CIP POTATO CENTER INTERNATIONAL A CGIAR RESEARCHCENTER www.cgiar.org globe. acrossclose collaboration the withhundreds of partners future. science iscarriedoutby 15Research Its Centers in CCGIAR for isaglobalresearch afood-secure partnership CIP isamemberofCGIAR. www.cipotato.org resources. ofourEarth’spreservation fragile biodiversity andnatural hunger, poverty, genderequity, climate changeandthe solutionsto thepressing worldscience-based issuesof tubers. CIPisdedicated to delivering sustainable with afocus onpotato, sweetpotato, andAndeanroots and acronym CIP)isaresearch-for-development organization The Potato International Center by itsSpanish (known
Financial Statements
For the year ended 31 December 2016 and Complementary Informationand Complementary Audited Financial Statements For theyear endedDecember 31,2016 International Potato Center Audited Financial Statements December 31, 2016
International Potato Center 2016
for year ending December 31, 2016 and 2015
International Potato Center Audited Financial Statements December 31, 2016
The International Potato Center (known by its Spanish acronym, CIP) is a research-for-development organization with a focus on potato, sweetpotato, and Andean roots and tubers. CIP is dedicated to delivering sustainable science-based solutions to the pressing world issues of hunger, poverty, gender equality climate change and the preservation of our Earth’s fragile biodiversity and natural resources.
Our Vision is roots and tubers improving the lives of the poor.
Our Mission is to work with partners to achieve food security, well-being, and gender equity for poor people in root and tuber farming and food systems in the developing world. We do this through research and innovation in science, technology, and capacity strengthening.
CGIAR is a Global Partnership that works to advance international agricultural research for a food secure future by integrating and coordinating the efforts of those who fund research and those who do the research. CIP is a member of the CGIAR Centers and receives its principal funding from CGIAR System Organization.
CGIAR Research is dedicated to reducing rural poverty, increasing food security, improving human health and nutrition, and ensuring more sustainable management of natural resources. It is carried out by 15 Centers that are members of the CGIAR in close collaboration with hundreds of partner organizations, including national and regional research institutes, civil society organizations, academia, and the private sector. The 15 Research Centers generate and disseminate knowledge, technologies, and polices for agricultural development through the CGIAR Research Programs. The CGIAR provides reliable and predictable multi-year funding to enable research planning over the long term, resource allocation based on agreed priorities, and the timely and predictable disbursement of funds. The multi-donor trust fund finances research carried out by the Centers through the CGIAR Research Programs.
International Potato Center Audited Financial Statements December 31, 2016
Table of Contents
Statement by the Board Chair 1-2 Management Report 3 Statement on Risk Management 4 Board of Trustees Members 2016 5-6 Independent Auditor’s Report 7-8 Statement of Financial Position 9 Statement of Activities 10 Statement on Changes in Net Assets 11 Statement of Cash Flow 12 Notes to the Financial Statements 13-24 Statement of Grant Revenue – Exhibit 1 25-27 Restricted Grant Revenue – Exhibit 2 28-35 Schedule of Direct and Indirect Cost Rates – Exhibit 3 36 CGIAR Research Program Expenditure Report – Exhibit 4 37-45
International Potato Center Audited Financial Statements December 31, 2016
Statement by the Board Chair
The International Potato Center’s Board of Trustees remains firm in its commitment to provide programmatic, governance, and financial oversight and leadership that ensure the Center’s effective and efficient management. It's a privilege to serve an organization working with partners to achieve food security, well-being, and gender equity for poor people in root and tuber farming and food systems worldwide.
Center Highlights
In 2016, CIP continued to gain ground in our 2014 strategic objectives to deliver impact at scale. CIP set a target of reaching 10 million households in Sub-Saharan Africa by 2020 with Orange Flesh Sweetpotato. A full 30% of that ambitious target has been met.
The Agile Potato for Asia Program is working to mitigate the impact of climate change, high population density, and land degradation on the world’s poor. Significant inroads have been made in developing fast-maturing disease resistant varieties that provide flexible planting and harvesting times without putting undue pressure on dwindling land and water resources.
The seed potato for Africa projects are on track to reach CIP's goal of 600,000 smallholder farmers in potato-growing regions of Africa with high-quality seed. By the end of 2016 the program had reached 23% of its target.
The appropriately named Game Changing Solutions strategic objective, which uses advanced science to accelerate discovery, has shown significant results in Ugandan field trials in combatting the greatest threat to potato late blight. This advance, though in its infancy, could indeed be a game changer for smallholder farmers. These are but a few notable achievements on the scientific front that CIP reports for this past year.
Financial Performance
Still recovering from a reduction in Window 1 and Window 2 funding over the past two years, CIP saw a leveling in revenues for 2016. Total Revenue reported in 2016 was $58.7M. The revenue from Windows 1 and 2 represents a decrease of $6.5M, while Window 3 and Bilateral increased $8.1M when compared to 2015. CIP’s Operating Expenses in 2016 are $59.7M and present a reduction of $0.8M from 2015.
The short-term solvency indicator (liquidity), which measures the number of days of working capital to fund expenditures excluding depreciation, was 105 days as of December 31, 2016. While the long-term financial stability indicator (adequacy of reserves), which measures the number of days of unrestricted net assets, was 90 days (both indicators are within the CGIAR recommended norms). The indirect cost ratio of the Center was 15.2% for 2016. The ratio has been calculated following the Financial Guidelines No. 5 and expresses the relation between direct and indirect costs.
CIP’s financial indicators reflect the Center’s continued financial health, though no institution is immune to financial or operational risk. To mitigate risk, the Board’s Audit Committee ensures oversight of CIP’s risk
1
International Potato Center Audited Financial Statements December 31, 2016
management policies and plans. In a much broader sense, the Board oversees Center operations in the interest of donors and stakeholders.
Outstanding Achievements in Biofortified Orange Flesh Sweetpotato – Eliminating Childhood Blindness and Contributing to Reduction in Stunting
The year 2016 was outstanding for CIP. Our groundbreaking Orange Flesh Sweetpotato (OFSP) work received important accolades. Three of our scientists, Dr. Maria Andrade, Dr. Robert Mwanga, and Dr. Jan Low were honored with the 2016 World Food Prize for enriching sweetpotatoes that resulted so far in health benefits for 10 million people (about 3 million households) across 14 countries in Sub-Saharan Africa. This prize was in acknowledgement of the single most successful example of biofortification to date. It is positive recognition that agricultural interventions can have a positive effect on nutrition, in this case, vitamin A deficiency. In addition, the entire CIP Orange Flesh Sweetpotato team was awarded with the Al-Sumait Prize for Food Security for this work. The prize is to honor individuals or institutions who help to advance economic and social development, human resources development and infrastructure on the African continent.
Appreciation
I would like to express my gratitude and appreciation to VM Zhang Taolin who finished his term on the Board in 2016, and who served with dedication and high standards during his tenure as Board member. I would also like to welcome Dr. Vo-Tong Xuan, Rector of Nam Can Tho University of Viet Nam and Dr. Qu Dongyu, Vice Minister of Agriculture of the Peoples’ Republic of China.
On behalf of the Board, I would like to thank CIP’s funders, investors, and all CGIAR partners for their support. I also extend my appreciation to CIP’s management and staff for their continued dedication to the organization and its important mission.
March 31, 2017
Dr. Rodney Cooke Chair, Board of Trustees
2
International Potato Center Audited Financial Statements December 31, 2016
Management Report
To the Board of Trustees:
The 2016 Financial Statements expressed in US dollars have been prepared in accordance with the accounting policies of the Consultative Group on International Agricultural Research (CGIAR) Financial Guidelines No. 2 – Accounting Policies and Reporting Practices Manual. CIP management is responsible for the reliability of the financial statements and is of the opinion that they give a true and fair view of the state of the financial affairs of the Center and of its operating results.
The Center maintains an internal control system over its financial reporting, which is designed to provide reasonable assurance to management and the Board of Trustees that the financial statements provide reliable information. The systems of internal controls include established policies and procedures communicated and applied throughout the Center.
The Board of Trustees, operating through its Audit and Risk Oversight Committee, provides oversight of the financial reporting process and of the safeguards in the system of internal control to avoid unauthorized acquisition, use or disposal of assets. The Audit and Risk Oversight Committee, meets privately with external auditors to discuss the results of their work, the adequacy of the internal control system and the quality of financial reporting.
Every year, the Audit Committee recommends to the Board the appointment of an external audit firm, and the terms of reference for their work. The external audit for 2016 was performed by Ernst & Young.
March 31, 2017
Dr. Barbara H. Wells Luis Felipe Mendes Director General Chief Financial Officer
3
International Potato Center Audited Financial Statements December 31, 2016
Statement on Risk Management
The Board of Trustees has responsibility for ensuring that an appropriate risk management system is in place which enables management to identify, manage and take steps to mitigate significant risks to the achievement of the center’s objectives.
Risk mitigation strategies have been ongoing at the Center and include the implementation of systems of internal control which, by their nature, are designed to manage rather than eliminate the risk. The Center also endeavors to manage risk by ensuring that the appropriate infrastructure, controls, systems and people are in place throughout the organization. The Center has implemented a bottom up approach to risk management beginning in 2011. Risks are identified at the department, regional and country level and are periodically evaluated by a Risk Management Team. High level risks are reported to the Board with the planned mitigation strategies established by the risk owners.
Management has established detailed guidelines to ensure risk is assessed at all levels. The process includes a plan by which the Center’s management identifies, evaluates and prioritizes risks and opportunities across the International Potato Center; develops risk mitigation strategies that balance benefits with costs; monitors the implementation of these strategies; and reports, in conjunction with the internal audit, semi-annually to the Audit Committee of the Board.
The Board is satisfied with the comprehensive risk management system adopted by the International Potato Center.
