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2023-03-31-accounts

Our impact UK annual report 2022–23

Case study Dinke Atnaw, Ethiopia

Dinke Atnaw filling a bucket with clean water from a tap in her compound, Chibah village, North Mecha District, West Gojjam Zone, Amhara Regional State, Ethiopia. October 2022.

Community voices in Ethiopia

Dinke Atnaw lives in Chibah, a village in the Amhara region of north Ethiopia. Like most women in her village, Dinke is responsible for managing the household chores for her family, including collecting water.

Around the world, millions of women and girls like Dinke walk long distances to collect water, often from unsafe sources like rivers, ponds and holes in the ground. This leaves them little time for an education, paid work or free time.

Dinke lived with the worry of giving her baby water that she knew was unsafe:

“It was very difficult to live without accessing water. We used to spend most of our time waiting for our turn to get water and the water was not clean.”

Thanks to funding from our supporters, we worked with Dinke’s community and partners to improve water and sanitation at five local schools reaching 10,000 students, and five healthcare facilities reaching 125,000 people. We have also set up a successful Water User Association where elected local voices listen to community needs, make decisions and strengthen local government capacity to maintain services in partnership with the local community going forward.

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WaterAid/ Frehiwot Gebrewold
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Contents

Priority 1

Modelling services 08

Building the capacity of communities, partners and governments 10 12 Influencing policies

Priority 2

Our wonderful supporters 16

Priority 3

Our people 18

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WaterAid/ Chileshe Chanda
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Mary Chitundu holding a glass of clean drinking water at her home in Kazungula District, Zambia, June 2022.

Find out more about our latest achievements, and the issues facing our work at:

/wateraid /wateraidUK /wateraid

Kung Y, 64, and her grandaughter Nita, 8, at their home in Tbaeng Kpos Commune, Sammeaki Meanchey district, Kampong Chhnang Province, Cambodia, Feb 2023.

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WaterAid/ Tariq Hawari
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Welcome 04 Our impact 06 Looking forward to 2023–24 20 20 Thank you 22 Financial summary 24 Key policies and processes 26 Structure 32 Trustees 40

Independent auditors’ report to the members of WaterAid 41

Financial statements

Consolidated statement of financial activities 45 Charity statement of financial activities 46 Group and charity balance sheets 47 Consolidated cash flow statement 48 Notes to the financial statements 49

On the cover: Mastewal Gebremichael drinks water from a glass, Ambomesk, Ethiopia. April 2023.

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WelcomeSection 1 Welcome
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WaterAid
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WaterAid/ Katie McCraw
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WaterAid weathered many different storms last year and reached impressive results, thanks to your unwavering support. It is truly humbling that despite a difficult economic environment, you continued to give so generously, ensuring we could fully deliver on our promises in 2022–23 and commit to the future. Thank you.

Working in turbulent times

Like so many, our teams faced unprecedented challenges, from the shockwaves of the war in Ukraine, to recovering from the disruption caused by the COVID-19 pandemic and extreme weather events.

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WaterAid/ Ernest Randriarimalala
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Financial hardship defined the year for everyone committed to bringing clean water, decent toilets and good hygiene to all.

Leading by example

As ever, last year we used the success of our work to influence change far beyond the boundaries of our projects. In 2022–23, as we transitioned to our new ten-year Global Strategy, we strengthened that approach and created sustainable projects that can be scaled up in order to reach more people.

The development of our strategy was led by the expertise of our country programme teams and the partners they work alongside.

We know what works because of our long track record in ensuring long-lasting and inclusive clean water, decent toilet and good hygiene facilities for households, schools, clinics, hospitals and businesses. This know-how, together with our achievements, are what give us a seat at the table.

Olivia, 8, standing in front of the sanitation block at her school in Antsakambahiny village, Manjakandriana commune, Madagascar. January 2023.

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WaterAid/ Etinosa Yvonne
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Hauwawu Dalhatu now has access to solar-powered water for her farm thanks to funding from our partner, Diageo. Bauchi state, Nigeria. February 2023.

From local to global

When we engaged with decision-makers last year, we drew on our expertise to push water, sanitation and hygiene higher up the agenda and to shape action plans.

At the United Nations (UN) 2023 Water Conference, the first of its kind in nearly 50 years, we joined with governments, civil society, the private sector and UN agencies to discuss how to accelerate progress to meet Sustainable Development Goal 6: water and sanitation for all by 2030.

From local to global, we have the plans in place to help drive massive change. Last year, we began to ramp up our work in healthcare and climate adaptation. Both are key in protecting communities from the impacts of climate change and the outbreak of disease.

The transformative power of clean water, decent toilets and good hygiene is a highly cost-effective lever to solve many of our most

pressing global challenges. Governments and the private sector must now demonstrate their commitment by opening up the investment taps.

People power

We would like to dedicate this report to our staff, partners and volunteers in the UK and across the world. Their effort and endeavour last year was truly remarkable, especially in such trying circumstances.

We also remember colleagues and friends who sadly passed away in 2022-23 and will be deeply missed across WaterAid.

And, we say a huge thank you to Paula Laird, Executive Director of Finance and Information Technology (left in August), and Olga Ghazaryan, Executive Director of International Programmes (left in June), for their many years of outstanding service and vision in taking our work to the next level.

We now turn to the year ahead, where the challenges we faced last year look set to continue. As high inflation persists, we and our partners will need to meet our promises with declining purchasing power.

Thanks to your support, we have the financial resilience to cope in a volatile environment and our executive team will monitor developments carefully.

Despite these difficult times, our optimism remains undimmed because we know we can count on your steadfast commitment to our cause.

We look forward to working with you to deliver another year of real and lasting change through clean water, decent toilets and good hygiene. Thank you.

Tim Wainwright Andy Green CBE Chief Executive Chair of Trustees

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Section 1 Our impact

Our impact

Working in partnership

In 2022–23, WaterAid worked with 232 partner organisations on 240 projects. Our partners included:

100 governmental bodies and 105 non-governmental organisations from the local to the global.

or 15 primary networks alliances, alongside a wide range of others.

68 rural and urban authorities, including 8 utilities.

WaterAid representatives Wanji Wambari-Kairu, Timothy Ingram and Rachel Sewell holding a giant postcard addressed to the Prime Minister as part of a petition hand in to demand urgent action from the Government at COP27 to prioritise clean water for people living with the effects of climate change. London, UK. November 2022.

Influencing

In 2022–23, WaterAid helped secure changes to 9 national policies , strategies or standards to benefit people living without clean water, decent toilets or good hygiene.

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WaterAid/ Dennis Lupenga
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Aerial view of women and children filling buckets and waiting for their turn at a borehole, Chisi Island, Zomba, Malawi. October 2020.

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WaterAid/ Oliver Dixon
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Our direct reach

28.5 million people with clean water

Since 1981 , WaterAid have directly reached:

29 million people with decent toilets

27.8 million people with good hygiene[1]

Delivering services directly

Mulala Construction workers pull materials onto a slab for a new maternity wing at Siakasipa rural healthcentre, Kazungula District, Zambia. June 2022.

Below we report on people we ‘directly reached’[3] in 2022–23:

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Number of people
we reached
directly with		 Communities
(in or near people’s
homes)		 Schools Healthcare
facilities		 Public
facilities
Clean water 338,434 96,304 2,048,410 155,760
Decent toilets 117,560 110,015 1,424,064 73,173
Good hygiene
through better
facilities		 269,425 326,712 1,598,909 93,296
Good hygiene
through behaviour
change activities		 1,420,049 386,022 214,949 n/a

Wider Scale

L-R: Lassina, Amadou, Aminata, Yacouba and Nana, all members of the school hygiene club, holding a meeting, Bla district, Segou region, Mali. October 2019.

Below are the people we reached through direct influencing and capacity strengthening in 13 of the countries we worked in.

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Number of people Communities Schools Healthcare Public
we reached (in or near people’s facilities facilities
directly with homes)
Clean water 362,065 2,643 50,873 43,330
Decent toilets 97,489 6,902 54,144 57,640
Good hygiene
through better n/a 11,078 24,088 48,330
facilities
Good hygiene
through behaviour 156,947 n/a 10,800 n/a
change activities WaterAid/ Basile Ouedraogo
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Section 1 Priority One
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WaterAid/ Chileshe Chanda
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Ireen Mwangala,

nurse in charge at Lusu rural healthcentre. Sesheke District,

Zambia. June 2022.

Modelling services

Our number one priority is to scale up progress so that more people have clean water, decent toilets and good hygiene. We use our projects to demonstrate how to provide sustainable and equitable water and sanitation services and effect changes in hygiene behaviour. By working with local partners to show what works, we can strengthen capacity and influence others.

Positioning water, sanitation and hygiene at the heart of healthcare in Zambia

In partnership with On Call Africa and thanks to funds from The Leona M. and Harry B. Helmsley Charitable Trust, we constructed 39 piped water networks in healthcare facilities, benefiting over 380,000 people in the Monze, Kazungula, Mwandi and Sesheke districts. With our local partner, we also completed 14 improved maternity wards, with waste management areas. Together, this work lowers the risk of maternal and neonatal deaths and improves the quality of care in what are vital facilities for local communities. Speaking on behalf of the government at the handover ceremony, Republican Vice President, Her Honor, Mrs. W.K Mutale Nalumango MP said: “This level of investment and infrastructure is transformative for the community here in Sesheke and will enhance access to services at the healthcare facility, and ensure our mothers and sisters have safe deliveries.”

To ensure sustainability, we work with local communities and institutions to develop reliable water, sanitation and hygiene services that are accessible to everyone, adapted to the local context and resilient to the impacts of climate change.

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WaterAid/ Khaula Jamil
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Rasheeda collects stagnant flood water to wash clothes with. She has been living in a tent with her husband and seven children at a roadside camp after devastating monsoon floods submerged their village in Johi Tehsil, District Dadu, Sindh, Pakistan. October 2022.

Promoting good hygiene in the wake of COVID-19

Over the past year, we successfully implemented the second phase of our COVID-19 hygiene response programme, funded by the UK Foreign, Commonwealth and Development Office and Unilever under the Hygiene and Behaviour Change Coalition 2 Initiative. Working in Ethiopia, Nepal, Nigeria and Zambia, we reached more than 59 million people with key information about hygiene behaviours including through TV, radio and digital channels. We led the design of community-based hygiene training packs, which reached 2 million people. We built 58 new and restored 291 handwashing facilities across healthcare settings, schools and other public places. We delivered extensive training to ensure that these facilities are maintained going forward and last well into the future.

Pakistan emergency flood response

We are not an emergency response organisation. However, when a disaster directly affects the communities we work with, we take action to ensure people have clean water, decent toilets and good hygiene. During the devastating floods in Pakistan in 2022, thanks to donations to our Pakistan floods appeal and Zakat funding, we worked in partnership with eight local NGOs to:

Young water, sanitation and hygiene Ambassadors in Bangladesh

Together with key partner IDEA, we delivered an in-depth training programme to empower 27 adolescent girls from tea-picking communities in Sreemangal, in Bangladesh, to become water, sanitation and hygiene ‘Ambassadors’ in their communities. Funded by Simavi, the training

Schoolchildren wash their hands at their school’s handwashing station. Dolak, Nepal. June 2022. WaterAid/ Mani Karmacharya

covered a range of topics including how to manage their periods safely and with dignity, how to advocate for their rights with local government, and leadership on safeguarding. We also worked with 54 groups of adolescent girls in Shyamnagar, training them to help combat stigma around menstrual health.

Tiger worm toilets in Liberia

Tiger worm toilets are an innovative technology that use tiger worms to process human waste. Thanks to funding generated by staff and supply chain partners at Wessex Water we built 11 gender-inclusive toilet blocks with tiger worm bio-digesters, improving toilets for 3,520 people in eight communities in Monrovia over three years. And, alongside our partner World Hope International, in the Peace Island community of the city, we installed three water kiosks reaching 2,240 people with clean water. To ensure the sustainability of these services, we also enhanced the capacity of community leaders to improve the governance, management and operation of the community facilities.

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Kenney Kiazolu is a tiger worm toilet contractor involved in the general construction and plumbing of these toilets. West Point, Monrovia, Liberia. September 2016.

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Section 1 Priority One

Tigalana Fidah, Senior Nursing Officer, collects safe drinking water from a water purifier, provided by WaterAid, located at a busy children’s immunisation centre, Ndejje Health Centre IV, Wakiso district, Uganda. May 2020.

Building the capacity of communities, partners and governments

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Teliniaina Ranavoarisoa, Supervisor in charge at JIRAMA, stands near the upper lake in Andranofotsy, Analamanga region, Madagascar. November 2021.

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Strong institutions are fundamental to the expansion and operation of sustainable and safe water, sanitation and hygiene. We work with many different types of institutions – from government ministries to community groups – to strengthen their capacity, tailoring our support to meet their specific needs. Together, we work to identify and address key challenges across the whole water, sanitation and hygiene system.

Our commitment to capacity strengthening, combined with strategic partnerships, continues to drive long-term improvements in water, sanitation and hygiene services by empowering others.

Repairing dams in Madagascar

We worked with JIRAMA, Madagascar’s national water supply company, to repair old, leaking dams at Andranofotsy lakes, which were jeopardising water supply and amplifying flooding risk in rainy season and during cyclones. In partnership, we renovated the dams, ensuring a more resilient water service for nine villages. To ensure the project met local community needs, we facilitated dialogues between the local communities and JIRAMA to establish a sufficient water supply for crops.

We also supported JIRAMA to install 200 subsidised private water connections, benefiting 2,636 people with clean and reliable water. Following the completion of construction, we initiated a gradual handover process, transferring both the infrastructure and management responsibilities to JIRAMA to help ensure sustainability.

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City-to-city mentorship in Uganda

Through our SusWASH Programme, funded by the H&M Foundation, WaterAid Uganda played a vital role in a city-to-city mentorship between four municipal authorities – Makindye Ssabagabo, Mukono, Kira and Entebbe – and the Kampala Capital City Authority to develop investment plans which will guide future planning and prioritisation of water, sanitation and hygiene services. We equipped village health teams with the necessary knowledge and skills to collect data on people’s access to these services using electronic tools, such as mWater, which enables external stakeholders to analyse information thereby promoting transparency and sustainability. These insights will be key in ongoing monitoring and maintenance of the services to help ensure sustainability.

More powerful data collection in Mali

In collaboration with partners, and with funding from Conrad N. Hilton Foundation and One Drop Foundation, we supported two municipalities in Mali to develop an innovative data collection system for monitoring and planning water, sanitation and hygiene services. We conducted training sessions for six municipal staff members from Touna and Samabogo, and two coordinators from our partners APROFEM and ALPHALOG, on utilising the cloud-based data collection software, mWater. With our assistance, the municipalities successfully conducted a comprehensive inventory of their water points at the local level for the first time. According to the Secretary General of the Municipality Gaoussou Coulibaly, this initiative unearthed the extent of the waterpoint functionality challenges and our ability to provide sustainable, equitable

Alemu Ademe, Burie Town Water Utility Manager, in the water utility store, Amhara Regional State, Ethiopia. February 2022.

services. The findings are being used to engage all development partners to help direct investments for lasting services where they are needed the most. It is already being used by the Government as the main reference for annual development planning.

