DocuSign Envelope ID: 78C5595A-07C4-4944-9378-FE81EDF017BC
**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
**Report and Audited Financial Statements for the year ending 31[st] December 2021**
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Docusign EnvÈlope ID." 78C5595A-07CU944-937&FE81EDF017BC
Global InnovAtion Fund
ReportandKudiredr
3P1 Decemlyer2021
Grmtin
l arn d•llght•d to prns•rt
th• Global Innavatlon
Funtts 2021 Impact r•po
d•talllng th• pro9r•M nwd•
to •dv•nc• GIF'S rnls•lon
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to Improv• th• Ilvrf of th•
Docusign EnvÈlope ID." 78C5595A-07CU944-937&FE81EDF017BC
Global InnovAtion Fund
ReportandKudiredr
3P1 Decemlyer2021
R•fl•rtlng ¢>n • y••r In whlth
th• pand•mlc contlnu•d t•
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r•c•nt d•cad•4 GIF contlThu•d
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splrlt of abund•nc•. W•
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clalffl of Imp•¢t •nd v•lu• for
mon•y. and uk•d our p•rtn•rn
to doubl• d¢>wn on th•t.
h•rv•Atlng th• r•tumi ot our
work and th•lr •arly Inv•rtm•nt
In th• mod•l.
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the AllhI< hths been fhadè POSSitsl* bv
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Docusign EnvÈlope ID." 78C5595A-07CU944-937&FE81EDF017BC
Global InnovAtion Fund
ReportandKudiredr
3P1 Decemlyer2021
Impact summary
Ions
d•llv•thg
t•d to
b•n•fft from GIF
Innowtlon• by 2031
ho rJli•d fijndj tffjffl
•tr4t•gic/comm•rcial
Invutl
Illon
Improv•m•nt In IlIhOOd
ot p•opl• Imp•et•d by
r portfolio
knv•Jtm•nts
mobills•d p•r $1 of GIF
lor-proflt Inv•rtm•nt
mlll
In n•t eTaI b•n•ffti
n•rnt•d by slx GIF
kn4wtm•nti alon•
•N•ng• •xlt multlpl• on
•MIts (13.5% IRR)
Docusign EnvÈlope ID." 78C5595A-07CU944-937&FE81EDF017BC
Global InnovAtion Fund
ReportandKudiredr
3P1 Decemlyer2021
Measuring impact
Inno¥atlons by reglon
Value ol GIFcommllmenl ty reglon
Wesiwn thi'ca
• Wèstern Africa
Easlwn Alric•
E•tr rICa
SotsihÈrn As
15
SDuihern As
• StyJthe•M*rn Asi•
Other
10
10
Nun*er of
15
Total. $105.111.841
Innovatlons by Mctor
Valu• ol GIFcommllm•nl by sector
Health. nuiiiiion
and water
Ht4lth. rwJif(li¢n
and watÈr
SrtK41 yotectrI
• SOC proltclioi)
En•rw
A9r*vlli
EdL1Cft
• Eneryy
uItUf*
• EduutlC*n
Other
io
m*r Of irwi
15
Total.. 5105,474.811
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Trustees, Officers and Advisers**
## **Trustees**
The directors who held office during the year were as follows:
- Darren Welch
- Jane Siebels
- Santhosh Mathew
- James Clark (appointed as Chair of the Board effective 31[st] January 2021)
- James Habyarimana
- Kathryn Kaufman
- Robert Christie (appointed 1[st] January 2021, resigned 30[th] June 2021)
- Amanda Glassman (appointed 1[st] January 2021)
- Jeremy Weinstein (appointed 31[st] January 2022)
- Sarah Pearson (re-appointed 17[th] March 2022)
## **Key management personnel**
Chief Executive Officer Alix Peterson Zwane Chief Strategy & Legal Officer Amélie Baudot (resigned 11[th] February 2022) Chief of Staff and VP Garreth Spillane Senior Managing Director Hashim Mulangwa Wasswa (resigned 28[th] February 2022) Chief Analytics Officer Kenneth Chomitz Chief Financial Officer Shane Leonard (appointed 21[st] June 2021)
## **Professional advisors**
Auditors Crowe U.K. LLP 55 Ludgate Hill, London EC4M 7JW Bankers Barclays Bank Plc 1 Churchill Place, London E14 5HP Solicitors Bates Wells Braithwaite LLP 10 Queen Street Place, London, EC4R 1BE
## **Address of principal office**
Global Innovation Fund’s principal and registered office has the same address;
8 Devonshire Square
London
EC2M 4PL
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Trustees’ Report**
The Trustees present their report, the directors’ report, and consolidated financial statements for the year ended 31[st] December 2021.
Under the Charities Act 2011 and the Companies Act 2006 the Directors’ Report and Strategic Report are included within the Trustees Report.
## **Business review and future developments**
This has been discussed in the Strategic Report section.
The Board has delegated responsibility for GIF’s investment selection (i.e., the selection of innovative investments to further GIF’s mission) to the CEO and staff team, as outlined in GIF’s, Byelaws and scheme of delegated authorities.
## **Directors Report**
## **Appointment of Trustees**
GIF’s Articles of Association and Byelaws set out guidance on the composition of the Board of Trustees who are the Directors as defined under the Companies Act. The Board is entirely non-executive and comprises a majority of Trustees that are independent of any GIF funder (“A” Trustees). “A” Trustees are recruited from the following fields: private sector, civil society, the public sector and academia. They are formally appointed by the Board following approval by the Members. “A” Trustees serve for three-year terms with possible reappointment.
The Board also includes seats for Trustees that are elected by GIF’s funders (“B” Trustees). “B” Trustees are elected at the start of each three year funding cycle of the charity.
The Trustees meet formally each quarter.
The Trustees have delegated day-to-day management of GIF to its Chief Executive Officer and her senior management team. The Board has also delegated authority to the Audit & Finance Committee and the Human Resources Committee, and has constituted an advisory Development Committee. Each of these committees reports back to the Board quarterly and makes recommendations to the Board for approval as necessary.
