## The Foundation For Water 2023 Annual report and Financial Statements of The Foundation for Water Foundation (A company limited by Guarantee) Company number 06505102 Charity Number 1133741 For the year ending 28 February 2023 ## **FOUNDATION FOR WATER** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **REGISTERED CHARITY NUMBER:** 1133741 **COMPANY NUMBER : 06505102** 6505102 **REGISTERED ADDRESS** Pixton Hill Hartfield Road Forest Row East Sussex RH18 5JX **TRUSTEES & DIRECTORS** Professor C Giorgetti Alexander Trousdell (retired 28 February 2023) Thomas Wilkes Peter Malaise **COMPANY SECRETARY** Professor C Giorgetti **INDEPENDENT EXAMINER** Stephen J Kettle & Associates Limited Chartered Certified Accountants 5 Fraser Way Hawkinge Folkestone Kent CT18 7SJ 2 ## **FOUNDATION FOR WATER** ## **TRUSTEES' REPORT for the year ended 28 February 2023** The Trustees present their report and accounts for the year ended 28 February 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Articles of Association, the Companies Act 2006 and the Charities SORP (FRS102) - Second Edition October 2019. ## **Structure, governance and management** The charity is a company limited by guarantee. The Trustees, who are also the directors for the purpose of company law, and who served during the year were: Professor C Giorgetti Alexander Trousdell (retired 28 February 2023) Thomas Wilkes Peter Malaise Trustees are appointed by ordinary resolution of the members in general meeting and are inducted and trained by existing trustees. None of the members of the trustees has any beneficial interest in the company. All of the members of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up, while they are still members or within a year of membership ceasing. The trustees make the decisions of the charity. The charity has links with other water foundations across the world to widen its influence and research in order to further meet its charitable objectives. These links do not constitute related parties as deemed by the Companies Act 2006. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **Objectives and Activities** The Charity's objects are: - to promote, for the benefit of the public, the conservation, protection and improvement of the physical and natural environment, with a non-exclusive focus on enhancing the capacity of water to support life and otherwise improving the quality of water, - to promote public health, by carrying out research and developing ecologically supportive technology and methods in domestic, agricultural, industrial and natural situations for the benefit of local communities and the public generally, - to advance the education of the public in relation to the life-supporting capacities and other characteristics of water with a nonexclusive focus on ways of thinking developed by JW Goethe and Rudolf Steiner. The trustees have paid due regard to the guidance issued by the Charity Commission in deciding what activities the charity should undertake. 3 ## **FOUNDATION FOR WATER** ## **TRUSTEES' REPORT for the year ended 28 February 2023** ## **Achievements & Performance** ## **Overview** Our main aim has been to continue to sustain our basic financial security and carry through actions leading into a new phase of growth. The last decade has been spent on consolidating the Foundation by solving its various financial, legal and ownership issues while carrying out significant research into water’s life supporting energetic responses to dynamic flow. ## **Research** The Stage 2 Phase 2 programme of repeating our ‘quantum coherence in water’ research has not been able to be continued because we could not find a satisfactory experimental design which includes living organisms. There has been no other research actioned or planned. ## **Education** Foundation for Water has agreed to rent its middle floor and grounds to the Orchard Setting child-care group, which is officially registered with the UK government’s Ofsted. All necessary compliances have been completed. The building’s D Category usage allows for this. It is in effect a home school support activity with children of school age attending Orchard Setting for morning lessons only, for a limited period during their week as an aid to parents. This agreement has been renewed for a longer term. The ground floor is available for the Foundation’s educational programmes, though use of the building needs consideration for the presence of children on site. ## **Relationship with Landlord** The Foundation for Water has a 999-year lease of its 0.25 ha property and three-story building from its landlord, Emerson College Charitable Trust. We are in process of negotiating a variation of the lease contract with them to make it a more equitable balanced legal document. This continued throughout the 2022/23 year of report, with the possibility of a positive outcome increasing markedly. An anonymous donor has funded the Foundation with loans to cover the considerable legal costs involved. ## **Staff** This year we changed our accountant and administrator, so that one person took over both functions with onsite help from a second person. Our decade-long director resigned on the 23rd February 2023, also as a trustee. Three trustees remain with a further set being considered as new trustees. The maximum number of trustees was increased from 5 to 11 by the trust board. ## **Planning and Finances** The Foundation has continued to consolidate its regular income this year. Its annual rental income has improved again, with savings building up for further property maintenance tasks and necessary backdated payment to the landlord which await the