ICRISAT Financial Statements

Transcription

1 ICRISAT Financial Statements For the year ended December 31, 2014 Science with a human face

2 ICRISAT Financial Statements For the year ended December 31, 2014 Science with a human face

3 Contents Statement of the Board Chair 1 Management Representation 2 Board Statement on Risk Management 3 Independent Auditor s Report 4 Financial Statements Statement of Financial Position 6 Statement of Activities 7 Statement of Expenditure by Natural Classification 8 Statement of Cash Flows 9 Statement of Changes in Net Assets 10 Notes to the Financial Statements 11 Schedules Schedule I Unrestricted Grant Revenues 21 Schedule II Restricted Grant Revenues 22 Schedule II(a) CGIAR Research Program - Expenditure Report 46 Schedule II(b) CGIAR Research Program - Funding Report 53 Schedule II(c) CGIAR Research Program 1 and 2 Funding Report: Lead Center 55 Schedule III Property, Plant and Equipment 56 Schedule IV Calculation of Indirect Cost Rate 57 Schedule V Abbreviations 58 Appendices Appendix 1 Accounts Receivable - Donors 63 Appendix 2 Funds Received in Advance - Donors 64 Appendix 3 Grant Revenues - Seed Companies 66 Appendix 4 Property, Plant and Equipment 68 Appendix 5 Details of Funding and Expenditure for Unrestricted, CRPs and Non CRPs 69 Appendix 6 CRP Grain Legumes - Expenditure Report: Lead Center 70 Appendix 7 CRP Dryland Cereals - Expenditure Report: Lead Center 71

4 Statement of the Board Chair The year 2014 ushered in a transition in ICRISAT s journey for an inclusive and sustainable development in the drylands. The past year saw a changing of the guard with the conclusion of the 15-year dynamic leadership of Dr William Dar as Director General, paving the way for a new and vibrant management under Dr David Bergvinson. With this transition comes an invigorated commitment to tackle the challenges of poverty, hunger, malnutrition and environmental degradation, and to fulfill a dedication to serve poor rural communities of the world. As Chair of the ICRISAT Governing Board, I am pleased to report that our total unrestricted net asset at the end of 2014 was US$ 34.5 M, and that we were in full compliance with the CGIAR-recommended financial performance indicators. With an excellent science and institutional health, stronger partnerships, and a stable funding, we remain committed to translating our development partner investments into publicly available agricultural research for development (AR4D) outputs. Along with our broad network of partnerships and long experience in AR4D, we are well-positioned to generate science-based solutions intended for the poor, smallholder farmers in the dryland tropics. In 2014, the Board has decided to boost the institute s AR4D in sub-saharan Africa (SSA) by investing US$ 5 million towards upgrading research infrastructure and building scientific skills across the continent. This is particularly intended for countries where ICRISAT has its sub-saharan Africa offices, namely Mali, Niger, Nigeria, Kenya, Zimbabwe, Malawi, and Ethiopia, and where food security is a major challenge at both national and household levels. We are also pleased and honored to report that Dr Kanayo Nwanze, President of the International Fund for Agricultural Development (IFAD), visited the global headquarters in 2014, and underscored the need to elevate the IFAD-ICRISAT partnership to make farming a profitable business in the marginalized regions of the world. Five ICRISAT Ambassadors of Goodwill were also added to the prestigious lineup of champions of our mission, all passionate to our cause of building prosperity and ensuring food security for the smallholder farmers. They are: Dr Akinwumi Adesina, Minister of Agriculture and Rural Development of the Federal Republic of Nigeria; Dr Nigel Poole, former ICRISAT Board Chair; Prof. MS Swaminathan, renowned agricultural scientist and Father of s Green Revolution; Ms Saina Nehwal, Olympic badminton medalist and youth icon of ; and Hon John Kerin AM, Chair of the Crawford Fund and former Australian Minister for Primary Industries and Energy, and for Trade and Overseas Development. Among ICRISAT s many strategic, high-quality AR4D and partnership achievements for 2014, I am pleased to highlight the following: establishment of the West African Agri-Business Resource Incubator (WAARI) in Mali in partnership with UniBRAIN-FARA; successful sequencing of the genome of the peanut as part of the International Peanut Genome Initiative (IPGI); adoption of a gender transformative approach in ICRISAT s AR4D initiatives; launch of One Agriculture-One Science a consortium of agricultural education and research institutes across Asia, Africa and USA to revitalize agricultural education; and completion of a comprehensive assessment of climate change impacts on smallholder farming systems in Eastern and Southern Africa. On behalf of the Governing Board, I thank ICRISAT s dedicated staff and officials, our donors and partners, and all our stakeholders for making science and partnerships come together to accelerate the pace of development in pursuit of a pathway to lasting prosperity in the world s poorest and most disadvantaged regions the dryland tropics. Chandra A Madramootoo Chair, ICRISAT Governing Board 1

5 Management Representation The accompanying financial statements of the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) are prepared in conformity with the CGIAR Accounting Policies and Reporting Practices Manual Financial Guidelines Series No.2 ICRISAT maintains a system of internal control designed to provide reasonable assurance that financial transactions are properly recorded and that the financial statements prepared give a true and fair view of the financial position of the Institute. ICRISAT invests its funds in line with the policy approved by the Governing Board and regularly updates the Governing Board on the implementation of the policy. The Governing Board of ICRISAT engaged KPMG to audit the consolidated financial statements of ICRISAT and issue reports thereon. Their audit is conducted in accordance with International Standards on Auditing. The auditors report is attached. The Governing Board of ICRISAT exercises its responsibility for these financial statements through its Audit Committee and Executive Committee. The Audit Committee meets regularly with the internal and external auditors of ICRISAT to review matters relating to financial reporting, internal controls, and auditing. The Executive Committee meets regularly with management to discuss annual budgets, financial reports, and financial policies. Rajesh Agrawal Assistant Director General, Finance David J Bergvinson Director General 2