The Trustees review and approve as applicable on an annual basis:
- the annual budget and operating plan for the charity;
- the charity’s financial results and variances from budget;
- the charity’s key performance indicators;
- the charity’s investment and grant portfolio and any major risks associated with the projects.
The Trustees also regularly review the charity’s risk register. The Audit & Finance Committee of the Board receives quarterly updates from senior management on risks and ensures that appropriate controls are in place to mitigate those risks.
## **Induction and training of new Trustees**
Each new GIF Trustee is briefed on the role of a Trustee and a Director under Charities Law and the Companies Act. They are provided with copies of relevant Charity Commission guidance and the charity’s organisational documents. The Trustees also receive training on Trustee and Director duties and responsibilities, anti-bribery and corruption and conflicts of interest.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Pay and remuneration**
The Human Resources Committee (appointed by the Board) is responsible for setting strategies relating to human resource needs for the charity and oversees the charity’s compensation philosophy. The HRC makes a recommendation to the Board regarding the CEO’s annual compensation. The CEO is responsible for setting the terms of remuneration for senior management.
Every year all staff go through an annual review looking at their performance against their objectives set at the start of the year. Pay increases are then dependable on the performance rating of each staff member.
## **Related Party**
None of the Trustees receive remuneration or other benefit from their work with the charity, although expenses are paid. Any connection of a Trustee with a request for financial assistance under discussion will be disclosed at a Board of Trustees meeting in the same way as any other contractual relationship with a related party. In the current year, no such related party transactions were reported.
Details of Trustee expenses are disclosed in Note 16 to the accounts.
## **Auditor**
Crowe U.K. LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.
## **Strategic Report**
This strategic report for the GIF’s sixth full financial year covers the full financial period from 1[st] January 2021 to 31[st] December 2021, and includes information in the ‘year in review’ and ‘measuring impact’ sections of these accounts.
GIF was incorporated on 17[th] September 2014 as a company limited by guarantee. GIF has a 100% owned subsidiary, also called the Global Innovation Fund, incorporated in the District of Columbia, United States of America, on 9th April 2015. This subsidiary began operations on 13th April 2015.
The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
## **Statement of public benefit**
GIF was granted charity status with the Charity Commission for England and Wales on 27[th] January 2017 with the charity number 1171353. The Articles of Association were adopted on 28[th] November 2016.
GIF is a non-profit organisation whose activities are intended to be for the public benefit. In both setting out the objectives and planning future activities, the Trustees have had due regard to the Charity Commission’s guidance on public benefit.
Over this reporting period, and in line with the goals, GIF has approved investments in a broad range of innovations across the developing world, covering the three themes of making public services work for the poor, creating productive jobs and easing market frictions and enhancing agency for women and girls.
## **Aims and purpose of the Charity**
GIF’s mission is:
- To support innovations that could scale up to benefit millions of people now living on less than $5/day; and
- To improve the overall impact of development expenditure - public and private, international and domestic - by demonstrating the effectiveness of outcome-oriented, evidence-based investment.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
GIF aims to support the global public good of generating innovations that will collectively open up opportunities and improve lives for hundreds of millions of people across multiple developing countries. To accomplish this, GIF seeks to accelerate the development, rigorous testing and scaling of cost-effective innovations, in particular by:
- providing an open global innovation platform to support piloting and testing new innovations for the world’s poor in developing countries, including both those that could scale commercially and those that could scale through funding by developing country governments, donors, and philanthropy;
- providing grants and making risk capital investments to support the transition to scale of:
- innovations designed to scale commercially that have passed a market test, and;
- innovations designed to scale through public or philanthropic support that have rigorous evidence of impact and cost effectiveness; and
- generating significant evidence, lessons, and knowledge to share with partner institutions as well as the broader development community.
## **Investment Policy**
GIF supports innovations that benefit people living on less than the equivalent of US$5 per day in developing countries, and is especially interested in innovations that impact people living on less than US$2 per day.
GIF defines “innovation” as any solution that has potential to improve the lives of the poor in developing countries more effectively than existing approaches. This includes new products or services, policy practices, business models, operational or production processes, behavioural insights, or ways of delivering products and services that benefit the poor, across all relevant sectors. These innovations could come from social enterprises, for-profit firms, non-profit organisations, researchers, academics, government agencies or any other relevant institution or individual.
GIF seeks to fill market gaps, and is especially interested in supporting promising innovations that may otherwise struggle to find appropriate forms of funding for objectives that align with those of GIF, e.g. piloting development innovations, gathering rigorous evidence of impact or achieving greater scale.
## **Grants**
GIF works with a wide range of institutions to fund specific research projects. Payment of grants is conditional upon the performance of key tasks. Where such tasks remain incomplete, payment is withheld. GIF operates an annual review process whereby grants are reviewed to ensure progress is being made and the programme complies with expectations before continuing payment is confirmed. As a result, the first payment of each grant is made up front, with further payments contingent on the above policy.
## **Reserves Policy**
The approved reserves policy intends to ensure GIF is in a position where it holds sufficient working capital to fulfil shortterm contractual and constructive investment commitments, as well as sufficient funds to cover medium term operational expenditure. The Reserves Policy is approved by the board in line with the requirements of GIF’s donor governments. The charity aims to have free reserves of $5m to stay in line with the approved policy taking into account the variable investment commitments it makes in the year.
## **Investment Commitments**
GIF intends to hold sufficient funds to fulfil any disbursements relating to contractual and constructive obligations falling due in the preceding twelve months. Current levels of investment commitments are shown in note 13 to the accounts.
## **Operational Expenses**
Operational expenses are those incurred through the course of running GIF’s offices, employing staff and making investments. The medium-term value of reserves will relate to twelve months’ costs as per the most recent operational budget or forecast.
## **Working Capital**
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
In addition to the funds described above, GIF will hold a minimum level of working capital of $5 million, in order to accommodate any investment activity beyond the time horizons indicated and any unforeseen costs.
Total Funds at 31st December 2021: $40.6m Less: Restricted Funds ($3.9m) Investments ($18.7m) Funding Commitments ($10.5m) Free Reserves Balance $7.5m
Free reserves are compliant with the approved policy.
