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← Global Innovation Fund

2023-12-31-accounts

Report and Audited Financial Statements for the year ending 31[st] December 2023

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Trustees, Officers and Advisers

Trustees

The directors who held office during the year were as follows:

Key management personnel

Alix Zwane (resigned 31[st] March 2024)

Joseph Ssentongo (appointed 1[st] April 2024) Zach Johnstone (resigned 5[th] May 2023)

Shane Leonard (resigned 31[st] March 2023)

Avinash Mishra (appointed 1[st] April 2023)

Joseph Ssentongo (appointed 1[st] January 2022, resigned 31[st] March 2023)

Joseph Ssentongo (appointed 1[st] April 2023, became Acting CEO on 31[st] March 2024)

Cillian Moynihan (appointed 1[st] April 2023)

Rachna Nag Chowdhuri (appointed 1[st] April 2023, resigned 30[th] April 2024)

Tom Mason (appointed 1[st] April 2023)

Professional advisors

Auditors Crowe U.K. LLP Bankers Barclays Bank Plc Solicitors Bates Wells Braithwaite LLP

St James House, St James Square, Cheltenham GL50 3PR 1 Churchill Place, London E14 5HP 10 Queen Street Place, London EC4R 1BE

Address of principal office

8 Devonshire Square

London

EC2M 4PL

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st

December 2023.

Under the Charities Act 2011 and the Companies Act 2006 the Director the Trustees Report.

Business review and future developments

This has been discussed in the Strategic Report section.

ion of innovative investments to

Directors Report

Appointment of Trustees

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 om the following fields: private sector, civil society, the public sector and academia. They are formally appointed by the Board following approval by the -year terms with possible reappointment.

The Board also includ

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 Trustees also regularly review the

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. Trustees also receive training on Trustee and Director duties and responsibilities, anti-bribery and corruption and conflicts of interest.

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Pay and remuneration

The Human Resources Committee (appointed by the Board) is responsible for setting strategies relating to human resource needs for 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. There were zero in 2023.

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

ninth full financial year covers the full financial period from 1[st] January 2023 to 31[st] December 2023 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.

GIF has a second 100% owned subsidiary, GIF Growth Limited. This was dormant at year end, though trading has commenced in 2024.

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 meets the definition of a public benefit entity under FRS 102.

GIF invest in the development, rigorous testing, and scaling up of new products, services, business process, or policy reforms that are more cost-effective than current practice and targeted at improving the lives of the world's poorest people.

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

To support innovations that could scale up to benefit millions of people now living on less than $5/day; and

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To improve the overall impact of development expenditure - public and private, international and domestic - by demonstrating the effectiveness of outcome-oriented, evidence-based investment.

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:

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.

y 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 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

mploying staff and making investments. The mediumbudget or forecast.

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Working Capital

GIF aims to 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 2023: $25.4m
Less:
Restricted Funds ($4.7m)
Investments (from unrestricted funds) ($15.4m)
Funding Commitments ($5.1m)
Free Reserves Balance $0.2m

Free reserves are lower than that stipulated within the approved policy, though are expected to increase following the successful renegotiation of a new funding cycle with principle funders and increased resulting funding receipts in 2024.

Financial Review

decreased from $9,545k in 2022 to $6,458k in 2023. Investment income increased from $168k to $559k.

During the year $2.7m 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 $1,051k (2022: $6,036k) were necessary due to uncertainties around various aspects of the financial position and performance of investees including their ability to continue as a 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 $25,391k (2022: $28,570k) of which $4,652k (2022: $6,653k) was restricted.

Going Concern

The 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 (including the level of cash reserves that can be used for this purpose), grant commitments, and the expectations of funders for new investments. The trustees are confident that, given the current information, estimates and consideration of the likelihood of additional funding being realised, the charity will have sufficient funds to continue its operations for the foreseeable future. As the assessment period is at least twelve months from the date of approval of these financial statements, it is therefore appropriate to prepare these financial statements on the going concern basis.

GIF has recently renewed a multi-year funding cycle with its anchor funder. This mitigates to a large extent the risk around going concern. However, a funding cycle with another principle funder comes to an end in 2024. Whilst expectations are that this will be renewed, naturally there remains a risk until done so.

Additionally, GIF is actively seeking other funders and is in advanced stages of talks with some.