6 Board Statement on Risk Management The Governing Board of ICRISAT has the responsibility for ensuring that an appropriate risk management system is in place, which enables management to identify and take steps to mitigate significant risks to the achievement of the Institute s objectives. Risk management and mitigation is regularly practiced at ICRISAT, which includes implementation of appropriate internal control systems. Such controls by their nature are designed to manage, rather than eliminate risks. ICRISAT also endeavors to manage risk by ensuring that appropriate infrastructure, controls, systems and people are in place throughout the Institute. ICRISAT has adopted a risk management policy, which has detailed guidelines on managing key risks, which include risks in the areas of research, staff, investments, finances, and infrastructure. The policy includes a framework by which the Institute s management identifies risks, evaluates and prioritizes risks, develops risk mitigation strategies that balance benefits with costs, monitors the implementation of these strategies, takes necessary corrective actions, and reports to the Governing Board. The Board has reviewed the implementation of the policy and is satisfied that ICRISAT has adopted and implemented a comprehensive risk management system. Chandra A Madramootoo Chair, ICRISAT Governing Board 3

7 4 Independent Auditor s Report

8 5

9 International Crops Research Institute for the Semi-Arid Tropics Statement of Financial Position As at December 31, 2014 (All amounts in thousands of United States Dollars) Notes Assets Current Assets Cash and cash equivalents 2(d) & 3 11,054 19,260 Investments 2(e) & 11(a) 6,703 - Accounts receivable -Donors (net of allowances 698 in 2014 and 1,127 in 2013) 4 7,559 7,721 -Employees CGIAR Centers 6 1,590 3,521 -Others 7 2,613 1,988 Inventories 2(f) & Prepaid expenses Current Assets 31,511 34,457 Non Current Assets Property, Plant and Equipment 2(g) & 10 8,891 7,585 Investments 2(e) & 11(b) 48,115 51,239 Other Assets 12 4,637 3,921 Non Current Assets 61,643 62,745 Assets 93,154 97,202 Liabilities and Net Assets Current Liabilities Received in advance - Donors 13 27,820 27,660 Accounts payable -Employees 2(j) 1, CGIAR Centers 14 2,851 4,931 -Others 15 12,162 13,906 Accruals 2,725 2,595 Current Liabilities 46,721 50,063 Non Current Liabilities Accounts payable -Employees 2(j) & 16 7,642 11,352 Non Current Liabilities 7,642 11,352 Net Assets 17 Unrestricted -Undesignated 19,446 16,431 -Designated 15,113 15,113 Unrestricted Net Assets 34,559 31,544 Restricted 4,232 4,243 Net Assets 38,791 35,787 Liabilities and Net Assets 93,154 97,202 See accompanying notes to the financial statements 6

10 International Crops Research Institute for the Semi-Arid Tropics Statement of Activities For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Notes Unrestricted CRP Non CRP Unrestricted CRP Non CRP Grant Revenue 1 & 2-40,307-40,307-40,820-40,820 Window ,469-20, ,092-11,745 Bilateral 35 24, , ,000 1,402 27,439 Grant Revenue , , ,912 1,402 80,004 Other revenue and gains 18 2, ,087 2, ,991 Revenue and Gains 2,775 84, ,987 3,681 77,912 1,402 82,995 Expenses and Losses Research Expenses - 45, ,912-41, ,905 CGIAR Collaborator Expenses - 16,220-16,220-18,952-18,952 Non CGIAR Collaborator Expenses - 13, , , ,062 General and Administration Expenses 637 8, ,525 1,384 7, ,799 Other Expenses and Losses Expenses and Losses , ,849 1,404 77,912 1,402 80,718 Net Surplus 2, ,138 2, ,277 See accompanying notes to the financial statements 7

11 International Crops Research Institute for the Semi-Arid Tropics Statement of Expenditure by Natural Classification For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Unrestricted CRP Non CRP Unrestricted CRP Non CRP Personnel Costs 4,437 18, ,049 5,282 16, ,065 CGIAR Collaboration - 16,220-16,220-18,952-18,952 Non CGIAR Collaboration - 13, , , ,062 Supplies and Services 2,959 21, ,599 1,943 18, ,062 Travel 1,068 4, , , ,169 Depreciation 1, , , ,269 Cost Sharing Percentage Sub Expenses and Losses 9,525 75, ,849 8,819 70,594 1,305 80,718 Indirect Cost Recovery (8,888) 8, (7,415) 7, Operating Expenses , ,849 1,404 77,912 1,402 80,718 See accompanying notes to the financial statements 8

