2022-11-07T13:25:28-06:00 2021-12-31 410746749 CLIFTONLARSONALLEN LLP 10700 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2021-01-01 202601035 WATER FIRST INTERNATIONAL WATE 2062973024 1904 3RD AVENUE 1012 SEATTLE WA 98101 MARLA SMITH-NILSON EXECUTIVE DIRECTOR 2062973024 2022-11-01 1 MARLA SMITH-NILSON 999009999 ALLEN GILBERT CPA P01380103 4252506100 2022-11-01 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z WATER 1ST MARLA SMITH-NILSON 1904 3RD AVENUE 1012 SEATTLE WA 98101 2394313 0 X WWW.WATER1ST.ORG X 2005 WA WATER 1ST'S MISSION IS TO UNITE PEOPLE TO END THE GLOBAL WATER AND SANITATION CRISIS. 8 8 10 250 0 0 2506709 2276619 19419 0 263 2921 -11907 44244 2514484 2323784 1111342 1328467 0 0 496146 509822 0 0 179494 195792 180524 1803280 2018813 711204 304971 2621978 2744455 1563025 1380531 1058953 1363924 X SEE SCHEDULE O 0 0 1796299 1328467 63755 SEE SCHEDULE O 1796299 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 1 10 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AR CA FL GA HI IL KS KY MA MD MI MN MS NC NH NJ NM NY OR PA RI SC TN UT VA WI WV CO OH CT X X X THE ORGANIZATION 2062973024 1904 3RD AVENUE 1012 SEATTLE WA 98101 KATY BATY CHAIR 2.00 X X 0 0 0 JOSH EPPERSON VICE CHAIR 2.00 X X 0 0 0 DICK MOXON TREASURER 2.00 X X 0 0 0 LYNN CARR DIRECTOR 2.00 X 0 0 0 JULIA CLARKE DIRECTOR 2.00 X 0 0 0 LARA KAMMERECK DIRECTOR 2.00 X 0 0 0 TIM KIRLEY DIRECTOR 2.00 X 0 0 0 DIANE LANGSTRAAT DIRECTOR 2.00 X 0 0 0 MARLA SMITH-NILSON EXECUTIVE DIRECTOR 40.00 X 100498 0 3008 KIRK ANDERSON DIRECTOR OF INTERNATIONAL PROGRAMS 40.00 X 100275 0 3005 200773 0 6013 2 0 0 0 0 1124259 212890 939470 2276619 175 175 53664 50918 2746 2746 2746 0 1124259 15479 -15479 -15479 100 4132 -4032 -4032 OBLIGATION WRITEOFF 541900 63755 63755 63755 2323784 63755 0 -16590 1328467 1328467 103508 72455 10351 20702 335964 264613 11380 59971 6023 4622 296 1105 27227 21731 975 4521 37100 28874 1706 6520 90 90 11061 11061 25781 13727 22 12032 68471 5808 2106 60557 10564 3785 6779 58016 51512 1084 5420 1205 -688 41 1852 842 717 90 35 675 675 3819 1 3818 2018813 1796299 43020 179494 1435509 1834330 589341 643239 539430 235470 2807 0 12283 11331 4357 4196 836 161 41772 19924 2621978 2744455 35035 27685 1416974 1347362 4571 5484 106445 0 1563025 1380531 X 1058953 1363924 1058953 1363924 2621978 2744455 304971 0 X X 0 1 X 1 0 X 2438803 2983993 2624213 2506709 2276619 12830337 2438803 2983993 2624213 2506709 2276619 12830337 1960545 10869792 401 910 988 263 175 2737 76955 47323 124278 12957352 40468 0.83890 0.84100 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: FUNDRAISING EVENT REVENUES RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4357 4196 161 161 X 2327916 4132 4132 