During a consultation in March 2023, the database was shared with other municipalities, sparking significant interest in expanding the scope of the initiative to the sub-regional level.

Customer boost for Ethiopia’s water utilities

With funding generated by staff and supply chain partners of Yorkshire Water, we worked in the Amhara region with four water utilities, providing tailored capacity building support, including training, mentorship, equipment, material support and micro-grants. Throughout the year, the operational efficiency of these utilities improved, resulting in an average increase of 8.4% in customer numbers and a decrease of 4.7% in ‘non-revenue’ water, which is water that is lost before it reaches the customer. Also, the utilities conducted satellite mapping to enhance their water resources management, prepared water safety plans and monitored water quality – all contributing to safer and more sustainable clean water for local communities.

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A rain gauge used by Bina Coulibaly to monitor rainfall in the village of Bougoula, commune of Touna, district of Bla, Mali. February 2019.

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Section 1 Priority One

Influencing policies

Influencing change on a larger scale is an increasingly important aspect of our approach. We work at the local, national and international levels, empowering communities and civil society organisations to call on decision-makers to prioritise investments in clean water, decent toilets and good hygiene.

By maintaining strong relationships with governments and other key sector actors, we can use our learning and evidence to influence policies, practices and resource allocation. We focus on promoting clean water, decent toilets and good hygiene for all, highlighting aspects that may receive less attention, such as menstrual health and hygiene management. Our influence takes various forms, from making recommendations to decision-makers to leveraging major events like the World Cup to amplify our advocacy efforts.

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“I never heard anyone, even the headmaster, talk about their period before the project intervened. So, if you unexpectedly got your period, you’d tell the headmaster that you were ill and go home to protect yourself and change.” – Alimata Zongo, 45, teacher at Basgana’s school, Commune of Manga, Zoundweogo Province, Centre-Sud Region, Burkina Faso. May 2023.

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WaterAid/ Drik/ Tapash Paul
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Khadija Akhter works as the Hygiene Promoter in her community. Khadija walks around the streets playing a hygiene song from her megaphone. People of all ages, especially women and girls, reach out to her for help and information on the importance of good hygiene. Sattar Mollah Slum, Dhaka, Bangladesh. November, 2021.

#ChangeTheScore sanitation campaign in West Africa

WaterAid West Africa harnessed public excitement around the FIFA World Cup Qatar 2022 to promote their #ChangeTheScore sanitation campaign, raising awareness of the 256 million people in West Africa living without decent toilets. We reached over 19 million people, with over 3,000 people getting involved, creating a community of changemakers across the region who can demand more political action on sanitation.

Improving menstrual health and hygiene in Liberia

In Liberia, we worked with partners to enable civil society to campaign for improved policy on menstrual health and hygiene. We worked with

WaterAid representatives MP Fleur Anderson (left) and Timothy Ingram (right) outside 10 Downing Street holding a box containing a selection of climate messages from the UK public to the Prime Minister. London, UK. November 2022.

the Ministry of Health to jointly launch a national campaign on International Day for Menstrual Hygiene. The campaign aimed to unite support from sexual and reproductive health and rights civil society organisations now and for the future. We also supported the Ministry of Education’s School Health Division to develop menstrual health and hygiene management guidelines, which have been implemented in all schools within the Tewor and Commonwealth Districts.

Influencing city-wide inclusive sanitation in Nepal

Working with the Asian Development Bank and using our expertise as a key player in urban sanitation in Nepal, we conducted citywide inclusive sanitation assessments in four towns. As a result of this, one municipality has developed a sanitation roadmap and guidelines for inclusive water, sanitation and hygiene in schools, and their experiences have been shared among key sector stakeholders at the national level including the government and the City-Wide Inclusive Sanitation Alliance of

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WaterAid/ Richard Raphael
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Aasha Devi Pasman makes her way to the newly completed toilet facility at Baluwatole, Lahan-5, Nepal. April 2023.

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Nepal (CIWISAN), of which WaterAid Nepal is a member.

The findings from the four assessments are now being incorporated into sanitation plans in other municipalities, and the school-focused guidelines have since been adapted by local partners for use across the country.

#OurClimateFight campaign and COP27

Our #OurClimateFight campaign advocates for governments to prioritise investment in clean water, decent toilets and good hygiene to help people withstand the effects of climate change. Ahead of the UN Climate Change Conference in November – COP27 – we mobilised more than 26,000 actions, culminating in a hand-in at Number 10 Downing Street to the UK Prime Minister. We pushed the UK Government to raise its political ambition on water and adaptation at COP27 and were delighted to have the UK Foreign Secretary as the keynote speaker for our flagship Resilient Water Accelerator (RWA) at the event.

For the first time, the final declaration of a COP meeting explicitly mentioned water. The Government of Egypt, which hosted COP27, launched the Adaptation Agenda, which lists 30 climate adaptation targets for 2030, two of which are focused on water and sanitation services. Egypt also launched the Action for Water Adaptation and Resilience (AWARe) initiative designed to make integrated water and climate action standard practice in action towards the Sustainable Development Goals and meeting the commitments of the Paris Climate Agreement.

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Section 1 Priority One

Case study Pabi Maya, Nepal

National climate plans

We have been working with national governments to understand and respond to climate and water threats. Our East and West Africa Regional Teams commissioned research analysing how water, sanitation and hygiene can be fully integrated into a country’s climate change plans. Many of our country programme teams across South Asia, Africa and Asia Pacific are working with their respective national partners to ensure that their plans are implemented so that climate-affected communities have clean water, decent toilets and good hygiene no matter what.

Resilient Water Accelerator

The RWA is our innovative financing approach currently working in two countries, Nigeria and Bangladesh, which aims to secure a diverse source of funding, including private and climate finance, to tackle the huge climate vulnerabilities and pressure on water resources, with ongoing plans to work in more countries including Ethiopia and Mozambique. At the UN 2023 Water Conference in March, the UK Government committed both initial seed funding of £270,000 to the RWA and to a much larger future funding pot of £38 million for water programming – of which the RWA will be eligible. During the conference, the Netherlands Government also backed the initiative with €200,000. The accelerator is backed by partners including the Bank of America, African Development Bank and Arup.

Hygiene for Health campaign

Our #Hygiene4Health campaign urges governments to invest in water, sanitation and hygiene to enhance health, protect against infectious diseases and shield communities from future health crises. Three key highlights from the campaign last year include:

WaterAid Ethiopia collaborated with the Ministry of Health to create and unveil a costed Hand Hygiene for All national roadmap addressing existing gaps in hand hygiene and supporting progress towards national and global commitments.

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WaterAid/ Shruti Shrestha
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Dhanpata Gudiya with her newborn baby at the maternity unit of Bardiya Hospital, Bardiya, Nepal. May 2019.

WaterAid Tanzania worked with the government to increase funding for water, sanitation and hygiene in healthcare facilities. The Ministry of Health committed to work with the President’s Office, Regional Administration and Local Government (PO-RALG) to allocate 5–10% of all health sector funds within comprehensive council health plans (CCHP), directly to water, sanitation and hygiene in healthcare facilities. Consequently, 369 healthcare facilities have seen improvements by the end of June 2023.

WaterAid UK supported an inquiry by the Water, Sanitation and Hygiene All-Party Parliamentary Group, investigating the connection between antibiotic resistance and the lack of water, sanitation and hygiene in healthcare facilities in least developed countries. The launch of the report titled Prevention First: Why clean water and hygiene are the best medicine against the spread of drug-resistant infections welcomed over 70 attendees, including 12 MPs and two members of the House of Lords in their parliamentary role. A month later, the UK Government announced a new initiative, WASH Systems for Health, with a budget of £18.5 million.

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Working
together
in Nepal
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Pabi Maya is the Chairperson of her local water supply scheme in Kalinchowk, a municipality of the Dolakha district in rural Nepal.

Before we started working in Dolakha, members of the community, like Pabi, would build their own, fragile pipelines to get water from a nearby stream to their homes.

In 2022, together with the local community, we completed work on a new water supply scheme, reaching 160 households and two schools with clean water. In addition, we supported the local water committee so they have the power, knowledge and funds to keep the taps running.

Pabi Maya Thami, chairperson of the Shilaphare Water Supply Scheme, Lapilang, Kalinchowk Rural Municipality-5, Dolakha, Nepal. September 2022. WaterAid/ Mani Karmacharya

“The best thing about this project is my boosted confidence. In the beginning I was doubtful about my own capabilities. I am proud to say that the leadership by a female member like me has been successful.”

More broadly, we also worked with local governments in Shailung and Kalinchowk to finalise their water, sanitation and hygiene plans, establishing timeframes for providing clean water to all residents in their municipalities. To support this, we offered technical training to 14 local government officials and staff. Building on our project, the local government in Shailung has already implemented and financed another water supply scheme, bringing clean water to an additional community.

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Section 1 Priority Two

Our wonderful supporters

During challenging economic times, we have been overwhelmed by the generosity of our supporters. Without you, we cannot achieve our vision of a world where everyone, everywhere has clean water, decent toilets and good hygiene. We want to say a special thank you to everyone who has supported us over the past year. Here are just a few examples of the incredible contributions our supporters have made.

People’s Postcode Lottery

Players of People’s Postcode Lottery have supported our work since 2013. Over the last year, players raised an incredible £3,000,000 towards our work in 2022–23. This level of

support has helped so many people lead more dignified, healthy and fulfilled lives. Thank you to every player of People’s Postcode Lottery. Together, we are creating lasting change for millions of people worldwide.

Carrying Life: Motherhood and Water in Malawi

In March 2023, with award-winning photographer Laura El Tantawy, we launched Carrying Life: Motherhood and Water in Malawi , a multimedia exhibition in London about the nearly one in four healthcare facilities in Malawi that are without clean water on site, leaving mothers and babies at risk of deadly infections. Thanks to the Wimbledon Foundation, we have now provided these essentials in four clinics in Ntchisi district, as part of our ongoing collaboration to bring water, sanitation and hygiene to healthcare facilities and communities in Ethiopia, Madagascar, Malawi, Mali, Myanmar and Nepal.

Carrying Life exhibition at More London Riverside. London, UK. March 2023.

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WaterAid/ Oliver Dixon
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Boosting Business Reports

Funded by Diageo, Gap Inc., HSBC, Twinings and ekaterra, we conducted a pioneering research project to show the business benefits of investing in water, sanitation and hygiene, and to encourage more companies to invest directly in these essentials and leverage their influence to persuade suppliers to act. We collected data from tea estates in India and Kenya, apparel and leather supply chains in Bangladesh and India, and agricultural smallholder farms in Tanzania.

Tetra Laval

Tetra Laval is generously supporting our work to reach 6,000 school children across 30 schools in Karachi, Pakistan with clean water, decent toilets and good hygiene. Across Karachi, Pakistan, 91% of water sources are not safe for human consumption, hugely impacting schools in the area. In addition to this, 71% of schools lack inclusive toilets resulting in thousands of children, especially girls, dropping out of school or not even enrolling. Thanks to the support of Tetra Laval, over the next three years we will be able to support young girls to achieve an education whilst providing a blueprint for water, sanitation and hygiene intervention in schools elsewhere in the country.

From boy to Ironman!

Eight-year-old Mu’awwiz has taken on a number of incredible challenges to support communities around the world. From cycling events to a Half Ironman Triathlon, Mu’awwiz’s boundless energy and updates on his JustGiving page have raised thousands for our work and inspired others.

“It is sad to think many people around the world still don’t have access to clean water or decent toilets. We have to help!”

Ray Heslop: 40 years of dedication

Ray Heslop, water engineer and WaterAid volunteer, dedicated his life – and legacy – to clean water. Ray played a crucial role in shaping our early days in the 1980s as a volunteer with his local WaterAid committee. After retirement, Ray worked first as a technical advisor to provide clean water in Sierra Leone, and then alongside communities worldwide, as well as regularly speaking at industry events.

Even at 80, he travelled weekly from north-east England to WaterAid HQ in London, to answer technical queries from students, engineers and other organisations.

Sadly, Ray passed away this year and will be sorely missed by the WaterAid family. We are deeply honoured that so many people, like Ray, choose to add WaterAid to their wills. These gifts are vital in helping to reach everyone, everywhere. Ray’s legacy means his lifelong commitment to clean water will continue to help future generations thrive.

Bagging munros for our vital work

Scottish Water took part in the WaterAid Munro Challenge last summer, where hundreds of people conquered 35 of Scotland’s highest peaks – ‘munros’ – in just one day to raise an incredible £35,000 for communities in Malawi. Inspired by the event, Andrew Walker, Head of Communications at Scottish Water, also took on a personal challenge to ‘bag’ 40 munros for WaterAid, raising a further £2,470.

“Fundraising by doing things like climbing and hiking can make a real difference in countries where people have to walk long distances to access clean water.”

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WaterAid/ Brendon Foster
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Ray received the WaterAid President’s Award in 2018, for his outstanding contribution and lifelong work helping communities to get clean water. Pictured with Tim Wainwright (left), WaterAid’s Chief Executive, and Tim Clark (right), then-Chair.

Speaking up for WaterAid

Our volunteer speakers delivered 629 talks and workshops to over 36,000 people the UK and around the world. We are hugely grateful to people like Perminder Balu who have been spreading the word about the importance of clean water, decent toilets and good hygiene.

“As a child of Indian immigrant parents, I witnessed the stark contrast between developed countries’ strong economies and the lack of opportunities for girls without access to toilets and clean water. My mother, like many, never attended school but instead carried water. I strive for a future where children won’t face the same challenges.”

The White Horse Challenge Team

In 2004, Fergal and friends climbed Kilimanjaro in Africa and witnessed the urgent need for clean water and sanitation. They organised their first cycling event, Ride the Ridgeway, which evolved into the White Horse Challenge by 2007. This year, the Challenge raised £7,500, bringing their group’s total fundraising to an incredible £160,000.

16 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 17

Section 1 Priority Three

Our people

We are committed to supporting our staff to reach their fullest potential, prioritising both their physical and mental wellbeing. At the same time, we focus on identifying, developing and recruiting the skills essential to delivering our new Global Strategy. This commitment to growth extends to our organisation as a whole, as we strive to become an ever-more diverse and inclusive global team.

Responding to our employees

Wellbeing and good mental health for all

In last year’s global employee engagement survey, of 1,178 staff responders, 91% would recommend WaterAid as a good place to work and 95% felt proud to work here. We remained focused on improving how we collaborate and work more effectively as a global organisation, ensuring that decisions are made by those best placed to make them; and developing our leaders to further empower our staff.

WaterAid UK prioritised wellbeing and good mental health with its second annual Wellbeing Day. Staff engaged in webinars, local activities and heard personal stories from senior leaders. During the year, line managers undertook eLearning courses on supporting teams and their own wellbeing. Psychosocial support services were established for mental health access in WaterAid UK regions. A new series of our ‘Let’s Talk’ podcasts expanded to address diverse topics, reducing stigma and raising awareness of mental health issues.

The value of courage

Our annual week to celebrate and recognise our values last year focused on courage. Through the lens of our 2022–2032 Global Strategy, we explored why courage is so crucial to our mission and recognised 43 individuals and teams across 34 countries for demonstrating our values in their work by awarding them a Global Value Award.

Responding to rapid increases in the cost of living

We supported staff during global economic turbulence caused by COVID-19 and the war in Ukraine. Nine countries triggered the economic turmoil policy, including Pakistan which experienced high inflation due to political unrest.