12 International Crops Research Institute for the Semi-Arid Tropics Statement of Cash Flows For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Cash Flows from Operating Activities Change in Net Assets 3,004 2,419 Adjustments to reconcile net assets to net cash provided by operating activities Depreciation 1,718 2,269 (Gain)/loss on disposal and/or write-off of property, plant and equipment 35 6 Assets identified for disposal Interest income (2,476) (2,717) Decrease/(increase) in assets Accounts receivable 2,034 10,363 Inventories (24) (99) Prepaid expenses (40) 1 Increase/(decrease) in liabilities Accounts payable (3,472) (6,262) Accruals 130 (1,186) Net cash used from/(in) operating activities 952 4,852 Cash Flows from Investing Activities Sale/(purchase) of Investments (3,579) 5,677 Acquisition of property, plant and equipment (3,117) (3,609) Proceeds from disposal of property, plant and equipment Interest received 1,233 3,578 Net cash used from/(in) investing activities (5,448) 5,686 Cash Flows from Financing Activities Increase/(decrease) in long term liabilities Accounts payable - Employees (3,710) (1,671) Net cash used from/(in) Financing Activities (3,710) (1,671) Net (decrease)/increase in cash and cash equivalents (8,206) 8,867 Cash and cash equivalents, beginning of the year 19,260 10,393 Cash and cash equivalents, end of the year 11,054 19,260 See accompanying notes to the financial statements 9

13 International Crops Research Institute for the Semi-Arid Tropics Statement of Changes in Net Assets For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Notes Undesignated Fixed Assets Capital Fund* Unrestricted Designated Crisis Management Fund Designated Unrestricted Restricted Balance as at January 01, ,064 6,349 2,764 1,000 10,113 29,177 4,191 33,368 Transfer from Undesignated to Designated (5,000) - 5,000-5, Acquisitions net of depreciation - 1,236 (1,236) Gratuity/Pension reversal Interest on ICRISAT - SFF Endowment, net of expenses Net Surplus 2, ,277-2,277 Balance as at December 31, ,431 7,585 6,528 1,000 15,113 31,544 4,243 35,787 Acquisitions net of depreciation - 1,306 (1,306) Gratuity/Pension reversal Expenses on ICRISAT - SFF Endowment, net of interest (11) (11) Net Surplus 2, ,138-2,138 Balance as at December 31, ,446 8,891 5,222 1,000 15,113 34,559 4,232 38,791 *Reserve for acquisition of Property, Plant and Equipment See accompanying notes to the financial statements 10

14 International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) Notes to the Financial Statements 1. (a) Background The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) is a non-profit organization that conducts agricultural research for development in sub-saharan Africa and Asia with a wide array of partners throughout the world. It was established on 28 March 1972 by virtue of an agreement between the Government of and CGIAR. ICRISAT helps empower smallholder farmers overcome poverty, hunger and malnutrition, through making agriculture profitable and sustainable. We achieve this through scientific advancements and working in partnership. ICRISAT is headquartered in Patancheru, Telangana,, with two regional hubs and six country offices in sub-saharan Africa. Owing to its international status and based on the arrangements with the host country governments, ICRISAT operates under a general immunity from local laws, taxes and customs duties. Its activities are supported through grants by donor nations, World Bank and foundations. (b) CGIAR Research Programs In 2011, the CGIAR Consortium introduced a new program-based approach to fund research activities. Donors to the CGIAR, represented by the Fund Council, approved the creation of CGIAR Research Programs (CRPs). Each CRP is led by a designated CGIAR Center (Lead Center), which is responsible, through a Program Implementation Agreement (PIA), for overseeing the implementation of the CRP by program partners. Partners include other CGIAR Centers and institutions who are subcontracted by the Lead Center through a Program Participant Agreement (PPA) or other suitable contracting arrangement. ICRISAT is the Lead Center for the CRPs on Grain Legumes and Dryland Cereals, effective 1 July Fund donors may designate their contribution to one or more of the three funding. For Window 1 funds, the Fund Council sets the overall priorities and makes specific decisions such as allocation to CRPs, payment of system costs and any other use required to achieve the CGIAR mission. Window 2 funds are contributions designated by Fund Donors to one or more CRPs. Window 3 funds are contributions designated by the Fund donors to individual centers. 2. Significant Accounting Policies (a) Basis of accounting The financial statements are prepared under the historical cost convention on the accrual basis of accounting, in accordance with the CGIAR Accounting Policies and Reporting Practices Manual, Financial Guidelines Series No. 2 (FG2) as amended from time to time and approved by the CGIAR Consortium and the Fund Council as part of the Common Operational Framework. 11

15 To align the financial accounting and reporting of the CRPs with FG2 and to harmonize the accounting treatment between and across the Centers, the CGIAR Consortium has issued certain guidelines to supplement FG2 as an advisory note which have been considered in the preparation of these financial statements. (b) Presentation of financial statements All assets, liabilities, revenues and expenses incurred in the respective local currencies are recorded at a rate that approximates the US Dollar on the date of the transaction. At the period end, solely for reporting purposes, monetary assets and liabilities are converted to the US Dollar at the exchange rate prevailing on the reporting date. (c) Use of estimates The preparation of financial statements in conformity with FG2 requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods. (d) Cash and cash equivalents Cash and cash equivalents comprise cash in hand, balances with banks, and short term highly liquid investments that are readily convertible to known amounts of cash with original maturity periods of three months or less and which are subject to an insignificant risk of changes in value. (e) Investments Current investments include fixed deposits with banks that are readily convertible to known amounts of cash with original maturities of more than three months but not exceeding one year. Investments in long term bonds acquired with an intention of disposing the same within a year of the acquisition date have been included in current investments. Current investments are carried at the lower of cost or fair value, with any resultant gain or loss recognised in the income statement. Investments acquired with the intention to hold for more than a year from the acquisition date are classified as non-current investments and are stated at amortised cost less impairment losses. Debt mutual funds are valued at fair value, with any resultant gain or loss recognized in the income statement. (f) Inventories Inventories comprise office, laboratory and farm supplies, automobiles and maintenance spares, fuel and lubricants. These are stated at cost, net of allowances for slow moving, obsolete and damaged stocks. Cost is determined using the weighted average method. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. 12

