JOEP LANGE INSTITUTE FOR GLOBAL HEALTH AND DEVELOPMENT Annual Accounts 2017

Amsterdam 29 June 2018

JOEP LANGE INSTITUTE FOR GLOBAL HEALTH AND DEVELOPMENT Annual Accounts 2017

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INDEX

BOARD REPORT ........................................................... 6

1. Introduction ...................................................... 6

2. Activities in 2017 ................................................ 7

3. Financial ........................................................ 10

4. Outlook 2018 ..................................................... 11

5. Governance ....................................................... 11

FINANCIAL STATEMENTS .................................................. 14

Balance sheet as at 31 December 2017 ................................ 14

Statement of income and expenditure for the year 2017 ............... 15

Cash flow statement for the year 2017 ............................... 16

Notes to the financial statements ................................... 18

Notes to the specific items of the balance sheet .................... 20

Notes to the specific items of statement of income and expenditure .. 23

Other notes ......................................................... 25

Signing of the financial statements ................................. 26

OTHER INFORMATION ..................................................... 27

Independent auditor’s report ........................................ 28

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BOARD REPORT 1. Introduction The Stichting Joep Lange Institute for Global Health and Development(“JLI”), incorporated on July 17, 2015, is inspired by the life and work of Joep Lange. JLI combines science, activism, and pragmatism to reach its goal: making health markets work for the poor. Vision To make health markets work for the poor, game-changing social innovations are needed in the delivery and financing of healthcare. The digital revolution stimulates the development of technology that provides unprecedented opportunities to break the vicious cycle. Therefor the Joep Lange Institute (JLI) promotes a digital agenda for global health innovation to make health markets work for the poor. Mobile technology offers opportunities to make health care more effective and inclusive and to influence individual behavior. Mobile phones and technology are increasing access and allowing for highly targeted prevention and treatment. Mobile technology also generates a wealth of data, opening unprecedented avenues to improve health care quality and financing of health. Due to its wide adoption, also in the informal sector, mobile technology brings a truly inclusive market closer. Roles JLI wants to serve as a meeting place for influencers and innovators who wish to join JLI in becoming a catalyst for the creation of a sustainable health infrastructure in this new ecosystem. Together with a close network of partners - influencers, activists and scientists - JLI aims to spark discussions and shape agenda’s around new promising perspectives, test innovative ideas in a real world-setting, and advocate for policy change based on what works and what doesn’t. The foundation is located in Amsterdam, the Netherlands. For more information on JLI, please visit www.joeplangeinstitute.org

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2. Activities in 2017 JLI has supported a wide range of activities over the past year that contribute to the realization of its vision. Below we have highlighted a selection of research and projects we have supported and lectures and seminars we have organized. This section concludes with an overview of our activities in 2017. Highlights Mobile technology creates new possibilities to influence people’s behavior, also in the context of health. Everybody with a mobile phone once can be incentivized to (pre-)pay and save for health. Once we have the mobile relation with participants, we can also use mobile technology for better disease (self-) management and to nudge towards healthy living and help prevent NCDs such as diabetes and hypertension. This is why we work with JLI Chair and renowned behavioral scientist Dan Ariely. Together with Ariely and his team at the Center of Advanced Hindsight (CAH), we explore how to best help people make better financial and health decisions using modern marketing techniques. In collaboration with PharmAccess, Ariely and the CAH engage in multiple projects in Kenya. One of the projects is specifically aimed at helping people make better financial decisions. The team performs tests and (behavioral) research to discover how to best encourage M-TIBA users to set funds aside for health. In Amsterdam and Nairobi, we support a project focused on self-management hypertension, working with ahti and PharmAccess. Other JLI-supported innovative projects concern testing of Connected diagnostics, Mobile malaria drones and Mother & Child care self-management apps. All projects are executed in collaboration with various partners. Co-funded by Achmea foundation and executed by PharmAccess, JLI supports a project aimed at the development of an innovative financing mechanism to realize scaled Hepatitis C treatment in Cameroon. Cameroon has one of the highest Hepatitis C disease burdens in sub Saharan Africa. Despite a revolutionary new and effective treatment (Direct Acting Antivirals) recently becoming available also in Cameroon, access to this treatment remains extremely limited in the country. To achieve its goal, the team are carrying out activities to: • Prove that Hepatitis C treatment with Direct Acting Antivirals

results in a high cure rate in this specific setting (within a demonstration project of 150 patients)

• Determine direct and indirect costs of treatment and define cost reduction areas for the future

• Determine potential funding pools, both local and international • Determine the feasibility of various innovative funding models

within the regulatory/political context.

