Centro hternacional de Mejoramiento de Maiz y Trigo, International and Cenh htemahnal de Mejoramiento de Maiz y Trigo, A. C. and Supplemental Schedules for the Years Ended December 31,2006 and 2005 and Independent Auditors’ Report Dated March 16,2007 Table of contents Page Letter from the Chair of the Board of Trustees 1 Management Statement of Responsibility 2 Independent Auditors’ Report 3 Combined Statements of Financial Position 5 Combined Statements of Activities 6 Combined Statements of Changes in Net Assets 7 Consolidated Statements of Cash Flows 8 Notes to Consolidated Financial Statements 9 Supplemental Schedules Independent Auditors’ Report on Supplemental Schedules 16 Exhibit 1- Schedule of Grant Revenue 17 Exhibit 2 - Restricted Pledges and Expenses 20 Exhibit 3 - Combined Schedule of Fixed Assets 28 Exhibit 4 - Schedule of Indirect Costs 29 Exhibit 5 - Schedule of Generation Challenge Program 30 Centro Internacional de Mejoramiento de Maiz y Trigo, Int. and Centro Internacional de Mejoramiento de Maiz y Trigo, A.C. Letter from the Chair The past year has been a very pleasing one for CIMMYT with significant progress in terms of both program (research) and financial results. The Centre was delighted to be chosen as the recipient of the 2006 CGIAR King Baudouin award for our work on stress tolerant maize for sub- Saharan Africa. Receipt of this prestigious award is recognition of the excellence of our science and the hard work of our researchers and partners. We were also pleased to benefit from a very positive follow up mini-review to ow EPMR.T he chapter on that EPMR is now closed on a very positive note. Financially, ClMMYT has also made very good progress during the past year. Despite a number of adverse events impacting on projected income, CIMMYT bas recorded an operating surplus of %394K for 2006. Again, this has been achieved through the hard work of staff and prudent financial management. At the end of 2006 CIMMYT had 80 days of reserves, well within the CGIAR approved range of 75-90 days and above 75 days for the first time since 1997. Working capital has increased to 94 days and is within the CGIAR mandated level of 90-120 days. Cash on hand remains very positive and amounted to %16.5M as at the end of the year. Expenditure in 2006 amounted to $35.5M,a &crease on that for 2005. During 2007, Management will work hard to ensure that income levels increase in line with program driven needs. CIMMYT continues to actively participate in CGIAR-wide developments, including the next round of challenge programs. We see the expansion of the CGIAR agenda and the broadening and strengthening of partnerships at all levels as being absolutely essential if the work of the centres is to remain relevant and having impact in the places where it should (and must). Similarly, CIMMYT is committed to the alliances with both ICARDA and IRRI. CIMMYT is looking forward to the future with confidence; a focused research agenda that is well supported h m a strong financial base will ensure that we continue to be relevant and that we continue to havc impact upon the livelihoods of the mource-poor whom we serve. pYours zsincer ely, Professor Lene Lange Chair, CIMMYT Board of Trustees 1 Centro Internacional de Mejoramiento de Maiz y Trigo, Int. and Centro Internacional de Mejoramiento de Mslz y Trigo, A.C. Management Statement of Responsibility for Financial Reporting On the financial statements tbr the year ended 31 December 2006 The Institute's management is required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the institute as at the end of the financial year and of the results of its activities for that year. Management is also required to ensure the institute keeps proper accounting records which disclose, with reasonable accuracy, the financial position of the institute and are also responsible for safeguarding the ass& of the institute. Management accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and' prudent judgments and estimates, in conformity with the requirements of the CGIAR Financial Guideline Series No. 2 - Accounting Policies & Reporting Practices Manual (Revised November 2003). Management is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the institute and of its results of activities. Management further accept responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. .Nothing has come to the attention of the management to indicate that the institute will not remain a going concern for at least the next twelve months from the date of this statement. Signed on behalf of Management by: Dr. Masa Iwana rtin van Weerdenburg (CA) Director General of Corporate Services 2 Gala?., Yamaraki, Ruh Uqulza. S.C. Pare0 de Ia Reforma 505 Piso 28 Colonla Cuauhtbmoc 06500 Mxico, D.F. Independent auditors' report Mexico Tel: +52 (55) 5080 6OOO To the Board of Trustees of Fax: +52 (55) 5080 6001 www.deloiie.com/mx Centro Internacional de Mejorarniento de Maiz y Trigo, International and Centro Internacional de Mejoramiento de Maiz y Trigo, A. C. We have audited the accompanying combined statements of financial position of Centro Intemacional de Mejoramiento dc Maiz y Trigo, International and Centro Intemacional de Mejoramiento de Maiz y Trigo, A. C. . (collectively the "Organization"), both of which are under common ownership and common management, as of December 31.2006 and 2005, and the related combined statements of activities, changes in net assets and cash flows for the years then ended. These financial staternents arc the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with International Standards on Auditing. Those standards rcquire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining. on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statenient presentation. We believe that our audits provide a reasonable basis for our opinion. As described in Note I to the combined financial statements, these financial statements were prepared on the basis of the Consultative Group on International Agriculhral Research ("CGIAR") Accounting Policies and Reporting Practices Manual. In our opinion, such combined financial statements present fairly, in all materials respects, the financial position of the Organization as of December 3 1, 2006 and 2005, and the results of its activities and its cash flows for the years then ended in accordance with the CGIAR Accounting Policies and Reporting Practices Manual as described in Note 1. l'hi report is intended solely for the information and use of management and the Board of TNSW of the Organization and should not be used by anyone other than these specified parties. Galaz, Yamazaki, Ruiz Uquiza. S. C. Member of Deloitte Touche Tolunatsu Memkr of Oeldtte T w hlb hmabu 3 Centro lnternacional de Mejoramiento de Maiz y Trigo, International and Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Combined Statements of Financial Position As of December 31,2006 and 2005 (Thousands of US. Dollars) A S S E T S Note 2006 2005 .............................................................. ....." . .............." .. ............................................................................... ............................................................................... ........... -Acc ounts receivable: ----.--.--..--_-1111. ._ D.. onors - Net . ._ ". .............................................4.. ". ....." . ....... 4,..7...1..1... .................................................8...,.1....0...4... . .. IO.th._e r . . - .. ............... -. ...... _.. ....................... - 1,.0 73.... ................. 1,252 -.__ --I--.-.__ Inventory and supplies 437 374 -__.__--- -___l...--...--_l ..I.--._--._.__._ I.. .-.- ..._I- ........ .. - ^ -- _I..--. .I._ __ Prepaid expenses 55 10 Total current asse_ ______I_--_---_-_ ..