Charity number: 1068313 UNITED AID FOR AZERBAIJAN TRUSTEES, ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
UNITED AID FOR AZERBAIJAN CONTENTS Pages Reference and administrative details Trustees, annual report Independent examiner's report 10 Statement of financial activities 11 Balance sheet 12 Notes to the financial statements 13-15
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 REFERENCE AND ADMINISTRATIVE DETAILS Trustees Amanda Hopper Rachel Harrison Arthur John Loftus Patterson Registered Charity Number 1068313 Principal Office 30 St Mary's Road Leatherhead Surrey KT22 8EY Local Office 520 Huseyn Javid Prospect House 2 Baku Azerbaijan Independent examiner Jason Foxwell FCCA FCIE 39 Enfield Road Poole BH15 3U
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together with the financial statements of the charity for the year ended 31 December 2023. The financial statements comply with the Charities Act 2011, the Memorandum and Articles of A550ciation, and Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing theiraccounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. Structure The Trust was formed on 16 January 1998 by a declaration of trust. The trustees who served during the year were: Amanda Hopper Rachel Harrison Arthurjohn Loftus Patterson We recruit new Board members on the basis of the needs of the Board and in particular to ensure that the Board contains a good range of skills, experience, perspectives and expertlse. Recruitment is by a mix of personal recommendation and advertising, specifying the particular skills required. Personal recommendation comes from other Board members, staff, advisors and users of United For Aid Azerbaijan services. A candidate meets first with both the Chair and Executive Director before being invited to meet other Board members, which is followed by a formal interview by existing Board members. Election to the Board is by a vote of existing Board members. The United Aid for Azerbaijan maintains a right to have two of its appointees on the Board at any one time and appointees need to be approved by a vote of the entire Board. The Board is currently considering fixed terms for it5 members and roles. Induction and Training of Board Members New Board member5 are provided with background materials on the activitie5 and history of the charity and spend time with members of staff learning about the various operations of the charity. Those trustees with particular interests in legal a nd financial matters {Treasurer, for example) are briefed in detail on processes, systems, and reporting procedures, and are given appropriate direct access to information systems. Trustees are also invited to meet users of United Aid For Azerbaijan services. Running the Charity The charity's governing body, its Board, meets 2-3 times a year, according to the Governing Document. With the use of modern communication methods which Suit international organisations, the Board and Director are able to have regular online meetings. The Board sets strategic direction and oversees the proper operations of the charity but does not generally involve itself in detailed operational matters and decisions.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) Responsible to the Board is the Chief Executive Officer, Ms Gwendolyn Burchell MBE, who is invited to attend and report to Board meeting5. Ms. Gwendolyn Burchell manages all operational matters, including management of other staff, and may also recommend policyto the Board for its discussion. The Chief Executive Officer is not authorised to commit the charity to any single new expenditure over £2,000 without prior Board approval. All expenditure requires at least two signature5, one of which must be from a Trustee. Risk management The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. There is a register of risks and contingency plans for significant disasters. UAFA continues to maintain direction with regards to its mission and objectives in Azerbaijan, namely building the ecosystem around children who are excluded from society due to poverty, location and disability. 2023 Summary 2023 was a year of growth, seeing a major investment into our organisational development with the support of EBRD - both in terms of staff capacity and the digitalization infrastructure needed to expand our training programs to a wider audience. Running alongside this capacity building, UAFA facilitated the development of approximately 25 inclusive pre-schools as part of its Mektebim network. Thi5 represent5 a continuing, positive shift to social enterprise development as the organisation's sustainability strategy. The following three objectives continue to guide our work: Retain core values to keep children with families and work to improve level of care for those in institutions These values are based on the principle that all children have the right to develop to their potential, within a family setting that nurtures the child's development Maintain a motivated skilled team Training and capacity development are an integral part of UAFA'S methodology, to ensure that the team are continually developing the experience and skills they need through practice and participatory planning Become sustainable by the end of the year This continues to be a key objective, as UAFA develops social enterprise models based on our unique skills, experience and community-based relationships. Detailed Report on Activities- 2023 This report will focus on the activities funded by EBRD (European Bank of Reconstruction & Development), which has been the main funder of CHED operations during 2023, plus a short report on activities funded by Azersun Holdin8 (Turkish Holding Company, based in Azerbaijan), which is our main partner in the Mektebim program.