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Once these vital data have been collected, the project will move to the next phase of the program with the goal to develop and put in place an innovative financing mechanism to implement Hepatitis C treatment, and scale this throughout Cameroon. By the end of 2017, 75 patients had been pre-enrolled into the program while 54 patients had received their first dose of Direct Acting Antivirals. We expect that by mid-2018 most of the 150 patient-target would have been reached. Further, candidates to carry out the costing study, funding model analysis and funding pool landscaping exercise have been identified and will begin their work in early 2018. JLI’s Chairs & Fellows program brings together experts from different backgrounds to collaborate on research that helps drive change in global health. In 2017 we had two renowned Chairs in the program: Dan Ariely, the James B. Duke Professor of Psychology and Behavioral Economics at Duke University and Mark Dybul, former Executive Director at the Global Fund to fight AIDS, TB and Malaria. To influence policies and make change happen, JLI has organized a variety of lectures, seminars and panel discussions. Much effort was put in the so-called Noordwijk series, a series of meetings titled 'Ensuring Efforts to Scale up, Strengthen and Sustain HIV Responses'. This JLI-sponsored initiative aimed to identify realistic, evidence-based options and solutions for the next phase HIV response that are relevant for global, regional and local stakeholders. Its objectives were to articulate an approach for the HIV response that takes sharp aim at reducing the number of new HIV infections, streamlining and improving service delivery, efficiently targeting the use of resources, and building new and more sustainable approaches for funding. The initiative also aimed to provide detailed information and guidance for advocates, policy makers and others by examining the potential impact of reduced funding for the HIV response on scale-up strategies and through identification of key areas in which additional implementation research and/or advocacy is needed for continued scale-up of effective services. Under the guidance of Chairs Mark Dybul, Nduku Kilonzo and Lillian Mworeko, seven meetings were held over the course of the year. The meeting participants included leaders in the HIV and public health field (including Ministries of Health, Development Aid and Finance) from implementing and donor countries, WHO, UN agencies, NGO’s, community-based advocates and service providers, health care providers, and researchers. The series culminates in an official IAS preconference to be held July 22, 2018. Overview of projects and events Research and other projects (partly) funded by JLI: • Joep Lange Chair & Fellows program in collaboration with AIGHD • History (and future) of trust studies in collaboration with the

University of Utrecht; • HIV research Scholarship program in collaboration with the HIV

Research Trust;

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• Coordination of HIF Research & Learning activities. • Behavioral research on M-Tiba in collaboration with the Center for

Advanced Hindsight (CAH); • Innovative financing for scaled HCV treatment in Cameroon in

collaboration with PharmAccess; • Mother & Child care self-management app, including digital

‘groeiboekje’ in SSA in collaboration with Health-e Foundation; • Connected diagnostics Kisumu in collaboration with PharmAccess; • Patient trackers for HIV and Mother & Child care in collaboration

with PharmAccess; • Self-management hypertension (Amsterdam & Nairobi) in collaboration

with PharmAccess and ahti; • Malaria drones in collaboration with Dr. Ir. Bart Knols and others.

Public lectures, seminars and events organized by JLI: • The Noordwijk series with Chairs Mark Dybul, Nduku Kilonzo and

Lillian Mworeko; • Mark Dybul lecture on “The Role of Innovations and Data in Global

Health” (January 10, 2017); • Dan Ariely on social innovations for health – The technological

revolution in Kenya to democratize healthcare (De Balie Debate, 28 June, 2017);

• Dan Ariely meets the World Bank: Combining expertise to improve healthcare; Where pay-for-performance meets intrinsic motivation and behavior (15 September 2017);

• Data and health: balancing privacy with quality (De Balie Debate, September 5, 2017);

• Sharing data for a healthier city (De Balie Debate, November 6, 2017).