Due to the uncertainty in the funding landscape discussed above, this would represent a material uncertainty that may cast doubt upon the organisation .

The trustees continue to monitor this risk closely with a view to assess and mitigate the impact on the organisation and its social impact.

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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.

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 period geopolitical and economic uncertainty continued to negatively impact the funding environment, slowing decision-making in donor agencies and reducing overall aid budgets. Nonetheless we have continued our engagement with both existing an -based investment approach. These conversations will continue in 2024 as GIF seeks to mobilise additional capital in pursuit of social returns.

On this backdrop, over the past year we have achieved the following results:

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assaults of adolescents, and Breakthrough will have measurably changed the gender attitudes of 8 million girls and boys.

Principal risks facing the group

The table below outlines key organisational ri those risks.

Risk Explanation/example Management and mitigation
Funding Risk Economic and policy factors or internal delays in key funding -Continuing to make the policy
countries, and difficulties attracting new donors, results in a case for the GIF model including
negative financial impact on GIF. However, GIF has agreed a its gender and climate work;
renewed funding cycle with its principal funder (see above and -Increase in fundraising activity
under going concern in the accounting policies). with pursuit of new government
and corporate partners leveraging
existing donor support where
possible
-Diversifying sources of capital
with GIF Growth.
Impact risk Investing in fragile markets increases the risk of backing Rigorous
due
diligence
and
innovations that fail or are not suited to the GIF portfolio, as investment
process,
active
well as expected early-stage failure risk. portfolio
management,
and
understanding the market context

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in which portfolio organisations operate.

Valuation & Impairment impairment of investments made is high risk

risk of Rigorous due diligence and monitoring of investments. Increased impairment is expected given the maturing portfolio and the current environment within private capital. Social impact remains the key metric against which investment success in measured.

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: can support not only the deployment of Official Development Assistance, but can also create unique impact for pools of returnable capital that are being invested in more traditional impact investors.

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.

  1. Investing in Innovation Focused on Climate Adaptation and Resilience: Development Office, we secured additional funding commitment from the Swedish International Development Cooperation Agency. GIF has continued to make investments in its climate sub-fund, harnessing its innovative model to invest in scalable early stage solutions to help people adapt and build resilience to climate change.

  2. ns 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.

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.

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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:

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 of the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the statements may differ from legislation in other jurisdictions.

This report has been prepared taking advantage of the provisions of the Companies Act 2006 available for small companies.

ng in their

capacity as company directors approving the Strategic Report continued therein, and is signed as authorised on its behalf by;

8 Devonshire Square, London, EC2M 4PL

James Clark Chair of the Board of Directors Global Innovation Fund

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Opinion

ise 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. financial statements section of our report. We are independent of the group in accordance with the ethical requirements 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

e

represent a mater opinion is not modified in this respect.

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. 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 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.

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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 purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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:

Responsibilities of trustees

le

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 fin

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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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 www.frc.org.uk/auditorsresponsibilities.

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.

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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 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 legislation. We also consi

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

Companies Act 2006. Our audit work has been u

permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable

Tara Westcott

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP Statutory Auditor

Cheltenham Date: 23 July 2024

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Consolidated Statement of Financial Activities

For the year ended 31 December 2023

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
2023
Total Funds carried forward as at 31st December
2023		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
2023
2023
USD ($000)
USD ($000)
USD ($000)
6,458
-
6,458
559
-
559
208
-
208
7,225
-
7,225
(8,404)
(2,000)
(10,404)
(8,404)
(2,000)
(10,404)
(1,179)
(2,000)
(3,179)
21,918
6,653
28,570
20,739
4,652
25,391		 Total
Funds
2022
USD ($000)
9,545
168
4
9,717
(21,759)
(21,759)
(12,043)
40,613
28,570

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Consolidated and Charity Balance Sheets

As at 31 December 2023

note
Fixed assets:
Investments
4
Total fixed assets
Current assets:
Debtors
5
Notice deposits (less than 3 months)
6
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
2023
USD
($000)
16,651
16,651
914
5,724
2,227
8,865
(125)
8,740
25,391
4,652
20,739
25,391		 Charity
2023
USD
($000)
16,651
16,651
917
5,724
2,211
8,852
(111)
8,740
25,391
4,652
20,739
25,391		 Group
2022
USD ($000)
15,151
15,151
683
-
14,524
15,208
(1,789)
13,419
28,570
6,653
21,917
28,570		 Charity
2022
USD
($000)
15,151
15,151
736
-
14,445
15,180
(1,761)
13,419
28,570
6,653
21,918
28,570

