GAVI Alli ance Audit and Finance Committee Meeting, 28 July 2010 FINAL MINUTES
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GAVI Alliance Audit and Finance Committee M eeting
28 July 2010
Geneva, Switzerland and Washington, DC, USA

FINAL MINUTES

Finding a quorum of members present 1, the meeting commenced at 1 6.30 Geneva
time on 28 July 20 10 . The Committee revi ewed the minutes from its meeting on 25
May 2010 (Doc #1 in the committee pack) .

DECISION
The GAVI Alliance Audit and Finance Committee:
Approved the minutes of its meeting on 25 Ma y 2010

1 Executive Session with the External Auditor
The Committee met in camera, inviting Pierre -Henri Pingeon and Karina Vartanova
from KPMG , GAVI?s external auditor, to summarise the results of its audit
procedures with respect to the 2009 consolidated financial statements (Doc #4) .

2 2009 GAVI Alliance Consolidated Financial Statements
Tony Dutson, Senior Director, Finance & Chief Accounting Officer and Louis
Mkanganwi, Director of Financial Reporting , reviewed the draft 2009 consolidated
accounts of the GAVI Alliance (Doc #2) . Discussion followed:

? This is the first year tha t GAVI?s financials were consolidated within the Swiss
entity. 2 The Secretariat reported a smooth process and an excellent working
relationship with the external auditor.

? The Committee discussed GAVI?s accounting policies and various
components of the fi nancials including Promises to G ive from the IFFIm
Company, the AMC evaluation model, the transfer of assets and liabilities
from the GAVI Campaign (formerly the GAVI Fund), and residual matters of
changing the consolidating entity to the GAVI Alliance. The Committee also
discussed FAS 157 accounting and valuation of certain investments. The
Chair requested the Secretariat to clarify a number of items in the footnotes in
due course.

? The Committee considered the recommendation of the consolidated financia l
statements only. However, some committee members requested to receive
the Swiss entity standalone financials for information.


1 Atten dees are liste d in Attachment A 2 Previously, the GAVI Fund in the United States served as the consolidating entity and its 2008 consolidated
financial statements were tabled for information (Doc #3)

GAVI Alliance Investment Committee Meeting , 26 July 20 10 FINAL MINUTES

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GAVI Alliance Investment Committee Meeting
26 July 20 10
Teleconference

FINAL MINUTES

Finding a quorum of members present 1, the meeting commenced at 12.06
Washington time on 26 July 20 10.

1 June 2010 Portfolio Review
Jeanne Shen , Senior Director of Inv estments , reviewed market activity including
recent volatility, portfolio activity and returns, sector performance, benchmarks, and
asset allocation. Discussion followed:
? The Secretariat continues to pursue opportunities for diversification in the
portfol io and will present further options in due course.

? Global concerns include the e xpiration of government asset purchase and
stimulus programmes to support national economies. To support these
programmes , many industrialised country governments issued larg e amounts
of debt and n ow face a huge rollover of that debt . Another concern includes
government austerity measures that limit public spending during a period
when the global economic recovery is uncertain .

? There is also uncertainty surrounding the timi ng of cash flows for GAVI in a
resource constrained environment . T he success of the ongoing replenishment
process will likely have a n impact on the portfolio .

? With regard to the new programme funding policy, t he Secretariat confirmed
that when the Board c onsiders new proposals, they should have qualifying
assets on hand (cash and investments, direct contributions, IFFIm
contributions , among others ) to cover both new and existing commitments for
a two -year period.

? Monitoring the size of GAVI?s cash positio n is an area of focus for the
investment team. The Secretariat is exploring a range of cash -like
investments that are conservative but can provide better returns than money
market funds which the Secretariat predicts will have lower returns than
historic norms.

2 2009 Audit Update
Ms Shen reported that KPMG?s f ield testing has not resulted in any audit issues
related to investments . Barry Greene , Managing Director of Finance and Operations
1 Participants are listed in Attachment A.