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3. Financial During the financial year the income amounted to EUR 5,218,558 (2015/2016: EUR 5,804,854). The income consists of donations and grants by private (both for profit and not for profit) and public parties. The operating expenses are in line with JLI’s objectives and amount to EUR 4,040,592 (2015/2016 EUR 2,305,049). The operating result is EUR 1,177,966 (2015/2016 EUR 3,499,804). Together with the financial result, JLI has a surplus of EUR 940,861 (2015/2016 EUR 3,544,290) per year end 2017. This balance is available for JLI’s objectives in future financial years and will be added to the balance of income and expenditure. The financial statements reflect all activities of JLI. Per year end JLI had four employees. All supporting activities, such as management, finance & control and ICT, are contracted. The financial statements have been prepared in accordance with the Guideline for ‘small organisations not-for-profit’ (RJk C1) of the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’). Contrary to the Guideline for small organisations not-for-profit (RJk C1), the budget on overall level has not been included. Control is performed on program level. Financial risks are limited since JLI’s current contracted financial commitments are materially lower than its available resources. The available resources are held in cash on dedicated interest-bearing bank accounts and/or short-term deposits up to a year. JLI is exposed to currency results, as the funding is substantially received in USD and the functional currency is EUR. JLI does not work with ‘embedded derivatives’ and/or ‘hedge accounting’ and all larger programs are prefunded. Currency risks are, where possible and contractually allowed, settled at the relevant program level. Currently all JLI contracts allow currency risk settlement on program level.

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4. Outlook 2018 Many of the projects listed above, continue in 2018. Next to our ongoing activities the JLI will further expand its activities. Below an overview of activities on the agenda for 2018. A major event for the JLI is the 22nd International AIDS Conference (AIDS 2018). The conference will take place in Amsterdam, from 23 to 27 July 2018. JLI organizes a series of activities during the conference. It is here, where the Noordwijk series culminate in the JLI Preconference titled ‘Meeting 90-90-90 targets is not the end of AIDS’, which takes place on Sunday July 22. With our booth, a mobile experience and a series of Trigger Talks, JLI intends to inspire visitors of the conference with examples of what today’s knowledge and tools can bring to the table when it comes to chronic disease management, including HIV. Also, the Joep Lange Chair & Fellows program, expands. Since February of this year, health economist Anne Vassal from London School of Hygiene and Tropical Medicine. In the course of this year we hope to appoint our fourth Chair: Catherine Kyobutungi from the African Populations & Health Research Center, who will focus on the very topical issue of chronic disease management in Africa. Planned for events include lectures of Ariely with representatives of among others the food industry, and Tim Evans (World Bank) on the sustainable financing for Universal Health Coverage. During the year we expect to additional projects and events. 5. Governance JLI is a not for profit foundation with ANBI-status, incorporated under the laws of the Netherlands on July 17, 2015. JLI is managed by a statutory board of directors. Members of the statutory board are: • Onno P. Schellekens, chairman of the statutory board; appointed on

July 17, 2015; • D. Peter van Rooijen; member, appointed on July 17, 2015; • Michiel Heidenrijk, executive director, appointed on July 17, 2015.

The statutory board of JLI meets at least two times per calendar year. The statutory directors regularly discuss the strategy, the activities, planning, results and new developments. The day to day management of JLI is delegated to Michiel Heidenrijk. On March 1st, 2018 Ellen Croes was appointed in the role of managing director.

