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2023-07-31-accounts

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

Financial Statements IVCC

For the Year Ended 31 July 2023

Registered Charity Number: 1128437

Company No. 06719882

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Company Registration Number: 06719882
Registered Charity Number: 1128437
Registered Office: c/o Liverpool School of Tropical Medicine
Pembroke Place
Liverpool
L3 5QA
Trustees: S W Charles (Chair)
J Schofield (Vice Chair)
E Chizema
A Court
P Housset
J E Lefroy
K Malm
S Russell (LSTM representative)
P Welkhoff
R Nishimoto
Honorary Lifetime President Sir Mark Moody-Stuart
Secretary: David Worrall
Bankers: Royal Bank of Scotland Plc
1, Dale Street
Liverpool
L2 2PP
Solicitors: Brabners LLP
Horton House
Exchange Flags
Liverpool
L2 3YL
External Auditors: Grant Thornton UK LLP
Statutory Auditor
Chartered Accountants
Royal Liver Building
Liverpool
L3 1PS
Internal Auditors: RSM Risk Assurance Services LLP
Internal Auditor
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Index to the Financial Statements

Report of the Trustees 1 – 12
Independent Auditor’s Report 13 – 16
Principal Accounting Policies 17 – 20
Statement of Financial Activities 21
Balance Sheet 22
Cash Flow Statement 23
Notes to the Financial Statements 24 – 29

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Report of the Trustees

The trustees, who are also the directors of the charitable company for the purposes of the Companies Act 2006, present their report together with the financial statements for the year ended 31 July 2023.

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law, and throughout this report are collectively referred to as the trustees.

The Trustees serving during the year and since the year end were as follows:

The Rt. Hon. Sir Stephen O’Brien KBE (Chair) (resigned 31 December 2022)

S W Charles (elected as Chair 7 December 2022)

E Chizema A Court P Housset (extended until December 2023) J E Lefroy (resigned 16 February 2023) Q Liu (resigned 31 December 2022) K Malm M Moody-Stuart J Schofield (Vice Chair) P Welkhoff (appointed 22 March 2023) S Russell (appointed 22 March 2023) R Nishimoto (appointed 14 June 2023)

For more information: https://www.ivcc.com/board-of-trustees/.

The Board Chair, Sherwin Charles would like to thank his fellow Trustees for their wise and forward-thinking oversight of IVCC during the year and express particular gratitude to recently retired Chair Sir Stephen O’Brien whose leadership and dedication to IVCC over a full nine-year term as Trustee or Chair has been outstanding. Professor Qiyong Liu reached the end of his stipulated terms of office and stood down from the Board in December 2022. Dr Pascal Housset has graciously accepted a term extension until December 2023 to manage the transition with his replacement. On behalf of the Trustees, the Chair expresses appreciation for their extraordinary dedication, support and counsel over the years. Following the retirement of CEO Nick Hamon in December 2022, the IVCC Board was delighted to appoint Justin McBeath as the new CEO of IVCC in February 2023. Justin brings with him more than 25 years of experience working in various international leadership positions related to the development, registration and marketing of mosquito and other pest management solutions. For the past twelve years, Justin has led the malaria vector control strategy for Bayer Environmental Science (now Envu) and has an established strong network across the global malaria community .

Structure, Governance and Management

IVCC is a not-for-profit company limited by guarantee with charitable status in the UK.

The organisation is overseen by a Board of Trustees with fiduciary responsibilities and financial and audit oversight. External Scientific Advisory committees (ESACs) advise IVCC Leadership on specific areas of technical expertise in relation to the direction and strategy related to product development. The IVCC Leadership Team is responsible for strategic and day to day management of the programme, high level project monitoring and stakeholder liaison. Newly appointed CEO, Justin McBeath, has delegated day-today management responsibility of the charitable company on behalf of the Trustees. In addition to the UK, IVCC has staff located in several countries, including the USA, France, and Ghana.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Group Structure

The Liverpool School of Tropical Medicine (LSTM) is the parent company of IVCC by virtue of it being the sole member of the company limited by guarantee.

Statement by the Trustees on performance of their statutory duties in accordance with s172(1) of the Companies Act 2006

The Board of Trustees of IVCC consider, both individually and collectively, that they have acted in ways that they believe in good faith to be most likely to promote the success of the company for the benefits of its members as a whole (having regard to the stakeholders and other matters set out in s172(1) of the act) in the decisions they made during the year ended 31 July 2023.

The IVCC Board of Trustees comprises non-executive members, but the secretary is a staff member. There are a minimum of 3 full board meetings each year.

Trustees are not remunerated, and they join the IVCC Board to contribute their skill and expertise to help IVCC to achieve its vision and mission, as detailed elsewhere in this report. The Board of Trustees receive regular external training on the duties of trustees of a charity. There is also a code of conduct and Trustees are required to declare any conflicts of interest at every meeting.

The Board’s key stakeholders have been identified as the following:

The Board engages with each of these groups throughout the year through face-to-face meetings, surveys, seminars and written correspondence to promote IVCC’s mission.

Key decisions made by the Board this year include:

Employee engagement statement

Board engagement with employees is largely through the IVCC Leadership Team, and involvement of staff in particular focus task groups and projects.

Employees make presentations to Board members, where relevant, on product development, market shaping and organisational activities during Board of Trustee meetings, alongside discussions on finance and governance matters.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Statement on business relationships

The IVCC Board of Trustees and its committees comprise people with a variety of skills and backgrounds. Through their networks, Board members foster relationships with relevant stakeholders, that have an impact on delivering on the mission of IVCC.