16 (g) Property, Plant and Equipment Property, Plant and Equipment are stated at cost less accumulated depreciation. All individual items costing US$ 3,000 and above are capitalised. The cost of fixed assets includes freight and other incidental expenses related to the acquisition and installation of the respective assets. Depreciation is charged to the statement of activities on a straight-line basis over the estimated useful lives of items of property, plant and equipment from the month of capitalization. The estimated useful lives of assets are as follows: Years Physical facilities 60 Equipment: Laboratory and scientific equipment 10 Furniture and office equipment 10 Heavy duty equipment 10 Vehicles 4 Computers 3 Property, plant and equipment acquired through restricted grants are classified under assets purchased from restricted projects. The ownership of such assets remains with the respective donors until the donor expressly reverts the ownership of such assets to ICRISAT upon completion of the project. Hence these assets are not reflected as part of ICRISAT s property, plant and equipment. Such assets acquired from restricted grants are depreciated at the rate of 100% in the year of acquisition. (h) Revenue Recognition Unrestricted grants are pledged on an annual basis and are recognized as revenue in the year for which the grant is pledged. Restricted grants, (CRPs and Non CRPs) which may be pledged for more than a year, are recognized as revenue only to the extent, the grant conditions have been met. Revenue includes grants made in the capacity of a Lead Centre to other participating CGIAR Centers. Grants-in-kind are recognized as revenue based on communication from donor, specifying the amount of expenditure towards relevant restricted projects. Interest on investment of funds is recognized using the time proportion method, based on underlying interest rates. Dividend on investments is recognized when right to receive dividend is established. (i) Foreign currency transactions Transactions in foreign currencies are recorded at the foreign exchange rate ruling on the date of the transaction. Monetary assets and liabilities at the balance sheet date are translated to the US Dollar at the foreign exchange rate prevailing on that date. Foreign non-monetary assets and liabilities denominated in currencies other than the US Dollar are converted to the US Dollar at exchange rate 13

17 prevailing on the date of the transaction. The Institute s operations at its two regional hubs and six country offices in sub-saharan Africa form an integral part of the Institute s operations and assets and liabilities of these centers are consolidated along with the overall assets and liabilities at ICRISAT. The revenues and expenses of two regional hubs and six country offices in sub-saharan Africa are translated to US Dollar at rates prevailing on the dates of the transactions and are included in the statement of activities of ICRISAT. Exchange differences arising on settlement of foreign currency transactions, forward contracts, and translations at the balance sheet date are recognized as expense or income, as the case may be, in the statement of activities for the year. The premium or discount on a forward exchange contract taken to hedge foreign currency risk of an existing asset/liability is recognized over the period of the contract and the differences between the exchange rates prevailing at the time of entering the contract and exchange rates at the date of balance sheet are recognized as income or expense. (j) Employee benefits (i) Defined Contribution plans Internationally Recruited Staff (IRS) Retirement benefits of the IRS are managed by The Association of International Agricultural Research Centres (AIARC), an autonomous body providing comprehensive payroll management services to various agricultural research organizations worldwide. Payments to AIARC include defined contributions towards the IRS retirement benefits, which exonerates ICRISAT of all further liabilities on this account. Nationally Recruited Staff (NRS) Obligations for contributions towards defined contribution plans are recognized as an expense in the statement of activities as incurred. (ii) Defined Benefit plans Pension, Gratuity and Leave encashment The Institute s obligation in respect of Pension, Gratuity and Leave encashment, which are defined benefit plans, are determined based on an actuarial valuation carried out by an independent qualified actuary and the net present value of the defined benefit obligations less the fair value of plan assets is recognized as a liability at the balance sheet date. Relocation The Institute s present obligation in respect of relocation expenses payable is estimated for all eligible employees in accordance with the contractual obligations with such employees and policies of the Institute. (iii) Other Separation costs Employee termination benefits, such as Voluntary Retirement Scheme (VRS) to be settled in monthly or annual instalments, post retirement are recorded as an obligation as earned. 14

18 (In US$ '000) Cash and Cash equivalents Cash Cash equivalents - Banks 11,022 17,773 - Debt Mutual Fund - 1,454 11,054 19, Accounts Receivable Donors Unrestricted CGIAR Research Programs ( 1 & 2 with PPA) - ICARDA : CRP on Dryland Systems 2,048 1,478 - IFPRI : CRP on Policies, Institutions and Markets CGIAR : CRP on Grain Legumes - 2,385 - CGIAR : CRP on Dryland Cereals IFPRI : CRP on Agriculture for Nutrition and Health IWMI : CRP on Water, Land and Ecosystems CIAT : CRP on Climate Change, Agriculture and Food Security 1, CIAT : CRP on Climate Change, Agriculture and Food Security (RPL-WA) - CGIAR : CRP on Genebanks 945 1,092 CGIAR Research Programs ( 1 & 2 without PPA) and Bilateral 2,451 2,696 8,257 8,848 Less: Allowances for doubtful receivables (698) (1,127) 7,559 7, Accounts Receivable Employees Vehicle loans Housing loans Others Accounts Receivable CGIAR Centers Restricted - CIAT 307 1,799 - IITA 105 1,444 - ICARDA 1,004 - Others ,590 3,521 15