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Signing of the Board report Amsterdam, 29 June 2018 Board of Directors: O.P. Schellekens M. Heidenrijk Chairman Executive Director D.P. van Rooijen Director

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FINANCIAL STATEMENTS

Balance sheet as at 31 December 2017

(After appropriation of the result) Note 31.12.2017 31.12.2016 Note 31.12.2017 31.12.2016

EUR EUR EUR EUR Assets Equity and liabilities Fixed assets Equity Tangible fixed assets 1 75,755 9,184 Balance of income and Expenditure 3,544,290 0 Result for the year 5 940,861 4,485,151 3,544,290 3,544,290 Current assets Current liabilities Receivables: Creditors 1,436,632 12,645 Deferred income 7 527,504 0 Taxes and social security

contributions 6 11,006 0

Debtors 2 14,580 172 Deferred income 7 0 4,928,738 Other receivables 3 91,516 633,600 3,688 3,860 Other liabilities and accrued expenses 8 998,840 2,446,478 501,271 5,442,654 Cash 4 6,222,274 8,973,899 6,931,629 8,986,943 6,931,629 8,986,943

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Statement of income and expenditure for the year 2017

Note 2017 2015/2016 EUR EUR Income

9 5,218,558 5,804,854

Operating expenses: Direct program costs 399,372 319,263 Personnel expenses 10 1,166,696 561,308 Amortization and depreciation

7,454

696

General and administrative expenses

11 2,467,070 4,040,592 1,423,781 2,305,049

Operating result 1,177,966 3,499,804

Financial income and expenses:

Financial expenses 12 (319,994) (529) Financial income 13 82,889 (237,105) 45,015 44,485 Result 940,861 3,544,290

Added to:

Balance of income and expenditure

940,861

3,544,290

940,861 3,544,290

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Cash flow statement for the year 2017 (indirect method)

2017 2015/2016 EUR EUR Operating result

1,177,966 3,499,804

Adjustments for: Depreciation (and other changes in value)

7.454

696

Changes in working capital:

• movements operating accounts receivable

(102,236)

(3,860)

• movement deferred income

(5,456,242)

4,928,738

• movements other current liabilities

1,932,562

(3,625,916)

513,916

5,438,794

Cash flow from business activities

(2,440,496) 8,939,295

Interest received/paid 82,212 23,170 Cash flow from operating activities

(2,358,284) 8,962,465

Investments in (in)tangible fixed assets

74,024

9,881

Cash flow from investment activities

74,024 9,881

Net cash flow (2,432,308) 8,952,584 Exchange gains/(losses) on cash at banks and in hand

(319,317)

21,315

Net increase/(decrease) in cash at banks and in hand

(2,751,625)

8,973,899

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The movement in cash at banks and in hand can be broken down as follows:

Cash as at 1 January 8,973,899 0 Movements during the financial year

(2,751,625)

8,973,899

Cash as at December 31 6,222,274 8,973,899

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Notes to the financial statements GENERAL Foundation The Stichting Joep Lange Institute for Global Health and Development is incorporated as a not for profit foundation under the laws of the Netherlands on July 17th, 2015. The financial statements are presented in euros. Objectives The objectives of JLI is to serve general public advancement by improving health and healthcare worldwide by taking action, including but not limited to the following:

a. to initiate, stimulate, provide and support education and training for the benefit of health and healthcare worldwide, or to arrange for the same to be done;

b. to initiate, stimulate, perform and support scientific and other research and innovation for the benefit of health and healthcare worldwide, or to arrange for the same to be done;

c. to initiate, stimulate, provide and support advocacy and policy change for the benefit of health and healthcare worldwide, or to arrange for the same to be done;

d. to initiate, stimulate, undertake and support business activities and other economic activity for the benefit of health and healthcare worldwide, and to arrange for the same to be done;

e. to create a sound infrastructure for the activities referred to above, whether or not in an international network, or to arrange for the same to be done; and

f. to do any and all things that are related to or may be conducive to the above, all of this in the broadest sense of the word, including but not limited to: i. to incorporate, in any manner participate in, manage,

supervise and finance businesses and companies; and ii. to borrow, lend and raise funds, to acquire, dispose of and

encumber property subject to registration, to issue guarantees and to encumber assets of the Foundation, also for obligations of third parties, and to enter into related agreements.

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ACCOUNTING PRINCIPLES General The financial statements have been prepared in accordance with the Guideline for small organisations not-for-profit (RJk C1) of the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’). A budget on overall level has not been included as control is performed on program level. The financial statements have been prepared using the historical cost convention and are based on going concern. Income and expenses are accounted for on accrual basis. Liabilities and any losses originating before the end of the financial year are taken into account if they have become known before preparation of the financial statements. If not indicated otherwise, the amounts of the accounts are stated at face value. Balance sheet Tangible fixed assets Tangible fixed assets are presented at cost less accumulated depreciation and, if applicable, less impairments. Depreciation is based on the expected future useful life and calculated as a fixed percentage of cost, taking into account any residual value. Depreciation is provided from the date an asset comes into use. Costs for periodical major maintenance are charged to the result at the moment they arise.

