Company no: 07238796 Charity Number: 1137900 (England and Wales) ## **WaterAid international Annual Report and Financial Statements 31 March 2023** |Contents|Page(s)| |---|---| |Trustees' report|2-5| |Independent auditors' report|6-8| |Statement of financial activities (incorporating an income and expenditure account)|9| |Balance sheet|10| |Statement of cash flows|11| |Notes to the financial statements|12-16| 1 of 16 **WaterAid international - Company registered number 07238796, Charity number 1137900 Trustees' report** ## **For the Year Ended 31 March 2023** The Trustees present their Trustees' report and audited financial statements for the year ended 31 March 2023. **----- Start of picture text -----**
Legal structure and governance
WaterAid international ("the Charity" or "WAi") is a charitable company limited by guarantee. It was incorporated on 29 April 2010 and
registered as a charity on 8 September 2010. Its charitable objects are to relieve poverty and suffering in any part of the world through the
improvement of water supplies, sanitation and advice on related health matters, and to educate the public concerning the nature, cause and
effects of such poverty and suffering. Our governing document is our Articles of Association, published on our website.
During this financial year, there were five members of the Charity, namely WaterAid America, WaterAid Australia, WaterAid Canada,
WaterAid Sweden and WaterAid UK. Each of these member organisations is an independently constituted organisation with its own board,
governing document and management body.
Principal objectives and activities
The Charity brings together the international group of WaterAid organisations to develop a global response to the world's WASH (water,
sanitation and hygiene) crisis. The Charity works to consolidate relationships between WaterAid organisations and ensure that these
organisations share a common vision, mission and values, and work effectively together in matters of strategy, policy and delivery. The
Charity:
• monitors progress of existing members, approves criteria and choices for engagement with new countries;
• agrees core global principles and monitors outcomes of core global processes;
• agrees membership criteria and standards and decides on membership status. It agrees changes to brand identity and licensing; and
• shapes and agrees core WAi governance roles and processes, manages global risks and ensures appropriate global accountability to
external and internal stakeholders.
Four principles underpin the relationship between the Charity and the national member organisations:
1. achieving WaterAid's mission as effectively as possible is fundamental to all we do, and global interest is paramount;
2. the Charity will only undertake activities that it can and will deliver more effectively than WaterAid member countries;
3. WaterAid will only have one organisation delivering our work in each of the countries where we operate; and
4. the members of the WaterAid federation will be organisations that are, or are expected to become within a reasonable time frame, self-
sustaining and able to contribute significant resources to the delivery of WaterAid's strategy.
Public benefit
The Trustees have taken into account the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and
objectives and in planning our future activities.
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## **Governance and management** _The Trustees_ Trustees are appointed by the members of WaterAid; in most cases the Trustees are the chairs of WaterAid national member organisations, who may be appointed from amongst the trustees or may be appointed through open recruitment. The Trustees met four times during the year, in June, September, December and March. For the first time since the start of the Covid pandemic, meetings were held in person at WaterAid international’s London office, the first in June and a second in December. In both cases, attendence was a mixture of virtual and in person. By virtue of its composition, as set out in the Articles of Association, WaterAid international is not in a position to fully apply all the recommended practice relating to open recruitment of Trustees, as they are appointed by the national member organisations. Our work on racial equity, power and inclusion (below) will inform this recruitment process. Trustees were provided with opportunities during the year for one to one conversations with the Chair to review the board’s performance and effectiveness. Seminars and other informal events alongside the face to face meetings in London provided opportunities for relationship building and for focussed learning during the face to face meetings. The Trustees approved the updated Global Ethical Standards and Policy. This document and process provides a decision-making framework to support all Members in selecting and working with partners – both funders, delivery partners and suppliers. The policy is enacted at the Member level but provision is made for escalation to WaterAid international in more complex cases. ## _Global Director_ The Global Director, Andrew McCracken, leads a small secretariat team who deliver the Charity’s work and who support the WAi board, Global Executive, and the member organisations. The Global Director chairs the Global Executive, supporting them to make good decisions on behalf of the global organisation. ## _Global Executive_ Operational decision making and management on federation issues is delegated by the Trustees to formally constituted executive groups, chiefly to the Global Executive which is formed of Chief Executives of member organisations and global leads on primary business functions, including finance, people management, programmatic work and communications and fundraising. The Global Executive met monthly during the year, for the most part digitally, with meetings chaired by the Global Director. ## _Membership and Accreditation Committee_ The Membership and Accreditation Committee (MAC) met three times in May, November and February to provide scrutiny of the member accreditation processes. The MAC comprises two WaterAid international Trustees and two independent members. ## _Charity governance code_ WaterAid international is continuing its work to apply the principles and recommended practices set out in the Charity Governance Code 2017 and as amended in 2020. 