Report to the Board
Board -2021 -Mtg -4-Doc 07a -Annex A

Annex A: COVAX Reporting Framework
Section A: Update on *DvL?V &29$; )DFLOLWy DQG &29$; $0& 0RQLWRULQJ,
Evaluation and Learning (MEL) strategy
The Gavi Secretariat presented its proposed MEL approach to the Gavi Board in
December 2020. Since then, we have further refined this approach and begun
implementing key aspects of the strategy. The approach is intended to be holistic in
nature, spanning from inputs through to impact across the COVAX Facility and COVAX
AMC , and complementary to work being led by other COVAX partners and the wider
global health community . It is intended to support both accountability and learning
perspective s and will need to evolve and adapt over time to reflect the changing nature
and needs of COVAX. It has close linkages to the Secretariat?s and broader COVAX Risk
Management and Assurance work .
The table below provides some of the key highlights and update s on progress against the
core elements of Gavi?s COVAX Facility and COVAX AMC MEL Strategy since the June
2021 Gavi Board.

MEL
strategy
component
Key activity Highlights / update (December 2021)
Cross -cutting COVAX Theory of Chang e Revision and further improvements to the core
COVAX Facility and COVAX AMC Theory of
Change is included within the scope of work for the
COVAX Facility and COVAX AMC evaluability and
evaluation design phase.
Updates will be made to reflect the COVAX Facility
2022 strat egy.
Monitoring COVAX Reporting Framework Reporting against COVAX Reporting Framework
made available for PPC and Board
The COVAX Reporting Framework will be updated
to align with the COVAX Facility and AMC vision
for 2022 (see summary below)
Complementary monitoring to
COVAX Reporting Framework
COVAX Facility, Gavi Secretariat teams and core
COVAX partners continue to monitor aspects of the
Facility and AMC to a much greater extent beyond
the metrics currently captured in the topline
Reporting Framework .
One key example is through the Country
Readiness and Delivery (CRD) Implementation
Monitoring Review, which triangulates data from a
number of sources to inform a weekly review of
progress or challenges across key delivery areas.
Examples incl ude vaccination uptake, absorption
and expiry, costing and financing and vaccine
safety.