## **Financial Review**
GIF’s income from its funders decreased from $22,591k in 2020 to $8,063k in 2021. This consisted of receipts from two existing Government donors in addition to receipts from existing private donors. Investment income decreased from $583k to $394k.
During the year $3,804k of new risk capital investments (Debt, Equity or Convertible Debt) were made. At the end of the year an in-depth review of our investments was undertaken. It was decided that writedowns, totalling $7,696k (2020: $3,026k) were necessary due to uncertainties around various aspects such as going concern. The impairment losses are included within Charitable activities in the Statement of Financial Activities.
Total funds as at the end of the year was $40,613k (2020: $56,643k) of which $3,901k (2020: $5,889k) was restricted.
## **Review of the group’s operations**
Our goal at GIF is to find, fund, and scale-up cost-effective, evidence-based innovations that have the potential to measurably improve the lives of millions of people in the developing world.
We believe that the best ideas for solving some of the world’s most critical problems can come from anyone, anywhere. Through our grants and risk capital, we help breakthrough solutions to global development challenges from social enterprises, for-profit firms, non-profit organisations, researchers, and government agencies to maximise their impact and affect meaningful change.
We support innovators at all stages of development, from start-up and pilot-testing through to larger scale implementation - the innovations we fund can be located in any developing country and can focus on any sector relevant to international development, provided they are committed to improving the lives of those living on less than $5 a day.
When thinking about where to invest, we look for promising entrepreneurs and seek to become their early partners as they test, adapt and improve their business model, before they are big enough to work with development finance institutions. We can also support experimentation and evidence gathering in domestic resource mobilisation, such as in increasing tax compliance in developing countries or supporting remittance flows.
During this time:
- We have continued to build a portfolio of investments and grown our pipeline of possible investees to ensure that we are able to continue to invest in innovations with the potential to transform the lives of people living on $5 a day or less.
- We have refined and implemented our Practical Impact methodology to rigorously assess the potential impact of our portfolio pipeline. This model is used across our work notably for project selection and appraisal (which proposals offer the highest impact per dollar), for tracking long-run portfolio performance, and in balancing rigour with practicality.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
- We have continued our engagement with potential new funders who align with GIF’s impact first, evidencebased investment approach. These conversations will continue in 2022 as GIF seeks to mobilise additional capital in pursuit of social returns.
Throughout the year we have achieved the following results:
- **We invested in evidence-based impact:** GIF closed six new transactions through GIF Core, addressing development challenges ranging from gender-based violence to COVID response. GIF investees have returned over $5m in capital through exits ($2.7m in 2021 alone) which will be reinvested. By 2032, GIF expects its portfolio of evidence-based grants and risk capital investments to benefit 124 million people each year.
- ● **We committed to improving its organisational transparency:** This included the publication of completion assessment reports covering the achievements of, and lessons learned from, GIF Core’s former portfolio innovations, and impact briefs analysing the impact that innovations currently funded by GIF have achieved to date. The organisation strives to be an exemplar in PublishWhatYouFund’s DFI Transparency Initiative.
- ● **We continued to invest for gender equality:** GIF made two grants under the first phase of its Innovating for Gender Equality Fund in partnership with Global Affairs Canada (a sub-fund of GIF Core), and it commissioned an independent evaluation of the gender fund, which strongly endorsed the progress GIF made during its first phase of partnership. The evaluation found that _“GIF’s approach to development assistance is quite unique in the market given that it works like a venture capital fund, but with an objective to maximise the social benefits it creates…What began as a pilot partnership between GIF and GAC ultimately had a much wider and deeper impact, profoundly influencing the way GIF thinks about gender in all aspects of its work…a relatively modest amount of funding to GIF to gather evidence, develop methodologies, and design appropriate toolkits has created significant leverage and knock-on effects.”_ Following this strong endorsement of the performance of the fund and in recognition of the outsized social impact achieved by the five grants awarded during the lifetime of the first phase of the agreement, GIF were delighted to announce a recommitment from GAC of a further CAD $5m at the end of 2021.
- **We developed our approach to climate adaptation and resilience:** GIF built a Climate Investment Strategy, as well as launching its Innovating for Climate Resilience Fund (with seed funding from FCDO) a sub-fund of GIF Core which invests, through grant, equity, and debt instruments, in innovations with the potential to scale and support poor people to build resilience and adaptation to climate change. GIF launched the fund at COP26, with participation from Dr. Charlotte Watts and representatives from the Finnish, Maldivian, and Bangladeshi governments.
- **We relaunched GIF Growth** : Following a pause to fundraising as a result of the pandemic, GIF renewed its work on building a returnable capital vehicle which will bring together impact-focused investors to mobilise their capital in the pursuit of outsized social impact and financial return. Ongoing conversations with a prospective anchor funder are positive and GIF hopes to finalise a funding partnership during 2022.
- **We saw the adoption of the Practical Impact methodology** : In line with its commitment to influence the field of development impact, GIF saw the adoption of its Practical Impact methodology in 2021 by CGIAR, a global partnership of international organisations engaged in food security research. GIF introduced CGIAR to GIF’s Practical Impact Methodology and provided advice and feedback to the CGIAR on their adaptation of Practical Impact to assess the projected benefits of their $1 billion research portfolio. Having felt a need to assess the potential long-term impact of their innovations, CGIAR decided that Practical Impact was the best-suited. This is a major validation of GIF’s strength in forecasting and measuring the social impact of development innovations.
## **Principal risks facing the group**
The table below outlines key organisational risks faced by GIF in achieving its mission, and what we’re doing to mitigate those risks.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
|**Risk**|**Explanation/example**|**Explanation/example**||**Management and mitigation**|
|---|---|---|---|---|
|Political Risk|Global political|or economic||Active
engagement
with
donor|
||uncertainty|||governments and broader bilateral and|
|||||multilateral engagement, including focus|
|||||on securing new donor relationships|
|Cash Flow Risk|Funding fluctuations by donor|||GIF is funded by reputable development|
||governments|||agencies on a multi-year basis with a|
|||||reporting system in place to manage|
|||||funding inflows|
|Impact risk|Portfolio
fails|to|generate|Rigorous due diligence and investment|
||expected
social||impact,|process, active portfolio management, and|
||including as a result of||COVID-|understanding the market context in which|
||19|||portfolio organisations operate|
These risks have, so far, proved manageable. A fully-encompassing corporate risk register is updated and reviewed by the Audit and Finance Committee and the wider Board of Trustees.
