**Charity registration number 1192062**
**Company registration number CE023136 (England and Wales)**
## **UPTIME CATALYST FACILITY**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **UPTIME CATALYST FACILITY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Dr L N A Money|
|---|---|
||G J Gauthier|
||Prof R A Hope|
|**Charity number**|1192062|
|**Company number**|CE023136|
|**Registered office**|Beaver House|
||23-38 Hythe Bridge Street|
||Oxford|
||Oxfordshire|
||OX1 2EP|
|**Auditor**|Rouse Audit LLP|
||55 Station Road|
||Beaconsfield|
||Buckinghamshire|
||HP9 1QL|
|**Bankers**|National Westminster Bank plc|
||1-4 Berkeley Square House|
||Berkeley Square|
||London|
||W1J 6BR|
## **UPTIME CATALYST FACILITY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 20|
## **UPTIME CATALYST FACILITY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the CIO's constitution, the Charities Act 2011 and "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 (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
## _Public benefit_
The objects of the Uptime Catalyst Facility (UCF) are the advancement of health for the public benefit by improving the reliability of rural water services for in developing countries by disbursing results-based grant funding to rural water service providers. The reliability bench-mark (uptime) is 96% functionality for rural water infrastructure which is equivalent to repairs within 3 days, compared to a month or more from existing practices. This contributes to health and social benefits, particularly for women and girls, who commonly have to walk to more distant, dirty and expensive alternatives when their water supply is non-functioning.
Grant funding is either earmarked for re-granting to rural water service providers through results-based contracts or earmarked for operational funding, which can be used to meet expenses pertinent to the functioning of the charity. Unrestricted funding can be used for either purpose.
The policies adopted in furtherance of these objects are the Prospectus of the Uptime Catalyst Facility. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the CIO should undertake.
## _Strategies for achieving objectives and grantmaking policy_
The main strategy for the Uptime Catalyst Facility to achieve its aims is to award results-based funding to professional rural water service providers. These service providers maintain rural drinking water infrastructure where users pay a share of costs. Grants are awarded to service providers using a standard contract design on the basis of verified quarterly results. Metrics that impact the level of funding are volume of water, infrastructure reliability and local revenue. Payments are to incentivise increased availability of rural water services by targeting grant funding to areas where user payments do not meet full operating costs. Five service providers were contracted to ensure the reliability of rural drinking water infrastructure in seven countries in 2022.
## _Short-term and longer-term aims and objectives_
Success for the charity is measured by the uptime of rural drinking water infrastructure, improved data quality on rural drinking water services and, over time, rural water services improving financial performance to reduce their need for operational subsidies. The work aims to influence sector and government approaches to upscale the model for greater impacts at scale.
The initial objective was to demonstrate that a standardised and scalable funding model could keep rural drinking water flowing across multiple countries and contexts. Short-term objectives are to expand the scale of rural drinking water services supported by the charity. Long-term objectives include attracting new funding sources that have historically not supported rural drinking water sustainability once the success of the model has been demonstrated.
## _Volunteers_
The Uptime Catalyst Facility does not have any volunteers.
## _Public benefit_
The Trustees are conscious of the Charity Commission guidelines on public benefit and these guidelines are applied when grants are considered.
- 1 -
## **UPTIME CATALYST FACILITY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Achievements and performance**
## _Significant activities and achievements against objectives_
The Uptime Catalyst Facility issues results-based grant funding to rural water service providers in multiple African countries to sustain and scale safe community drinking water services. In 2022, its second year of operation, the charity supported the maintenance of infrastructure for c. 1.9 million rural people at an annualised cost of less than USD 1 per person while users paid approximately one third of service costs. Results with Key Performance Indicators are reported publicly on an online dashboard at www.uptimewater.com/global-dashboard.
The UCF did not make any material financial investment and incurred only a small proportion of costs in fundraising efforts.
The UCF was successful in its fundraising activities and was able to secure funding to increase the number of contracted service providers for 2023.
The standardised grant making process used to disburse funds to rural drinking water service providers has produced multiple positive factors that have influenced the achievement of objectives including: improved transparency of results; reduced transaction costs; and reduced implementation risk for funders making grants to the charity.