Classified as Internal #
Gavi Alliance Board Workplan
Gavi Board Paper Type Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec
A. Strategy/Performance/Risk/MEL
CEO's Report CEO's Report Discussion
2021-2025 Strategy Strategy, Programmes and Partnerships: Progress, Risks and Challenges Discussion
Discussion Discussion Discussion Discussion Discussion Discussion Discussion Discussion
2021-2025 Strategy Gavi 5.0 Decision
Measurement Framework (Targets & Indicators) Measurement Framework Decision
Funding Policies* Gavi 5.0: Operationalisation Decision Decision
Innovation Gavi Innovation Strategy Decision Decision
Private Sector Engagement TBD Information Information Information Information Information
Middle Income Countries (MICs) TBD Decision Decision
Civil Society and Community Engagement Approach Civil Society and Community Engagement Approach Decision
Partners' Engagement Framework TBD Decision
Disease Surveillance and Diagnostics in Gavi 5.0 TBD Decision
Discussion
Risk and Asurance Report Risk and Assurance Report Decision Decision Decision Decision Decision
2026-2030 Strategy TBD Decision
Guidance Decision
Measurement Framework (Targets & Indicators) TBD Decision Guidance Decision
B. Vaccines & Sustainablity
Typhoid TBD Information
Pneumococcal AMC (Advance Market Commitment) TBD Information
Inactivated Polio Vaccine (IPV) co-financing approach TBD TBD
Guidance Decision
Malaria TBD Decision
Update on vaccines for epidemic preparedness and response TBD Discussion
Vaccine Investment Strategy TBD Decision
Guidance Decision
COVAX
COVAX Decision Decision Decision
C. Policy
Fragility, Emergencies, Refugees Policy TBD Decision Decision
Transparency and Accountability Policy Decision Decision
D. Country Programmes
Nigeria TBD Information Information Information Information Information
PNG TBD Information Information
Strategic Partnership with India Strategic Partnerships with India Decision
Post-Transition Support (e.g. Angola, Timor-Leste) TBD Information
Fiduciary risk assurance and financial management capacity building
Fiduciary risk assurance and financial management capacity building Decision Information
E. Finance/Audit & Investigations
Annual Accounts Annual Financial Report Decision Decision Decision Decision Decision
Financial Forecast Financial Update, including forecast Decision Decision Decision Decision Decision Decision
Budget Financial Update, including forecast Decision Decision Decision Decision
Audit & Investigations Report Audit & Investigations Report Information Information Information Information Information
F. Governance
Board Chair Appointment Board Chair Appointment Decision Decision
Board Vice Chair Appointment Consent Agenda Decision Decision Decision
Committee Chair Appointments Consent Agenda Decision Decision Decision Decision
Board and Committee Appointments Consent Agenda Decision Decision Decision
IRC Appointments Consent Agenda Decision
CEO Appointment Consent Agenda Decision Decision
Secretary Appointment Consent Agenda Decision
Treasurer Appointment Consent Agenda Decision
Appointment of MD A&I Consent Agenda Decision
Amendments to Governance Documents (Statutes, By-Laws, Committee Charters) Consent Agenda Decision
IRC Terms of Reference TBD Decision
Audit & Investigations Terms of Reference TBD Decision
G. Reporting
Committee Chair Reports Committee Chair and IFFIm Board reports Information Information Information Information Information Information Information Information Information
IFFIm Chair Reports Committee Chair and IFFIm Board reports Information Information Information Information Information Information Information Information Information
Replenishment/Resource Mobilisaton TBD Discussion
HR Report Closed Session Information Information Information Information Information
Annual Report on Implementation of the Gender Policy Annex to Strategy paper Information Information Information Information Information
CEPI Progress Report
Annex to Board pack/On BE as additional materials Information Information Information Information Information Information Information Information Information
Board and Committee minutes
Annex to Board pack/On BE as additional materials Information Information Information Information Information Information Information Information Information
H. Pre-Board Technical Briefing Sessions Discussion
Gender
*Includes Eligiblity & Transition Policy, Co-Financing Policy, HSIS Support Framework, CCEOP Last updated - 17 November 2021
Next Board Meetings
:
6-7 April 2022, Retreat
22-23 June 2022
7-8 December 2022 2022 2023 2024 2025
Board-2021-Mtg-4-Doc 01e

1



Board -2021 -Mtg -4-Doc 03


Section A: Executive Summary
Context
At its June 2021 meeting, the Gavi Alliance Board reviewed and approved the
Financial Forecasts for (i) Gavi (excluding COVAX) for the Strategic Period
2021 - 2025 ( ?Gavi 5.0 ?) and (ii) COVAX Advance Market Commitment (? AMC ?) for
the funded period 2020 -2022 . This paper presents the updated Financial
Forecast s for Gavi 5.0 and COVAX AMC including the impact of the additiona l Gavi
5.0 investment priorities presented for decision at this Board meeting . A
consolidated overview is also presented for the first time to reflect the full financial
portfolio of Gavi 5.0 and COVAX AMC.
Gavi 5.0 has begun amid some reversal of pre -pandemic gains and continued
uncertainty about the future evolution and impact of COVID -19 on routine
immunisation systems. Increasing global and country attention to the rollout of
COVID -19 vaccines makes the Alliance?s ambitious equity targets, such as the
reduction of zero -dose children by 25% by 2025, even more daunting. Gavi is
actively working with c ountries to maintain focus on routine immunisation while
delivering COVID -19 vaccines. Given countries are heterogeneous, demonstrating
variable impact of the pandemic on routine immunisation as well as capacity to
mount an effective response including vac cination, the Alliance is drawing on all
its levers to support tailored solutions for each country. In preparing the financial
forecast the Secretariat considered a number of uncertainties relating to continued
disruption of essential health services inclu ding routine immunisation from COVID -
19 pandemic and country efforts to scal e up COVID -19 vaccination . The current
assumptions underpinning the financial forecast consider, among other things, the
continued commitment to deliver Gavi 5.0 Strategic Objecti ves and the outcome of
the recent High Level Review Panel ( HLRP ) which, as supported by the 2020
WHO/UNICEF Estimates of National Immunisation Coverage ( WUENIC ) data
released in July 2021, indicate that implementing countries continue to prioritise
routine immunisation programmes and sustain vaccination of children.