A diverse team, united in our mission

Keeping our people safe

Our new Global People and Culture Strategy, developed in collaboration with staff from across the federation, aims to create an inclusive organisation that prioritises the wellbeing of our diverse and talented staff. We emphasise global unity, personal growth and collective efforts to end the water, sanitation and hygiene crisis.

We prioritise the safety of our staff, partners and the communities we work in. Regional working groups addressed topical risk management, such as election contingency planning in West Africa. A proactive risk-led programming approach was implemented in high security-risk areas.

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WaterAid/ Ben Roberts
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WaterAid volunteers at the WaterAid stand shop, Glastonbury, England. June 2023.

Building a culture of respect and inclusion

Resourcing our strategy

To deliver our ambitious new Global Strategy, we need the right people, with the right skills, in the right places, at the right time. Last year, we conducted a comprehensive people planning exercise across all teams and countries. We identified existing talent and recognised the need to develop skills in advocacy, influencing and climate change. We mapped where the talent is that we need, aiming to build talent pools in required areas. We also strengthened our arrangements to manage global secondments and access talent in countries where we are not registered, ensuring flexibility in employing staff where needed.

We established the global Power and Diversity Steering Group to lead our journey to strengthen our diversity and inclusiveness and address power imbalances. The group drives the One WaterAid programme of five priority areas for change: diversity and inclusion; culture and change; organisational structure; decision autonomy; and resource allocation. Commitments to diversity, equity and empowerment were developed alongside virtual workshops and e-learning to deepen awareness and allyship. An internal e-magazine called Belonging was launched to amplify voices, share updates and promote wellness through a diversity and inclusion lens.

Accelerating towards 2030

The Accelerate to 2030 leadership development programme was redesigned to align with the new strategy, focusing on agility, empowerment and decisiveness. A virtual retreat experience called Accelerate Connections fostered better connections, learning and collaboration among senior leaders.

18 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 19

Section 1 Looking forward

Looking forward to 2023–24

This year (2023–24) is the second and final year of transition to our ambitious Global Strategy (2022–2032).

change campaigns, defining the link between hygiene behaviour change for public health and building these into existing public health programmes, for example immunisations and maternal health.

Our priorities for the coming year combine efforts that continue to accelerate work in two strategic areas with strengthening and adapting key foundational factors:

Work with governments to give water, sanitation and hygiene the funding required within health plans and budgets.

Priority 1: Embed and grow our work building communities’ resilience to the impacts of climate change through sustainable and safe water, sanitation and hygiene. To do this, we will:

Priority 3: Embed our new Global Measurement Framework for assessing progress against our strategy. This will enable us to see and understand the impact we are having at national and global levels, capture key achievements and learnings, and continue to innovate with communities, partners and governments as we strive towards our mission.

Priority 4: Invest in growing our income in the most cost-effective way to increase the overall funding for our work. To do this, we will:

Priority 5: Continue to prioritise our people and support our staff to be their best. To do this, we will:

Priority 2: Accelerate progress on the prioritisation of water, sanitation and hygiene in healthcare settings and among the health sector more broadly. To do this, we will:

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Anjali, who has a visual disability,
washing her hands with soap and
water at her school’s handwashing
facility. Lahan, Nepal. July, 2022.
WaterAid/ Govinda Subedi
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20 / WaterAid UK Annual report 2022–23

Section 1 Your support

Thank you

Your support is the lifeblood of our organisation. The passion of individuals and organisations for our vision of clean water, decent toilets and good hygiene for everyone, everywhere, drives everything we do.

There is not enough space to thank everyone, but please know that our heartfelt gratitude extends to all those who supported WaterAid last year.

COMPANIES AND PARTNERS

Apex

Belu

Diageo

Canary Wharf Group

DP World

Eversheds Sutherland

GAMA Healthcare

Giorgio Armani Beauty Glastonbury Festival Halma plc HEINEKEN Africa Foundation

Kimberly-Clark

Sulzer

The Wimbledon Foundation

Unilever

Yondr Group

Tefy, Satriniaina and Salohy wash their faces at the handwashing station in their school, Madagascar. January 2023.

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WaterAid/ Ernest Randriarimalala
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UK WATER INDUSTRY STAFF, SUPPLY CHAIN AND CUSTOMERS

Affinity Water

Anglian Water Alliance partners – Beacon project Anglian Water Services Ltd Bournemouth Water

Bristol Water Plc

Dŵr Cymru Welsh Water Environment Agency Essex and Suffolk Water

Northern Ireland Water Northumbrian Water Ltd

Scottish Government International Development Fund

Scottish Water

SES Water

Severn Trent South East Water South Staffs Water South West Water Southern Water Thames Water United Utilities Welsh Water Wessex Water Yorkshire Water

PHILANTHROPISTS, TRUSTS AND FOUNDATIONS

Fondation Prince Albert II de Monaco

Lord Howard Leigh Matt and Amy B Michael Pugh

Players of People’s Postcode Lottery Sharegift

Stiftung Drittes Millennium Tetra Laval

The Alchemy Foundation The Constance Travis Charitable Trust The Dinswade Trust

The Reo Stakis Charitable Foundation The Waterloo Foundation The Zochonis Charitable Trust

LEGACY GIVERS

All the individuals who kindly left a gift in their will.

Patricia Hobbs

INDIVIDUAL AND COMMUNITY SUPPORTERS

Arnab Chakraborty David Fortune

DON’T WALK Charity Fashion Show Mary-Anne Dyer

Mu’awwiz Anwar New English School Ripon Grammar School Rotary Clubs of Great Britain and Ireland

Sing for Water choirs

White Horse Challenge fundraisers All of our wonderful volunteers

INSTITUTIONAL FUNDRAISING

African Population and Health Research Centre Burnet Institute

Cowater International

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

Dutch WASH Alliance/Simavi European Commission

Foreign, Commonwealth and Development Office (FCDO)

Global Challenges Research Fund

India, Brazil and South Africa Facility for Poverty and Hunger Alleviation (IBSA Fund)

Irish Aid

Japanese International Cooperation Agency KFW Development Bank

London School of Hygiene and Tropical Medicine – Sustainable Climate Impact Fund

Osprey Foundation

Punjab Rural Municipality Services Company Riksinsamlingen Världens Barn

Solidagro

Swiss Agency for Development and Cooperation Swedish International Development Agency

Swedish Operakällaren Swedish Postcode Lottery Swedish Radio Appeal Board Swiss Water Partnership UNICEF

United Nations Development Programme (UNDP)

22 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 23

Section 1 Financial overview

Financial summary

Unrestricted funds

Income

We ended the year with an unrestricted deficit of £1 million which reduced our operational reserves at the end of March 2023 to £23 million (2022: £24 million). This is above the target minimum range of £13-17 million which we will draw on to manage future risks associated with the current economic environment and to invest in our strategic priorities. More detail on our reserves policy can be found on p32.

Total income in 2023 was 3% higher compared to the prior year, driven by increased income from legacy gifts, fundraising events and grant funding for specific activities. This offset the drop in donations from individual givers, major donors and trusts that were all negatively affected by uncertainty in the economic environment. Unrestricted grant income from other members also fell due to changes in government and their approach to international aid.

Restricted funds

Giving from individuals continued steadily and companies and philanthropic organisations supported our work with greater generosity than we planned for. We are immensely proud of and grateful for this, as it has a direct impact on our ability to respond to the difficult circumstances experienced in the countries where we work.

Restricted funds of £13.6 million represent funds that have a specified purpose as expressed by the donor. Expenditure is charged to the specific fund in line with the terms of the donor contract. The trustees have no discretion to allocate the funds to any other use.

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Total
income
£94.5m
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Other income

£0.7m

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24p
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In every £1 spent 76p went on delivering services and making change happen and 24p went on fundraising and governance.

Expenditure

Reserves

Total expenditure increased by 14% on the previous year. Spending against already secured funds increased as project delivery activities in communities returned to pre-lockdown. The expenditure includes costs for transition to the new Global Strategy and country programmes improved their spend compare to previous year. Going into 2023–24, the challenging environment to deliver sustainable and quality programmes of work continues, political instability and insecurity in some countries, war in Ukraine affecting critical supply of goods (especially to Africa) and weakening global economics contributing to rapidly rising inflation.

We had planned to end the year with a small surplus but ended the year with an unrestricted deficit of £1 million reducing our operational reserve. However, our operational reserve at the end of March 2023 was £23 million (2022: £24 million) above the target minimum range of £13–17 million. We will draw upon this excess to manage future risks associated with the current economic environment and to invest in implementing our Global Strategy.

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Total
expenditure
£96.4m
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Fundraising 24%

Supporting partners to deliver water, sanitation and hygiene 36%

23%

Income and expenditure 2018–2023

Fund balances

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2018/19 2019/20 2020/21 2021/22 2022/23
Income Expenditure
£95m £95m £96m
£91m £91m £90m £92m
£85m £85m
£83m
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As at the end of March 2023, the closing total charity funds were £42 million, made up of the following:

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General funds
£22.8m
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----- Start of picture text -----
Designated funds
(Fixed assets
fund) £5.7m
Restricted funds
£13.4m
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24 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 25

Section 2 Key policies and processes

Section 2

Key policies and processes

Safeguarding

Our commitment

We are 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 (wateraid.org/uk/publications/ global-code-of-conduct), which sets out our high standards of expected behaviour, and explains what will happen if these standards are not met.

Safeguarding activity

We ensure all reports of misconduct are fully investigated by trained staff, with a survivorcentred approach, and that appropriate actions are taken to protect and safeguard everyone involved.

During 2022–23, our Global Safeguarding Team received reports of 28 safeguarding concerns from across the WaterAid federation. Of the 28 global safeguarding cases raised 20 related to WaterAid UK directly. When reporting safeguarding cases, we report data from across the WaterAid federation due to the transferable risk that safeguarding issues potentially expose all members to. All cases are managed centrally by a federation wide professional safeguarding team.

We resolved seven cases following an initial safeguarding review and 21 cases led to a safeguarding investigation. Of the 21, one case relating to organisational misconduct by a staff member, and two incidents of physical abuse against WaterAid volunteers, were reported to the Charity Commission, who were satisfied with our investigations and recommendations.

12 cases were found to be unsubstantiated or unfounded due to insufficient evidence; and no reports were found to be malicious.

The outcome of the findings led to the following actions:

Two staff members were dismissed.

One member of our contractor staff received a written warning.

One visit from our Global Safeguarding Team for additional training and support.

One thorough learning review with improvements to how we classify, define and respond to safeguarding incidents.

Other cases led to the development of personal welfare plans, risk management plans, individual action plans and recommendations for training.

The number of cases reported this year is higher than the previous year and we believe this is a positive reflection of increased confidence to report. However, given the scale of our operations and partnerships, and the challenging contexts in which we work, we recognise there is likely to be a degree of underreporting. We remain committed to improving and strengthening our safeguarding reporting and responses with the partners and communities we work with.

Governance

Each WaterAid federation member has appointed a safeguarding trustee who ensures WaterAid Boards achieve their safeguarding responsibilities.

Our Global Head of Safeguarding provides written reports to all WaterAid Boards, attends the WaterAid UK Board meetings, and liaises regularly with our safeguarding trustees.

A federation-wide safeguarding audit this year confirmed that safeguarding is adequately controlled. An internal audit found the whole federation, including WaterAid UK, has taken a robust and effective approach to safeguarding, supported by senior management and the WaterAid Boards.

Training and awareness

We have a global network of over 30 Safeguarding Focal Points, who have engaged with communities via local radio, created safeguarding champions within communities and community water, sanitation and hygiene committees, and helped to contextualise safeguarding by working with communities on reporting mechanisms and campaigns.

Strengthening the sector

We were actively involved in the development of InterAction’s Core Standards for Survivorcentred Support of Sexual Exploitation, Abuse and Harassment and we have updated our policies to reflect these standards.

We actively shared our experiences of safeguarding at global conferences and within local safeguarding networks in many of the countries where we work.

For more information, please see our Safeguarding page at wateraid.org/us/ safeguarding-at-wateraid

Modern slavery

Our full Modern Slavery statement is available at wateraid.org/uk/modern-slavery-statement. It outlines our commitment and coordinated action in relation to the Modern Slavery Act 2015 in respect of our policies for staff and partners, and our operations and supply chains. During the year, we updated the Global Ethical Standards and Policy, which explicitly references modern slavery and human trafficking. Any concerns around modern slavery or trafficking are reported, recorded and dealt with through safeguarding procedures. During 2022–23, no safeguarding concerns about modern slavery were reported.

Diversity and inclusion

Everything we do is guided by our values of respect, collaboration, accountability, innovation, courage and integrity. We treat everyone with dignity and respect, and champion the rights and contributions of all to achieve a fairer world. We are passionately committed to being an organisation where everyone is welcome, respected, included and empowered to be their best.

We represent and celebrate the diversity of our staff, partners and everyone we work with, and seek to create a culture where everyone can reach their full potential and bring their unique and valuable contribution. We act with honesty and conviction and our actions are consistent with openness, equality and human rights.

We have policies in place to ensure we give candidates, existing staff and volunteers equal opportunities to succeed, and we are registered as a Disability Confident employer in the UK. We support flexible working and encourage staff to develop to match their circumstances and aspirations. We are dedicated to achieving the highest standards of diversity, equity and inclusion and welcome people of all backgrounds, beliefs, customs, traditions and ways of life to work with us. This includes, but is not limited to, race, gender, disability, age, sexual orientation, religion, national or social origin, health status, and economic or social situation.

Anyone can raise a safeguarding concern by contacting the Global Safeguarding Team on +44 (0)207 793 4468 or at safeguarding@wateraid.org You can also report concerns to our independent whistleblowing service, Safecall.

26 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 27

Section 2 Key policies and processes

Section 2

Key policies and processes

Managing risk

We work in countries where a level of risk is inevitable. We have an active risk management process in place to make sure appropriate steps are taken to manage and mitigate risk across the organisation.

The Board of Trustees and Directors team have been clear that the areas where risk should be assessed most cautiously relates to the health, welfare, safeguarding and security of people and the reputation of WaterAid. In other areas, there is an evaluation of risk and reward before taking opportunities. Managed risks will be taken where there is a reasonable basis for believing that this will be to the benefit of people in relation to clean water, decent toilets and good hygiene.

The Board of Trustees has overall responsibility for ensuring that we have a system of internal control, management and audit to take advantage of opportunities and manage risk effectively. Assessment of risk and opportunity is central to WaterAid’s decision-making processes, planning and monitoring.

Our process

Multi-year planning and budgeting which focuses on milestones linked to delivering the Global Strategy.

Financial reporting which compares results with the budget on a monthly, quarterly and yearly basis.

Value for money principles which guide when and where we source goods and services, how we benchmark salaries, and our policies on investment and reserves.

Significant risks in the

year under review

The high risk areas we identified in our business planning and operations were related to the effects of unstable global politics and severe economic challenges, as the war in Ukraine intensified, drawing attention away from sustainable development objectives.

Global economy: The war in Ukraine and continued recovery from the impact of COVID-19 caused major disruption to the global economy, with significant risk of global recession. High inflation rates increased the cost of delivering programmes as well as impacting individuals’ spending choices and affecting corporate and institutional decisionmaking.

