Gavi

Gavi

Gavi

1



Board -2016 -Mtg -1-Doc 08
Report to the Board
14 -15 June 201 7

















SUBJECT: CHAIR?S REFLECTION S ON THE DAY
Agenda item: 08
No paper

1



Board -2016 -Mtg -1-Doc 09
Report to the Board
14 -15 June 201 7

















SUBJECT: CHAIR?S OVERVIEW
Agenda item: 09
No paper

1



Board -2017 -Mtg -1- Audit and Finance Committee Report

Section A: Introduction
? This report provides the Board with an overview of the activities of the Audit
and Finance Committee (AFC ) since the Board last met in December 201 6.
? The AFC met twice (9 February and 27 April) and will also be meeting on
12 June 2017 . Subjects re viewe d in February and April are noted below
under Section B and those matters to be reviewed on 12 June are noted
under Section C.
? The AFC Chair report is attached in the form of a presentation as Annex A
and the AFC recommendations to the Board are attached a s Annex B .

Section B: Subject matters reviewed
1) Audit and financial reporting
? Discussed with KPMG their 2016 Financial Statements audit strategy and
planning ;
? On track for on -time completion of financial statements; with no significant
issues identified to date;
? Received from Secretariat its annual review of Gavi?s accounting policy
documentation including proposed updates , none of which are significant .
The report also included an overview of upcoming US GAAP changes and
potential impacts on Gavi?s financi al reporting ;
? Received an update on the 2016 audit status ;
? Provided the Secretariat with suggested enhancements to Annual Financial
Report, to be incorporated into the 2016 report ;
? Received confirmation that the Gavi Campaign was dissolved in December
201 6.
2) Financial Update
? Reviewed a financial update covering 2016 actuals and an outlook for 2017 .
In addition, the Secretariat confirmed that to the best of its knowledge the
2016 -2020 forecast completed in December 2016 is still valid ;
SUBJECT : AUDIT AND FINANCE COMMITTEE CHAIR REPORT
Category: For Information
Report to the Board
14 -15 June 2017

1



Board -2017 -Mtg -1-Evaluation Advisory Committee Report

Section A: Introduction
? This report provides the Board with an overview of the activities of the
Evaluation Advisory Committee ( EAC ) since the Board last met in
December 201 6.
? As a follow -on to the October 2016 EAC meeting, there was a n EAC
teleconference in February 2017 to revi ew the draft Terms of Reference
(ToR s) for the second phase of the Full Country Evaluations project. The
EAC approved the ToRs and requested the Secretariat to engage with the
current FCE Consortium on the development of a proposal for the second
phase of the FCE.
? The EAC met in Geneva on the 15 -16 March 2017 where the members:
a) were updated on ongoing Gavi evaluation activities including those
related to strengthening cross -organi sation work (such as evaluation
collaborations with the Global Fund) ;
b) were updated by the Gavi Secretariat communications team on how
the evaluation work at Gavi is communicated externa lly to its various
stakeholders;
c) assessed the technical and financial proposal for the second phase
of the FCE and deferred the decision , request ing the Secretariat to
follow up with the FCE consortium to request a revised proposal ,
taking into account comments from the EAC ;
d) discussed and approved the Request for Proposal s (RFP) for the
CCEOP evaluation suggesting to include evaluation questions
regarding the market shaping component as well as to further
explore the country selection process ;
e) were presented the preliminary insights of the baseline assessment
for the Evaluation of Targeted Country Assist ance (TCA) provided
through the Partne rs? Engagement Framework (PEF) , by the
indepen dent service provider (Deloitte) ;
f) discussed and provided guidance on the T oRs for the P eer review of
Gavi?s e valuation function which aims to inform the review of the Gavi
Evaluation Policy; the review of the EAC Charter; and improve the
evaluation function within the Gavi Secretariat (and within the
broader Alliance) ; and
g) discussed and provided guidance on the criteria for prio ritisation of
Evaluation Work considering the increasing demand for evaluations
and approved the annual evaluation workplan for 2017 .

