Aga Khan Foundation (United Kingdom) Report of Council and Financial Statements 31 December 2020 Re8lStered Number 01100897 Registered Charity Number 266518 Ay Kh*n Fotslldatiou {United KiDgdoml 31 Deeember 2020 Regi51ered Number. 01100897 Re8iStcred Ch￿lty Nurub¢r. 266518 Contents Report ofthe Ci)uncil Statement of the Council's responsibilities in respectof the Report of the CoLm¢il and Str*gtc Report and the financial statcmcnts Inde￿ndent Auditovs Report to the Members of A8a Khan Foundation Wnited Kingdom) Statement of Financial Activities, including Income and ExpendiDMe Account Balance Sheet 10 14 15 CLsh Flow Statrment 16 Notes 17 Ay Fotstyd*tltsn IUDitcd Kingdom) 31 Dccember 2020 R4isrer¢d Number. 01100897 Re&istettd ChaTity Number. 266518 Report of the Council The members of the Council, WIK) are al￿ directors for Compani¥ Act puryw present their annual rcFQrt and the oudited fjnaneial statements ofthe AgaKhan Foundats"on (United Kingdom) {hereinafttr"charitable company" or-AKF IUKI.) fortheyearended 31 December2020. The Council hasttdop￿ thepro￿$7onsofthc StatcmentofRecommended Praaice (SOR￿)"AccOuntJng & Reponing by Charities" in preparing the annual retwt and financial statements. Reference and sdmiDlStrative iDformation Mentbers of the Council The metnbus of the Council during the year to 31 Dec￿nber 2020 were: His High￿￿$ the A8a Khan Prin¢e Amyn Mohomed Aga Khon Prince Rahim Aga Khan PTince5s Zahra Aga Khan Alan Abc12 Jane Piacentini-moore National Committee The Council are supported by a National coo￿ltte4 whose members Iwho are not dirt¢tors) at 31 December 2020. were: Mahmood H. Ahmed Abyd Kamiali Salimah Currimbhoy Naushad Jivrai Faaiza Lalji Dr. Gurdofarid Mi5kinzoda MuniraNathoo Dr. Nacim Pak-shirnz Shainila Pr*JhAn Chaimlan Vice Chaimian Secretary Habib Motani Chief Executive oirtcer Dr. Matthew Reed Senior Manggement The rnembers of Senior Managementat 31 December 2020. werv. J&%rnin Jahanshahi Christina Jorgensen Gradleigh Ruderham Christopher Wilton-strer Registered 0￿]ee 3 Cromwell Garden4 London SW7 2HB Registered auditor Crowe UK LLP 55 Ludgate Hill. London EC4M 7JW Bankers Lloyds Bank plc 39 Threadneedle stre￿ L)ndon EC2R 8AU AEa Khan FoundJ¢￿￿ IUnil¢d K￿gdomI 31 Decemi*i 2020 RegI￿red Number.. 01100897 ReBi¢ered Ch4rity Numb¢r.' 266518 Report of the Council fcontin Struclur4 governance And man￿ement Governing dotument AgaKhan Foundation (United Kingdotn) is a company litllitcd by guarantee and havin8 share capit￿, incoTrorated on 9 March 1973. and regISte￿d as a charity. itl England and Wales on 4 Dec￿nber 1973. The objects and Fow¢rs of AKF (UK) were established tn its Memordndum of Association and are governed by its Articles of Ass￿13t10n. AppoiDtment The members of the Coun¢il who held offic¢ durithg th¢ fJnan¢iai year and 0¢ the d* of this rewrtare set out on page l. As set out in the Arricles of Associ81ioT4 the members of the Council (other thon His Hi8hness the Aga Khan) are appointed by the holderfs) of asimple tnajority ofthe 15s￿d shares in the capitsi of AKF (UK). The Council art surrfK)rted by the Nati[￿1 Committce for oovernancc and 5ur*r¥i5ion of AKF (UKI. The National Committee is aprA)inted by the Council. The names ofthe members of thtN*ional Committee 8Je sei ouion page l. lllductton and trninlng New members of the Council review ThTitten materials and undetgo an ttrfomial OTientstion to brief them on their legal obligations under chtrity and company law. the Conteirt of the McmordThdurn and Articlcs of As￿lation, tht decision mskiTh8 processe& the objectiv&% #nd str*e8ie& and the recent fuwjcial ￿rforrnance of AKF IUKI. The current Members of the Council have acquired in-depth knowled8e of the work of AKF (UK) and the Aga Kh8 DevelopmentNetwork (hereinafter"AKDW}as awholL The atmuai international AgaKJwi Foundaiion budgetmeeting involves the produeiion of comprehensive 1nforn)auo￿ in¢luthng a EYogre5s rep)rton ail significant a¢tivitie4 an update on p￿forMance againsr onnuat budgets ond an upJ*e on the pmgrammes. Additional itlfotrnation is subtnitted to the Council regularly th]Dughou¢ the year, ￿ ensure they art kept abream of key dcvclopments. Additional meetin8s on specifjc topics of Concern to the Council are scheduled on an as-needed basis. This proces5 ensure5 that thc Council are kept abre&t of the on-goÉng activities of AKF IUK) and h&% a stron8 understanding of the relationships and transactlons with related parties of AKF (UK) within the AKDN. In view of thi8 no additional o￿Oing tsining ftsr the members of the Cowi¢il is needed. TheNationaJ C¢)mmittee w&sre-apFointedon I September2020. When n¢wNational Commiuttmembos are ap￿Inted. a forn￿1 induetion is atTanged. New members a￿ briefed about how AKF IUK) engages tn kts different role& the objectives and eX￿tationS of AKF {UKI and the role of the N*ionai Comtnittc to hclp achkcve those objectives. The National Committtt comprises members from different wa]ks of life and r4￿nts a tnix of skills tncludin8 managemen4 aecountin& legal and eomrnuni¢ation Organisatio The Council, which can have up to seven members. governs AKF (UK). A CThief ExecuDve Officer (CEO) is appointed by the Council to mana8e the day-ttrday operations of AKF {UKI. The C￿¢11 meets annua]ly. with meetingsof its sul committees throughout the year. and Is sllpported by the N￿le￿al Committee. as stated aFN)ve. in the governance and supervision of AKF (UK). Day-t￿ nJru)ing and management of AKF IUK) been deltgated by the CDuncil ￿ the CEO who, in additi￿ to reFK)rting to the CounciL IE1￿5 to the Genern] Manager of the Aga Khan Founthtion in Geneva and the Naiionai Committee. The Nation81 Committe¢ h8s estsblishd a W￿MMIttee to supwt the finance and adminRstrntion of AKF IUK). This SU￿¢0Mmittee meets monthly. The skills and experience of this Finance Committee have helped AKF (UK) in achievin8 its objeaiv¢s. As a tnemberof the AKDN, AKF IUK) draws the experie￿¢ of the wider AKDN ndwtsrk. FSJwever, it h&$ stand- alonc operating wli¢ies and proccdurcs. The CEO and Heads of Departsnents arc considered to bc the %nior management r£rsonnel of AKF (UK). The rcmunerdtion of the CEO is recommcnded to the Council by the General Manager and leadership of the Aga K]Mn Foundation in Geneva and in consultation with theNatKJnal CommitteL This process includes Ixn¢hmarking against the UK charities 8nd developmenl sec￿r, benchmat*ing across AKDN agencies and other intern8tional devdopment chariti¢s worldwid¢ and consid¢ration ofth¢ CEO'S depth of experience in the sthir and role. ARX Khan F%)wJdotion (uni￿ Kingdom} 31 Dccemkr 2020 Reg￿Ted Number. 01100897 Re8i5tered Charity Numbcr.. 266518 Report of the Couneil (coniim*d) llbttrests of members of the Council No member of the Council had, a(2ny time durirtg the year. any intertt￿ in 8ny shares of AKF (UK) which would require disc105ure withitl this reporL ObjettiVL$ 2nd Aelivities Princip*l 8Ctivities AKF (UK) is r¢gisiered as a charity in England and Wa]4 is an affilia* of the intrmational Khan Fourtdatiort. artd is part of the Aga Khan IkveIopMn￿t NetyvoTk. The members of the Council ￿nfir[ll that they have had regard to the Charity Cotnnjission guidantt OTh public benefit when Rviewing and setting AKF IUK)'s aim5 and ¢)bjectives. Its principal actsvities are %)cial deyelopmenl inMitutionai development and sociat activiti¢s. Thes¢ aclivitses promote and provide for the advancement of education, health, njral deve]opmen¢ the environmeot and supp(¥t 10 Civil society. FundrAising AKF (UK)'5 fimdrai5irtg activttLes8rt Substanti￿lY directed ￿ government #8eThcics and inststution5 and notatthe generaj public. WhiJ5t AKF (UK) rtteives Unrestri￿ ineomefrom individuals it d￿nOt ￿tivelY fundraise forthis and as such no spe¢iai mwures are required to protea vu]nu2ble people and ¢xher meAnbers of the public from unreasonable intrusion orbehaviour. AKF (UK)organisesevents to innatiOfLS to AKF IUK). In many years individu8]s enter clwity rt]ns or similar events selecting AKF (UK) their chosen beneficiary. AKF IUK) itself also holds a ¢hariry walk and rnn in 50rne years. AKF (UK) is not registered the Funthaising Regulawr. Any fijndraising activities thar rake pixe are caJried out by AKF (UK) stsffor voluntrexs and no comp]aints wtte rcrcivrd Telatin8to thcm durtng the year. Grant-rn#king policy AKF (UK) s¢cks to promote Sustslr￿ble and equitable s(Kiat development by eneour4in8 itujovative approAches to a rdTh8e of developrnent ch￿lengeS in the fields of edUCatKTr￿ healt￿ rurni developmen4 the environm¢ntand ¢ivil society. and by supporting these approaches through grants to or8ani5ations that share its goals. AKF IUKI does not accept applications for 8fdnts, trAJt instead works collaboTatively with pattrer organiwiorts to develop prop¥)5als for donors dnd then acts as the prime agency in making grants kn the parther OTg8nisatiorts. These Parnler orwdni82ti0Th5 arc primarily agencies of AKDN and OrganisatiL￿ scle￿¢d by those agencie5 in the field b&sed on C(￿lmon values, appro8ch4 goals and objeetives. AKF (UK) works very closely with these grantees in the desiwL implementation and monitTring of project& The aim is to creaie a critical m&$ of focused and innovative activiti4 complemeniing each other within and across sector& irt order to make a signifJ¢•Ji o)¢Jtribu¢ion to SO¢￿ d¢vdopment and improving qU￿lty of life. SotlAI development The prirnary