- ^I. -.---. - ts .................... ...................... ". .................2.. 9,921 ..........................2...2. ,792 ..... No!!=wrent..~sets... ................................................................................. ._... ............................................................... .- .... ~ ................................................. ................P. rop...e..r. ty_ a nd E.q...u..i.p...m.. entI net . . . .5..... .......... ._.. ............................... 14 1.9 ....9....1... ..................................................... 14..! .9...5....2... ....... ... To..t...a....l.. ..n......o.....n.. current asset.s... ......... .....................................................................................1...4....,..9...9....1... .......................................................1...4....,..9...5....2... TOTAL ASSETS S 44,912 $ 37,744 LIABILITIES AND NET ASSETS Cur-rent Liabilities. - -. .. - ....- I. ^_"_ .. . -""_ ......... -- . .C....u...r..r..e...n....t. .p....o...r..t..i.o...n... .o....f. ..l.a...b....o...r.. .o...b....l.i.g...a....t.i.o....n... ............. ...............9... ...........................$... ..............1...,.3...9...0... ...............................$... .............1...,.1...9...0. Accounts p..a...y..a...b..l .e__:_ I . ........................ ...I ....... __ ....D O?OrS _.... ........ ................................ ~ ......6.... ............................................... 9,377 ............................. ................. . Challenge.... .p....r..o.... gram and.... .c....o....l.l..a...b....o....r...a....t.i..v...e....s.... ........................... 7 .........................................,.. ............7....,..4....6.....4.... ......... ................................6.....,...1.... 03_ ....... Other ...............................................................................................................1.....6...3...9... ...................................... .9.7.3 572 ..............................8.... ........................................ 1,152.... .................................................................... .............................T....o...t.a...l. .c...u...r..r..e...n...t.. .l.i..a..b....i.l.i..t.i..e..s... ....... _ .............................................................................2...1...,.0...2...2... ............. , ..................1...5...,.0..4...0.. . Nonaurrent Liabilities _l_l_I-----̂ -_------- _l_ -___-----__lll _L_a_b".o..r obligation ._..__-_._--_ . 9 877 535 ._.l________l_._ _.-._I__._.._.._ I_..I ....- .... .- .._ ... ........--... C.......o.I n...t.i..n...g...e....n...c...i.e...s... ................................. ....................................................... 13. ......................................... .1, 4503 2 7 ....................... :... ..... ....................................T....o....t..a...l.. .n....o.....n....c...u....r...r..e....n....t.. .l..i.a....b....i.l..i..t..i.e....s... ..............................................................................................................................................- 535 ................................ ............................................................................................................................................................... ...................................................... ......................................T....o....t..a....l. . lia.b_.. .i..l.i.t..i.e...s... .................................................................................................................2 21349 ................................... 1 5 m . ..... ... Net Assets __-I___---- --- Unrestri..c...t..e....d.. : .............. ........................... ......... _ .................1...0.... ............................... ._... .............................................. ... 14,g5.2 Des... ignat~ ed ........ ".. ........... 14,991 . . Undesignated 7,572 7,217 I... ............... ..̂ ._ .._._...-_.._ _._l... _..-...._.._ ..-.__.I_._.I_.. 1_. . ---_- ............................................T....o.....t..a. l u_n..r ...e....s....t...r..i..c.....t..e....d..... .n....e.....t.. ..a. ssets .....................................................................2...2....,.5...6....3... .......... ................... 22,1..6...9.... ...... TOTAL LIABILITIES AND NET ASSETS S 44,912 s 31,144 See accompanying notes to Combined Financial Statements. 5 Centm lntemacional de Mejoramiento de Maiz y Trigo, International and Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Combined Statements of Activities For the years ended December 31,2006 and 2005 (Thousands of U.S. Dollars) 2006 2005 Note Unrestricted Restricted Challenge Total Total Program Revenues and Gains .................................................... ........... _.I.--.----_.--- -- ------- Grants /revenue 11 $ 14.871 $ 16.412 . $ 2.882 $ 34.165 $ 38.020 Other revenues and gains 11 1,789 .- 1,789 1,855 . Total revenues and gains 16,660 16,4T2 . 2,882 35,954 39,875 ' Expenses and losses --.-------.-_1.-..-- -_----.-I.__.-. -I ...... ......- I_--.-._.^1_.1 1.---.- ' Program-re.l.a....t.e....d... .e...x...p....e...n....s...e...s... ...................................1...2... ...........................................9....,.2....0...8... ...............................1...6....,.4....1...2.... ...................................2....,.8....8...2... ....... ..........2 8,502 ....................3......1.....,...0.....2 2 .M......a....n.....a... gement and- g ..e...n...e...r..a....l. .e...x...p...e...n....s...e...s... .........1...2... ........................................6....,.0....1...9... .................................................. ._ ...............................................................................6.....,..0.....1....9..... ....................................... 6,498 O......t. her losses and. .e.....x...p.....e....n....s....e....s.... ......................................1....2..... ..................................... 1,039 ................................................................................ ........................1....,..0.....3....9.... ...............................................3.....5.... 4 Total expenses and losses 16,266 16,412 2,882 35,560 37,874 NET SURPLUS $ 394 $ ' 9 J $ 394 $ 2,001 Expenses by Natural Classification . . Personnel costs .. $ 9,922 $ 5.861 ....... $ 8--.1- 3 $. 16,.59--.- 6 $ 18,022 suPP~~a!!t!eFk? 3 ....L. ..8......8 1 .._..... ... 5I 4. ....2....7 1 044 10I 352 ---- -9,816 - Collaborators I partnership costs 922 3,831 . 835 5,5 ............................................ -88 6,176 O..-.._._p__e-..-I-.-_r.-._a tional travel -.. ...............................7...1...9... ............................1...,.1...9...7.. ...........'. ..... 119 2,0-3-5 ---_ 1,907 Depreciation 822 96 71 989 1,953 Total $ 16,266 $ 16,412 . $ 2,882 $ 35,560 $ 37,874 See accompanying notes to Combined Financial Statements. 6 Centro lnternacional de Mejoramiento de Maiz y Trigo, International and Centro lnternacional de Mejorarniento de Maiz y Trigo, A. C. Combined Statements of Changes in Net Assets For the years ended December 31,2006 and 2005 (Thousands of US. Dollars) Undesignated Designated Total Fixed Revaluation of land Note Assets and buildings Sub=tOhl Balance, January 1, 2 005 S 4,861 $ 3,079 $ 12,228 $ 15,307 $ 20,168 ~ ... .... .. .. . .. .. ... ... ..... ..... Net change in fixed assets 355 (355) (355) Netsurplus 2;ti 2:ti Balance, December 31,2005 7,217 2,724 12,228 14,952 22,169 Net chang_e._ i-n__ f..i~x._e_d_ _a_s._s_e._t_s._ ..-____..___I._.. (3-9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. .9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. . .9 IN.-_..e--_t-_ .s urplus _.._.I__.... ._._._I.