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) The overall aim of UAFA'S funding from EBRD was to contribute towards a set of long-term outcomes that will strengthen socio-economic development in Azerbaijan, which are an extension of UAFA'S 25 years, experience of working at community level. The long-term outcomes we work towards are: Employment, entrepreneurship and training opportunities of excluded youth and women are increased The public is more accepting of equal opportunity and the role of women as agents of 50cio-economic development Source of non-grant revenue is designed to create long-term sustainability of UAFA'S programs The following report will focus on the key deliverables in relation to each of the above outcomes, which continue to remain viable outcomes for Phase 2 {2024-20261. This report will explain how the progress during Phase l is laying the foundation for Phase 2 actions. In the 5hort-term, during a timeframe of one year, the following short-term objectives were the main focus of activities: Build an online training platform that provides opportunities for mentoring, continuous learning and networking Develop and deliver an awareness campaign on equal opportunities and women as agents of social economic development Source of Non-grant revenue is designed to create long-term sustainability of UAFA'S programs Online training platform that provides Opportunities for mentoring, continuous learning and networking The Learning Management System ILMSI is constructed in alignment with the purposes for providing online training, mentoring, networking and data management. By end of 2023, we had a fully-designed database to manage information related to Mektebim owners and CHED training participants. In 2024, this will be incorporated into an online training platform, utilizing the UAFA website as the front-face of our programs During 2023, we achieved the following results: Series of 22 training videos to accompany the CHED Foundation Course During July and August 2023, the videos were professionally filmed and edited with additional funds received from the Chinese Embassy in Azerbaijan 15000EUR for filming, 2300EUR trainer costs; 4500EUR translation costs). This training course is designed so that the training participants can take the classes in their own time, with the exception of Live classes, which are held each week with input from the CHED trainers in order to review learning objectives and answer questions; it take5 approximately 48 hours to complete, and typically runs across 3 months. Pedagogical Program All Mektebim teachers receive an initial training {12.5 hours) in Step-by-step pedagogical methodology and then receive the written weekly program and weekly mentoring lonlinel, to help them implement and develop their expertise through professional guidance from UAFA'S team of experts.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) This program has been developed with one UAFA staff member and two experts in the Step-by-step methodology. During Phase I, UAFA developed strong working partnerships with the following entities: State Employment Agency (SEA) Already outlined above, UAFA works with the Unemployment Program within this State Agency to provide start-up assets for new Mektebim owners. This is an on-going partnership. State Agencyfor Small & Medium Enterprises (KOBIA) During Phase I, KOBIA has allocated their trainers to provide Business trainings to help Cohort I to develop basic business plans and objectives and guidance on how to register their business for tax purposes. These trainings take approximately 10 hours to complete. As we move into Phase 2, we plan to amend this training so it can be provided through the LMS and tailored specifically for educational businesses. Note: the KOBIA Chairman regularly mentions Mektebim as a good example of women-led business development in his keynote speeches at conference. Azersun Holding Company/Shokki Mokki brand partnership Azersun is a truly committed partner and have allocated huge marketing budgets towards this aim, through partnering with their top-selling chocolate spread product for young children. Azersun also provides operational budget support of approximately 5500EUR per month, which is allocated to program staff salaries and administrative cost5. Thi5 partnership is already in its second year and will continue in 2024. These partnerships have been instrumental in helping UAFA to build the program, alongside EBRD input. We also benefit from many unofficial partnerships, donations, in-kind support and expertise as awareness of the importance of this program for Azerbaijan's future grows. Outcome: The public 15 more accepting of equal opportunity and the role of women as agents of socio- economic development Due to the limited fund5 available in the EBRD grant, these funds were allocated for social media planning expense. One Social Media expert provided support in building written communication plans and supported the development of the Brand Strategy and Communications Strategy. In order to reach a wide audience with professionally designed and developed campaign material, UAFA built partnerships with USAIDICIPE and Azersun/Shokki Mokki, as mentioned above. These partnerships and the deliverables have been guided by the two Strategies, developed by the Consultant, Gafar Mejidov and the Social Media expert. Campaign material- written, visual and audio I set of video clips portraying women entrepreneurs as role models Ulviya Mikailova, ECD expert and Dean of Education at ADA University htt www. outube.com watch?v= f-WSROIAkQ Nigar Alibeyli, ECD expert and director of the "Istedat" Public Union htt www. outube.com watch?v=620J OA tns