March 31, 2017
Dr. Rodney Cooke Chair, Board of Trustees
4
International Potato Center Audited Financial Statements December 31, 2016
Board of Trustees Members 2016
Board members Country of Origin Membership Dr. Rodney Cooke U.K. Board Chair (2012-Present) Chair Executive Committee Member Program Committee Member Finance Committee Member Audit/Risk Oversight Committee Member Governance & Nominations Committee
Mr. Patrick Murphy Ireland/USA Board Vice-Chair (2013-Present) Chair Audit/Risk Oversight Committee Member Executive Committee Member Program Committee Member Finance Committee Member Governance & Nominations Committee
Dr. Frannie Leautier France Chair Finance Committee (2014-Present) Vice-Chair Program Committee Member Executive Committee Member Governance & Nominations Committee Member Audit/Risk Oversight Committee
Dr. Alberto Maurer Peru Member Audit/Risk Oversight Committee (2014-Feb 2017) Member Program Committee Member Governance & Nominations Committee Member Finance Committee
Eng. Andres Casas Peru Member Audit/Risk Oversight Committee (2012-Present) Member Program Committee Member Governance & Nominations Committee Member Finance Committee
Dr. Barbara Wells USA Member Executive Committee (2014-Present) Member Program Committee Member Finance Committee Member Governance & Nominations Committee Member Audit/Risk Oversight Committee Dr. Zhang Taolin China Member Program Committee (2010-May 2016) Member Audit/Risk Oversight Committee Member Governance & Nominations Committee Member Finance Committee
5
International Potato Center Audited Financial Statements December 31, 2016
Board members Country of Origin Membership Dr. Qu Dongyu China Member Program Committee Member Audit/Risk Oversight Committee Member Governance & Nominations Committee Member Finance Committee
Dr. Linley Chiwona-Karltun Sweden Chair Governance & Nominations Committee (12/15) (2014-Present) Member Executive Committee Member Program Committee Member Audit/Risk Oversight Committee Member Finance Committee
Mr. James Eckles USA Chair Program Committee (2014-Present) Vice-Chair Finance Committee Member Executive Committee Member Audit/Risk Oversight Committee Member Governance & Nominations Committee
6
Independent Auditors’ Report
To the Members of Board of Trustees International Potato Center
We have audited the accompanying financial statements of International Potato Center, which comprise the statement of financial position as of December 31, 2016 and 2015, and the statements of activities, changes in net assets and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Accounting Policies of the CGIAR Financial Guidelines Series N°2 – Accounting Policies and Reporting Practices Manual revised in March 2004 and updated in September 2012, and for such internal control as Management determines is necessary to enable the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing approved for application in Peru by the Board of Deans of Institutes of Peruvian Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers relevant internal control of the Center in the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of express an opinion on the effectiveness of the Center’s internal control. An audit also includes the evaluation of the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.
Inscrita en la partida 11396556 del Registro de Personas Jurídicas de Lima y Callao Miembro de Ernst & Young Global 7
Independent Auditors’ Report (continued)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements, present fairly, in all material respects, the financial position of International Potato Center as of December 31, 2016 and 2015 and their statements of activities, changes in net assets and cash flows for the years then ended, in accordance with the guidelines supported by the Accounting Policies of the CGIAR Financial Guidelines Series N°2 – Accounting Policies and Reporting Practices Manual revised in March 2004 and updated in September 2012.
Other information
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary schedules: Exhibit 1 – Statement of Grant Revenue; Exhibit 2 - Restricted Grant Revenue; Exhibit 3 – Schedule of Direct and Indirect Cost Rates; and Exhibit 4 CGIAR Research Program Expenditure Report for the year ended as of December 31, 2016 , are presented for the purpose of additional analysis and are not a required part of the financial statements. Such information is the responsibility of Management. The information in such supplementary schedules has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
Lima, Peru
April 4th, 2017
Countersigned by:
Antonio Sánchez C.P.C.C. Register No.26604
8
International Potato Center Audited Financial Statements December 31, 2016
Statement of Financial Position Year Ended 31 December 2016 (US$ 000)
2016 2015 ASSETS Current Assets Note Cash and cash equivalents 2 24,264 10,568 Investments 3 7,047 14,300 Accounts Receivable: Donors (net) 4 8,617 8,290 Other - CGIAR Centers 4 637 2,138 Employees 5 394 308 Others 6 592 290 Inventory 7 78 175 Advances 8 2,248 3,084 Prepaid Expenses 519 456 Total current assets 44,396 39,609 Non-Current Assets Investments 3 496 513 Property and Equipment, net 9 4,215 4,858 Total non-current assets 4,711 5,371 TOTAL ASSETS 49,107 44,980
LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Donors 10 18,140 17,838 Other - CGIAR Centers 10a 8,789 4,932 Employees 11 - 100 Others 12 4,406 3,434 Accruals and Provisions ST 13 465 363 Total current liabilities 31,800 26,667 Non-Current Liabilities Employees 11 1,915 1,993 Total non-current liabilities 1,915 1,993 Total liabilities 33,715 28,660 Net Assets - Unrestricted Designated 5,769 5,769 Undesignated 9,623 10,551 Total net assets 15,392 16,320 TOTAL LIABILITIES AND NET ASSETS 49,107 44,980 (See accompanying notes to the financial statements)
9
Total 9 5,956 5,956 9 55 33,640 33,640 55 64 10,839 10,839 64 - 12,537 - 12,537 - 6,155 - 6,155 - 26,344 - 26,344 864 56,619 56,619 864 58,539 864 864 60,428 60,428 864 800 19,436 19,436 800 Non-CRP Restricted 2015 - - - (2,250) - - - 1,920 - - - (514) 292 292 2,140 800 CRP Restricted Restricted - 12,537 12,537 - - 26,344 26,344 - 982 5,173 5,173 982 5,019 928 153 - 153 - 153 297 10,478 10,478 297 (514) (514) 3,914 51,841 3,914 51,841 5,834 28,820 4,765 1,048 1,048 1,920 1,920 7,723 51,841 7,723 3,617 15,019 3,617 (2,250) (2,250) Total Unrestricted - 8,165 - 8,165 - 7,086 - 7,086 - 19,852 - 19,852 206 6,603 6,603 206 528 10,939 10,939 528 1,530 1,530 58,184 1,530 58,699 1,324 36,242 1,530 1,530 59,651 1,002 1,002 27,393 Non-CRP Restricted (Seenotestheaccompanying financial to statements) US$ 000) US$ 2016 ( - - - (928) - - - (152) CRP Restricted Restricted Year Ended 31 December 2016 December 31 Ended Year Statement of Statement Activities - 8,165 8,165 - - 19,852 19,852 - 865 690 865 - 1,555 515 - 515 - 515 176 - 176 - 176 295 10,116 10,116 295 (928) (928) (152) (152) 5,144 51,510 5,144 51,510 5,659 31,707 3,211 6,065 1,021 4,883 1,514 6,611 51,510 6,611 4,849 21,542 4,849 Unrestricted 15 15 17 17 19 21 17-18 Notes Window3 Window 1 and 2 and Window1 Bilateral Total Grant Revenue Grant Total OtherExpenses Losses and Non-CGIARCollaboratorExpenses OtherRevenue Gains and CollaboratorExpenses CGIAR ResearchExpenses GeneralAdministrationand Expenses Total Operating Expenses Operating Total Grant Revenue Grant Total Revenue and Gains Revenueand Total Expenses and Losses Expensesand Revenue and Gains Revenueand Financial Income Financial Expenses Financial (Deficit) Surplus International Potato Center Center International Potato December 2016 31, Statements Audited Financial 10
------
(928) 16,320 15,392 (2,250)
------
801 (928) 9,623 10,551 10,925 18,570 (1,175)
Undesignated TOTAL
5,769 5,769 7,645 Sub total total Sub ------1,175 1,175 (3,051) (9) (9) ------
1,867 1,175 (3,051)
Projects Projects Restricted Restricted
------1 34 (42) - - - -
181 492 (356) Designated
2,219 1,924 (US$ 000) (US$ Reserve for Replacement
of Fixedof Assets (1) 42 (34) - - - -
356 Year Ended 31 December 2016 Ended31 Year
(181) (492) 4,858 920 4,215 1,563
5,950 (172) 1,418 (1,418) 1,300 (1,300) (2,219) (1,924)
Capital Capital Investedin FixedAssets Statement of Changes in Netin Assets of Changes Statement
(Seenotestheaccompanying financialto statements) 9 9 9 9 21 21 Note As of December 31, 2015 31, December of As 2016 31, December of As Balance at 1 January 2015 January 1 at Balance International Potato Center Center International Potato December 2016 31, Statements Audited Financial AdditionsPropertyEquipmenttoand AdditionsPropertyEquipmenttoand Depreciation theforperiod Retirements Adjustment Fixed Assets inProgress Corecontributions OFSP2015 yearto Deficit Depreciation theforperiod Retirements Adjustment Fixed Assets inProgress Corecontributions OFSP2016 yearto Deficit 11
International Potato Center Audited Financial Statements December 31, 2016
Statement of Cash Flow Year Ended 31 December 2016 (US$ 000)
2016 2015 CASH FLOW PROVIDED BY OPERATING ACTIVITIES Change in Net Assets (928) (2,250) Adjustment to Reconcile Change in Net Assets to net Cash: Provided by Operating Activities: Depreciation 1,924 2,217 Gain/loss on disposal of property and 492 181 Other provisiones 193 (15) Decrease (Increase) in Assets: Accounts Receivable: Donors (580) (3,202) Other - CGIAR Centers 1,501 (1,480) Employees (86) 97 Others (302) 404 Inventories 97 125 Advances and Prepaid Expenses 774 (727) Increase (Decrease) in Liabilities: Accounts Payable: Donors 302 8,126 Other - CGIAR Centers 3,857 (1,000) Employees (178) (654) Others 972 (2,160) Accruals and Provisions 102 (938) Net Cash provided (used) by Operating Activities 8,140 (1,276)
CASH FLOW FROM INVESTING ACTIVITIES Acquisition of Fixed Assets (1,418) (1,300) Fixed Assets in Progress (356) (42) Proceeds from disposal of property, plant and 60 51 (Increase) Decrease of Investments 7,270 3,444 Net Cash provided by Investing Activities 5,556 2,153
Net Increase in Cash and Cash Equivalents 13,696 877
CASH AND CASH EQUIVALENTS At the beginning of the period 10,568 9,691 At the end of the period 24,264 10,568 (See accompanying notes to the financial statements)
12
International Potato Center Audited Financial Statements December 31, 2016 Notes to the Financial Statements Year Ended 31 December 2016 (In US$ 000)
Note 1 - Basis of Financial Statement Presentation and Significant Accounting Policies
The accounting policies applied in the preparation of these financial statements are consistent with the CGIAR Financial Guideline Series No. 2 – Accounting Policies & Reporting Practices Manual revised in March 2004 and updated September 2012. These policies are summarized below:
Cash and Cash Equivalents are cash and short-term highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less.
Investments are carried at market or appraised value; profits or losses are reflected in the statement of activities in other revenues and gains.