## **Goals & Key Objectives**
**1. One Mission: Multiple Vehicles:** GIF “core”; GIF Growth; and the Advance Fund: We have recognised that GIF’s unique model can support not only the deployment of Official Development Assistance but also create unique impact for (i) pools of returnable capital that are being invested in more traditional impact investors and (ii) corporate social responsibility funds.
2. **One Mission: One Deal Team:** The power of the GIF team is that we bring together rigorous economic analysis grounded in evidence, a deep understanding of the context in which our innovations can scale, financial acumen, a venture mind-set, and an ability to take smart risks. We have learned that the key to unlocking the power of this combination is to structure ourselves in a way that draws on the resources from across the GIF team and breaks down organisational silos.
3. **Enhancing the Agency of Women and Girls:** With its gender sub-fund, GIF will continue to apply, and improve on, the gender lens that it brings to all its investments, mainstreaming gender analytics into deal selection, diligence, and venture support. We will continue to partner with world-leading gender experts to grow our expertise and build a portfolio that prioritises gender equality outcomes.
4. **Investing in Innovation Focused on Climate Adaptation and Resilience:** Having launched the ‘Innovating for Climate Resilience Fund’ at COP26 in partnership with the Adaptation Research Alliance and the Global Resilience Partnership, with seed funding from the UK Foreign, Commonwealth and Development Office, GIF is harnessing its innovative model to invest in scalable early stage solutions to help people protect lives and livelihoods in the face of a changing climate, and we will measure their impact over time.
**5. GIF will invest where the world’s poor live and in innovations that matter to them:** We will strategically complement our commitment to open innovation by deepening our expertise in markets where we have traction and where our capital can catalyse additional investment.
## **Going concern**
Trustees have reviewed the latest versions of both the short-term and medium-term financial planning scenarios, paying particular attention to risks to income, operational costs, grant commitments, and the expectations of funders for new investments. The Global Innovation Fund has the flexibility to adapt our financial management, including
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
adjusting the cash-flow profile of disbursals and adjusting operational expenditure as needed, in response to any negative impacts to income levels. Trustees have concluded that there are sufficient reserves held at the time of completion of the audit to create a reasonable expectation that the Global Innovation Fund has adequate resources to continue in operational existence over the 12 months from the date these accounts were signed. Accordingly, the Trustees continue to adopt a going concern basis in preparing the financial statements.
## **Statement of Trustees’ Responsibilities**
The Trustees (who are also Directors of Global Innovation Fund for the purposes of Company Law) are responsible for preparing the Strategic Report, the Directors' Report 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.
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 group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as each Trustee is aware:
- there is no relevant audit information of which the charitable company’s auditors are unaware;
- each Trustee has taken all the steps that they should have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.
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.
_The Trustee’s Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Trustees, including in their capacity as company directors approving the Strategic Report continued therein, and is signed as authorised on its behalf by;_
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
8 Devonshire Square, London, EC2M 4PL
**James Clark**
_Chair of the Board of Directors Global Innovation Fund_
19 September 2022 Date: …………….
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Independent Auditor’s Report to the Members of Global Innovation Fund**
## **Opinion**
We have audited the financial statements of Global Innovation Fund (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 December 2021 which comprise The Consolidated Statement of Financial Activities, The Consolidated and Charity Balance sheets, The Consolidated Cash Flow Statement and notes to the financial statements, including 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:
- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2021 and of the group’s income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
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 group 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**
In auditing the financial statements, we have concluded that the trustees' 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 or the group’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.
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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
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:
- adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Anti-fraud, bribery and corruption legislation, General Data Protection Regulation (GDPR), taxation and employment
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
legislation. We also considered compliance with local legislation for the group’s overseas operating segments.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition and classification of income, grant expenditure, valuation of social investments and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **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.
23 September 2022
Tim Redwood Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor
London
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Consolidated Statement of Financial Activities**
_For the year ended 31 December 2021_
|_note_
**Income from:**
Charitable activities - Grants
_2_
Investment & Other Income
_2_
Other income - Foreign exchange gain
**Total income**
**Expenditure on:**
Charitable activities
_3_
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
_Total funds brought forward as at 1st January 2021_
_Total Funds carried forward as at 31st December 2021_|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**2021**
**2021**
**2021**
**USD ($000)**
**USD ($000)**
**USD ($000)**
6,809
1,254
8,063
394
-
394
19
-
19
7,222
1,254
8,476
(21,264)
(3,242)
(24,506)
(21,264)
(3,242)
(24,506)
(14,042)
(1,988)
**(16,030)**
50,754
5,889
56,643
**36,712**
**3,901**
**40,613**|**Total**
**Funds**
**2020**
**USD ($000)**
22,591
583
1,366|
|---|---|---|
|||24,540
(23,193)|
|||(23,193)|
|||**1,347**|
|||55,296
**56,643**|
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Consolidated and Charity Balance Sheets**
_As at 31 December 2021_
|_note_
**Fixed assets:**
Investments
4
**Total fixed assets**
**Current assets:**
Debtors
5
Cash at bank and in hand
6
**Total current assets**
**Liabilities:**
**Creditors:**amounts falling due within one year
7
**Net current assets**
**Total net assets**
**The funds**
Restricted
8
Unrestricted
8
**Total funds**|**Group**
**2021**
**USD**
**($000)**
18,729
**18,729**
242
22,229
**22,471**
(587)
**21,884**
**40,613**
3,901
36,712
**40,613**|**Charity**
**2021**
**USD**
**($000)**
18,729
**18,729**
452
22,008
**22,460**
(576)
**21,884**
**40,613**
3,901
36,712
**40,613**|**Group**
**2020**
**USD**
**($000)**
25,080
**25,080**
259