Delays and disturbances to programme delivery: Disruption and delays to delivering on programme commitments, due to political instability and security issues as well as the impact of extreme weather events.

Main risks for the

year ahead

Global economy: Inflationary pressures are affecting our ability to deliver planned work to agreed budgets. This relates to UK and overseas purchased goods and services as well as pay costs. The increased cost of living is also negatively impacting the number of new regular givers we can attract, putting future unrestricted income growth under pressure.

Staff retention and critical skills shortage: We operate in a highly competitive job market so there is a risk that we cannot retain staff and find it difficult to recruit the talent required to deliver the strategy. We continue to retain staff through a good working environment and regularly benchmark our pay. We recently launched a staff representation forum, which will help us better understand reasons for any staff dissatisfaction and if staff retention drops.

Safeguarding and security: Risk of harm

to people due to a safeguarding or security incident continues to be an elevated risk. Global leads for safeguarding and security are in place along with trained safeguarding and security focal persons in all countries. The security environment is worsening in some WaterAid countries, which impacts our ability to deliver in some districts where we work. Staff in high-risk countries receive additional training including insecurity sensitive programming training, which is focused on West Africa.

Systems and cyber security: As demonstrated by the recently detected hack of the UK electoral register, cyber security breaches are still a high risk to any organisation. We have invested in several new technologies that are monitored 24/7 including Multi Factor Authentication. We have also been boosting our staff and training awareness program focusing particularly on Phishing and Ransomware. WaterAid are Cyber Essentials Certified and we remain committed to continuing to improve our security posture to ensure our staff and stakeholders operate safely.

Ability to operate: Challenges to register as an NGO/INGO or strict admin/programme spend requirements make compliance to

country-specific regulations challenging. There is increased reputational risk for INGOs within some of the countries where we deliver our work.

Our public fundraising approach

We raise a significant percentage of our funds from the public and our primary aim is to ensure we do this in a respectful and inspiring way, consistent with our core values. We also support measures that will improve public trust and support for fundraising in the charity sector as a whole.

In order to raise funds and awareness and enable supporters to get involved, we rely on a variety of different activities including – fundraising over the telephone, through letters and emails and by television, digital and press advertising, from legacies, events and community fundraising and from philanthropists, trusts, foundations, public sector bodies and corporate partners.

We speak to many supporters by telephone each year, if they have given prior consent for this. We use a professional telephone fundraising agency, Angel, to carry out this work on our behalf in accordance with our own high standards and sector regulation. We closely monitor our agency’s compliance, training and call quality to ensure we provide our supporters with the best experience. We use an independent assessor to monitor a minimum of 2% of calls made, providing the agency with detailed feedback and training actions where appropriate. Should a call fail to meet our quality expectations, we will take immediate action such as removing a fundraiser from the WaterAid account pending retraining, or permanently for more serious call quality concerns.

We provide training on vulnerability to Angel fundraisers every quarter and campaign managers do separate training for any appeals being managed at Angel. As part of their induction to working on a WaterAid campaign, all Angel fundraisers are required to sign a Code of Conduct stating they will protect people in vulnerable circumstances and uphold WaterAid high standards in their fundraising.

28 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 29

Section 2 Key policies and processes

Section 2

Key policies and processes

We have quarterly reviews with Angel to discuss performance. Campaign managers have more frequent calls when campaigns are live and we have fortnightly calls to discuss call quality.

To ensure our telephone fundraising is of the highest standard, we run a full tender every three years to ensure we partner with an agency who can deliver the exceptional quality our supporters expect.

You can learn more about our approach to telephone fundraising at wateraid. org/uk/ telephone-fundraising

To protect potentially vulnerable supporters, all new fundraisers who join WaterAid must complete the mandatory Fundraising Compliance Induction training, delivered by the Fundraising Compliance Team, on protecting people in vulnerable circumstances, what vulnerability means and how to recognise and respond appropriately to a potentially vulnerable supporter.

You can read our Vulnerable Supporter Policy, informed by industry guidelines, on our website at wateraid.org/uk/our-fundraising-promise

As per our Privacy Policy, we provide supporter details to agency partners fundraising on our behalf. However, we do not give or sell our supporters’ details to anyone else, and we do not contact people from ‘cold’ lists.

Whenever a partner fundraises on our behalf, we put in place data sharing agreements to ensure the security and fair processing of personal data in accordance with the General Data Protection Regulation (GDPR). When considering a new partner who would process personal data, we also conduct a Data Protection Impact Assessment to identify and mitigate any potential risks to that data.

seriously and are committed to protecting our supporters’ personal information. You can read our Privacy Policy on our website at wateraid. org/uk/privacy-policy

We are registered with the Fundraising Regulator and pay an annual levy as required. We support public consultations on their Code of Fundraising Practice, work diligently to ensure compliance with the Code and champion its standards across all our fundraising, and adhere to the requirements of the Fundraising Preference Service.

It is vital that we communicate with our supporters in the manner they prefer, respecting their privacy and communication preferences. We actively encourage supporters to contact us with any feedback, and we give complaints our utmost attention, to help us improve our fundraising approach.

During 2022–23, we made 4,734,961 contacts using email, mail, telephone and SMS.

We received 146 complaints about our fundraising, 0.003% of the total contacts we made. These were 78% of all complaints received. Our Supporter Care team investigates every complaint, responding within three working days. We do all we can to resolve complaints and ensure that supporters are happy to be part of our work. The key causes were direct mail (58%), television advertising (14%) and online activity (14%).

Data protection

The UK GDPR sets out the responsibilities that organisations in the UK have in relation to the personal data they process.

We adhere to the principles of the UK GDPR and have the structures in place to support them. We maintain high standards but acknowledge that compliance is a continual journey and we always strive to make improvements wherever we identify opportunities.

We take privacy seriously so that our supporters can trust us with their data. We always demonstrate our accountability to the principles of the UK GDPR and have the following in place to help protect personal data:

For more information on how we use and protect personal data, please see our Privacy Policy at wateraid.org/uk/privacy-policy

We are members of the Chartered Institute of Fundraising and the Direct Marketing Association and endorse the formation of best practice standards and guidelines for the sector, which we also help to define. We take privacy

30 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 31

Section 2 Structure

Section 2

Structure

Managing our finances

Reserves policy

Our reserves policy seeks to retain a level of readily accessible funds within an operational reserve of unrestricted monies to mitigate financial risks identified in the risk management plan. The target for the operational reserve is reviewed on an annual basis and for 2022–23 the minimum target range was £13–17 million. The operational reserve at the end of March 2023 was above this range, at £23 million. We expect a deficit in the current year, due to the lower income projections, inflationary pressures on expenditure and also investments we want to make in our strategic priorities. We expect these factors will bring reserve levels closer to the target range.

The majority of our unrestricted income is generously donated by individuals through regular gifts, legacies or fundraising events. Throughout the year, cost of living pressures continued to challenge our fundraising ambitions. At the same time, high levels of inflation in most countries where we work put pressure on our ability to deliver our programmes within budget. We had planned to end the year with a small surplus of £0.2 million but ended the year with an unrestricted deficit of £1 million primarily due to more restricted and less unrestricted income from other members than planned.

Total funds at 31 March 2023 were £42 million, of which £13 million was in restricted funds. Restricted funds are received from governments, trusts, foundations, corporations and individuals – the restrictions that these partners place on the funds they give us can range from a focus on a region, theme or country to a high degree of restriction, such as a specific project in a particular country. These monies are dedicated to specific programmes and the Trustees have no discretion to reallocate them to other uses. Restricted funds received in one year are carried forward into future

years where the criteria for applying them to particular programmes have yet to be met for compliance with the funder’s conditions.

We aim for as much flexibility in our funding portfolio as we can achieve, working in partnership with those that fund us. We are stringent in our management of all our funding, whether restricted or unrestricted.

Investment policy and performance

We hold short-term investments and cash. The objective of our investment policy is to limit risk as far as is possible while earning such interest as is available on very secure deposits. Accordingly, our investment policy is to hold cash or invest in short-term liquid deposit accounts only at those banks with a high credit rating. We don’t invest in stock and shares.

Our cash balances were similar to the previous year, but due to increases in the interest rate in the UK, investment income increased to £379,000 in 2022–23 (2022: £20,000); we expect improved rates of return on cash balances to continue in 2023–24.

Going concern statement for 2022–23

As required by the Charities Statement of Recommended Practice (FRS 102), we assess whether there are any uncertainties that may cast doubt over our ability to continue as a going concern. For this purpose, we focus on a period of at least 12 months following the signing of these accounts, so the period to at least the end of November 2024.

Our annual budget and plan, approved by the Board in March 2023, represents management and the Board’s best forecast of the fundraising targets and key income streams, alongside the expected cost base for the years to 31 March 2024 and 31 March 2025.

This budget forms the base case for our going concern assessment. In addition, we have undertaken scenario modelling to understand the impact of various income downsides and

cost pressures on our future expenditure both at a UK and country programme level. We have modelled several scenarios that when compared to the budget assumptions reflect lower income and a higher cost base.

We have also prepared an acute or ‘worst case’ scenario, which combines high inflation with a prolonged cost of living crisis affecting stock and property prices, a material reduction in regular giving and no continued funding received from Peoples Postcode Lottery.

Although the impact of the acute scenario is severe and would require the consideration of mitigating actions which are wholly within our control to reduce our discretionary cost base, the analysis indicates that the Group would have sufficient liquidity and reserves to honour our committed funding obligations and to maintain sufficient liquidity throughout the going concern period.

Robust monitoring processes are in place to ensure that the organisation is able to react quickly to any downturn in income and the short term deposit investments held can be liquidated quickly in the event that they are required. The Group currently has no bank financing or loan agreements and therefore there are no covenants to consider.

The Group will maintain its investment and cash reserves within its target range of £13–17 million. As at 31 March 2023, the Group had managed cash and investments of £23 million, well above the target minimum liquidity that the Trustees have set in order to remain in a financially stable position.

Taking into account our current position and our principal risks, the Trustees have a reasonable expectation that the Charity will be able to continue in operation and meet its liabilities as they fall due over the medium term. Accordingly, the Group expects to continue to have access to sufficient liquid resources to meet its obligations for a period of at least 12 months after the approval of these financial statements, namely the period to November 2024 and the Board therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

32 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 33

Section 2 Structure

Section 2 Structure

How we operate

WaterAid is a global federation of which WaterAid UK is a member. There are six other members in America, Australia, Canada, India, Japan and Sweden. All federation members are independently constituted organisations with their own boards. WaterAid UK receives funding from other members of the federation to deliver services and make change happen. At the same time, WaterAid UK invests in other members to support their future growth. WaterAid UK also funds part of the running costs of WaterAid International – a requirement of all members.

Legal structure

WaterAid was established by Trust Deed on 21 July 1981, incorporated on 30 January 1984 and registered as a charity in England on 22 February 1984. WaterAid registered as a charity in Scotland on 3 April 2008.[iv] WaterAid has a Memorandum which sets out the objects and powers of the organisation and is governed in accordance with its Articles of Association.

WaterAid is a company limited by guarantee, under which the members each undertake to contribute £1 in the event of the company being wound up. At 31 March 2023, there were 44 company members. WaterAid UK is a member of the WaterAid federation. WaterAid International was formed in 2010 and is the secretariat for the federation, holding the WaterAid trademarks and licensing members of the federation to use those marks. WaterAid International accounts do not require consolidation into WaterAid UK accounts as WaterAid UK does not exercise control or significant influence over WaterAid International.

iv xxxxxxxxxx

Trading company

The principal activity of WaterAid Trading Limited (“the Company”) is identifying and undertaking commercial licensing deals. WaterAid Trading Ltd made a net profit of £310,894 on a gross turnover of £439,000. A deed of covenant is in place whereby all profits generated by the company are gift aided to the parent charity. This trading company is wholly owned by WaterAid which primarily operates the sub-licensing agreements that WaterAid enters into but also sells goods.

Organisation structure

WaterAid has an office in London where the Chief Executive and a team of five Directors and the Internal Audit and Compliance department are based, alongside the secretariat for WaterAid International. The Directors are responsible for the Departments of International Programmes; Policy and Campaigns; Finance and Information Technology; Communications and Fundraising; and People and Organisational Development.

As of 31 March 2023, WaterAid had offices, registered as branches of the UK company, in 22 countries in Asia and Africa.

Country Directors and Team Leaders in each branch report into a Regional Director. All are appointed by and accountable to the Director of International Programmes. Country Heads of Finance report to the Country Directors and have a dotted line to the UK-based Director of Finance and IT. WaterAid also works in partnership with civil society networks and other organisations in countries where there is no WaterAid presence.

Carbon report

The annual quantity of energy we have consumed is 213,958 kWh and the amount of carbon dioxide we have emitted is 41,375 kg. These quantities have been calculated using our office online energy portal, which links to our on-floor energy meters. Our intensity ratio was 118.89 kg – CO2/staff member

(41,375 kg CO2/348 staff) compared to 125.69 kg last year. The reduction in carbon output is marginal but reflects the ongoing underoccupancy of our office space as we migrate to a new hybrid way of working. The intensity ratio has reduced from 2020 (base year) by 37%. As we further develop our approach to hybrid working, we continue to assess how to maximise the use of our office space while liming our carbon impact.

and address risks, and will give us credible evidence that will form the basis for our global sustainability disclosure.

WaterAid UK’s Board of Trustees

The Board of Trustees governs the organisation in line with its Articles of Association, vision, mission, values, aims and charitable objectives and provides overall policy direction. The Board is responsible for compliance with the legal and statutory requirements of a UK charity and of a registered company. We have a conflicts of interest policy and procedure, and a register of interests is held by the Company Secretary. Trustees and senior management are expected to sign a declaration when they join and update this annually.

We are committed to the highest standards of governance and seek to make continuous improvements in line with the principles set out in the Charity Governance Code. Overall, we meet all applicable areas of key compliance of the Charity Governance Code. In December 2020, the code was updated to include a new principle on Equality, Diversity and Inclusion, and in the same month the Board of Trustees committed to delivering on a new antiracism and diversity framework. In the framework, we commit to being an antiracist organisation where diversity is celebrated.

In 2021, a Trustee was assigned to lead on equity, diversity and inclusion, ensuring an effective approach throughout the organisation and in its own practice as a Board. Managing safeguarding and security risks are also priorities for the Board of Trustees.

Following an amendment to our Articles in 2017, Trustees elected since then serve a fouryear term (renewable once). In occasional circumstances, these periods may be further extended to retain specific skills.

The Board of Trustees has four sub-committees:

1. The Audit Committee promotes and safeguards the highest standards of integrity, financial reporting and internal control. It also oversees the organisation’s risk management

34 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 35

Section 2 Structure

Section 2

Structure

processes, IT and communications systems, capital spend projects, office occupancy strategy and internal and external audit.

2. The Nominations and Governance Committee ensures that candidates of the highest calibre are put forward for election to the Board of Trustees to achieve an appropriate and diverse mix of skills and experience across the Board as a whole.

3. The People Committee reviews the development of our people management policies and practices including our salary policy, with a particular focus on executive remuneration.

4. The Communications and Fundraising Committee oversees and monitors fundraising procedures, policies and activities. It also provides advice on activities that may pose financial, regulatory or reputational risk.