Inventory of materials and supplies are booked at acquisition cost. Acquisition cost includes the purchase price plus freight, insurance and handling charges. Inventory is valued at the average cost, which should not exceed market value. Materials in transit are stated at cost.
Property and Equipment are stated at net book value, which is calculated by deducting accumulated depreciation from acquisition cost, freight, insurance and handling charges, net of disposals. Gains or losses resulting from disposal of assets are reflected in the Statement of Activities. A new revised Policy of Fixed Assets was implemented in 2013 which states that new asset items having an individual purchase price of US $3,500 or greater including VAT, freight and installation costs are categorized as fixed assets. Estimated life of Property and Equipment used for calculating depreciation charges are as follows:
Category Description Estimated life in years Physical facilities Buildings and improvements 33 Furnishing and equipment Farming Equipment 7 Scientific and Laboratory Equipment 5 Office equipment, furniture and fixtures 5 Vehicles 4 Mainframe, servers, network systems and 5 Telecommunication equipment Computers and personal computer peripherals 3 Software costs and Intangible Assets 4 and 10
Depreciation of property and equipment is calculated by using the straight-line method. Depreciation starts in the month the assets are placed in operation and continues until they have been fully depreciated or discontinued for use.
Constructions in progress are capitalized when the work is completed and the facility is put in use.
Property and Equipment acquired by grants restricted for a specific project are recorded as assets. Such assets are depreciated at a rate of 100%.
13
International Potato Center Audited Financial Statements December 31, 2016
Intangible Assets comprise software developed or purchased. The total cost of acquisition and installation of computer software is capitalized and amortized using the straight-line method over the estimated useful life of the software, usually four years.
Statement of Activities: The format of this Financial Statement is based on the CGIAR Finance Guideline No. 2.
In 2011, the CGIAR introduced a new programmatic based approach to doing business. The Donors to the CGI, System Organization, approved the creation of fifteen CGIAR Research Programs (CRPs), each to be led by a designated Center which would be responsible, through a Program Implementation Agreement (PIA) for overseeing the implementation of the CRP by program participants and for all payments to and reporting from program participants. Program participants include other Centers who are subcontracted by the Lead Center via a Program Participant Agreement (PPA) or other suitable contracting arrangement.
The Lead Center of a CRP shall include in its Statement of Activity expenses incurred by subcontracted CGIAR Centers and the corresponding revenue.
Collaborators -CGIAR Centers shall include in their Statements of Activity expenses incurred for each CRP, and the corresponding revenue.
Grants Revenue are recognized upon the substantial fulfillment of the conditions attached to them, regardless of the period when it is intended to be used, or when the donor has explicitly waived the conditions. Grants are classified according to the type of restrictions attached to them.
Unrestricted grants received by the Center may be freely used for its mandated activities and are recognized in full in the period specified by the donor wherein sufficient verifiable evidence exits.
Restricted grants are received in support of specified projects or activities mutually agreed upon by the Center and donor. Revenue is recognized to the extent of expenses incurred. Excess of grants received over expenses, representing grants applicable to succeeding years, are shown as Accounts payable – donors. Claims from donors for projects expenses paid for by the Center in advance are shown as Accounts receivable – donors; both accounts in the statement of financial position.
Grants in kind are measured at their values of the assets (or services) received or promised while cash grants are measured at the face values of the cash received or the US dollar equivalent
Other Revenue and Gains are recognized in the period in which they are earned. It includes interest and gains on investments, and proceeds from the sale of assets or other services.
Indirect Cost Recovery; the Cost structure adopted by CIP is based on CGIAR Financial Guidelines No.5 (FG5) and Activity Based Cost methodology (ABC), which allows direct cost allocation to research according to the contribution of each cost unity to the project. CIP applies this methodology consistently across all restricted projects funded by W1&2, W3 and Bilateral. The Institutional Costs (Overhead) are business support costs that cannot be associated directly to research activities. These costs are grouped into a common pool(s) and distributed to benefiting activities by a cost allocation process involving the application of a percentage rate (Overhead Rate).
Cost Allocation Ratio; the Indirect Cost rate is revised on an annual basis, based on the actual audited figures of the closing fiscal year and the budget of the new fiscal year. Overhead is charged as a fixed percentage rate to all other cost of research activities (Direct Cost). CIP’s overhead rate is published in the annual Audited Financial Statement. Overhead is charged monthly, per project’s execution.
14
International Potato Center Audited Financial Statements December 31, 2016
Foreign Currency transactions are stated in US dollars at the exchange rate prevailing on the date of the transaction. Exchange differences resulting from the collection of receivables and/or the settlement of obligations at an exchange rate different from the one originally used to book the transaction are credited or charged to operations in the period the transaction is settled and are included in the statement of activities.
Outstanding assets and liabilities in other currencies than the US dollar at year-end are adjusted at the market exchange rate. Gains or losses are included in the statement of activities.
Expenses represent actual or expected cash outflows that have occurred or will eventually occur as a result of the Center’s ongoing operations during the period and are recognized on an accrual basis.
Other Accounts Payable and Accruals represent amounts to be paid in the future for goods or services received, whether billed by the supplier or not.
Employee Benefits are all forms of consideration given by the Center in exchange for services rendered by all employees whether internationally recruited staff (IRS) or nationally recruited staff (NRS).
Employee Local Staff Social Benefits are calculated in accordance with local current legal regulations of each country where the Center hires local staff.
Employee International Staff Related Liabilities and retirement benefits of the IRS are managed by the Association of International Agricultural Research Centers (AIARC), an autonomous body providing comprehensive payroll management services to various agricultural research organizations worldwide. Payments to AIARC include contributions towards the IRS retirement benefits.
Employee Repatriation Cost is paid in accordance with the terms and conditions of recruitment. Internationally recruited staff is entitled to repatriation benefits on the completion of their contract period. Provision is made for repatriation payable for all international staff members based on the estimated cost of airfare, relocation and freight charges.
Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Note 2 - Cash and Cash Equivalents Cash and cash equivalents consist of the following:
2016 2015 Cash on hand 64 24 Banks accounts 23,900 6,590 Time Deposits 300 3,954 Total Cash and Cash Equivalents 24,264 10,568
Bank accounts are in local and foreign banks, and mainly correspond to balances in Nuevos Soles and U.S. Dollars, all bank accounts are unrestricted.
15
International Potato Center Audited Financial Statements December 31, 2016
The Increase on the amount available on bank accounts in 2016 correspond mainly to US$12.3M funds received during December 2016 from CGIAR System Organization related to the CRP on Root, Tubers and Bananas (PHAS32). As of December 31, 2016, and 2015 time deposits are in U.S. Dollars with current maturity and earn interest at market rates.
Note 3 - Investments As of December 31, the movement is as follows:
2016 2015 Time Deposits 5,526 11,782 Other investments 2,017 3,031 Total Investments 7,543 14,813 Less: Current portion of investment (7,047) (14,300) Investments, non-current 496 513
Investments current and non-current comprise the following:
2016 2015 Time Deposits 5,526 4,707 Commercial Papers 1,294 2,459 Bonds and Shares 593 513 Repurchases Agreement 95 59 Select Money Account 35 7,075 Investments 7,543 14,813
Time deposits and Commercial Papers are in U.S. Dollars and earn interest at market rates. Interest earned on Investments during the year was US$0.17M which has been recorded as Financial Income in the Statement of Activities.
Note 4 - Accounts Receivable - Donors Unreleased balances of approved grants and expenses incurred in advance of the receipt of donor funds are classified as follows (See, Exhibit 1):
2016 2015 Bilateral 7,024 7,892 Unrestricted 1,846 398 Subtotal Donors 8,870 8,290 Provision for bilateral Non-Collectibles (253) - Donors 8,617 8,290 CGIAR Centers 637 2,138 Total 9,254 10,428
16
2016 2015 IFPRI 209 - CIAT 144 298 IWMI 77 103 Global Crop Diversity Trust 63 1,677 IITA 57 28 ILRI 53 - CIMMYT 20 - ICRAF 14 - ICARDA - 32 International Potato Center Audited Financial Statements December 31, 2016 Total CGIAR Centers 637 2,138 Accounts receivable to CGIAR Centers comprise the following:
2016 2015 IFPRI 209 - CIAT 144 298 IWMI 77 103 Global Crop Diversity Trust 63 1,677 IITA 57 28 ILRI 53 - CIMMYT 20 - ICRAF 14 - ICARDA - 32 Total CGIAR Centers 637 2,138
Note 5 - Accounts Receivable - Employees
2016 2015 Loans 218 170 Advances 176 138 Total Accounts Receivable - Employees 394 308
Note 6 - Accounts Receivable - Others
2016 2015 Taxes 270 99 Institutions 238 163 Subtotal Others 508 262 CGIAR Centers - Hosted Centers 43 28 CGIAR Centers - Others 41 - Total Accounts Receivable - Others 592 290
Other CGIAR Center comprise the following:
2016 2015 ICRAF 27 3 Bioversity 16 - CIAT - 25 Total CGIAR Centers - Hosted Centers 43 28 CIAT 22 - CYMMIT 19 - Total CGIAR Centers - Others 41 -
17
International Potato Center Audited Financial Statements December 31, 2016
Note 7 – Inventory
2016 2015 Laboratory and field supplies 71 122 Office supplies 4 3 Spare parts & other 3 50 Total Inventory 78 175
Note 8 - Advances
2016 2015 Projects 2,196 2,954 Suppliers 52 130 Total Advances 2,248 3,084
Advance to Projects comprise the following:
2016 2015 IITA 245 174 CIAT 150 - CIMMYT 111 - Bioversity - 200 ILRI - 42 Total CGIAR Centers 506 416 Others 1,690 2,538 Total Advance to Projects 2,196 2,954
18
International Potato Center Audited Financial Statements December 31, 2016
Note 9 - Property and Equipment, net
The balances of cost and accumulated depreciation are as follows:
2016 2015 Physical Furnishing Intangible Fixed Assets Infraestructure Facilities and Equipment Assets in progress Total Total I. COST Balance: January 1 2,943 1,602 16,289 990 - 21,824 23,021 Current Period: Additions 381 205 832 - 356 1,774 1,342 Other (302) 378 (86) - 8 (2) (48) Inventory adjustments - (4) (4,859) - (8) (4,871) (1,652) Disposals (13) (424) (302) - - (739) (839) Balance: December 31 3,009 1,757 11,874 990 356 17,986 21,824
II. ACCUMULATED DEPRECIATION Balance: January 1 (1,039) (1,094) (14,602) (231) - (16,966) (17,071) Current Period: - Additions (425) (232) (1,168) (99) - (1,924) (2,219) Other 35 108 (142) - - 1 14 Inventory adjustments - 4 4,396 - - 4,400 1,557 Disposals 12 396 310 - - 718 753 Balance: December 31 (1,417) (818) (11,206) (330) - (13,771) (16,966)
III. NET BOOK VALUE 1,592 939 668 660 356 4,215 4,858
The annual rates for depreciation charges are as follows:
(i) Physical Facilities 33 years (ii) Farming equipment 7 years (iii) Scientific and Laboratory Equipment 5 years (iv) Office equipment, furniture and fixtures 5 years (v) Mainframe, servers, network systems, and telecommunication equipment 5 years (vi) Vehicles 4 years (vii) Software Costs and intangible assets 4 and 10 years (viii) Computer and personal computing peripherals 3 years
For the year ending December 31, 2016 CIP recorded depreciation on Property, Plant and Equipment unrestricted in the amount of US$0.9M (US$1.43M in 2015).