-_---_-.3 94 ............................. ~ ...._-_-....I. .3. 94 Balance, December 31,2006 $ 7,572 $ 2,763 $ 12,228 $ 14,991 $ 22,563 See accompanying notes to Combined Financial Statements. 7 Centro lntemacional de Mejoramiento de Maiz y Trigo, International and Centro lntemacional de Mejoramiento de Maiz y Trigo, A. C. Combined Statements of Cash Flows For the years ended December 31,2006 and 2005 (Thousands of US. Dollars) 2006 2005 Cash flows used in operating activities Change in net assets $ $394 $ $2,001 Adjustments to reconcile change in net assets to net cash provided by- (uIsed_ in) o-per_ating a-ctiv ities ---_I_--- Depreciation 989 1,953 I _._____l_ll-__l_-l_ -̂ll_..-_lll -N et periodic I- .- _p en- s-ion cost -- 386- _ 83 Gain on s-a--l.e- of fixed assets (77) tw- -I---.-- Increase (decrease) in liabilities Labor obligations 156 1,142 --I__--------- Donors 3,175 Challenge program and c-ol --- 1,361 (1 1711) --I---laboratives Other accounts payable 666 (937) __II--_I- -A-ccrua lsdmis ions 1,030 85 Net cash generaterfbyoperating3ies 11;!% l 526- Cash flows from investing activities Acquisition of futed assets (1,044) (1,604) Proceeds on sale of fixed assets 93 90 " ._ .. ............. . .. ... " "...."..I .. .. ........"..I._. ".....-"--..I ..... _. Cash set aside due to Challenge Program (1,232) (5,853) Net cash used in investing activities (2,183) (7,367) --_____I -.-. - Cash flows from financing activities -. -I--"".-1..--"1111---- .. -C apital leases (79i-* -.-_.-.. Net cash used in f i a - i f i r (79) Net increase (decrease) in cash and cash equivalents 9,361 (6,920) -.l-l.-l_".-l Beginning of the year 7,199 14,119 End of the year $ $16,560 $ $7,199 See accompanying notes to Combined Financial Statements. 8 Centro lntemacionald e Mejoramiento de Maiz y Trigo, International and Centro lntemacionald e Mejoramiento de Maiz y Trigo, A. C. Notes to Combined Financial Statements As of December 31,2006 and 2005 (Thousands of U.S. Dollars) 1. Statement of purpose and basis of Basis of presentation - The Organization presentation maintains its books and records in U.S. dollars, in accordance with the CGIAR Statement of purpose - Centro Accounting Policies and Reporting Practices Internacional de Mejoramiento de Maiz y Manual, herein after referred to as “the Trigo, International (CIMMYT, Int.) was Manual”, for report presentation and formally created through an agreement specific accounting principles. signed by the United Nations Development Programme and the International Bank of Accounting principles included in Reconstruction and Development, both the Manual generally conform with cosponsors of the Consultative Group International Financial Reporting Standards on International Agricultural Research (“IFW) with the following clarifications (“CGIAR), and is a not-for-profit, scientific and differences: and educational organization engaged in the,improvement of maize and wheat a. Since existing IFRS do not specifically cropping systems in developing countries. address issues unique to not-for-profit- Centro Internacional de Mejoramiento organizations, the manual has drawn de Maiz y Trigo, A.C. (“CIMMYT, A. C.”) , from other widely used standards to is a private association chartered under provide guidance on issues of importance Mexican law. CIMMYT, A. C. does not to not-for-profit organizations. carry out any activities and only holds part of the land and buildings where CIMMYT, b. International Accounting Standard No. Int. carries out its activities. These 1 provides that “entities with not-for- two entities which are under common profit activities in the private sector, ownership and common management, are public sector or government seeking to referred to collectively in this document as apply this standard may need to amend the “Organization” the descriptions used for certain line items in the financial statements and for A Headquarters Agreement, signed by the the financial statements themselves”. Government of Mexico on May 9,1988 In line with this provision, the Manual and ratified by.the Mexican Senate on has, in places, applied descriptions that December 22,1988, recognized CIMMYT, more closely reflect the nature of the Int. as having the status of an international Organization’s activities. organization. A revised agreement between the United Mexican States and CIMMYT, Additionally, IFRS and the Manual differ Int. concerning .the establishment of the with respect to the treatment of equipment headquarters of the Center in Mexico was purchased for restricted projects. The main signed on June 27,2003 with retroactive difference is that under the accounting effect from January 1,2003.D ue to its principles of the Manual, the Organization status as an international not-for profit depreciated 100% equipment amounting organization, the Organization is exempt to $91 and $851 purchased during the from income taxes, please refer to note 13. years ended December 31,2006 and 2005, respectively, whereas under IFRS, such 9 purchases would have been capitalized and anticipated economic conditions. and depreciated over the life of the related Uncollected outstanding grants projects. receivable are written off through the allowance for doubtful accounts in the The preparation of the combined financial year in which they are identified. statements in conformity with the Manual policies requires management to make C. Cash and cash equivalents - Cash and estimates and assumptions that affect the cash equivalents comprise cash on reported amounts of assets and liabilities hand and bank current accounts. The and disclosure of contingent assets and Organization considers all highly-liquid liabilities at the date of the combined debt instruments purchased with an financial statements and the reported .original maturity of three months or less amounts of revenues and expenses during to be cash equivalents. the reporting period. Although management believes the,estimates and assumptions d. Property and equipinent - Land and used in the preparation of these combined buildings are initially recorded at financial statements were appropriate in the acquisition cost and may be periodically circumstances, actual results could differ revalued based on independent from those estimates and assumptions. appraisals. Buildings are depreciated using the straight- line method based on The combined financial statements of the the remaining useful life as determined Organization have been.prepared on the by the appraiser. accrual basis of accounting. Property and equipment is recorded 2. Significant accounting policies at acquisition cost. Cost includes the purchase price and all'other incidental costs A summary of the significant policies incurred in bringing the asset to its present adopted in the preparation of the location and condition for its intended use. accompanying combined financial Depreciation of equipment is calculated on statements followed are as follows: a straight-line basis so as to expense the cost of assets over their estimated useful lives, in a. Revenue recognition - Grants, whether accordance with the Manual guidelines, as restricted or unrestricted, are recognized determined by management. The property as revenues only when grant conditions and equipment acquired through the use have been substantially met or the donor of grants restricted for a certain project is has explicitly waived such conditions. recorded as an asset. Such assets are fully depreciated in the year of acquisition and b. Donor accounts receivable - Donor the depreciation expense is charged directly accounts receivable represent amounts to the appropriate restricted project. recoverable from donors for unrestricted and restricted grants promised or Estimated useful life for property and equipment are pledged for which conditions have shown below: already been met. Donor receivables Estimated useful are stated at their gross principal life (years) amounts, less any provision for doubtful ........................................................................... ............................... accounts. The provision for doubtful Equipment for restricted projects 1 accounts is based on the estimated A. i"r icultur...a....l. .e... a.u...i.oment ...... 