All these committees have terms of reference published in the governance manual, which is on our website. An induction programme is held for Trustees joining the Board. Trustees are invited to participate in seminars with staff as well as being expected to visit our work to familiarise themselves with our operations. As part of the development of the Board, a Board evaluation is held biennually and individual Trustees are performance assessed each year.

The members of the Board of Trustees who have served during the year are listed in the Board of Trustees section on page 40, together with the President, Vice President and Directors team.

Day-to-day management of the charity is delegated by the Trustees to the Chief Executive. The planning and reporting arrangements in place give Trustees confidence that the charity is being managed effectively.

Registers of interests

We keep Registers of Interests for all Trustees and Directors that we regularly review and update as required.

Section 172 (1) Statement of Directors’ duties

WaterAid UK is governed by the charitable objectives which set out the purpose and mission of the charity. The consequences of all decisions and activities of WaterAid are assessed by how they drive us towards achieving that long-term purpose. As Company Directors, the Trustees must act in accordance with duties outlined in section 172 of the Companies Act 2006, summarised as follows:

A Director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. As a charity we are accountable to our members – people who support us and engage with us. In this regard, our members are:

staff and volunteers;

those who provide us with resources to deliver, and those who partner with us to achieve, our vision of water, sanitation and hygiene for everyone, everywhere.

In doing this, Directors have regard (among other matters) to:

The impact of the company’s operations on the community and the environment:

At WaterAid, we believe everyone has equal rights, regardless of who they are, or where they live. It is vital that our communications are authentic and do not distort reality. It is also important that these campaigns, and their representations of the people we work with, are respectful, accurate and consensual. To further strengthen this area, Trustees have supported the development of a new policy and guidance.

The reputation for a high standard of business conduct:

We are the world’s leading non-governmental organisation in the water, sanitation and hygiene sector; working with partners and alliances is central to our vision of clean water, decent toilets and good hygiene for everyone, everywhere. The Board of Trustees has paid particular attention this year to the update of the Global Ethical Standards, which ensures that we form financial and non-financial partnerships that align with our values and do not undermine the achievement of our mission or lead to loss of support and credibility through risks to our reputation.

The interests of the company’s employees:

The People Committee review our work on reward across all WaterAid UK countries and endorse proposed pay awards, which are factored into budgets. In this economically challenging year, attention was paid to pay awards that provide competitive salaries but are balanced by our need for affordability. While we do not aim to match inflation and cost of living rises, Trustees responded by considering the impact on staff from the rapidly market movement, particularly at junior grades this year.

The need to foster the company’s business relationships with suppliers, customers and others:

An update to the Global Ethical Standards Policy was published in December 2022, which details an ethical checks process for key funders and suppliers to ensure we are working with organisations that align with our values and commitments.

The need to act fairly between members of the company:

During the year the Staff Representation Group was launched. The purpose of the group is to

to show behind the curtain of leadership thinking and decision making,

to represent staff in formal consultations and key decisions that affect staff,

The likely consequences of any decision in the long-term:

In September the Board attended a seminar to reflect on what the new strategy will require of them and therefore the skills, perspectives and ways of working needed on the Board during the next 5-10 years. Specifically the Board discussed, key decisions that could come to the Board in the next few years, the skill sets required to provide good governance during this period any changes the Board needs to make to meet our commitment in the new Global Strategy on diversity and representation. As a result the governance manual has been updated to reflect the skills required on the current Board to drive Trustee recruitment.

36 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 37

Section 2 Structure

Statement of trustees’ responsibilities

The Trustees (who are also Directors of WaterAid for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulation.

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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company/group for that period. In preparing these financial statements, the Trustees are required to:

observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2019);

them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group 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.

In accordance with Section 418, Directors’ reports shall include a statement, in the case of each Director in office at the date the Directors’ report is approved, that:

(a) so far as the Trustee is aware, there is no relevant audit information of which the company’s auditors are unaware; and

(b) he has taken all the steps that he ought to have taken as a Trustee in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Approved by the Board of Trustees on 17 October 2023. Signed on its behalf by:

19 October 2023

Andy Green CBE Chair of the Board of Trustees

Dramane Traore, 36, next to his latrine, in the village of Kangoura, commune of Loumana, region of Cascades, Burkina Faso, December 2020.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable

38 / WaterAid UK Annual report 2022–23

Section 2 Trustees

Section 2

Audit

Our leadership team

Chief Executive and

Company Secretary

Tim Wainwright

Independent auditors’ report to the members and Trustees of WaterAid

Directors team

President

The former Prince of Wales[ ix]

Vice President

The Rt Hon Baroness Chalker of Wallasey[ ix]

Board of Trustees

Zaid Al-Qassab, Chair of the Communications and Fundraising Committee (until March 2023)[vii, viii ]

Manuel Alvarinho

Alyson Clark[vi]

Harpinder Collacott (until September 2022)

Andy Green CBE[vi, vii, viii] Chair of the Board of Trustees

Heidi Mottram OBE[vii]

Mala Rao OBE[vi,vii ] Vice Chair

Guido Schmidt-Traub

Peter Simpson[v] Heather Skilling[v]

Matthew Tweedie[v] Treasurer

Hilary Wild[v] Chair of Audit Committee

Nina Jasinski[viii] Chair of the Communications and Fundraising Committee (from July 2023)

Sanjay Nair,[v] incoming Treasurer (Trustee from July 2023 and Treasurer from November 2023)

Simi Kamal (from July 2023) Ashvin Dayal (from July 2023) Mamadou Biteye OBE (from July 2023)

v Audit Committee member

vi Nominations and Governance Committee member

vii People Committee member

viii Communications and Fundraising Committee member

ix Honorary positions

Olga Ghazaryan, Executive Director of International Programmes (until June 2023)

Paula Laird, Executive Director of Finance and Information Technology (until August 2023)

Jennie York, Executive Director of Communications and Fundraising

Sol Oyuela, Executive Director of Policy and Campaigns

Rachel Westcott, Executive Director of People and Organisational Development

Principal banker

Barclays Bank plc, 1 Churchill Place, London E14 5HP

Independent auditor

PricewaterhouseCoopers LLP, 1 Embankment Place, London WC2N 6RH

Principal solicitor

Bates, Wells and Braithwaite, 10 Queens Street Place, London EC4R 1BE

Company number

1787329

Charity numbers

288701 (England and Wales) SC039479 (Scotland)

Registered office and operational address 6th floor, 20 Canada Square, London E14 5NN

Report on the audit of the financial statements

Opinion

In our opinion, WaterAid’s group financial statements and parent charitable company financial statements (the “financial statements”):

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the group and charity balance sheets as at 31 March 2023; the consolidated statement of financial activities (including consolidated income and expenditure account), the charity statement of financial activities (including an income and expenditure account) and the consolidated cash flow statement for the year then ended; and the notes to the financial statements, which include a description of the 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 group and parent charitable company 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 related 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 group and parent 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 group’s and parent 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.

40 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 41

Section 2 Audit

Section 2

Audit

Independent auditors’ report to the members and Trustees of WaterAid (continued)

the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Strategic Report and the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

Reporting on other information

The other information comprises all of the information in the Annual Report and Financial Statements 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 addition, in light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Strategic Report and the Trustees’ Annual Report. We have nothing to report in this respect.

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.

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 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.

With respect to the Strategic Report and Trustees’ Annual Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group and parent charitable company or to cease operations, or have no realistic alternative but to do so.

Based on our work undertaken in the course of the audit, the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) require us also to report certain opinions and matters as described below.

Strategic Report and Trustees’ Annual Report

In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Annual Report, including

Independent auditors’ report to the members and Trustees of WaterAid (continued)

Auditors’ responsibilities for the audit of the

(Scotland) Regulations 2006 (as amended). 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 to the posting of inappropriate journal entries and the manipulation of key accounting judgements and estimates. Audit procedures performed included:

financial statements

We have been appointed as auditors under section 44(1) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts 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 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 group and parent charitable company/industry, we identified that the principal risks of noncompliance with laws and regulations related to the 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of The Charities Accounts

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the

42 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 43

Section 2 Audit

Section 3

Financial statements

Independent auditors’ report to the members and Trustees of WaterAid (continued)

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.

have not been received from branches not visited by us; or

certain disclosures of trustees’ remuneration

specified by law are not made; or

the parent charitable company financial statements are not in agreement with the accounting records and returns.

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.

We have no exceptions to report arising from this responsibility.

Dao..,.__

Use of this report

This report, including the opinions, has been prepared for and only for the charitable company’s members and trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of The Charities Accounts (Scotland) Regulations 2006 (as amended) and 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.

Daniel Chan (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

19 October 2023

Other required reporting

Matters on which we are required to report by exception

Under the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:

Consolidated statement of financial activities

(including consolidated income and expenditure account) For the year ended 31 March 2023

2023 2022
Unrestricted Restricted Total
Unrestricted		 Restricted Total
Income from: Note £000 £000 £000
£000		 £000 £000
Donations and legacies
Donations 3 54,933 4,096 59,029
54,179		 4,348 58,527
Grants of a general nature 3 4,179 - 4,179
6,316		 - 6,316
Gifts in kind 3 276 - 276
264		 - 264
Charitable activities
Grant funding for specifc activities 5 - 29,599 29,599
-		 25,855 25,855
Other trading activities 4 992 88 1,080
931		 - 931
Investment income 379 - 379
20		 - 20
Total income 60,759 33,783 94,542
61,710		 30,203 91,913
Expenditure on:
Raising funds
Expenditure on raising grants, 6 23,007 391 23,398
21,349		 316 21,665
donations and legacies
Expenditure on other trading activities 6 142 - 142
38		 - 38
Charitable activities
Supporting partners to deliver water, 6 11,891 22,731 34,622
9,702		 16,500 26,202
sanitation and hygiene
Strengthening national and local 6 12,609 9,291 21,900
11,678		 8,524 20,202
capacity to deliver services
Infuencing policy in water, sanitation 6 10,595 1,803 12,398
10,075		 2,049 12,124
and hygiene
Supporting WaterAid globally 6 3,475 462 3,937
3,263		 1,002 4,265
Total expenditure 61,719 34,678 96,397
56,105		 28,391 84,496
Net (expenditure)/income (960) (895) (1,855)
5,605		 1,812 7,417
Transfers 17 - - -
828		 (828) -
RECONCILIATION OF FUNDS
Net movement in funds 22 (960) (895) (1,855)
6,433		 984 7,417
Funds brought forward at 1 April 17 29,555 14,290 43,845
23,122		 13,306 36,428
Total funds carried forward at 31 March 17 28,595 13,395 41,990
29,555		 14,290 43,845

The statement of financial activities includes all gains and losses recognised during the year, there were no realised gains during the year on investment assets. All income and expenditure derive from continuing activities. There was no material difference between the charity and group accounts. The notes supporting the Financial Statements are on pages 49 to 71. There is no material difference between the net movement in funds stated above and its historical cost equivalent.

44 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 45

Section 3 Financial statements

Section 3 Financial statements

Charity statement of financial activities (including an income and expenditure account) For the year ended 31 March 2023

Note
Income from:
Donations and legacies
Donations
3
Grants of a general nature
3
Gifts in kind
3
Charitable activities
Grant funding for specifc activities
5
Other trading activities
4
_Other income
_Investment income
Total income
Expenditure on:
Raising funds
Expenditure on raising grants,
donations and legacies
6
Charitable activities
Supporting partners to deliver water,
sanitation and hygiene
6
Sector strengthening and capacity
building to deliver water, sanitation
and hygiene
6
Infuencing policy in water, sanitation
and hygiene
6
Supporting WaterAid globally
6
Total expenditure
Net (expenditure)/income
Transfers
17
RECONCILIATION OF FUNDS
Net movement in funds
22
Funds brought forward at 1 April
17
Total funds carried forward at 31 March*
17		 Unrestricted
£000
Restricted
£000
2023
Total
£000
Unrestricted
£000
Restricted
£000
2022
Total
£000
54,933
4,096
59,029
54,179
4,348
58,527
4,179
-
4,179
6,316
-
6,316
276
-
276
264
-
264
-
29,599
29,599
-
25,855
25,855
627
-
627
543
-
543
223
88
311
350
-
350
379
-
379
20
-
20
60,617
33,783
94,400
61,672
30,203
91,875
23,007
391
23,398
21,349
316
21,665
11,891
22,731
34,622
9,702
16,500
26,202
12,609
9,291
21,900
11,678
8,524
20,202
10,595
1,803
12,398
10,075
2,049
12,124
3,475
462
3,937
3,263
1,002
4,265
61,577
34,678
96,255
56,067
28,391
84,458
(960)
(895)
(1,855)
5,605
1,812
7,417
-
-
-
828
(828)
-
(960)
(895)
(1,855)
6,433
984
7,417
29,555
14,290
43,845
23,122
13,306
36,428
28,595
13,395
41,990
29,555
14,290
43,845

The statement of financial activities includes all gains and losses recognised during the year, there were no realised gains during the year on investment assets. All income and expenditure derive from continuing activities. There was no material difference between the charity and group accounts. The notes supporting the Financial Statements are on pages 49 to 71.

There is no material difference between the net movement in funds stated above and its historical cost equivalent.

*Other income is made up of a gift aid donation by virtue of the Deed of Covenant and licence fee paid by WaterAid Trading. These are both eliminated on consolidation.

Group and charity balance sheets

At 31 March 2023 Company number: 01787329

Note
Fixed assets
Intangible assets
10
Fixed Asset Investments
13
Tangible assets
10
Total fxed assets
Current assets
Debtors
11
Cash at bank and in hand
14
Short term deposits
14
Total current assets
Liabilities
Creditors: amounts falling due within one year
15
Provision for liabilities and charges
16
Total Liabilities
Net current assets
Provision falling due over one year
16
Net assets
The funds of the charity
Unrestricted income funds
Designated funds
18
General income funds
18
Total unrestricted income funds
Restricted income funds
18
Total charity funds		 The group
The charity
2023
£000
2022
£000
2023
£000
2022
£000
2,279
1,792
2,279
1,792
100
82
-
-
3,371
3,323
3,371
3,323
5,750
5,197
5,650
5,115
9,075
10,560
9,981
11,387
34,352
29,998
33,085
28,907
3,000
7,000
3,000
7,000
46,427
47,558
46,066
47,294
(8,586)
(7,380)
(8,444)
(7,353)
(1,444)
(1,425)
(1,125)
(1,106)
(10,030)
(8,805)
(9,569)
(8,459)
36,397
38,753
36,497
38,835
(157)
(105)
(157)
(105)
41,990
43,845
41,990
43,845
5,748
5,195
5,748
5,195
22,847
24,360
22,847
24,360
28,595
29,555
28,595
29,555
13,395
14,290
13,395
14,475
41,990
43,845
41,990
43,845

The financial statements on pages 45 to 71 were approved by the Board of Trustees on 17 October 2023 and signed on its behalf by:

Andy Green Chair

Matthew Tweedie Treasurer

46 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 47

Section 3 Financial statements

Section 3 Financial statements

Consolidated cash flow statement For the year ended 31 March 2023

Net (expenditure)/income for the year
Interest receivable
Amortisation of intangible assets
Depreciation of tangible assets
Asset Impairment
Decrease in debtors
Decrease in short term creditors
Decrease in long-term creditors
Decrease in provisions
Cash generated from operating activities
Bank interest received
Payments to acquire tangible fxed assets
Payments to acquire intangible fxed assets
Purchase of fxed asset investment
Cash fows expended in investing activities
Increase in cash in the year
Analysis of cash as shown in the balance sheet
Balance at beginning of the year
Net cash infow
Balance at the end of the year		 2023
£000
2022
£000
(1,855)
7,417
(379)
(20)
496
388
864
857
82
-
1,486
(1,904)
1,207
233
52
105
18
188
1,971
6,798
379
20
(913)
(526)
(983)
1,248
(100)
(82)
(1,617)
(1,836)
354
4,962
2023
£000
2022
£000
36,998
32,036
354
4,962
37,352
36,998

Cash includes funds held in short-term deposit accounts that can be accessed without notice. The charity held no borrowings, related derivatives or obligations under finance leases during the year.