During the year, the purchases of restricted fixed assets were of US$1.02M (US$0.77M in 2015). Such assets were depreciated at a rate of 100% in 2016.
As a result of the reconciliation of the inventory of fixed assets, in 2016 CIP disposed fixed assets totally depreciated for a net amount US$0.47M.
19
International Potato Center Audited Financial Statements December 31, 2016
Note 10 - Accounts Payable - Donors
Grants received in advance, applicable to succeeding periods, are as follows (See Exhibit 1):
2016 2015 Restricted 18,140 17,835 Unrestricted - 3 Total Accounts Payable - Donors 18,140 17,838
Note 10a – Accounts Payable Other – CGIAR Centers
Accounts payable other to CGIAR Centers comprise the following:
2016 2015 CGIAR System Organization 8,410 1,480 ILRI 104 - IITA 61 990 IFPRI 56 157
Global Crop Diversity Trust 6 -
CIAT - 970 Bioversity - 940 Total CGIAR Centers – CRP 8,637 4,537 CIMMYT 19 - CIAT 13 - CIFOR 6 58 ICRAF - 2
Total Hosted Organizations 38 60
CGIAR – System Management Office 114 335 Total Accounts Payable Other – CGIAR Centers 8,789 4,932
Note 11 – Accounts Payable Employees
Comprise the following: 2016 2015 Provision for IRS repatriation costs 1,131 1,120 Vacations for NRS-HQ 633 616 Severance Indemnities for RRS-HQ 85 20 Severance Indemnities for NRS-HQ (CTS) 66 62 Salary - 100 Indemnities for NRS - 175 Total Account Payable Employees 1,915 2,093 Less: Current portion of Account Payable Employees - (100) Account Payable Employees, non-current 1,915 1,993
20
International Potato Center Audited Financial Statements December 31, 2016
As of December 31, 2016, the balances include the following provisions for vacations in accordance with Peruvian labor law and IRS according to CIP’s policies.
Note 12 - Accounts Payable - Others
2016 2015 Suppliers 3,412 2,817 Deferred income 516 - Taxes 120 116 Institutions 46 160 Research contracts - 36 Other 312 305 Total Accounts Payable - Others 4,406 3,434
Deferred income corresponds mainly to the Al-Sumait prize for Africa Food Security received CIP’s work in introducing vitamin A rich orange flesh sweetpotato in Sub-Saharan African.
Note 13 – Accruals and Provisions ST
2016 2015 Other Provision NRS and RRS 2 65 Training - 63 Other Provisions 463 235 Total Accruals and Provisions ST 465 363
As of December 31, 2016, other provisions include accruals for materials, supplies and services.
Note 14 - Net Assets
Unrestricted net assets are the amount set aside for the Center’s use with no restrictions by donors. Unrestricted net assets are broken down between designated and undesignated.
Designated Net Assets includes the acquisition cost, net of the depreciation charges of property and equipment and replacement costs.
Undesignated Net Assets is the amount accumulated out of the operating surplus, designated to provide the necessary cash to meet the Center's on-going commitments and obligations whenever contributions are delayed within the year.
21
International Potato Center Audited Financial Statements December 31, 2016
Note 15 – Revenue and Gains
Revenue from Grants 2016 2015 W1/2 W3 Bilateral Total W1/2 W3 Bilateral Total
Unrestricted - 4,849 295 5,144 - 3,617 297 3,914 Restricted CRP - Roots, Tubers & Bananas 14,084 20,462 9,643 44,189 20,462 13,073 8,693 42,228 CRP - Drylands 8 - - 8 108 42 - 150 CRP - Humidtropics 107 - - 107 280 - - 280 CRP - Policies, Institutions & Markets 804 138 178 1,120 715 - 49 764 CRP - Agriculture for Nutrition & Health 180 338 - 518 302 1,382 - 1,684 CRP - Water, Land and Ecosystems 185 376 - 561 231 286 517 CRP - Climate Change, Agriculture & Food Security 28 219 - 247 437 236 6 679 Genebank 4,456 9 295 4,760 3,809 - 1,730 5,539 Non - CRP - 1,002 528 1,530 800 64 864 Total Restricted 19,852 22,544 10,644 53,040 26,344 15,819 10,542 52,705
Total Grant 19,852 27,393 10,939 58,184 26,344 19,436 10,839 56,619
Other Revenues and Gains comprise the following:
2016 2015 Reversal of provision 315 1,489 Donations 74 - Consultancy Income 26 46 Revenue from other Service Units 14 24 Reimbursement Insurance 4 291 Other (includes revenue of hosting agreement: Cifor, Icraf, Condesan) 82 70 Total Other Revenues and Gains 515 1,920
Note 16 – Expenses by Natural Classification
The expenses are classified as follows: 2016 2015 Restricted Restricted Unrestricted TOTAL Unrestricted TOTAL CRP Non-CRP CRP Non-CRP Expenses by Function Personnel Costs 9,256 15,327 603 25,186 9,593 13,565 618 23,776 Resources not allocated ------Collaborators - CGIAR Centers - 8,165 - 8,165 - 12,537 - 12,537 Other Collaboration 1,021 6,065 - 7,086 982 5,173 - 6,155 Supplies and Services (443) 13,609 514 13,680 (511) 12,484 185 12,158 Travel 952 1,910 44 2,906 1,101 2,003 36 3,140 Depreciation 909 861 154 1,924 1,448 769 - 2,217 System Cost (CSP) 6 690 9 705 135 289 18 442 Subtotal Expenses and Losses 11,701 46,627 1,324 59,652 12,748 46,820 857 60,425 Indirect Cost Recovery (5,090) 4,883 206 (1) (5,025) 5,021 7 3 Total Operating Expenses 6,611 51,510 1,530 59,651 7,723 51,841 864 60,428
22
International Potato Center Audited Financial Statements December 31, 2016
Note 17 - Program Research Expenses
Program Research expenses includes the following categories on the Statement of Activities: Research Expenses (US$36.2M), CGIAR Collaborator Expenses (US$8.2M) and Non CGIAR Collaborator expenses (US$7.1M).
The expenses incurred are as follows:
2016 2015 Research 48,014 47,517 Research support (a) 3,479 4,815 Total Research Expenses 51,493 52,332
(a) Research support covers activities carried out in direct support to research activities.
Note 18 – Collaborators - CGIAR Centers
Corresponds to expenses incurred by Partner CGIAR Centers which have been reported to CIP (Lead Center of CRP RTB). The total on this account equals the total revenue that the Lead Center has recognized on behalf of the Partner Center.
In 2016 the amount disclosed in this report represents the expenses reported by the CRP CGIAR Participating Centers as follows: Bioversity US$2.66M (US$4.58M in 2015); CIAT US$1.84M (US$3.38M in 2015); IITA US$2.84M (US$4.58M in 2015) and CIRAD US$0.82M.
Note 19 - Management and General Expenses
According with the accompanying statements of activity the Management and general expenses components are as follows: Director General Office, Board of Trustees, CFO Office (Excluding Project Accounting), COO Office, Human Resources, Grants & Contracts (Institutional support), Corporate Specialized Services, Internal & External Audits, Corporate Insurances, Health and Safety, ITU (General institutional support and OCS), Communications & Public Awareness (CPAD), Resources mobilization, External Relations, Visitors & Events Office, Legal and Intellectual Property, Regional Offices Administrative Costs, Core Strategic Research Activities. 2016 2015 Management and General Expenses 6,603 5,956
Note 20 - Indirect Costs Rate Computation:
In 2016 the indirect cost reached U$6.6M (U$5.96M in 2015). The indirect cost ratio over research cost in 2016 was 18.2% (17.7% in 2015). The blended indirect cost ratio over total expenditures reached 13.2% (13% in 2015), while the indirect cost ratio over direct costs, represented 15.2% (15% in 2015), as disclosed in Exhibit 3. 2016 2015 In House Partner Total In House Partner Total General & Administration 6,603 - 6,603 5,956 - 5,956 Research 36,242 7,086 43,328 33,640 6,155 39,795 Indirect Cost Rate 18.2% - 15.2% 17.7% - 15.0%
* The cost category "CRP Collaborator Costs - CGIAR Centers" is excluded from this computation.
23
International Potato Center Audited Financial Statements December 31, 2016
Partnerships within CGIAR centers are a growing part of CGIAR business, and incur the same level of overhead as in-house Research and other regular partners. Therefore, the overhead cost calculation has been done on in-house research costs and regular partner.
Note 21 – Financial risk managements
CIP is committed to promoting a risk management culture and developing and maintaining a framework, processes, and structures to formally and systematically identify, assess, and manage risk. In 2015 the Board of Trustees (BOT) approved the Risk Management Framework Policy, which sets CIP’s risk management principles and practices, and institutional evaluation criteria and parameters to guide management on risk taking.
CIP’s appetite for risk is based on institutional evaluation criteria intended to guide the Board of Trustees, management and staff in their ability to accept or (not accept) risks. CIP’s appetite for risk in each category on its Risk Inventory is as follows:
Comprehensive risk assessment addresses the following areas: loss of reputation for scientific excellence and integrity; non-delivery of expected outcomes and impact; misappropriation of intellectual property; business disruption and financial sustainability. Risk dimensions taken into account are:
1. Impact: Defined as the severity of the exposure to the Center if a risk event occurs. 2. Likelihood: The probability of a risk event occurring, given what is known about the degree or quality of the risk mitigation strategies already in place.