The deficit for the financial year dealt within the financial statements of the parent charitable company was $3,179k (2022 deficit $12,043k)

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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Consolidated Cash Flow Statement

For the year ended 31 December 2023

----- Start of picture text -----
Group Group
2023 2022
note USD ($000) USD ($000)
Net cash inflow from operating activities (a) (4,277) (5,388)
Cash flows from investing activities (b) 254 141
Cash flows from financing activities (c) (2,551) (2,458)
Change in cash and cash equivalents in the reporting period (6,574) (7,704)
Cash and cash equivalents as at 1 Jan 14,524 22,229
Cash and cash equivalents as at 31 Dec 7,950 14,524
(a) Reconciliation of changes in resources to net cash outflow from operating
activities
Net income for the reporting period (3,179) (12,043)
Impairment of programme related investments 1,051 6,036
Dividends and interest from investments (266) (168)
Bank charges 12 26
(Increase)/decrease in debtors (231) (441)
Increase/ (decrease) in creditors (1,664) 1,202
Net Cash provided by operating activities (4,277) (5,388)
(b) Cash flows from investing activities
Portfolio Interest 226 157
Bank and other interest 40 11
Bank charges (12) (26)
Net Cash provided by investing activities 254 141
(c) Cash flow from financing activities
Purchase of programme related investments (2,551) (3,528)
-
Exits of programme related investments 1,070
Net Cash provided by financing activities (2,551) (2,458)
----- End of picture text -----

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

8 Devonshire Square, London EC2M 4PL

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 2019) (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 $725k (2022: $1,306k) 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 2023.

No separate SOFA has been prepared for the charity alone, as permitted by Section 408 of the Companies Act 2006. The charity has also taken advantage of the exemptions available under FRS 102 from the requirements to present a charity-only cash flow stat

GIF agreed a renewed multi-year funding cycle with one of its its principle funders. However, an agreement with another principle funder is due to come to end in 2024, though discussions are underway to renew this.

GIF currently has sufficient cash runway available to cover operational expenditure until Q3 2025. Beyond this, it is reliant on the costed extension funding to meet short term operational commitments.

The 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 (including the level of cash reserves that can be used for this purpose), grant commitments, and the expectations of funders for new investments. The trustees are confident that, given the current information, estimates and consideration of the likelihood of additional funding being realised, the charity will have sufficient funds to continue its operations for the foreseeable future and as a result the financial statements have been prepared on the basis that the charity is a going concern.

Due to the uncertainty in the funding landscape discussed above, this would represent a material uncertainty that may

The trustees continue to monitor this risk closely with a view to assess and mitigate the impact on the organisation and its social impact.

The consolidated financial statements include the financial statements of the company Global Innovation Fund and its subsidiary undertakings made up to 31[st] December 2023. 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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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. 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.

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.

GIF operates in 7 Currencies: US Dollars, Pounds Sterling, Euros, Swedish Kroner, Australian Dollars, Indian Rupees 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 2023 are translated to US Dollars at the closing foreign exchange rate ruling on 31[st] December 2023. 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.

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.

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 are recognised on an accruals basis in the period to which they relate.

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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.

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.

Restricted funds are funds that have been given for particular purposes and projects. Restricted funds must be used

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 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 $1,051K (2022: $6,036K) 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
Canada
Sweden
United Kingdom
Investment Income and other Income
Income from investments
Bank interest on current accounts
Profit on disposal of investment		 2023
USD
($000)
6,403
55
6,458
2023
USD
($000)
-
(78)
6,481
6,403
2023
USD
($000)
226
40
293
559		 2022
USD
($000)
9,929
(385)
9,545
2022
USD
($000)
3,889
2,992
3,048
9,929
2022
USD
($000)
157
11
-
168

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.

For 2023, all grant income was unrestricted. All investment income was unrestricted.