The cash balances were held in the following locations:
UK
Overseas
Balance at 31 March		 2023
£000
2022
£000
32,870
33,553
4,482
3,445
37,352
36,998

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’s Financial Statements.

WaterAid is incorporated in the United Kingdom (company number: 01787329) and is a registered charity in England, Wales and Scotland and is a public benefit entity. WaterAid’s registered office and operational address is: WaterAid 6th Floor, 20 Canada Square, London E14 5NN.

a) Basis of preparation

The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP (FRS 102), effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006, the Charities Accounts (Scotland) regulations 2006 and Charities and Trustee Investment (Scotland) Act 2005, and under the historical cost accounting rules, except for investments which have been included at fair value or the value considered appropriate by the Board of Trustees.

The Financial Statements are drawn up on the going concern basis which assumes WaterAid will continue in operational existence for the foreseeable future (deemed to be a period of 12 months from the date of this report).

b) Basis of consolidation

The charity has three wholly-owned subsidiaries and a 20% share in an associated company. Consolidated Financial Statements for the group, being WaterAid and WaterAid Trading Limited have been prepared on a line by line basis. Two further subsidiaries, WaterAid (WASH and Health) Limited and WaterAid (WASH and Climate Change) Limited were dormant for the whole of the financial year. Consolidation does not include WaterAid international as there is no ability to direct nor does it include dormant companies or other WaterAid members. Further details can be found in note 14.

The activities of the regional fundraising committees in England, Wales, Scotland and Northern Ireland raising funds for WaterAid are deemed to be part of the activities of the charity. As such, they are included in full in the Financial Statements of the charity and group.

c) Foreign exchange

Transactions denominated in foreign currencies are translated at the closing rate of exchange in the previous 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 and losses are included within support costs and reallocated across charitable activities in the Statement of Financial Activities (SOFA) as per note 6.

d) Income

All income is included in the consolidated SOFA when the charity is legally entitled to it, receipt is probable and the amount can be measured with sufficient reliability:

48 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 49

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

1. Accounting policies (continued)

e) Expenditure

Expenditure is recognised in the period in which it is incurred on an accruals basis. Expenditure includes attributable VAT which can only be partially recovered.

Costs of charitable activities include direct expenditure incurred through grants to partners and operational activities together with associated support costs. Charitable expenditure is reported as it relates to work undertaken by the charity, in supporting partners, strengthening national and local capacity to deliver services and influencing policy to deliver water, sanitation and hygiene, and supporting WaterAid globally.

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. Partner agreements and funding contracts may be for longer than one year.

The costs of raising funds relate to the costs incurred by the group and the charity in raising funds for the charitable work.

Expenditure is allocated to the particular activity where the cost relates directly to that activity.

Support costs comprise the salary and overhead costs of the central function. The central function includes costs relating to the Departments of Finance, Facilities, Information Services, People and the Chief Executive’s Office. Governance costs include internal and external audit costs, legal and tax advice, Trustee expenses and Directors’ time in governance of the organisation. Governance costs and other support costs have been allocated to expenditure on charitable activities based upon staff numbers. These staff numbers are listed in note 7 to the Financial Statements.

f) Fund accounting

General 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, nor had any specific restrictions applied.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in note 19.

Restricted funds are used for specified purposes as laid down by the donor. Qualifying project expenditure is allocated to the fund, together with a proportion of overhead costs where agreed by the donor. Negative balances are carried forward on funds only where further income is considered highly probable in the following year.

g) Fixed assets and depreciation

Tangible and intangible fixed assets are stated at historic cost less accumulated depreciation. For both tangible and intangible assets, costs include the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. For intangible assets, subsequent expenditure is only capitalised where it provides a material enhancement of the economic benefits of the asset, such as further development or customisation of software. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation periods in use on a straight line basis are as follows:

Motor vehicles 3 years Equipment and Furniture – Overseas 3 years Equipment and Furniture – UK 5 years Computer Hardware and Software 3 years Lease improvements 10 years

Notes to the financial statements

For the year ended 31 March 2023 (continued)

1. Accounting policies (continued)

Items of equipment are capitalised where the purchase price exceeds £1,500. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use and meets the capitalisation criteria as per FRS 102.

h) Investment Policy

Our investment in an associated company is measured at cost less impairment. If there is any indication of impairment then the carrying amount will be tested and adjusted accordingly.

i) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are listed in Table 7 of the Charities SORP and are initially recognised at transaction value and subsequently measured at their settlement value (note 24).

j) Investments

The investment in the subsidiaries is valued at cost.

Donated shares which are freely tradable are included at the market valuation at the balance sheet date. Shares are not intended to be held as investments and are sold as soon as practically possible and proceeds recognised as income.

k) Cash at bank and in hand

Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments. A cash equivalent will normally have a short maturity of three months or less from the date of acquisition.

l) Pension cost

The charity operates a defined contribution pension scheme for UK staff. The assets of the scheme are held separately from those of the charity in independently administered funds. Contribution payments are charged to the SOFA.

Similarly our staff in country programmes and regions are provided with post employment benefits that comply with local employment legislation.

m) Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the SOFA on a straight line basis for the duration of the lease contract.

n) Provisions

Provisions for future liabilities are recognised when the charity has a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made.

o) Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The charity makes estimates and assumptions concerning the future. Accounting estimates impacting the financial statements concerned with grant, legacy and gift in kind income are detailed in note (d). It is the opinion of the Trustees that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

For grant income, entitlement is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions have been met. This judgement made based on evidence such as receipt of reports showing satisfactory progress has been made against agreed donor outcomes.

WaterAid’s judgement on entitlement of legacy income is based on the following policy:

Pecuniary legacies are a fixed value and WaterAid accrues all open gifts, where a letter from executors has been received.

Residuary legacies often involve the sale of assets and therefore the value is only estimated at the point of notification. WaterAid maintains a policy of only recognising the income from these legacies once final estate accounts have been issued. This is when the value is known with a high degree of probability and is a prudent interpretation of the SORP 2019. This interpretation is considered to be appropriate by the trustees in the context of WaterAid and has been consistently applied year on year. Future residuary legacy income is based on a calculated estimate of the average value of a residuary gift. Those residuary legacies that do not meet recognition criteria are disclosed as part of the legacy pipeline as per note 3.

50 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 51

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

1. Accounting policies (continued)

Gift in kind income and expenditure is recognised at its fair value (i.e. market value), or if this is not available it may be derived from the cost to the donor.

The estimated cost for dilapidations work to be completed at the end of the lease period for the UK office building is recorded annually as a provision.

The Charity has through its trading company a 20% shareholding in WEAREGOODGIVING, a new payroll giving company. The Charity does not have the power to significantly influence financial and reporting decisions made by WEAREGOODGIVING, therefore, the share capital has been classified as an investment in the accounts (note 13).

Where WaterAid staff members are involved in more than one activity between raising funds, delivery of charitable activities or support and governance an estimate of their time spent on each is made and costs allocated accordingly. WaterAid also makes a judgement that support and governance costs are most fairly allocated to raising funds and charitable activities in proportion to the respective levels of expenditure (note 6).

Going concern assumptions

As required by the Charities Statement of Recommended Practice (FRS 102), we assess whether there are any uncertainties that may cast doubt over our ability to continue as a going concern. For this purpose, we focus on a period of at least 12 months following the signing of these accounts, so the period to at least the end of November 2024.

Our annual budget and plan, approved by the Board in March 2023, represents management and the Board’s best forecast of the fundraising targets and key income streams, alongside the expected cost base for the years to 31 March 2024 and 31 March 2025.

This budget forms the base case for our going concern assessment. In addition, we have undertaken scenario modelling to understand the impact of various income downsides and cost pressures on our future expenditure both at a UK and country programme level. We have modelled several scenarios that when compared to the budget assumptions reflect lower income and a higher cost base.

We have also prepared an acute or ‘worst case’ scenario, which combines high inflation with a prolonged cost of living crisis affecting stock and property prices, a material reduction in regular giving and no continued funding received from Peoples Postcode Lottery.

Although the impact of the acute scenario is severe and would require the consideration of mitigating actions which are wholly within our control to reduce our discretionary cost base, the analysis indicates that the Group would have sufficient liquidity and reserves to honour our committed funding obligations and to maintain sufficient liquidity throughout the going concern period.

Robust monitoring processes are in place to ensure that the organisation is able to react quickly to any downturn in income and the short term deposit investments held can be liquidated quickly in the event that they are required. The Group currently has no bank financing or loan agreements and therefore there are no covenants to consider.

The Group will maintain its investment and cash reserves within its target range of £13-17m. As at 31 March 2023, the Group had managed cash and investments of £23m, well above the target minimum liquidity that the Trustees have set in order to remain in a financially stable position.

Taking into account our current position and our principal risks, the Trustees have a reasonable expectation that the Charity will be able to continue in operation and meet its liabilities as they fall due over the medium term. Accordingly, the Group expects to continue to have access to sufficient liquid resources to meet its obligations for a period of at least 12 months after the approval of these financial statements, namely the period to November 2024 and the Board therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

Notes to the financial statements

For the year ended 31 March 2023 (continued)

2. Prior year consolidated statement of financial activities

Income from:
Donations and legacies
Donations
Grants of a general nature
Gifts in kind
Charitable activities
Grant funding for specifc activities
Other trading activities
Investment income
Total income
Expenditure on:
Raising funds
Expenditure on raising grants, donations and legacies
Expenditure on other trading activities
Charitable activities
Supporting partners to deliver water, sanitation and hygiene
Strengthening national and local capacity to deliver services
Infuencing policy in water, sanitation and hygiene
Supporting WaterAid globally
Total expenditure
Net income/ (expenditure)
Transfers
Net movement in funds or net defcit for the year
Reconciliation of funds
Total funds brought forward at 1 April
Total funds carried forward at 31 March		 Unrestricted
£000
Restricted
£000
2022
Total
£000
54,179
4,348
58,527
6,316
-
6,316
264
-
264
-
25,855
25,855
931
-
931
20
-
20
61,710
30,203
91,913
21,349
316
21,665
38
-
38
9,702
16,500
26,202
11,678
8,524
20,202
10,075
2,049
12,124
3,263
1,002
4,265
56,105
28,391
84,496
5,605
1,812
7,417
828
(828)
-
6,433
984
7,417
23,122
13,306
36,428
29,555
14,290
43,845

52 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 53

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

3. Income from donations and legacies

Donations
Regular giving, donations and appeals
Legacies and in memoria donations
Fundraising events
Total
Grants of a general nature
Other WaterAid member countries
The Waterloo Foundation
Peoples Postcode Lottery
Coronavirus Job Retention Scheme (CJRS)
Total
Gifts in kind
Water Industry Partnerships
Customer appeal
Audit Fees
Rent
Total
Total		 Unrestricted
£000
Restricted
£000
2023
Total
£000
Unrestricted
£000
Restricted
£000
2022
Total
£000
40,920
1,862
42,782
41,905
2,362
44,267
11,978
865
12,843
10,683
850
11,533
2,035
1,369
3,404
1,591
1,136
2,727
54,933
4,096
59,029
54,179
4,348
58,527
1,029
-
1,029
2,743
-
2,743
150
-
150
300
-
300
3,000
-
3,000
3,269
-
3,269

-
-
-
4
-
4
4,179
-
4,179
6,316
-
6,316
117
-
117
147
-
147
115
-
115
112
-
112
43
-
43
-
-
-
1
-
1
5
-
5
276
-
276
264
-
264
59,388
4,096
63,484
60,759
4,348
65,107

At 31 March 2023, WaterAid had been notified it will benefit from a number of legacies from estates whereby the value of the gift can only be estimated and timing of receipt of funds is uncertain. In addition to £2.1m (2022: £1.6m) of legacy income accrued in the financial statements as per our policy in note 1 (d) we estimate a further £13.9m (2022: £13.7m) of future legacy income. This pipeline value has not been recognised as income during the financial year as the majority of asset values relate to investments or properties which are uncertain and timing between notification and receipt of funds can be significant. Conditional or contingent legacy income is not included in the pipeline where the conditions are unknown. Contentious legacies are excluded from the pipeline until entitlement is legally established.

Gifts in Kind provided by our Water Industry Partners relate to support for fundraising events, appeals and delivery of charitable activities. The auditors renumeration was £77k (2022: £nil) and they also provided donated services of £43k (2022: £nil). See Note 22 for detail information.

The Coronavirus Job Retention Scheme grant from UK government for prior year has been disclosed as unrestricted income in note 3 in line with government requirements. The grant was spent on pay costs for staff on temporary leave (‘furlough’).

4. Other trading activities

Lotteries
Trading company
Total		 Unrestricted
£000
Restricted
£000
2023
Total
£000
Unrestricted
£000
Restricted
£000
2022
Total
£000
628
-
628
543
-
543
364
88
452
203
185
388
992
88
1,080
746
185
931

Notes to the financial statements

For the year ended 31 March 2023 (continued)

5. Income from charitable activities

5. Income from charitable activities
Grant funding for specifc activities
Other WaterAid member countries
Unilever
Kimberley-Clark
European Commission
Unicef
Heineken Africa Foundation
Swedish International Development Cooperation Agency
Japan International Cooperation Agency
Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
Giorgio Armani Acqua for Life
CowaterSogema International
The Foreign, Commonwealth and Development Ofce (FCDO)
Sustainable Safe WASH in Eastern Province
The Wimbledon Foundation
Scottish Government
Irish Aid
Coca Cola
Diageo
DP World Income
LIFT Fund
Other grants
Total
_Hygiene Behaviour Change Coalition – received through Unilever_
Other
UK Aid received directly from the Foreign, Commonwealth and
Development Ofce (FCDO)
_the Foreign, Commonwealth and Development Ofce (FCDO), formerly stated as the Department for_
International Development (DFID)
Match Funding - Untapped
Match Funding - UK Aid Match - Promoting a gender responsive, climate resilient WASH
in drought-prone communities in Ethiopia
One WASH
UK Aid received directly from the Foreign, Commonwealth and
Development Ofce (FCDO)
Total UK Aid received from the Foreign, Commonwealth and
Development Ofce (FCDO)**		 2023
Total
£000
2022
Total
£000
14,855
10,909
1,700
359
1,579
1,248
1,198
1,176
995
1,705
974
1,371
875
1,388
847
1,274
776
562
683
417
635
535
514
845
498
-
488
415
477
440
281
-
222
-
216
329
200
-
174
53
1,412
2,829
29,599
25,855
1,700
359
-
475
1,700
834
-
845
393
-
121
-
514
845
2,214
1,679

Grant funding for specific activities are displayed where total funding was greater than £150k for the current year. Additional information on transactions with WaterAid other member countries can be found in note 23.