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, industry and governments. IVCC continuously assesses its priorities related to its major funding partners, and the Board engages on this through the regular Board meetings.

Carbon reporting

IVCC occupies space provided by LSTM, its direct holding company. LSTM carbon reporting is included in the LSTM Group Trustees’ Report.

Organogram & Organisation of IVCC

The organisation structure as of July 2023 is reflected below.

Human Resources, IT, Finance and certain other grants management functions are accessed from the parent organisation LSTM via a service level agreement. This provides IVCC with open access to these support services in a cost-effective manner.

Figure 1: IVCC org chart

Pay Policy for Staff

The pay of staff consists of a basic pay element and a performance related pay element (discretionary pay element). IVCC recruits professionals with specialist private-sector expertise (Pharmaceutical, Agrochemical

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

etc.) and therefore its remuneration framework needs to be competitive with the private sector to attract, incentivise and retain high quality employees.

Base salaries are benchmarked against the private sector as well as other Product Development Partnerships on a regular basis to ensure competitiveness. The framework for calculation of variable pay is based on a blend of organisational performance, individual performance and key competencies. The process for goal setting ensures that the total organisational pay-out is maintained within an acceptable range that is pre-defined by the IVCC Board of Trustees. While Management strives to define the most appropriate goals and metrics, unforeseen issues or opportunities may arise that change the feasibility or value of the proposed metrics. Management’s ability to capitalise on unforeseen opportunities and address unforeseen issues is also considered as a part of the Board’s assessment of the organisation’s performance. Should the performance of the individual, or the organisation be deemed insufficient by IVCC’s management or the Board, there will be no obligation to pay the variable component.

IVCC’s pay and performance policy was updated in April 2023 to change the eligibility criteria (especially to consider maternity/paternity and long-term leave).

The CEO’s salary and performance related pay is proposed by the IVCC Remuneration Committee following a recommendation put forward from the relevant Board Members and the annual review is undertaken by The Chairman of Trustees as agreed by the Board.

Audit Committee

IVCC benefits from shared accounting and audit arrangements with its parent institution the Liverpool School of Tropical Medicine. External audit work is carried out by Grant Thornton UK LLP. All internal audit work is performed by RSM Risk Assurance Services LLP, whose remit is to provide independent and objective assurance to add value and improve the organisation’s operations. This is carried out through the evaluation and improvement of risk management, governance and control processes.

LSTM Audit Committee acts as the review body for both internal and external audit oversight on all recommendations made. A member of the IVCC Board sits on the Audit Committee and reports between both organisations on any matters that should be brought to the Board’s attention for further discussion.

Governing Document and Objectives of the Charitable Company

The organisation is governed by the Memorandum and Articles of Association which were laid down at the incorporation of the company on 9 October 2008 and amended by special resolutions on 6 February 2009 and 19 July 2018.

The objectives of the charity are:

The preservation and protection of good health and the relief of sickness by alleviating and preventing the spread of any type of tropical disease which is now or may hereafter become known in any part of the world where such disease either manifests itself or has effects by any means, and in particular but without prejudice to the generality of the foregoing by:

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Appointment of Trustees

Any new appointments to the Board are a matter for consideration of the Board as a whole. The IVCC Board of Trustees has a Nominations Committee comprising three members that is responsible for the selection and nomination of any new member for the Board’s consideration. The Board of Trustees consists of at least seven and not more than fifteen individuals.

Members of the Board of Trustees are appointed for a term of office of three years. One third of the Board must retire at each AGM based on time in office. Retiring trustees shall be eligible for re-election subject to paragraph 3.7.1 of the Articles.

Trustee Induction and Training

New trustees undergo orientation training to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and to inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Strategic Report

As a registered charity, the strategic report is contained in the following sections:

Risk Management

The Trustees have a risk management strategy in place which identifies the major first level risks to which the charitable company is exposed. The Trustees regularly review the systems established to mitigate those risks.

The Board has delegated certain monitoring and control responsibilities to the parent organisation, LSTM. LSTM is responsible for implementing IVCC’s Risk Management framework, which includes the Corporate Strategic Risk Register, the Risk Management Policy, and Risk Level KPIs. IVCC’s Risk Register contains risks to all activities at a global, enterprise-level.

Risk assessments are carried out by management. The outcomes of the assessments are included in the Risk Register. The Leadership Team identifies new risks and monitors existing risks.

The risk assessment register is summarised and reviewed by the Leadership Team, LSTM Audit Committee and Board of Trustees at least annually.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Going Concern

IVCC has a strong balance sheet including significant cash and investment holdings. As noted in the Financial Review section, IVCC was awarded a second bridging grant (titled: IVCC Grant 2023) of $21m covering the period 1 July 2023 to 31 August 2024. The foundation award of $21m, which is subject to maximum drawdown of $18m by calendar year, is set at a level that presumes a degree of match funding to maintain the portfolio at its current level. To ensure operational continuity at a critical and resource intensive stage in the development of key projects, the IVCC Board granted approval for the utilisation of up to £1.7m of IVCC reserves in the year 2023-24. IVCC has undertaken a scenario-based prioritisation assessment outlining the actions to be undertaken in the event other sources of income fall below expectations and this was included by way of an appendix to the proposal submission under which the IVCC Grant 2023 was awarded.