31,805
**32,064**
(500)
**31,564**
**56,643**
5,889
50,754
**56,643**|**Charity**
**2020**
**USD**
**($000)**
25,080|
|---|---|---|---|---|
|||||**25,080**
265
31,616|
|||||**31,881**
(318)|
|||||**31,563**|
|||||**56,643**|
|||||5,889
50,754|
|||||**56,643**|
The deficit for the financial year dealt within the financial statements of the parent charitable company was $16,029,724 (2020 – surplus $1,347,438)
19 September 2022
These financial statements were approved and authorised by the board of directors on ………………. and were signed on its behalf by:
## **James Clark**
_Chair of the Board of Directors Global Innovation Fund Company Registration Number: 09223487 (England and Wales)_
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## **Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Consolidated Cash Flow Statement**
_For the year ended 31 December 2021_
|**Group**
**2021**
_note_
**USD ($000)**
Net cash inflow from operating activities
(a)
(1,048)
Cash flows from investing activities
(b)
277
Cash flows from financing activities
(c)
(8,805)
Change in cash and cash equivalents in the reporting period
**(9,576)**
Cash and cash equivalents as at 1 Jan
**31,805**
Cash and cash equivalents as at 31 Dec
**22,229**
**Cashflow Statement notes:**
**(a) Reconciliation of changes in resources to net cash outflow from operating activities**
Net income for the reporting period
(16,030)
Impairment of programme related investments
7,696
Dividends and interest from investments
(291)
Bank charges
14
Issuance of programme related grants
7,460
(Increase)/decrease in debtors
16
Increase/ (decrease) in creditors
87
**Net Cash provided by operating activities**
**(1,048)**
**(b) Cash flows from investing activities**
Portfolio Interest
288
Bank and other interest
3
Bank charges
(14)
**Net Cash provided by investing activities**
**277**
**(c) Cash flow from financing activities**
Purchase of programme related investments
(4,092)
Exits of programme related investments
2,747
Issuance of programme related grants
(7,460)
**Net Cash provided by financing activities**
**(8,805)**|**Group**
**2020**
**USD ($000)**
18,376
403
(15,358)|
|---|---|
||**3,421**
**28,384**
**31,805**
1,347
3,026
(417)
14
10,533
3,792
81|
||**18,376**|
||361
56
(14)|
||**403**|
||(5,009)
184
(10,533)|
||**(15,358)**|
_The charity has taken advantage of the exemption available under FRS 102 from the requirement to present a charity-only cash flow statement within the consolidated financial statements._
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## **Notes to the accounts**
**1. Accounting policies**
## **Company Information:**
Global Innovation Fund (GIF) is a company incorporated and domiciled in the UK, it’s registered address is Wework, 8 Devonshire Square, London EC2M 4PL
## **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) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
GIF has a 100% owned subsidiary, also called Global Innovation Fund, incorporated in the District of Columbia, United States of America (EIN: 47-4045086). It is a not for profit organisation and therefore has equity of nil, its turnover of $1,606k (2020: $2,056) was provided directly from GIF to cover its operating costs. Its address is 1701 Rhode Island Ave NW, 20036, Washington, United States.
GIF has a second 100% owned subsidiary, GIF Growth Limited (company number 12392232) that was incorporated on 8[th] January 2020. It has not commenced trading as of end of 2021 but has incurred costs of $125k, resulting from recharges from the parent entity. These costs are reflected in the parent entity accounts as a receivable, but are consolidated out in the Group figures.
No separate SOFA has been prepared for the charity alone, as permitted by Section 408 of the Companies Act 2006. As required by Section 408 (4) of the Companies Act the charity’s income for the year was $8,476k (2020 - $24,540k), and its net deficit was $16,030k (2020 - surplus $1,347k). The charity has also taken advantage of the exemptions available under FRS 102 from the requirements to present a charity-only cash flow statement and to present certain disclosures about the charity’s financial instruments.
## **Going concern**
Trustees have reviewed the latest versions of both the short-term and medium-term financial planning scenarios, paying particular attention to risks to income, operational costs, grant commitments, and the expectations of funders for new investments. The Global Innovation Fund has the flexibility to adapt our financial management, including adjusting the cash-flow profile of disbursals and adjusting operational expenditure as needed, in response to any negative impacts to income levels. Trustees have concluded that there are sufficient reserves held at the time of completion of the audit to create a reasonable expectation that the Global Innovation Fund has adequate resources to continue in operational existence over the 12 months from the date these accounts were signed. Accordingly, the Trustees continue to adopt a going concern basis in preparing the financial statements.
## **Basis of consolidation**
The consolidated financial statements include the financial statements of the company Global Innovation Fund and its subsidiary undertakings made up to 31[st] December 2021. The parent company Global Innovation Fund is based in London and has three subsidiaries - one also named Global Innovation Fund based in Washington D.C, GIF Growth Limited based in London and GIF (Kenya) Limited based in Nairobi. There is also a branch based in Singapore.
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## **Notes** _(continued)_
## **Accounting estimates and judgements**
In preparing the financial statements, management have made judgements, estimates and assumptions that affect both the amounts recorded as revenues and expenses during the period, and amounts recorded for assets and liabilities as at the balance sheet date. However, the nature of estimation means these estimates could differ from actual outcomes. This is especially prevalent in determining the carrying value of GIF’s social investments and any need for impairment. The determination of carrying values for early-stage companies is by nature a volatile and uncertain process. Despite the inherent volatility, the guidelines applied to determine whether an impairment is required are considered to result in the best estimate of whether and the amount of any impairment required.
In 2021 GIF adopted a new valuations and impairments policy with a multi stage flow chart and analysis. We start by looking at recent third-party valuations including recent priced investment rounds. Should the carrying value be equal or higher than our book value then no adjustment to book value is made. In the absence of a third-party valuation, we compare performance to budget. Where there is no material deviation, no adjustment to book value is made. Finally, where there has been a material underperformance on budget, we look at the latest business plan and forecasts in order to make an assessment of any long term value impairment. Where there is no material downside in the long term value, no adjustment to book value is made.
## **Measurement convention**
The financial statements are prepared on the historical cost basis except for any social investments for which it is considered that a reliable estimate of market value exists. The related financial instruments are classified at fair value through income and expense. Where an accurate estimate of market value is unavailable the investments are stated at cost with an assessment for impairment taken at the year end.