Receivables Upon initial recognition the receivables are valued at fair value and then valued at amortized cost. The fair value and amortized cost equal the face value. Provisions deemed necessary for possible bad debt losses are deducted. These provisions are determined by individual assessment of the receivables.

Cash The cash is valued at face value. If cash equivalents are not freely disposable, then this has been taken into account upon valuation.

Current liabilities Deferred income Deferred income consists of subsidy prepayments related to programs to be carried out less the realized costs of these programs, taking into account foreseeable losses on programs. Additionally, deferred income also relates to payments from donors related to programs that have not been recognized as income. Other current liabilities Upon initial recognition, liabilities recorded are stated at fair value and then valued at amortized cost.

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Principles for the determination of the result Statement of income and expenditure Income and expenditure are recognized as they are earned or incurred and are recorded in the financial statements of the period to which they relate. Overhead expenses are excluded from program expenses and recorded in the operating expenses. Income ‘Income from donations’ relates to gifts from donors who support the general objectives of the foundation and is recognized consistently to the period to which it relates. Income from ‘Realized income related to programs’ is recognized in proportion to the completed program activities rendered on active programs, based on the cost incurred up to balance sheet date. The costs of these program activities are allocated to the same period. Direct program costs and donations to partners Direct program costs consist of expenses directly related to programs (out-of-pocket costs) excluding staff costs. Donations to partners, in line with the objectives of the foundation, are recognized when communicated to the partner(s). Recognition of transactions in foreign currency Transactions in foreign currencies are recorded at the exchange rate prevailing at the transaction date. At year-end, the assets and liabilities reading in foreign currencies are translated into euros at the rates of exchange as per that date. Financial instruments Financial instruments include both primary financial instruments, such as receivables and liabilities, and financial derivatives. Reference is made to the treatment per balance sheet item for the principles of primary financial instruments. The foundation does not use derivatives and there are also no embedded derivatives. The foundation does not apply hedge accounting.

Principles for preparation of the cash flow statement The cash flow statement is prepared according to the indirect method. The funds in the cash flow statement consist of cash and cash equivalents. Cash equivalents can be considered to be highly liquid deposits. Cash flows in foreign currencies are translated at an estimated average rate. Exchange rate differences concerning finances are shown separately in the cash flow statement. Comparative figures have been adjusted for this cause.

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Notes to the specific items of the balance sheet 1. Tangible fixed assets

2017 2016 EUR EUR Book value as of 1 January 9,184 0 Additions during the year 74,024 9,881 Depreciation during the year (7,454) (696) Book value as at 31 December 75,755 9,184

Purchase value as at 31 December 83,905 9,881 Accumulated depreciation (8,150) (696) Book value as at 31 December 75,755 9,184 The depreciation of the tangible fixed assets is calculated according to the straight-line method. The depreciation percentages are based on the economic life span. The following depreciation percentages are used: • Computer equipment : 33.3%; • Refurbishment : 10%; • Office furniture and other assets : 20%

2. Debtors

31.12.2017 31.12.2016 EUR EUR Debtors 14,580 172 Provision for doubtful debts 0 0 Balance as at 31 December 14,580 172 3. Other receivables

31.12.2017 31.12.2016 EUR EUR Prepayments 67,162 1,071 Deposits 24,307 0 Other 46 2,617 Balance as at 31 December 91,516 3,688

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4. Cash

31.12.2017 31.12.2016 EUR EUR ABN-AMRO EUR Account 449,421 1,375,584 ABN-AMRO USD Account 5,772,854 7,598,315 Balance as at 31 December 6,222,274 8,973,899 In order to gain interest, the excess cash in USD is held in temporary term deposits. The following term deposits are held as at December 31st, 2017: • EUR 3 million, 6 months at 1.63% for the period