The organisation benefits hugely from the synergistic relationship with LSTM in terms of high-quality shared services and scientific resources and knowledge.

In assessing going concern management analysed the 2023/24 budget, extrapolated to end of November 2024 and produced related cashflow forecasts. On the basis of this the Board of Trustees consider that it continues to be appropriate to account for IVCC as a going concern until at least end of November 2024.

Financial Risk Management Objectives and Policies

It is the charity’s policy to minimise the risk relating to foreign currency received from overseas funders by employing the use of forward contracts where appropriate.

Short term surplus cash held is invested in high interest-bearing accounts as part of an overall cash pooling arrangement with the parent company to maximise potential returns and minimise risk. Medium to longer term cash is invested in low-risk company and government bonds.

The shared LSTM & IVCC Finance and Investment Committee of LSTM acts as a review body for all finance and investment related activities. A member of the IVCC Board sits on the committee and reports between both organisations on any matters that should be brought to the Board’s attention for further discussion.

Objectives and Activities for Public Benefit

IVCC facilitates the development of a complete vector control portfolio of tools (toolbox) supporting malaria and other vector borne disease eradication. IVCC supports product development as well as market uptake to ensure maximum impact. The Board confirms it has referred to the guidance contained in the Charity Commission’s general guidance when reviewing the Charity’s aims and objectives in planning future activities for the year.

IVCC is a Product Development Partnership (PDP) and as such has an essential role within the malaria eradication agenda, and more broadly, in the control of many vector-borne diseases. IVCC will:

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Achievements and Performance

IVCC was established in November 2005 to facilitate the development of improved public health pesticides and formulations and provide information, tools and diagnostics to enable the more effective use of malaria and dengue control measures.

Since then, through a mechanism of open calls, IVCC has been remarkably successful at engaging industry and delivering products: K-Othrine® Polyzone (IRS), Actellic® 300CS (IRS), Interceptor® G2 (dual AI ITN), SumiShield® 50WG (IRS), Fludora® Fusion (IRS) and VECTRON™ T500 (IRS).

Figure 2: Diagram summarizing IVCC's Strategy

Product development portfolio

IVCC collaborates with industry and scientific leaders to develop a complete and sustainable toolbox of solutions for vector control. This toolbox is designed to provide vector-borne disease control programs (particularly malaria) with the products to effectively and efficiently prevent disease transmission . Insecticide resistance is a particular driver of the need for new tools. Ultimately it is expected that this toolbox will contribute to malaria eradication.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

the benefit of Interceptor® G2 over standard and PBO nets (https://www.who.int/news/item/14-032023-who-publishes-recommendations-on-two-new-types-of-insecticide-treated-nets).

ZERO by 40

As part of the IVCC strategic review currently underway, we have been considering the future role and purpose of ZERO by 40 and how this initiative will align with IVCC’s refreshed strategic goals and objectives. To that end, a comprehensive consultation process was undertaken with ZERO by 40 partners in early 2023 to determine their views and opinions on the future role and purpose of ZERO by 40. The feedback from the ZERO by 40 partners resulted in a recommendation that ZERO by 40 should be dissolved and the communications and advocacy arm of the initiative (known as ‘One Voice’) be replaced by a refreshed IVCC-led communications and advocacy strategy that is aligned behind and supporting the new IVCC 5-year plan. This recommendation, approved by the Board of Trustees in June, was communicated and unanimously accepted by the ZERO by 40 partners in July 2023.

New Net Project (NNP)

NNP concluded with very positive comments from Unitaid (see extract below):

“Unitaid views the NNP as a highly successful project, resulting in an impactful WHO recommendation, in the context of a strong foundation for scale-up of dual-AI nets. Though the recommendation for the Royal Guard® net was less unequivocal than that for Interceptor® G2, the trials and studies, as well as associated modelling work, reflected the excellent scientific method and implementation practice that was employed throughout the study. IVCC is to be commended for having demonstrated a very high level of technical competency, scientific knowledge, and capacity to manage complex consortia of implementers across a multitude of malaria endemic countries. It is also notable, that the IVCC team worked well with Unitaid’s project team as well as the Project Steering Committee in providing up to date, comprehensive and open communication on both successes and challenges. Unitaid regards this as an important factor in the project’s success”.

Following this success, IVCC has applied to a new Unitaid call for proposal issued in April 2023: ‘Catalysing adoption of an expanded vector control toolbox to fight malaria’. The proposal is under review. If successful, it will allow IVCC and partners to improve access to health products of public health importance in low and middle-income countries.

Indo-Pacific and other initiatives

The Indo-Pacific Initiative (IPI) started with the publication of key landscaping papers to map the technical gaps and vector control regulatory processes throughout the Indo-Pacific region. Two projects, NATNAT and BITE are ongoing: establishing new testing capacity in Papua New Guinea and by testing IVM strategies in Cambodia and Indonesia. This project is also an opportunity to update the Imperial College malaria transmission model for Southeast Asia. For more information: https://www.ivcc.com/vector-

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

control/indopacificinitiative/. This platform will conclude in December 2023. IVCC has applied to DFAT for a follow up platform.

Testing sites GLP accreditation

The Good Laboratory Practice (GLP) accredited field and laboratory trial capabilities and capacity building initiative is expected to conclude in Q4 2022 with the full certification of 7 sites throughout Africa.