At this point in time there are no material changes to the approved
expenditures nor phasing of key activities in the Gavi 5.0 financial forecast .
The Secretariat will continu e to engage with countries and partners to assess the
assumptions and, if circumstances change, will reflect them in the next reforecast
cycle. The Secretariat support and expenditure for Gavi 5.0 remains unchanged ,
although there is some phasing of costs from 2021 into the outer years reflecting
the lower spend in 2021 due to COVID -19 disruption.
SUBJECT : FINANCIAL UPDATE , INCLUDING FORECAST - REVISED
Agenda item: 03
Category: For Decision
Report to the Board
30 Nov ember - 2 Dec ember 2021

Report to the Board
Board -2021 -Mtg -4-Doc 03-Annex A

Annex A: Implications and Anticipated Impact
1. Impact on countries
Approval of the Financial Forecast enables funding to be allotted to
programmes in accordance with the Programme Funding Policy.
2. Risk implication and mitigation, including information on the risks
of inaction
Determination of Gavi?s financial capacity to approve the recommended
decisions relies on the Financial Forecast. Risks that may impact the reliability
of financial forecast are described below, as well as the mitigation strategies in
place to address these risks.
One of those risks arises from exposure to foreign currency exchange rate
fluctuations. In the forecast, non -US dollar denominated pledges are valued at
their USD equiv alents using the Bloomberg spot exchange rates when
compiling the forecast (consistent with the approach agreed with donors) or,
where hedged, at the hedge rate. Pledges are hedged progressively.
Gavi?s Cash and Investments Reserve as mandated by the Prog ramme
Funding Policy provides a cushion for adverse fluctuations in resources and
expenditures. Gavi can also decline or defer funding requests based on
resource availability.
3. Risks associated with the financial forecast and mitigation
Factors that may impact the expenditure forecast include:
Demand volumes can vary significantly based on small changes in country
introduction assumptions. While the introduction assumptions made in the
current forecasts leverage the information currently available, there remains an
inherent high degree of uncertainty on these assumptions. In addition, the
assumptions on introduction timing are often dependent on projections of when
a country will no longer be eligible for new Gavi support. This forecast
represents th e application of the current Board approved Eligibility
and Transition Policy. Changes or exceptions to this policy could vary demand
significantly.
Price forecasts reflect expected market dynamics specific to each vaccine.
The point forecast represents a moderate most likely scenario estimate
among a range of possible estimates and reflects information available at the
time of preparation of the forecast.
The forecast includes assumptions for supply availability as currently
anticipated.
Expenditure reductions may also be achieved through future vaccine price
reductions beyond the reductions already incorporated into the price
forecast and more efficient stock management at country level beyond the
reductions already incorporated into the volume forec ast.