10 ! . ! .. " . Furniture and fixtures 10 collectible balances developed through Comp management's periodic review and ..u...t..e..r..s... ......................................................................... 3 Laboratory equipment 3 analysis of the receivable balances, as !!?!!!E-- 4 I--_- ._- well as assessment of the prevailing Buildings 20 - 40 .. 10 e. Income taxes - The Organization is costs recovered from restricted projects tax-exempt; accordingly, no provision based on the rates agreed and as stated in for income taxes has been made in project documents with the donors. the accompanying combined financial statements. j . Provisions - Provisions are recognized for current obligations that (i) result from a f. Accounts payable to donors - These past event, (ii) are probable to result in the represent grants received in advance from use of economic resources, and (iii) can be donors for unrestricted and restricted reasonably estimated. grants, for which the grant conditions have not yet been met. It also includes k. Reclassifications - Certain amounts in amounts payable to donors when donors the combined financial statements as of require reimbursement of unexpended and for the year ended December 31,2005 grant balances. have been reclassified in order to conform to the presentation of the combined g. Other accounts payable atid accruals financial statements as of and for the year - These represent amounts to be paid in ended December 31,2006. the future for goods or services received, whether billed by the supplier or not. 3. Cash and cash equivalents h. Labor obligations - In accordance with 2006 2005 Mexican Labor Law, the Organization provides seniority premium benefits to its Cash..on..ha!!d.. ...a nd-.!n.!anks .............3 .....5 !421.!... .... ...$ 474 employees under certain circumstances. Short-term investments 11,139 6,725 These benefits consist of a one-time Total $ 16,560 $ 7,199 payment equivalent to 12 days wages for each year of service (at the employee's During periods of cash surplus, the most recent salary, but not to exceed Organization makes short-t erm investments twice the legal minimum wage), payable based on fixed interest deposits. Investments to all employees with 15 or more years of in Mexican pesos are held in a short-term service, as well as to certain employees interest-bearing account in a Mexican bank terminated involuntarily prior to the or in governmental securities. Interest is vesting of their seniority premium credited to income as earned. benefit. Cash in the amount of $7,085 and 5,853 as of The Organization also provides December 31,2006 and 2005 respectively has statutorily mandated severance benefits been set aside as it pertains to the GCP. See to its employees terminated under certain Note 1. circumstances. Such benefits consist of a one-time payment of three months 4. Accounts receivable - donors wages plus 20 days wages for each year of service payable upon involuntary or 2006 2005 voluntary termination. F. unds: .................................... ._ .................................. Unrestricted . . ............. _ $ 1,391 $ 2,892- Costs associated with these benefits R..... es....t..r...i..c.... ted.... ..-. .............. ...."...........I.. ...... 4,933 6,49..5..- "_ . . I are provided for based on actuarial Less -Allowance for expenses paid on behalf computations using the projected unit _ of projects in e...x....c.. ess ..o....f. grants received (1,16..4....).. ....... ~ ._...(. ..1......,...1......6...... 4) credit 'method. Less -Allowance for doubtful accounts (449) (200) ......................... _ 4,711 ........................ Indirect recovery costs - from the 'Generation Challenge Proaram" -. .. 8,023 i. Due 81 Indirect recovery costs represents the indirect Total $ 4,711 $ 8,104 11 During the years ended December 31, different organizations (the “Consortium 2006 and 2005, the Organization wrote off Members”), whose principal goal is to uncollected donor and other receivables increase food security, improve livelihoods, totaling $266, and $224, respectively. Such improve development by unlocking amounts are presented within the total bad the genetic potential of crop species debt expense in the combined statement and their relatives and enhancing the of activities under “Other losses and use of public genetic resources in plant expenses”. breeding programs through the concerted generation, management, dissemination 5. Property and equipment and application of comparative biological knowledge. During December 2003, the Organization changed its method of accounting for land The Program is supported by the World and buildings from historical cost to fair Bank, the European Commission, value and obtained an appraisal of land DFID, and other donors (collectively and buildings, resulting in a net increase of the “Supporter Organizations”) and is $9,151. governed by an independent Steering Committee. In addition, for 2006 and 2005 the Organization depreciated $91 and $851, The Organization acts as a host agent and respectively for equipment purchased for must comply with the following: restricted projects in compliance with the CGIAR Accounting Policies and Reporting a) Establish and oversee the operation of Practices Manual. the account; b) If requested by the Consortium Depreciation expense amounted to $989 Members for a particular and $1,953 for 2006 and 2005, respectively. Commercialization arrangement, collect and pay royalties, license fees and other Refer to Exhibit 3 for a detailed analysis of receipts; and property and equipment. c) ,Make all payments approved by the Program Steering Committee, including 6. Accounts payable - donors Programs funds to be made available to the Consortium Members. Funds 2006 2005 Unrestricted $ .87.,4663 1 The liability due to the Program in the . .........$.. ......1. ,321 Restricted 4,aai’ combined statements of financial position represent the resources provided by the Total, $ 9,377 $ 6,202 Supporter Organizations that are held in the Organization’s bank accounts and managed by the Organization as a 7. Challenge Program and Collaboratives host agent until the Steering Committee determines their distribution or Funds 2006 2005 application. The activity of the program Restricted -Generation Challenqe . is recorded in the program accounting .............P....r..o....g....r..a....m...... .. ._ ..............$.... ......7...,..0...8....5... ..............$.. 5,853 records, and therefore such activity is not Restricted - Collaborative Proiects 379 250 presented in these financial statements. Total $ 7,464 $ 6,103 The Generation Challenge Program (the “Program”) is a consortium formed by 12 8. Accruals and provisions 11. Revenues 2006 2005 a. Grants - Funds received from donors !?!mFs.re! search..~other..ins~u~.o.n..-..s 3)4 48 s. .......1 3s are used to support the Organization's .... programs. Programs must fall within Accrued staff taxes 186 .- 117 the mandate of the Organization and Other staff accruals 324 299 be approved by the Board of Trustees. These must also be approved by the Total $ 1,152 S 512 members of the CGIAR, who then provide the funding (see Exhibit 2). 