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) Dr. Angela Romney, Director of the International School of Azerbaijan (TISA) htt www. outube.com watch?v-LRAUVoeEv2w To highlight the role of the women who are opening their Mektebim businesses, Sabina AllahGuliyeva Imektebim Kurdakhanil has appeared two times on Khazar TV show that has been broadcast weekly since September 2022.. htt www.facebook.com mektebimaz videos 250390110687123 The following media clips have been professionally filmed by Azersun and widely shared on social media plafforms of Shokki Mokki, UAFA and Mektebim: Brand building - About education at Mektebim- htt www.facebook.com mektebimaz videos htt www.facebook.com mektebimaz videos htt www.facebook.com mektebimaz videos 2613189878856724 846496910203533 292426729825298 One TV series produced for mainstream channel Six local and foreign specialists and three Mektebim entrepreneurs participated in the Happy Mornings program on Khazar TV, which were broadcast every Sunday morning from September till June. They discussed 33 different topics in the field of child development. The speeches of our entrepreneurs on the Happy Mornings program played a big role in their empowerment and greater recognition. At least 10 workshops with general public To deliver on this activity, it was decided between Azersun and UAFA to hold a series of roadshows in the vicinity of the Mektebim groups, in order to attract local community attention. The roadshows include speeches about Mektebim, given by each owner and one of the UAFA program team. 8 roadshows were held in June, before the summer heat began. 2 more roadshow events are planned, starting from 02 September 2023, and each one will be featured one of the most prominent social bloggers in Azerbaijan who has more than 500,000 followers across Instagram, facebook, tiktok and telegram, and a total audience reach of over 2 million people. The purpose of this collaboration is to strengthen brand awareness amongst parents of pre-school aged children. Additionally, in-per50n P051tive Parenting workshops {which last 3 hours) have been designed and tested with employees from Azersun and BP Azerbaijan in May/June this year. Approximately 40 parents from these companies participated and all evaluated these workshop5 as highly useful in their own parenting journeys. These workshops will contin ue as another social enterprise initiative, with the clients being corporate entities which invest in their employees. The aim is to generate income to support UAFA'S long-term sustainability, as well as to raise awareness of positive parenting Styles. Outcome- Source of Non-grant revenue is designed to create long-term sustainability of UAFA'S programs
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) Consultancy package of materials Time allocated: Twice per week, 8 times/ month, 3-hour face-to face consulting, training and mentorship session5 for 11 months Individual I hour meetings with each team member every month Work on the organizational structure, policy and procedures, contracts, knowledge management, reports. assessments, and data collection for an average of 4 hours per week. Regional visits for monitoring and asse55ment purposes In October 2023, the consultant and program team prepared the following schedule of activities for growth: Development of policy and procedures, code of conduct and guidelines {completel Development of products Pedagogical Program for owners to guide them in daily activitie5 covering every step of learning that is adjusted to the national curricula (completel Methodological Guide based on the Step-by-step methodology tailored to Azerbaijani owners 12024) Business Guide for new owners {2024} Development of Services Trainings in entrepreneurship set up and development {completel Trainings in pedagogical approach to child development (complete) Early childhood development and developmental delay and Inclusivity (completel Mentorship in business development and pedagogical approach (partially complete) Support with the obtainment of assets, including fundraising and partnerships {partially completel Marketing and community liaison {partially complete) Development of Policy and Procedures, esp. Financial policy, internal and external communications policy, and chapters for the policy and procedures and the code of conduct (partially complete) Organizational Management/lmplementation Structure, including development of roles and responsibilities, subordination, scope of work, key performance indicators, etc. (partially complete) Development of monitoring mechanism of the ownerfs performances {2024} During 2023. UAFA was selected by the UNDP social enterprise development project as a key actor in thi5 domain and, as well as inviting the program team to join workshops and make presentations, they invited UAFA to apply for a Social Enterprise Incubator project that will culminate in 2024. The teams basic business plan pa55ed the selection process and the team is now engaged in the accelerator activities with a view to getting a small grant from UNDP to invest in our products for income generation. FINAL OUTCOME for EBRD PHASE I ACTIVITIES: By September 2023, we had 24 active members who have been running their Mektebim businesses for l year, and 20 new recruits, about to begin the onboarding process.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) Conclusion: As we look ahead to 2024, our objectives remain consistent and will build on the successful outputs of 2023. We give huge thanks for all the 5UPPOrt that keeps UAFA active and aligned with our cause: European Bank of Reconstruction & Development Azersun Holding5 UNICEF Chinese Embassy Government of Azerbaijan And the many individuals who continue to provide financial, in-kind and moral support that sustains the team to keep their focus on the real needs: those of underprivileged children in Azerbaijan. Financial Review For the year ended 31 December 2023, the results show a deficit of £9,883 {2022- £15,813) and total reserves of £15,691 (2022- E25,5741. Reserves Policv It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to 6 months, committed expenditure. The trustees consider that working with reserves at this level would ensure that, in the event of a significant drop in funding, they will be able to continue the charity'5 current activities while consideration is given to ways in which additional funds may be raised. However, it is also recognised that due to the fluctuating financial income of the charity, this level may not always be possible and costs would be lowered in cases of a prolonged drop in funding. Trustees, Responsibility Statement The Trustee5 are responsible for preparing the Trustees, Report and financial statements in accordance with applicable law and UK Accounting Standards. The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Standards and applicable lawl.