2323784 0 2323784 2022945 4132 4132 2018813 0 2018813 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE ORGANIZATION QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170(B1)(A)(VI) AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION UNDER SECTION 509(A)(1). THE ORGANIZATION'S INCOME TAX FILINGS ARE SUBJECT TO EXAMINATION BY VARIOUS TAXING AUTHORITIES. THE ORGANIZATION FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION SUBTOPIC 740-10, INCOME TAXES. THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 4,132. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 4,132. 1 BANGLADESH 0 0 PROGRAM SERVICES WATER FIRST INTERNATIONAL PROVIDES GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) BASED IN DHAKA, BANGLADESH IN ORDER TO SUPPORT THE IMPLEMENTATION OF PROJECTS THAT INCLUDE PROVISION OF CONVENIENT, SAFE WATER, HYGIENE EDUCATION, AND SANITARY TOILETS. THE ORGANIZATION'S GOAL IS TO MAXIMIZE COST-EFFECTIVENESS BY LEVERAGING LOCAL RESOURCES. IN THE URBAN SLUMS OF DHAKA (THE CAPITAL CITY), CHITTAGONG AND KHULNA (THE COUNTRY'S 2ND AND 3RD LARGEST CITIES, RESPECTIVELY) BENEFICIARIES PAY 100 PERCENT OF THE CAPITAL COSTS OF THEIR PROJECTS THROUGH ONE OR TWO-YEAR LOANS. THE LOANS ARE REPAID TO THE LOCAL NON-GOVERNMENTAL ORGANIZATION, WHO IS THE RECIPIENT OF WATER FIRST'S GRANTS. REPAID LOAN FUNDS ARE REVOLVED AND USED FOR ADDITIONAL WATER AND SANITATION PROJECTS AND CREATE A SUSTAINABLE SOURCE OF FUNDS FOR WATER FIRST'S BANGLADESH PARTNER. IN 2021, WATER FIRST SUPPORTED THE CONSTRUCTION OF 356 SMALL-SCALE WATER SYSTEMS SERVING 9,604 PEOPLE. 666487 HONDURAS 0 0 PROGRAM SERVICES WATER FIRST INTERNATIONAL PROVIDES GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) WORKING IN THE DEPARTMENT OF LEMPIRA THAT HELPS COMMUNITIES ORGANIZE AND BUILD SYSTEMS TO PROVIDE PIPED WATER AND TOILETS AT EVERY HOUSEHOLD. IN 2021, PROJECTS SERVING A COMBINED POPULATION OF 3,978 PEOPLE WERE COMPLETED IN THE FOLLOWING COMMUNITIES: SAN FRANCISCO, LA HACIENDA, AND LA ARADA (PART OF A LARGER PROJECT IN CANDELARIA, MAPULACA, VIRGINIA, CASITAS (MUNICIPALITY OF COLOLACA), LOS REALES AND YUPURAL (VALLADOLID MUNICIPALITY), COQUIN (SAN ANDRES), CARRIZALITO (ERANDIQUE), AND EL ROBLE (PIRAERA). NEW PROJECTS SERVING A COMBINED POPULATION OF 2220 WERE INITIATED IN THE FOLLOWING COMMUNITIES AND WILL BE COMPLETED IN 2022: ERAYOCLA AND YOLOMON (ERANDIQUE MUNICIPALITY), CALVARIO (CANDELARIA), QUEZUNGUAL (GUALCINSE), SAN SIMON 1 (SAN ANDRES), AND COJUARQUE (GUALCINSE). 