Vector Expedited Review Voucher (VERV)

VERV is an initiative to incentivise industry in developing new vector control products for challenged markets. VERV is now signed in US law (https://www.ivcc.com/ivcc-and-duke-university-welcome-majornew-financial-incentive-for-vector-control-product-innovation/) and the EPA is underway with implementing a process to support by the end of December 2023.

Goals, Future Plans and Developments

IVCC’s core objectives for the upcoming period are:

Financial Review

Income for the year of £33.4m was £15.2m lower than in the previous year, with resources expended of £32.2m down by £15.4m, generating a surplus of £1.2m before other recognised gains and losses. The principal factor driving the reductions in income and expenditure was that a major market shaping grant funded by Unitaid, the New Nets Project (NNP), concluded in the year, with closeout and final reporting due to be completed by the end of December 2023. Grant income from NNP was £3.1m (2022: £13.3m).

A total of £23.8m was spent on direct charitable project activities (2022: £40.96m) with a further £1.8m paid out on project activities undertaken in-house (2022: £2.2m). General support costs, including Core administration, of £6.5m (2022: £4.2m) were also incurred in the year. In accordance with FRS 102, income and expenditure transactions which arise through forward foreign exchange contracts are restated from the

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

forward rate to the year-end spot rate. This resulted in a further £2.3m being added to both income and expenditure for the year.

The Bill & Melinda Gates Foundation (the foundation) accounted for 62% of the charity’s income in the year, up from 50% in 2022. The remaining income includes: 16% FCDO, 10% UNITAID, 6% DFAT, 3% USAID and 2% SDC. Proportionate grant income by funder has been impacted by NNP and the Indo-Pacific Initiative (IPI) being in their final phase, with both due to close by the end of calendar year 2023. Excluding income in the year from NNP and IPI, the foundation provided 74% of the charity’s income in the year, compared to 76% in 2022.

It is forecast that for 2023/24 income from charitable activities would reduce from £33.1m (Actual: 2022/23) to £26.3m (Budget: 2023/24), a contraction of 21%. The reduction in the income forecast reflects the conclusion of the NNP and IPI projects and includes assumptions in respect of the level of core grant renewals based on available information.

IVCC’s last medium-term core grant with the foundation concluded in December 2022. An overlapping 9- month bridge grant (October 2022 – June 2023) was awarded in September 2022 enabling IVCC to undertake a strategic review. The timelines for the review were revisited following the change in IVCC leadership that led to the appointment of Justin McBeath as IVCC CEO in February 2023. A second 14month bridge grant of $21m (July 2023 – August 2024) was awarded in July 2023, and the 9-month grant was awarded a no cost extension to September 2023.

FCDO awarded IVCC £7.9m of core funding during the year. The Memorandum of Understanding remains active, with a current end date of March 2024.

During the year, IVCC’s Cooperative Agreement with USAID concluded in line with the contractual end date of 31 December 2022. In 2023/24, USAID launched a Notice of Funding Opportunity. IVCC submitted a proposal and was awarded a new 5-year Cooperative Agreement commencing 1 October 2023, associated with a budget ceiling of $10m against which $0.5m has been obligated to date.

The Department of Foreign Affairs and Trade (DFAT), a department of the Australian Government, launched a competitive Call for Proposals in 2023/24. IVCC responded with a proposal submission that, if successful would enable IVCC to undertake follow-on activities under the Indo-Pacific Initiative for a further 5-year term. The 2023/24 annual budget excluded the potential income and project dependent expenditure associated with a second DFAT award as the outcome is subject to confirmation.

In April 2023, Unitaid launched a competitive Call for Proposals for a new market shaping intervention, an Africa regional initiative aimed at building and refining effective delivery strategies for new vector control tools to catalyse adoption and address emerging threats (referred to as ARISE). IVCC assembled a consortium of partners and submitted a joint proposal in August 2023. The 2023/24 annual budget does not include the potential income and expenditure associated with this project, as the outcome is unconfirmed.

Grant Making Policy

IVCC has established its grant making process to achieve its objects for the public benefit. The charity invites proposals from both the public and private sectors following the establishment of target product profiles for different types of intervention and new insecticide active ingredients as well as the furtherance of information systems and tools. All outline proposals are reviewed by an External Scientific Advisory Committee (ESAC) in terms of portfolio fit and likely success. Following a successful initial review, a more detailed application is submitted to the ESAC for a full scientific and budgetary review before proceeding to full implementation.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

Reserves Policy

IVCC aligns with the group policy of ensuring that unrestricted reserves represent a minimum of 6 months' pay expenditure. Resources are managed and committed within a framework of financial planning that ensures it has both sufficient reserves and liquid resources to fulfil its contractual commitments.

No contract is entered into unless it can be resourced, including staffing, partner contracts and all contracts in the supply chain.

Trustees' Responsibilities Statement

The trustees (who are also directors of IVCC for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including ‘FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees confirm that:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

The auditor, Grant Thornton UK LLP, offer themselves for reappointment in accordance with section 485 of the Companies Act 2006, subject to the results of a tender process to be undertaken.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the year ended 31 July 2023

The trustee’s sign off relates to the strategic report as well as the responsibilities per the regulations.