## **Financial review**
The charity outputs were consistent with 2021. Grants of £593,645 were made to the 5 contracted service providers, an increase of £47,450 from 2021. Grants of the charity generated a surplus of £1,025,160 for this period, with £1,197,604 restricted and (£172,444) unrestricted. This surplus is income generated from grants received but not yet fully spent. Additional grant income was secured in 2022, compared to 2021, ahead of a planned 2023 expansion.
The net assets as at 31 December 2022 were £1,192,349 with £1,181,758 restricted funding for projects and £10,591 unrestricted funds.
_Significant events that have affected financial performance_ There have been no significant events that have negatively affected financial performance. Actuals are consistent with projections.
_Principal risks and uncertainties and summary of plans and strategies for managing the risk_ - - Funding commitments are typically made for a 12 18 month period, which the UCF mitigates by signing results based contracts with service providers for 12 month periods. Through this process, liabilities are not accrued in excess of committed incoming funds.
## _Factors likely to affect future financial position_
The UCF is likely to secure larger-scale multi-year funding which will help to secure its financial position and basis for future planning. It has no investments and holds no funds that are materially in deficit. There are no going concern uncertainties apparent at this time.
_Principal funding sources and how they support key objectives_ The Uptime Catalyst Facility is predominantly funded by charitable grants from foundations. This funding is then dispersed via results-based contracts to service providers who meet requirements for infrastructure reliability.
## _Reserves policy_
It is the policy of the CIO that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the CIO’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The amount of total held funds as of the 31st December 2022 is £1,192,349. This is £1,181,758 of restricted funds and £10,591 of unrestricted funds.
- 2 -
## **UPTIME CATALYST FACILITY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Plans for future periods**
The UCF has expanded the number of service providers from 5 in 2022 to 13 in 2023 to ensure reliable drinking water for c. 4.5 million people. The UCF now aims to sustain the current scale of results-based contracts for 2024 - 2025. In this period the UCF will review the ongoing subsidy requirements for these contracted services and assess alternative funding models to reduce their reliance on support from a UK charity.
The UCF has also made a number of iterations on results-based contract design, most recently working to develop a water safety incentive. Following the expansion of the model in 2023 to new service providers, this water safety component will progressively be incorporated into future contracts from 2024. All relevant working papers are available at https://www.uptimewater.org/publications.
## **Structure, governance and management**
The Uptime Catalyst Facility is a Charitable Incorporated Organisation registered as a charity under the Charities Act. It is governed by its constitution (last amended at registration: October 28, 2020). The Uptime Catalyst Facility was registered by the Charity Commission on 28 October 2020 (charity number 1192062). The charity is structured as an association model with the option to establish membership with organisations involved in the delivery of rural water services. Currently eligible members have been contracted by the charity as grant recipients for results-based funding and have therefore not been enrolled as members due to potential conflict of interest.
Staffing of the charity in 2022 consisted of two officers who reported to the trustees. Officers support operations including fundraising, donor reporting, data management and preparation of results-based contract disbursements. Officers are:
Dr D McNicholl (from October 2020) K Nilsson (from October 2021)
The trustees who served during the period and up to the date of signature of the financial statements were: Dr L N A Money Mr G J Gauthier Prof R A Hope
## _Governance structure and trustee recruitment_
Trustees include two of the lead authors who developed the results-based funding modality adopted by the charity and a sector expert referred by service providers that also contributed to the design of the funding mechanism. The UCF does not anticipate any change in the trustee personnel in the next year and has no plans to recruit or train new individuals.
## _Remuneration_
Payment of any contractors has been done at a market rate, which has been included in grant proposals to funders and approved.
## _Risk management_
A risk register is maintained and reviewed at each trustee meeting with any relevant actions identified and minuted.
## **Further details**
Further details of the Uptime Catalyst Facility can be found by visiting the website www.uptimecatalyst.org
## **Disclosure of information to auditors**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
- 3 -
## **UPTIME CATALYST FACILITY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees' report was approved by the Board of Trustees.
..............................
Dr L N A Money **Trustee** 31-Oct-2023 Date: .............................................
- 4 -
## **UPTIME CATALYST FACILITY**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees 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).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources, including the income and expenditure, of the charity for that year.