650000 MOZAMBIQUE 0 0 PROGRAM SERVICES WORK IN MOZAMBIQUE WAS COMPLETELY DISRUPTED DUE TO A VIOLENT INSURGENCY IN THE PROVINCE OF CABO DELGADO THAT HAS APPROACHED CIVIL WAR STATUS AND FORCED A LARGE PROPORTION OF THE POPULATION INTO EXILE IN NEIGHBORING PROVINCES. WE ARE WORKING WITH STAFF OF OUR PARTNER ORGANIZATION TO IDENTIFY NEW OPPORTUNITIES TO ASSIST US WITH IDENTIFYING NEW OPPORTUNITIES IN THE REGION AS WELL AS MONITORING AND EVALUATION OF OUR INTERNATIONAL PROGRAMS. 12000 ETHIOPIA 0 0 PROGRAM SERVICE WATER FIRST INTERNATIONAL PROVIDES GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) BASED IN ETHIOPIA IN ORDER TO SUPPORT THE IMPLEMENTATION OF PROJECTS THAT INCLUDE PROVISION OF CONVENIENT, SAFE WATER, HYGIENE EDUCATION, AND SANITARY LATRINES. IN OROMIA, ETHIOPIA, ONGOING SOCIAL UNREST CONTINUED TO COMPLICATED EFFORTS TO CONSTRUCT THE DIMA JELIWAN PROJECT, THE FIRST WATER SYSTEM TO ESTABLISH HOME WATER CONNECTIONS IN THE REGION. IN 2021, 27 INDIVIDUAL CONNECTIONS WERE ESTABLISHED SERVING 27 HOMES, A SCHOOL, A HEALTH CLINIC AND A COMMUNITY GATHERING PLACE IN DIMA JELLIWAN. ALSO 11 NEW HOUSEHOLD CONNECTIONS WERE CONSTRUCTED IN ILAMU MUJA AND 1 IN BISHIKILTU, PROJECTS COMPLETED OVER TEN YEARS AGO. IN OCTOBER 2021, THE ORGANIZATION DECIDED TO SUSPEND INVESTMENTS IN ETHIOPIA UNTIL WE ARE ABLE TO VISIT AND ASSESS CONDITIONS IN PERSON. SOUTH ASIA 0 0 PROGRAM SERVICES WATER 1ST DECIDED NOT TO FUND THE CONSTRUCTION OF NEW PROJECTS THROUGH OUR PARTNER IN THE SUNDARBANS. OUR DECISION TO END FUNDING WAS BASED UPON OUR CONCLUSION THAT THE PROGRAM WAS AT CAPACITY & WAS NOT LIKELY TO EVOLVE FURTHER THROUGH OUR PARTICIPATION. HOWEVER, OUR LOAN PROGRAM CONTINUES & NEW WATER POINTS AND TOILETS ARE BEING CONSTRUCTED USING REVOLVING LOAN FUNDS. REPAID LOAN FUNDS FROM PREVIOUS WATER PROJECTS HAS ALLOWED OUR LOCAL PARTNER ORGANIZATION TO DRILL TWO NEW WELLS AND INSTALL HANDPUMPS TO SERVE 2 ADDITIONAL RURAL COMMUNITIES IN THE SUNDARBANS REGION OF WEST BENGAL SINCE OUR GRANT FUNDING WAS DISCONTINUED. IN 2021, WATER FIRST KEPT IN CONTACT WITH OUR INDIA PARTNER VIA EMAIL AND THEY REPORTED THAT ALL SYSTEMS ARE FUNCTIONING. 0 0 0 0 0 0 1328487 0 1328487 BANGLADESH COMMUNITY BASED WATER SUPPLY & SANITATION PROJECT TARGETING URBAN SLUMS IN BANGLADESH. 666467 WIRE TRANSFER 0 N/A N/A HONDURAS WATER & SANITATION SYSTEM FOR SMALL COMMUNITIES IN LEMPIRA. 650000 WIRE TRANSFER 0 N/A N/A MOZAMBIQUE 19 DE OUTUBRO WATER AND SANITATION PROJECT 12000 WIRE TRANSFER 0 N/A N/A 0 0 0 0 0 0 PART I, LINE 2: WHEN WATER 1ST MAKES A GRANT TO A RECIPIENT ORGANIZATION, THESE PROCEDURES ARE FOLLOWED: A GRANT AGREEMENT IS SIGNED BETWEEN WATER 1ST AND EACH RECIPIENT ORGANIZATION DESCRIBING THE PROJECT FOR WHICH THE GRANT FROM WATER 1ST IS BEING GIVEN IN SUPPORT OF WATER, SANITATION, AND HEALTH PROJECTS IN SPECIFIC COMMUNITIES, OR GROUP OF SPECIFIC COMMUNITIES. THE AGREEMENT WILL SPECIFY THE PURPOSES FOR WHICH THE GRANT IS BEING