9. Labor obligations Grants are divided into unrestricted and restricted grants. Unrestricted grants Net periodic pension cost for obligations are used to support the Organization's resulting from the retirement plan, seniority activities. Restricted grants also support premiums and severance payments were the Organization's activities, but they $386 and $83 in 2006 and 2005, respectively. must be used for the activities mutually Included as a current liability as of agreed upon between the Organization December 31,2006 and 2005 is $1,390 and and the donor. $1,190, respectively, which is expected to be paid in 2007 related to the Organization's b. Other revenue and gains - For the years early retirement program. ended December 31,2006 and 2005, other revenues and gains are as follows: The Organization maintains a defined benefit plan for all employees, which 2006 2005 pays benefits to employees who reach 60 and 45 years of age and 10 and 20 years Restaurant and snack bar ..................... $ 298 $ 3..0...0. of continuous services, respectively. The H....o...u..s...i no and laundrv 3~~~ 30 3~~~ 23 ,,"" ...... *. ................... ... . . .. normal benefit consists in a percentage of Interest inc.__o_-m-._---_e.._ ---..--I_..---- 2_8_0- 403 the statutory indemnity compensation, Recover..y... .o.~ f valu..e... --a--d d.e....d. tax 229 "....._......__.I 35.8 taking into consideration the years of service Management fee - Generation provided to the Organization. ---..-.C- halleng_e..- .P. rog-r_am__ -_ 488 324 -1_1-_1_-..- Cor.p.....o.....r...a....t..e..... ..s....u.. pport . _ ........... 8777 - 63. ... Gain on sale of fixed assets 84 10. Net assets Total $ 1,789 $1,855 Net assets represent the residual balances of total assets minus total liabilities. The net assets are further classified as follows: 12. Expenses and losses Unrestricted, designated net assets - In line with previous years, a restricted Represent net assets whose use is not contribution had been expected from the restricted by donors but restricted by the European Union for 2006. Expenditure for Organization management for specific the relevant research activities was made purposes. For the Organization, this throughout the year. The fact that there represents the accumulated cost of property would not be a contribution was known to and equipment, net of accumulated CIMMYT only in December 2006, by which depreciation. time the bulk of the expenditure had taken place. In consequence, this expenditure was Unrestricted, undesignated net assets - reclassified from Restricted to Unrestricted Includes the accumulated surplus. These expenditure. The impact on these combined funds are intended to be used to meet the financial statements is that the following Organization's ongoing cash requirements. 13 amounts are now included under a. Program-related expenses are as follows: Unrestricted Funding caption: 2006 2005 Personnel costs $ 1,067’ R.....e....s...e....a....r. ch $ 23,450 $ 26,513 S......u......p.......p..... lies and services ............4...1..7... Research SUOOOI~ 3.946 3.639 C._o llaboratorslPartners 15 I..n...f..o....r..m......a...t..i.o... n sewices . . . . . . 794 732 O.... peratio..n...a....l. .t.r...a...v...e...l. ..........................................................................................9.. T-.--r aining 312 138 Depreciation 10 .............................. ........................................................................................ Total $ 28,502 $ 31,022 Total $ 1,518 b. Other losses and expenses are as follows: Program-related exp.enses are expenses incurred by the Organization’s principal 2006 2005 programs and supporting cost centers as E_ xchange. .lo ss I~ (gain. ). ........--._._I..._ $ 226 $ (54)- described below. B. ad. ..d.. ebt ex.p __e_ nse 765 - 22..4.... .. Interest expense and bank commissions 48 184 Research - These expenses are incurred in Total $ 1,039 $ 354 direct research operations by the following programs: Global Wheat; Global Maize; Genetic Resources; and Impacts Targeting 13. Commitments and contingencies and Assessment. Commitments - The Organization believes Research support - These expenses are that it has complied with all aspects of incurred in direct support to research contractual agreements, grants and donor activities addressed in the research restrictions that could have an effect on the programs listed above. combined financial statements. brfonnation services - Includes the costs Contingencies - As explained in Note 1, of publication of annual reports and the Organization has an agreement with technical bulletins, translation and printing . The Secretary of Foreign Affairs of the of various public information activities, as Government of Mexico (“SRE”), which well as the cost of library services. recognizes the Organization as having the status of an International Organization Training - Except for amounts charged and therefore is exempt from income taxes. directly to research programs, training However, it is not clear if the agreement also includes the costs applicable to trainees provides exemption for the Organization from various developing countries. regarding state and municipal taxes. In the These costs are incurred in Mexico and in event the Organization does not receive regional offices. exemption from state and municipal taxes, it could lead to certain legal and tax Manageinent and general exparses - These contingencies for the Organization. expenses comprise general administration expenses, including expenditures Although no claim against the Organization applicable to the Board of Trustees, has been asserted, it is expected that Management, Finance, Human such claims may be brought against the Resources, Purchasing, Supplies, Building Organization in the future. Therefore, Maintenance, Security, General Services the accompanying combined financial and Housing. statements for 2006 reflect the Organization’s estimate of $450. Such amount is based on the possible state and municipal payroll taxes incurred during 2003,2004,2005 and 2006. 14 Supplemental SCHEDULES 15 Deloitte, Galaz, Yamazaki, Ruiz Urquiza, S.C. Pas- de la Reforma SO5 Piso 28 Colonia Cuauhthmoc Independent auditors’ report on 06500 MBxico. D.F. Mexico Tel: +S2 (55) 5080 6000 supplemental schedules Fax +52 (55) 5080 6001 www.deloitte.comlmx To the Board of Trustees of Centro Internacional de Mejoramiento de’M aiz y Trigo, International and Centro Internacional de Mejoramiento de Maiz y Trigo, A. C. We have audited thc coinbincd financial statements of Cenrro lnternacional de Mcjoramiento de Maiz y Trigo, lnteniaiional and Ccntro lnternacional de Mejoramiento dc Maiz y Trigo, A. C. (collectively thc “Ofganizalion”), both;of which arc undcr common ownership and common management, for the years cndcd Decembcr 3 I , 2006 and 2005, and our repon thercoii appears on page I . Our audils were conductcd for the purpose of fonning an opinion on the basic combined financial statements taken as a whole. Tlie followiiig supplcmenlol unaudited schcdulcs, wliicli arc the responsibility of the Organization’s managemcnt, are only prcscnted for the purposes of addihnal analysis and are not a required ‘pan of the basic combined financial siaiemcnw: 0 Exhibit I - Schcdule of Grant Rcvcnuc. Exhibit 2 - Keslricted Pledges and .Expenses. Exhibit 5 -. Schcdulc of Gcneration Challengc Program. Such schedulcs liavc not been subjected to the auditing procedures applied in our audils of the basic financial statements and, accordingly we express no opinion on them. The remaining supplemental schedules presented in Exhibit 3, Combined Schedule of Fixed Assets, and Exhibit 4, Schedule of lndirecl Costs, arc presented for the purpose of additional analysis and are not a required par7 of the basic combined financial statements. These schedules are the responsibility of the Organization’s management. Such schedules have been subjected to thc auditing procedures applied in our audits of the basic combined financial statements and, in our opinion, am fairly stated in all material rcspects when considered in relation IO the basic combined financial statements laken as a whole. This repon is intended solely for the information and u k of management and the Board of Trustees of the Organization and should not be used by anyone other than these specificd parties. Galaz, Yarnnzaki. Kuiz Urquiia, S. C. Membcr of Deloitte Touche Tohmatsu Member of Deloine Touche Tohmaau Centro lnternacional de Mejoramiento de Maiz y Trigo, International and Exhibit 1 Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Schedule of Grant Revenue For the years ended December 31,2006 and 2005 (Thousands of US. Dollars) 2006 2005 Funds Accounts Advance Donors Available receivable payment Grant Grant Unrestricted Australia 1,134 566 568 506 Canada 1,044 1,044 946 China 120 1~2 0 13.0. Denmark 48 1 481 438 France 152 15.2~ 14.3- Germany 430 430 162 I.n dia 113 1.1 .3- 1.1 .8- Japan 1,045 1,045 1,297 K. orea 5_ 0_ 5-0- 5-0- Mexico 25 Netherlands . 