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 Charities SORP 2019 (FRS102);
- 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed . They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 5 -
## **UPTIME CATALYST FACILITY**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UPTIME CATALYST FACILITY**
## **Opinion**
We have audited the financial statements of Uptime Catalyst Facility (the ‘CIO’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, 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 Charities Act 2011.
## **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 CIO 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' 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 CIO’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 trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
- 6 -
## **UPTIME CATALYST FACILITY**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF UPTIME CATALYST FACILITY**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees 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 CIO’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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
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 team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- through discussions with the trustees and other management and from our commercial knowledge and experience of the charitable sector providing services to unpaid carers, we identified the laws and regulations applicable to the charitable company; and
- focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.
We assessed the susceptibility of the charity’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;
- 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;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions.
- 7 -
## **UPTIME CATALYST FACILITY**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF UPTIME CATALYST FACILITY**
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 statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC, relevant regulators and the charity’s legal advisors.
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 trustees 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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters which we are required to address**
The prior period financial statements to 31 December 2021 were not subject to audit.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## Rouse Audit LLP
|Rouse Audit LLP||
|---|---|
||31-Oct-2023|
|**Rouse Audit LLP (Senior Statutory Auditor)**|.........................|
|**Chartered Accountants**||
|**Statutory Auditor**|55 Station Road|
||Beaconsfield|
||Buckinghamshire|
||HP9 1QL|
Rouse Audit LLP is eligible for appointment as auditor of the CIO by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 8 -
## **UPTIME CATALYST FACILITY**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|||**Unrestricted**|**Restricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**||**Total**|
|---|---|---|---|---|---|---|---|---|---|
|||**funds**||**funds**||**funds**|**funds**|**Unaudited**||
|||||||||**as restated**||
|||**2022**||**2022**|**2022**|**2021**|**2021**||**2021**|
||**Notes**|**£**||**£**|**£**|**£**|**£**||**£**|
|**Income from:**||||||||||
|Donations and legacies|**4**|312,016||1,522,154|1,834,170|271,543|515,831||787,374|
|||||||||||
|Charitable activities|**5**|477,423||318,030|795,453|108,411|527,528||635,939|
|||||||||||
|**Net income/(expenditure)**||(165,407)||1,204,124|1,038,717|163,132|(11,697)||151,435|
|**Other recognised**||||||||||
|**gains and losses:**||||||||||
|Other gains/(losses)|**10**|(7,037)||(6,520)|(13,557)|19,903|(4,149)||15,754|
|||||||||||
|**Net movement in**||||||||||
|**funds**||(172,444)||1,197,604|1,025,160|183,035|(15,846)||167,189|
|**Reconciliation of funds:**||||||||||
|Fund balances at 1 January||||||||||
|2022||183,035||(15,846)|167,189|-|-||-|
|||||||||||
|**Fund balances at 31**||||||||||
|**December 2022**||10,591||1,181,758|1,192,349|183,035|(15,846)||167,189|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 9 -
## **UPTIME CATALYST FACILITY**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2022**_
|||**2022**||**2021**|||
|---|---|---|---|---|---|---|
|||||**Unaudited as restated**|||
||**Notes**|**£**|**£**|**£**|**£**||
|**Current assets**|||||||
|Debtors|**11**|173||-|||
|Cash at bank and in hand||1,536,906||403,470|||
||||||||
|||1,537,079||403,470|||
|**Creditors: amounts falling due within**|**12**||||||
|**one year**||344,730||236,281|||
||||||||
|Net current assets|||1,192,349||167,189||
|**The funds of the CIO**|||||||
|Restricted income funds|**13**||1,181,758||(15,846)||
|Unrestricted funds|||10,591||183,035||
||||||||
||||1,192,349||167,189||
## 31-Oct-2023
The financial statements were approved by the trustees on .........................
..............................