MADE, REQUIRING A FINAL NARRATIVE AND FINANCIAL REPORTING DURING PROJECT IMPLEMENTATION, REQUIRING A FINAL NARRATIVE AND FINANCIAL REPORT, AND ACKNOWLEDGING WATER 1ST'S AUTHORITY TO WITHHOLD AND/OR RECOVER GRANT FUNDS IN CASE SUCH FUNDS ARE, OR APPEAR TO BE, MISUSED. GRANT AGREEMENTS ARE ENDORSED BY FINANCING BY THE MEMBERS OF THE INTERNATIONAL PROGRAMS TEAM (CURRENTLY STAFF MEMBERS KIRK ANDERSON, MARLA SMITH-NILSON, AND STEVE DEEM, MOZAMBIQUE PARTNER ORGANIZATION STAFF MEMBER TCHEIZI MUTEMBA AND BOARD MEMBER RICHARD MOXON) WITHIN THE ANNUAL BUDGET ALLOWANCES APPROVED BY THE BOARD OF DIRECTORS. THE EXECUTIVE DIRECTOR OR ANYONE WITH CHECK SIGNING AUTHORITY WILL TRANSFER THE QUARTERLY PROGRESS PAYMENT TO THE PARTNER ORGANIZATIONS ACCORDING TO THE SCHEDULE SPECIFIED IN THE GRANT AGREEMENT. WATER 1ST STAFF WILL THEN NOTIFY OUR LOCAL PARTNER ORGANIZATION OF TRANSFER AND ASK THEM TO COMPLETE A WIRE TRANSFER CONFIRMATION FORM OR PROVIDE OTHER CONFIRMATION THAT THE FUNDS WERE RECEIVED. AFTER FUNDS HAVE BEEN TRANSFERRED, OUR LOCAL PARTNER ORGANIZATIONS WILL BE REQUIRED TO SUBMIT QUARTERLY FINANCIAL REPORTS AND WILL ALSO BE REQUIRED TO HAVE AN ANNUAL INDEPENDENT AUDIT OF THEIR ACCOUNTS. WATER 1ST IS AWARE OF THE U.S. EXECUTIVE ORDERS AND U.S. LAW THAT PROHIBIT TRANSACTIONS WITH, AND THE PROVISION OF RESOURCES AND SUPPORT TO, INDIVIDUALS AND ORGANIZATIONS ASSOCIATED WITH TERRORISM. IN SELECTING AND MONITORING OUR LOCAL PARTNER ORGANIZATIONS, WE WILL WORK TO ENSURE COMPLIANCE WITH THESE EXECUTIVE ORDERS AND LAWS, BY MONITORING THE DISTRIBUTIONS WE MAKE TO OUR LOCAL PARTNER ORGANIZATIONS AND ALSO CROSS-CHECKING WITH THE U.S. DEPARTMENT OF STATE'S CURRENT LIST OF DESIGNATED FOREIGN TERRORIST ORGANIZATIONS. WATER 1ST ALSO CONDUCTS SITE INSPECTIONS AND REQUIRE ACCESS TO ALL INVOICES, FINANCIAL RECORDS AND ACCOUNTS FOR THE PROJECTS WE SUPPORT THROUGH OUR LOCAL PARTNER ORGANIZATIONS. WATER 1ST RESERVES THE RIGHT TO HAVE AN AUDIT CONDUCTED IF ANY QUESTIONS CANNOT BE RESOLVED DURING OUR SITE INSPECTIONS. PART I, LINE 3: WATER 1ST HAS ONGOING MONITORING OF EACH GRANT AND EACH LOCAL PARTNER ORGANIZATION. ACCORDING TO OUR GRANT AGREEMENTS, EACH OF OUR LOCAL PARTNER ORGANIZATIONS WILL BE REQUIRED TO: SUBMIT QUARTERLY FINANCIAL REPORTS AS WELL AS FINAL FINANCIAL REPORT AFTER EXPENDITURE OF THE ENTIRE GRANT TO WATER 1ST DESCRIBING IN DETAIL HOW THE GRANT WAS SPENT; SUBMIT QUARTERLY NARRATIVE PROGRESS REPORTS AS WELL AS A FINAL REPORT AFTER EXPENDITURE OF THE ENTIRE GRANT TO WATER 1ST DESCRIBING THE EXTENT TO WHICH THE GOALS AND PURPOSES OF THE PROJECT OR PROGRAM FOR WHICH THE GRANT WAS OBTAINED WERE ACCOMPLISHED; PROVIDE THE MOST RECENT COPY OF AN ANNUAL INDEPENDENT AUDIT OF THE LOCAL PARTNER