ON BEHALF OF THE BOARD

Sherwin Charles Chairman

30/11/2023

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

Independent Auditor’s Report to the Members of IVCC

Opinion

We have audited the financial statements of IVCC (the ‘charitable company’) for the year ended 31 July 2023, which comprise the Statement of Financial Activities (incorporating an Income and Expenditure account), the Balance sheet, the Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements section’ of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charitable company’s business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621 IVCC

Financial statements for the year ended 31 July 2023

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustee’s annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included in the Report of the Trustees.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621 IVCC

Financial statements for the year ended 31 July 2023

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on pages 11 to 12 , the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We determined that the following laws and regulations are the most significant which are directly relevant to specific assertions in the financial statements:

15

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial statements for the year ended 31 July 2023

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Gareth Hitchmough BSc FCA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Liverpool

30/11/2023

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DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Principal Accounting Policies

Legal Status of the Charitable Company

IVCC is a registered charity and a company limited by guarantee incorporated in England and Wales and has no share capital. In the event of IVCC being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The registered office of IVCC is Liverpool School of Tropical Medicine, Pembroke Place, Liverpool, Merseyside, L3 5QA.

Basis of Preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. IVCC is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of derivative financial instruments and investments).

The financial statements are presented in Sterling (£).

Going Concern

IVCC has a strong balance sheet including significant cash and investment holdings. As noted in the Financial Review section, IVCC was awarded a second bridging grant (titled: IVCC Grant 2023) of $21m covering the period 1 July 2023 to 31 August 2024. The foundation award of $21m, which is subject to maximum drawdown of $18m by calendar year, is set at a level that presumes a degree of match funding to maintain the portfolio at its current level. To ensure operational continuity at a critical and resource intensive stage in the development of key projects, the IVCC Board granted approval for the utilisation of up to £1.7m of IVCC reserves in the year 2023-24. IVCC has undertaken a scenario-based prioritisation assessment outlining the actions to be undertaken in the event other sources of income fall below expectations and this was included by way of an appendix to the proposal submission under which the IVCC Grant 2023 was awarded.

The organisation benefits hugely from the synergistic relationship with LSTM in terms of high-quality shared services and scientific resources and knowledge.

In assessing going concern management analysed the 2023/24 budget, extrapolated to end of November 2024 and produced related cashflow forecasts. On the basis of this the Board of Trustees consider that it continues to be appropriate to account for IVCC as a going concern until at least end of November 2024.

Significant Judgements and Estimates

Preparation of the Financial Statements requires management to make significant judgements and estimates. The items in the Financial Statements where these judgements and estimates have been made include :

Judgements

Deferred balances : due to the nature of research grants, whereby in the majority of cases, projects span over several years, judgement is exercised in the decision over deferral of balances to ensure income and expenditure are accounted for in the appropriate and matching time period and also at the point performance conditions have been met.

17

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Estimates

Financial Instruments : all derivatives are measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. Where the market for a financial instrument is not active, fair value is established using a valuation technique. These valuation techniques involve a degree of estimation, the extent of which depends on the instrument’s complexity and the availability of market based data.

Statement of Principal Accounting Policies

Revenue Recognition

Income from contracts and other services rendered is credited to the Statement of Financial Activities when the goods or services are supplied to the external customers or the terms of the contract, including performance related conditions, have been satisfied. This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributions to overhead costs. Any payments received in advance of such performance are recognised on the balance sheet as liabilities.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by IVCC; this is normally upon notification of the interest paid or payable by the Bank.

Grant Funding

Grants (including research grants) from government and non-government sources are recognised in income when IVCC is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

Expenditure and Irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of resources. Grants are reflected in the balance sheet when a constructive obligation exists, notwithstanding that they may be paid in future accounting periods.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of Support Costs

Support costs are those functions that assist the work of IVCC but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and government costs which support IVCC's research activities. These costs have been allocated to expenditure on charitable activities.

Governance Costs

Governance costs comprise of all costs involving the public accountability of a charity and its compliance with regulation and good practice. These costs include statutory audit, legal costs and board of trustee meeting costs. Included within this category are costs associated with the strategic as opposed to day-to-day management of the charity's activities.

Accounting for Retirement Benefits

The two pension schemes for IVCC's staff are the Universities Superannuation Scheme (USS) and the University of Liverpool Pension Fund (ULPF). ULPF is a defined benefit scheme and USS changed from a defined benefit scheme to a hybrid scheme on 1 October 2016, providing defined benefits (for all members) as well as contribution benefits. Both schemes are externally funded and contracted out of the State Second Pension (S2P). Each fund is valued every three years by professionally qualified independent actuaries.

18

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Both the USS and ULPF are multi-employer schemes for which it is not possible to identify the assets and liabilities related to IVCC's members due to the mutual nature of the scheme and therefore these schemes are accounted for as defined contribution retirement benefit schemes. A liability is recorded within the sponsoring employer LSTM, for the contractual commitment to fund past deficits within the USS.

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the Charity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions in defined contribution pension plans are recognised as an expense in the Statement of Financial Activities in the periods during which services are rendered by employees.

The assets of the two IVCC pension schemes are held in separate trustee-administered funds. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. IVCC is therefore exposed to actuarial risks associated with other institutions' employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.

As required by Section 28 of FRS 102 "employee benefits", IVCC therefore accounts for the schemes as if they were a wholly defined contribution scheme. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the schemes.

Employment Benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to IVCC. Any unused benefits are accrued and measured as the additional amount IVCC expects to pay as a result of the unused entitlement.

Foreign Currency

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the balance sheet date. Foreign exchange differences arising on translation are recognised in the Statement of Financial Activities. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated at the exchange rate ruling at the dates the fair value was determined.