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued) In preparing these financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities SORP; Make judgements and accounting estimates that are reasonable and prudent; State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare the financial statements on the going concern ba515 unless it 15 inappropriate to presume that the charitable company will continue to operate. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statement comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the Trustees and signed on their behalf by: Dr Amanda Hopper Trustee and Chair Date: 21J CLtbo/ 2024
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UNITED AID FOR AZERBAIJAN FOR THE YEAR ENDED 31 DECEMBER 2023 I report to the charity trustees on my examination of the account5 of the Charity for the year ended 31 December 2023. Responsibilities and basis of report As the charitl5 trustees, you are responsible for the preparation of the accounts in accordance with the requirement5 of the Charities Act 2011 {'the Act,). I report in respect of my examination of your Charity'5 accounts as carried out under section 145 of the Act. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{51 (bl of the Act. Independent examiner's statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities {Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fairview, which is not a matter considered a part of an independent examination. I have no concern5 and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Jason Foxwell FCCA FCIE independent-examiner.net 39 Enfield Road, Poole, BH15 3U Date: 23 October 2024
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 STATEMENT OF FINANCIAL AcfiviTIES FOR THE YEAR ENDED 31 DECEMBER 2023 Notes Unrestricted Funds Restricted Funds Total Funds 2023 Total Funds 2022 Income from: Voluntary income Charitable activities 17,131 114,810 133,607 133,607 Total income 133,607 133.607 131,941 Expenditure on: Charitable activities 143,490 143,490 147,754 Total expenditure 143,490 143,490 147,754 Transfers between fund5 Net movement in funds (9,883) (9,883} 115,813) Reconciliation of funds: Total funds brought forward 25,574 25,574 41,387 Total funds carried fonmard 15,691 15,691 25,574 All of the charity's activities derive from continuing operations. The notes on pages 13 to 15 form an integral part of these accounts.
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Current A55ets Cash at bank 15,691 15,691 42.874 42,874 Creditors: amounts falling due within one year 117,300) Net current assets 15,691 25,574 Total assets less current liabilities 15,691 25,574 NEf ASSETS 15,691 25,574 The funds of the charlty: Restricted funds Unrestricted income funds 15,691 25,574 15,691 25.574 The accounts were approved by the trustees, authorised for issue and signed on their behalf by- Dr Amanda Hopper Trustee and Chair Date: The notes on pages 13 to 15 form an integral part of these accounts,
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 I. ACCOUNTING POLICIES 1.1. Basis of preparation of the account5 The financial statements have been prepared in accordance with Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) {effective l January 20151- (Charities SORP IFRS 10211, and the Companie5 Act 2006. UAFA meets the definition of a public benefit entlty under FRS 102. A55ets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 1.2. Going Concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. 1.3. Income Income is included in the Statement of Financial Activities when the charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. 1.4. Expenditu Expenditure is charged to the Statement of Financial Activities on an accruals basis as a liability is incurred. 1.5. Tangible fixed assets and depreciation Individual tangible fixed assets C05ting£5CHJ or more are stated at C05t less depreciation. Depreciation on tangible fixed assets is provided at rates calculated to write off the cost orvaluation of those a5set5, less their estimated residual value, over their expected useful lives on the following bases: Computer and office equipment 33.33Yo Straight line 13 | Pa
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) I. ACCOUNTING POUCIES (continued) Foreign exchange Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. Fund accounting Restricted funds are funds which are to be used in accordance with Specific restrictions imposed by donors or which have been raised by the charity for particular purp05e5. The costs of raising and administering such fund5 are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts. 2. STAFF COSTS Staff costs were as follows: 2023 2022 Wages and salaries Social securitv Costs 63,952 11,189 69,759 9,225 £75,141 £78,984 None of the employees received remuneration in excess of £60,00012022- nill. 3. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Other creditors Income received in advance 17,300 £nil £17,300
UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2023 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) 4. ANALYSIS OF NEf ASSEfs BETWEEN FUNDS Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Current assets Creditors due within one year 15,691 15,691 42,874 (17,3CI3) £15,691 £15,691 £25,574