role of AKF (UK) in the areA of social devek)pment 1$ to act an interface between institutional and private donon on the one hand and the rdnge of projects implemented by AKDN agencies on the other hand. It represents the agencies of AKDN to partner governments and tnstitutions Europe, the Middle EasL and Asia. as well as to multilatet21 agencies in those regioths. Pn"thcipal activities are the development of long-tcrm. 5trdtcgic relationshsps With illStiDJtiond doxors. securing resources for projects implemented by AKDN ￿enCIeS, managing and rewrtin8 on 8rants. and other &4sociated liaison betwttn institutional donors implementing agencies. AKF (UK) has esiablish¢d long wm rel*ionships with signifi¢ani pamers such as.. Asian Developmetlt Bank. European Commission IECI, th¢ L%'s Foreiw Ccmnmonweaith & Development Office IFCDOI. Gennan Development Coo&*ration. French ikvelopment C¢y)peratioo the Ntsrwegian GovernmenL Japan lntcmatlon￿ C(x)perdtion Agency. Johnson & Johnson {J&J) ar￿ varK)us other charitiA fwLd*ths and 8overnment agencie5 through MemoT8nda of Understsndin8, 8fdnt contracts, or their equivalenL Ins¢itu¢ion•l development In furtherance of AKF IUK)'s ¢dU￿lOnal ¢haTitsble objectives, AKF IUK) makes high quality educational space and facilities available to the lthstiwie of Ignaili Swdies (IIS) and the AOJ Khan Untversity-In5titute for the Sbjdy of Muslim Civilisations OSMC) at the Ag8 Khan Centre Èn King's Cross IAbndon. the building which houses AKF (UKI'S otTJces. In addition, AKF{UK)& nearby VicioriaHaJl building provides a¢cornmod8tion forhighereducaiiort thdents, many of whom ar¢ attending pro8ramm¢s * IIS or ISMC. ABa Khan Fowjdation (Uoiicd Kwg4Jom) 31 D￿eM￿r 2020 Registrred NumL*r. 01100897 Re8i%t¢r¢d Charity NumtKr.' 266518 Report of the Council (conliwued) Strntegic Report Soelal development aehlevemonts and perftsrnt#ttet AKF (UK) &55esse5 its perfortnatlce and impact in the areaof wiai development primarily throu￿ annual targets for rdisill8 fvnds, as well &s moThitorin8 the spendin8 rates. quaiity of Implementatio￿ and compliance ofthe prO)￿ts it supports. Io athlition, AKF (UK) Sets artnu￿ targds for drv¢iopm¢nt and donorcu]tivation. grdnts managemenl and communications and public 2￿r& These are re￿rt￿ on a quarterly IMSIS to the Aga Khart FOurtdatic￿ Gerteva and to the amir of the Nation￿ Cornmittee. In 2020, AKF (UK) secured 20 grdnts at a tots] of £33.8 milli¢)n lo supprrt AKDN and parn)¢r PTogr4mme5 primarily in Asia and Afrtc& The largest granL for£8.4 Millio￿ was sttured from th¢ European Commission. In addition. AKF {UKI helped other AKDN agencies se(¥re significantgrdnts frt>m EUTOrK￿ donor5 with whom AKF (UK) h&% the primsry relationship. A fither£46.? rnillion obtained forthe5e AKDN agencies from a wide range of parbiers including theEQ the UKTrench, Gern￿l. Norwegian and Swi&s Government instinitions as well as from foundation and ¢orpoTate donors. Of pani¢ular relevance in 2020, AKF IUK) helped the widerAga Khan FOurtda￿n secwe £51 million ftir its pandemic relief elTcrt iii¢ludirbg £363 million in new grants for￿deMIc-re1ated work. Despite the disTUPtion of the pathic on the cJJrnmuntbes that AKF Str￿ 2020 w&5 aycar of si￿lIfiCAntaCt[Vity 8nd achievement A few examples include: In Afgha￿lSun, 23.￿0 girls continued ty re¢¢iveeducation assistsn¢e through the FCtM>supported STAGES prograThrne under thc Girls Education Challenge. Ovu 500 govcrnmcnt schools have been sUp￿rted to dat Eenefiting 210.000 gwls overnil. Over 7.6(￿ tca¢hets have bcen trdincd and the project also engased with community members and parents of the 23.000 girls tt) ensure a suP￿rtive environment for girls to attend school. t￿ring the pandemic, the proj￿1 pivoted 10 suptK)rt these girls by Providing home-leaming materials for ail 23,000 girls. remote training 3nd supwrt to trache￿ distribution of hygiene EYfyJu¢ts and pr￿¢¢￿ve equipment to sclKols and ¢ommwiiiies" additional well&in8 a¢uvities ¢0 supw the large ntsmber who repcyted anxiety or depression while under ]￿kdOWn. One of AKF'S si8llature new intbativ4'Acceler*Èe Prosperi￿ (AP) which is funded by the FJ]rop commissi￿ through AKF (UKA heltd yJpp)rt 47 new enterprises and cr￿e 489 new jcA)s, almost half of which were forwomen. This brings to totai nutnber of new enterprises ¢rta*d ￿ 132. 70 per¢entof the ertterpTises AP SUPP)￿ in Afghanists￿ Kyigyzth, Pakistsn, and TaJiki51an remained profitablc despite pandernic and 95% Valued the assisknce that AP pmided them during thi5 ycarof dÉsruption. Plannin8 for 51gnLficant Cm5S-tM>rdtt infi&thcbJre projccts in Afghani51an and Tajikistan 8dvanced. with detsiled design work completed for a crosS-iN)Tder bridge and addiuonaj ￿er￿1 transmission lines. Constswction was initiated for the energy wmponents amd is exp#￿ ￿ commence on the bridge irt 2021. Ji Students rcceivcd training in clcctriral cnginecrin8 or Infrastr￿ managcmeThtto help thance and mainlain these projccts. AKF (UK) launched a new l(kyear parlnet5hip called sch￿IS2o30 with a co81iuon ofother private foundations ond leadets it) in*marionai early Childhood development and edu¢ation. These included orgatlisationg like thth>ai Cares. Jxobs LEGO. and PC¥t1￿ among others. Schools?030 will identify and 5UPWrt 1000 innovative 5choo15 and communitics from the global wJth that demolL￿ new5trate8ies to improve holistic Iczrning outcomcs for marginalized children and youth. The coalttion will ￿50 generate actionable evidence about'how. schwl actors can improve lifelong education by tracking the learning P¢￿gr￿lon of children and young people in relationship ￿ sch(x)l-based g)lution& Even as it finalised its design phase, the project ￿artrd working with its nety¥ork of10(KJ S¢l￿ots ￿ address the di￿￿oI0n of the PWLdemic. A#a Khan Foundution (Uniia K￿gdOm} 31 Dettmkr 2020 Registered Number 01100897 Re8istcred Charity Numbcr.. 266518 Report of the Council (colltinued) Institutional developmettt i¢hlev¢m¢nts 4ttd p¢rfonllglle¢ In 2020 AKFIUK) made instiwtional developmeni grants totslling £3.Om primarily to the Institute of Ismaili Studies Ills) and the Aga Khan University- AKFIUK) providcd high quality educational Space and facilities to IIS and the Aga Khan University-In5titutr for the Study of Muslim Civili5ations {ISMCI and a150 provided accommodation for higher educarion studenL5, many of whom are atrendiTh8 pmgrammts at IIS or ISMC IIS is a higher education and academic research instimte, esrablished Én 1977 to promote scho18rship 8nd learning alk)ui Muslim ¢ultures and societies. IIS aims to contribute w the academi¢ study of th¢ diversity of Islam as a faith and as a civilisation. by addressing intellecwal and wa¢tical issues both historically and in the present context. US offers two Masters Icvel tau8ht pro8fdmmes. Both P￿gramM¢S of study draw on teachin8 faculty from its rescarch depajtnent &5 well &$ vi5itin8 scholars from Icadin8 national aThd international academic institutions. IIS. graduate programmes, as well as its range of d￿tor81 scholarships and f¢llowship& attract swdents and Sci￿larS f￿M acr05S the world. ISMC wag founded in 2002. as an edu￿101*al and r¢sear¢h unit within the intern￿70￿2] Aga Khart University. ISNfC l5 an Lnter-disciplinary institute, c¥rrying out internationally rewgnised schol￿ShIp. education and outreach irh the humanities and social sciences on Muslim societie5 and culbjres. ISMC promotes scholarship that opens new perspectives on Muslim herita8t, modernity. cUl￿re. rel18i0￿ and society. It offers a M&sters l¢v¢l taught programme irt Muslim Cultsjres. Section 172{1) Stat£￿eTrt The members of the Council are 5atisfJed that all key decisions taken in ?O?O have considered the long4erm impaet of such decisions and the impact on AKF IUKI'S don￿4 implementin8 parther￿ empbyees and the communities that we work in artd wth. AKF (UK) tskes gr￿ to ensure its xtiviiies aff implemenwl in a ¢ollaborauve manner and will deliver impactfijl change in the long-*m. Ststement of engagement wlth suppllers eus¢omers others In * bustness reIatlonshlp wlth the eomp*ny MaiDtainin8 eollaborntive bLLsines5 relationships is a key factsr for AKF (UK) in onkr for us to continue to meet our stra¢eBic goals. This is espeeiaily true when tt comes ￿ our relationships with our 8raTht-8ivin8 &)thors and the implementing paJtrUS with whom we in partnuship. AKF IUKI styives to ensure that all de¢isions taken on our progrgmffles are tsken in ￿1g￿meNt￿th the wishes and regulations ofthose who fund them and tskithg into ttTrnsider*ion the interests of those wl¥) are resp)nS￿l le ftir prograrnme delivery. as we feel this is the most effe¢tive and eificient way of achieving lasting ehange for the communities that we WO￿ with. Streamlined Energy Ind Carbon Reporting In 2020 AKF (UK) used 5.Ik14,851 Kwh of energy, this equated to a carbon footyini of 756 tonnes C(F. This represents a earE<)n intensity ratits of 0.23 tonnes CO: per m . UK energy use covers the provision of electrtcity and heating at the Aga Khan Centrt and Victoria Hall. which are both l¢xated in Kings Cross estate. It also includes el¢¢tricity and 8a$ eonsumption related to the twelve social atKI cultura] centres owned by AKF (UKI. Dats on energy usa8e w&s collected directly from billing infonnation and where available, iofornation collected in kwh was converted et the rate disclosed by the supplier. In the absence of this, emissions were converted ￿ill8 the UK Government's 2020 GHG Conversion Factors. Electricity supplied to ix)th the Aga Khart Certtre and social and Cults￿%1 cenbEs has a significandy rtsluced carbon output relative to the UK average. Approximately 71PA less CO: is produced per kwh through these suppliers. Furthennore. both AKC and VicthriaHall benefit from being part of the Kings Cross estate where the distTiCt heatin8 5y5tem in place is seeing reductions ID C(Tr emissyms of more than 61Y/o against the Uk average. A8a Kh8n Foundation (uni￿ Kfftgdoto) 31 Decexnber 2020 Registered Nutnkr. 