54 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 55

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

6. Expenditure

Allocation of
Amortisation support and
Other direct and governance 2023 2022
Staff costs costs depreciation costs Total Total
Raising funds Note £000 £000 £000 £000 £000 £000
Expenditure on raising grants, 7,187 13,933 318 1,960 23,398 21,665
donations and legacies
Expenditure on other 25 117 - - 142 38
trading activities
7,212 14,050 318 1,960 23,540 21,703
Charitable activities 8
Supporting partners to deliver 9,540 21,916 431 2,735 34,622 26,202
water, sanitation and hygiene
Sector strengthening and 7,231 10,379 149 4,141 21,900 20,202
capacity building to deliver
water, sanitation and hygiene
Infuencing policy in water, 4,660 5,936 122 1,680 12,398 12,124
sanitation and hygiene
Supporting WaterAid globally 11 3,838 - 88 3,937 4,265
21,442 42,069 702 8,644 72,857 62,793
Governance 959 119 - (1,078) - -
Support costs 4,156 5,030 340 (9,526) - -
Governance and support costs 5,115 5,149 340 (10,604) - -
33,769 61,268 1,360 - 96,397 84,496

Notes to the financial statements For the year ended 31 March 2023 (continued)

Prior year expenditure

Note
Raising funds
Expenditure on raising grants, donations
and legacies
Expenditure on other trading activities
Charitable activities
8
Supporting partners to deliver water,
sanitation and hygiene
Sector strengthening and capacity building
to deliver water, sanitation and hygiene
Infuencing policy in water, sanitation and
hygiene
Supporting WaterAid globally
Governance
Support costs
Governance and support costs		 Staff costs
£000
Other direct
costs
£000
Amortisation
and
depreciation
£000
Allocation of
support and
governance
costs
£000
2022
Total
£000
6,869
13,058
292
1,446
21,665
25
13
-
-
38
6,894
13,071
292
1,446
21,703
8,059
15,660
367
2,116
26,202
6,899
10,602
152
2,549
20,202
4,193
6,109
122
1,700
12,124
15
4,185
-
65
4,265
19,166
36,556
641
6,430
62,793
748
69
-
(817)
-
3,579
3,170
310
(7,059)
-
4,327
3,239
310
(7,876)
-
30,387
52,866
1,243
-
84,496

Governance and support costs have been allocated on the basis of staff numbers in each area of activity. These staff numbers are listed in note 7 to the Financial Statements.

The governance and support costs and losses/(gains) on exchange rates were
incurred as follows:
Finance, People and Information Services
Chief Executive Ofce, Internal audit and Governance
Premises and facilities
Strategy transition
Gift in kind
Support costs
Realised and unrealised exchange (gains)/losses on assets
Total of governance and support costs and exchange (gains)/ losses		 2023
Total
£000
2022
Total
£000
7,092
6,049
1,078
817
1,760
1,795
1,433
-
127
140
11,490
8,801
(886)
(925)
10,604
7,876

The exchange rate movement is the net of the operational gains/losses incurred in delivering our services funded in GBP in local currencies and the gains/losses made on asset values held in currencies other than GBP.

56 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 57

Section 3 Financial statements

Section 3 Financial statements

7. Staff costs and numbers

Staff costs for the charity and group were as follows:
Wages and salaries
Social security costs
Other pension costs
The number of employees, calculated on a full time equivalent basis
and analysed on a functional basis, was as follows:
Fundraising staff (cost of generating funds)
Staff delivering charitable activities
Support staff
Governance		 2023
£000
2022
£000
29,246
26,420
1,512
1,336
3,011
2,631
33,769
30,387
2023
2022
No.
No.
150
146
653
643
77
71
12
9
892
869

During the year, there was an increase in staff costs of 8.2% (2022: increase of 2.7%) per full time equivalent employee. The average monthly headcount was 906 staff (2022: 897). The total number of WaterAid employees at 31 March 2023 was 909 (2022: 912).

The charity paid termination payments totalling £206k (2022: £18k). The majority relates to the closure of programmes in the Kingdom of Eswatini, Myanmar and Sierra Leone.

The number of UK and overseas employees whose total benefits excluding employer pension costs amounted to over £60,000 in the year was as follows:

£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£110,000 - £119,999
£120,000 - £129,999		 2023
2022
No.
No.
29
21
17
14
8
7
6
3
3
2
2
3
4
1
69
51

The total employee benefits paid to the Chief Executive were salary and taxable benefits in kind (including employer national insurance contributions) of £134,067 (2022: £128,048) and pension contributions of £14,035 (2022: £13,526). The Chief Executive’s salary is shown in the table above net of employer national insurance contributions of £12,281 (2022: £10,957).

In the UK, WaterAid makes contributions for its employees to a defined contribution scheme operated by Aegon.

The key management personnel of the charity comprise the Trustees, the Chief Executive and the Directors’ Team. The total employee salary and benefits (including employer national insurance contributions but excluding pension), of the key management personnel of the group was £708k (2022: £608k). The number of key management personnel was six (2022: four). The lower cost in 2022 reflects vacancies during the year.

Notes to the financial statements For the year ended 31 March 2023 (continued)

8. Charitable activities expenditure by location

West Africa
Burkina Faso
Ghana
Liberia
Mali
Niger
Nigeria
Sierra Leone
Regional management and support costs
East Africa
Ethiopia
Rwanda
Tanzania
Uganda
Regional management and support costs
Southern Africa
Kingdom of eSwatini (previously Swaziland)
Madagascar
Malawi
Mozambique
Zambia
Regional management and support costs
Asia
Bangladesh
Myanmar
Nepal
Pakistan
Regional management and support costs
UK and Other
Supporting WaterAid globally
Other UK direct international programme support
costs (including technical and programme
effectiveness)
UK-based policy, campaigns and education costs
Allocated UK support costs to charitable activities
Exchange (gains)/losses
Total		 Unrestricted
£000
Restricted
£000
2023
Total
£000
Unrestricted
£000
Restricted
£000
2022
Total
£000
876
2,558
3,434
721
3,061
3,782
470
607
1,077
574
713
1,287
574
609
1,183
481
651
1,132
1,017
2,180
3,197
883
2,054
2,937
315
487
802
358
863
1,221
1,134
1,875
3,009
838
848
1,686
297
419
716
259
480
739
991
79
1,070
928
84
1,012
5,674
8,814
14,488
5,042
8,754
13,796
946
2,989
3,935
549
1,656
2,205
731
1,459
2,190
863
1,055
1,918
1,414
1,010
2,424
1,074
567
1,641
668
1,128
1,796
658
435
1,093
1,197
49
1,246
1,182
26
1,208
4,956
6,635
11,591
4,326
3,739
8,065
569
639
1,208
542
323
865
907
1,598
2,505
466
1,842
2,308
683
1,911
2,594
634
1,402
2,036
1,335
478
1,813
1,181
1,062
2,243
550
4,444
4,994
616
1,153
1,769
858
760
1,618
707
557
1,264
4,902
9,830
14,732
4,146
6,339
10,485
1,011
2,566
3,577
1,309
3,185
4,494
454
941
1,395
475
1,070
1,545
338
2,249
2,587
915
1,356
2,271
941
891
1,832
573
827
1,400
492
61
553
436
46
482
3,236
6,708
9,944
3,708
6,484
10,192
3,395
454
3,849
3,204
995
4,199
3,578
1,243
4,821
3,619
1,146
4,765
4,293
498
4,791
4,285
578
4,863
9,436
21
9,457
7,184
-
7,184
(902)
86
(816)
(796)
40
(756)
19,800
2,302
22,102
17,496
2,759
20,255
38,568
34,289
72,857
34,718
28,075
62,793

The total spend on charitable activities, as per the consolidated statement of financial activities, was £56.5m on delivery of water, sanitation and hygiene, including sector strengthening (2022: £46.4m) and £12.4m on influencing policy in water, sanitation and hygiene (2022: £12.1m).

58 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 59

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

9. Payments to partner organisations

WaterAid has transferred a total of £10.5m to partners for the delivery of some of our programmatic work for the year ended 31 March 2023. Funding was provided to 104 different partners under separate partnership agreements. For the year ended 31 March 2022, payments were made to 102 partners with a total value of £10.2m.

Transfers have been made to the following number of partners by size:
£0- £49,999
£50,000 – £99,999
£100,000 – £149,999
£150,000 – £199,999
£200,000 – £249,999
£250,000 and over		 2023
No.
2022
No.
56
55
14
13
13
7
6
7
3
9
12
11
104
102

The top 20 financial implementing partners recipients during the year ended 31 March 2023 are listed below. The implementation costs are included in the charitable expenditure outlined in notes 6 and 8.

2023 2022
Name of partner Country £000 £000
1 ON CALL AFRICA Zambia 1,365 230
2 Tsogang Water and Sanitation South Africa 548 250
3 COFORWA - Compagnons Fontainiers du Rwanda Rwanda 423 481
4 Association les Mains Unies du Sahel (AMUS) Burkina Faso 419 295
5 Bagmati Welfare Society Nepal Nepal 370 153
6 Rupantar Bangladesh 343 322
7 ALPHALOG Mali 322 198
8 Association Pour la Promotion de la Femme et de Mali 311 226
l’Enfant au Mali
9 Bauchi Ruwassa Nigeria 297 122
10 AYATEKE Star Company LTD Rwanda 291 -
11 EAU VIVVE Burkina Faso 287 477
12 Dushtha Shasthya Kendra - DSK Bangladesh 269 507
13 Sajida Foundation Bangladesh 237 453
14 Doaba Foundation Pakistan 235 7
15 AMREF Health Africa Malawi 200 208
16 SKS Foundation Bangladesh 193 317
17 Association Malienne pour la Sauvegarde du Bien Etre Mali 185 244
Familial
18 DEMI-I 6RD00 OURNO & 6NF00 HAMZARI Niger 178 137
19 Dalit Janakalyan Yuwa Club Nepal 172 246
20 Nabolok Bangladesh 156 212
Other partners 3,654 5,155
Total payments to implementing partners 10,455 10,240

Notes to the financial statements

For the year ended 31 March 2023 (continued)

10. Fixed assets

10. Fixed assets
The group Intangible assets Tangible assets
Lease Motor Equipment
Software improvements vehicles and furniture Total
Cost £000 £000 £000 £000 £000
At 1 April 2022 7,021 2,458 3,922 3,113 16,514
Additions in year 983 6 307 600 1,896
Disposals in year - - (542) (414) (956)
At 31 March 2023 8,004 2,464 3,687 3,299 17,454
Accumulated amortisation/depreciation
At 1 April 2022 5,229 369 3,337 2,464 11,399
Charge for the year 496 246 317 301 1,360
Disposals in year - - (542) (413) (955)
At 31 March 2023 5,725 615 3,112 2,352 11,804
Net book value
At 31 March 2023 2,279 1,849 575 947 5,650
At 31 March 2022 1,792 2,089 585 649 5,115
The charity Intangible assets Tangible assets
Lease Motor Equipment
Software improvements vehicles and furniture Total
Cost £000 £000 £000 £000 £000
At 1 April 2022 7,021 2,458 3,922 3,113 16,514
Additions in year 983 6 307 600 1,896
Disposals in year - - (542) (414) (956)
At 31 March 2023 8,004 2,464 3,687 3,299 17,454
Accumulated amortisation/depreciation
At 1 April 2022 5,229 369 3,337 2,464 11,399
Charge for the year 496 246 317 301 1,360
Disposals in year - - (542) (413) (955)
At 31 March 2023 5,725 615 3,112 2,352 11,804
Net book value
At 31 March 2023 2,279 1,849 575 947 5,650
At 31 March 2022 1,792 2,089 585 649 5,115

60 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 61

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

11. Debtors

Amounts due within one year:
Amounts owed by WaterAid Trading
Grant debtors
Other debtors
Gift Aid tax recoverable
Prepayments
Accrued income		 The group
The charity
2023
£000
2022
£000
2023
£000
2022
£000
-
-
1,255
900
3,224
4,549
3,224
4,549
1,580
988
1,256
920
784
2,005
784
2,005
1,069
1,062
1,069
1,062
2,418
1,956
2,393
1,951
9,075
10,560
9,981
11,387

Amounts owed by WaterAid Trading Limited are unsecured, interest free, have no fixed date of repayment and are payable on demand.

Notes to the financial statements For the year ended 31 March 2023 (continued)

12. Group companies

WATERAID TRADING LIMITED Company number 02362892

WaterAid Trading Limited is incorporated in England and Wales (company number: 02362892). WaterAid Trading Limited’s registered office and operational address is: WaterAid, 6th Floor 20 Canada Square, London, England, E14 5NN.

a) Proft and loss account
Turnover
Cost of sales
Gross proft
Administrative expenses
Impairment Charge
Operating proft
Interest receivable
Proft on ordinary activities
Gift Aid to WaterAid under Deed of Covenant
Retained earnings
b) Balance Sheet
Non-Current assets
Investment in associated companies:
WeAreGoodGiving Ltd.
Current Assets
Debtors
Cash at bank and in hand
Creditors
Amounts due within one year
Net assets
Represented by:
Share capital		 2023
£000
2022
£000
439
383
(24)
(20)
415
363
(34)
(38)
(82)
-
299
325
12
5
311
330
(311)
(330)
-
-
2023
£000
2022
£000
100
82
100
82
353
77
947
771
1,300
848
(1,400)
(930)
-
-
-
-

62 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 63

Section 3 Financial statements

Section 3 Financial statements

WaterAid Trading Limited has a share capital of two £1 ordinary shares (2022: two £1 ordinary shares)

A deed of covenant is in place whereby all profits generated by the company are distributed to the parent charity in the form of a ‘Qualifying distribution’.

Other wholly owned subsidiaries

WATERAID (WASH AND CLIMATE CHANGE) LIMITED Company number 12508772

Registered Office 6th floor, 20 Canada Square, London E14 5NN

On 10th March 2020, two new companies guaranteed by WaterAid, without share capital, were incorporated in England and Wales for the purpose of funning lotteries. WaterAid holds 100% of the voting rights of each company and has the right to appoint a majority of the board of directors of the companies. In accordance with sections 394A and 448A of the Companies Act 2006, Directors confirm that both companies were dormant throughout the financial year. Directors are exempt from the requirement to deliver a copy of the companies annual accounts in accordance with these sections.

13. Fixed Asset Investment

Wateraid Trading Ltd invested £82k in March 2022 for a 20% shareholding in a new payroll giving company: WEAREGOODGIVING Ltd with registered company number 13256341. The other equal shareholders are four other charities. The new company was set up with an independent Managing Director and three Non-Executive Directors nominated from the charities. In addition to the articles of association the company governance is established by the Subscription and Shareholding Agreement. The original fixed asset investment has been adjusted for impairment during the year and an additional £100k invested in February 2023. The carrying value is £100k (see table) below.