19 (In US$ '000) Accounts Receivable Others Collaborators 1,333 1,597 Vendors Accrued interest Others 3 2 2,763 2,205 Less: Allowances for doubtful advances (150) (217) 2,613 1,988 Receivable from vendors include capital advance of US$ 47,000 (December 31, 2013 US$ 100,000) for purchase of equipment. 8. Inventories Office, laboratory and farm supplies Automobile and maintenance spares Fuel and lubricants Held for disposal - 1 1,097 1,033 Less: Allowance for obsolescence (153) (113) Prepaid expenses Insurance Others Property, Plant and Equipment ICRISAT owned assets, at cost Physical facilities Equipment 27,862 26,270 Assets purchased from Restricted projects 19,286 18,628 47,967 45,717 Accumulated depreciation Physical facilities (176) (164) Equipment (19,614) (19,340) Assets purchased from Restricted projects (19,286) (18,628) (39,076) (38,132) Net book value Physical facilities Equipment 8,248 6,930 Assets purchased from Restricted projects - - Property, Plant and Equipment net 8,891 7,585 16

20 The land used by ICRISAT for its operations in and in some of its African locations has been obtained under long-term lease arrangements from the host country governments, together with the buildings and immovable structures thereon. These will return to the respective governments at no value, if ICRISAT ceases operations at these locations. Accordingly, these physical facilities are not capitalized. Property, Plant and Equipment includes assets in-transit costing US$ 82,000 (December 31, US$ 746,000 ) on which no depreciation has been charged. Assets purchased from restricted projects comprise physical facilities and other assets, ownership of which does not belong to the Institute. As at December 31, 2014, assets purchased from restricted projects were US$ 19,286,000 (December 31, US$ 18,628,000) which include buildings amounting to US$ 3,006,000 (December 31, 2013 US$ 3,006,000). These assets are fully depreciated in the year of purchase and charged directly to the appropriate restricted project. 11. Investments (In US$ '000) (a) Investments (Current) Fixed deposits with banks 6,703-6,703 - (b) Investments (Non-current) Fixed deposits with banks* 26,914 30,732 Debt Mutual Fund 1,898 1,639 Bonds 19,303 18,868 48,115 51,239 *Includes lien marked deposit of US$ 181,000 ( US$ 205,000) 12. Other assets (Non-current) Housing loans Vehicle loans Deposits Accrued interest 4,069 3,377 Assets held for disposal ,637 3, Received in advance Donors CGIAR Research Programs - IWMI : CRP on Water, Land and Ecosystems ICRISAT : CRP on Grain Legumes ICRISAT : CRP on Dryland Cereals IFPRI : CRP on Agriculture for Nutrition and Health Bilateral 25,864 27,477 27,820 27,660 17

21 (In US$ '000) Accounts Payable CGIAR Centers CGIAR Research Programs - CIAT ICARDA 1,752 2,574 - IITA 166 1,608 Others ,851 4, Accounts Payable Others Vendors 7,815 8,993 Collaborators 3,956 4,574 Miscellaneous ,162 13, Accounts Payable Employees (Non-current) Pension 762 1,455 Gratuity - 3,092 Leave encashment 1,881 1,744 Relocation 2,635 2,636 Separation costs 2,028 2,075 Other contributory plans ,642 11, Net Assets (a) Unrestricted (i) Undesignated Balance, beginning of the year 16,431 19,064 Transfer to designated - (5,000) Gratuity/Pension reversal Operating surplus for the year 2,138 2,277 Balance, end of the year 19,446 16,431 (ii) Designated Balance, beginning of the year 15,113 10,113 Transfer from undesignated - 5,000 Balance, end of the year 15,113 15,113 Net Assets Unrestricted: [(a)(i)+(a)(ii)] 34,559 31,544 18

22 Unrestricted designated Net Assets comprise: (In US$ '000) Fixed Assets 8,891 7,585 Reserve for acquisition of Property, Plant and Equipment 5,222 6,528 Reserve for Crisis Management Fund 1,000 1,000 15,113 15,113 (b) Restricted (i) ICRISAT - Sehgal Family Foundation Endowment Balance, beginning of the year 4,214 4,162 Interest earned, net of expenses (11) 52 Balance, end of the year 4,203 4,214 (ii) Doreen Margaret Mashler Distinguished Scientific Achievement Award Balance, beginning of the year Interest earned, net of expenses - - Balance, end of the year Net Assets- Restricted: [(b)(i)+(b)(ii)] 4,232 4,243 Net Assets: [(a)+(b)] 38,791 35,787 Net Assets - Unrestricted Unrestricted net assets represent the Institute s property after payment of liabilities with no restriction on its use by donors. These unrestricted net assets are classified as undesignated and designated. Undesignated Undesignated net assets represent accumulated surplus of revenue over expenses and are used to finance working capital and on-going operational requirements. Designated Designated net assets represent a) Investment in ICRISAT owned Property, Plant and Equipment, at net value, b) Reserve for acquisition of Property, Plant and Equipment, and c) Reserve for Crisis Management Fund. 19

23 Net Assets - Restricted Restricted net assets represent: a) Contribution from Sehgal Family Foundation towards ICRISAT-SFF Endowment, b) ICRISAT's matching contribution to ICRISAT-SFF Endowment, c) a fund for Doreen Margaret Mashler Distinguished Scientific Achievement Award, and d) Accretion (net of expenses) to these funds. (In US$ '000) Other revenues and gains Interest income net 2,476 2,717 Exchange (losses)/gains net (741) (515) Farm Produce Scrap and Empties Gain on sale of non capitalized assets Provision Written back Miscellaneous ,087 2, Prior year comparatives Prior year amounts have been reclassified / regrouped wherever necessary, to conform to current year s classifications. 20