01100897 Registered Cb8rity Number 266518 Report of the Council (cowinuedj Financial review Duritlg the year AKF (UK)'s fixed assets intteased by 1% from £179.4m to £180.6m, increased by 440h from £24.8m to £35.7rn and tot21 reserves it￿re￿ by Pkn from £201.3m to £215.4m. In the optnion of the membeJ5 of the Council. adequate Lssets are available to ￿lfil the obligations of AKF (UK}. A SUTnmary of the rrsult of AKF IUK)'s adivities during the peTW)d is given in the Ststementof Fin&Kial Activitieson poge 14. Ineome Durin8 the year. the total incorne InCre￿d by 31% to £59.Om f2019.. decreÉtyed by 72% 10 £44.9thiJ. This was driven princip3Jly by an increase in social development I￿ome bui also du¢ to a £3.7m gift in kind ¢knation of a social and cUlttj￿ centrs. In 2020 the social development incoTne was £37.9m Q019." £26.Om The majority of social developmen¢ income is ficmn grants. which inc4rascd by 35% to £33.8m (2019 iThcrease by 5% ro £25.2m). Agreements wth rnain funders are on-going and undcrpin the succe5sfiEI re50urcc mobilisation strate8y that h enabled AKF IUK) to secure significant leve15 of funding for AKDN projects around the wodd. Masntaining on-going relationships with major donors and estsblishing new tArtnerships 8ff critKai to AKF (UK)'s success atld SUStsinabs1ity. Thes¢ relaitonships should ensure the strength of AKF (UKI'S ino)me for sociaj developmenÉ pwposes against a backdropofcontinuing firwicial austrrity amang donor instiiuttons. The income reco8nised in the Statement of Financi Activitics rcprcscnts the Pro￿rtion of multt-ycar8rants thaE were reeognised Èn 2020accordin8b) the aecounting Jh)licies set out in note I to the accoun￿ ar￿ so does tLOi correspond to the wr21 value of B¢￿ts secured and signed in the year. Expenditure In 2020, iotal expendittw¢ decreased by 22%to £45.Om as aKsuliof decrnsesj expenditureon ￿￿tiDational development actiwties QO19." increa5EdbyJOW. The most signifi¢ant expenditt]Te related to dcvelopmcnt FYogrdmme5 of w]iich £32.7m (2019.. £28.Qm) was disbursed during the year. beneftting projects implemeThted by AKDN institutions around the world. For inkm*ional programmes supported directty through AKF (iIKI in 2020. reg)urces expended Contr￿trd to SI￿[fice￿¢ efforts in educatio￿ early childhood deveJopmenL agriculture and f￿d se￿￿ty. health aAd tlutrition. civil society. enttgy and cuiwre. The lar8¢st programmes wefe implemented in Afghat)istsn, where £12.3m w)jea exFenditure was rnade (2019.. £11.4ml in pertiadar on pmjects fiujded by FCW (note 71. The other ¢*gory of Tesources expended was lnsti¢ution￿ development P￿gramMe5 amountin8 to £10.8rn (2019.. £28.4mJ. This includes funding for ll& exF¢nditure on propertics in King's Cros5, LA)ndon aTrJ fundingforthe Aga Khan University (note 8). The main rea￿ for the decre&%e was that a one-off donation of £l7.Om wa5 made in the prior year to the Aga Khan Foundatio￿ Geneva for varioLES projects fimded from ¢knations re¢eived in cotnmemoration of the Diamond Jubilee of Hi5 Highness, the AgaKhat). The core Costs of managing AKF (UK) and admintswing the resour￿ mobilis8tion and grdnts management fi]nctioThs de¢reased to £2.Om12019: £2.2m). These core Costs are primarily fijnded by the Aga Khan Foundation Geneva. All donation income is applied to AKF (UK)'s charttable obje£iive5. C5pecially to Programme expenditure on socia] development projects and institutiona] devel(4>menL ReservÉs PDliry AKF IUKI requires reserves in order to meet its funding c(xDmittnents in respect of its joint-filnded projects and for the Eurtherdnce of its activilie5. AKF {UKI ha5 established a tMTrlicy whereby the level of its free reserves (being those funds not tied up in flxed &ssets aThd noi part of dcsi8naied funds or restricttd filnds) should be sutTJeient to sustatn tts administrative expenses for at I￿$t two months. AKF (UK) considers that the tsrgei level of hee reserves at 31 December 2020 was £0.4m (20J9.. £0.4mJ and aniicipa¢es that the wget level of free reseNes at 31 December 2021 will be approximately £0.4m. As of 31 December 2020. the total Un￿StrIc*d gelhernl re5uve of £0.4m 120JP.. £0.4m) represented &fual free resttves. AKF (UK) has established a poliey whereby the level of tts designated reserves for projects should be suffjcient to meet cornmitmcnts on an annual b&%L5. At 31 DecembEr 2020. the total balancc of desj8nated fijnds was £201.gm {9019.. £195.5m). In order to maintaÉn the level of such reserves, AKF (UK) undejtskes events ￿ raise awareness of AKF (UK) and thereby seek supp(*L for example through dOn￿lOnS and commitments on a long-tenn b&%is. Design8ted filnds held by AKF (UK) &s part of its chartr2ble activities ftir in￿oJ110fta1 development purposes totalled £180.6m12019: £1762m) of which £162.9m was represented by r￿ed assets. Aga Kbart Foundation Iunitsd K￿SdOmI 31 Dettmkr 2020 Regthr¢dNumb¢r. 01 IiJ0897 Re8iSteted Ch8tity Nutnber. 266518 Report of the Council (eowinued) Designatcd funds hcld by AKF IUK) as part of its charitable activities for socÈal purrA)ses totalled £20.2m (2019: £17.3ml of which £17.7m w&$ represented by fixed awts. Designated funds held by AKF IUK) &$ partof its charitable a¢rivities forsocial development purposes tota]led £l.Om (2019: £2.Om) of which £O.Om was represented by fixed assets. The business model of the charity is such that its charitable a¢tiwties are limtted to those which are primarily fvnded by fjjnds received from extemal donors. Other than cotnmitfftents which are so filnded. the charity therefore has no specific cornmitments and M committed costs beyond its fixed costs of operation which d¢tsiled in note 5 and grants to be paid to partncrs from fvnds already received. The Council have reviewed forecasts covering the period of 12 months frnm the dale of approval of these financtal swements whi¢h indicate that the charity will havc suffickent funds to meet its liabilities as they fatl due for that period. The Council have considered the implications of COV[[￿19 on those forewts and eonsider that &$ a result of the charity'5 operating tnodel explained &i¥)ve. even if no further funding is received in the 12 month5 period, the eh2rity Sufficient cash reserves to pay all committed costs. As a re5uiL the Council ¢onsider li appropriate forthe financi slatements to be prepared on a Boing concem basis. IDveslmetLt poli¢y The Council has the power 10 irivesi irt wch assets as it sees fiL The Couneil are supwrted in the exercise of these power5 by the National Committee. AKF (UKk having ￿gard to its liquidity requirements gnd reserve5 policy, h&5 operated a policy of keeping available funds in interest-bearing de[￿)Sit accounts and seeking to achieve an appropriate r31¢ of deposit inreresi. The Finance Committee review5 the placements on a regular bosis and de¢ides the approptiate placetnent periods on the basis of available funds and their intended u5¢. Future plans In 2021, AKF (UK) has no plans to chanse its operdtiona] focus in atty ofits are4s of charitable activity. AKF (UK) will continue to dcvelop a robust project pip￿line with AKDN a8encÈe5. with emphLsis on AKDN'S siEnifiwJt and 8rowing inttiative5 in civil society, culturq cducation. economic develolxnenl energy, ￿th. livelihoods. tlimate adaptstion and disaster preparedness. A significani effort will be made ￿ address the effects of the COVtD-19 pandemic in AJ amons other potcntial paTtheTS. Despite the departure of the Unitcd Kin8dom from the European Union. AKF (UK) will maintain its relationship5 with the Eurnpean Cornmission, supwJrtin8 parttierships between the EC and otherAKF offjces. In re¢entyear& AKF {UK} has estsblished a diversified fvnding base thr￿Agh rtew partnerships with foundations and corporations, and this work will Continue. AKF (UK) works with fleld units of AKDN to suprA)rt them in securing grdnts directly from Europe8n. Asion and multi-laterdl donor5. AKF (UK) h25strengthened its ￿ndOn-b8Sed team to engage a widerrangeof pamers, represent AKDN in public for4 and suprA)rt the desi8n and preparation of 8rant proposals atld budgets. AKF {UK) coordinates extensively between field units and donor4 requiring exiensive ¢ommuni¢ation and travel to the countrie5 where AKDN is active. AKF IUK) also uses funds raised from private donations to match donor fvnding where there is a match-funding requirement. AKF (UK) corttinues to protnote awareness of the work of AKF IUK) and AKDN through pre5entation4 events and exhibitions. Subject 10 restrÈctions on tnovement in resrA)nse to the COVltk19 pandemic, this work is expected to 8row in the fvture. Aga Kh8n Foundation Iunikd K￿BdOM} 31 Dccernber 2020 RegLSLered Number.. 