Report to the Board
Board -2021 -Mtg -4-Doc 03-Annex B

Annex B: Terminology Used in Basis of Preparation

Terminology and rounding
Terms used in th e financial forecast update paper have the meanings described
below, and are relevant to Gavi?s Programme Funding Policy . Given the nature of
the COVAX Facility and the current Board mandate, not all concepts are applicable
to COVAX.
a) Assured Resources comprise:
? Cash and investments of Gavi, in the amount that exceeds the Cash and
Investments Reserve (see ( d) below)
? Expected proceeds from IFFIm, based on existing donor pledges
? Any other contributions that are contingent on programmatic expenditure
included in the expenditure forecast (ring -fenced funding)
? Confirmed direct contributions to Gavi that are pledged under already -
signed agreements or otherwise confirmed in writing
? Projected investment income
b) Allowance for Further Direct Contributions (for the purpose of approving
funding decisions): An allowance for further expected direct contributions
from existing donors who have not confirmed their pledges for each year,
based on current overall contribution levels. The allowance is mandated by
the Programme Funding P olicy and is important towards enabling programme
funding decisions to be made while pledges have yet to be completed
for particular years. The allowance assumes that in years where currently
confirmed direct contributions total less than the current level , further
contributions will bring the total to that level.
c) Qualifying Resources : The sum of Assured Resources and the Allowance for
Further Direct Contributions (i.e. (a) plus (b) above).
d) Cash and Investments Reserve : The reserve required by the Programme
Funding Policy to be maintained at a minimum equalling eight months
(currently nine) of expected annual expenditures.
Rounding:
In text and tables throughout th e financial forecast paper, numbers may be
rounded to shorter, signi ficant numbers in order to enhance readability and ease
of reference. Individual numbers and the totals they comprise are rounded
independently. Consequently, the individual numbers may appear not to sum to
their total because of rounding.
Vaccine programme acronyms
Pneumo / PCV : Pneumococcal conjugate vaccine
https://www.gavi.org/types -support/vaccine -support/pneumococcal

Report to the Board
Board -2021 -Mtg -4-Doc 04-Annex A

Annex A: Audit and Investigations - background
? In 2009 Gavi became an independent organisation ( having previously been
?hosted? by UNICEF), and Gavi?s Internal Audit function was first -established as a
single person activity. In December 2014, with a growing need for assurance, the
Board approved the reconstitution of audit as the 13 -person Audit and
Investigations (A&I) function. A&I comprises the third line of defence being
independent of Gavi?s core activities and oversight functions and reports to the
Board, which is achieved through routine reporting to the AFC, and the Chief
Executive Officer. Audits and other reviews are conducted against annual plans
approved by the AFC, drawn from a risk -ba sed assessment of priority.
? A&I operates under a charter approved by the Board, (?Audit and Investigations
Terms of Reference? , ToR ) which is reviewed and updated periodically. This sets
out the basis of operation of the function, its reporting relationshi p to the AFC and
Board, and critically, the basis of its independence. This was last amended in June
2020.
? The A&I function undertakes four main activities:
o Internal Audit which is an independent and objective assurance and consulting
activity to evaluate and improve the effectiveness of the organisation's risk
management, control, and governance processes.
o Programme Audit which conducts audits of programmes in -country to assess
whether: a) programmes are operating with appropriate systems and processes
in a manner consistent with the requirements of the Partnership Framework
Agreement (PFA) agreed between country and Gavi, and is sufficient to support
an independent and sustainable programme after transition from Gavi support;
b) Gavi support, including cas h, vaccines and related supplies, have been used
as intended to provide value -for -money, considering both financial and
programmatic aspects.
o Investigations and Counter -Fraud which conducts an evidence -based
examination of possible misuse and other misconduct within Gavi, in Gavi -
supported programmes in -country, or which otherwise impact upon the
organisation. It undertakes preventive activities to minimise the risk of such
conduct occurring and/or impacting the organisation.
o Whistleblower Reporting which receives reports from internal and external
sources, and follows up as appropriate, on potential concerns relating to :
financial or programmatic misuse ; sexual harassment, exploitation, and abuse ;
or other misconduct.
? A&I is required by the professio nal standards of the Institute of Internal Auditors
(?the Institute?) , a s embodied within the ToR, to undergo at least a five -yearly
independent assessment of its policies and procedures, and satisfactory
application of them . This was satisfactorily concluded in March 2020 by the
assessment arm of the French Institute without qualification against any of the 62
assessment criteria.