completion of a satisfactory lease. There was also a significant private donation granted to the Foundation which was directed to reduce financial liabilities on the building mortgage loan. ## **Assets** The building has been maintained well. New flooring cover and extra bathroom facilities have been added with all necessary approvals. The Foundation has an agreement to repay these costs to the existing lessee who paid for these developments. A new modern website has been built with social media and funding apps included, awaiting use. ## **Special Circumstances** For future independent growth and development of our charitable aims it is important that we reconfigure the relationship with the landlord of the 999-year lease. For this purpose, we have retained legal help in London to help us reforge an agreement which will stand the tests of time over a very long period. This is ongoing. There is also a group of supporters who have been preparing for future developments with regular online discussions to understand the past challenges and achievements and to put in place what is needed for future growth in a new phase for the Foundation. On behalf of the board of trustees ……………………………………………. ## **Professor C Giorgetti** Trustee and director Dated: 12 October 2023 4 ## **FOUNDATION FOR WATER** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees, who are also the directors of the Foundation for Water for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice. Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of the . Under that law the directors have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law. The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - obseve the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsibe for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that its financial statements comply with the Charities Act 1993 and the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. 5 ## **FOUNDATION FOR WATER** ## **Report to the Trustees/Directors of Foundation For Water on accounts for the year ended 28 February 2023** **Charity Number:** 1133741 **Company Number:** 06505102 I report on the accounts of the charity for the year ended 28 February 2023, which are set out on pages 7 to 13. ## **Responsibilities and basis of report** As the charity's trustees of the Company ( who are also the directors of Foundation For Water for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act). Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act"). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act). ## **Independent examiner's statement** The company's gross income did not exceed £250,000. I am qualified to undertake the examination by being a qualified member of the Chartered Association of Certified Accountants. I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that : - accounting records were not kept in accordance with section 386 of the Companies Act 2006; or - the accounts do not accord with such records;or - the accounts do not comply with relevant accounting requirements under sction 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or - the accounts have not been prepared in accordance with the Charities SORP (FRS102) I have no concerns and have come across no other matter in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Stephen J Kettle FCCA Stephen J Kettle & Associates Limited Chartered Certified Accountants 5 Fraser Way Hawkinge Folkestone Kent CT18 7SJ Dated 12 October 2023 6 ## **FOUNDATION FOR WATER** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **For the year ended 28 February 2023** |**Notes**
**Incoming Resources**
Donations and legacies
2
Activities for generating funds
2
Rental income & Guest Accommodation
2
Sales & Other income
2
Grant Income
2
Investment Income
3
**TOTAL INCOMING RESOURCES**
**Resources expended**
**Cost of generating funds**
Costs of generating donations and legacies
4
**TOTAL RESOURCES EXPENDED**
Net incoming resources available
**Charitable Activities**
Administration and finance
6
Governance costs
4
Project costs
5
Total resources expended
Net (outgoing)/incoming resources before
provisions
Movement in provisions
**NET MOVEMENT IN FUNDS**
Fund Balances brought forward
**Fund balances carried forward**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2023 Total**
**Funds**
2022 Total
Funds
**7,700**
**24,377**
**32,077**
7,700
**0**
**0**
**0**
0
**18,301**
**0**
**18,301**
21,830
**78**
**0**
**78**
62
**0**
**0**
**0**
0
**68**
**0**
**68**
0| |---|---| ||**26,146**
**24,377**
**50,524**
29,592
**0**
**0**
**0**
0| ||**0**
**0**
**0**
0| ||**26,146**
**24,377**
**50,524**
29,592
**11,929**
**0**
**11,929**
32,181
**22,070**
**0**
**22,070**
2,357
**0**
**0**
**0**
0
**33,999**
**0**
**33,999**
34,538
**(7,852)**
**24,377**
**16,525**
(4,946)
**0**
0| ||**(7,852)**
**24,377**
**16,525**
(4,946)
**530,287**
**(6,224)**
**524,063**
529,009| ||**522,435**