Cash and Cash Equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered, less any impairment. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors are recognised where IVCC has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

19

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Provisions

Provisions are recognised in the Financial Statements when: (a) IVCC has a present obligation (legal or constructive) as a result of a past event; (b) it is probable that an outflow of economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

Investments

Investments represent short term deposits that have a maturity in excess of 31 days and traded bonds. Traded bond investments are held as current investments and recognised in the balance sheet at market value, as they are available to be drawn down on demand.

Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in the Statement of Financial Activities. Outstanding derivatives at the reporting date are included under the appropriate category depending on the nature of the derivative. The charity holds derivative financial instruments in the form of foreign currency sterling forward currency contracts. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the surplus or deficit as appropriate, unless they are included in a hedging arrangement.

Changes in the fair value of derivatives designated as cash flow hedges, and which are effective, are recognised directly in the charity's income funds. Any ineffectiveness in the hedging relationship (being excess of cumulative change in fair value of the hedging instrument since inception of the hedge over the cumulative change in the fair value of the hedged item since inception of the hedge) is recognised in surplus or deficit.

The gain or loss recognised in other comprehensive income is reclassified to the Statement of Financial Activities when the hedge relationship ends. Hedge accounting is discontinued when the hedging instrument expires, no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised or the hedging instrument is terminated.

Taxation

VAT : Irrecoverable VAT is charged as a cost to the Statement of Financial Activities.

Taxation status : IVCC has charitable status and is exempt from corporation tax under the provision of s466 of the Income & Corporation Taxes Act 2010.

Fund Accounting

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with an allocation of overheads as defined by the donor. The funds are not therefore available for the work performed by IVCC other than that specified by the donor. Unrestricted grant funding is recognised immediately in the month of receipt and can be expended without condition on activities in furtherance of IVCC's mission.

Operating Leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

20

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Statement of Financial Activities

Income
Note
Incoming Resources
Income from charitable activities
1
Investment income
Total Incoming Resources
Resources Expended
Expenditure on charitable activities
2
Other – change in fair value of financial instrument
6
Total Resources Expended
Net gain /(loss) on investments
8
Net Incoming Resources for the Year
Other Recognised Gains / Losses
Change in fair value of hedging financial instrument
6
Net Movement in Funds
Total Funds Brought Forward at 1 August 2022
Total Funds Carried Forward at 31 July 2023
12		 Restricted
funds
£000
32,045
(275)		 Unrestricted
funds
£000
1,008
658		 Total
2023
£000
33,053
383		 Total
2022
£000
48,480
129
31,770 1,666 33,436 48,609
31,770
-		 563

(110)		 32,333
(110)		 47,474
184
31,770 453 32,223 47,658
-
(61)		 (61) 940
-
-		 1,152

-		 1,153

-		 1,891

-
-
-
1,152
9,893		 1,153
9,893		 1,891
8,002
- 11,045 11,046 9,893

The results relate wholly to continuing activities.

The Statement of Financial Activities incorporates the Income and expenditure account.

21

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Balance Sheet as at 31 July

Balance Sheet as at 31 July
Note
Current Assets
Debtors
7
Investments
8
Cash at bank and in hand
Creditors: Amounts Falling Due within One Year
9
Net Current Assets
Net Assets
Income Funds
Restricted funds
Unrestricted funds:
Income and expenditure reserve - unrestricted
12		 2023
£000
3,678
4,696
15,861		 2022
£000
362
12,890
19,531
24,235
(13,190)		 32,783
(22,890)
11,045 9,893
11,045 9,893
-
11,045		 -
9,893
11,045 9,893

Company Registered Number: 06719882

The Financial statements were approved by the Board of Trustees on and signed on its behalf by: 30/11/2023

S W Charles Chairman

22

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Cash Flow Statement

Cash Flow Statement
Net income for the reporting period
Adjustment for Non-Cash Items
Interest received
Net gain/(loss) on investments
(Increase)/decrease in debtors
(Decrease) in creditors
Net Cash Flow from Operating Activities
Taxation paid
Cash Flows from Investing Activities
Sale of investments
Interest received
Net Cash generated from Investing Activities
Change in Cash in the Year
Cash at the beginning of the year
Cash at the end of the year
Analysis of Cash and Cash Equivalents
Cash in hand		 2023
£000
1,153
(383)
25
(3,315)
(9,701)		 2022
£000
1,891
(129)
(940)
578
(15,807)
(12,221)
-
8,168
383		 (14,407)

-
7,668
129
8,551
(3,670)		 7,797
(6,610)
19,531 26,141
15,861 19,531
15,861 19,531

23

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC

Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

1 Income
Restricted
Grant income - BMGF
Grant income - CHAI
Grant income - DFAT
Grant income - FCDO
Grant income - MedAccess
Grant income - SDC
Grant income - UNITAID
Grant income - USAID
Unrestricted
2 Analysis of Expenditure on Charitable Activities
New & Repurposed AIs
Outdoor Transmission
I2I, Access & Regulatory and New Nets project
NGenIRS
Overhead income		 2023
Total
£000
19,981
139
1,863
5,242
11
694
3,124
990
32,045
2023
Total
£000
1,008
1,008
2023
Total
£000
£000
£000
£000
£000
462
14,887
4,174
158
19,681
121
6,963
1,191
73
8,348
1,193
1,933
1,146
32
4,304
- - - --
Grants to
institutions
Governance
Support costs
Activities
undertaken
directly		 2023
Total
£000
19,981
139
1,863
5,242
11
694
3,124
990		 2022
Total
£000
23,694
81
2,426
5,935
34
656
13,327
827
32,045 46,980
2023
Total
£000
1,008		 2021
Total
£000
1,500
1,008 1,500
2022
Total
£000
18,178
11,275
17,998
23
1,776
23,783
6,511
263
32,333		 47,474

The total support and governance costs (note 3) attributable to charitable activities have been apportioned pro rata based on the overall value of each activity or directly attributed where possible.