1



Board -2021 -Mtg -4-Doc 05

Rapport pour le Conseil
d?administration
30 novembre ?2 d?cembre 202 1


Le 24 novembre 202 1

Chers membres du Conseil d?administration,
Alors que nous allons bient?t entamer la troisi?me ann?e sous pand?mie, l a
pertinence et l?urgence de la t?che de Gavi ne font que cro?tre . Durant ces deux
ann?es de pand?mie, nous avons aid? les pays ? maintenir, restaurer et renforcer
la vaccination de routine , cherch? ? atteindre les plus m arginalis?s et ? mettre fin
? la phase aigu? de la pand?mie par la vaccination. Nous abordons 2022 avec la
m?me vision , tout en ?tant conscients des risques encourus . Lors de cette r?union,
le Conseil d'administration aura l'occasion de discuter des principaux risques
d?crits dans le nouveau rapport sur les risques et assurances . Comme indiqu?
dans la derni?re version de la d?claration de Gavi sur l?app?tit pour le risque ,
approuv?e par le Conseil d'administration lors de sa r?union de juin, cette pri se de
risques en vaut la peine , sachant que nous n?en continuons pas moins ? exercer
sur eux une surveillance active et cherchons ? les att?nuer autant que possible.
Nous nous effor?ons de maintenir un bon ?quilibre entre notre soutien ? la
vaccination syst?matique , les priorit?s d?finies pour Gavi 5.0 et la n?cessit? de
mettre fin ? la pand?mie . Avec la COVID -19, nous sommes entr?s dans une
nouvelle ?re , et Gavi s?est engag?e ? fond dans la riposte mon diale ? la pand?mie,
ce qui l?a plac?e sous les feux de la rampe comme jamais auparavant. En
inscrivant l'?quit? au centre de la riposte , nous avons engag? notre r?putation .
Nous sommes toujours en train de nous battre pour essayer de combler les failles
inadmissibles observ?es dans la couverture vaccinale contre la COVID -19, tout
particuli ?rement dans les pays ? faible revenu.

L'ann?e ?coul?e ?tait ?galement la premi?re ann?e de mise en ?uvre de Gavi
5.0 . Forts des succ?s obtenus entre 2016 et 2019 par l'Alliance en mati?re de
couverture vaccinale et d'?quit? , nous ?tions pr?ts ? donner le coup d'envoi de
cette nouvelle p?riode strat?gique en nous attachant encore davantage ? l'?quit?
dans la vaccination . Nous avions ?tabli comme marqueurs de succ?s le fait
d?atteindre les enfants z?ro dose et les communaut?s laiss?es pour compte .
Malheureusement, nous subissons toujours les effets de la pand?mie , qui vont
probablement se faire sentir encore pendant plusieurs ann?es. Dans les pays
?ligibles au soutien de Gavi , l es cas de COVID -19 repr?sentent autour de 22 %
des cas signal?s dans le monde . Dans certains pays, le nombre de cas augmente
Rapport du Directeur ex?cutif

 

 