2 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900 Trustees' report** ## **For the Year Ended 31 March 2023** ## **Review of the financial year** ## _Global strategy_ The year was the first year of transition to WaterAid’s new Global Strategy to 2032, approved and published by the Charity in February 2022. Through this strategy WaterAid aims to: 1. achieve universal, sustainable and safe services in focused geographic areas to influence wider change; 2. prioritise WASH across the health sector to improve public health; 3. strengthen the resilience of WASH to climate change; and 4. increase the quantity and quality of financing – with recognition that finance is a first order barrier to WASH access. Under the leadership of the Global Director and his team, a short-term Change Team has been put in place to support the transition to the new strategy. The team has four staff on secondment from elsewhere in the federation and managed from the WaterAid international secretariat. Work has progressed well during the year in a number of areas, including: • development of context specific strategies in most of the federation's country programmes. These strategies articulate the change each wants to contribute to in their respective countries, and the contribution they will make to the achievement of the global strategy. They have also been aggregated to consider the overall achievement of our Global Strategy. • The phase-out of four country programmes, approved by the WAi board as part of the strategy development process – Myanmar, Eswatini, Sierra Leone and Nicaragua – is expected to be completed by December 2023. The Trustees have delegated this work to the relevant member organisations, to achieve a well-resourced, well-managed and responsible exit from these countries. • a Performance Measurement Framework has been developed and will be launched in the next financial year. It will enable the Trustees to examine, support and challenge the federation on their progress towards achieving the Global Strategy and the contributions of member organisations. • the ‘One WaterAid’ programme, addressing power, equity and inclusion across the federation, is also making progress and we have already seen positive change in representation across the federation at leadership and decision-making levels. ## _Supporting federation development_ During the year, the Charity has worked with its members to build their capacity and effectiveness in delivering the mission. The Charity completed the process of reissuing Membership and Licence Agreements to all members. The agreements license members to operate under the WaterAid brand; The Charity carried out accreditation reviews as planned during the year. The Trustees approved the recommendations of the Membership and Accreditation Committee that WaterAid Canada remain as a full member, and WaterAid India and WaterAid Japan as associate members. An indicative assessment of WaterAid Japan against the criteria for full membership was also carried out. Recognising the progress made by WaterAid Japan the Trustees approved the recommendation for a further review in a year against the full membership criteria. The Charity has continued to work directly with its members to build their capacity and effectiveness in delivering our mission but, as planned, has not invested financially in new or developing member organisations in the year. All members of the Charity continued to contribute to its ongoing costs and administration, including Secretariat staffing. The Charity has continued an agreed programme of trade mark registrations in global markets to protect the WaterAid brand. ## **Equity, power and inclusion** Following the publication of an internal framework for action on anti-racism, power and diversity and the development of a map of internal changes to support the Global Strategy. The federation is committed to ensuring that authority to make decisions sits at the appropriate level and to improve inclusion in strategic decision making. The WAi board will continue its focus on holding members to account for ensuring boards, leadership teams and global functions are diverse and representative of the contexts that we work in. It will also review its Equity, Diversity and Inclusion policy. ## **Climate crisis** The Charity has approved a high-level focus on developing climate mitigation and resilience work in its current strategy. Across the federation, member organisations are continuing their efforts to place WASH at the forefront of climate change activities and have lobbied hard at global fora, including the UN Water Conference in New York in March 2023. The federation has carried out an environmental assessment into its work and developed an environmental statement, led by WaterAid Sweden. A Global Sustainability