795 795 842 New Zealand 252 Norway 318 318 303 Philippines (4) 12 8 7 Sweden 504 180 324 345 Switzerland 489 489 491 Thailand 10 10 11 United States 4,048 4,048 3,956 United Kinadom 1,672 1.672 1.541 World Bani 3,000 204 3,204 1.750 Subtotal - Unrestricted 14226 1,391 746 14,071 13,308 Restricted ADB [Asian DeVelODment Bank) 180 29 209 318 Australia AusAlD 234 Australian Centre for InternationalA gricultural Research 447 41 488 131 Australian Centre for Plant Functional Genomics Pty Ltd. 25 15 10 CRC Molecular Plant Breeding 420 420 330 Grains Research and Develooment Comoration 285 706 991 1.105 Belaium 9 9 196 Brazil 32 32 6 Canada Canadian International DevelopmentA gency 1,561 42 1,603 2,045 CGIAR Centro lnternacionald e Agncultura Tropical 22 4 18 9 International Center for Agricultural Research in the Dry Areas 66 26 40 40 International Crop Research Institute for the Semi-And Tropics 7 International Livestock Research Institute 137 96 41 32 International Plant Genetic Resources Institute 5 5 10 International Rice Research Institute 20 InternationalW ater Management Institute (80) 87 .7 62 Standing Panel on Impact Assessment 2 2 4 Challenge Program tiiotomation ti50 J16 1,uzti Y83 tienerabon 1,131 3us 1,441 1,603 Water and kood (9) 410 409 262 17 1 0 6 2005 Funds Accounts Advance Donors Available receivable payment Grant Grant China CAAS 300 Lams00 Milling Company . 4 Colombia FENALCE (Federacion de Cultiiadores de Cereales y Leguminosas) 150 58 208 165 Ministry of Agriculture and Rural Development 2 2 5 Denmark 316 69 247 . 140 European Commission 132 58 190 1,905 FA0 27 14 41 49 France DRlC (Delegation aux Relations lnternationales et a la cooperation) 1 1 Germany -B. ASF 9-3- 5-0- 4.2_ 4.1. Federal Ministty of Economic Cooperation and Development 1,110 374 736 882 m(1nternational Atomic tnergy Agency) 15 FAD (International Fund For Agricultural Development) 99 579. 678 ,558 IDBllnter-American DeveloDment Bank) 10 10 India Indian Council of Aaricultural Research 500 206 294 ~~~~ Iran, Islamic Republic of (54) 114 60 241 ltahr Societa Produtton Sp.A. 13 18 31 11 l twnomic moperation uureau, Ministry or ForeignA IMIS 1, UYLI LZ3 1,3Z1 1J13 Nippon Foundation 691 4 687 119 Sasa kawa ~ t n c aAs saclabon 2s Razaksthan, Republic of 19 1 18 15 Korea, Republic of Rural DevelopmentA dministration 203 116 87 120 Mexico CONABIO (Comision Nacional para el Conocimiento y Us0 de la Biodiiersidad) 24 23 1 CONACYT (Consejo Nacional de Ciencia y Tecnologia) 289 48 241 95 SAGARPA (Secretaria de Agricultura, Ganaderia, Desarrollo Rural y Pesca) 219 62 157 7 Fundacion Guanajuato Produce A.C. 57 11 46 35 Fundacion Sonora 126 88 38 72 ICAMEX 47 17 64 30 InstiiubNacional de Investiclacbnes Forestales, Aclricolas v Pecuarias 43 ' 6 37 Universidad Nacional Autonoma de Mexico 2 2 8 .Miscellaneous Research Grants 154 222' ' 376 15 Netherlands EnvironmentalA ssessment Agency 10 1 9 12 OPEC Fund for International Development 16 48 64 86 Other 306 40 266 17 8 Peru 35 35 46 Rockefeller Foundation 1,998 718 1,280 1,899 Sehgal Foundation 100 100 50 South Africa National Department of Agriculture (72) 132 60 60 SDain Agrovegetal, S.A. 79 79 149 Ministerio de Agricultura, Pesca y Alimentacibn 250 73 323 324 18 2006 2005 Funds Accounts Advance Donors Available receivable payment Grant Grant Switzerland Swiss Agency for Development and Cooperation 1,244 386 858 1,219 Svnaenta Foundation 141 254 395 885 The Global Crop Diversity Trust 51 41 92 Turkey, Republic of Ministry Of Agriculture And Rural Affairs 27 138 165 253 United Kinadom 372 77 449 669 UNDP United Nations Development Programme (Africa Bureau) 24 24 Uruguay 1 I U_ S_ A Bill and Melinda Gates Foundation 5,821 5,630 191 Cornell University 50 18 68 66 National Center for Genome Resources (NCGR) 5 5 Pioneer Hi-Bred International 200 137 63 31 Stanford University 10 10 33 United States Agency for International Development 1,817 68 1,885 2,058 United States Department of Agriculture (27) 259 232 385 Washington State University (150) 289 139 204 World Bank 327 27 300 3,067 Subtotal Restricted before provision 22,992 4933 8,631 19,294 25,876 Less. Cost of expenses incurred not recovered (1,164) Subtotal - Restricted after provision 22,992 4,933 8,631 19,294 24,712 ~~ ~ ~ Total Grants -Donors Unrestricted and Restricted - 37,218 6,324 9,377 34,165 38,020 19 Centro lnternacional de Mejoramiento de Maiz y Trigo, International and Exhibit 2 Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Restricted Pledges and Expenses For the period from January 1, 2006 to December 31 , 2006 (Thousands of U.S. Dollars) Expenditures Donor and Program/ Project Grant Period Grant Prior Current (MMIDDRY) Pledged Years Year Total ADB (Asian Development Bank) Improving Farmers' Income through Enhanced Maize Productiiities in Drought-Prone Environments in East and Southeast Asia 03101105 - 02128108 750. ' 120 203 323 Enhancing farmers' Income and Livelihoods Through Integrated Crop and Resource Management in the ....- Rice-Whe. at .S.. y...s...tI.e m... ..i..n...... ..S......o.....u.....t..h...... A.. sia ............. .......... 40 __. ..... 1.9 __ ' 6 25 ~ .... Total .".,7go 139 209 348" Australia Australian Centre for International Agricultural Research Wheat and maize productivity improvement in Afghanistan (Phase It) 07101104 - 0613017 781 p 329 226 555 Increasing yield potential in wheat: complementing conventional breeding by application of novel physiological and germplasm strategies 07101199 - 10131106 504 ae 459 44 503 Ensuring productivity and food security through sustainable control of yellow rust of wheat in Asia 01101105 - 12/31/09 755 an , 95' 196 29 1 Scoping the long-term technical and economic feasibility of wheat production in southem Bangladesh 10101105 -08131106 33 ap 6 20 26 Zero-tillage rice establishment and crop weed dynamics in rice and wheat cropping systems in India and Australia 07101106 - 03/31/11 102 av Addressing constraints to pulses in cereal-based cropping systems, with particular reference to poverty alleviation in north-western Bangladesh -1-11---- T&iI------ Australian Centre for Plant Functional Genomics Ply Ltd. Abiotic stress resistance in wheat and barley 02101106 - 01/31107 25 10 10 CRC for Molecular Plant Breeding CRC for Molecular Plant Breeding 07/011 97 - 0613011 o 3,010 2,181 420 2,601 Grains Research and Development Corporation, Australia Kamal bunt . 07ai103 -06130106 332 q 247 64 311 Australian Cereal Rust Control program 07101102 - 06130107 1,246 ag 751 272 1,023 Program management 07101103- om0108 98 ai 30 15 5 Wheat Frost Project . 06101104 - . 