Board -2021 -Mtg -4-Doc 0 5 1

Report to the Board
30 Nov ember ?2 D ec ember 202 1


24 November 202 1

Dear Board members ,
We will soon be entering our third year of the pandemic, and Gavi?s work is
increasingly relevant and urgent. Throughout the pandemic , we have dedicated
ourselves to supporting countries in maintaining, restoring and strengthening
routine immunisation, to finding new ways of reaching the most marginali sed, and
to ending the acute phase of the pandemic with immunisation. Looking ahead to
2022, we remain steadfast in this ambition, while also being cognisant of the risks.
The Board will have an opportunity in this meeting to discuss the top risks
described in the new Risk & Assurance Report. As per Gavi?s upd ated Risk
Appetite Statement , approved by the Board in its June 2021 meeting, these risks
are worth taking , but we continue to actively monitor and mitigate them to the
extent possible. Importantly, we are seeking to maintain the right balance between
our suppo rt for routine immunisation , our Gavi 5.0 priorities and the need to put
COVID -19 behind us . This new COVID -19 era and Gavi?s engagement in the
global response has thrown the organi sation into the public spotlight in way s it has
not been previously. We have put our hard -won reputation on the line in an effort
to put equity at the cent re of the response and are still engaged in the upward
battle of filling the unconscionable gaps in COVID -19 coverage , particularly in
lower -income countries.
This past year was also the first year of Gavi 5.0 implementation . Building off
the Alliance?s strong ?Coverage & Equity? achievements from 2016 ?2019, we were
poised to kick -start this new strateg ic period with an even sharper focus on e quity,
with reaching zero -dose children and missed communities as our marker s of
success. Unfortunately, the effects of the COVID -19 pandemic are not over and
will likely continue for at least another few years. COVID -19 cases in Gavi -eligible
countries ac count for ~22% of the reported global burden, with continued increase
observed in some countries but with varying waves of disease in others. While
there is a high degree of variability across countries , these trends of continuing
disease, contracting fiscal space and the reduction in coverage reported in the
202 0 WUENIC estimates have profound implications for Gavi -supported countries
and our programmatic efforts. There are four key messages I would like to
emphasi se:
Report of the Chief Executive Officer

 

 

1

Re port to the Report to the Board
Board -2021 -Mtg -4-Doc 06-Annex A


Annex A : Updated Alliance KPI dashboard

Classified as Internal
BOARD & COMMITTEE ATTENDANCE
GENDER BALANCE
Partners 3
1
2
3
4
5
6
7
SFA/PEF ACHIEVEMENTS
CSO ENGAGEMENT
PLEDGE CONVERSION
DONOR ENGAGEMENT IN COUNTRY
END 2019 TARGET: N/A EVALUATION ALIGNMENT
END 2020 TARGET: N/A COUNTRY REPORTING
END 2020 TARGET: 85%
55%
END 2020 TARGET: 50%
END 2020 TARGET: 100%
END 2019 TARGET: N/A
END 2020 TARGET: 95%
Governance 4
1
Secretariat & partners 1
2
4
5
6
VACCINE INTRODUCTIONS
END 2020 TARGET: 54 NEW VACCINE COVERAGE
END 2019 TARGET: 90%
END 2019 TARGET: 90% HSS PROPOSAL QUALITY
END 2020 TARGET: 100 % HSS FUND UTILISATION
END 2019 TARGET: 7 5 % HSS GRANT TARGETS
END 2019 TARGET: 50%
26%
Secretariat
OPERATIONAL DEMAND FORECAST
PROGRAMME FINANCE FORECAST
SPEED OF CASH GRANT DISBURSEMENTS
END 2020 TARGET: 9 months AUDITS ON TRACK
END 2020 TARGET: 80% RISK MANAGEMENT PLAN PROGRESS
END 2020 TARGET: 60% OPERATING EFFICIENCY
TARGET: N/A?
END 2020 TARGET: +/ - 10%
END 2019 TARGET: +/ - 10%
1
2
2016 ? 2020 INDICATORS
ALLIANCE PROGRESS
4
Gavi Board UPDATED: 15 September 2021
PARTNER GROUP
PEF
PEF
CSO
DONORS
DONORS
COUNTRIES
TCA ACTIVITIES ON TRACK
0 EVALUATIONS
Health system strengthening Targeted country assistance Strategic focus area Partners' engagement framework Civil society organization
HSS TCA SFA PEF CSO
END 2019 TARGET: 90%
88%
END 2020 TARGET: 40%
100%
41%
END 2019 BASELINE: 56
END 2018 BASELINE: 96%
END 2018 BASELINE : 10%
END 2019 BASELINE: 71%
END 2018 BASELINE: 58%
2018 BASELINE : 50%
END 2019 BASELINE: 10.5 months
END 2019 BASELINE :86 %
END 2019 BASELINE : 88%
2017 BASELINE $283k:
END 2019 BASELINE : - 6%
END 2018 BASELINE : - 19%
END 2019 BASELINE: 50 %
END 2019 BASELINE :95 %
END 2018 BASELINE : 59%
END 2019 BASELINE : 95%
END 2018 BASELINE : 94%
END 2019 BASELINE : 0
2015 BASELINE : 26%
END 2018 BASELINE : 87%
END 2019 BASELINE : 45%
ON TRACK MODERATE DELAYS / CHALLENGES SIGNIFICANT DELAYS / CHALLENGES
4
TRACKING TREND ONLY
28%
69%
3 2 0
94% 61%
93%
90%
14%
278K
NO UPDATE AT THIS REPORTING PERIOD
3 MEASLES CAMPAIGN COVERAGE
9.7 months
4
5
6
3
2
1
2
48%
19
67%
+17%
100%
NB: Graphics not drawn to scale
No update