Expenditure on charitable activities was £32,333,000 (2022: £47,474,000) of which £568,000 was unrestricted (2022: £488,000) and £31,740,000 was restricted (2022: £46,986,000).

Grants to institutions reflect payments to partners and other service providers on these projects who have specific relevant knowledge to deliver the research and consulting on behalf of IVCC.

3 Support Cost Allocation

Support Cost Allocation
Core administration
Project related costs
ESAC meeting costs
Conferences & Events
Direct governance costs
Communications & Advocacy		 2023
Total
£000
£000
£000
3,832
78
3,910
2,180
45
2,225
192
4
196
11 -
11
296
6
302
-
130
130
General
support costs
Governance
function		 2022
Total
£000
1,315
2,502
131
21
278
65
6,511
263
6,774		 4,312

Basis of support costs allocation

General support costs have been allocated between Governance and Charitable Activities based on an estimated 2% of total support costs where

24

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

4 Analysis of Governance Costs

Financial statements audit
Meeting costs
Leagal Costs
Trustee travel costs
Support costs allocation (note 3)
Staff Costs
Staff costs recharged during the year were as follows:
Salaries
Social security costs
Pension costs
LSTM Consulting USA staff costs recharge to IVCC
Financial statement auditor's remuneration		 2023
£000
42		 2022
£000
33
42
27
43
9
133		 33
16
-
16
85
254 150
2023
£000
2,135
285
367
652		 2022
£000
1,538
233
355
831
3,439 2,957

5 Staff Costs

All staff are paid by fellow group undertakings and a charge equal to their employment cost is made for their services provided to the charity on a monthly basis. IVCC staff are recharged from the immediate parent company Liverpool School of Tropical Medicine and from LSTM Consulting USA also part of the LSTM Group.

The numbers of staff who received emoluments in the following ranges was:
£150,001 to £160,000
£140,001 to £150,000
£120,001 to £130,000
£110,001 to £120,000
£ 100,001 to £110,000
£ 90,001 to £100,000
£ 80,001 to £ 90,000
£ 70,001 to £ 80,000
£ 60,001 to £ 70,000
Number of FTE’s employed as at 31 July		 2023
Number
24		 2022
Number
24
2023
Number
-
-
-
2
1
1
3
3
1		 2022
Restated
Number
1
1
1
-
2
2
-
3
3
11 13

The pension contributions for these employees were £190,420 (2022: £241,617).

The CEO received remuneration in the year from the charity of £113,900 (2022: £288,212), excluding pension contributions of £20,930 (2022: £14,369). No trustees received remuneration during the year or the prior year.

The total employee remuneration of IVCC key management personnel (the CEO) including employer pension contributions was £311,758 (2022: £314,112). Nick Hamon who left on 31st December 2022, employee remuneration was £176,928 (2022 £314,112), replaced by Justin McBeath who started on 1st February 2023, employee remuneration was £134,830 (2022 £nil).

Expenses reimbursed to the trustees during the year amounted to £Nil (2022: £Nil).

25

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

6 Other

Other expenses relate to fair value movements on foreign currency contracts arising out of the requirement under FRS 102 to fair value forward foreign currency contracts at the balance sheet date. The gains or losses from fair value movements on foreign exchange all flow through the Statement of Financial Activities. The unrealised exchange gain is £110,000 (2022: £184,000 loss).

7 Debtors

Trade debtors
Accrued income on research grants
8 Investments
Investments held for return:
Listed investments
Cash on interest bearing accounts
Listed investments:
Fair value brought forward
Disposal at carrying value
Changes in fair value
Fair value carried forward
Investments by type:
Traded bonds
Cash on interest bearing deposit
Total
9 Creditors : Amounts Falling Due Within One Year
Trade creditors
Deferred income on research grants
Amounts owed to group undertakings
Accruals
Other taxation and social security
Forward currency contracts		 2023
£000
54
3,623		 2022
£000
61
301
3,678 362
2023
£000
177
4,520		 2022
£000
2,490
10,400
4,696 12,890
2023
£000
2,490
(2,289)
(25)		 2022
£000
7,432
(5,882)
940
177 2,490
2023
£000
177
4,520		 2022
£000
2,490
10,400
4,696 12,890
2023
£000
123
6,453
1,127
5,449
16
22		 2022
£000
29
10,271
594
11,863
-
133
13,190 22,890

10 Deferred Income

Deferred income represents research funds received in advance in USD from BMGF and UNITAID and in AUD from DFAT for future work that has yet to be expended.