## **Foreign currency**
GIF operates in 7 Currencies: US Dollars, Pounds Sterling, Euros, Swedish Kroner, Australian Dollars, Indian Rupees and Canadian Dollars. Transactions in foreign currencies are recognised in the group’s statement of income and expense in US Dollars (the functional currency), at the foreign exchange rate ruling at the date of the transaction.
Exchange rates within the accounting system are updated automatically on a daily basis. For the purpose of the first period end, monetary assets and liabilities denominated in foreign currencies at 31[st] December 2021 are translated to US Dollars at the closing foreign exchange rate ruling on 31[st] December 2021. Foreign exchange differences arising on translation are recognised in the statement of income and expense.
The functional currency of the subsidiary is US Dollars and therefore no currency difference occurs on consolidation with the group accounts.
## **Basic financial instruments**
Trade and other debtors are recognised initially at transaction price less any impairment. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Cash and cash equivalents comprise cash balances and notice deposits, less than three months. The accounting policy for social investments is set out separately below.
## **Income recognition**
All income is accounted for when Global Innovation Fund has entitlement, there is probability of receipt and the amount is measurable. For grant income this is usually when the invoice for payment is raised.
Interest receivable on the notice deposits (less than three months) is recognised in the income and expenditure account as they accrue, using the effective interest method. Realised and unrealised foreign currency gains and losses are reported on a net basis.
## **Expenses**
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Expenses are recognised on an accruals basis in the period to which they relate.
All costs are allocated to direct charitable activities or raising funds. Support costs are allocated either as direct costs associated with the investment or indirect costs.
## **Pension costs**
GIF operates a defined contribution pension scheme for its employees and contributes 10% of gross salary where the employee contributes at least 1%. Contributions to the scheme are charged to the Statement of Financial Activities when incurred.
## **Fund Accounting**
Restricted funds are funds that have been given for particular purposes and projects. Restricted funds must be used in accordance with the funders’ or donors’ wishes.
## **Operating leases**
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessors) are recognised in the Statement of Financial Activities on a straight-line basis over the period of the lease.
## **Social Investments**
Social Investments that are loans, equity or convertible loans are accounted for at the outstanding amount of the loan less any provision for unrecoverable amounts.
Unquoted equity, social investment funds and partnerships, and similar social investments are held at cost, less any provision for diminution in value, unless the Fund is able to obtain a reliable estimate of fair value.
An impairment of charge of $7,696k (2020: $3,026k) was recognised in the accounts in relation to the annual assessment of social investments.
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## **Notes** _(continued)_
## **2. Income**
|**Income**
Government Grants
Private Funding
**Government income by country**
Australia
Canada
Sweden
United Kingdom
United States of America
**Investment Income and other Income**
Income from investments
Bank interest on current accounts
Profit on disposal of investment|**2021**
**USD**
**($000)**
6,809
1,254
**8,063**
**2021**
**USD**
**($000)**
-
-
2,584
4,225
-
**6,809**
**2021**
**USD**
**($000)**
288
3
103
**394**|**2020**
**USD**
**($000)**
19,855
2,736|
|---|---|---|
|||**22,591**|
|||**2020**
**USD**
**($000)**
1,534
1,512
2,508
11,301
3,000|
|||**19,855**|
|||**2020**
**USD**
**($000)**
361
56
166|
|||**583**|
No government grants that have been recognised in the accounts have any unfulfilled conditions or other contingencies attached and there are no other forms of government assistance from which the charity has benefited.
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## **Notes** _(continued)_
**3. Charitable Activities**
|**Grants Payable**
DMI (Development Media International)
PATH
DGMT-SmartStart
Behavioural Insights Team
One Acre Fund
Lively Minds
Education Initiatives
Ideas42
Interactive Research & Development
Labeled Remittances
Talent Beyond Boundaries
IDInsight
No Means No Worldwide
Graduation
SwipeRx (formerly mClinica)
Balloon Ventures
Give Directly
Babban Gona
Crime Radar
Strong Minds
BRAC
Breakthrough
BuildHer
MTV Staying Alive
Stanford
**Impairment of programme related investments**
**Staff and other related staff costs**
**Other support costs**
**Foreign Exchange losses**
**Total costs directly associated to charitable**
**activities**|**2021**
**USD**
**($000)**
21
414
250
135
-
1,100
216
400
-
-
-
450
700
1,500
60
-
-
18
-
400
910
253
150
175
308
**7,460**
**7,696**
**5,229**
**3,367**
**754**
**24,506**|**2020**
**USD**
**($000)**
46
454
450
-
3,174
468
282
900
428
400
4
-
700
1,500
60
115
800
208
333
211
-
-
-
-
-|
|---|---|---|
|||**10,533**|
||||
|||**3,026**|
||||
|||**5,948**|
||||
|||**3,295**|
||||
|||**391**|
||||
|||**23,193**|
All grants above were made to institutions. All grants were signed for and disbursed within the year.
