Charity number: 1068313 UNITED AID FOR AZERBAIJAN TRUSTEES, ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 UNITED AID FOR AZERBAIJAN CONTENTS Pages Reference and administrative details Trustees, annual report Independent examinerfs report Statement of financial artivities Balance sheet Notes to the financial statements 10-12 UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 REFERENCE AND ADMINISTRATIVE DEfAILS Trustees Amanda Hopper Rachel Harrison Registered Charity Number 1068313 Principal Office 30 St Marfs 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 2021 TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their annual report together with the financial statements of the charity for the year ended 31 December 2021. The financial statements comply with the Charities Act 2011, the Memorandum and Articles of Association, and Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportingstandard applicable in the UK and Republic of Ireland IFRS 102). Structure The Trust wa5 formed on 16 January 1998 by a declaration of trust. The trustees who senied during the year were: Amanda Hopper Rachel Harrison Arthur John Loftus Patterson There were no changes in the make-up of the Board this year. 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 expertise. 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 sep4ices. 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 its members and roles. Induction and Training of Board Members New Board members are provided with background materials on the activities 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 and 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 set5 Strategic dirertion 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 2021 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 (Continued) Responsible to the Board is the Chief Executive Officer, Ms Gwendolyn Burchell MBE. who is invited to attend and report to Board meetings. Ms. Gwendolyn Burchell manages all operational matters, including management of other staff. and may also recommend policy to 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 signatures. 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 SyStem5 are in place to mitigate exposure to the major risks. There is a register of risks and contingency plans for significant disasters. UAFA consistently maintains its direction with regard5 to it5 mission and objectives in Azerbaijan, working towards a child welfare system that emphasises family care, inclusion and education for all. 2024 Summary The year 2024 was a year of both challenges and resilience for UAFA. Due to ongoing restrictions around grant registration for NGOS registered overseas. UAFA faced significant difficulties in accessing funds. This led to a decrease in overall activity compared to previous years. Despite these hurdles, the organization remained committed to its mission and achieved progress in key strategic areas Detailed Report on Artlvlties - 2024 Key Program Areas l. Mektebim Program Development The Mektebim program continued to evolve as a cornerstone of UAFA'S approach to empowering communities through education and entrepreneurship. The main priorities for the year included: Strengthening recruitment of women with entrepreneurial capacity: UAFA worked to identify and engage women leaders who could benefit from and contribute to the program. Finalizing pedagogical program and guldance: Significant work was undertaken to complete the curriculum and teaching resources, ensuring that the program is both practical and scalable, Reviewing the business model to reflect social franchising= To promote sustainability and replication, UAFA revised the business framework. incorporating social franchising principles to allow wider outreach. Team development: UAFA shifted away from employing people with project management experience in the NGO sector to employing people with appropriate business experience from the private sector, to reflect the organisational shift that UAFA is making towards sustainable social enterprise. UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 (Continued) 2. Learning Management System {LMS} Development UAFA made important progress in digitization and c3pacity-building through the LMS initiative: UNDP grant awarded: A small but meaningful grant was secured from UNDP. providing critical support for the development of the LMS. Online platform development: The foundation of the LMS platform was Successfully built, creating a digital space for training, resources. and collaboration. Future steps. The next phase will focus on content enrichment, user testing, and integrating accessibility features to ensure inclusivity. 3'.icYa' Lhalien.gas The restrictions on funding access significantly affected operational capacity in 2024. While some planned activities had to be postponed, UAFA used this time strategically to refine internal systems, strengthen partnerships, and prepare for 8reater impact once funding channels are stabilized. Al￿ ieveroien LS Deipite Ctr,a Iler,ges Maintained core expertise in Earty Childhood alongside boosting Capacity to manage social business development effectivelv. Continued organizational functions despite reduced financial flows. Advanced two strategic initiatives Imektebim and LMSI that will have long-term social impact. Strengthened relationships with funding partners, committing to aligned objectives for 2025. Laid the groundwork for sustainable growth through social franchising and digital learning. Created and led 5 panel discussions during COP29 on the key issues related to Early Childhood Development, Women's Empowerment and Social Enterprise. Look.'iig A,4ead: Priorities for 202S UAFA is entering 2025 with renewed detemiination. Key priorities for the coming year include: Finding sustainable solutions to grant registration barriers affecting NGOS. Scaling the Mektebim program through expanding the social franchising model. Launching the LMS plarform with content and training modules. Continuing to build strategic partnerships to diversify fvnding and ensure sustainability. Review and redesign UAFA'S website to communicate our organisational development. AcKn,owledgementi UAFA extends sincere gratitude to its partners, donors, and dedicated team members who stood by the or8anization during a difficult year. The progress made in 2024 15 a testament to the resilience of our community and the enduring value of our mission. UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 (Contlnued) Flnandal Revlew For the year ended 31 December 2024. the results show a deficit of £44.525 (2023 49,883) and total reserves of negative £28,83412024- £15,691). Reserves Pollcy (Revlsed 20241 It is the policy of the