ORGANIZATION'S FINANCIAL RECORDS; PROVIDE, AS PART OF THEIR FINANCIAL REPORT TO WATER 1ST, COMPLETE RECORDS OF EACH RECEIPT AND EXPENDITURE MADE IN CONNECTION WITH THE GRANT; USE THE ENTIRE GRANT ONLY FOR THE PURPOSES STATED IN THE AGREEMENT BETWEEN WATER 1ST AND THE LOCAL PARTNER ORGANIZATION; AND REPAY ANY PORTION OF THE GRANT NOT USED FOR THE PURPOSES STATED IN THE GRANTEE'S GRANT PROPOSAL. WATER 1ST STAFF MAKES PERIODIC VISITS, NO LESS THAN ANNUALLY, TO OUR LOCAL PARTNER ORGANIZATIONS AND THE PROJECTS SUPPORTED BY WATER 1ST, TO CONDUCT OUR OWN INSPECTION OF THE ONGOING OR COMPLETED WATER, SANITATION AND HEALTH PROJECTS FUNDED BY WATER 1ST. WATER 1ST HAS A WRITTEN EVALUATION THAT WE COMPLETE WHICH INVOLVES INTERVIEWS WITH THE STAFF OF THE LOCAL PARTNER ORGANIZATION, THE WATER COMMITTEES AND INDIVIDUAL HOUSEHOLDS. OBSERVATIONS WILL ALSO BE MADE OF THE USE AND CONSTRUCTION OF THE WATER AND SANITATION SYSTEMS. AS PART OF EACH VISIT, WATER 1ST MEETS WITH THE STAFF OF THE LOCAL PARTNER ORGANIZATION TO SHARE THE EVALUATION RESULTS SO THAT THE LOCAL PARTNER ORGANIZATION CAN FURTHER IMPROVE ITS EFFORTS IN THE COMMUNITIES WE SUPPORT. THESE MEETINGS COVER SUCH TOPICS AS HEALTH EDUCATION, PROJECT OPERATION AND MAINTENANCE, FINANCE, WATERSHED PROTECTION, SANITATION, AND COMMUNITY ORGANIZATION. THESE MEETINGS ALSO ALLOW THE STAFF OF WATER 1ST TO PROVIDE SOME CROSS-FERTILIZATION OF IDEAS AND EXPERIENCE SHARING BETWEEN LOCAL PARTNER ORGANIZATIONS. WHILE CONDUCTING OVERSIGHT OF THE GRANTS, IF WATER 1ST DETERMINES THAT ANY PORTION OF A GRANT HAS BEEN USED FOR A PURPOSE OTHER THAN STATED IN THE AGREEMENT, WATER 1ST WILL TAKE ALL REASONABLE AND APPROPRIATE STEPS TO RECOVER SUCH WRONGFULLY DIVERTED FUNDS AND, AT THE DISCRETION OF WATER 1ST STAFF, WILL IMMEDIATELY TERMINATE THE GRANT ARRANGEMENT WITHOUT ANY OBLIGATION TO MAKE FURTHER DISBURSEMENTS OF THE GRANT. IF WATER 1ST DETERMINES THAT A LOCAL PARTNER ORGANIZATION HAS OTHERWISE VIOLATED THE AGREEMENT (BY, FOR EXAMPLE, FAILING TO SUBMIT REQUIRED REPORTS), WATER 1ST WILL EITHER, AT THE DISCRETION OF THE STAFF, (A) WITHHOLD ANY FUTURE INSTALLMENTS OF THE GRANT UNTIL GRANTEE CORRECTS THE VIOLATION, OR (B) IMMEDIATELY TERMINATE THE ARRANGEMENT WITHOUT ANY OBLIGATION TO MAKE FURTHER DISBURSEMENTS OF THE GRANT. PART III ACCOUNTING METHOD: ONLINE FUNDRAISING DRIVE 1124259 1124259 GIVE WATER GIVE LIFE 5500 1257 2 8518 204 1124259 1124259 5500 9775 204 15479 -15479 FORM 990 SCHEDULE G, PART II EXPENSES FOR OTHER EVENTS WERE INCURRED BEFORE THE EVENTS WERE CANCELLED. X 7 53634 0 0 0 0 FORM 990 PART III, LINE 1 WATER 1ST'S MISSION IS TO ENABLE THE WORLD'S POOREST PEOPLE TO IMPLEMENT AND SUSTAIN COMMUNITY-MANAGED PROJECTS INTEGRATING CLEAN WATER