Cost
At 1 April 2022
Investment in Year
Asset Impairment
Net book value At 31 March 2023		 2023
£000
2022
£000
82
-
100
82
(82)
-
100
82

14. Cash at bank and in hand

Cash and bank balances in UK
Cash and bank balances overseas
Short term deposits UK		 The group
The charity
2023
£000
2022
£000
2023
£000
2022
£000
29,870
26,553
28,603
25,462
4,482
3,445
4,482
3,445
3,000
7,000
3,000
7,000
37,352
36,998
36,085
35,907

Notes to the financial statements

For the year ended 31 March 2023 (continued)

15. Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income		 The group
The charity
2023
£000
2022
£000
2023
£000
2022
£000
4,041
3,555
4,041
3,555
746
731
636
713
376
274
356
274
3,194
2,638
3,182
2,629
229
182
229
182
8,586
7,380
8,444
7,353

The deferred income relates to funding received for activities in a future period. The movements in deferred income are analysed as follows:

Group and charity
Deferred income at the beginning of the year
Amounts released from previous years
Income deferred in the year
Deferred income at the end of the year		 2023
£000
2022
£000
182
12
(182)
(12)
229
182
229
182

16. Provision for liabilities and charges

Provision falling due under one year
Provisions at beginning of the year
Amount charged to statement of fnancial activities
Amount released to statement of fnancial activities
Provisions at the end of the year
Provision falling due more than one year
Dilapidation Provision		 The group
The charity
2023
£000
2022
£000
2023
£000
2022
£000
1,425
1,237
1,106
1,237
1,509
1,329
1,509
1,010
(1,490)
(1,141)
(1,490)
(1,141)
1,444
1,425
1,125
1,106
157
105
157
105
157
105
157
105

Provisions include end of contract provisions for staff on non-UK contracts. These provisions include lump sums paid at the end of contract, similar to a pension scheme and/or loyalty payment which is paid on full completion of service. Other provisions include dilapidation charge for the WaterAid office in the UK and contract retention amounts on programme construction works.

64 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 65

Section 3 Financial statements

Section 3 Financial statements

17. Movements in funds

Unrestricted funds:
Designated funds:
Designated funds: Fixed assets fund
Total Designated funds
General funds
Total unrestricted funds
Restricted funds:
Bangladesh
Burkina Faso
East Africa Region
Ethiopia
Ghana
Kingdom of eSwatini
Liberia
Madagascar
Malawi
Mali
Mozambique
Myanmar
Nepal
Niger
Nigeria
Pakistan
Rwanda
Sierra Leone
Southern Africa Region
South Asia Region
Tanzania
Uganda
West Africa Region
Zambia
UK
Total restricted funds
Total funds		 At 1 April
2022
£000
Income
£000
Expenditure
£000
At 31 March
2023
£000
5,195
958
(405)
5,748
5,195
958
(405)
5,748
24,360
59,803
(61,316)
22,847
29,555
60,761
(61,721)
28,595
1,122
3,051
(2,537)
1,636
906
2,200
(2,611)
495
20
84
(44)
60
1,055
2,470
(3,222)
303
627
592
(607)
612
337
278
(639)
(24)
(140)
886
(617)
129
215
849
(1,641)
(577)
584
2,062
(1,960)
686
502
1,852
(2,180)
174
(30)
1,388
(506)
852
435
575
(998)
12
2,136
1,554
(2,350)
1,340
(93)
609
(487)
29
660
2,728
(1,957)
1,431
95
864
(940)
19
406
3,108
(1,522)
1,992
(90)
454
(419)
(55)
426
713
(780)
359
51
88
(39)
100
389
463
(1,009)
(157)
829
2,243
(1,149)
1,923
(16)
184
(74)
94
2,831
2,585
(4,543)
873
1,033
1,903
(1,847)
1,089
14,290
33,783
(34,678)
13,395
43,845
94,544
(96,399)
41,990

The table above is presented at an aggregate country programme level. Included in these balances are funds in deficit which total £4.2m (2022: £2.4m). Fund balances may be negative when expenditure is made on a project that is expected to be reimbursed by a donor, but where, at the end of the financial year, not all the conditions have been met that would justify this income being recognised within the accounts. This results in an excess of expenditure over income on individual restricted funds. It is considered that the likelihood of reimbursement is of a sufficient level to justify the carrying of these deficit funds at the end of the year.

The Trustees’ Annual Report explains the main reasons why the group and the charity hold unrestricted funds and the adequacy of these funds at the year end. The reserves policy is reviewed on an annual basis and regularly monitored.

17. Movements in funds for prior year

Unrestricted funds:
Designated funds:
Fixed assets fund
Property project
Total Designated funds
General funds
Total unrestricted funds
Restricted funds:
Bangladesh
Burkina Faso
East Africa Region
Ethiopia
Ghana
Kingdom of eSwatini
Liberia
Madagascar
Malawi
Mali
Mozambique
Myanmar
Nepal
Niger
Nigeria
Pakistan
Rwanda
Sierra Leone
Southern Africa Region
South Asia Region
Tanzania
Uganda
West Africa Region
Zambia
UK
Total restricted funds
Total funds		 At 1 April
2021
£000
Income
£000
Expenditure
£000
Transfers
£000
At 31 March
2022
£000
4,585
30
580
-
5,195
-
-
29
(29)
-
4,585
30
609
(29)
5,195
18,537
61,680
(56,714)
857
24,360
23,122
61,710
(56,105)
828
29,555
1,958
2,460
(3,296)
-
1,122
2,004
1,998
(3,096)
-
906
35
11
(26)
-
20
1,005
1,771
(1,721)
-
1,055
498
856
(727)
-
627
207
495
(365)
-
337
139
386
(665)
-
(140)
318
1,777
(1,880)
-
215
399
1,629
(1,444)
-
584
440
2,124
(2,062)
-
502
(44)
1,101
(1,087)
-
(30)
528
1,023
(1,116)
-
435
925
2,638
(1,427)
-
2,136
(461)
1,244
(876)
-
(93)
(23)
1,554
(871)
-
660
383
539
(827)
-
95
140
1,352
(1,086)
-
406
(172)
563
(481)
-
(90)
115
885
(574)
-
426
40
35
(24)
-
51
263
692
(566)
-
389
780
488
(439)
-
829
64
3
(83)
-
(16)
1,444
2,557
(1,170)
-
2,831
2,321
2,022
(2,482)
(828)
1,033
13,306
30,203
(28,391)
(828)
14,290
36,428
91,913
(84,496)
-
43,845

The table above is presented at an aggregate country programme level. Included in these balances are funds in deficit which total £2.4m (2021: £2.7m). These arise due to the timing differences between the income due under individual funding contracts still to be claimed and the actual project expenditure already incurred.

The Trustees’ Annual Report explains the main reasons why the group and the charity hold unrestricted funds and the adequacy of these funds at the year end. The reserves policy is reviewed on an annual basis and regularly monitored.

66 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 67

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

Designated funds

Designated funds currently consist of the Fixed Asset Fund of £5.7m (2022: £5.2m) which represents the net book value of the charity’s intangible and tangible fixed assets.

General funds

The Board of Trustees has set a target operational reserve within the general funds to enable WaterAid to meet the potential costs related to any corporate risks materialising. The rationale for these reserves is discussed in the Trustees’ Annual Report and the operational reserve targeted for 2022-23 was a range of £13m-£17m. The balance at 31 March 2023 was £22.8m (2022: £24.3m).

Restricted funds

Restricted funds are used for specified purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of support costs in line with the terms of the contract.

Negative balances are carried forward on funds only where further income is considered highly probable in the following year.

18. Analysis of group net assets between funds

Restricted income funds
Designated funds
General income funds
Total funds as at 31 March 2023		 Fixed
assets
£000
Net current
assets
£000
2023 Total
funds
£000
Fixed
assets
£000
Net current
assets
£000
2022 Total
funds
£000
-
13,395
13,395
-
14,290
14,290
5,748
-
5,748
5,195
-
5,195
-
22,847
22,847
-
24,360
24,360
5,748
36,242
41,990
5,195
38,650
43,845

19. Taxation and charitable status

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity’s trading subsidiary WaterAid Trading Limited pays available profits to the charity through Gift Aid under deed of covenant. Its charge for corporation tax in the year was £nil (2022: £nil).

20. Company limited by guarantee

The liability of 37 members (2022: 40) of the charity is limited by guarantee to £1 each.

21. Operating lease commitments

Notes to the financial statements For the year ended 31 March 2023 (continued)

22. Net movement in funds or net income for the year

This is stated after charging/(crediting):
Amortisation and depreciation
Trustees’ indemnity insurance
Trustees’ reimbursed expenses
Auditors' remuneration – PwC and its afliates:
Audit – WaterAid UK
Audit – WaterAid Trading Limited
Audit – country programmes
Audit Gift in Kind
Auditors’ remuneration – BDO and its afliates:
Audit – WaterAid UK
Audit – WaterAid Trading Limited
Audit – country programmes
Auditors’ remuneration - Other audit frms
Exchange (gain)/loss
UK operating lease rentals – buildings		 2023
£000
2022
£000
1,360
1,245
6
6
5
-
65
-
12
-
3
-
43
-
-
53
-
8
25
30
62
81
(886)
(925)
902
601

Trustees of the charity do not receive remuneration for their services but are reimbursed for travel and accommodation expenses. Five Trustees were reimbursed for expenses incurred during the year £5,237 (2022: £nil).

Trustee indemnity insurance covers Trustees against personal liability in certain circumstances if legal claims were to be made against them.

The group paid £167K in audit fees in the year ended 31 March 2023 (2022: £172K). This figure includes £77K (2022: £61K by BDO) for the consolidated statutory audit provided by PwC UK, who also provided audit services as a gift in kind with a value of £43K, but excludes country programme audits carried out separately by PwC. Other audit fees relate to services provided by firms other than PwC and BDO for overseas country office external audits, project audits and donor grant audits as required by the conditions of funding contracts.

The charity had the following future minimum lease payments under noncancellable operating leases for each of the following periods:

Land & Buildings

Within one year
1 – 2 years
2 – 5 years
More than 5 years		 2022
£000
2022
£000
977
680
1,023
906
3,156
2,921
1,804
3,866
6,960
8,373

WaterAid holds a 15 year operating lease from 31 December 2019 for the rental of office space in the UK with a break option after 10 years.

68 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 69

Section 3 Financial statements

Section 3 Financial statements

Notes to the financial statements For the year ended 31 March 2023 (continued)

23. Related party transactions

WaterAid, WaterAid America, WaterAid Australia, WaterAid Canada, WaterAid Sweden, WaterAid India (Jal Seva Charitable Foundation) and WaterAid Japan are members of WaterAid international, operating under licence from WaterAid international to use the name WaterAid. All these organisations share the same objectives and vision. WaterAid receives funding for its charitable objectives from WaterAid America, WaterAid Australia, WaterAid Canada, WaterAid Japan and WaterAid Sweden. WaterAid has provided grants to support WaterAid America and WaterAid India in 2023 for programmatic, fundraising and organisational development.

Transactions between WaterAid and other member countries of the WaterAid Federation were as follows:

WaterAid America
WaterAid Australia
WaterAid Canada
WaterAid Japan
WaterAid Sweden
WaterAid India
WaterAid International		 Received from:
Paid to:
2023
£000
2022
£000
2023
£000
2022
£000
10,472
7,868
2,010
1,536
551
456
-
-
1,549
861
-
-
18
51
-
-
3,178
3,955
-
-
-
-
1,309
1,967
115
-
529
-
15,883
13,191
3,848
3,503

During the year WaterAid did not contribute to the WaterAid international investment fund (2022: £nil) and paid expenses on behalf of WaterAid international of £168K (2022: £141K). At 31st March the outstanding debtor balance with WaterAid international and other members was £225K (2022: £166K) which is due to be settled early in the 2023/24 financial year. WaterAid donated services as a gift in kind to WaterAid international in the form of office space and staff costs during the year. The donated services were valued at £664K (2022: £712K).

Full declarations of interest are obtained from Trustees and Directors for their own activities outside of WaterAid governance as well as those of their spouses/partners and dependants.

Harpinder Collacott , a trustee of WaterAid, was a former executive director and shareholder of Development Initiatives International. During the year WaterAid made no payments to Development Initiatives International (2022: £nil). She is also a trustee of Bond to which WaterAid made payments of £51,811 in 2023 (2022: £60,711). Harpinder is also an executive director with Mercy Corps. During the year WaterAid received £403,195 from Mercy Corp.

Notes to the financial statements

For the year ended 31 March 2023 (continued)

Transactions between WaterAid UK Net income Balance owed Net income Balance owed
and WaterAid Trading to charity to charity at 31 to charity to charity at 31
£’000 March 2023 £’000 March 2022
£’000 £’000
Trademark – Logo 21 - 19 -
Deed of Covenant (311) - (330) -
Admin expenses 32 - 34 -
Group undertaking - 1,255 - 900
Other income - - (5) -

24. Financial instruments

24. Financial instruments
Financial assets
Cash at bank and in hand
Grant debtors
Other debtors
Accrued income
Financial liabilities
Trade creditors
Other creditors
Accruals		 2023
£000
2022
£000
37,352
36,998
3,224
4,549
2,364
2,827
2,418
1,956
45,358
46,330
4,041
3,555
1,122
1,005
3,194
2,638
8,357
7,198

In respect of disclosure of financial instruments, sections 11 and 12 of FRS 102 have been adopted. All financial assets and liabilities are payable or receivable within one year are therefore measured at an undiscounted value.

Andy Green was appointed chair of WaterAid in October 2020. He was a trustee of WWF to which WaterAid made payments of £6,213.99 in 2023 (2022: £13.000).

Guido Schmidt-Traub is an employee of Systemiq Limited. During the year Wateraid made no payments to Systemiq Limited in 2023 (2022: £106,749).

Heidi Mottram is a trustee and CEO of Northumbrian Water Group. During the year WaterAid received £76,122 from Northumbrian Water Group Ltd (2022 £38,775). Heidi also personally donated £5,000 in 2023 (2022: £5,000).

Alyson Clark is a trustee of WaterAid and personally donated £120 in 2023 (2022: £120).

Peter Simpson is a trustee and CEO of Anglian Water. During the year WaterAid received £843,216.35 from Anglian Water Services Limited (2022: £679,000) and £80 from AWG Corporate Services Limited (2022: £160). Peter also personally donated £5,520 in 2023 (2022: £3,630).

Rachel Westcott , an executive Director of People and Organisational Development, was a Director of of Water & Sanitation for the Urban Poor (WSUP). During the year, WaterAid made no payments to WSUP (2022: £nil).

The charity has disclosed the financial statements of the subsidiary, WaterAid Trading Limited, detailed in note 14.

Heather Skilling, a trustee of WaterAid, is a consultant to The World Bank. During the year WaterAid received £30,711.22 (2022: £nil) from The World Bank.

70 / WaterAid UK Annual report 2022–23

WaterAid UK Annual report 2022–23 / 71

We are determined to make clean water, decent toilets and good hygiene normal for everyone, everywhere.

By tackling these three essentials in ways that last, people can change their lives for good.

Roushan outside the new water, sanitation and hygiene facilities at the Mohammad Nagar Darrus Salam Madrasa. Kaliganj, Satkhira, Bangladesh. December 2022.

WaterAid, 6th Floor, 20 Canada Square, London E14 5NN Registered charity numbers 288701 (England and Wales) and SCO39479 (Scotland) Company number: 1787329