2022
£
£
5,884
3,503
1,604
2,381
7,488
5,884
4,063
2,870
1,561
1,193
5,624
4,063
1,864
1,821
2023
£
2022
£
5,143
9,172
-
11.591
1,481
508
6,624
21,271
2023
£
2022
£
441,808
540,105
-
441,808
540,105
2023
£
2022
£
-
5.074
8,269
5,028
8,269
10,102

11) Receivables

12) Cash and cash equivalents

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 £18,177 (2022: £21,143).

Contributions totalling £1,802 (2022: £2,789) 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 2023 Page 20

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (continued)

15) Analysis of net assets between fund

Year ended 31
 Unrestricted Unrestricted
Restricted Total
December 2023
Funds Zambia Mozambique
£ £ £ £
Property, plant & 1,864
- - 1,864
equipment
Receivables 6,624
-
 - 6,624
Cash at Bank 376,808
50,000		 15,000 441,808
Payables (8,269) - - (8,269)
377,027
50,000		 15,000 442,027
Year ended 31 Unrestricted Restricted Total
December 2022
Funds Zambia Mozambique
£ £ £
£
Property, plant & 1,821 -
 - 1,821
equipment
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
16) Movements in funds
At 1 Jan Incoming Outgoing Transfer At 31
2023 Resources Resources between Dec
funds 2023
£ £ £ £ £
Unrestricted
Property, plant & equipment 1,821 1,604 (1,561)
-
1,864
Receivables 21,271 6,624 (21,271) - 6,624
Cash at Bank 394,368 1,303,919 (314,986) (1,006,493) 376,809
Payables (10,102) (8,269) 10,102
-
(8,269)
Total Unrestricted Funds 407,358 1,303,878 (327,716) (1,006,493) 377,027
Restricted
Zambia 127,737 664,490 (1,256,179)
513,952
50,000
Mozambique 18,000 479,522 (975,063)
492,541
15,000
Total Restricted Funds 145,737 1,144,012 (2,231,242) 1,006,493 65,000
Total Funds 553,095 2,447,890 (2,558,958)
-
442,027
At 1 Jan Incoming Outgoing Transfer At 31
2022 Resources Resources between Dec
funds 2022
£ £ £ £ £
Unrestricted
Property, plant & equipment 633 2,381 (1,193) - 1,821
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 3,399,686 (3,071,318) - 553,095

Report and financial statements for the year to 31 December 2023 Page 21

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (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 2022
Reserves at 31 December 2022		 Unrestricted
2022
£
Restricted
2022
£
Total
2022
£
1,589,526
711,520
2,301,046
2,350
-
2,350
1,591,876
711,520
2,303,396
115,911
579,915
695,826
81,385
1,082,161
1,163,546
72,133
-
72,133
43,520
-
43,520
312,949
1,662,076
1,975,025
1,278,927
(950,556) 328,371
(1,096,293)
1,096,293
-
182,634
145,737 328,371
224,724
-
224,724
407,358
145,737
553,095

18) Lease commitments

Operating Leases

The total of future minimum lease payments is as follows:

Nolater than oneyear
Between two and five years		 Office premises
2023
2022
£
£
4,125
4,200
-
3,850
4,125
8,050

19) Company limited by guarantee

The company is a charitable company limited by guarantee and consequently not have share capital. Each of the 10(2022: 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 £2,176,127 (2022: £1,620,892 to these partners.

Report and financial statements for the year to 31 December 2023 Page 22

VILLAGE WATER LIMITED

Notes to the financial statements for the year to 31 December 2023 (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 2023 Page 23

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 2023 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 2023 Page 24

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 2023 Page 25

VILLAGE WATER LIMITED

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on pages 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 2023 Page 26

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 2023 Page 27

VILLAGE WATER LIMITED R•port of the Independent Au￿tOrS to the Member8 and Tzu8tee8 of Village Water Lthlted Use of the all￿t re ort This report 15 tTrade solely tc) the charitable company. 5 rDember5r as a bodyi Lll accordance with Chapter 3 of Part 16 of the Cornpanies Act 2006, and to the charitable cornpany's Trustees, as a bodyr in accordance with Regulation 10 of the Charitie3 Accounts Iscotlandl Regulations 2006. Our audit work has been undertaken so that we mlght state to the charitable company's rnembers and Trustee5 those matter5 we are required to state to thern 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 companyr the charitable cornpany's members as a body and the charitable company's Trustee5 as a body¥ for our audit work. for this report. or for the opinions we have f orrned. ans£ord Agyei-Boarnah SénLor Statutory Audlttst for and on behalf of- Shaw Gibbs (Auditl Limited statutory Auditors 16 July 2024 Salatin House 19 Cedar Road Sutton, Surrey SM2 5DA Report and financial statetnents for the year to 31 DecernEer 2023 Pago 28