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## **Notes** _(continued)_
4. **Programme-related investments**
|**Debt**
B/F amount
Reclassification
Additions/Interest accrued
Investments paid back
Impairment charge
C/F amount
**Convertible debt instruments**
B/F amount
Reclassification
Additions/Interest accrued
Disposals
Debt converted to equity
Impairment charge
C/F amount
**Equity**
B/F amount
Reclassification
Additions
Disposals
Debt converted to equity
Impairment charge
C/F amount
**Total programme-related investments**|**Group**
**Charity**
**2021**
**2021**
**USD**
**($000)**
**USD**
**($000)**
2,069
2,069
-
-
774
774
(1,697)
(1,697)
(271)
(271)
875
875
3,369
3,369
-
-
930
930
-
-
(1,894)
(1,894)
(430)
(430)
1,975
1,975
19,642
19,642
-
-
2,388
2,388
(1,051)
(1,051)
1,894
1,894
(6,994)
(6,994)
15,879
15,879
**18,729**
**18,729**|**Group**
**Charity**
**2020**
**2020**
**USD**
**($000)**
**USD**
**($000)**
1,846
1,846
-
-
354
354
-
-
(131)
(131)|
|---|---|---|
|||2,069
2,069|
|||2,015
2,015
-
-
1,354
1,354
-
-
-
-
-
-|
|||3,369
3,369|
|||19,420
19,420
-
-
3,300
3,300
(183)
(183)
-
-
(2,895)
(2,895)|
|||19,642
19,642|
||||
|||**25,080**
**25,080**|
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## **Notes** _(continued)_
**5. Debtors**
|**Debtors**
Deposits
Prepayments and accrued income
Other debtors|**Group**
**Charity**
**2021**
**2021**
**USD**
**($000)**
**USD**
**($000)**
103
63
139
388
-
1
**242**
**452**|**Group**
**Charity**
**2020**
**2020**
**USD**
**($000)**
**USD**
**($000)**
130
91
128
173
1
1
**259**
**265**|
|---|---|---|
**6. Cash at bank and in hand**
|**Cash at bank and in hand**
Cash in hand
Notice deposits (less than 3 months)
**. Creditors**
**Creditors: amounts falling due within one year**
Trade creditors & accruals
Other creditors||**Group**
**Charity**
**2021**
**2021**
**USD**
**($000)**
**USD**
**($000)**
21,754
21,533
475
475
**22,229**
**22,008**
**Group**
**Charity**
**2021**
**2021**
**USD**
**($000)**
**USD**
**($000)**
580
569
7
7
**587**
**576**||**Group**
**Charity**
**2020**
**2020**
**USD**
**($000)**
**USD**
**($000)**
31,332
31,143
473
473
**31,805**
**31,616**
**Group**
**Charity**
**2020**
**2020**
**USD**
**($000)**
**USD**
**($000)**
498
316
2
2|
|---|---|---|---|---|
||||||
||||||
|||||**500**
**318**|
**7. Creditors**
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## **Notes** _(continued)_
## **8. Funds**
The restricted funds are received under an agreement with GAC (Canada) and a separate agreement with DFAT (Australia). GAC have stipulated their funds are to be invested in initiatives that have a gender focus. For DFAT, GIF is the Implementation Partner for the Water Data Challenge. Through the Challenge, GIF seeks to source and invest in data-orientated innovations in the water sector which have the potential to cost-effectively improve smallholder farmers’ productivity, income, or resilience; or that help to optimise water use at the system, watershed, or basin level so as to enhance resilience or promote inclusive growth. In June 2020 GIF signed a new deal with GAC that will be focused on investing through a gender lens. Restricted funds will be released as and when suitable investments or grants are found, and milestones are met.
|**Restricted funds**
Balance brought forward
Grant & Other Income
Grants & Other Expenditure
Increase/(Decrease) in Investments
Balance carried forward|**Group**
**Charity**
**2021**
**2021**
**USD ($000)**
**USD ($000)**
5,889
5,889
1,254
1,254
(3,242)
(3,242)
-
-
**3,901**
**3,901**|**Group**
**Charity**
**2020**
**2020**
**USD ($000)**
**USD ($000)**
2,891
2,891
5,123
5,123
(2,125)
(2,125)
-
-|
|---|---|---|
|||**5,889**
**5,889**|
|**Unrestricted funds**
Balance brought forward 1st January
Grant & Other Income
Grants & Other Expenditure
Increase/(Decrease) in Investments
Balance carried forward 31st December
Total Funds|**Group**
**Charity**
**2021**
**2021**
**USD ($000)**
**USD ($000)**
50,754
50,754
7,222
7,222
(13,568)
(13,568)
(7,696)
(7,696)
**36,712**
**36,712**
**40,613**
**40,613**|**Group**
**Charity**
**2020**
**2020**
**USD ($000)**
**USD ($000)**
52,405
52,405
19,417
19,417
(18,042)
(18,042)
(3,026)
(3,026)|
|---|---|---|
|||**50,754**
**50,754**|
||||
|||**56,643**
**56,643**|
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DocuSign Envelope ID: 78C5595A-07C4-4944-9378-FE81EDF017BC
## **Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Notes** _(continued)_
|**Fund Balances as at 31st December (Group)**
Investments
Current Assets
Current Liabilities
Total Funds|**Group**
**Group**
**2021**
**2021**
**USD ($000)**
**USD ($000)**
**Unrestricted**
**Restricted**
17,163
1,566
20,136
2,335
(587)
-
**36,712**
**3,901**
**40,613**|**Group**
**Group**
**2020**
**2020**
**USD ($000)**
**USD ($000)**
**Unrestricted**
**Restricted**
24,205
875
27,050
5,014
(501)
-|
|---|---|---|
|||**50,754**
**5,889**|
|||**56,643**|
## **9. Auditors remuneration**
|**Included in the statement of financial activities are;**
Statutory audit fees
Tax advisory fees|**Group**
**2021**
**USD**
**($000)**
50
1
**51**|**Group**
**2020**
**USD**
**($000)**
44
2|
|---|---|---|
|||**46**|
## **10. Staff numbers and costs**
The average number of persons employed by the Group (including directors) during the period, analysed by category, was as follows:
|**Category**
Investment
Analytics
Legal
Administration
_The aggregate payroll costs of these persons were as follows:_
Wages and salaries
Social security costs
Contributions to defined contribution pension plans|**Group**
**2021**
**USD**
**($000)**
12
4
6
13
**35**
3,847
359
834|**Group**
**2020**
**USD**
**($000)**
14
5
6
14|
|---|---|---|
|||**39**|
|||4,435
421
620|
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DocuSign Envelope ID: 78C5595A-07C4-4944-9378-FE81EDF017BC
**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
|Other employee benefits
Other Staff costs|203
11
**5,254**|220
252|
|---|---|---|
|||**5,948**|
## **Staff banding**
_The number of employees whose total compensation package (excluding pension) exceeded $81k are as follows:_
|USD
81,000 - 93,999
94,000 - 107,999
108,000 - 120,999
121,000 - 134,999
135,000 - 148,999
149,000 - 161,999
162,000 - 174,999
175,000 - 188,999
189,000 - 202,999
203,000 - 215,999
216,000 - 228,999
229,000 - 241,999
242,000 - 254,999
255,000 -267,999
268,000- 280,999
294,000 - 306,999
316,000 - 328,999|**Group**
**2021**
**USD**
**($000)**
3
6
1
3
4
3
1
1
1
0
0
1
0
0
1
0
0
**25**|**Group**
**2020**
**USD**
**($000)**
5
5
2
3
3
1
0
1
3
0
0
0
0
1
0
1
1|
|---|---|---|
|||**26**|
The Trustees received no remuneration for their services to the company. The above reflects termination payments made in the year as detailed below.