SUPPLY, SANITATION AND HYGIENE EDUCATION. WATER 1ST UNITES PEOPLE TO FIGHT THE GLOBAL WATER AND SANITATION CRISIS . WE BELIEVE THIS WORLDWIDE, SILENT CATASTROPHE WILL BE SOLVED WHEN WE BUILD A COMMUNITY OF CONCERNED INDIVIDUALS, AND MOBILIZE THEM TO TAKE SIMPLE, EFFECTIVE ACTIONS. FORM 990 PART III, LINE 4A IN 2021, THE ORGANIZATION COMPLETED 365 PROJECTS SERVING 13,582 PEOPLE. EVERY PROJECT INCORPORATES ACCESS TO WATER AND TOILETS, HYGIENE EDUCATION, AND COMMUNITY DEVELOPMENT. AS OF DECEMBER 2021, THE WATER FIRST COMMUNITY CONTRIBUTED OVER $29 MILLION TO SUPPORT 3,878 PROJECTS SERVING 255,698 PEOPLE IN FIVE COUNTRIES. WE ESTIMATE THAT OVER 1 MILLION CUMULATIVE HOURS OF LABOR HAVE BEEN SAVED AS A RESULT OF WATER1ST PROJECTS. PROJECT WORK WAS IMPACTED IN EACH COUNTRY DUE TO THE CORONA VIRUS PANDEMIC. EACH PROJECT COUNTRY HAD PERIODS OF TIME WHEN THEY WERE UNABLE TO CONTINUE WORK DUE TO STAY-AT-HOME ORDERS FROM THE GOVERNMENT. THE ORGANIZATION'S PARTNERS CONTINUED EFFORTS TO PREVENT COVID-19 BY DISSEMINATING IMPORTANT MESSAGES AS WELL AS DISTRIBUTING PERSONAL PROTECTIVE GEAR, HANDWASHING STATIONS, AND HYGIENE SUPPLIES. IN BANGLADESH, THE ORGANIZATION CONTINUED WORK IN THE NEW GEOGRAPHIC AREAS ESTABLISHED IN 2019. 356 WATER SYSTEMS SERVING 9,604 PEOPLE IN URBAN SLUM SETTLEMENTS IN DHAKA, CHATTOGRAM, AND KHULNA WERE CONSTRUCTED. IN HONDURAS, NINE PROJECTS WERE COMPLETED PROVIDING ACCESS TO PIPED WATER AND TOILETS AT EVERY HOUSEHOLD, COMMUNITY CENTER, SCHOOL AND CLINIC FOR NINE RURAL LEMPIRA COMMUNITIES THAT ARE HOME TO 3,978 PEOPLE. ADDITIONALLY, THE ORGANIZATION'S LOCAL HONDURAN PARTNER CONTINUES WORK ON A LARGE RURAL TOWN PROJECT SERVING NEARLY 4,000 PEOPLE THAT WILL BE COMPLETED IN 2022 AND INITIATED SIX ADDITIONAL PROJECTS THAT WILL BE COMPLETED IN 2022 AND 2023. IN OROMIA, ETHIOPIA, 27 ADDITIONAL HOUSEHOLD CONNECTIONS WERE MADE TO THE DIMA JELLIWAN SYSTEM IN 2021. THE TOTAL NUMBER OF METERED CONNECTIONS IS 84. ALSO 11 NEW CONNECTIONS WERE CONSTRUCTED IN ILAMU MUJA AND 1 IN BISHIKILTU, PROJECTS COMPLETED OVER TEN YEARS AGO. WORK IN ETHIOPIA WAS DISRUPTED DUE TO VIOLENCE IN TIGRAY AND THE ONGOING PROTESTS AND VIOLENCE IN OROMIA. IN OCTOBER 2021, THE ORGANIZATION DECIDED TO SUSPEND INVESTMENTS IN ETHIOPIA UNTIL WE ARE ABLE TO VISIT AND ASSESS CONDITIONS IN PERSON. WORK IN MOZAMBIQUE CONTINUES TO BE COMPLETELY DISRUPTED DUE TO A VIOLENT INSURGENCY IN THE PROVINCE OF CABO DELGADO THAT HAS APPROACHED CIVIL WAR STATUS AND FORCED A LARGE PROPORTION OF THE POPULATION INTO EXILE IN NEIGHBORING PROVINCES. THE ORGANIZATION CONTINUED A SEARCH FOR A NEW PARTNER IN SUB-SAHARAN AFRICA WHICH IT EXPECTS TO BEGIN FUNDING IN 2022. THE ORGANIZATION'S GOAL IS TO MAXIMIZE COST-EFFECTIVENESS