01100897 Registered Ciwity Number 266518 Report of the Council (cominue Princi￿1 Risks and Uncert8intieJ The Coun¢il, assisted by AKF{UK)'sNotional Committe¢and AKF (UKI'SCEO, assesses the major risks (o which AKF (UK) is exposed on an on-going basis. On a monthly basi5. the Financc Cornmittrc rneets and reviews ongoin8 risks and compliancc is￿. in particular th¢)sc rdatcd to ttsopcrations andfinance. Thcmaiorri5ks towhichAKF (UK) isexrx)sed Reliance on asm￿[ rtutnber ofsitrabl< traditiljnai Ikjnors The potential imFQCt of the globaj economic situation, and s￿urity crises on the availability of development fi￿dIng for ￿gIOnS where AKDN is active Compliance violatiolls or donor guidelines that att &dI￿red to by implementin8 a8en¢i¢s The first and second risks are mitigated b)th by cultivating new dorkor relationship& diversifying opportuniti widening and deepening CUTreni r£lationships. and susratnin8 hi8b levels of trust thrnugh consistent profe&siona] perfornianee. The third risk is mitigated through enhanced communications with and monitoring of implementing partners, independent evaluatK)ns, donor asstssment of programrnes and other key infomi￿10n, strengthening grant agreements and monitoring requirements. AKF Gertev2 employs in¢emai audits to monitor irnplcrncnting partners. whert necessary these ￿$0 monitor grant compliance with dorkorguidclincs and arc shared with AKF {iJK). AKF(UK) is satisfied that apprDpriate systenL% are in place to miti8ate AKF IUK)'5 extx)5ure to major risks. Ststem¢nt on COVID-1g AKF (UK) is complying with public health authority requirements and impl¢m¢nting fimdomenI￿ measures to impede tratssmissiort of COVtt>19. At this time the ￿11 imw of COVtFJ19 on AKF IUK) is Unk￿wTr due to thc uncertain rtaDJre of this crisis and how long il wll18SL The followng is AKF (UK)'s curre4Jt assessment of the situation. AII AKF (UK) employees continue bui are now ￿￿TkIrtg from home Social developtnent activities 8re eontinuing and any deltys in pro8rarnrning are being fully supported by donors. Where p)ssible we are also flexing wogrdmme activitie5 to include activities reia*d to COVtD_19 Whilsi som¢ r￿￿￿10n$ in incom¢ are anli¢ip*rf these are ¢XFtctyJ to be miug8*d by redwtions irt expertdl￿re We are notexpectin8 any Signif￿anIchaThS£S in ourreserve5 levels due to COV￿19 Disclosure of inforniatioll to auditors Ea¢li of the Members of the Council ar the dat¢ of approval of this Reportof the Council at)d Strategic Reportcortfirni thal so far as they are each aware. there is no relevant audit information of ivhich AKF IUKYS auditor is unaware. and the members of the Council have ea¢h taken dl th¢ steps thatthey ought to have tsJ(en as directors to make themselves aware of any relevant audit infornlation and to e5tabli5h that AKF IUK)'s auditor i5 aware of that informarion. Aga KI￿ Fotstthtion (United King(bml 31 D¢¢ember 2020 Re8isI¢Ted Number. 01100897 iieKi*ettd Chartty Nwnbcr. 266518 Report of the Council (eonthmed) Statement of the Council's responsibilities in respect of the Report of the Council and Strategie Report 2nd the financi41 statements The m¢mb¢rs of the Council are resN)nsible fv &￿ParIng the Report of the Council and Strate8ic Report and thc financial ststements in a¢￿[d￿n¢t with applieablt law 8Dd regulations. Company law requires the Cwncil ty prepare financi￿ stst¢n)rnts for each financial year. Under that law thry are rcquired to prepare the financial 5tatem¢nts in a¢¢ord8￿¢ with UK A¢￿￿￿11￿8 Swbdards and applicable law (UK Generally Accepted Accounting Pra¢tice). includingFRS 102 F¥nuK￿lRePQrlInsS1QndGrdCPplIC4bI¢ in ih¢ UK andRepublic ollrelond Under company law the CouncÈl must not ￿prOve the fina￿181 ststernents unless they satisfied thèt thcy give true and fair view of the state of 8ffaiTs of the ¢haritsble company and of the excess of income over expendittwe for that period. Ln PT¢parin8 thes¢ f￿anCiat statements. the Council 8rc required ￿. seleci suiiable accounting wyliC￿e5 then apply them c¢m5ithtly: make j￿￿￿ements and estimates that are Tea9)nabk and pnthr State whether applicable UK Accountin8 sts￿d￿ have been folk)wed. subiert to any nmterial depthjres disclosed amd explwned in the financia] staternents: a55e5s the charitable company's ability w cthminue as agoing ¢LxKem. discb)sin& appliLxbl¢, matters related to 80ing cothcern. and use the going ¢orKun ba5i5 of accounting unle55 they either intend to liquid* the Charithble company or to ee#se opeiati0Th5. or have tLO realistic alternative but to ￿ g). Th¢ Council ar¢ restKJnsible for keepitig P4Jequate accounting re¢ords that are sufficient to show and explain the choritable wmpany's tranSa￿l0￿S And disclose with re￿Onable accurncy at any time the fina￿1&1 positiort of the charitable company and enable them lo e￿￿llre that the f￿ancial ststements comply with the CompaTLies Act 2006. Th¢y are responsiblr for such internal control ttry detennI￿ is necessary to enable the wrpArntion of financial 5tatetnen¢S that arc frec from material misstatemenl whether du¢ ￿ frnud or error, and havr gen￿] re5pon5ibility for taking such 5tep5 25 are re&50nably open lo them ￿ safeguard the assets of the charitable cOrnPa￿ and to prevent and d¢re¢t fraud 2nd oth¢r irregularities. The Council are responsible for the n￿intenanCe and integrity of the and financial inforniaiion included on the Charithble company's website. Legislation in the UK 8overnin8 the prwion and dissemination of financial statements rnay differ from le8i51ation other jUTisdi¢tion& Report ofthe Councti and Straw ReNKt Ipwov￿ by (Kderof th¢ Cr￿￿11 Plac Member ofthe ntlni-Moor• SeplefftbEf 202J Aga Khan Found&ion (Unikd Kingdom) 31 Dccernber 2020 Registered Nutnber 01100897 Regi*ered Charity Nutnber. 266518 Independent auditor's report to the members of the Aga Khan Foundation (IJDited Kingdom) Op5nion We have audited the finan¢ia] 5tstements of A8a Khan Foundation (Uni*d Kingdom) {'the ch￿itable company,) for the year ended 31 December 2020 which comprise the statcfftent of fLnaThciat activities, the balznce sheeLs, the c&%h flow stttemeot and notes ¢0 the finathtial ststemeots. in¢luding significant acwjnting policie5. Tht financial reportin8 framework thai has been applied in their preparation is applicable law and United Kingdom Accounttng Standards. including Fittsncial Rew>rtin8 Standard 102 The Financiaj Retrf)rting StaThdard applicable in the UK and Republi¢ of treland (United Kin8dom Generally Accepted Accounting Pra¢tic¢). In our opinion the fiDancI￿ s¢atemen 8Lve a true and fair view of tht state of the cbaritable company's affairs as at 31 December 2020 and of the incomitlg rcsource5 and applL¢2tion of re50urce4 including its income and expendiwre for the year the have been properly Prepared in acco￿1￿¢¢ with Unttcd Kingdom Gencrally Acctrrted Accountin8 Practice. and: have been prepared in accordan￿ with the requirements of the Company Aet 2( Basi$ for opinion We conducted our audii in a¢¢ordan¢e with Internatiorjal Standards on Auditing(UK) (ISAS IUK)) and applicable law. OUT re5POll5ibilitie5 under th0￿ standards are furthu described in the Auditor's responsibslities for the audii of the financial statements Section of our report. Wc are independent ofthe group in accordance with the ethical requircmcnts that are relevant to our audit of the fitjanciai statements ID the UK in¢luding the FRC'S EthÈcaJ Standard, and we have Ifilled our other ethic&l resp)nsibilities in accordance wtth these requirements. We believe that the audit evidence we hav¢ obtained is sutricient and appropria* io provide a bosis forouropinion. Conclusions relating to going concern In auditing the flnancial ststements, we have concluded thatthecouncil's we of the 80in8concern basis of accounting in die preparation of the financi￿ statements is appropriatr. Based OD the work we have perfomied.wehave not identified 8ny m*ria] unce￿In￿eS rtlattnts toevents orcondiiions thaL individually or wllectively. may cast signifJ¢ant doubt on the group's or charitable company's ability ￿ eontinue as Yi going concern for a ￿rIOd of at least twelve months from when the fLnanciaJ statemellts are authorised fo¥ issue. Our responssbilitiC5 and the rcsrA)nsibiliiic5 of the Council with [tsp￿t to 80in8 concern are described in thc relevant 5eetions of thi5 report. Other infornation The Coun¢il responsible for the other infomiation eontained within the Report of Council. The other inforn)ation comprises the infonnation included in the RerA)rt of Council, other than the fmancia] statements and our auditor's port thtrcon. Our opinion on the financial 5tatemenrs does t￿1 ¢over the other Infomi¥ioo and. except to thc extent othenvise expli¢idy stsied in our repx)o we do exprtts any form of aSSUTance conclusion thereon. Our responsibility is to read tht other infortnation 8t￿. in doing so, consider whethertheother inforniation is materially inconsistent with the fmancial siatements or our knowledge obtained in the a￿lit orotherwise appears to be materially misstated. Ifwc identify such material inconsistenciesoraprfarent material mtsstatements. we ar¢ required ¢0 determine whether this8ives rise to a matertal mik%tatement in the ftnancl￿ stslements themselves. If, based on the work we havc perfonned, we conclude that there is a maierial misstsiement of this other information, we are required to report that facL We have Tlothillg to report ill this regard. 10 A82 Kbkn Foundatioll{Unitrd Kingthrn) 31 DEcernbcr 2020 Re81￿cred Number 01100897 Re8iSt*cd Charity NuEnber. 