charity that unfestrlcted funds which have not been designated for a specific use should be maintained at a level equivalent to approximately six months committed expenditure. The trustees consider that maintaining reserves at this level provides a prudent safeguard, ensuring that the charity can continue its key activities in the event of a temporary or unforeseen reduction in income, while appropriate plans are implemented to restore financial stsbilty. During the 2024 financial year, the charity experienced unexpected external funding disruption arising from bureaucratic delays outside the organisation'5 control. This temporary shock has resulted in a negative financial position at year-end. In response. the Trustees have accelerated the organisation's transition towards developing and expanding social enterprise activities. This strategic shrft aims to strengthen financial resilience, diversify income sources, and reduce reliance on grant funding in the medium to long term. The Trustees acknowledge that, during this period of transition, the level of reserves may temporarily fall below the tsrget threshold. However, a clear recovery plan is in place to rebuild reserves progressively as the new income streams from social enterprise activities are established. The Trustees regularly review the reserves posltion and are confident that the charlty remalns a going concern. with appropriate measures in place to ensure sustainability and alignment with its ¢haritsble objertives. Truste￿ Responslblllty Statement The Trustees 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 ststements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 (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 basis unless it is 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: 07.10.2025 UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UNITED AID FOR AZERBAIJAN FOR THE YEAR ENDED 31 DECEMBER 2024 I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2024. Responsibilities and ba515 of report As the charit¢5 trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 {'the Act.). I report in respect of my examination of your Charity's account5 a5 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{5} (b} of the Act. Independent examlnerfs 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 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 2038 other than any requirement that the accounts give a 'true and fair view, which is not a matter considered a part of an independent examination. I have no concerns 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, 8HIS 3U Date.. 18 October 2025 UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 STATEMENT OF FINANCIAL AcfiviTIES 'FOR THE YEAR ENDED 31 DECEMBER 2024 Notes Unrestricted Funds Restricted Funds Total Funds 2024 Total Funds 2023 Income from: Voluntary income Charitable activities 37.043 37,043 133,607 Total income 37,043 37,043 133,607 Expenditure on: Charitable activities 78,056 78,056 143,490 Totsl expenditure 78,056 78,056 143,490 Transfers between funds Net movement in funds (41,013) (41,013) 19,883) Reconclllatlon of funds: Total funds brought forward 15,691 15,691 25,574 Total funds carried forward (25,322) 125,322) 15,691 All of the charity'5 activitie5 derive from continuing operations. The notes on pages 10 to 12 form an integral part of these accounts. J J UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 BALANCE SHEEf AS AT 31 DECEMBER 2024 2024 2023 Notes Non Current Assets Current Assets Cash at bank Petty cash Receivables 777 385 27.723 28,884 15,691 15,691 Creditors.. amounts falling due within one year (54,206) Net current assets (25,322) 15,691 Total assets less current liabilities (25,322) 15,691 Credltors: amounts falling due in more than one year NET ASSETS 125,322) 15,691 The funds of the charity: Restricted funds Unrestricted income funds 25,322 15,691 25.322 15,691 The accounts were approved by the trustees, authorised for issue and signed on their behalf by: Dr Amanda Hopper Trustee and Chair Date: 18.10.2025 The notes on pages 10 to 12 form an tntegral part of these accounts. UNITED AID FOR AZERBAIJAN YEAR ENDED 310ECEMBER 2021 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued) I. ACCOUNTING POUCIES (continued) Foreign exchange Transactions in foreign currencies are recorded at the rate of exchange at the date of 31 December 2024. Monetary a55et5 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 purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the account5. 2. STAFF COSTS Staff costs were as follows: 2024 2023 Wages and salaries Social security costs 57,745 9,319 63.952 11,189 £67,064 £75,141 None of the employees received remuneration in excess of £60,000 {2023- nill. 3. CREDITORS 2024 2023 Payroll taxes Wages Supplier Directorfs loan 10.503 16,409 1,420 25.874 £54,206 £nil li I UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued) 4. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unre5trirted funds 2024 Restrirted funds 2024 Total funds 2024 Total funds 2023 Current assets Creditors due within one year 28,884 (54,2061 28,884 154,206) 15,691 {£25.322) (-£25.322) £15,691 121 UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2021 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POLICIES 1.1. Basis of preparation of the accounts 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 1021 (effective l January 20151- (Charities SORP IFRS 102)), and the Companies Act 2006. UAFA meets the definition of a public benefit entity under FRS 102. Assets 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. Expenditure 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 costing £500 or more are stated at cost less depreciation. Depreciation on tangible fixed assets is provided at rates calculated to write off the cost orvaluation of those assets, less their estimated residual value. over their expected useful lives on the following bases: Computer and office equipment 33.33% straight line io I **UNITED AID FOR AZERBAIJAN YEAR ENDED 31 DECEMBER 2024** ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF UNITED AID FOR AZERBAIJAN FOR THE YEAR ENDED 31 DECEMBER 2024** I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2024. ## **Responsibilities and basis of report** As the charity’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of your Charity’s 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(5) (b) 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: 1. 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 fair view’ which is not a matter considered a part of an independent examination. I have no concerns 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 12 Hillbourne Road, Poole, BH17 7JB 30 October 2025 7 | P a g e