No update

+8%
No update

No update

No update
No update

No update

Board -2021 -Mtg -4-Doc 01d -Annex E
Gavi Alliance
Evaluation Policy
Version 4 .0



DOCUMENT ADMINISTRATION


VERSION
NUMBER APPROVAL PROCESS DATE
1.0 Prepared by:
Reviewed by:
Reviewed by:
Policy options reviewed by:
Reviewed and recommended by:
Approved by: Joint GAVI Alliance &
Fund Board
Effective from: 27 June 2008
2.0 Reviewed and recommended by:
Gavi Evaluation Advisory Committee

Approved by: Gavi Alliance Board Effective from: 1 July 2012
Next review: In 2014 or as and when required
3.0 Reviewed and recommended by:
Gavi Evaluation Advisory Committee
10 -11 April 2019
Approved by: Gavi Alliance Board Effective from: 1 July 201 9
Next review: Prior to next Gavi strategic period
(2025), or as and when required
4.0 Reviewed and recommended by:
Gavi Evaluation Advisory Committee
26 November 2021
Approved by: Gavi Alliance Board 30 November 2021
Effective from: 1 January 2022
Next review: Prior to next Gavi strategic period
(2025), or as and when required

Board -2021 -Mtg -4-Doc 01d -Annex F
Gavi Alliance
Treasury Governance Policy
Version 1.0




DOCUMENT ADMINISTRATION



VERSION
NUMBER APPROVAL PROCESS DATE
1.0 Prepared by: Treasury Team

Reviewed by:
Director, Finance & Chief Accounting
Officer
4 August 2021
Reviewed by:
Treasury Risk Management
Committee
30 September 2021
Reviewed and recommended by:
Gavi Audit and Finance Committee 19 October 2021
Approv ed by:
Gavi Alliance Board
2 December 2021
Effective from: 2 December 2021
Next review: As and when required





Board -2021 -Mtg -4-Doc 01d -Annex F 2
Gavi Alliance
Treasury Governance Policy
1. Purpose
1.1. The purpose of this Treasury Governance Policy ( the ? Policy ?) is to strengthen the
management of treasury -related activities at the Gavi Alliance (?Gavi?). The Policy
provides key guiding principles and defines primary roles and responsibilities for
the execution of these guidelines.
2. Scope
2.1. This Policy shall apply to all business units within Gavi which are undertaking or
are engaged in decisions impacting treasury -related activities in the areas of:
2.1.1. Cash and liquidity management;
2.1.2. Cash flow forecasting;
2.1.3. Financial risk management;
2.1.4. Financial guarantees;
2.1.5. Bank relationship management;
2.1.6. Treasury technology including bank connectivity.
2.2. The Treasury function spans across Gavi?s business activities . Therefore, the
Policy is applicable to current a nd future Gavi programmes.
3. Policy Statements
3.1. Treasury Team shall be ult imately responsible for recommending the treasury
improvement plan and operationally executing activities belonging to its remit.
3.2. The main Treasury Team? s objectives are to:
3.2.1. Manage liquidity in order to fulfil Gavi?s financial obligations in a timely and
cost -effective manner;
3.2.2. Identify financial risks and measure financial exposures to protect Gavi
against negative financial impact by recommending and implementing
suitable risk management strategies;
3.2.3. Define and maintain an efficient banking landscape to acc ommodate Gavi?s
business requirements, minimise operational complexity and maximise
flexibility;
3.2.4. Establish strict segregation of duties and controls to minimise operational
risks within treasury activities involving financial transactions;
3.3. Based on these p rimary objectives, detailed objectives are further formulated in
individual treasury policies. A complete treasury governance framework is
structured in three layers:
3.3.1. This Policy provides guiding principles and delegates responsibility to
different organis ational units to execute the treasury mandate;