To monitor and mitigate the risk, besides the risk management framework policy, CIP also has in place a risk management guideline describing effective risk management processes related to the establishment of the proper context; identification, analysis and evaluation of risks; and the development of risk management strategies. To ensure capital preservation, CIP also follows a risk portfolio investment policy, which provides guidelines for the prudent investment of funds held by CIP. Investment decisions always prioritize preservation of capital ahead of maximization/optimization of investment returns.
24
9
15 31 49 - - -
110 273 297 108 280 684 302 231 437 455 800 420 805
3,507 3,617 3,354 5,843 7,528 20,462 26,344 15,445
8 8
15 12 28 - - 120 272 295 107 792 180 185 424 603 177
4,729 4,849 3,429 9,574 1,002 2,265 1,235 7,953 14,084 19,852 22,206
Total 2016 2016 Total 2015 Total
(4) (2)
------(12) - - - - - (22)
(228) (465) (104) (198) (8,212) (8,428) (8,730) (5,292)
(14,841) Advances Advances Payment of Payment
56 14 67 77 14 ------
120 228 1,727 1,847 1,230 2,106 1,465 4,801 Accounts Accounts Receivable
8 8
(2) 15 51 14 - -
198 198 272 295 804 113 108 426 603 199 624
3,002 3,002 3,433 1,339 22,296 28,052 18,304 11,780 32,246
Funds Funds Available
(US$ 000) 000) (US$ Year Ended 31 December 2016 2016 December 31 Ended Year Total Restricted - W1 &W2 -W1 Restricted Total Total Unrestricted -Bilateral Unrestricted Total Total Unrestricted -3 Window Unrestricted Total Statement of Grant Revenue - Exhibit 1 1 Exhibit - Revenue Grant of Statement Total Restricted -W3 Restricted Total
DepartmentforInternational Development (DFID) GovernmentofChina GovernmentofPhilippines GovernmentofTurkey IrishAid DrylandSystemson 1.1 -CRP ResearchProgram CGIAR 1.2 -CRP Humid onTropics ResearchProgram CGIAR Policies,on ResearchProgram CGIAR Institutions2 -CRP Markets and Policies,onICRAF CRP Institutions2 -CRP Markets and Agricultureon NutritionResearchProgram for CGIAR 4 HealthCRPand- 5 EcosystemsCRP-and Land Water, on ResearchProgram CGIAR Climateon ResearchProgram Change,CGIAR Agriculture7 CRP- FoodSecurity and Program Genebanksfor ResearchProgram CGIAR 2016 - Cryobanking2013 forStrategy Recommendation(RAP)Action PLan -BreedingGenderand 3.4 CRP- Bananas andRoots, Tuberon ResearchProgram CGIAR KnowledgeManagement 3.4 CRP- Bananas andRoots, Tuberon ResearchProgram CGIAR BillMelindaFoundation & Gates GovernmentofChina GovernmentofIndia InternationalFundAgriculturalfor Development (IFAD) InternationalLivestock ResearchInstitute (ILRI) (USAID)- UnitedStatesAgencyInternational for Development (USAID) DONORS Unrestricted - Window-3 Unrestricted Bilateral - Unrestricted &W2 -W1 Restricted -W3 Restricted International Potato Center Center International Potato December 2016 31, Statements Audited Financial
25
3
42 34 15 50 39 39 ------
185 189 374 112 376 148 260 339 111 675 675 128 128
2,496 2,496
1 5 7
(8) 49 15 79 17 32 32 52 52 67 67 29 29 ------
155 183 338 214 179 481 343
1,410 1,410 Total 2016 2016 Total 2015 Total
(5) (1) (4) (9)
- - - (53) - - - - - (43) - - (71) (30) - -
(128) (155) (286) (278) (480) Advances Advances Payment of Payment
(51) 9 9 8 96 82 63 24 60 20 20 37 ------178 126 242 242 Accounts Accounts Receivable
6 1
(8) 29 29 12 60 59 ------
123 123 101 160 100 143 267 208 418 319 293 357
(261) 1,648 1,648 Funds Funds Available 253
(US$ 000) 000) (US$
Year Ended 31 December 2016 December 31 Ended Year Statement of Grant Revenue - Exhibit 1 1 Exhibit - Revenue Grant of Statement Total Challenge Programs - W3- Challenge Programs Total CIAT - International-CIAT CenterAgriculture Tropicalfor (HarvestPlus) IFPRI-International FoodPolicy ResearchInstitute (HarvestPlus) Foundation 2BLADES AfricanAgriculture Technology Foundation AsociaciónPataz BillMelindaFoundation & Gates Zone Lake- Agricultural DevelopmentResearchand BillMelindaFoundation & Gates Centro- Internacional deMejoramientoTrigo y deMaiz (CIMMYT) BioforskNorwegian- Institute AgriculturalforEnvironmental and Research CanadianInternational Development Agency (CIDA) ComissionEuropean ComissionEuropean Agenzia- Nazionale perle Nuove Tecnologie, elo Sviluppo L'Energia SostenibleEconomico (ENEA) FederalRepublic ofNigeria -Federal MinistryofAgriculture Development Rural and (FMARD) AgricultureFoodand Organization ofUnitedTheNations (FAO) Agricultural Gansu University (GAU) DiversityGlobalCrop Trust GovernmentofAustria GovernmentofFinland Government-Federalof DevelopmentGermany Coop. and MinistryforEconomic (BMZ) GTZ and Government-InternationalTheof Germany Centre ofInsect Physiology Ecology and (ICIPE) GovernmentofOdisha Directorate-ofHorticulture ICRISAT | GovernmentofSpain Instituto - deInvestigaciones Agropecuarias(INIA) Spain- GovernmentofRepublicThe ofKorea HebeiCollegueNorth HelenKeller International InternationalFoodPolicy ResearchInstitute (IFPRI) International Potato Center Center International Potato December 2016 31, Statements Audited Financial DONORS Challenge Programs -W3 ChallengePrograms -Bilateral Restricted
26
50 18 13 46 18 20 10 40 40 - - - - (37) ------
194 156 916 200 173
1,904 1,993 56,619 56,619 10,542
18 32 13 ------
463 463 126 156 156 271 207 107 103
1,972 1,534 2,514 58,184 58,184 10,644
Total 2016 2016 Total 2015 Total
(5) (2) (5)
- - - - (61) - - - (24) - - - - (54) - - - - -
(804) (368) (253) (114) (224) (3,508)
Advances Advances
Payment of Payment 34 34 53 42 53 54 34 ------122 1,244 2,419 9,507 (26,777) 9,507
Accounts Accounts Receivable
5 5
32 99 50 13 (34) ------(34)
687 687 187 103 156 273 460
2,776 1,902 1,270 11,898 11,898 75,454 11,733
Funds Funds Available
TOTAL (US$ 000) 000) (US$ ear Ended 31 December 2016 2016 December 31 Ended ear Y Total Restricted -Bilateral Restricted Total Statement of Grant Revenue - Exhibit 1 Exhibit - Revenue Grant of Statement Total Challenge Programs -Bilateral Challenge Programs Total Harvest PlusHarvest InternationalFundAgriculturalfor Development (IFAD) InternationalFundAgriculturalfor Development (IFAD) CommissionEurpean- InstitutoNacional deInvestigacion (INIA) Agraria Nacional deInnovacion -Programa (PNIA)Agraria IITA-International Institute ofAgricultureTropical -InternationalILRI Livestock InstituteResearch (CGIAR) IrishAid UniversityStateMichigan -Bill MelindaFoundation Gates & CarolinaNorthUniversity State PhilippineCounsil Agriculture,for -Visayas NRFRD UniversityState SwissAgencyforDevelopment Cooperationand (SDC) SyngentaProtection Crop AG SyngentaFoundation Sustainablefor Agriculture TheBeiraAgriculturalCorridor Growth ThompsonTheInstituteBoyce forPlantNational Research- Science Foundation (NSF) Foundation TheMcknight TheMinistryofAgriculture, FoodSecurityCooperatives and TheRegents oftheUniversity ofCalifornia VegetableTheWorld Center (AVRDC) -ACIAR UnitedStatesAgencyInternational for Development (USAID) UniversalIndustries Limited -UnitedStates Agency forInternational Development (USAID) VirginiaPolytechnic Institute StateUniversityand (Virginia Tech)-Bill Melinda Gates & Foundation WageningenUniversity CongressPotato(WPC)Inc.World DONORS International Potato Center Center International Potato December 2016 31, Statements Audited Financial
27
Total Total 117,229 117,229 117,337 Expenditure 6,493 6,493 1,403 1,403 3,910 1,861 5,771 1,995 1,995 1,643 1,643 43 43 1,481 108 108 19,442 603 21,526 156,211 156,211 8 28 12 972 107 185 8 8 Expenditure 68 28 12 3,429 4,456 14,016 14,016 14,084 792 180 107 185 424 603 Current Year Year Current 19,852 19,852 31 6,465 1,395 4,799 1,888 1,458 - - Prior Years Years Prior 103,213 103,213 103,253 Expenditure 40 6,465 1,395 3,118 1,681 1,888 1,458 31 1,057 16,013 16,013 17,070 136,359 136,359 43 6,493 1,403 5,771 1,995 1,643 117,342 117,342 117,450 6,493 6,493 1,403 3,910 1,861 1,995 1,643 43 1,482 108 108 19,442 603 21,527 156,325 156,325 Grant Pledge Grant Grant Period Grant Jul 2012 - Dec 2016 -Dec Jul2012 Jan 2012 - Jun-2016 2012 Jan Jan 2012 - Dec 2016 -Dec 2012 Jan 2016 -Dec 2011 Jan 2016 -Dec 2012 Jan 2016 -Dec 2012 Jan 2016 -Dec 2012 Jan 2016 -Dec 2011 Jan 2016 Dec - 2013 Oct 2016 -Dec 2016 Jan Mar 2015 - Dec 2016 -Dec 2015 Mar 2017 Mar - 2014 Dec
(US$ 000) 000) (US$ Year Ended 31 December 2016 2016 December 31 Ended Year Subtotal Restricted - W1 &W2 - W1 Restricted Subtotal Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted CGIAR Research Program on Roots, Tuber and Bananas Bananas and Roots,Tuber on Program Research CGIAR AgreementAward GenderGrant forPostdoctoralFellowship Climateon Program ResearchChange, CGIAR Agriculture FoodSecurityand SystemsDrylandon Program Research CGIAR Policies,on Program Research CGIAR InstitutionsCRP2-004 Markets and Agricultureon Program NutritionforResearch CGIAR HealthCRP4-004 and TropicsHumid on Program Research CGIAR Ecosystemsand Land Water, on Program Research CGIAR ValueChaintool needs assessment Genebanksfor Program Research CGIAR Genebanksfor -CryobankingProgram Research2013-2016 for StrategyCGIAR Genebanksfor -RecommendationProgram Research CGIAR ActionPlan