Dr L N A Money **Trustee**
CIO CE023136 (England and Wales)
- 10 -
## **UPTIME CATALYST FACILITY**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
||||**2022**|||**2021**||
|---|---|---|---|---|---|---|---|
||**Notes**|**£**||**£**|**£**||**£**|
|**Cash flows from operating activities**||||||||
|Cash generated from operations|**17**|||1,133,436|||403,470|
|**Net cash used in investing activities**||||-|||-|
|**Net cash used in financing activities**||||-|||-|
|||||||||
|**Net increase in cash and cash equivalents**||||1,133,436|||403,470|
|Cash and cash equivalents at beginning of year||||403,470|||-|
|||||||||
|**Cash and cash equivalents at end of year**||||1,536,906|||403,470|
- 11 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
Uptime Catalyst Facility is a charitable incorporated organisation in England and Wales, an incorporated form of charity which is an alternative to a limited company. The registered office is Beaver House, 23-38 Hythe Bridge Street, Oxford, Oxfordshire, OX1 2EP.
## 1.1 **Reporting period**
The prior period was the first period of account and operation for the charity from 28 October 2020 to 31 December 2021. Due to this, the two periods of account are not entirely comparable.
## **1.2 Accounting convention**
The financial statements have been prepared in accordance with the CIO's governing document, the Charities Act 2011 , FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 (FRS 102)" (effective 1 January 2019). The CIO is a Public Benefit Entity as defined by FRS 102.. The entity has taken a true and fair override when adopting the SORP 2019.
The financial statements are prepared in sterling, which is the functional currency of the CIO. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.3 Going concern**
The Trustees consider the CIO to be a going concern, as it has adequate resources to meet its commitments for the foreseeable future. As a matter of prudence, the Trustees regularly review committed expenditure projections to ensure alignment with commitments received from our funders. Funding commitments are typically made for a 12-18 month period, and this necessarily constrains the Trustees' capacity to comment on the CIO as a going concern over longer time periods than this. However, the Trustees confirm that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the CIO to continue as a going concern at the date of signing the financial statements.
## **1.4 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.5 Income**
Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the CIO has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 12 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Expenditure**
Expenditure is accounted for on an accruals basis and is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the CIO’s contractual obligations expire or are discharged or cancelled.
## **1.8 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the CIO is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 13 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
## **2 Critical accounting estimates and judgements**
In the application of the CIO’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Key accounting estimates include accruals for grants payable at year end.
## **3 Prior year adjustment**
During the preparation of the financial statements for the year ended 31 December 2022, it was noted that there was a material error in the calculation of the year end accruals for the period ended 31 December 2021. As a result the grant expenditure accrual was understated by £86,410 at period end and consultancy costs understated by £4,547. This led to the accruals in the balance sheet year end being understated by £90,957 and the grant expenditure being understated in the statement of financial activities. The prior year results and comparatives have been adjusted for this error and are restated. This impacts on the current opening funds position for the current year.
- 14 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **5 Expenditure on charitable activities**
||**Charitable**|**Charitable**|
**Charitable**|
**Charitable**||
|---|---|---|---|---|---|
||**expenditure**||**expenditure**|||
|||**2022**||**2021**||
|||**£**||**£**||
|**Direct costs**||||||
|Grant funding of activities (see note 6)||593,645||546,195||
|**Share of support and governance costs (see note 7)**||||||
|Support||182,719||85,752||
|Governance||19,089||3,992||
|||||||
|||795,453||635,939||
|**Analysis by fund**||||||
|Unrestricted funds||477,423||108,411||
|Restricted funds||318,030||527,528||
|||||||
|||795,453||635,939||
|**Grants payable**||||||
||**Charitable**||
**Charitable**|||
||**expenditure**||**expenditure**|||
|||**2022**||**2021**||
|||**£**||**£**||
|Grants to institutions:||||||
|Uduma||98,249||117,959||
|Fundifix||24,765||69,426||
|Water for Good||289,578||206,444||
|Whave||71,821||74,280||
|Water Missions||109,232||78,086||
|||||||
|||593,645||546,195||
## **6 Grants payable**
-
- 16 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**7**|**Support costs**|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||**Support**||
**Governance**|||**2022**|**Support**||
**Governance**|||**2021**|
||||**costs**||**costs**||||**costs**||**costs**|||
||||**£**||**£**||**£**||**£**||**£**||**£**|
||Web Hosting||76||-||76||119||-||119|
||Computer Software/|||||||||||||
||Hardware||-||-||-||2,225||-||2,225|
||Printing||-||-||-||1,250||-||1,250|
||Miscellaneous||-||-||-||1,790||-||1,790|
||Meals||4,038||-||4,038||1,101||-||1,101|
||Accommodation||4,862||-||4,862||2,203||-||2,203|
||Consultancy Fees||152,309||-||152,309||68,479||-||68,479|
||Insurance||1,132||-||1,132||1,132||-||1,132|
||Travel||19,401||-||19,401||2,554||-||2,554|
||Other||901||-||901||352||-||352|
||Audit fees||-||12,000||12,000||-||-||-|
||Accountancy||-||3,310||3,310||-||-||-|
||Independent examination|||||||||||||
||fees||-||-||-||-||3,500||3,500|
||Legal and professional||-||3,779||3,779||-||492||492|
|||||||||||||||
||||182,719||19,089||201,808||81,205||3,992||85,197|
||Analysed between|||||||||||||
||Charitable activities||182,719||19,089||201,808||85,752||3,992||89,744|
Governance costs includes payments to the auditors of £12,000 (2021- £nil) for audit fees and £1,750 for non audit fees.