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Notes (continued)

3. Charitable Activities

Grants Payable
Balloon Ventures
BLAST
BRAC
Breakthrough
BuildHer
Crime Radar
DGMT-SmartStart
Educate!
Give Directly
Graduation
ICM
Ideas42
IDInsight
Impact(ed)
IRD Global Ltd
J-PAL South Asia
Labeled Remittances
Lively Minds
No Means No Worldwide
PayGo Energy
Place
RWAMREC
Strong Minds
University of Kent - BLAST
WhereIsMy Transport
Impairment of programme related investments
Staff and other related staff costs
Consultancy & professional
Travel & events
IT costs
Other support costs
Total Support costs
Foreign Exchange losses
Total costs directly associated to charitable
activities		 2023
USD
($000)
-
200
44
19
-
-
142
62
-
1,300
-
-
-
750
-
100
-
100
-
-
180
850
-
160
-
3,907
1,051
3,814		 2022
USD
($000)
40
-
100
420
40
169
250
-
100
-
500
1,208
50
1,100
137
-
40
1,100
500
8
100
-
358
-
50
6,270
6,036
4,856
1,022
235
152
223
1,632
0
10,404		 2,001
607
118
474
3,200
1,398
21,760

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All grants above were made to institutions. All grants were signed for and disbursed within the year. For 2023 $2,001k of total expenditure was restricted and $8,404k was unrestricted.

4. Programme-related investments

Debt
B/F amount
Additions/Interest accrued
Investments paid back
Disposals
Impairment charge
C/F amount
Convertible debt instruments
B/F amount
Additions/Interest accrued
Disposals
Debt converted to equity
Impairment charge
C/F amount
Equity
B/F amount
Additions
Disposals
Debt converted to equity
Impairment charge
C/F amount
Total programme-related investments		 Group
Charity
2023
2023
USD
($000)
USD
($000)
308
308
61
61
(199)
(199)
(40)
(40)
(26)
(26)
104
104
1,525
1,525
865
866
-
-
-
-
(310)
(310)
2,081
2,081
13,318
13,318
1,993
1,993
(130)
(130)
-
-
(715)
(715)
14,466
14,466
16,651
16,651		 Group
Charity
2022
2022
USD
($000)
USD
($000)
875
875
77
77
(663)
(663)
-
-
18
18
308
308
1,975
1,975
80
80
(407)
(407)
(130)
(130)
7
7
1,525
1,525
15,879
15,879
3,371
3,371
-
-
130
130
(6,061)
(6,061)
13,318
13,318
15,151
15,151

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Notes (continued)
5. Debtors
Debtors
Trade receivables
Deposits
Prepayments and accrued income
Other debtors
6. Cash at bank and in hand
Cash at bank and in hand
Cash in hand
Notice deposits (less than 3 months)
7. Creditors
Creditors: amounts falling due within one year
Trade creditors & accruals
Other creditors		 Group
Charity
2023
2023
USD
($000)
USD
($000)
42
42
844
847
28
28
914
917
Group
Charity
2023
2023
USD
($000)
USD
($000)
2,227
2,211
5,724
5,724
7,951
7,935
Group
Charity
2023
2023
USD
($000)
USD
($000)
124
111
(0)
(0)
124
111		 Group
Charity
2022
2022
USD
($000)
USD
($000)
53
53
615
668
15
15
683
736
Group
Charity
2022
2022
USD
($000)
USD
($000)
14,524
14,445
-
-
14,524
14,445
Group
Charity
2022
2022
USD
($000)
USD
($000)
1,789
1,761
-
-
1,789
1,761

28 | Page

Notes (continued)

8. Funds

The restricted funds are received under an agreement with GAC (Canada), FCDO (Climate), SAS-P and Dioraphte. GAC have stipulated their funds are to be invested in initiatives that have a gender focus.