266518 Independent auditor's report to the members of tbe Aga Khan Foundation (United Kingdom) fcontin4e4) Opinion OD Other mgtter5 prescribed by the Companies Att 21)06 In our opinion based on the work undertaken in the course of our audit.. the inf0m￿tIOn given in the Report of Couneil. which includts the directors. Tel￿ and the strategic report prwed ftjr the puryx)ses of Company law. for the finan¢ia] year for which the finan¢iJ sth*ments are prepared is cottsistent with the financial statements. dnd the 5trate8jc reportand the directors. reNJrtincludedwithin theRtr￿0fthtcouncil have been prerAred in ￿cOrdanCe with ¥pplicable le8ai requirements. Matters on which we gre required to r¢port by eyteption In light of the knowledge and urldetstartding of the charitable company and thcir environment obtsincd in the coursc of the audi( we have not identified materiaj mis#atements inthe strategic retA)rtorthe directors. report includedwithin the Report of Council. We hav¢ nothing to Tepon in f¢spect ofthe following mauers in rejarion ￿ which the Companies Act 2006 requires us to repon to you if. in our opinion- adequate 2nd proper accounting records have not been kepi or retums adequate for our audit have not been received from branches t￿t Visited by us. or the financi￿ stalements are not in agreement with the ac¢ouniing records and reumis. or certain distlosures of tnembers of the Council's remuneration specified by law are not made. or we have not received all the infotmation and explanations we require for our audit. Council's respoDsRbilities As explained more fijlly in their ststement set out oft pa8e 9. the members of the Council (who are also the directors of the charitsble compony for the purp)ses of company l&w} are resportsrble for the preparation of thc financial ststements and for being ￿tiSfied th81 they give 8 true and fair view. and for such internal controls as the Council deterniine are necessary to cnablt the preparation of financial ststements that are frec from material misststemenl whether due to fraud or error. In preparin8 the fmanciaj 5tatemeThts, the members of the Council are resrx)nsible for ¥sessing the charitable company's abiliry to continue as a Eoirtg cortcem, disclosing, as applicable. mattery related to going conccrn al￿ using the goittg concem basis of accounting unless the Council either intends to liquidate the dwity or to ceasc operations, or hive no ￿￿1StiC alternative but to do so. Auditor's respoDsibiIities for the audit Df the fiDanci*I st%tements We have been ap￿)Inted as auditor L￿derthe CompanÈes Act 20¢￿ and rerM)rt in aceordanee with the Acts and relevant regulations made or having effect thereunder. Our objectives are ￿ obtsin reasonable assurance aboui whether the financi￿ ststernents as • wholc arc frcc from matcrial misstaternenL whether due to fraud or error. and to issue an auditor's repjrt that inelLhde5 our opinion. Reasonable &55urHnce is a high level of &ssurance. bui is thot a guarantee that an audi( conducted in accordance wÉth ISAS IUK) will aiwdys detect a rnateriaj misstatement when it exists. Misststements can arise from fraud or erJDi and are ¢onsid¢r¢d mat¢rial if, individuailyor inthe a88(e8￿8.989 44,890 Expenditure Chariiable attiviti¢5 So¢id (kvek)pmettt proBT8mme5 lLMitutiott￿ ¢kvelopmertt Socld and cultural ¢cntr¢s 1280 1.734 5.275 9.026 lJ39 26.109 32 10,760 lJ79 23S 27,315 29292 669 246 235 Total txpt#dlt¥re Nei 8ainlllossl fmm foreigrt exelwige 3.289 15.640 21109 4S038 57,522 91 91 1347) Nei Ineome l{¢xp¢rydit•r¢l for the year Transfers bet￿ryell funds (241 6J36 7.730 14,fr42 {11979) Nei txpethdliure befon other re¢o8#lstd gAins And loues Net gainlllossl fmm inve*menLS 124) 336 7.730 IW2 (11979) io N¢¢ movement ID tIiDds 124) 6J36 7.730 14042 112.9791 Rttolltilia¢ioD Funds brvught fornrd las wrviou5ty a8lrd) Prior Period Adjusthienl Fut￿% brough fonvard {A5 rtAated) 385 195,499 481 4,946 5,427 196,365 4,946 201,311 213.c￿) 1.288 214.290 24 385 195,499 Tol41 funds ¢arritd forward J9 2Ql.835 13.157 215Ji3 101.ill All of the above results are derived from continuing acuvities. All gains and lo%ses reco8nised in the year are included in the above. The notes on pages 17 to 32 forn part of these financiat statements. 14 Aga Kh￿ FO￿d•￿￿ (United Kingdom) 31 DEcembEr 202 RegiAered Numb¢T'. 01100897 Regi￿￿ed Charity Nuth￿. 266518 BalaDce Sheet ai 31 Dec¢m￿r 2020 2•2• 2019 £0 Flxed ￿ets Tkngible LsseL8 Inveslmcnts 154.925 24.511) 18•J94 179.425 Cnrremt *sstts ikbtors Cash * bank in harkl 934 JS741 899 24,790 17 36h74 25.689 Creditors: &IIIB£ due w4thi• o•¢ y¢•T (iJ15) {3.803) Nel cllrrent is5c1s 31,759 21386 Totsl Ass¢ts ksy euvrewt llibilifi 215JS3 201JII cTEd1￿.. knMj￿ts falli￿ thje 8fter one ye 215J53 201.311 Share egplt%l reservts Called up shsre copitlli 20 Fund¥: Unrestrir*d fi￿d9 GEhtTrJ fullds Lk518n4*d fimd5 R¢stritied Fullds 19 19 19 361 201J35 13.157 385 195,499 5,427 215J53 201JII The flnancial on pw$ 14 to 32 ￿re apwoved by the Coullcil 80d for t$￿ >Xa sign¢d OD its b¢hHlf by: weTe Jane Plac ntini-moore Member Council 15 Aga Khan Fow)d￿lOn (Uni¢ed Kingdom) 31 December2020 Registered Number.. 01 l(K)897 Re8i*ertd Chatity Number. 266518 Cash Flow Statement for rheyearended3J December 2020 N￿e$ 2020 2019 £000 N¢t t￿kn iDflow l{oufflowl from optr•iiDg •ctiviii¢s io 18233) Clqh nows frnm IxvestlD£ #ttfvlties Inlerest rettived Payments w acquire flxed assets {6861 14911 Incr0￿cl￿dEcreLSè1 ID #od cth equivaIents 17 iOJ50 (8.5531 Netca5h at l January 17 24.7A) 33J43 Net cish xt 31 Dectmber J7 J5.740 24,790 The notes on pages 17 ￿ 32 fonn part of these financial sthtements. 16 Aga KI￿￿ Foundation (Unifrd KinBdonJl 31 Decernber2020 Re8i5t¢r¢d Nutnber. 01]￿)897 Registered Charity Ntsmber. 266518 Notes (forn¥ingpart Ofihefim￿1oI$￿e￿￿rf$) PrlncApal Aeeouniillg polleles AKF(UK) is a charitsble comparty limitrd by gu8ranK company registration no 01100897. regtstered addre￿ 3 Cromwell Garden¥ London SW7 2HB. The following accounting policies have been applied consistently in dealin8 wtth items which are considered m*erial relation to AKF (UK)'s fuwciai statements. B*$is of prepamtion The eharitable company is eonsidered to be a public benefit enttty. The ststements have been prepared under the historical cosi convention and in attordance wth the Statrment of Recomtncnded Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (SORP), the Companies Act 2006 and applicable Accounting Standards, FRS 102. The members of the Council have prepared the financial statements on a goÈng concern basis with no material uncertainties, which they cortsider is appropriate for the followtng reasons. The business model of the tharity is such that its charitable activities are limited to those which are primarily funded by fvnds reeeived from external donoTS. Other than commitments whieh are 50 fundcd. the charity therefore ha5 no specifie commitments a￿j no committed COSL% IKyond its fixed costs of operation which are detsiled in note 5 and grdnts to be p￿d to partner5 from filnds already receive¢L The Council have reviewed for¢c2sts cov¢rin8 the period of 12 months from the d*e of appmvai of these financiai g*em¢nts which indicate that th¢ ¢hariry will have sufficient funds to mcet its liabilities as they fail due ftjr tha( peTiOd. The Council have Considered the implications of COVtL>19 on those forccasts and consider that a5 a rc5uIt of the charity'5 opcfdÉing model explaincd aE¥Jve. even if no fi]rther fi￿dIng is received in thc 12 month5 pcriod, the charity has Sufficient c&%h reserves to pay all committed eosLI As a resulL the Council consider it appropriate for the financi statements to be prepared on a going eoncem b&sis. Funds General fimds are unrestricted funds available for use at the discretion of th¢ Council in fiJrtheran¢e of the geneTa] objectivcs of AKF (UK) and which have Not been designated for other purwJsc5. Dc5ignated fund5 arc unrcstricted nd5 earnarked by the Council for social development prO￿nmes. institutional devejoprnent and for the purpose of purchasing and developin8 prnperties held by AKF {UK) as part of its charttable activities for social purpose& R¢stricted fvnds are fil[￿ eannarked for specifjc activitie5 by cijntrdettd agreement with donor J8en¢ies. T*t)gible rued Assets Land and buildings and other thngible fixed assets are ststed at their purchase priK together with any inGidcmtal txpcnses of acquisition. Properties received by way of don*ions are stated at a reasonable market value to AKF (UK) t the time of the donation. Fixed &8scts with an acquisition cost of less than £5.OIK> are not capitali5ed. Depreciation is provided on all tangible r￿ed &ssets at rdte5caiculated to writeoff thecoston a 5traight-line basis over theirexpected use￿1 ¢conomi¢ lives &$ follows: Freehold buildings Leasehold buildings Property fixtures and fittings 20A 15% Invtstment propertiex Investment properthes are c#rrÉed atfair value wpw)rted by external vajuers and derived from the current market rents and invesunent property yields for comwdfdble real estste. adjusted if for any difference in the nawre, location or ¢ondition of the spttifi¢ asseL No depr¢ci*ion is p￿vIded. Changes in fair V￿￿e are ￿ognISed irt the Statement of Finan¢ial A¢tivitie Operating leases Rentsls applicable io opernting leases are included in the Ststementof Financial Aetivtties on a strnight-line b&sis over the ]￿e terni. Foreign curr¢DCie5 Transactions in foreign currencies are re¢orded ￿ the rate rnling at the of the transaction. Monetary assets and liabilities arc retran51atcd atthc rdte of exchangc rulingat the bajancc Sheet datc. Exchan8e8ains or losst5 are included in the statement of fjnancial activities. 