## **8 Trustees**
1 trustee was reimbursed for expenses totalling £2,582. (2021: 2 trustees £4,196)
Prof. Robert Hope (Trustee) was paid consultancy fees totalling £18,160. (2021:£20,604)
Dr. Alex Money (Trustee) was paid consultancy fees totalling £9,080. (2021:£20,604)
Trustees were paid for consultancy services work, not in relation to their duties as trustees that were carried out pro bono.
## **9 Employees**
The average monthly number of employees during the year was:
||**2022**|**2021**|
|---|---|---|
||**Number**|**Number**|
|Total|-|-|
There were no employees whose annual remuneration was more than £60,000.
- 17 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **10 Other gains and losses**
|**Unrestricted**|**Unrestricted**|**Restricted**|**Restricted**||**Total**|**Unrestricted**|**Unrestricted**||**Restricted**|**Restricted**|**Restricted**||**Total**||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**funds**||**funds**||||**funds**|||**funds**|||||
||**2022**||**2022**||**2022**||**2021**|||**2021**|||**2021**||
|Gains/(losses) upon:|**£**||**£**||**£**||**£**||||**£**||**£**||
|Foreign exchange|7,037||6,520||13,557||(19,903)|||4,149|||(15,754)||
|**Debtors**|||||||||||||||
|||||||||||**2022**|||**2021**||
|**Amounts falling due within one year:**||||||||||**£**|||**£**||
|Other debtors||||||||||173|||-||
|**Creditors: amounts falling due within**||**one year**|||||||||||||
|||||||||||**2022**|||**2021**||
|||||||||||**£**|||**£**||
|Trade creditors||||||||||4,043|||500||
|Other creditors||||||||||-|||152||
|Accruals and deferred income||||||||||340,687|||235,629||
||||||||||||||||
|||||||||||344,730|||236,281||
## **11 Debtors**
## **12 Creditors: amounts falling due within one year**
## **13 Restricted funds**
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
||**At 1 January**||**Incoming**|
**Resources**||**Foreign**||**At 31**|
|---|---|---|---|---|---|---|---|---|
||**2022**|**resources**||**expended**|**exchange**||
**December**||
||||||**gains and**|||**2022**|
|||||||**losses**|||
||**£**||**£**|**£**||**£**||**£**|
|The Waterloo Foundation|(9,032)||-|-||(151)||(9,183)|
|Vox Implus|385||41,925|(8,830)||(720)||32,760|
|Aqua For All|(125,644)||76,085|(3,540)||(976)||(54,075)|
|Hilton Foundation|40,588||1,261,338|(74,084)||(2,774)||1,225,068|
|Vitol Foundation|77,520||89,403|(175,087)||(2,130)||(10,294)|
|Giz|337||53,403|(56,489)||231||(2,518)|
||||||||||
||(15,846)||1,522,154|(318,030)||(6,520)||1,181,758|
- 18 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**13**|**Restricted funds**|||||**(Continued)**|
|---|---|---|---|---|---|---|
||**Previous year:**|**At 1 January**|
**Incoming**|
**Resources**|
**Foreign**|**At 31**|
|||**2021**|**resources**|**expended**|**exchange**|**December**|
||||||**gains and**|**2021**|
||||||**losses**||
|||**£**|**£**|**£**|**£**|**£**|
||The Waterloo Foundation|-|100,000|(107,524)
(1,508)||(9,032)|
||Vox Implus|-|36,192|(34,250)
(1,557)||385|
||Aqua For All|-|77,273|(199,955)
(2,962)||(125,644)|
||Hilton Foundation|-|186,780|(148,744)