4 05/30N7 34 am 18 12 30 CSlRO Brisbane 02101105 -02101107 8 m 8 3 11 Wheat genotypes 07101103 -06130108 1,125 aq 497 256 753 Wheat root diseases 07101103 - 12131107 223 ar 165 72 237 Synthetic wheats 07x11106 - 06130107 334 as 218 116 334 T o ~.-Gl ermplasm exch....a....n. g..e....dI u...s...t.r..a.. lia ._.. ................................... 01101106. ..-.. .0...6....1...3...0...1...0...8 ...3',2887 ._a t ._ ....... ._ ..1g.8g1." ~- .- 2,.198.1~ 5_ . 1,934 Canada Canadian International Development Agency QPM development for the Horn and East Africa 01113103 - 12~1107 3,223 2,070 820 2,890 Combating Hidden Hunger in Latin America: Biofortified Crops with Improved Vitamin A, Essential Minerals and Quality Protein o i n i n 5 - 12131106 235 116 103 219 Combating Hidden Hunger in Latin America: Deployment of Quality Protein and Beta Carotene Maize 01/01/05 - 12131106 266 626 ~0~ Global Rus.t.. ...I..n. itiative _. ................... .................... 04101106. .-.. .0..3...1..3..1...1 07 ..... le4a1s4 ~,4..~1, 4g . - . 20 Expenditures Donor and Programl Project Grant Period Grant Pri ir Current (MWDDNY) Pledged Years Year Total CGIAR Centro lnternacional de Agricultura Tropical (CIAT) Incremento de la produccion de maiz en el tropico de Bolivia 10101104 -06130107 25 3 12 15 Geographic Targ-eting of Biofortiiied Crops 031-0.- 1105 -01131106 11 5 6 11 Total 36 8 18 26 InternationalC enter for Agricultural Research in the Dry Areas (ICARDA) Increased Productivity and profitability of Wheat-based Cropping Systems to Reduce Reliance on Opium Poppy in Northern Afghanistan 01101105 - 12131106 107 40 40 80 International Livestock Research Institute (ILRI) ILRl Joint scoping study 04101105 - 2131105 25 I 9 6 25 Conservation agriculture, livestock and livelihoods strategies 07101105 - 06130107 351 13 35 48 Total 376 32 41 73 International Plant Genetic Resources Institute (IPGRI) Impact Assessment Learning and Operational Support Plalform 04115105 - 02128106 15 10 5 15 InternationalW ater Management Institute (MTMI) Assessing the impacts of zero tillage and other resource ------...c-...o.--.n_.Is erving techn-o logies - .. 04. 1.. 0110"3. . ..-... .0. ..3 131106 150 143 7 150 Total 150 143 7 150 Challenge Programs Biofortification Biofortified crops for improved human nutriiion 09101103 - 12/31/06 1,250 613 567 1,180 Assessing the potential of biofortification to address micronutrient malnutrition in wheat-based cropping systems of South Asia 01101104 - 12131106 100 94 6 100 Ex ante impact assessment of harvest plus: maize systems in Subsaharan Africa .. 04101104 - 12131106 144 90 36 126 e~ro.~~dw~e~!~~~~~~ve~~~omi/oiam4n - -12n131~10~6 on 1321 728 ~ ! !!?! 1 , 1 4 5 Total 2,815 1,525 1,026 2,551 Generation An ecophysiological -statistical framework for the analysis of GxE and QTLxE as occurring in abiotic stress trials, with applications to the CIMMYT drought stress programs in tropical maize and bread wheat. WUCIMMYT 07101105 - 12131107 90 8 6 14 Functional genomics of crossspecies resistance to fungal diseases in rice and wheat OlX)IK)5- 12/31/07 105 5 9 14 Develop innovative biotechnology approaches to improve the drought tolerance of tropical maize. GCPCIMMYT 04101105 - 03/31/07 640 106 273 379 Commkioned and Competitive projects 01101105 - 12131107 3,554 1,120 1,159 2,279 Total 4,389 1,239 1,447 2,686 Water and Food Increased food security and income in the Limpopo Basin through integrated crop, water and soil fertility options and public-private partnership 01101105 - 12131109 396 60 86 146 Conservation agriculture for the dry-land areas of the Yellow River Basin _. . ................. ......................... . . ._.. 202 323 525 Total 262 409 671 21 Expenditures Donor and Programl Project Grant Period Grant Prior Current (MMIDDPIY) Pledged Years Year Total Colombia FENALCE (Federacion de cultivadores de Cereales y Leguminosas) Seleccion de hibridos 09116103 - 11129109 577 a 193 116 309 Obtencion de hibridos y variedades mejoradas de maiz para las condiciones tropicales de Columbia 03/29/05 - 03/28/08 157 b 46 42 88 Obtencion de hibridos y variedades mejoradas de maiz para - llanos orientales de ColumbialGeneracion de Germoplasma Tolerante a Suelos Acidos que se desarroUan en los llanos orientales10101105 - MD01O7 85 c 9 50. 59 Total 819 248 208 456 Denmark Secondment of Danish Scientist 01/01/03 -04130106 180 153 23 176 Pilot program on increasing the availabilii of quality fodder for 6dai prod uction in Bangladesh 09101105 - 12131106 344 ao 68 224 292 524 221 247 468 EC ECAMAW II 04101105 - 11130106 306 g 86 175 26 I Open source simple computer for agriculture in rural areas 12112103 -06111106 52 aj 31 7 38 . KASSA project 01/01/04 42/26/0.6. 3.39 6il --a-_k - 12-9~ -- l.g8- o-.3.36.-3-7 Total FA0 Using markets to promote the sustainable utilization of crop genetic resources 11/01/05 -06130107 90 41 41 PreDaration of two case studies on sustainable !ic!!!!!!!?l !!?if!!! _ :.. ......... ................l !o!ro!..-!2n!m.- .- .. 3...1.... ... 23 --.. ....- 23 .. . 121 23 41 64 Germany BASF Production and Wider On-Farm Testing 11123104 - 11/22/07 226 41 42 83 Federal Ministry of Economic Cooperation and Development Developing and disseminating stress tolerant maize for sustainable food security in Eastem and Central Africa. 01/01/02 -08131105 1,280 1,258 22 1,280 Improving the value of maize as livestock feed to enhance the livelihoods of maizdiestock farmers in East Africa 03/01/05 - 02128108 548 f 90 143 233 Facilitating the widespread adoption of conservation agriculture in maize Ollollw -09130107 1,488 i 709 506 1,215 Assessment of impacts of CIMMYT research projects in the Central Valleys of Oaxaca and testing of an approach for cost effective impact assessment field research and training 01109106 -03131107 38 n 27 27 Mapping the way forward with conservation agriculture in Mozambique -taking stock and making an action plan 11/01/06 -03131107 4 8 0 27 27 Uzbekistan Project (through ZEF) 01101m4 - 12~1106 3.4.64-6 sa--l --.-. 53 r311- ...2;8-46-46 - Kiil 2,170 lAEA(lnternationalA tomic Energy Agency) Use of carbon and nitrogen isotopes to improve water and nitrogen use efficiency 11120103 - 11119106 30 25 25 India Indian Council of Agricultural Research India Rice Wheat Consortium 01101/06 - 12/31/06 200 144 144 India Global Rust Initiative o1/01106 - 12/3irn6 I00 102 102 t o ~ lIn dia q...u....a....l ity protein maiz.....e..... ................ ......................... 011....0.....1....1....0.....6.... - 1-2 _/ 31/06 .................2. 00 48 .4....8. 50.0 ~ g 4 294- 22 ~ Expenditures Donor and Programl Project Grant Period Grant Prior Current (MWDDNY) Pledged Years Year Total International Fund For Agricultural Development Developing and Disseminating Stress-Tolerant Maize for Sustainable Food Security in East, West and Central Africa - Phase II 05/10/05 - 06130108 1,300 382 456 838 Rising demand of maize and intensification of Asian upland farming systems 11/01/00 - 06130105 750 726 24 750 Multi-stakeholder omramme to accelerate technolow adootion .I. I to improve rural'li&ihoods in rainfed g-ang-etic plains 09101103 -09130!6 500 294 198 492 Total 2,550 1,402 678 2,080 InterAmerican Development Bank Caracterizacion y desarrollo de germoplasma de trig0 adaptado a Siembra Directa 01126105 -01125107 10 10 I O Iran ,I slamic Republic of High-yielding varieties resistant to cereal diseases . 01101106 - 12/31/06 155 45 45 Wheat improvement training 01101106 - 12131106 15 --.- -_.