Amount released to income earned from charitable activities
Balance as at 1 August 2022
Amount deferred in the year
Balance as at 31 July 2023		 2023
£000
10,271
(6,386)
2,568
6,453

26

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

11 Financial Instruments

The carrying value of IVCC's financial assets and liabilities are summarised by category below

Financial assets
Financial liabilities
Financial assets that are measured at amortised cost
Financial liabilities measured at fair value through surplus or deficit
Financial liabilities measured at amortised cost
Financial asset measured at fair value through surplus or deficit		 2023
£000
24,058		 2022
£000
30,294
177 2,489
6,699 12,486
22 133

Financial assets measured at amortised cost comprise cash and cash equivalents, cash held on deposit, amounts owed to group undertakings and balances due on research grants.

Financial assets measured at fair value through surplus of deficit comprise listed investments and foreign currency forward contracts.

Financial liabilities measured at amortised cost comprise trade creditors, balances due on research grants, amounts owed to group undertakings and accruals.

Cash flows on the US dollar research income and the foreign currency forward contracts are at regular intervals, based on predicted project related cash flows. The forward contracts had a mark to market valuation as at 31 July 2023 amounting to a net liability of £22,000 (2022: £133,000 liability). A fair value gain of £110,000 (2022: loss of £184,000) for the year has been recognised within unrestricted funds and income/expenditure for the year in respect of foreign currency forward contracts.

The foreign currency forward contracts are not traded in active markets. These have been fair valued using observable forward exchange rates corresponding to the maturity of the contracts.

IVCC's income, expense, gains and losses in respect of financial instruments are summarised below :

Financial assets
On derivative financial assets and liabilities measured at fair value through income and expenditure
Fair value gains and (losses)
On derivative financial assets and liabilities measured at fair value through the hedge reserve
Total interest income for financial assets at amortised cost
Release of the balance on the hedging reserve on cessation of hedge accounting		 2023
£000
383		 2022
£000
129
110 (184)
- -
- -

12 Income funds

Income funds are analysed as follows:

Restricted
Grant funded projects
Unrestricted
Income and expenditure reserve		 Balance
31 July 2022
£000
£000
£000
£000
- 31,770 31,770
-
9,893 1,666 453
(61)
Other
recognised
gains and
losses
Income
Expenditure		 Balance
31 July 2023
£000
-
11,045
9,893
33,436
32,223
(61)		 11,045

The unrestricted funds of £11,045,000 reflects surpluses generated by IVCC through its grant activities following achievement of funder deliverables and donations received without performance restrictions.

27

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

13 Analysis of Net Assets Between Funds

Analysis of Net Assets Between Funds
Current assets
Current liabilities
Total net assets		 Restricted
Unrestricted
funds
funds
£000
£000
£000
13,212
11,023
24,235
(13,212) 22
(13,190)
Total
-11,045 11,045

14 Related Party Transactions

During 2023, charitable research grants totalling £2,130,000 (2022: £2,687,000) were passed to IVCC’s parent company Liverpool School of Tropical Medicine (LSTM); all had performance conditions attached.

During 2023, charitable research grants totalling £1,218,000 (2022: £NIL) were passed to IVCC’s sister company iiDiagnostics ; all had performance conditions attached.

As at 31 July 2023 there was an outstanding inter-company balance of £1,016,000 creditor (2022: £507,000 creditor) owed by LSTM relating to net of salary related costs, general supplies, investment revaluation reserve transfer and service level agreement charges.

As at 31 July 2023 there was an outstanding inter-company balance of £86,000 creditor (2022 : £87,000 creditor) owed to LSTM Consulting USA Inc, relating to payroll recharges for US staff as detailed in note 6.

As at 31 July 2023 there was an outstanding inter-company balance of £24,000 creditor (2022 : £nil creditor) owed to LLSA, relating to Rental charges.

There were no related party transactions involving the Trustees of IVCC as declared in the disclosure of interests.

15 Ultimate Controlling Party

The Trustees consider that the ultimate controlling party is Liverpool School of Tropical Medicine, a company registered in England and Wales (company no. 00083405), which is also a registered UK charity (charity no. 222655). LSTM is the parent company of LLSA by virtue of it being the sole member of the company limited by guarantee. LSTM's mission is improving health outcomes in disadvantaged populations globally through partnership in research and education.

The group accounts are publicly available from Companies House.

16 Capital Commitments

The charity had no capital commitments as at 31 July 2023 or 31 July 2022.

17 Contingent Liabilities

A composite cross guarantee structure exists between Liverpool School of Tropical Medicine, IVCC, Well Travelled Clinics Limited, Liverpool International Health Ventures Limited, Liverpool International Health I.P. Limited, Liverpool Life Science Accelerator Limited, LSTM Consulting Limited and iiDiagnostics Limited in respect of bank overdrafts. The aggregate amount outstanding under this agreement at the balance sheet date was £1,308,547 (2022: £712,358).

18 Operating Lease Commitments

At 31 July 2022 the company had annual commitments expiring as follows:

Amounts due in less than one year
Amounts due between one and five years
Amounts due in more than five years		 2023
£000
16
-
-		 2022
£000
-

-

-
16 **- **

28

DocuSign Envelope ID: 34BD2988-E908-47EF-9C65-61CA8C071621

IVCC Financial Statements for the Year Ended 31 July 2023

Notes to the Financial Statements

19 Consolidated reconciliation of net funds

Consolidated reconciliation of net funds
Net funds 1 August 2021
Movement in cash and cash equivalents
Other non-cash changes
Net funds 31 July 2022
Change in net funds
Analysis of net funds:
Cash and cash equivalents
Net funds		 2023
£000
19,531
(3,670)
-
15,861
2022
£000
19,531
(3,670)
2023
£000
15,861
15,861 19,531

29