Board -2021 -Mtg -4-Doc 01d -Annex G
Gavi Alliance
Treasury Risk Management Policy
Version 1.0




DOCUMENT ADMINISTRATION


VERSION
NUMBER APPROVAL PROCESS DATE
1.0 Prepared by: Treasury Team

Reviewed by:
Director, Finance & Chief Accounting
Officer
4 August 2021
Reviewed by:
Treasury Risk Management
Committee
30 September 2021
Reviewed and recommended by:
Gavi Audit and Finance Committee 19 October 2021
Approv ed by:
Gavi Alliance Board
2 December 2021
Effective from: 2 December 2021
Next review: As and when required





Board -2021 -Mtg -4-Doc 01d -Annex G 2
Gavi Alliance
Treasury Risk Management Policy
1. Purpose
1.1. The purpose of the Treasury Risk Management Policy (the ?Policy? ) is to define
how the Treasury team manages financial risks to which the Gavi is exposed,
namely, financial counterparty credit risk, sovereign counterparty credit risk and
foreign exchange (FX) risks.
1.2. Financial risk management is defined as the process of identification,
measurement, manag ement and reporting of financial risks. The Policy defines the
objectives, guiding statements and responsibilities with regards to counterparty
credit and FX risks.
2. Objectives
2.1. The objectives of the Policy are to:
2.1.1. Provide maximum predictability of funding when Gavi engages in
programmes. Gavi shall apply currency hedging to reduce its exposure to
potential decreases in the value of future net cash inflows due to exchange
rate fluctuations ;
2.1.2. Identify, measure and mana ge counterparty credit risks with approved
financial counterparties against approved counterparty credit limits to
safeguard the value of financial assets and minimise potential losses from
counterparty defaults ; and
2.1.3. Minimise Gavi?s risk to sovereign count erparties by implementing effective
risk mitigation mechanisms, including but not limiting to financial
guarantees or letter of credit.
3. Risk Assessment
3.1. FX risk. Gavi receives contributions and other inflows in a variety of currencies.
Gavi?s programme expe nditures for vaccine purchases and cash grants are mainly
incurred in USD. Business plan expenditures for staff costs, office facilities and
other services are incurred mainly in USD and CHF. Because FX rates fluctuate,
the value in a given currency of fut ure cash flows denominated in another currency
will vary over time, resulting in increases or decreases in th e value of these future
cash flows . These variations may be substantial, especially in periods of high FX
volatility.
3.2. Permitted hedging instruments (as defined in Section 9.1 ) enable reduction of the
risk of decreases in the value of future net cash inflows. This provides greater
certainty of the value of future cash flows in the currency to which they will
ultimat ely be converted.
3.3. Financial counterparty credit risk . This is the risk that a financial counterparty
will fail to meet its obligations. It applies whenever Gavi is exposed to a default by
financial counterparties. Financial transactions at Gavi include cas h on bank
accounts, term deposits, money market investments, financial guarantees, FX
derivatives and collateral payments. The credit exposure per financial counterparty
is measured by aggregating the following items:
? Cash balances on bank accounts
? Short -term investments
? Bank guarantees in favour of Gavi