## 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:** - Hygiene and Sanitation Promotion: Implemented comprehensive campaigns addressing hygiene, sanitation, and COVID-19 mitigation. • 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. - District Strengthening: Facilitated coordination and planning meetings at various governmental levels to enhance district wide WASH initiatives. - Monitoring: Conducted surveys to assess existing infrastructure, water quality, and access, as well as household health and school attendance. - Carbon Project Impact: Completed 546 rehabilitations and 35 repairs on water points already in the project. 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. - Carbon Project Impact: Completed 508 rehabilitations and 373 repairs on water points already in the project. ## **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: - Select suitable accounting policies and then apply them consistently. - Observe the methods and principles in the Charities' SORP. - Make judgements and estimates that are reasonable and prudent. - State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. - Prepare the financial statements on a going-concern basis unless it is inappropriate to assume that the company will continue on that basis. 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• wlth*n 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 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 - **1) Accounting Policies** ## **General information** Village Water is a private charitable company limited by guarantee, incorporated in England and Wales under Companies' Act, and registered as a charity in England and Wales (1117377) and Scotland (SCO44129). The charitable company's registered office address is shown on page 3. The nature of the charitable company's operations and its principal activities are set out in the Trustees' Report on pages 4-8. 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. - Tier 1 – UK operating costs - £0-90k - Tier 2 – UK & Partner operating costs - £90k-190k - Tier 3 – Exchange rate fluctuations - £190-250k - Tier 4 – Additional UK & Partner operating costs & Future projects - £250k - 890k 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. - Costs of charitable activities in Zambia and Mozambique represent direct expenditure incurred through grants to local partners for their operational activities together with associated support costs to deliver safe water, sanitation and hygiene. - Fundraising expenses relate to the costs incurred by the charitable company in raising funds for the charitable work. - Governance costs are those associated with the arrangements relating to the strategic operations of the charitable company as opposed to those costs associated with general running of the charitable company, fundraising or charitable activity. These governance costs include external audit costs, staff and Trustee costs in governance of the organisation. ## **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: - Charitable expenditure Zambia - relates to support costs incurred to raise funds for activities in Zambia. - Charitable expenditure Mozambique - relates to support costs incurred to raise funds for activities in Mozambique. - Fundraising expenses - relate to the costs incurred by the charitable company in raising funds for the charitable work; and - Governance - costs are those associated with the governance arrangements relating to the strategic operations of the charitable company. 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)** - **21) Events after the financial period** 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: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. ## **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: - the information given in the Trustees' Report, which includes the Directors' Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Directors' Report included within the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **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: - adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies' regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a strategic report. 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: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the charitable company through discussions with management, and from our cumulative audit knowledge and experience of the charitable company and the knowledge of the charities sector. - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, Charities Act 2011, The Charities (Accounts and Reports) Regulations 2008, The Charities Accounts (Scotland) Regulations 2006, as well as data protection, money laundering and anti-bribery and employment legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - we identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 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: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statements to disclosures and underlying supporting documentation. - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with Charities Commission, HMRC and other government bodies, analysing professional services/legal costs to ascertain if there have been instances of non-compliance with laws and regulations. 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