**18,153**
**540,588**
524,063| 7 ## **FOUNDATION FOR WATER** ## **BALANCE SHEET As at 28 February 2023** |||||**2023**||2022| |---|---|---|---|---|---|---| ||**Notes**||**£**|**£**|£|£| |**Fixed Assets**||||||| |Tangible assets||8||**650,000**||650,000| |**Current Assets**||||||| |Cash at bank and in hand|||**36,692**||18,521|| |Creditors:amounts falling due within one year||9|**0**||0|| |**Net current (liabilities)/assets**||||**36,692**||18,521| |**Total assets less current laibilities**||||**686,692**||668,521| |**Creditors:amounts falling due after more**||||||| |**than one year**||10||**(146,104)**||(144,456)| |**Net assets**||||**540,588**||524,064| |**Income funds**||||||| |Unrestricted funds||||**172,435**||174,064| |Restricted funds||||**18,153**||0| |Non-distributable reserve||||**350,000**||350,000| |||||**540,588**||524,064| The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit in accordance with section 476 of the Act. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. The notes on pages 9 to 13 form part of these financial statements. Approved by the Board on 12 October 2023 ……………………………………………………….. ## Professor C Giorgetti **Trustee** **Company registration number** **6505102** 8 ## **FOUNDATION FOR WATER** **NOTES TO THE ACCOUNTS For the year ended 28 February 2023** ## **1 Accounting Policies** ## **Accounting convention** The accounts have been prepared under the historical cost convention and comply with applicable accounting standards, the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005 and in accordance with the financial reporting standards for smaller entities (FRSSE) and the Companies Act 2006. ## **Reporting currency** The accounts are prepared in GBP, which is the principal operating currency of the company. ## **Incoming resources** All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities when receivable. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. ## **Resources expended** Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## **Tangible fixed assets and depreciation** Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its estimated useful life, as follows: Plant and machinery Straight line over ten years 9 ## **FOUNDATION FOR WATER** ## **NOTES TO THE ACCOUNTS For the year ended 28 February 2023** ## **2 Donations and Legacies** |Activities for generating funds
Donations and gifts
AS & GB Grant Income
SAGT Science Proposal
Research SAG Phase 2
Rental income
Royalties
Other income
Sales|**Unrestricted**
**funds**
**Restricted**
**Funds**
**Total 2023**
**£**
**£**
**£**
0
0
**0**
7,700
24,377
**32,077**
0
0
**0**
0
0
**0**
0
0
**0**
18,300
0
**18,300**
78
0
**78**
0
0
**0**
0
0
**0**
26,078
24,377
**50,455**|Total 2022
£
0
7,700
0
0
0
21,830
62
0
0| |---|---|---| |||29,592| ## **3 Investment income** |Interest receivable
**4 Total resources expended**
**Cost of generating funds**
Cost of generating donations and legacies
**Charitable activities**
Activities undertaken directly
**Governance costs**
_Includes accountancy fees & other legal fees_|**Total 2023**
**£**
68
**Total 2023**
**£**
0
11,929
22,070
33,999|Total 2022
£
0| |---|---|---| |||Total 2022
£
0
32,181
2,357| |||34,538| ## **5 Project Costs** In the financial years to 28 February 2022 and 2023 there were no costs directly associated with any specific projects. 10 ## **FOUNDATION FOR WATER** ## **NOTES TO THE ACCOUNTS For the year ended 28 February 2023** ## **6 Charitable Activity Costs** |**Activities undertaken directly**
Other costs relating to Administration and Finance comprising:
Printing, postage and stationery
Bank charges
Interest on loans
Books and publications
Advertising
Cleaning
Telephone and fax
Legal and professional
Insurance
IT Supplies
Sundry expenses
Rates
Repairs and Maintenance
Accomodation
Disposal of fixed assets
Staff costs|**Total 2023**
**£**
11
213
1,595
0
1,155
0
372
22,070
2,486
80
0
2,675
1,878
0
0
1,463
33,999|Total 2022
£
0
44
1,939
515
103
8
326
2,357
2,356
0
-850
3,489
2,380
10
20,782
1,080| |---|---|---| |||34,538| ## **7 Trustees** None of the trustees received remuneration during the year. 11 ## **FOUNDATION FOR WATER** ## **NOTES TO THE ACCOUNTS For the year ended 28 February 2023** ## **8 Tangible fixed assets** |**Cost**
At 29 February 2022
Revaluation
Disposal of fixed asset
At 28 February 2023
**Depreciation**
At 29 February 2022
Charge in the year
Depreciation - disposal
At 28 February 2023
**Net book Value**
At 29 February 2022
At 28 February 2023|**Land and**
**buildings**
300,000
350,000
0
650,000
0
0
0
0
650,000
650,000|**Plant &**
**Machinery**
0
0
0|**Total**
300,000
350,000
0| |---|---|---|---| |||0|650,000| |||0
0
0
0
0
0|0
0
0| ||||0| ||||| ||||650,000| ||||| ||||650,000| On 16 September 2020 RH & RW Clutton LLP carried out a market valuation of the land and property at Water Science Building, Emmerson College, Forest Row which concluded that the property should be valued at £650,000. Gains on properties are not subject to tax where the gain is applied for the charity's charitable purposes. Accordingly, we have not made provision to tax on the property's increase in value. ## **9 Creditors falling due within one year** |Other creditors
Accruals|**Total 2023**
**£**
0
0
0|Total 2022
£
0
0| |---|---|---| |||0| 12 ## **FOUNDATION FOR WATER** **NOTES TO THE ACCOUNTS For the year ended 28 February 2023** ## **10 Creditors: amounts falling due after more than one year** |**Creditors: amounts falling due after more than one year**||| |---|---|---| |Related party loans
Other loans|**Total 2023**
**£**
123,004
23,100
146,104|Total 2022
£
113,656
30,800| |||144,456| A loan from Software AG Stiftung of DM500,000 in 2001, in the form of a restricted covenant, guaranteed on the Foundation for Water's building for as long as it is used to support water related research and education in line with John Wilkes' work, and to be converted to a donation at a rate of 4% (£7,700) annually over 25 years on a straight line basis. The total as of 28 February 2023 is £23,100. A mortgage is also held on the building, including accumulated interest, of £81,976 (2022 £91,856) by the family of a Trustee, Mr Thomas Wilkes. Interest is payable on the loan at 3.0% per annum. A Trustee, Professor C Giorgetti, has made an additional interest free loan to the Foundation, of £19,227.60 which added to the loan already outstanding totals £41,027 (2022 £21,800). 13