Lead has been appointed. ## **Safeguarding** The Charity is committed to the safeguarding and wellbeing of all individuals, including the people in communities in which we work, staff, volunteers, contractors, and partners. We have zero tolerance for the abuse of power, privilege or trust, or any form of inappropriate behaviour, discrimination, abuse, harassment, or exploitation of any kind. All representatives of WaterAid – including staff, volunteers, external contractors and partners – are required to commit to our Global Code of Conduct. A federation-wide safeguarding audit this year confirmed that safeguarding is adequately controlled. The audit found the whole federation has taken a robust and effective approach to safeguarding, supported by senior management and the WaterAid boards. A new organisational Global Safeguarding Framework is in place and a working group of trustees from each member organisation has been set up for oversight of safeguarding culture and practice at a federation governance level. ## **Plans for future periods** The Charity will continue to support members as the organisation transitions to new strategic objectives and plans to: - support the federation to deliver the final year of the transition plan to the new global strategy; - carry out scheduled accreditations with members; - establish and roll out the new membership criteria against which the health of each member can be assessed; - continue to develop and implement plans to address power imbalances that are obstacles to our mission; 3 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900 Trustees' report** ## **For the Year Ended 31 March 2023** • lead a project to improve global collaboration (as reported in our biennial Global Employee Satisfaction Survey), enabling people across the global organisation to work together effectively; • explore options for Global Executive and federation structures that better enable us to deliver our strategy; • embed the new performance reporting framework across all members; • complete work on the development and enactment of global standards in critical areas of the business to ensure that WaterAid speaks and acts with one voice anywhere in the world; and • support the WAi Board, Global Executive and Global Leads to fulfil their responsibilities and functions, working effectively across the member organisations. **Financial review** To carry out its work in FY22-23, the Charity raised £894k in contribution from its members, including £664k gifts in kind (primarily staff costs); which were expended as operational costs. **Reserves policy** In 2020, the Trustees approved a reserves policy which requires the Charity to maintain reserves to meet minimum working capital requirements for 2 – 3 months operating costs. The policy remains appropriate in FY22-23. Reserves would be required if the Charity is wound up. Funds remaining in the reserve after the Charity is wound up would be redistributed between the members. The amount of reserves the Charity will hold is between £140k and £210k, being 2-3 months operating costs. As at 31 March 2023, the Charity held unrestricted funds of £206k. **Going concern** Our going concern statement is an important disclosure to give our stakeholders confidence in how the Charity navigates through this financially. The Trustees are of the opinion the Charity’s financial position is strong and has adequate resources to continue in operational existence for the foreseeable future, a minimum of 12 months from the date of signing these financial statements. The Charity is mindful of the global economic situation, high inflation and volatility in funding and fundraising and has revised down the WaterAid international budget in FY24 (a 8% decrease in total expenditure) and will continue to carefully monitor expenditure levels in FY25, to reduce contribution due from most members to acknowledge and account for the financial challenges federation members are facing. The Charity will have sufficient cash throughout the year to meet its liabilities as the cashflow profile involves receiving funds, based on total annual expenditure, on a quarterly basis from the Charity’s national member organisations. The Charity will not go below a manageable working capital cash base at any time of the year. In conclusion, the Trustees are confident the right processes are in place to monitor the financial position of the Charity to ensure it remains a going concern. ## **Principal risks** The Trustees considered an updated risk register for the Charity in March 2023 and have given consideration to the major risks to which the charity is exposed. They noted considerable progress in developing the Charity's financial procedures to mitigate risks, in particular from late or withheld payment from member organisations. They noted the responsibility of the Charity in relation to intellectual property management and the risks associated with global brand licencing. The Trustees are mindful of the health, safety and wellbeing risks to its staff, specifically as a globally dispersed team, and the wider risk to continuity of work from its being a small team. They have also noted the operational risks and challenges arising from changing donor priorities and expectations, political volatility, the federation’s dependence on UK income, and from ongoing financial markets fluctuations. The Charity has internal controls which allow it to monitor its risks and take steps to mitigate these as necessary. For example, the Charity has delegated financial management to WaterAid UK’s finance department; on