December 29th, 2017 – June 29th, 2018; • EUR 2 million, 1 month at 1.40% for the period

December 29th, 2017 – January 29th, 2018;

Funds are available in line with the different program and foundation objectives. 5. Balance of income and expenditure

31.12.2017 31.12.2016 EUR EUR Balance as at 1 January 3,544,290 0 Result current year 940,861 3,544,290 Balance as at 31 December 4,485,151 3,544,290 Result appropriation for the year The result for the year EUR 940,861 is added to the balance of income and expenditure. The balance of income and expenditure is available to use in line with the described objectives of the foundation as stated in article 3.4 of the Articles of Association. 6. Taxes and social security contributions

31.12.2017 31.12.2016 EUR EUR Salary taxes payable 11,006 0 Balance as at 31 December 11,006 0

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7. Deferred income

31.12.2017 31.12.2016 EUR EUR Received from donors related to programs 10,493,723 10,733,592 Realized revenue on programs 11,021,227 5,804,854 Balance as at 31 December (527,504) 4,928,738 The donations from Gilead are recognized consistently to years which it relates to. The payments that have not been recognized as income is presented as 'deferred income'. 8. Other liabilities and accrued expenses

31.12.2017 31.12.2016 EUR EUR Accrued expenses 827,050 280,887 Liabilities programs 170,168 220,384 Holiday allowance and social securities 1,622 0 Balance as at 31 December 998,840 501,271 Off-balance sheet commitments In December 2016 a ten-year operational lease agreement was signed for the premises - AHTC buiding, 4th floor, Tower C and D - located at the Paasheuvelweg 25 in Amsterdam, the Netherlands. The yearly operational lease amount amounts to EUR 67,500. The first two years are free of charge, year 3: 60%, year 4: 73,3%, year 5: 86,6% and year 6 -10: 100% of the yearly operational lease amount.

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Notes to the specific items of statement of income and expenditure 9. Income

2017 2015/2016

EUR EUR

Income from donations 4,231,932 5,769,038

Realized income related to programs 986,626 35,816

5,218,558 5,804,854

The ‘Income from donations’ consist of:

Gilead 4,131,868 4,720,098 Heineken 0 1,000,000

IAS 97,879 48,940

Other – Gift J.W. Mulder 2,185 0

4,231,932 5,769,038

The ‘Realized income related to programs’ consist of:

Ministry of Foreign Affairs – Chair and fellows 331,230 35,816 PharmAcess / Health Insurance Fund / Ministry of Foreign Affairs 610,458 0

Noordwijk III – Gates Foundation 44,938 0

986,626 35,816

10. Personnel expenses

2017 2015/2016

EUR EUR

Salaries 19,519 0

Social security contributions 3,526 0

Pension costs 1,342 0

Subtotal JLI staff 24,387 0

Contracted services related to Facility Agreement 469,790 284,187

Contracted services related to Chair and Fellows 138,329 0

Consultants, Technical Assistance 349,481 146,170

Other 184,710 130,952

1,166,696 561,308

The ‘personnel expenses’ presented above relate to activities in line

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with the objectives of the foundation. In December 2017, JLI started a payroll with a package of employee benefits. 11. General and administrative expenses

2017 2015/2016 EUR EUR Partners 2,133,287 1,136,896 Events 155,405 193,748 Communication 23,212 49,163 Other 155,166 43,975 2,467,070 1,423,781 The ‘Partners’ consist of:

Center of Advanced Hindsight 628,087 919,490 PharmAccess Foundation - Support for digital innovation: M-Tiba 581,353 0 - Health impact bond: Hepatitis C 403,213 0 Amsterdam Institute for Global Health and Development 233,594 215,000 Universiteit Utrecht 200,000 0 Amsterdam Health and Technology Institute 78,000 0 Other 9,040 2,406 2,133,287 1,136,896 12. Financial expenses

2017 2015/2016 EUR EUR FX-results 319,317 0 Bank interest and charges 677 476 Other 0 53 319,994 529

The most significant part of the funding has been received in USD. Due to the US dollar development over 2017 a negative foreign exchange result of EUR 319,317 has been realized. 13. Financial income

2017 2015/2016 EUR EUR Bank interest 82,889 23,699 FX-results 0 21,316 82,889 45,015

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Other notes

Number of employees JLI started its payroll activities in December 2017. The year-end full- time equivalents was four (2016: nil).