24 Schedule I International Crops Research Institute for the Semi-Arid Tropics Unrestricted Grant Revenues For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Donor Funds Available Accounts Receivable Payments in Advance Grant 2014 Grant 2013 Window 3: China Ireland Thailand Turkey Sub total Bilateral: Philippines Sub total

25 Schedule II International Crops Research Institute for the Semi-Arid Tropics Restricted Grant Revenues For the Year Ended December 31, 2014 (All amounts in thousands of United States Dollars) Donor Program/Project Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure 2014 A. CGIAR Research Programs: A.1. 1 & 2 with PPA: ICARDA - CRP on Dryland Systems ,180 5,256 4,753 10,009 IFPRI - CRP Policies, Institutions and Markets ,734 3,195 1,342 4,537 CGIAR - CRP on Grain Legumes ,071 27,200 16,934 44,134 CGIAR - CRP on Dryland Cereals ,562 11,105 8,526 19,631 IFPRI - CRP on Agriculture for Nutrition and Health ,150 1,881 1,056 2,937 IWMI - CRP on Water, Land and Ecosystems ,048 1,586 1,087 2,673 CIAT CIAT CGIAR - CRP on Climate Change, Agriculture and Food Security - West Africa Regional Program Leader of the CGIAR Program on Climate Change, Agriculture and Food Security (CCAFS) - CRP on Genebanks (GCDT thru Bioversity) ,803 5,440 2,129 7, ,374 4,840 1,732 6, ,888 5,788 2,108 7,896 Sub- - (A.1) 117,810 66,291 39, ,958 A.2. 1 & 2 without PPA: ICARDA ICARDA ICARDA - Documentation Project - Stories of n Women Farmers - Strategic Gender Research Activities - South Asia - Activity 1: Study on Extension Service for Smallholders - Strategic Gender Research Activities - Livestock: Activity 2: Improved Livelihoods for Women in Crop- Livestock Systems

26 Donor IFPRI IFPRI/CIAT IWMI IWMI IWMI Program/Project - Dr MCS Bantilan as Member of the Management Committee of CRP2 - Genetically Enhanced Pearl Millet with High Grain Iron Density for Improved Human Nutrition in - HarvestPlus Phase II - Dr SP Wani as SRP Co-leader on SRP 2: Rainfed Systems - Document Outcome Stories of African Women Farmers - Document Outcome Stories of n Women Farmers Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure ,401 2, , Sub- - (A.2) 3,680 2, ,439 - (A) 121,490 69,090 40, ,397 B. CGIAR Research Programs - Window 3: CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR - Improving the Livelihoods of Smallholder Farmers in Droughtprone Areas of Sub-Saharan Africa and through Enhanced Grain Legume Production and Productivity - Tropical Legumes II, Phase 2 (Bill and Melinda Gates Foundation (BMGF), USA) - A High Quality Reference Genome Sequence of Pearl Millet (Pennisetum Glaucum L.) for Accelerated Breeding of Improved Cultivars (Bill and Melinda Gates Foundation (BMGF), USA) - Establishment of CAAS-ICRISAT- ICARDA Joint Centre of Excellence for Dry Land Agriculture (China) - Training Programs for Chinese Young Scientists (China) - Supporting Collaborative Projects in China (China) - Implementing the Activities under the Strategy and Results Framework (SRF) () ,000 13,411 6,118 19, , ,428 2, , ,030 1,350 23

27 Donor Program/Project Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure 2014 CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR CGIAR - Pigeonpea Improvement using Molecular Breeding (USAID) - Platform Mozambique - IFDC AIMS (USAID) - Platform Mozambique - Legumes (USAID) - Platform Mozambique - Program Management Unit (USAID) - Zambia Aflatoxin Research & Mitigation (USAID) - Zambia Groundnut Productivity (USAID) - US - CGIAR Linkage Program (USAID) - CRP-Grain Legumes - US - CGIAR Linkage Program (USAID) - CRP-Dryland Cereals - Farmer Managed Seed Enterprises in Mali - Zambia Groundnut Productivity (USAID) - Reseeding Malawi's Smallholder Agriculture (USAID) - Scaling up Groundnut Technology Diffusion (USAID) - Development of Commercially Sustainable Sorghum for Multiple Uses (SMU) Value Chains in Kenya and Tanzania - EU / IFAD - Enhancing Productivity of Groundnut and Pigeonpea Cropping Systems in Eastern Africa - EU/IFAD - - Tropical Legumes 1 Workstream Continuation (Bill and Melinda Gates Foundation [BMGF], USA) - Disseminating Learning Agenda on Resilient Smart Technologies to Improve the Adaptive Capacity of Smallholder Farmers in the Mopti Region Mali (USAID -thru World Bank) , , , , , , , , , ,995 1, , , , ,