behalf of the Charity, they implement their own procedures to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these. ## **Administrative details for the charity, trustees and advisors** ## **Directors** The Trustees and Directors of WaterAid international who were in office during the year, and up to the date of signing the financial statements, were: |Maureen O’Neil (Chair)|Independent| |---|---| |Tobias Krantz (Deputy Chair) (resigned 12 June 2023)|WaterAid Sweden| |Marc Robert (resigned 31 December 2022)|WaterAid America| |Andrew Towle (appointed 1 January 2023)|WaterAid America| |Karlene Maywald|WaterAid Australia| |Annette Nicholson (resigned on 21 June 2022)|WaterAid Canada| |Martin Munro (appointed on 21 June 2022)|WaterAid Canada| |Michael Arthursson (appointed 12 June 2023)|WaterAid Sweden| |Mala Rao|WaterAid UK| |Andrew Green|WaterAid UK| No Director held any interests in the company during the year or at the year-end (2022: none). No dividend was paid or proposed during the year (2022: none paid or proposed). |Registered office:|6th Floor| |---|---| ||20 Canada Square| ||London| ||E14 5NN| |Company registration number:|07238796| |Registered charity number:|1137900| 4 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900 Trustees' report** ## **For the Year Ended 31 March 2023** ## **Independent auditors** PricewaterhouseCoopers LLP were appointed external auditors of the Charity by the Board for FY22-23. **Advisors Principal bankers** Barclays Bank plc 50 Pall Mall London SW1A 1QB **Independent auditors** PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH **Principal solicitor** Bates, Wells and Braithwaite 10 Queen Street Place London EC4R 1BE **Statement of Trustees' Responsibilities** The Trustees (who are also directors of WaterAid International for the purposes of company law) are responsible for preparing the Trustees' annual report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2019); - make judgments and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **Disclosure of information to auditors** In accordance with Section 418, Trustees' report shall include a statement, in the case of each director in office at the date the Trustees' report is approved, that: (a) so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware; and (b) he/she have taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information. ## **Small company provisions** This report has been prepared in accordance with the special provisions relating to small companies within Part 15 & 16 of the Companies Act 2006 and WaterAid international is therefore exempt from the requirement to prepare a Strategic Report. Approved by the Trustees on 20 September 2023 and signed on their behalf by: **Maureen O'Neil, Chair** 5 of 16 **WaterAid international - Company registered number 07238796, Charity number 1137900 Independent auditors' report to the members of WaterAid international** ## **Report on the audit of the financial statements** ## **Opinion** In our opinion, WaterAid international’s financial statements (the “financial statements”): - give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and - have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance sheet as at 31 March 2023; the Statement of financial activities (incorporating an income and expenditure account) and the Statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## _Independence_ We remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. ## **Conclusions relating to going concern** 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 the date on which the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charitable company’s ability to continue as a going concern. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Reporting on other information** The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities. With respect to the Trustees' Report, we also considered whether the disclosures required by the UK Companies Act 2006 and Charities Act 2011 have been included. Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below. ## _Trustees' Report_ In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report for the period ended 31 March 2023 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Trustees’ Report. 6 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Independent auditors' report to the members of WaterAid international (continued)** ## **Responsibilities for the financial statements and the audit** ## _Responsibilities of the trustees for the financial statements_ As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they 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. ## _Auditors' 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 auditors’ 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. Based on our understanding of the charitable company and its industry/environment, we identified that the principal risks of non-compliance with laws and regulations related to Charities Act 2011, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related the posting of inappropriate journal entries and the manipulation of key accounting judgements and estimates. Audit procedures performed by the engagement team included: - enquiring of management and the Board of Trustees, including consideration of known or suspected instances of fraud, and non-compliance with laws and regulations; - reading minutes of meetings of the Board of Trustees; - reviewing the terms and conditions of significant contracts; - reviewing correspondence with regulators including the Charity Commission for England and Wales; - understanding and evaluating the control environment; - · identifying and testing journal entries, including journal entries posted with unusual account combinations to income or expenditure accounts; - assessing the reasonableness of key accounting judgements and estimates; and - assessing financial statements disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report. ## _Use of this report_ This report, including the opinions, has been prepared for and only for the charitable company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. 