SUBJECT : EVALUATION ADVISORY COMMITTEE CHAIR REPORT
Category: For Information
Report to the Board
14 -15 June 2017

1



Board -2017 -Mtg -1-Investment Committee Report

Section A: Introduction
? This report provides the Board with an overview of the macro economic
environment and the activities of the Investment Committee since the Board
last met in December 2016 . The Investment Committee met in February
and May 2017.
? The update includes year -to -date April 2017 performance figures for the
long -term portfolio as well as the ultra -low and short duration fixed income
strategies overseen by the Investments team. Gavi uses both active a nd
passive investment managers .
? Declining unemployment and higher co nsumer spending are key signs that
the global economy continues to pick up strength in the first half of 2017.
The April World Economic Outlook report published by the IMF reported a
3.1% global growth rate in calendar year 2016. Its global growth estimat es
for 2017 and 2018 are 3.5% and 3.6% , respectively.
? While political challenges are still a factor, the Macron victory in France
sealed the outcome of a series of key electoral challenges that could have
negatively impacted market momentum and global economic growth .
Markets have shifted their focus back to corporate earning s and key
economic statistics. The current outlook for economic growth is supportive
for global equities and much is debatably priced into current valuations.
Equity performance continues to vary by region. For example, in contrast t o
2016 , European equities this year are outpacing US equities , particularly in
USD terms.
? With growing confidence in the US economy, the US Federal Reserve has
signalled another near term rate increase, likely at its June meeting. If
enacted it would be the third in a 6 -month period , and only the fourth rate
increase since the 2008 financial crisis. In addition, the Fed may also start
to reduce its balance sheet by re -investing only a portion of maturing assets
(US Treasury and mortgage -backed sec uritie s). The European Central
Bank is expected to follow suit but it is unlikely it will take similar action
before 2018.
? Another defining feature of 2017 is the weakness of the US Dollar relative
to other major currencies. The euro has been particularly strong against the
US dollar in 2017.
SUBJECT : INVESTMENT COMMITTEE CHAIR REPORT
Category: For Information
Report to the Board
14 -15 June 2017

1



Board -2017 -Mtg -1-IFFIm
Report to the Gavi Board
14 -15 June


Section A: Overview
Executive Summary
1.1 This report provides the Board with an overview of the activities of the
International Finance Facility for Immunisation (IFFIm) since the Board last
met in December 2016.
1.2 IFFIm continues to be a valuable tool for Gavi having disbursed over
US$ 2.5 billion since it was implemented in 2006 and its financial position
remains strong.
1.3 Pledge agreements for Australia, France, and the Netherlands have been
finalised in 2017. These pledge agreements now bring the total of IFFIm
commitments to US$ 6.5 billion .
1.4 Significant progress has been made in developing potential additi onal roles
for IFFIm to support Gavi?s strategic goals.
1.5 A draft presentation has been shared with donors in advance of an IFFIm
Donor s? meeting to be held on 12 June in Geneva . The presentation will be
the basis of discussion with donors, the IFFIm Board, the Gavi Secretariat
and the World Bank as to which r ole (s) to prioritise.
1.6 The proposed roles are :
(a) Vaccine scale up to utilise IFF Im?s flexible funding capabilities to
support Gavi?s VIS.
(b) Financial commitments for market shaping to secure guarantees
to support vaccine procurement for market shaping.
(c) Contingent pledges for outbreak response to be on stand -by and
activated upon occurrence of a pre -determined event, such as a
disease outbreak to enable rapid deployment of funds.
(d) Col d Chain Equipment Optimisation Platform (CCEOP) support
to provide innovative financing support for CCEOP through themed
IFFIm bonds or helping unlock other sources of capital.
1.7 Socially responsible investing (SRI) continues to grow and SRI investors
are se eking investments that will not only that provide attractive returns, but
SUBJECT : IFFIm CHAIR REPORT
Category: For Information

1



Board -2017 -Mtg -1-Programme and Policy Committee Report

Section A: Introduction
? This report provides the Board with an overview of the activities of the
Programme and Policy Committee ( PPC ) since the Board last met in
December 201 6.
? The PPC met in Geneva on 11 -12 May 2017. During the two -day PPC
meeting, the Committee discussed a number of important topics for the
Alli ance and agreed on recommendations which are being put forward to
the Board at its June meeting for consideration.
? The PPC Chair report is attached in the form of a presentation as Annex A
and the PPC recommendations to the Board are attached as Annex B.
Annexes
Annex A: PPC Chair report
Annex B: PPC recommendations to Gavi Alliance Board
SUBJECT : PROGRAMME AND POLICY COMMITTEE CHAIR REPORT
Category: For Information
Report to the Board
14 -15 June 2017
www.gavi.orgPROGRAMME AND POLICY
COMMITTEE CHAIR REPORT
Reach every childBOARD MEETING
Richard Sezibera
14 - 15 June 2017, Geneva, Switzerland
Annex A

Annex A ? Updated Risk Appetite Statement

Introduction

Every orga nisation needs to take risk to achieve their objectives and sometimes the greatest risk is
inaction . Effective risk management optimises potential outcomes by balancing risk versus reward and
the cost of mitigation versus the potential benefit this brings . Gavi?s Risk Appe tite Statement defines on
a broad level the amount of risk the Alliance is willing to take, accept , or tolerate to achieve its goals.
Risk appetite is defined at the mission, organisation and strategy level on a five -point scale between
low and high. A high risk appetite represents a willingness to be exposed to a high likelihood and / or
potential impact of a risk . Having a high appetit e for a risk does not mean actual occurrence of the risk
is desirable or the event should be tolerated once it actually occurs .