17 AE4 Khjm Found4uon (United Kingdom) 31 December 2020 RegistrTed Nutnber 01100897 Rc8Èslered Charity Numb¢r. 266518 Notes (coniinue Principxl Accounting policies (CO￿1￿￿) Pensloll eosts AKF (UK) operates a defllKd contri1￿Jt[0Tr pensi¢)n schune for its employe¢& The ossets of the Kheme are held separately from those of the eharitsble company in an independ¢ntly administrred fijnd. Payments made to the filnd and charged in these accounts as part of employment Costs comprisc currcnt contributions. Ineome Grants, dOn￿lOn$ and legacies receivable art from instiDJtional Ik)nor4 private donor5 and AKF Genev& t)onations and legacies are rettsgnised when they become receivable and tax reclaimed on gift donations is accounted for in the period of the associated gÈft. Grants receivable represent those grants where AKF IUK) has signed the contract with the fijnding agency and accepts r¥p)nsibility for theii appli¢ation= these are recogni5ed when t]ie grdnt conditions are met and when AKS {UKI becomes entitled to each instaiment of the 8rant ftuHling. Entitlement to Brant inwmc is considered io be * the ethier px)int of income beins receivable or Eligible cxpendiwre being incurred. Rental income is receivable from cornmerci￿ unit tenants and third party property management Organis￿l0n5 and are reco8rtised when they becorne receivable. Expenditurt Grants made are rttorded on a ¢ommitrncntba5i5whcn there i5asi8ned a8reement orotherunconditional commitment made to a grant recipient and all othcr expenditures are rccorded on an accrnais basis. Charitable expenditure is allocated to the acttvities of the related fvnd. Expenditure under general fvnds is incurred in carrying out generdl operdtional activities undertakeTh by AKF (UK). Expendiwre under designated fijnds is incurred to provide support to social d¢v¢lopment and instityiional development projects and irt rwect of propertics held by AKF (UK) part of its charitable ￿tIvitieS for so¢iai pwses. Expendi￿re under restricted fi￿dS is allocated specifically to the rel￿ed Projects. Supp)rt ￿Sts are allocatcd to the rek¥￿t clLUitablc activity on the b¥15 of the proportion of employee time spent on each a¢tLVity- AccountEng esttm#tes and key judgernents In the application of the AKF IUK)'5 aceountin8 ￿[1¢1￿ Judgern¢n￿ estimates and assumptions about the Carrying valueof &5sets and liabilstiesare made. Thes¢ estim*¢s. judgements and assumptions are made b￿d on a combination of past experience, professional expert advice and other cvidence that is relevant to the particular circum5tanc¢. The key artas of judgetnertt ithcluded in the financi￿ statements are summarised below.. {1} Valuation of investme41t propertie5- Investment properties are carried at fair value supported by extemal valuu5 as disclosed in note 10. {ii) Potential impairnentof r￿ed assets- lmpainDentT¢Vi¢WSOre￿ndU¢[ed when events and Changes in eircumstanees tndicate that an impairnient may have o¢¢urr¢d. If ony assd is fowid to have a carrying V￿￿e materially higher than tts re¢overable amounl it is written down accordingly. (iiil Depreciation of fixed assets - Fixed assets arc depreciated at Tates calculated to write off the cost over their expected useffijl ecortomic lives Changes In accounting policy During the year the Council have wnsidered the a¢¢c4wi¢Jg kKsli¢y for it)come recognition for grant inu>me as well as the policy adopted for recognising staff costs where employees are fillhded in full by AKDN members. This is a change of accounting policy with material effect and so has resulted in a prior period adjustmenL The impact of this change is shown in Notc 24 to the financial ststements. Members of the Council'$ emoluments No emoluments were paid to nor reirnbur5ement of expense5 re¢eiv¢d by the members of the Couneil for their duties 12019.. £0). Aga Kh•n Fo￿￿10n (Ulli￿d KfftBth)ml 31 Iketnber2020 Regis*red NumbEr. 01 IOD897 R¢8i%¢red Charity Number. 266518 Notes (eoniinued) Employee inforniation (Conlimrfd) 21no 2019 £000 Salarie5 and wa8e5 Soctal security costs Pension costs Other benefits 3M17 334 241 2.626 286 204 46 Senior Management personnel earned totsl s￿ry and benefits of £585k (2019: £508k) and pension contributions totalling £49k (2019.. £43k). The averd8e number of staff employed by AKF (UK) during the year is: 2020 Nutnber 2019 Number Communication Finance and Administrdtion Grdnt administration Victoria H￿1 ma[￿ement Aga Khan C¢ntr¢ Mana8ement AKDN Programmes 16 17 13 Employtts urning above £60.001) 2020 Number 2019 Number £60,001- £70.(K)O £70.001- £80.000 £80.001- £90.000 £90,001- £100.000 £ioo.00 i - £1 10,000 £130,001- £140,0ty) £140,00 I - £I50,1 £150.001- £160.000 £180.001- £190.(K]O £190,00 I - L900.￿ £21Q.001- £220,0(10 £260,001- £270,IKK) Pension contribution totslling £134k were made for thcse ernployees durin8 the year{2019: £148k). Eipenditure Expendittwe for the year is sts*d after charging the following costs. 2020 2019 £000 Dq)reciation (note 9} Audit fcc- Crowe UK audit of thcse finaTrcl￿ 5￿C￿ents Audii fee- KPMG Auditor's remuneratton for rwdit servtces 3259 32 (16) 2,E93 33 The £18k disclosed ab)ve in re18ti0ll to notk-audii fees iticludes ftts for a VAT review. ftts for Cory￿ratIOn i computations gthd ftts for prtsject audits. The audit fee for the year endÈrtg 31 Dttember 2020 w8s £26,500 excludin8 VAT. 19 Aga Kh•n Fowithion (United Kingdom) 31 December 2020 Regi%tsred Number. 01100897 Re8i#ued Charity Number.. 266518 Notes (conlipmed) Support Costs Th¢ sup]y)rt Costs of AKF {UK) consisted of three c4)stelements. Supportcosts are all￿3*d on a basis consistent with the use of resources and the ￿l(￿lation of ajlocation is deterniined by th¢ percentsge of time spettt on each category by the relevant staff. Offi Expenses & Infonnation Resources Technology Exper￿$ £000 Total 2020 £000 Total 2019 £000 Unrestrleted funds SOCI￿ dev¢lopm¢ni programmes Institutional development Social and cultural centres Communications and awareness rdising 950 1.639 29 175 284 92 46 1280 1.734 40 235 1,421 1,102 270 364 1793 438 58 3389 3.157 Grants and donations received To￿1 2020 Total 2019 £000 Funds £000 FuTLds Social dtvelopment progr8mmey Eun)pean Commissiort (includi￿g ECHOI UK Foreign. Commonwyalth & Developrtnt (FCtK)) Ktw Agtt Khrtn Found￿10￿ IUSA) Johnsorj & Johttso Royal No￿81￿ Mini5Dy of Foreign Afftss Schwls 2030 The Wcllsprin8 Foundatv)n Vitol FoundatM)n German Fede￿ FoTet8n Off Ikea Fo￿dItIOn t)ubBi Cares Oak Foundatio Other DonatioA% 15.028 10.019 15.028 10.019 3.063 U96 Ih17 1.608 672 6,750 10,814 3,736 2.896 1.617 1.608 672 8(M) 396 3(JJ 396 154 87 920 770 770 647 4.087 33.839 37,926 25.995 lllsiithtion41 develOp￿ellt Donations in ¢ommemoralion of His Highne5s' Diamond Jubilee Donations designated w the Aga Khan UniveTStty Donation5 designated to Kings Cross opeNional costs Donations designated to the Institute of15maili Studies ¢￿tr Donations 3,895 1,765 967 237 4.179 3,895 J.765 967 237 4,179 7.342 2.416 2,221 36 11.043 11,043 12,263 20 Aga Khan Foundation Iunited Kin8doml 31 Dec¢mb¢r 2020 Re8i%teTed NumteT'. 011110897 Registered Charity Nuojber.. 266518 Notes (continued) Eipendithre on social development progr*mmes Unrestricted Rethcted Fund5 Funds £000 £000 Total 2020 £000 Tots] 2019 £(MJo Afghanlstlft FCDO GEC STAGES 11- A8a Khan FoUndatt0￿ Afghantstan EC tmprove Participatory Management and Efficiency of Rangelands and Watersheds- Aga Khan Foundation. Afghanistan FCtK)-Leave No Girl Behtnd- Aga Khan FOund￿lOn. Afghanistan Schools 2030- Aga Khan Fowid*ion. Afghani51an Afghanistan ￿ality luning-ABa Khan Foundation. Afghanistan Austrnlia Afghanistan Community Resilience Scheme - Aga Khan Foundation. Afghanists Girls and Sei¢nce- Aga Khan Found*ion. Afghanisthn Preselvation of Endang¢red Languages in Afghanistsn's Badakhshan- Aga Khan Foundaiion. Afghanistan Province Forest Rcstordtiofi to Enhance Ecosysiem Services in Afghanistan - Aga Khan Foundation. Afghanistan 8.152 2,066 &152 2.468 10,598 506 402 955 955 24 230 254 239 160 193 92 92 63 38 Totsl for Afghanlstsn progrlmmes 825 11,506 12J31 11.398 BAngladesb Community Based Early Childh£￿ Developtnent for Children of the Garnient Sector- Aga Kh20 Foundation. Bangladesh Totsl for BaDgl4desh progr*m￿¢S Egypt cre￿ing A¢c¢ss to Cairo's Islamic Culttwal Heritsge- Aga Kh Culturdl Service5. ￿pt Womert irt Agriculture - Aga Kh￿ Fourmlation. Egypt Strengthening the Capacity and Role of Civil Society Organisations in Egypt ISCR-CSO) - AgaKhan Found*iotL E8yPt 26 279 178 Total for EEYPt 35 279 314 183 21 AgtKhaTh Found￿loll (United Kingdom) 31 Dcccmixr 2020 Re8￿trrtd Number. 