7 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Independent auditors' report to the members of WaterAid international (continued)** ## **Other required reporting** ## **Companies Act 2006 exception reporting** Under the Companies Act 2006 we are required to report to you if, in our opinion: - we have not obtained all the information and explanations we require for our audit; or - adequate accounting records have not been kept by the charitable company or returns adequate for our audit have not been received from branches not visited by us; or - certain disclosures of trustees’ remuneration specified by law are not made; or - the charitable company financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. ## **Entitlement to exemptions** Under the Companies Act 2006 we are required to report to you if, in our opinion, the trustees were not entitled to: prepare financial statements in accordance with the small companies’ regime; take advantage of the small companies’ exemption in preparing the Trustees’ Annual Report; and take advantage of the small companies’ exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility. Daniel Chan (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 20 September 2023 8 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Statement of financial activities** _(incorporating an income and expenditure account)_ ## **For the Year Ended 31 March 2023** **----- Start of picture text -----**
2023 2022
Unrestricted Restricted Total Total
funds funds
Note £000 £000 £000 £000
Income:
Donations
Grants of a general nature 3 893 - 893 955
Investment income 1 - 1 -
Total income 894 - 894 955
Expenditure:
Expenditure on charitable activities
Development of the WaterAid international network of Members 4 893 - 893 950
Total expenditure 893 - 893 950
Net movement in funds 1 - 1 5
Fund balances brought forward at beginning of the financial year 8 205 - 205 200
Fund balances carried forward at end of the financial year 8 206 - 206 205
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The statement of financial activities includes all gains and losses recognised during the year. All income and expenditure derive from continuing activities. There is no material difference between the net income stated above and their historical cost equivalents. The notes supporting the financial statements are on pages 12 to 16 **.** 9 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Balance sheet** ## **As at 31 March 2023** **----- Start of picture text -----**
2023 2022
Total Total
Note £000 £000
Current assets
Debtors: amounts falling due within one year 5 54 66
Cash at bank and in hand 6 352 306
Total current assets 406 372
Creditors: amounts falling due within one year 7 (200) (167)
(200) (167)
Net current assets 206 205
Net assets 206 205
The funds of the charity
Unrestricted income funds
General funds 14 206 205
Total charity funds 14 206 205
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The financial statements on pages 9 - 16 were approved by the Board of Trustees on 20 September 2023 and signed on its behalf by: ## **Maureen O'Neil, Chair** **Mala Rao, Director** 10 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Statement of cash flows** ## **For the Year Ended 31 March 2023** **----- Start of picture text -----**
2023 2022
Total Total
£000 £000
Cash generated from operating activities
Net surplus for the year 1 5
Decrease in debtors 12 264
Increase / (Decrease) in creditors 33 (584)
Net cash generated from / (used in) operating activities 46 (315)
Increase / (Decrease) in cash and cash equivalents in the year 46 (315)
Cash and cash equivalents at the beginning of the year 306 621
Total cash and cash equivalents at the end of the year 352 306
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11 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Notes to the financial statements** ## **For the Year Ended 31 March 2023** ## **1. Accounting policies** The principal accounting policies have been applied consistently in dealing with items which are considered material in relation to WaterAid international’s Financial Statements. **a) Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are drawn up on the going concern basis which assumes WaterAid international will continue in operational existence for the foreseeable future. The Board have given due consideration to the working capital and cash flow requirements of WaterAid international. The Board consider WaterAid international's current and forecast cash resources, which includes the impact of inflation, to be sufficient to cover the working capital requirements of WaterAid international for at least 12 months from the date of approval of the financial statements. **b) Foreign exchange** Transactions denominated in foreign currencies are translated at the rate of exchange at the beginning of the month as an approximation to actual transaction dates. Foreign currency balances are translated at the rate of exchange prevailing at the balance sheet date. Realised and unrealised foreign exchange