The purpose of this Board -approved statement is to align stakeholders across the Alliance and guide
decision -makers in taking the right amount of the right type of risks to deliver on Gavi?s mission . It aims
to encourage staff and stakeholders to be risk -aware and to feel comfortable to take agreed and
calculated risks whe re appropriate , to recognis e and plan for the possibility of failure, and to learn from
both positive and negative results.

Risk appetite at the mission and organisation level

The Vaccine Alliance embraces the need to take risk given its ambitious mission to rapidly improve
coverage and equity of immunisation and build sustainable systems in the world?s poorest countries ,
and given its operating model as an Alliance of many partners with a lean Secretariat without in -country
presence. The Alliance is in gen eral willing to accept risk s in pursuing its goals , w hile ensuring effective
processes and systems are in place to pro -actively identify, manage and monitor those risks guided by
the Board -approved risk appetite .

The Alliance has overall a low er appetite for organisational risks that could impede its ability to deliver
on the mission. It seeks to maintain a low level of risk related to the quality and robustness of Secretariat
processes, systems and management . Similarly, the appetite for risks associated with the processes,
systems and management of Alliance partners is moderately low, while recognising that the Gavi
Secretariat has less ability to directly influence this. The Alliance recognises that it is exp osed to higher
risks associated with weak management and controls at country level and has a moderately high
appetite for the risk that these weaknesses may hinder achievement of its goals , working actively to
reduce risk exposure over time . However, given its obligation to be an effective steward of donors?
resources , Gavi has a low appetite for risks related to fiduciary oversight and control while recognising
the risks inherent to its model of channelling support through country systems where these are
sufficiently robust . Gavi?s reputation is critical to its ability to deliver on the mission, and the Alliance
therefore has a low appetite for risks affecting its brand and confidence of its stakeholders .

1



Board -2017 -Mtg -1-Doc 11

Section A: Introduction
? Gavi?s Risk & Assurance R eport 1, approved by the Board in December
2016 , prioritised 15 top risks . It provided an initial view of Gavi?s inherent
exposure to each of those risks and primary mitigation strategies . T his
paper provides a high -level update on major changes in Gavi?s risk
profile since then . A new comprehensive Risk & Assurance Report will be
prepared for the November 2017 Board meeting .
? This paper also presents an updated Risk Appetite Statement (Annex A)
for approval by the Board . ?Risk appetite ? defines on a broad level the
amount of risk the Alliance is willing to accept to achieve its mission and
goals . The Audit and Finance Committee (AFC) has reviewed the updated
statement and recommended it for approval. Guidance from both the AFC
an d the Programme and Policy Committee (PPC) is summarised in this
paper and has been incorporated in the final version .
? This paper also provides an update on progress in strengthening risk
management across the Alliance .
Section B: Content
Changes in Gavi?s risk profile since Decemb er
1.1 Gavi?s last Risk & Assurance report prioritised 15 top risks (4 very high and
11 high risks) and 15 medium risks (Annex B) . Risks are dynamic in nature
(due to changing risk factors and progress in mitigation) and may emerge,
increase, decrease, or disappear. The Secretariat closely monitors these
risks for changes in exposure. No substantial new risks have emerg ed since
December 2016 . However , the following top and medium risks have be en
impacted by recent trends and events:
(a) HI GHER: Vaccine confidence (risk f 2) ? Th is risk has increased, with
growth in anti -vaccine campaigning most notably in the United States,
the European Union and India. Campaigners are explicitly seeking to
target other countries in Europe and elsewhere. While policymakers

1 http://www.gavi.org/about/governance/gavi -board/minutes/2016/7 -dec/minutes/11 --- risk -
management -update/ 2 Refers to numbering of risks in Risk & Assurance report (see Annex B).
SUBJECT : REVIEW OF R ISK APPETITE STATEMENT AND RISK
MANAGEMENT UPDATE
Agenda item: 11
Category: For Decision
Report to the Board
14 -15 June 2017