2,552||40,588|
||Vitol Foundation|-|86,613|(9,243)
150||77,520|
||Giz|-|28,973|(27,811)
(825)||337|
||||||||
|||-|515,831|(527,528)
(4,149)||(15,846)|
## **14 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 January**|**At 1 January**|
**Incoming**|
**Incoming**|
**Resources**|
**Resources**||**Foreign**|
**At 31**||
|---|---|---|---|---|---|---|---|---|---|---|
|||**2022**|**resources**||**expended**||**exchange**||
**December**||
||||||||**gains and**||
**2022**||
|||||||||**losses**|||
|||**£**||**£**||**£**||**£**|**£**||
|Osprey Foundation||75,086||210,489|(338,271)|||(4,803)
(57,499)|||
|Vox Implus||385||41,925||(22,580)||(720)
19,010|||
|Water Mission||63,300||-||-||-|63,300||
|Vitol Foundation||51,680||59,602|(116,572)|||(1,420)
(6,710)|||
|General funds||(7,416)||-||-||(94)
(7,510)|||
||||||||||||
|||183,035||312,016|(477,423)|||(7,037)
10,591|||
|**Previous year:**|**At 1 January**||
**Incoming**||
**Resources**|||**Foreign**|
**At 31**||
|||**2021**|**resources**||**expended**||**exchange**||
**December**||
||||||||**gains and**||
**2021**||
|||||||||**losses**|||
|||**£**||**£**||**£**||**£**|**£**||
|Osprey Foundation||-||113,386||(60,567)||22,267|75,086||
|Vox Implus||-||36,192||(34,250)||(1,557)
385|||
|Water Mission||-||64,223||(15)||(908)
63,300|||
|Vitol Foundation||-||57,742||(6,162)||100|51,680||
|General funds||-||-||(7,417)||1|(7,416)||
||||||||||||
|||-||271,543|(108,411)|||19,903|183,035||
- 19 -
## **UPTIME CATALYST FACILITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **15 Analysis of net assets between funds**
||**Unrestricted**|**Unrestricted**|**Restricted**|**Restricted**||**Total**|
|---|---|---|---|---|---|---|
|||**funds**||**funds**|||
|||**2022**||**2022**||**2022**|
|||**£**||**£**||**£**|
|**Fund balances at 31 December 2022 are represented by:**|||||||
|Current assets/(liabilities)||10,591||1,181,758||1,192,349|
||||||||
|||10,591||1,181,758||1,192,349|
||**Unrestricted**||**Restricted**|||**Total**|
|||**funds**||**funds**|||
|||**2021**||**2021**||**2021**|
|||**£**||**£**||**£**|
|**Fund balances at 31 December 2021 are represented by:**|||||||
|Current assets/(liabilities)||183,035||(15,846)||167,189|
||||||||
|||183,035||(15,846)||167,189|
## **16 Related party transactions**
Prof. Robert Hope (Trustee) was paid consultancy fees totalling £18,160.
Dr. Alex Money (Trustee) was paid consultancy fees totalling £9,080.
There were no other disclosable related party transactions during the period other than those disclosed in the trustees note.
|**17**|**Cash generated from operations**|**2022**||**2021**|
|---|---|---|---|---|
|||**£**||**£**|
||Surplus for the year|1,038,717||151,435|
||Adjustments for:||||
||Foreign exchange differences|(13,557)||15,754|
||Movements in working capital:||||
||(Increase) in debtors|(173)||-|
||Increase in creditors|108,449||236,281|
||||||
||**Cash generated from operations**|1,133,436||403,470|
|**18**|**Analysis of changes in net funds**||||
The CIO had no material debt during the year.
- 20 -