gains & losses are included in the statement of financial activities (SOFA) within charitable activity expenditure for the period in which they are incurred. **c) Income** All income is included in the SOFA when the Charity is legally entitled to it, receipt is probable and the amount can be measured with sufficient reliability. **d) Grant income** Grants are credited to the SOFA when WaterAid international has entitlement to the funds. Income is only deferred where there are time constraints imposed by the donor or if the funding is performance related. Where entitlement to grants receivable is dependent upon fulfilment of conditions within WaterAid international's control, income is recognised when there is sufficient evidence that conditions will be met. Grants supporting the core activities of WaterAid international and with no specific restrictions placed upon their use are included within donations. Grants that have specific restrictions placed upon their use are included within income from charitable activities. Grants are receivable from Members for the running costs of WaterAid international. ## **e) Donations** Donations are recognised in the period in which they are received. **f) Gifts in kind** Goods, facilities and services donated for WaterAid international's use, where the benefit is quantifiable and the goods or services would otherwise have had to be purchased, are recognised in the financial statements, as both income and expenditure, at a reasonable estimate of their value in the period in which they are donated. **g) Expenditure** Expenditure is recognised in the period in which it is incurred on an accrual basis. Expenditure includes attributable VAT which cannot be recovered. Costs of charitable activities includes direct expenditure incurred through grants to Full Members or Associate Members. Grants are recognised in the period in which they are payable. Grants payable in furtherance of the charity's objects are attributed to the related classification heading in the SOFA. Governance costs are those associated with the governance arrangements relating to the strategic operations of the Charity as opposed to those costs associated with general running of the Charity, fundraising or charitable activity. These governance costs include internal and external audit costs, legal and tax advice, trustee costs and directors' time in governance of the Charity. Governance costs and other support costs incurred in the development of the WaterAid international network of Members and potential new Members have been allocated to expenditure on charitable activities. 12 of 16 **For the Year Ended 31 March 2023** ## **WaterAid international - Company registered number 07238796, Charity number 1137900 Notes to the financial statements** ## **h) Fund accounting** Unrestricted funds are the funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. ## **2. Prior year statement of financial activities** |**Income:**
_Donations_
Grants of a general nature
_Income from charitable activities_
**Total income**
**Expenditure:**
_Expenditure on charitable activities_
Development of the WaterAid international network of Members
**Total expenditure**
**Net movement in funds for the year**
Fund balances brought forward at the beginning of the financial year
**Fund balances carried forward at the end of the financial year**
**3.**
**Donations**
**Grants of a general nature**
Unrestricted
£000
**Grants from Members**
75
57
15
15
WaterAid Japan
7
60
664
893
WaterAid Australia
WaterAid Sweden
WaterAid UK
WaterAid Canada
WaterAid India
WaterAid America
Grant funding for specific activities|Unrestricted
funds
£000
955
-
**955**
950
**950**
5
200
205
£000
-
-
-
-
-
-
-
-
Restricted|Restricted
funds
£000
-
-
**-**
-
**-**
-
-
-
**2023**
**Total**
**£000**
**75**
**57**
**15**
**15**
**7**
**60**
**664**
**893**|**2022**
**Total**
**£000**
**955**
**-**
**955**
**950**
**950**
**5**
**200**
**205**
**2022**
**Total**
**£000**
**81**
**45**
**20**
**27**
**4**
**66**
**712**
**955**| |---|---|---|---| All income is borne solely through charitable activities. Gift in Kind donations of £664,112 (2022: £712,443), comprising £60,404 (2022: £62,356) in office costs and £603,708 (2022: £650,087) in staff costs are included in the grants from WaterAid UK. Donations in the prior year (£955,000) were all unrestricted. 13 of 16 **WaterAid international - Company registered number 07238796, Charity number 1137900 Notes to the financial statements** **For the Year Ended 31 March 2023** ## **4. Expenditure** |**_Expenditure on charitable activities_**
**_Development of the WaterAid international network of Members_**
Donation to WaterAid UK
International network support and development costs
Governance costs
Support costs|Staff costs
£000
-
418
418
88
98
604|Other direct
costs
£000
115
-
115
114
60
289|Allocation of
support and
governance
costs
£000
-
360
360
(202)
(158)
-|**2023**
**Total**
**£000**
**115**
**778**
**893**
**-**
**-**
**893**|**2022**
**Total**
**£000**
**110**
**840**
**950**
**-**
**-**
**950**| |---|---|---|---|---|---| In the prior year, both the donation to WaterAid UK (£110,000) and international network support and development costs (£840,000) were unrestricted. The key management personnel of the Charity comprise the Trustees and Global Director. The total benefits of the key management personnel (inclusive of employer's national insurance and pension contributions) was £116,376 (2022: £104,848). WaterAid international staff costs relate to 6.7 full time equivalent staff (2022: 7.5 FTE). Pension contributions were made during the year of £38,305 (2022: £44,631). No termination payments were made during the year (2022: £nil). The number of employees whose total benefits excluding employer pension costs amounted to over £60,000 in the year was as follows: |£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
**5. Debtors: amounts falling due within one year**
Trade debtors