28 Donor CGIAR CGIAR CIAT CIAT Program/Project - Large-scale Diffusion of Technologies for Sorghum and Millet Systems in Mali (ARDT-SMS) (USAID - thru World Bank) - Strengthening Impact Assessment Methods in the CGIAR Consortium - West Africa Regional Program Leader of the CGIAR Program on Climate Change, Agriculture and Food Security (CCAFS) - (EU) - Genetically Enhanced Pearl Millet with High Grain Iron Density for Improved Human Nutrition in West and Central Africa Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure ,000-1,929 1, CIAT - CCAFS-AgMIP Collaboration IFPRI/CIAT - Partnership-based Genetic Enhancement of Pearl Millet for High Grain Iron Density and Improved Human Nutrition in - HarvestPlus Phase II , IFPRI/CIAT - Identification of Micronutrients - Dense Sorghums for Better Health in Western and Central Africa (WCA) and Central - HarvestPlus Phase II IITA IITA IITA ILRI - Sustainable Intensification of Key Farming Systems in the Sudano- Sahelian Zone of West Africa - (USAID) - Strengthening Partnerships for Innovation in Beans, Groundnuts and Sesame Research and Technology Transfer in Mozambique - (USAID) - Intensification of Maize-Legume based Systems in the Semi-Arid Areas of Tanzania (Kongwa and Kiteto Districts) to Increase Farm Productivity and Improved Farming Natural Resource Base - (USAID) - Integrated Crop Livestock Production for Improved Food Security and Livelihoods in Rural Zimbabwe (ACIAR, Australia) ,927 1, , , ,

29 Donor ILRI (USAID funded) Program/Project - Africa RISING (Research in Sustainable Intensification for the Next Generation) Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure (B) 77,719 22,445 19,469 41,914 C. CGIAR Research Programs - Bilateral: Action Contre la Faim (ACF), Zimbabwe Aga Khan Foundation (AKF) Alliance for a Green Revolution in Africa (AGRA) ACIAR, Australia ACIAR, Australia ACIAR, Australia Austrian Development Agency (ADA), Austria University of Tasmania (UTAS), Australia - Technical Support for the Promotion of Conservation Farming by Action Contre la Faim (ACF) in Chipinge District, Zimbabwe - Establishing Individual and Community Trials for Millet and Sorghum (Variety Trials, Participatory Varietal Selection Trials, Long Term Trials on Integrated Striga and/or Soil Fertility Management) in and Around AKF's Target Villages in Mopti Region, Mali - Improving Soil Fertility Productivity and Livelihoods of Smallholder Farmers in Northern Uganda by Intensifying Diversification of Pigeonpea Cropping Systems - Improving Post-rainy Sorghum Varieties to Meet the Growing Grain and Fodder Demand in - Phase 2 - Increasing Productivity of Legume- Based Farming Systems in the Central Dry Zone of Myanmar Project - Increasing Irrigation Water Productivity in Mozambique, Tanzania and Zimbabwe - Developing Resilient and Profitable Rural Livelihood Systems in Semi- Arid Mozambique: A Conceptual Approach - Improving the Robustness, Sustainability, Productivity and Eco-Efficiencies of Rice Systems throughout Asia

30 Donor Program/Project Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure 2014 Bill and Melinda Gates Foundation (BMGF), USA Bill and Melinda Gates Foundation (BMGF), USA Catholic Relief Services (CRS) - Tracking Change in Rural Poverty in Household and Village Economies in South Asia - HOPE for Sorghum and Millets: Harnessing Opportunities for Productivity Enhancement (HOPE) of Sorghum and Millets - To Implement the Program that Aims to Reduce Food Insecurity and Malnutrition Among Vulnerable Rural Population in Niger ,950 7,798 1,519 9, ,515 16,838 2,866 19, Catholic Relief Services (CRS) - Training Activities CARE Inc CARE Inc CFC-Common Fund for Commodities CORAF / WECARD CORAF/ WECARD CIRAD - France EU-IFAD - Provide Technical Support to ECRP Consortium Implementing Partners in Seed Systems Development, Pre and Post Harvest Handling and Storage of Crops - Pathways to Secure Livelihoods: Empowering Women in Agriculture (Pathways) - Enhanced Livelihood Opportunities of Smallholders in Asia: Linking Smallholder Sweet Sorghum Farmers with the Bioethanol Industry - West Africa Seed Program: Production, Storage and Distribution of Breeders Seed of Sorghum Varieties of Trans-national Strategic Importance for WCA - An Integrated Cereal-livestock-tree System for Sustainable Land Use and Improved Livelihoods of Smallholder Farmers in the Sahel (CerLiveTreeS) - (funded by AusAID) - Sweet Sorghum: An Alternative Energy Crop (SWEETFUEL) - (EU) Incremental EC Contribution to CGIAR - Increasing Food Security and Household Income through Small Stock Market Development in Zimbabwe ,

31 Donor Program/Project Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure 2014 FARA, Ghana Food and Agriculture Organization (FAO) GIZ, Germany GIZ, Germany GIZ, Germany GIZ, Germany GIZ, Germany GIZ, Germany GIZ, Germany Global Crop Diversity Trust (GCDT) Global Crop Diversity Trust (GCDT) - Implementation Phase of the Universities, Business and Research in Agricultural Innovation (UniBRAIN) Project - Support for Workshop Community Seed Production (CSP) 9-11 December 2013, Addis Ababa, Ethiopia - Tackling Abiotic Production Constraints in Pearl Millet and Sorghum-based Agricultural Systems of the West African Sahel - Adapting Agriculture to Climate Change: Developing Promising Strategies using Analogue Locations in Eastern and Southern Africa - The Role of Information Networks for the Adoption of Agricultural Innovations - the Case of Sorghum and Finger Millet in Tanzania - Intercropping of Banana and Sweet Sorghum in Marginal Lands of Gujarat, to Demonstrate Socioeconomic and Environmental Benefits - Genetic Resources Collections of ICRISAT - Easy Molecular Breeding Tools for Accelerating Sorghum Improvement in West Africa - Bringing the Benefits of Heterosis to Smallholder Sorghum and Pearl Millet Farmers in West Africa: Establishing a Solid Foundation for Hybrid Development - Providing for the Long-Term Funding of Ex Situ Collections of Germplasm Held by ICRISAT - Regenlntro: Introduction of Accessions from the Regeneration Initiative into the International Collections held by ICRISAT , ,616 1, , ,588 1, , , ,906 1, ,