DONORS & PROJECTS Restricted - W1 &W2 - W1 Restricted Fund CGIAR fundedby Programs Research CGIAR ORGANIZATION SYSTEM CGIAR 1251-CGIA Agriculture Tropical for Center -International CIAT 1114-CIAT Areas Dry thein Research Agricultural for Center -International ICARDA 1141-ICAR Institute Research Policy Food -International IFPRI 1142-IFPR 1144-IFPR Agriculture Tropical of Institute -International IITA 1152-IITA Institute Management Water International IWMI- 1138-IWMI Centre Agroforestry -World ICRAF 1245-ICRA Trust Diversity -GlobalCrop GCDT 1124-GCDT 1193-GCDT 1273-GCDT 1134-CGIA International Potato Center Center International Potato December 2016 31, Statements Audited Financial
28
Total Total Expenditure 1,479 3,526 71 1,289 24 2,635 2,635 1,838 1,838 2,989 3,671 1,285 1,285 10,447 10,447 17,806 Expenditure 1,869 4,824 9,574 1,002 1,002 1,713 2,265 1,235 1,235 24 24 177 177 177 Current Year Year Current Prior Years Years Prior Expenditure 1,657 5,623 8,232 1,633 1,633 1,661 1,661 1,276 1,406 50 50 4,000 4,000 2,863 2,863 1,860 1,860 3,300 6,818 4,283 4,283 21,644 21,644 46,207 Grant Pledge Grant Grant Period Grant Jul 2013 - Jul 2016 1,479 886 593 -Jul 2016 593 Jul 2013 886 1,479 Oct 2015 - Jan 2017 86 62 9 9 2017 -Jan 62 2015 Oct 86 970 966 2018 -Oct 4 2015 Oct 5,000 Jun 2014 - Jul- 2019 Jun2014 Oct 2016 - Sep- 2019 2016 Oct 2,386 Apr 2014 -Mar 2017 -Mar 2014 Apr 2017 -Dec 2014 Jan 2017 -Mar 2014 Jan Sep- 2018 2015 Oct Dec 2015 - Dec 2018 1,400 - 169 169 169 169 2018 -Dec 2015 Dec 1,400 - 369 369 2018 -Dec 2015 Dec 1,918 - Nov 2015 - Dec 2019 11,612 - 1,289 1,289 2019 -Dec - 11,612 Nov 2015 Mar 2007 - Mar 2017 -Mar 2007 Mar May 2015 - May 2018 200 130 14 144 144 14 130 200 2018 -May 2015 May
(US$ 000) 000) (US$ Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted BuildingEconomically an Sustainable, Integrated Seed Systemin Cassava for FoodResilience Coastalinand CropsUplandTuber and Root Through Programme for StrengtheningforProgramme Innovation Improveto Income, FoodSecurity DeterminationUganda inand Tanzania Value Ghana ChainJumpstart SweetpotatoActionHealthSecurity infor Africa& II(SASHA II) commoditydiversification a perspective inthree priority states SecurityinNigeria Tanzania and Nigeria Improvement Crop Seedand Systems SupportingpreparationofworkCCCAP in China Varietalimprovement bioticfor ofpotato resistance, enriching ofgermplasm Expandingutilization reducingtheirand post-harvestof RTB losses Communitiesofthe Asia-Pacific Resilienceand ProducersofPotato Communitiesofthe Asia- Pacific (FOODSTART+) Sweetpotatoand TransformingPotato FoodforSecurity, Nutrition and RemoteSensingmonitoring Smallholder's a Toolforas CroppingArea understandstudytosweetScopyngthe and importance of potato from potato BuildingNutritious FoodBaskets:Scaling Biofortified up NutritionforCrops NextGenPhytosanitation: EliminationRapid ofVirusesPlants for RTB from FoodResilience Coastalinand CropsUplandTuber and Root Through International Potato Center Center International Potato December 2016 31, Statements Audited Financial DONORS & PROJECTS 1265-BMGF 1284-IFAD 1272-IFAD Restricted -W3 Restricted (BMGF) MelindaFoundation Gates Billand 1196-BMGF 1223-BMGF 1230-BMGF 1256-BMGF 1264-BMGF 1295-BMGF ChinaofGovernment 1078-CHI0 India ofGovernment 1016-GOI0 Development(IFAD) Agricultural for Fund International 1215-IFAD 1247-IFAD (ILRI) Institute Research Livestock -International ILRI 1262-ILRI
29
Total Total Expenditure 2,746 1,436 2,151 2,267 1,209 3,210 18 404 404 246 14,099 498 955 955 41,334 41,334 Expenditure 53 1,193 1,368 2,497 7,953 312 312 158 812 155 183 183 Current Year Year Current 22,206 22,206 Prior Years Years Prior Expenditure 2,434 6,146 246 246 193 624 958 899 713 343 772 772 19,128 19,128 3,001 3,001 2,250 3,000 5,105 4,925 440 440 246 23,057 515 955 955 1,470 1,115 338 1,453 1,453 338 1,115 1,470 85,088 85,088 Grant Pledge Grant
2 Grant Period Grant Aug 2016 - Jul 2017 900 - 117 117 117 117 -Jul 2017 2016 Aug 900 - Oct 2015 - Sep 2017 2,000 79 1,130 1,130 Sep - 2017 79 2015 Oct 2,000 18 Sep- 2019 2016 Oct 390 - 498 155 343 2016 - Dec 2014 Jan 515 Oct 2010 - Sep- 2017 2010 Oct 2016 Dec - 2012 Oct Sep- 2017 2014 Oct Sep- 2017 2014 Oct Sep- 2017 2014 Oct Sep- 2017 2015 Oct 2016 -Dec 2012 Jan Dec 2013 -Sep2016 2013 Dec Jun 2016 - May 2017 800 - 295 295 295 295 2017 -May 800 - Jun 2016
(US$ 000) (US$ Subtotal Restricted -W3 Restricted Subtotal Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit Exhibit Revenue- Grant Restricted Subtotal Challenge Programs -W3 Challenge Programs Subtotal FeedtheFleshedOrangeFuture Rwanda Sweet (OFSP)Potato Incomeforand EmergencyResponse withSweetpotato and Potato drought-affected among inSouthernResilient, Impacts MitigationMozambique Through Drought BiofortifiedVarietiesPotato helpto overcome MalnutritionMicronutrient in Late Blight SweetpotatoLate / Weevil 3.4 CRP Linkage Program US-CGIAR improveProductionPotato to FoodSecurity inTajikistan NutritionActivity farmersinSNNP Region, Ethiopia Tajikistan-Phase II NutritiousSweetpotato (HarvestPlus) SouthAfricaAsia,Africaand AgreementEast #5322 DevelopingDeliveringand Biofortified (HarvestPlus) inCrops Uganda Potato Production Support and Research to ImproveResearchto ProductionPotatoandFood SecuritySupport in Khatlon,
DONORS & PROJECTS United States Agency for International Development(USAID) International for Agency UnitedStates 1111-IBRD 1202-USAI 1204-USAI 1235-USAIViable The Sweetpotato Technologies inAfrica (VISTA) Mozambique 1236-USAIViable The Sweetpotato Technologies inAfrica (VISTA) Tanzania 1238-USAIViable The Sweetpotato Technologies inAfrica (VISTA) Malawi 1261-USAI 1267-USAI GeneticImprovement Swetpotatoinand Potato 1285-USAI 1293-USAI ChallengePrograms Agriculture Tropical for Center -International CIAT 1232-CIAT Institute Research Policy Food -International IFPRI 1122-IFPR 1292-USAI International Potato Center Center International Potato December 2016 31, Statements Audited Financial
30
Total Total Expenditure 49 49 15 15 32 32 32 32 52 52 1,073 1,073 323 323 214 1 1 Expenditure 49 49 15 29 32 52 214 214 Current Year Year Current (8) (8) ------Prior Years Years Prior Expenditure 31 1,081 1,081 294 294 37 37 72 1,245 1,245 300 300 300 467 323 424 478 Grant Pledge Grant Grant Period Grant Oct 2016 - Sep 2019 467 - 15 15 Sep- 2019 2016 Oct 467 - 323 29 294 2016-Apr 2013 Apr 323 32 2017 -Dec 2016 Jan 72 - 52 2020 -Jan Feb 2016 478 - Jan 2016 - Dec 2018 -Dec 2016 Jan Dec 2015 - Dec 2017 424 - 214 214 214 214 2017 -Dec 424 2015 - Dec Jan 2014 - May 2016 -May 2014 Jan May 2011 - Feb 2018 37 31 1 1 31 -Feb 2018 37 2011 May
(US$ 000) 000) (US$ Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted Developmenttestingand withoftransgenicpotato resistance bacterialtowilt Evaluacionselecciony declones mediante seleccionla varietal participativa Increaseto Supportsweetpotato productivity improvedfor foodsecurity understandingGENNOVATE: addressingand barriersto gender as norms DesarrollodeInnovaciones laSeguridad Alimentariapara Nutricionaly enlas Linkinggenetic resources, genomes phenotypesand ofSolanaceous crops ComplementaryBlighttheLate ResistancePotatosupport to Project usinggenespflp hrap and BB usandoel& diseño Mama (LZARDI) scale adoption at dezonasintegracion fronteriza Peru-Bolivia (INPANDES) (G2P-SOL) NigeriaSweetPotato International Potato Center Center International Potato December 2016 31, Statements Audited Financial DONORS & PROJECTS Restricted -Bilateral Restricted Foundation 2BLADES 1288-BLAD Foundation Technology Agriculture African 1297-AATF Pataz Asociación 1100-AP00 MelindaFoundation Gates Billand 1197-LZAR (CIMMYT) Trigo y deMaiz de Mejoramiento Internacional Centro 1291-CIMM Comission European 1271-EC00 1283-ENEA Development Rural and Agriculture of FederalMinistry 1218-NFM0 European Comission - Agenzia Nazionale per le Nuove Tecnologie, L'Energia e lo Sviluppo e lole per NuoveTecnologie,Nazionale L'Energia -Agenzia Comission European Sostenible (ENEA) Economico
31
Total Total 5 5 5 Expenditure 1,261 99 1,795 1,877 1,877 1,454 1,137 98 89 37 3,577 291 291 5 5 7 7 Expenditure 37 1,410 179 179 221 481 460 Current Year Year Current - - - Prior Years Years Prior Expenditure 1,040 1,314 1,870 1,870 2,167 112 112 994 1,000 1,000 28 1,327 1,973 2,162 2,162 1,454 4,596 319 319 Grant Pledge Grant Grant Period Grant Jan 2015 - Jan 2016 98 93 5 5 2016 -Jan 93 2015 Jan 98 Jan 2014- Dec 2016 Dec 2014- Jan Jun 2015 - Feb 2017 200 112 54 166 166 54 112 Feb - 2017 Jun 2015 200 5 Sep - 2019 2016 Oct 28 - 398 2017 Mar 739 2014- Apr 1,388 762 458 2017 -Dec 304 2015 Jan 1,248 52 -Sep 2016 37 2015 Jan 89 Jan 2011 - Dec 2017 -Dec 2011 Jan Dec 2015 - Dec 2018 800 - 125 125 125 125 2018 -Dec 800 2015 - Dec 435 186 249 - Sep 2017 2013 547 Dec Nov 2013 - Dec 2016 99 25 74 74 25 2016 - Dec 99 Nov 2013 Aug 2004 - Dec 2016 -Dec Aug2004 Aug2018 - Sep2016