Prepayments and accrued income
**6. Cash at bank and in hand**
Cash and bank balances in UK
**7. Creditors: amounts falling due within one year**
Trade creditors
Accruals and deferred income
**8. Movements in funds**
**Unrestricted funds:**
General funds
**Total restricted funds**
**Total funds**
**Total unrestricted funds**
**Employee benefits**|At 1 April
2022
£000
205
205
-
205|Income
£000
894
894
-
894|Expenditure
£000
(893)
(893)
-
(893)|**2023**
**No.**
1
1
1
**2023**
**£000**
**50**
**4**
**54**
**2023**
**£000**
**352**
**2023**
**£000**
**117**
**83**
**200**
Transfers
£000
-
-
-
-|**2022**
**No.**
3
1
-
**2022**
**£000**
**66**
**-**
**66**
**2022**
**£000**
**306**
**2022**
**£000**
**110**
**57**
**167**
**At 31 March**
**2023**
**£000**
**206**
**206**
**-**
**206**
14 of 16| |---|---|---|---|---|---| ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Notes to the financial statements** ## **For the Year Ended 31 March 2023** **8. Movements in funds (continued)** **----- Start of picture text -----**
||||||| |---|---|---|---|---|---| |At 1 April|At 31| |Income|Expenditure|Transfers| |2021|March 2022| |£000|£000|£000|£000|£000| |Unrestricted funds:| |General funds|200|955|(950)|-|205| |Total|200|955|(950)|-|205| |Total restricted funds|-|-|-|-|-| |Total funds|200|955|(950)|-|205| **----- End of picture text -----**
The Trustees' report explains the main reasons why WaterAid international holds unrestricted funds and the adequacy of these funds at the year end. The Trustees approved a reserves policy in April 2020 and the reserves balance as at 31 March 2023 are in line with the policy. ## **Restricted funds** Restricted funds are used for specified purposes as laid down by the Members. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of support costs. A restricted fund has been established for the investment in new WaterAid Members. ## **9. Taxation and charitable status** WaterAid international is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. ## **10. Company limited by guarantee and not having share capital** The liability of the 5 full members of WaterAid international, who are also company members, is limited by guarantee to £1 each (2022: £1). ## **11. Net income for the year** This is stated after charging: **----- Start of picture text -----**
||||| |---|---|---|---| |2023|2022| |£000|£000| |Auditors' remuneration:| ||External audit|3|3| **----- End of picture text -----**
## **12. Trustee remuneration and expenses** WaterAid international's trustees were not paid or received any other benefits of employment with WaterAid international in the year (2022: £nil). One Trustee was reimbursed for expenses or had their expenses paid directly to third parties. The total amount was £10,934 (2022: £2,747) and the nature of the expenses was travel and accomodation. ## **13. Related party transactions** WaterAid UK, WaterAid America, WaterAid Australia, WaterAid Canada and WaterAid Sweden are all full members of WaterAid international operating under license to use the name WaterAid. WaterAid Japan and WaterAid India are not full members but also operates under license from WaterAid international to use the name WaterAid. It is expected that WaterAid India and WaterAid Japan will become a full member in the future. WaterAid international receives funding for its charitable objectives from WaterAid UK, WaterAid America, WaterAid Australia, WaterAid Canada, WaterAid India,WaterAid Japan and WaterAid Sweden. Currently the chairs of all the full members sit on the Board of WaterAid international. 15 of 16 ## **WaterAid international - Company registered number 07238796, Charity number 1137900** ## **Notes to the financial statements** ## **For the Year Ended 31 March 2023** ## **13. Related party transactions (continued)** Transactions between WaterAid international and Members of WaterAid international were as follows: |Received from:
WaterAid America
WaterAid Australia
WaterAid Canada
WaterAid India
WaterAid Japan
WaterAid Sweden
WaterAid UK|**2023**
**£000**
75
57
15
15
7
60
664
**893**|**2022**
**£000**
81
45
20
27
4
66
712
**955**| |---|---|---| Contributions of services valued at £664,112 (2022: £712,443) were received from WaterAid UK during the year to fund core operational costs within WaterAid international. The following balances are due from related parties at year end: |WaterAid America
WaterAid Australia
WaterAid Canada
WaterAid India
WaterAid Japan
WaterAid Sweden
The following balances are due to related parties at year end:
WaterAid UK
**14.**
**Analysis of net assets between funds**
Fixed
assets
£000
Restricted funds
-
General funds
-
**-**
**15.**
**Analysis of changes in net debt**
**At start of**
**year**
**£000**
Cash
**306**|Net current
assets
£000
-
206
206
**Cash-flows**
**£000**
46|**2023**
**£000**
11
3
1
27
7
1
**50**
**2023**
**£000**
196
**196**
**Total funds**
**2023**
**£000**
**-**
**206**
**206**
**Other**
**changes**
**£000**
-|**2022**
**£000**
13
8
3
27
4
11
**66**
**2022**
**£000**
164
**164**
**Total funds**
**2022**
**£000**
**-**
**205**
**205**
**At end of**
**year**
**£000**
**352**| |---|---|---|---| No guarantees or commitments were given or received during the financial year (2022: none). 16 of 16