32 Donor Program/Project Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure 2014 ICBA IER, Mali IFAD Department of Agriculture & Cooperation, Department of Agriculture & Cooperation, Department of Agriculture & Cooperation, Department of Agriculture & Cooperation, Department of Agriculture & Cooperation, Department of Biotechnology, - Sorghum and Pearl Millet for Crop Diversification, Improved Crop- Livestock Productivity and Farmer Livelihoods in Central Asia - Unlocking the Opportunities to Enhance Sustainable Seed Systems of Staple Crops (Sorghum, Pearl Millet, Maize, Cowpea and Groundnut) to Improve Food Security and Agricultural Production in West and Central Africa - (AusAID) - Sustainable Management of Cropbased Production Systems for Raising Agricultural Productivity in Rainfed Asia - Development and Promotion of Promising Varieties/Lines with High Yield and High Oil Content with Enhanced O/L Ratio for Enhancing Production and Quality of Groundnut Oil in Drought Prone Environment to Boost the Income of Small & Marginal Groundnut Farmers in - Developing Chickpea Cultivars Suited to Mechanical Harvesting and Tolerant to Herbicides - Addressing Phytophthora Blight Disease: an Emerging Threat to Pigeonpea Expansion and Production - Macro Management of Agriculture - Supplementation/Complementation of States' Efforts through Work Plan: Release of Central Assistance during Utilizing Chickpea Genome Sequence for Crop Improvement - Centre of Excellence for Highthroughput Allele Determination for Molecular Breeding , , , , ,475 1, , , ,551 1, ,541 29

33 Donor Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, Program/Project - DBT-ICRISAT Platform for Translational Research on Transgenic Crops (PTTC) - Deployment of Molecular Markers in Chickpea Breeding for Developing Superior Cultivars with Enhanced Disease Resistance (Sub-Project -1) - Deployment of Molecular Markers in Chickpea Breeding for Developing Superior Cultivars with Enhanced Disease Resistance (Coordination Cell) - Crop Biofortification of Groundnut and Pigeonpea for Alleviating Vitamin A Deficiencies in - Generation of Mapping Populations and Identification of QTL(s) for Downy Mildew Resistance in Pearl Millet (Pennisetum glaucum (L.) Br.) - Secondary Metabolites of Entomopathogenic Microbes to Control Helicoverpa Armigera - Biofortifying Sorghum with High Grain Iron and Zinc Content for Combating Micronutrient Malnutrition - Genomics Assisted Accelerated Product Development of High Yielding Pigeonpea Hybrids - Development of Low-lignin Highbiomass Sorghums Suitable for Biofuel Production - Integrating Bio-treated Wastewater with Enhanced Water Use Efficiency to Support the Green Economy in EU and (Water4Crops) - Fellowship for Mr Y Shashidhar under DBT-JRF Programme in Biotechnology and Applied Biology. - Biofortification of Long Chain Polyunsaturated Fatty Acids in Peanut by Metabolic Engineering of Fatty Acid Biosynthetic Pathway Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure ,725 4, , ,

34 Donor Department of Biotechnology, Department of Biotechnology, Department of Biotechnology, (thru Biotech Consortium Limited) Department of Land Resources, Department of Science and Technology, Department of Science and Technology, Department of Science and Technology, Department of Science and Technology, Department of Science & Technology, Department of Science & Technology, Program/Project - Biofertilization and Bioirrigation for Sustainable Mixed Cropping of Pigeonpea and Finger Millet (BIOFI) under Indo-Swiss Collaboration in Biotechnology - Molecular Diagnosis and Genetic Variability in Fusarium Oxysporum f.s.p. Ciceris Causing Fusarium Wilt of Chickpea - Development of Actinomycetes based Metabolites as Delivery Systems for Soil, Health Management in Groundnut (Arachis Hypogaea L.) - Establishment of Model Watersheds in Maharashtra, Madhya Pradesh, Rajasthan and Tamil Nadu States under Technology Development Extension & Training (TDET) - Securing Chickpea Productivity under Contemporary Abiotic Stresses: Improvement of Podding and Seed-filling under Heat, Drought and Salinity - Indo-Australia Joint Project - DST-ICRISAT Center of Excellence (CoE) on Climate Change Research for Plant Protection (CCRPP) - Introgression of Shoot Fly Resistance QTL's into Elite Postrainy Season Sorghum Varieties using Marker Assisted Backcrossing (MAB) - Genomic Approaches for Stress Tolerant Chickpea - Innovation in Science Pursuit for Inspired Research (INSPIRE) - Faculty Award for Dr Hima Bindu Kudapa - Innovation in Science Pursuit for Inspired Research (INSPIRE) - Faculty Award for Dr Palakolanu Sudhakar Reddy Grant Period (MM/DD/YY) Grant Pledged Cumulative to 2013 Expenditure , ,