(US$ 000) (US$ Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted Adoptiondiffusionvarietyand potato in China: Spatial variabilityofC88 of CIPexpert part-time as professor advisoryin an physiologycondition crop on GlobalSystem Project-Introduction of Safety duplicates intothe Sustainablewild usecrop ofpotatorelatives development(CWR)and pre- ofa ImprovedSoil Fertility forSustainable Management Intensification inPotato AccelerationtheDevelopment ofEarly-Maturing-Agile FoodforPotato Mid-AltitudetoIntroductionTolerant Potatoof Heat CroppingSystems in WesternKenyan ActionSites Consortiumof theResearchProgram CGIAR productivitysavingsvalue andcost gainsanddevelopment chain Bhutan and Agricultural Gansu University at (GAU) SweetpotatoGrant Term Long internationalcollections breedingcollection core with key climate change-related traits deformaciónde Doctores Programa Genebank GIZ Support BasedSystems in EthiopiaKenya and Observation Trait DiscoverySecurity and a Network through Humidtropics Promotionofnutrition -sensitive valuepotatoAfrica chainsinEast W2B-PR-23 Biodiverse NutritiousW2B-PR-23 and ImprovementPotato Peru, Nepal across Improvingfoodnutrition and security inKenya: Implementing evaluatingand FoodPartnership-Potatothe German Initiative Africa(GFP-PIA) Pilot Phase DONORS & PROJECTS 1188-GIZ0 Food and Agriculture Organization of the United Nations (FAO) UnitedNations the of Organization Agriculture and Food 1249-FAO0 (GAU)University Agricultural Gansu 1296-GAU0 Trust Diversity -GlobalCrop GCDT 1125-GCDT 1211-GCDT 1217-GCDT Spain ofGovernment 1005-INI0 (GTZ) Cooperation Technical German and Development(BMZ) and Cooperation Economic for -FederalMinistry Germany ofGovernment 1220-GIZ0 1240-GIZ0 1244-GIZ0 1294-GIZ0 1275-FAO0 1241-GIZ0 International Potato Center Center International Potato December 2016 31, Statements Audited Financial
32
Total Total Expenditure 53 35 10 67 67 61 214 214 898 898 418 516 463 Expenditure 67 10 24 35 10 79 17 17 343 343 343 463 Current Year Year Current - - - - Prior Years Years Prior Expenditure 29 50 50 147 147 555 555 408 437 35 452 120 550
1,380 1,380 1,380 1,157 1,384 272 272 110 110 Grant Pledge Grant Grant Period Grant Jun 2013- Mar 2017 272 147 67 214 214 67 147 2017 Mar 2013- Jun 272 Oct 2011 -Feb2016 2011 Oct Dec 2015 - Dec 2017 347 - 181 181 181 181 2017 -Dec 347 2015 - Dec 106 106 2018 -Dec 345 2015 - Dec 61 2018 -Dec 345 2015 - Dec Dec 2013 - Dec 2017 -Dec 2013 Dec 2016 Mar - 2015 Oct 2020 -Dec 2015 Dec 2017 -Apr Sep2015 Dec 2015 - Dec 2018 347 - 115 115 115 115 2018 -Dec 347 2015 - Dec Jun 2014 - May 2017 -May 2014 Jun US$ 000) 000) US$ ( Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted Uso efectivo Uso delenel agua cultivo el Mejorandoenáridas: zonasde papa manejodel riego mediante el monitoreo enfrentardel alpara estatus hídrico Viromaenelde lapapa Perú fortalecimientoy delas capacidadesde INIA y Developmentimplementationand sustainable surveillanceofa and IPM theforinvasive program leaf tomato miner,absoluta(Meyrick), Tuta in North deCaracterizaciónpoblaciones dePhytopthora infestans Ralstoniay ensolanacearumtresregiones agroecológicasdel Perúfortalecimientoy de lascapacidadesdel elINIA monitoreopara continuode los principales Desarrollodemétodos dediagóstico fitosanitario (DAS-ELISA, secuenciamientodefragmentos pequeños deRNA (sSRSA) PCR)para y incrementarladistribución, repatriacióndeuso ysemillas olluco,de oca, enfrentarel riesgo deenfermedades emergentes elpor calentamiento global and sub-Saharan Africasub-Saharan(ICIPE)and GeneratingadvancesinNutrition Income and sweetpotatothrough (GAINS) Activitiessecondedof RDA scientist Kwon2012 for Dr.Min DevelopmentofSweetpotato lines with highresistance environment to Internationalsystemsin Potato a oncontext: Workshop emphasis on DevelopmentofSweetpotato Lines with ResistanceHigh Environment to GlobalForesightFuturesStrategic and Project–IFPRI patógenosdelapapa CambioClimático enel diagnóstico UNALM detécnicaspatógenosde última con generación para libres yacón y mashua devirus DONORS & PROJECTS 1277-PNIA 1278-PNIA Government of Germany ofGovernment 1194-ICIP Odisha ofGovernment 1225-GOO0 Korea ofRepublic The ofGovernment 1119-RDA0 1228-RDA0 1263-RDA0 1274-RDA0 (IFPRI) Institute Research Policy Food International 1253-IFPR (PNIA) Agraria deInnovacion Nacional (INIA)Programa - Agraria deInvestigacion Nacional Instituto 1276-PNIA 1279-PNIA International Potato Center Center International Potato December 2016 31, Statements Audited Financial
33
Total Total Expenditure 2,007 1,994 2,359 6,955 2,350 2,450 47 126 126 617 617 313 313 100 746 557 Expenditure 1,972 1,484 50 1,534 47 126 126 156 156 156 156 271 207 126 126 126 126 Current Year Year Current - - - Prior Years Years Prior Expenditure 4,983 50 461 461 461 157 157 866 916 475 350 7,636 7,636 4,013 4,263 2,000 2,510 187 187 617 617 313 313 250 747 Grant Pledge Grant Grant Period Grant Jun 2014 -Jul 2016 Jun2014 Jan 2014- Aug2016 2014- Jan Jan 2014 - Dec 2016 510 350 160 510 510 160 350 2016 - Dec 2014 Jan 510 Apr 2016 - Mar 2017 988 - 595 595 595 595 2017 Mar - 988 - 2016 Apr Jan 2015 -Nov2018 2015 Jan 2020 Dec - 2016 Apr Nov 2015 -Sep 2017 187 Nov 2015 493 2016 -Dec 1,501 Nov 2012 2,115 746 271 475 - Feb 2016 2013 747 Mar Sep 2014 - Aug2018 - Sep2014 May 2012 - Mar 2016 2,009 1,870 137 137 2016 1,870 -Mar 2,009 2012 May 747 2017 1,612 -Mar Nov 2,524 2013
US$ 000) US$ ( Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted (OFSP) AfricaRising --PhaseSystemwide(CGIAR II Livestock Program) Productivity,Technology Develoment Supplyand Chainin Malawi Crop. foodand securitySNNPR, and inEthiopia Tigray Malawi) GermplasmOutcomesImprovementof Crop and PotatoResearch: GenomicToolsSweetpotatofor GTSPI: Improvement wildTargeteduse ofcrop relatives improvedfor abioticstress resistance in seedmanagement germplasm CollaborativeThe Breeding ofFive Tropically AdaptedVarieties Potato Africa RISING going to scaleAfricagoingRISING to inProvince the Eastern of-ThemeZambia 2 PhaseProject:ImprovingIIPotato FoodSecurityPotato Enhanced through NutritiousOrange-fleshed Sweetpotato Niassa:forCombatting Food InsecurityVitamin & DeficiencyA Effective Through Delivery ofBiofortifiedA Scalingsweet-potatoout potato-ledand interventions improveto nutrition AgriculturalforCrops Tuber Transformationandin (RTC-ACTIONMalawi Root Improvetheproductivitypotato bynew seed technology betterand on-farm evaluationThe selectionand tolerancedrought ofofheatand CIPpotato DONORS & PROJECTS 1281-SFSA IITA - International Institute of Tropical Agriculture Tropical of Institute -International IITA 1268-IITA (ILRI) Institute Research Livestock -International ILRI 1226-ILRI Aid Irish 1136-IAI0 1147-IAI0 1209-IAI0 1280-IAI0 University State Michigan 1231-MSU0 UniversityNCSU) ( State Carolina North 1242-NCSU 1243-NCSU AG Protection Crop Syngenta 1203-SCPA Agriculture Sustainable for Foundation Syngenta 1221-SFSA International Potato Center Center International Potato December 2016 31, Statements Audited Financial
34
Total Total Expenditure 18 18 13 13 125 125 125 108 108 103 103 10,507 34,131 Expenditure 18 18 32 32 2,514 13 13 107 107 107 103 103 10,644 Current Year Year Current ------Prior Years Years Prior Expenditure 18 18 76 76 7,993 23,487 23,487
88 88 88 23 23 314 314 314 108 108 108 108 10,543 44,865 287,748 180,089 53,040 233,129 233,129 53,040 180,089 287,748 Grant Pledge Grant Grant Period Grant Jul 2016 -Jul 2017 Jul2016 Sep 2015 -Jul 2017 Sep2015 Jun 2015 - Sep- 2017 Jun2015 Sep 2015 - Dec 2016 -Dec Sep2015 Sep 2009 - Mar 2017 10,543 7,993 2,514 10,507 10,507 2,514 2017 -Mar 7,993 Sep 2009 10,543 Dec 2013 - Mar 2016 -Mar 2013 Dec
US$ 000) 000) US$ ( Total Restricted Projects Restricted Total Subtotal Restricted -Bilateral Restricted Subtotal Year Ended 31 December 2016 2016 December 31 Ended Year Restricted Grant Revenue- Exhibit 2 2 Exhibit Revenue- Grant Restricted Diffusionvarietiespotato uptakeand ofMozambican inthe BeiraCorridor TrainingProject:UnderstandingSeed Potato degeneration inEcuador TrainingProject:UnderstandingSeed Potato degeneration inEcuador IntrogressionTargetedRapidand via ofGenome Traits Elimination dependenceand cerealson (Ethiopia)in SNNPRTigray and PromotingtheIndustry'sDevelopmentPotato inAsiaChina and Exploitingthepotential sweetpotatoand ofpotato reduce foodto insecurity DONORS & PROJECTS The Beira Agricultural Growth Corridor (BAGC) Corridor Growth Agricultural Beira The 1270-BAGC Cooperatives and Security Food Agriculture, of Ministry The 1252-MNTZ Foundation McKnight The 1212-MFO0 CaliforniaUniversityofthe of Regents The 1269-RUC0 Development(USAID) International for Agency UnitedStates 1063-USAI 1290-WPC0 International Potato Center Center International Potato December 2016 31, Statements Audited Financial
35
International Potato Center Audited Financial Statements December 31, 2016
Schedule of Direct and Indirect Cost Rates Exhibit 3 Year Ended 31 December 2016 (US$ 000)
2016 2015
Direct Costs: Research Costs 36,242 33,640 Subagreement Costs - Collaborator Others 7,086 6,155 Sub Total Direct Research Costs 43,328 39,795 CRP Collaborator Costs - CGIAR Centers (1) 8,165 12,537 Total Research Costs 51,493 52,332
Indirect Costs: Management 6,603 5,956 Subagreement Management Costs Unallocable Indirect Costs Total Indirect Costs 6,603 5,956
Total Operating Expenses 49,931 45,751
Cost Ratios (1) Direct Research Costs / Total Operating Expenses 86.8% 87.0% Total Indirect Costs / Total Operating Expenses 13.2% 13.0% Actual Indirect / Research Costs 18.2% 17.7%
(1) The cost category "CRP Collaborator Costs - CGIAR Centers " is excluded from this calculation.