01100897 R¢8i5Ee￿d Chuity Numb¢r. 266518 Notes (conlinueo) Expendi￿re on soci*1 development programw¢s {¢oniinue UDrestrK¢ted Restricted Funds Funds £000 £000 Total 2020 £000 Tot 2019 £000 Cros5-Border Shugnan W Energy Cr0$5 Border Proje¢S Phase [- Pamir Energy Supporting Cooperation ond Oppjrtunities for Regional Economic Development (SCORED) - Aga Khan Foundation Af8hanistan, A8a Khan Foundation Tajikistan, AP Tajikistan and Mountan So¢ie¢ies Development Support Progrdmme Cross-Border Commission Integrated Infrastruthre- Aga Khan Foundation, Af8hani5tan Batken-sughd Cross•Border Development Project- A8a Khan Foundation, Kyrgyz Republic and Aga Khan Ftsundatio Tajikist2n PTOEnoting Access to Educational Institutions in the Cross- Border Districts- Aga Khatl FoutLdatiotL Afghanistan Rushan I Cross Border Energy Project- Pamir Energy Establishment of a fibre PTocessin8 unjt with dehairing and storage irt cross-iK)rder areas- AEa Khan Foundatio Tajikistan Cross Border School BuildinB constn￿tiOQ- A8a Khan Foutldation. Afghanistan All-weather Access Toad for CfoSS•border tourism are4s- Aga Khan Foundation, Pakistan Improved Road Infrastructsjre and MarketAc¢￿ itk Imrnil Va]ley - Aga Khan Found￿10￿. P2kist2n Shugnan Vll Cr05S-Border Energy Project- Pamir Ene Kwahan Inte8fdted Development- Aga Klwi Foundation. Afghanistan Nusai Road Phase 11 Rehabilitstion- Aga Khan Foundatiort. Af8hanistsn Chatham House Stabilisation Events and Rewrt - Chatham House Improved Access to Clean Water and Gender Empowernient in the High Mountain Border Regions of Pakistan and AfghanistatL- AgaKhan Foundation. Pakistan Study of Cross-Border Work benveen Afghanistan and its Neighbours- Chatham House 3,624 3￿24 743 449 832 4.746 365 365 250 2511 86 236 214 214 225 186 62 148 1,014 14 72 72 69 69 333 67 (2) Totsil for CrossvBorder progr#mmL5 449 6.097 6546 8.185 22 A￿ Kh*n Foundation (United Kingdom) 31 DeeetDbEr 2020 Registered Number. 01100897 ReBiStered Charity NumlKr.' 266518 Notes (conlim4ed) Expendithre ott soei*l development progrAmmu {¢oniim*d) Urtrestricted Restricted Funds Fun(b £000 £000 Totxl 2020 £000 Total 2019 £000 East Africa Oncology- Comprehensive Cancer Project - Aga Khan Health Scrvices, Tan7Ania Schoo15 2030- Aga Khan Foundation, E&st Africa 616 616 449 526 Nur5Éng and Midwifery Platform- Aga Khan Univusity Enhancin8 the Competitivenes5 of Smalllk)Ider Rice Famiers in Morogom- Aga Khan Fowidation. E&st Africa Strengthening Resilience of Frontline H￿th Workcr5- A8 Khan University Horticultural Value Chain Development- Aga Khan Foundation, East Afrira and TanZ￿la Horticul￿￿1 Association Kenya Global Opportunity Y(yJth Initiative {GOYI)- Aga Khan Foundation, East Africa In Their Hands- Aga Khan Found*ioffj East Africa Improving Socta] and Economi¢ OppOrn￿lI[tS foryiwth in Northern Kenya- Aga Khan Foundation. East Africa 8nd Islami¢ Relief Kenya Linking Community-based Saving Gmips ￿ Formal Fiaantial Services in the WtstNile region ofNorthern Ug8nda- Aga Kh8n Foundaiiort, Uganda Capacity Developmeot Initiative for Disabled Petson's Organizations {Cap4DPOI- Aua Khan Foundation, East Africa and Naiional Union of D5sabled Petstsns of Uganda AKU-SONAM Nursing Scholarships- Aga Khan University. East Africa Madrasa Resource Centre and E￿lY Childho(Kl tkvelw>ment in East Africa- A8a Khan FoL￿dItIon, East Africa StrengtheningNew Pathway5 for Youth Edu￿20n, Empowemient and Employmerti in India and Kcnya - A88 Khan Foundation, East Africa Supportitlg the Government of Kenya's Vaiu¢5-Bas&l Education Poli￿ and Practice- Aga Khan Foundation. East Africa 476 476 282 504 152 152 80 211 56 34 40 21 21 922 14 210 25 (25) 280 522 371 363 31 Tot*1 for Eg$t Afrie4 progrnmmes 766 1,495 2361 3,454 23 A8aKhan Fo￿]&tIon Iunitrd Kiogdoml 31 December 2010 Re8iskred Number." QI 100897 ReEi5tered Ch4rity Numbcr.. 266518 Notes (continued) Expenditurt on social developm*￿t programme5 {con11n￿d) Tot41 21120 £000 Total 2019 £000 Funds £000 Funds £000 India Strengthening New Pathways for Youth Education. Ern￿wennent and Employment in India and Kenya Khan Foundation. India Hygiene & Behayiour Change cO￿ltiOn for COVD19 control - Aga Khan Foundation, India Establishtncnt of COVID 19te5ting faciliti¢s-Prin¢e Aty Khan Hospita], Mumbai Improving Water and Saniration Infrastructure and Hygiene Education in 20 Schoolsof Biharand Uttar Pradesh -A8&Khan Foundation. India Strengthcnin8 the AKF Lehar Programme Foundalion, India Supporting Local Authorities for Accountsble. Re5pJnsive and Transparent Systems for Solid Wa5tc Mana8ement- Aga Khan Foundation. India and Gram Swarajya Samiu Ghose (GSSG) Strengthenin8 Participation in L￿1 Govemanee to Enhance Acce$5 to Entitlements and Basi¢ Seryi¢es by Margin￿ISed Tribal Communities . Aga Khan Rur￿ Suppjrt Programme. India 103 224 327 288 80 44 Aga Khan 19 19 Total for India programmes 103 662 765 120 Kyrgyz Republic Accelerdte Prosperity in centr￿ and South Asia- Mountain Societies Development Support Progrdmme. Kywz Republic Schools 2030- Aga Khan Foundation. Kyrgyz Republic Sustsinable Wintcr Tourism Development PYoje¢i (Phase l)- Asa Khan Foundation. Kyrgyz Republic 192 192 170 1711 16 16 TotAI for Kyr￿1 Republic programm•s 16 362 378 Mad2g#scar Madagascar Innovations Leverage for Climate Adaptatiijn (MILCA)- Aga Khan Foundation. Madagascar SPEEDRICE: "Scaling-up. PrornotiTh8 and Expanding Effortless Direct-seeding RICE pertnaculn]re' _ Foundation, Madagascar 299 299 19 Total for Mad&g8scxr prngr*mmes 299 299 19 24 A8a Khan FoW]d￿l￿n (United Kingdom) 31 Dcccmber 2020 Re8￿￿red￿￿Mber. 01100897 ReKi4ered Chartty NwDb¢r.' 266518 Notes (conlim￿d) Expenditure on sociAI development proEr*mm¢s (¢onlin￿a) Unrestricted Restrithcd Funds Funds £000 TDtal 2020 £000 Totsl 2019 £000 Mali Partenamat pollr le Renfor¢ement de la Résilicncc a I'ln5CCUrité Alimentaire et Nutrittonnelle au Nord Ma]1 (PPJAN)- AgaKhan Foundatio￿ Ma]1 59 59 Totsl for M811 progrnmmes 59 59 M07Ambique Strertgthening Social Cohesion and Resilienee to Radtca]iz2tion in Calj) Delgado- Aga Khan Foundation. Mozambique JUNTOS lJl- Ag2 Khan FoundatioTh, Mozambique Sustatnable Fomiation of Savings Group in Chiure Cabo Ikl8ado- Aga Khon Found￿10￿, Mozambique 629 629 ?4 83 107 97 19 Totsl for Moumbiqw¢ progrnmmes 24 712 736 116 PAkistgll Critical Preparedness, Readines5 and Response Actions for Corooavirus Disease {COv[￿l9) Pa[￿emiC in Gi18jt- Baltistan and Chitrai- Aga Khan Found*ion. Pakista Accelerate Prosperity in Centrat and South Asia- Aga Khan Rural Support Programffle. Pthistan Promoting tntegraled Mounthin Safety in NoTthern P8kistan IptMSNP)- Aga Khan Foundation. Paknstsn Schools 2030 . AB2 1(han Foundation. Pakistan StrenBthenin8 preparedne4 r¢adiD¢ss and resp)rtse attÉon for Covid-19- Aga Kh8n Fourthtl0￿ Pakistan 98 1.514 Ih12 426 414 602 602 602 193 193 72 Totsl for PiklstsD progr*mm 1.126 1193 3J19 602 Portuyl Schools 2030- Aga Kha￿ Foundation. Portugal Capacity Buidlin8 of Senior CaTegivers- Aga Khan FoundatKon. Porbjgal 177 54 231 224 Total for Portugal progr*mmeJ 177 54 231 2?4 Sivitserland Schools 2030- Aga Khan Foundation. Geneva 83 77 Total for Switserhnd progrnmmes 83 77 25 ABaKhan Fowjthion IUnT*d K￿gdOM) 31 Dettmi%r 2020 Registered Number. 01100897 R¢gist¢r¢d Charity Number 266518 Notes (conlinued) Expendithre on social developrnenl progrwnmts {CoMin￿d) Totsl 2020 £000 Totsl 2019 £000 Funds £o¢io Funds £000 Syr18 Salamieh District Mulu-Se¢tyrat Humanithri8n Assistsnce IMSHA)- Aga Khan Foundatton, Syria 277 Total for Syria programme5 277 Tajik￿t*n Critical Infrastructure to Contribute to Stsbility and Peace in Khorog- Ag& Khan Found￿10￿. T&jikist8n Integrnted Heojth ond Habitst Improvement ItHHD PAsht- A8a Khan Foundation, Tajiknstan Schools 2030- Aga Khan Foundation. Tajikistan Improving livelihoods and food se¢urity through sustainablc Natural Resource Management- Mountain Societies Development Support Prtsgrart2me Tajikistan. ACTED. Non-commereial Cooperative Sarob end CAMP Kuhiston Accelerate Prosperity in Central and South Asia- Aga Khan Foundation. Tajikistan & University of Central Asi4 Tajiki5ran Safe Drinking Water and Sanitation ManagaThent in Tajiki51an ISWSMD- A8a Khan Foundation, Tajikistsn Supporting Accclerdted Growth for Entrepreneurship (SAGE)- Aga Khan Foundation. Tajiki5t#rt Rushon Health Care Center- Aga Khart FoLJndation. Tajikistan Shugnon Health Care Centcr- Aga Khan Foundatio￿ Tajikistan Darvoz He￿th Care Center- Aga Khan Foundation, Tajikisran Khomg Rehabilitation Youth Centre- Aga Khan Foundation. Tajikistan Fosteritlg Disaster ResilietKe in knlated Mountsin Environments of Tajikistan- Aga Khan Agency forHabithL Tajikrstan 1,170 1.17 417 417 {7) 229 229 158 158 ios 105 71 71 250 49 49 15 15 15 A5 Is Is 177 Total for TaJSklstaD proRrammes 749 1,504 2,253 420 Unlted KlngdoJD Development of Earthquake model- Global Parametri¢s 42 42 175 Schools 2030 - Save the Children & Oxford MetsurEd Tr2 15 Total for United Kingdom progrAmme5 12 45 sy 175 Total Gr8nts made for 50tiil development 4J42 29,633 25,249 Non-Grant ExpeThliture 2213 818 3,031 2,764 Tot*1 Expenditure lor vjcial developmtht 6J55 26.109 31664 ?8,013 26 A8a Khart Found*ion (United ￿￿KdOMI 31 December 2020 Rc8istered Number Ql100897 R4istered Cbariry Number 266518 Notes (conlinued) Expethdlture on Instltstlonal dtvelopment progrAmm Unrestricted Restri¢ied Funds Funds £000 £000 Total 2020 £000 Total 2019 £000 Aga Khan Foundation G￿ev4 various proje¢ts Aga Khan University Foundation i￿riOuS projects InstiDfft of Ismaili SDJdies for their educational progrdrnrnes Aga Khan Academies for their educational p￿8￿mme$ Propety developments ai Kin8's Cross in kn)ndon 17,000 3.063 2,132 1.836 1.142 17 IW6 1,142 17 357 TotAI GrAnts made for iLstithtionail dtvelfjpm¢tt¢ 1995 1995 22,552 Non-Grant ExFenditure 7.765 7,765 5,892 Total Expenditure for iDJtitutioDAI development 10.760 10,76• 28.444 Tangible fixed assets kaschDld lattd a￿1 btsildi Freebold 8nd builduy rtxfutes A&*ts Under fittujgs Construction TDf#l £000 Cost At l Januyry 2020 Addition5 Disp05a 30J52 3.71M) 133.935 11594 714 175081 4A28 14 Al 31 Decemlxr 2020 34,052 133.935 IU08 I80J09 DtpreeixtiDn Ai l January 2020 ChoT8e forthe ye8r Disp05als 15.874 681 282 20,956 3359 l J94 Al 31 Deccmtrr 2020 16J55 6J94 24215 Nti bookvllut Ai 31 Deeember2020 17.497 131669 5914 14 156,094 At 31 Deeember 2019 14,478 133.653 6,794 154.925 All assets are held forch8ritable puryk)ses. 27 ARaKhan FoundJtion{Unit¢d Kingdom) 31 December 2020 Regisiued Number. 