Restricted funds
Balance brought forward
Grant & Other Income
Grants & Other Expenditure
Increase/(Decrease) in Investments
Balance carried forward
Unrestricted funds
Balance brought forward 1st January
Grant & Other Income
Grants & Other Expenditure
Increase/(Decrease) in Investments
Balance carried forward 31st December
Total Funds
Fund Balances as at 31st December (Group)
Investments
Current Assets
Current Liabilities
Total Funds		 Group
2023
USD ($000)
6,653
-
(1,493)
(508)		 Charity
2023
USD
($000)
6,653
-
(1,493)
(508)
4,652
Charity
2023
USD
($000)
21,918
7,225
(7,353)
(1,051)
20,739		 Group
2022
USD ($000)
3,471
5,560
(3,450)
1,071		 Charity
2022
USD
($000)
3,471
5,560
(3,450)
1,071
4,652 6,653 6,653
Group
2023
USD ($000)
21,918
7,225
(7,353)
(1,051)		 Group
2022
USD ($000)
37,142
4,156
(13,345)
(6,036)		 Charity
2022
USD
($000)
37,142
4,156
(13,345)
(6,036)
20,739 21,918 21,918
25,391 25,391
Group
2023
USD
($000)
Restricted
1,263
3,389
-
4,652		 28,570 28,570
Group
2023
USD ($000)
Unrestricted
15,388
5,475
(125)		 Group
2022
USD ($000)
Unrestricted
13,380
10,326
(1,789)		 Group
2022
USD
($000)
Restricted
1,771
4,882
-
20,739 21,917 6,653
28,570
25,391

29 | Page

Notes (continued)

9. Auditor s remuneration

Included in the statement of financial activities are;
Statutory audit fees
Tax advisory fees		 Group
2023
USD ($000)
63
1
64		 Group
2022
USD
($000)
60
2
62
  1. Staff numbers and costs
Group Group Group
2023 2022
Category
Investment 10 11
Analytics 5 5
Legal 6 6
Administration 8 11
29 33
The aggregate payroll costs of these persons were as follows:
Wages and salaries 2,738 3,693
Social security costs 307 385
Contributions to defined contribution pension plans 583 503
Other employee benefits 175 263
Other Staff costs 11 20
3,814 4,864
Staff banding
The number of employees whose total compensation package (excluding pension) exceeded $81k are as follows:
Group Group
2023 2022
USD ($000) USD ($000)
USD
81,000 - 93,999 3 4
94,000 - 107,999 2 6
108,000 - 120,999 4 4
121,000 - 134,999 2 2
135,000 - 148,999 0 3
149,000 - 161,999 2 1

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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		 1
1
0
0
0
0
0
0
1
16		 1
2
0
0
0
0
1
0
0
24

Remuneration of Key Management Personnel

The total compensation package for key management personnel totalled $1,334k (2022: $1,743k). The trustees received no remuneration for their services to the company.

The above bandings factor in termination payments made in year.

Termination payments

Termination payments made during the year were $15,384 (2022: $291,165) as part of an organisational restructure. These have been included within "Wages and salaries" within the aggregate payroll costs table in note 10.

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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
2023
USD
($000)
24,672
-
125
7,951
70
16,651
24,672		 Group
2022
USD
($000)
29,742
-
1,789
14,524
67
15,151
29,742
125
(0)
125		 1,789
-
1,789

As quoted prices are unavailable, investments are recognised at cost less impairment. An assessment of the investments was made at the year end by the senior management and an impairment charge of $1,051k (2022: $6,036k) was recognised in the accounts within charitable investments on the face of the Statement of Financial Position.

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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
2023
USD ($000)
100
-
-
100		 Group
2022
USD
($000)
77
-
-
77

Within the financial statements are lease payments totalling $157k (2022: $351k)

13. Funding Commitments

2024
2025
2026 onwards
Total annual commitments		 2023
2023
2023
Grant
Commitments
Risk Capital
Commitments
Total
USD ($000)
USD ($000)
USD ($000)
3,617
230
3,847
919
-919
345
-345
-
-
4,881
230
5,111

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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 31/12/2023.

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		 2023
USD
($000)
800
(800)
105
(105)
-		 2022
USD
($000)
(
1,376
(1,376)
132
(132)
-

The 2022 balance sheet has been restated to reflect corresponding assets and liabilities for deferred pension plans, in accordance with 457(b) and 457(f) held at year end for the benefit of the CEO.

15. Defined contribution scheme

The group operates a defined contribution pension scheme. The total expense relating to this scheme amounted to $583k (2022: $503k) 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

No Trustees claimed expenses or had their expenses met by the charity in 2023. In 2022 the total was $100,206 and related to flights, accommodation, and subsistence for board meetings. All board meetings in 2023 were held in the UK and therefore no travel was required.

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Subsidiary

GIF gave $550k (2022: $900k) to its subsidiary located in Washington DC to fund its administration expenses and $126k (2022: $318k) of expenses were paid by GIF on behalf of the US. At the year end, the subsidiary owed GIF $nil (2022:nil).

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