36
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Dryland Systems – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 7 - - - 7 CGIAR Collaboration Costs - - - - - Other Collaboration Costs - - - - - Supplies and Services - - - - - Operational Travel - - - - - Depreciation - - - - - Total Direct Costs 7 - - - 7 Indirect Costs 1 - - - 1 Total - All Costs 8 - - - 8 Cost Sharing Percentage - - - - - Total Costs 8 - - - 8
CGIAR Research Program Dryland Systems – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance (32) Add: Cash Receipts from Lead Center 40 Less: Disbursements (8) Closing Balance -
37
International Potato Center Audited Financial Statements December 31, 2016 CGIAR Research Program Humid Tropics – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 17 - - 46 63 CGIAR Collaboration Costs - - - - - Other Collaboration Costs - - - - - Supplies and Services 63 - - - 63 Operational Travel 13 - - 4 17 Depreciation - - - - - Total Direct Costs 93 - - 50 143 Indirect Costs 14 - - - 14 Total - All Costs 107 - - 50 157 Cost Sharing Percentage - - - - - Total Costs 107 - - 50 157
CGIAR Research Program Humid Tropics – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance (29) Add: Cash Receipts from Lead Center 80 Less: Disbursements (107) Closing Balance (56)
38
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Policies, Institutions & Markets – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 383 53 39 - 475 CGIAR Collaboration Costs - - - - - Other Collaboration Costs 9 - 56 - 65 Supplies and Services 274 56 55 - 385 Operational Travel 33 11 15 - 59 Depreciation - - - - - Total Direct Costs 699 120 165 - 984 Indirect Costs 105 10 13 - 128 Total - All Costs 804 130 178 - 1,112 Cost Sharing Percentage - 8 - - 8 Total Costs 804 138 178 - 1,120
CGIAR Research Program Policies, Institutions & Markets – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance 136 Add: Cash Receipts from Lead Center 666 Less: Disbursements (804) Closing Balance (2)
39
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Roots, Tubers & Bananas – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 2,033 7,658 3,393 27 13,111 CGIAR Collaboration Costs - - - - - Other Collaboration Costs 100 3,313 1,624 - 5,037 Supplies and Services 1,288 7,430 2,764 14 11,496 Operational Travel 217 975 532 - 1,724 Depreciation 31 355 104 - 490 Total Direct Costs 3,669 19,731 8,417 41 31,858 Indirect Costs 550 2,405 1,122 - 4,077 Total - All Costs 4,219 22,136 9,539 41 35,935 Cost Sharing Percentage - 560 105 - 665 Total Costs 4,219 22,696 9,644 41 36,600
CGIAR Research Program Roots, Tubers & Bananas – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance 14 Add: Cash Receipts from Lead Center 1,620 Less: Disbursements (4,219) Closing Balance (2,585)
40
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Agriculture for Nutrition & Health – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 35 293 - - 328 CGIAR Collaboration Costs - - - - - Other Collaboration Costs 28 535 - - 563 Supplies and Services 85 342 - - 427 Operational Travel 9 30 - - 39 Depreciation - 1 - - 1 Total Direct Costs 157 1,201 - - 1,358 Indirect Costs 23 180 - - 203 Total - All Costs 180 1,381 - - 1,561 Cost Sharing Percentage - 7 - - 7 Total Costs 180 1,388 - - 1,568
CGIAR Research Program Agriculture for Nutrition & Health – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance 21 Add: Cash Receipts from Lead Center 92 Less: Disbursements (180) Closing Balance (67)
41
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Water, Land & Ecosystems – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 110 132 - - 242 CGIAR Collaboration Costs - - - - - Other Collaboration Costs - 77 - - 77 Supplies and Services 49 70 - - 119 Operational Travel 2 46 - - 48 Depreciation - 4 - - 4 Total Direct Costs 161 329 - - 490 Indirect Costs 24 42 - - 66 Total - All Costs 185 371 - - 556 Cost Sharing Percentage - 5 - - 5 Total Costs 185 376 - - 561
CGIAR Research Program Water, Land & Ecosystems – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance (102) Add: Cash Receipts from Lead Center 210 Less: Disbursements (185) Closing Balance (77)
42
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Climate Change, Agriculture & Food Security – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 10 132 - - 142 CGIAR Collaboration Costs - - - - - Other Collaboration Costs - - - - - Supplies and Services 9 37 - - 46 Operational Travel 5 15 - - 20 Depreciation - 4 - - 4 Total Direct Costs 24 188 - - 212 Indirect Costs 4 26 - - 30 Total - All Costs 28 214 - - 242 Cost Sharing Percentage - 5 - - 5 Total Costs 28 219 - - 247
CGIAR Research Program Climate Change, Agriculture & Food Security – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance (298) Add: Cash Receipts from Lead Center 312 Less: Disbursements (28) Closing Balance (14)
43
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Genebanks – Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Windows Center Expenses by Natural Classification 1 & 2 Window 3 Bilateral Funds Total Personnel Costs 1,590 8 103 - 1,701 CGIAR Collaboration Costs - - - - - Other Collaboration Costs 29 - - - 29 Supplies and Services 1,851 - 81 - 1,932 Operational Travel 113 - - - 113 Depreciation 263 - 98 - 361 Total Direct Costs 3,846 8 282 - 4,136 Indirect Costs 610 1 13 - 624 Total - All Costs 4,456 9 295 - 4,760 Cost Sharing Percentage - - - - - Total Costs 4,456 9 295 - 4,760
CGIAR Research Program Genebanks – Funding Report Year Ended 31 December 2016 (US$ 000)
Windows Description 1 & 2 Opening Balance (1,671) Add: Cash Receipts from Lead Center 6,133 Less: Disbursements (4,456) Closing Balance 6
44
International Potato Center Audited Financial Statements December 31, 2016
CGIAR Research Program Roots, Tubers & Bananas – Lead Center Expenditure Report Exhibit 4 Year Ended 31 December 2016 (US$ 000)
Natural Classification Window 1 & 2 Window 3 Bilateral Funding Center Funds Total Funding Personnel 2,869 7,804 3,393 27 14,093 Collaborators Costs - CGIAR Centers 8,165 - - - 8,165 Collaborator Costs - Partner 316 4,414 1,624 - 6,354 Supplies and Services 1,598 7,463 2,764 14 11,839 Operational Travel 306 983 531 - 1,820 Depreciation 31 355 104 - 490 Total Direct Costs 13,285 21,019 8,416 41 42,761 Indirect Cost 768 2,536 1,122 - 4,426 TOTAL - All Costs 14,053 23,555 9,538 41 47,187 CGIAR Cost Sharing Percentage (CSP) 33 587 105 - 725 Total Costs 14,086 24,142 9,643 41 47,912
CGIAR Research Program Roots, Tubers & Bananas – Lead Center Funding Report Year Ended 31 December 2016 (US$ 000)
Description Total Opening Balance held by Lead Center 4,372 Cash Receipts from Consortium 15,884 Interest Gain/Loss - Disbursements: Bioversity 1,808 CIAT 1,354 CIP 6,742 IITA 1,943 Total Disbursements (11,847) Closing Balance held by Lead Center 8,409
45
CIP POTATO CENTER INTERNATIONAL A CGIAR RESEARCHCENTER www.cgiar.org globe. acrossclose collaboration the withhundreds of partners future. science iscarriedoutby 15Research Its Centers in CCGIAR for isaglobalresearch afood-secure partnership CIP isamemberofCGIAR. www.cipotato.org resources. ofourEarth’spreservation fragile biodiversity andnatural hunger, poverty, genderequity, climate changeandthe solutionsto thepressing worldscience-based issuesof tubers. CIPisdedicated to delivering sustainable with afocus onpotato, sweetpotato, andAndeanroots and acronym CIP)isaresearch-for-development organization The Potato International Center by itsSpanish (known
Financial Statements
For the year ended 31 December 2016 and Complementary Informationand Complementary Audited Financial Statements For theyear endedDecember 31,2016