## **Remuneration of Key Management Personnel**
The total compensation package for key management personnel totalled $1,400k (2020: $2,157k). The trustees received no remuneration for their services to the company.
## **Termination payments**
Termination payments made during the year were $58,166 (2020: $276,519). These have been included within "Wages and salaries" within the aggregate payroll costs table in note 10 and were accrued at year end
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Notes** _(continued)_
## **11. Financial Instruments**
The carrying amounts of the financial assets and liabilities include
|**Financial Instruments**
Financial Assets - amortised cost
Financial Assets - fair value
Financial Liabilities - amortised cost
**Financial Assets**
Cash
Debtors
Social investments
**Financial Liabilities**
Trade Creditors
Accruals
Other creditors|**Group**
**2021**
**USD ($000)**
39,771
1,187
587
22,229
-
18,729
**40,958**
472
108
7
**587**|**Group**
**2020**
**USD**
**($000)**
55,699
1,187
501
31,805
1
25,080|
|---|---|---|
|||**56,886**|
|||11
488
2|
|||**501**|
As quoted prices are unavailable, the fair value of equity investments has been measured as at the transaction price. An assessment of the investments were made at the year end by the senior management and an impairment charge of $7,696k (2020: $3,026k) was recognised in the accounts within charitable investments on the face of the Statement of Financial Position.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Notes** _(continued)_
## **12. Operating Leases**
The total of future minimum lease payments under non-cancellable operating leases for each of the following periods are as follows:
|**Operating Leases**
not later than one year
later than one year and not later than five years
later than five years
**Total annual commitments**|**Group**
**2021**
**USD ($000)**
257
-
-
**257**|**Group**
**2020**
**USD**
**($000)**
693
62
-|
|---|---|---|
|||**755**|
Within the financial statements are lease payments totalling $758k (2020: $937k)
## **13. Funding Commitments**
Amounts related to programme related investments (grants) contracted for but not provided in financial statements amounted to $10,532k (2020: $19,773k) for the group and the company. If all conditions relating to each grant were met, the following amounts will be due.
|2022
2023
2024
2025
**Total annual commitments**
Total annual commitments as at 1st January 2021
FX Movement in 2021
Commitments made in 2021
Payments made in 2021
Total annual commitments at 31st December 2021|**2021**
**2021**
**2021**
**Grant**
**Commitments**
**Risk Capital**
**Commitments**
**Total**
5,557,480
2,441,357 7,998,837
1,829,644
- 1,829,644
703,130
- 703,130
-
-
-|
|---|---|
||**8,090,254**
**2,441,357 10,531,611**|
||14,240,861 5,532,229 19,773,090
101,921
(388,964)
(287,043)
1,207,201 1,102,166 2,309,367
(7,459,729)
(3,804,074)
(11,263,803)|
||**8,090,254 2,441,357**
**10,531,611**|
Neither the group nor company have any contingent liabilities as at the balance sheet date.
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **Notes** _(continued)_
## **14. Trading activities of subsidiary**
Global Innovation Fund, a non-profit subsidiary, is registered in the US (FEIN 47-4045086), located in Washington DC had the following results to 31/12/2021.
Global Innovation Fund is the sole member of the US entity and has certain governance rights under its articles and by laws, including, but not limited to, appointing board members.
The US entity carries out administrative activities such as employing US based staff and leasing premises to further the objectives of the parent entity.
|**Income & Expenditure**
Total support received & revenue
Total expenses
**Balance Sheet**
Assets
Liabilities|**2021**
**USD**
**($000)**
1,671
(1,671)
260
(260)
**-**|**2020**
**USD**
**($000)**
2,116
(2,116)
228
(228)|
|---|---|---|
|||**-**|
## **15. Defined contribution scheme**
The group operates a defined contribution pension scheme. The total expense relating to this scheme amounted to $834k (2020: $620k) during the period which has been charged to the Statement of Financial Activities. The contributions were paid using unrestricted funds.
## **16. Related party disclosure**
## _Trustees_
None of the Trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.
## _Trustees expenses_
One of the Trustees have claimed expenses or had their expenses met by the charity, these are related to flights, accommodation and subsistence for board meetings. These costs total $14,908 (2020: $4,465)
## _Employees_
There were no loans issued to employees in year and none outstanding at year end (2020: none)
## _Subsidiary_
GIF gave $1,700k (2020: $1,700k) to its subsidiary located in Washington DC to fund its administration expenses. $201k (2020: $416,293) of expenses were paid by GIF on behalf of the US subsidiary and $230k of previously provided funds were utilised by the subsidiary. The subsidiary had assets of $259,980 and liabilities of $259,980 at 31 December 2021, giving total net assets of $Nil. At the year end, the subsidiary owed GIF $nil (2020:nil).
33 **|** Page
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**Global Innovation Fund Report and audited financial statements 31[st] December 2021**
## **17. Post balance sheet events**
On 5th July 2022, one of our investees repaid the outstanding £262k balance on the £2.1m Revolving Facility Agreement and requested a cancellation of the agreement. This facility was due to expire at the end of 2022. As a result there is a material reduction in the Risk Capital Commitments going forward.
On 27th July 2022, we issued a notice of default to an investee, cancelling the investment and demanding full repayment of $460k. The investee has acknowledged the notice of default and agreed to repay the sum in three instalments by the end of 2022. The first repayment of $78,376 was received on August 15[th] . Should we recover the full sum we will reverse the impairment charge of $230k that is taken in 2021.
On 2nd September 2022, GIF and Anglo American provisionally agreed to terminate their funding agreement, which will result in the return of undisbursed cash on account to Anglo American, subject to contract. We currently estimate this to be less than $1m.
34 **|** Page