Remuneration of Members of the Board During the extended financial year Onno Schellekens (Chairman), Peter van Rooijen and Michiel Heidenrijk formed the Statutory Board (‘Bestuur’) of the Stichting Joep Lange Institute for Health and Development. During this period no payments were made to the Members of the Board. Stichting Joep Lange Institute for Health and Development is voluntarily in compliance with the Dutch Standard Remuneration Act (‘Wet Normering Topinkomens’(WNT)).

Subsequent events There are no events to report.

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Signing of the financial statements Amsterdam, 29 June 2018 Board of Directors: O.P. Schellekens M. Heidenrijk Chairman Executive

Director D.P. van Rooijen Director

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OTHER INFORMATION Independent auditor’s report The independent auditor’s report is recorded on the next page.

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Independent auditor’s report

Independent auditor’s report To: the board of directors of Stichting Joep Lange Institute for Global Health and Development

Report on the audit of the financial statements 2017 included in the annual accounts Our opinion We have audited the financial statements 2017 of Stichting Joep Lange Institute for Global Health and Development, based in Amsterdam. In our opinion the accompanying financial statements give a true and fair view of the financial position of Stichting Joep Lange Institute for Global Health and Development as at 31 December 2017, and of its result for 2017 in accordance with the Guideline for annual reporting for small organizations not-for-profit (RJk C1) of the Dutch Accounting Standards Board. The financial statements comprise: • The balance sheet as at 31 December 2017 • The statement of income and expenditure for the year 2017 • Cash flow statement for the year 2017 • The notes comprising a summary of the accounting policies and other explanatory information.

Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the Our responsibilities for the audit of the financial statements section of our report. We are independent of Stichting Joep Lange Institute for Global Health and Development in accordance with the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on other information included in the annual accounts In addition to the financial statements and our auditor’s report thereon, the annual accounts contains other information that consists of: • The board report • Other information pursuant to the Guideline for annual reporting for small organizations

not-for-profit (RJk C1) of the Dutch Accounting Standards Board

Ernst & Young Accountants LLP Wassenaarseweg 80 2596 CZ Den Haag, Netherlands Postbus 90636 2509 LP Den Haag, Netherlands

Tel: +31 88 407 10 00 Fax: +31 88 407 41 87 ey.com

Ernst & Young Accountants LLP is a limited liability partnership incorporated under the laws of England and Wales and registered with Companies House under number OC335594. The term partner in relation to Ernst & Young Accountants LLP is used to refer to (the representative of) a member of Ernst & Young Accountants LLP. Ernst & Young Accountants LLP has its registered office at 6 More London Place, London, SE1 2DA, United Kingdom, its principal place of business at Boompjes 258, 3011 XZ Rotterdam, the Netherlands and is registered with the Chamber of Commerce Rotterdam number 24432944. Our services are subject to general terms and conditions, which contain a limitation of liability clause.

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Based on the following procedures performed, we conclude that the other information: • Is consistent with the financial statements and does not contain material misstatements • Contains the information as required by the Guideline for annual reporting for small organizations not-for-profit (RJk C1) of the

Dutch Accounting Standards Board We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of the Guideline for annual reporting for small organizations not-for-profit (RJk C1) of the Dutch Accounting Standards Board and the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our audit of the financial statements. Management is responsible for the preparation of the other information, including the management board’s report and other information in accordance the Guideline for annual reporting for small organizations not-for-profit (RJk C1) of the Dutch Accounting Standards Board.

Description of responsibilities for the financial statements Responsibilities of management for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with and other information. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, management is responsible for assessing the company’s ability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial statements.

Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all material errors and fraud. 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. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

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We have exercised professional judgment and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included e.g.: • Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing

and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control

• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management

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

• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures • Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair

presentation We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit. The Hague, 9 July 2018 Ernst & Young Accountants LLP signed by E.A.D. Buitelaar

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