BY LEVERAGING LOCAL RESOURCES. IN THE URBAN SLUMS OF DHAKA, CHATTOGRAM, AND KHULNA, BANGLADESH, FOR EXAMPLE, BENEFICIARIES PAY 100% OF THE CAPITAL COSTS OF THEIR PROJECTS THROUGH TWO-YEAR LOANS. THE LOANS ARE REPAID TO THE LOCAL NON-GOVERNMENTAL ORGANIZATION, WHO IS THE RECIPIENT OF WATER FIRST'S GRANTS. REPAID LOAN FUNDS ARE REVOLVED AND USED FOR ADDITIONAL WATER AND SANITATION PROJECTS AND CREATE A SUSTAINABLE SOURCE OF FUNDS FOR WATER FIRST'S BANGLADESH PARTNER. IN MOZAMBIQUE, HONDURAS AND ETHIOPIA, BENEFICIARIES AND THE LOCAL GOVERNMENT CONTRIBUTE CASH, LABOR, AND LOCAL MATERIALS, WHICH ARE VALUED AT UP TO 25% OF THE TOTAL PROJECT COST. THE ORGANIZATION'S HONDURAS PARTNER HAS THE CAPACITY TO PROVIDE ASSISTANCE FOR WATER SYSTEM CONSTRUCTION, EXPANSION, AND REPAIR ON A LOAN BASIS, FURTHER LEVERAGING LOCAL RESOURCES. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED FIRST BY THE EXECUTIVE DIRECTOR, THEN BY THE BOARD TREASURER AND BY THE FINANCE COMMITTEE OF THE BOARD VIA EMAIL. FORM 990, PART VI, SECTION B, LINE 12C ALL WATER 1ST EMPLOYEES AND BOARD MEMBERS ARE COVERED UNDER OUR CONFLICT OF INTEREST POLICY. WE MUST NOT ONLY AVOID ACTUAL CONFLICTS OF INTEREST, BUT ALSO AVOID SITUATIONS THAT MAY CREATE ANY APPEARANCE THAT A CONFLICT EXISTS. CONFLICTS ARE DETERMINED AT THE BOARD LEVEL AND ARE REVIEWED BY THE BOARD. EMPLOYEES AND BOARD MEMBERS HAVE A DUTY TO DISCLOSE ANY POSSIBLE CONFLICTS. AFTER DISCLOSURE, THE REMAINING BOARD SHALL DECIDE BY MAJORITY VOTE IF A CONFLICT OF INTEREST EXISTS. THESE DISCUSSIONS AND VOTES ARE RECORDED IN WRITTEN MEETING MINUTES. WE ALSO HAVE PROCEDURES IF WE FIND VIOLATIONS OF OUR POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE DIRECTOR IS CURRENTLY THE ONLY COMPENSATED OFFICER IN OUR ORGANIZATION. THE BOARD GOVERNANCE COMMITTEE UNDERTAKES AN ANNUAL PERFORMANCE REVIEW, INTERVIEWING BOARD AND STAFF MEMBERS FOR INPUT. COMPENSATION IS PARTLY BASED ON THIS REVIEW, AND ALSO BASED ON BENCH-MARKING COMPENSATION DATA FROM OTHER SIMILAR NONPROFITS. AT THE BOARD'S ANNUAL NOVEMBER MEETING, THE BUDGET FOR THE YEAR IS APPROVED, INCLUDING THE COMPENSATION FOR THE EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR IS NOT PRESENT FOR THIS DISCUSSION, NOT DOES THE EXECUTIVE DIRECTOR HAVE A VOTE ON THIS TOPIC OR ANY OTHER BOARD VOTE. FORM 990, PART VI, SECTION C, LINE 19 OUR AUDITED FINANCIAL STATEMENTS ARE AVAILABLE ON OUR WEBSITE FOR DOWNLOAD AND UPON REQUEST. ALL OTHER DOCUMENTS, SUCH AS OUR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND OTHER DOCUMENTS OF INTEREST TO OUR SUPPORTERS ARE AVAILABLE UPON REQUEST. FORM 990 PART XII, LINE 2C THE PROCESS FOR SELECTING AN INDEPENDENT ACCOUNTING FIRM HAS NOT CHANGED FROM THE PRIOR YEAR.