01100897 Regist￿￿ Charity Number 266518 Notes (conlinueo) io Investments Investment ID sh•r AKF (UK) owns one ordinary share of £1 {l%ofthe ￿￿ed and paid up sharecaplt￿) in the Instittrte of Ismaili SDJdies (2019.. £lk which is incorw)rated in England. Investment in property InveSty￿ent pics)ery comprises Fenman House in the Kings Cross estate that is le*%ed to a third paty. Changes in fair values are recogrtised as investment gaitLS or l(*sse5 in the Statement of Financial A¢tiviti¢S. The historical c05t of this property w&$ £20.6m and the most ¢uffent vaiuauon was carried out in May 2021 by a MRICS independent valuer of Krtight Frank LLP. When arrtving * their valuation. they considered ￿e5 from within the King's Cross Estste in order io compare recent sales dat& The independent valuation has bcen taken Ènto account by the Council in their decÉsiort to kttp the balance sheet value at £24.5m 2020 2019 £000 24.500 Balance at l January A¢quisiiions Change in Fair VaJu¢ 24JOO Balance at 31 December 24JOO 24.500 ij Dcbtors 2020 £000 2019 £000 Prepayments and accrued income Debtor5 with other AKDN Agencies Other debtors 555 370 506 384 934 899 Debtors with other AKDN Ageneies includes £76k with AKF Geneva {2019.. £90kk £129k with Aga Khan Academies {2019.. £96kl. £66k with Aga Khao Education Serviccs (2019: £86k) and £98k with AKDN (2019: £113k). 28 Aga Khan Foundation (Uniied Kth8dom) 31 DeceJnbEr 2020 Re8tsiered Number 01100897 Rcgisttr¢d Charity Number.. 266518 Notes (conlimied) 12 L*Ase Commitments AKF IUK) has three opernting lease contracts ITh place. The first relates to Fenman House in the Kings Cross eswe that is It￿d to a third party. The I￿t is for S years until 31 January 2023 with a[LnU￿ rcnts indexed to RPI. In addition, thcre art contracts in place for two commercial urti￿ the fitsi in Aga Khan Centre and the second sn Victoria Hall. The unit in Aga Khan Centre is leased to a third party and thc contract runs until 28th September 2039. The unit at Victoria H￿1 is le&%ed to a sep#rate third party and ruLs until the 3rd September 2037. AKF(UKI h&$ the following k*ng tenn operating lease commitsnents 20211 £OOD 2019 £000 Receivable in less than l y¢ar Receivable bth¥een l artd 5 years Receivable in greater than 5 ye￿S 811 1822 664 790 2.451 890 3J07 4.131 13 Creditors 2020 £0( 2019 £000 Amounts f#lllng dut wlthin ye*r Accruals and deferred income Trade creditors Payroll taxes Qkher creditors 1.715 47 106 47 3.110 560 95 38 1,915 3,303 Income hds been deferred where it has been received in advanee of coThtractswi obli8ation5. 14 T8xation AKF (UK) 15 considered to pass th¢ tests se¢ oui in PaTrwh I S¢hedule 6 Finance Act 2010 and th¢Tefore meets the definition of a charitable trusi for LfK income taxpuTposes. Accordingly. thccharity 15 FX)tentially exempt from tsxation in respect of income or capitsl gains received within categorie5 covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Aet 1991 to the extent that such income or gains applied exclusively to charitable purpose5. 29 Aga Khan Foundation Iunited King&)ml 31 tkcembcr 2020 Re8iStered Num￿r.. 01 ILK1897 Registaed Nurn￿r. 266518 Notes (conlinuei 15 Peusion scheme AKF (UK) operates a defincd contribution pcn5ion scheme. The pension cost charge for the period represents ¢ontributions payable by AKF (UK) to the scheme and ￿nou[￿ed to £264k {2019: £204kJ, £34k was payable at 31 December 2020 (2019.. £36k). 16 Reconuli•tion of nei ineothel (eipendltsre) to Det inflow from operating activities 2020 2019 £000 Net movement in fvtK Depreciation on taThgible r￿ed assets {Gain) / Loss on Invcskncnt Gift in kind donations capitaiised Interest r¢c¢ivable Oncre4se) I d¢crease in &btor5 Increase l (decrease) in cRdttor5 14,042 3J59 (12.979) 2,193 (3.742) (so) {35) (lJ88) 1.722 1,002 Net Usb Inflow l (oufflow) from oper*tlng *etivities IlJ86 (8.233) 17 Cash aThd cash equivalents 2020 £000 2019 £000 Changes in the year At l January Net c&sh inflowl{oufflow) 24.790 J3.343 (8,553) At 31 December 3&740 ?J,790 18 pitsl Commitments CoNdliion41 cupilol comm11￿llts There were no material cortditionai capitsl commithients as at 31 December 2020. 3D A#a Kh￿ Foun￿10￿ (Unikd Kthgdom} 31 Decernber 2020 Re8i%iered Nutnber 01100897 Rw"stcr¢d Charity Number. 266518 Notes (eontintsed) 19 Reconciliation of fundg UDre5tricted FuniLs Genernl Designated Funds Fun(L% £000 £￿0 Restrieted Fun 2020 Totsl £000 2019 Tot £000 £000 Balanrc at l January Income Expenditure Recognised Gaifts I (Losses) Balance at 31 December 385 3265 (3,289) 195,499 21.885 {15.640) 5,4?7 33.839 (26.109) 201 JII 58,989 {45,038) 91 214,290 44.890 (57.5221 347 Represe￿trd by: Fixed assets Current ¥sets Curyertt liabiliiies 180.594 21341 I80￿94 36,674 179,425 25,689 569 13.764 General fijrtds are held to provide ca5hfiow rtserves and working c•pitsl. R¢stri¢ted fijrtds relate ￿ social devcloprncnt projects and will be spent in 2021. Designated funds represent fvnds earni￿k¢d by the Council for the following purposes: Sotial [￿titutionAl DevtlopmeDt Developmtnt 2020 Tot*1 £000 2019 Total £￿0 £000 Balance at l JanLWy Income Expenditure Rewgnised Gains l{Losses) 2,048 4.119 {5.275) 91 176,195 13.443 (9.026) 17,256 4.323 {1 J39) 195.499 21A85 {15,6401 91 211,536 17.405 (33,005) 437 R¢present¢d by: Fixed assets Current assets Current liabilities 162.875 18.8)7 17.719 2,521 180J94 22J41 179,425 17,695 21 983 Social Development funds will be used t￿ftnaThc[￿8 projects Irt 2021. Institutional Developrnent fvnds are mainly fixed a55ets and cash reserves will be used th support AKDN instiDJtions. Social furkds are mainly fixed assets and the cash reseNes are held ￿ develop these p￿￿leS as requirtd. 20 Called up share eapitsl 2020 2019 Authorised, issued and fully plid: 100 Ordinary shares of £1 each According to the Memornndum of Associatiort the liability of the rnernbers is limited. Every member of the ch￿11&bIt company undertaJ(es to contrtbute to the assets of the charitable company in the event of it being wound up. su¢b ount mt exceeding £1. In addition, the charitable company is precluded from making any distributions to metnbers tither by way of a dividend or on a winding Ltp. 31 Aka Kh￿ FO￿￿allOn (Uni¢ed Kingdornl 31 Decetnber 202 Registsted Number.. 01100897 R¢gi*cr¢d Charity NumbeT'. 266518 Notes (conlinued) 21 Ultimate boldiDg company The ultimate holdin8 company is regthed by the membeTS of the Council as being Aga Khan Foundation Genev4 which ts incortx)rated in Switzerland {UID- CHE-100.845.3111 and b¢nefKially own5 onc hundred percent of the shares of AKF (UK). 22 Related party trAns•ctiOns •nd other AKD14 #gtheies There have been no related party transactions between AKF (UK) and the members of the Cour]cil in 2020. Transactions with AKF Gencva and agcncie5 within the A8a Khan Development Netsvork consist of the following: staff costs associated with projects ￿nded by other AKDN agencies (note I l)" and grants and donations of funding for prnject4 prngrdtnmes and other activities supported by AKF IUK) (notes 6. 7 and 8). 23 Prior Period Adjustmellt During the year the Council have Conside￿ the accounting wjlicy applied io income recognition for grant income. Previously AKF {UK) had deemed entstlementto income to occur only on¢e monies h&1 been expended eitherdiredy by AKFIUK) or through disburscments of onward Brants to implementing partners. This policy has been reviewed and erttitlement to income is now eonsidered to be at the earlier point of income bein8 receivable or eligitsle expenditure bein8 incurred. Further the Council have o)nsidered the w)li¢y athpted for recognising staff Costs where employees are fi￿ded in ￿11 by otherAKDN agencics. CosL% connected to these employees were prevK)usly not recognised in the financial stat¢ments and are now recognised in full. These are changes of a¢couniing ￿liCY with materiai ¢ffe¢t and so bave resulied in a prior pcriod adjustrnents. The impact of these clwig¢s is S￿￿￿ ￿low.. Reserves It l January 2019 (as previously statrd) Release of income previously def¢tT¢d reTa(ing ￿ yw ended 31 tkternbtt 2018 Reserves at l January 2019 8s reststrd 2]3.(￿2 Tota] ereditors at 31 December 2019 (as previousty ststed) Release of income previously defetTed at 31 tk¢ember 2019 Tota] creditors at 31 tkeembu 2019 as res¢ated (8.749) Total ineome the year ended 31 December 2019 (as previousty ststed) tTnpact of reversa] of defer￿d income relating to year ended 31 December 2019 ttnpact of AKDN stsff cost inclusion for the yearended 31 December 2019 Total inwm¢ for the year ended 31 December 2019 &5 restated 40,158 3,658 Totsl expenditure for the yearended 31 Decernber 2019 {&% previously stated) Impa¢t of AKDN staff cost inclusion for the year ended 31 December 2019 Totsl expendi￿re for the yrar ended 31 December 2019 &s restated 56,448 32