---- 15 15 Total 170 60 60 blY ENEA Durum wheat drought stress 01101105 - 12/31/05 12 6 6 12 Societa Produttori S.pA. Durum Wheat GeneslQTLs 09101105 - 08131107 I20 11 31 42 Japan Economic Cooperation Bureau, Ministry of Foreign Affairs G6: Increasing wheat productivity and sustainability in stressed environments 01101106 - 12/31/06 200 130 130 Maize Genetic Resources: Germplasm Bank 01101106 - 12/31/06 250 184 184 Maize Genetic Resources: Gerrnplasrn Bank Enhancement 01/01/06 - 12/31/06 200 138 138 Breeding and genetic studies on wheat development with FHB resistance 06/01/04 -05131109 2,870 839 847 1,686 Research Su~por-t Masahiro Kishii 11101104 - 10131105 45 23 22 45 Total 3,565 862 1,321 2,183 Nippon Foundation Increasing the availability of quality protein maize (QPM) 01101197 - 12131106 4,327 3,716 417 4,133 Impact assessment SSAlSG in Ethiopia a....n d Ugand..a . .. ..... ..... .. ... 03101106 - 02128107 ...2 98 . . .. .. .2,67807 270 Total 4,625 3,716 4,403 Kazaksthan, Republic of Kazakhstan consultant 04120105 - 12131108 96 15 18 33 Korea Visiting Scientists, other activities 01/01/06 - 12131106 110 87 87 Mexico CONABIO (Comision Nacional para el Conocimiento y Us0 de la Biodiversidad) Evaluacion de la Resistencia a Sequia en Razas Criollas Mexicanas de T@o y determinacion de relaciones entre la respuesta de sequia y el lugar de colecta mediante las herramientas de GIS i i/ i5m5 - 10/14m6 26 I 1 CONACYT (Consejo Nacional de Ciencia y Tecnologia) Desarrollo de germoplasma avanzado de Trigo para la seleccion de variedades, con alta produccion, resistencia a enfermedades, con calidad industrial, con alta eficiencia en el us0 de insumos bajo sistemas de labranza minima, riego optimo y riego reducido 05/01/05 - 04130107 364 x 94 155 249 Tecnologias integrales para reducir las perdidas en 23 Expenditures Donor and Prograd Project Grant Period Grant Prior Current (MMIDDMY) Pledged Years Year Total CONACYT (Consejo Nacional de Ciencia y Tecnologia) post-cosechad e maiz en el Estado de Mexico 111115 - 1111108 170 y 1 21 22 Mejoramiento de la tolerancia a sequia del maiz por medio de fisiologia molecular, bioquimica y genetica 0110116 - 12131108 201 z 57 57 Meioramiento Dara la calidad de semilla de maiz durante el almacenamiento 011116 - I213116 9 aa 8 8 Total 744 95 241 336 SAGARPA (Seeretiria de Agricultural Ganaderia, Desarrollo Rural y Pesca) Yellow Maize project for Mexico 09101105 - 1213116 62 7 54 61 Generacion de un sistema de analisis de calidad de trigo en las principales zonas productoras y de informacion de la calidad _-d e la cosecha mexicana. . ..... 011011.0....6.... ..-... ..1....1....1....3....0.. 17 I----. 195 I 103 103. I - Total 257 7 157 164 Fundacion Guanajuato Produce, A.C. Proyecto Triticale 07/01/04 - 06130107 42 r 20 17 37 Proyecto de Trig0 071114 - 0613017 42 s 14 23 37 T o ~ l Proye..c.....t...o...... ..d......e..... . Cebada ............................. ........................ 0 ............. ...7.....1.....1.....1....4..... .-... ..... 0613017 ........ ......................... .- ..... 42 .t . 27 6 .. ~1 I ..................... 33 .. ~~ a6 137- Fundacion Sonora Desarrollo de variedades de triticale 01I 1I 4- 05/311 07 145 ab 67 24 91 Diagnosticos de Nitrogen0 con Sensores 1111/04 - 111116 37 ac 30 30 technolo.g y transfer ................................. .. 07101106 - 0.6 13017 ..........2....3... ....a... u 14 14 I Total 205 97 38 135 ICAMEX Desamllo de promociones de lineas de triticale 071114 -06130107 93 u 59 21 80 Optimizacion del manejo de N en agricultura de conservacion 06/01/05 - 06BOD8 56 v 6 17 23 Generacion y evaluacion de nuevas variedades de haba y garbanzo resistente a enfermedades adaptadas a las c-_-o--_I.n--..-d.- iciones agmecologicas del Estado de Mexico ...... ... 0713015 - 06130107 --- 2.8... w 26 26 Total 177 65 64 129 lnstituto Nacional de lnvestigaciones Forestales, Agricolas y Pecuarias Generacibn de variedades de trigo tolerantes a enfermedades, eficientes en el us0 del agua, con alta calidad y alto rendimiento en Mexico 01101106 - 12131108 135 aw 37 37 Miscellaneous Research Grants 425 376 376 Netherlands EnvironmentalA ssessment Agency Case study on Biodiversity - Human Wellbeing linkages at the farm and regional level in the Maize and Bean farming system in Chiapas, Mexico 07101105 - 01131106 21 12 9 21 T S l 2 3 1 2 3-9- OPEC Fund for International Development Stress Tolerant Quality Protein Maize (QPM) ' for Sub-Saharan Africa 071115 - 0613016 150 86 64 150 Other (Private-Sector Consortium) Apomixis Consortium (Phase I) 04/01/99 - 03131104 3,000 2,883 39 2,922 ~o-~Al -p-o.m_i.x_is. C. .o n"s ortium _( Phase II) 01111O5 - 1213119 3.,.0...0....0. _ _1.. .0 9 "- _ 227 336 6,000 2,992 266 3,258 Peru Maize improvement 24 Expenditures Donor and Program/ Project Grant Period Grant Prior Current (MMIDDNY) Pledged Years Year Total Rockefeller Foundation Collaboration with the Kenya Agricultural Resesarch lnsititute on development of insect-resistant maize for Africa 01101105 - 12131107 220 83 71 154 New Seed Initiative for Maize in Southern Africa 01101105 - 12131107 1,183 370 415 785 Soil Fertility Consortium for Southern Africa, which promotes collaborative research and development on integrated soil fertility management for smallscale farmers in SA 08101105 - 07131108 899 72 347 41 9 Developing and disseminating herbicide-resistant maize seed coated with specific herbicides that inhibit the growth of the parasitic weed Striga oimim6 - 12131107 645 318 318 Enhance the nutritional quality of African Maize by improving its lysine content through genetic improvements 01mim6 - 12131108 328 86 86 Study to determine how gene flow, including the flow of transgenes, affects traditional landraces, in order to elucidate the impact of gene flow on the livelihoods of smalkcale farmers in Mexico02I1103 - 10131106 300 257 43 300 Research and PhD training in maize breeding, with emphasis on tolerance to drought and low soil nitrogen oimimi -04130106 199 199 199 Strengthening the participationo f East Africa national agricultural systems in a panAfrican program to develop stress tolerant maize varieties 08101102 -01131106 480 480 480 limit the impact of a new African strain of stem rust disease ........... on whea_t .p ro"d uc...t. io._n ~ _ ........... _ 06101105 -0..5 131106 .8. 0_ 80 ....... 80 Total 4,334 1,541 1,280 2,821 Sehgal Foundation Maize Improvement by CIMMYT India 50 50 South Africa National Depannent of Agriculture Maize diseases 01101106 - 12131106 35 35 35 Wheat bree..d...i.n...g... ........................................... ...............................o..i.m....1...1..0...6... .-.. .1...2...1...3...1...~....6... ............... 375o ..............2...5.. .............. 25 60 Spain Agrovegetal, S.A. Durum and wheat bread investigation 09/22/98 - 09121108 1,022 ad 780 79 859 Ministerio de Agricultura, Pesca y Alimentacion Saraguro project oimi1o6 - 12131~6 60 57 57 Durum wheat research project 01101106 - 12131106 270 276 276 Recursos Geneticos de Trigo para la sostenibilidad de 10s sistemas de produccion del mno sur 01101105 - 12131107 210 - 25 Total 540 25 Sweden Student thesis support 62 11 73 Switzerland Swiss Agency for Development and Cooperation Increasing productivity and sustainability of maize-based cropping systems in the hills of Nepal Phase II 01101103 - 12131107 2,736 1,471 436 1,907 to^ ,-T he New Seed Init.i.a...t.i.v...e... f.o...r. ..M....a...iz...e.. .i..n.. .S...o...u...t.h...e..r..n... A...f.r..i.c..a... .(..N...S...I.M....A....). ....... 01101....1...0....5... ...-... ..1....2....1...3....1...1....0....7... ................. ~1,~46079 k'. .-........... .. ...1 .4958 0,. ..... ...... 482528 .. ._ 902 I u 0 9 - ' Syngenta Foundation For Sustainable Agriculture Insect Resistant Maize for Africa (IRMA II) 01101104- 12131108 2,731 e 1,302 395 1,697 25 Expenditures Donor and Programl Project Grant Period Grant Prior Current (MMIDDNY) Pledged YMrS Year Total The Global Crop Diversity Trust Global crop conservation strategy for maize 02101106 - 08131106 65 65 65 Local organization, on behalf of the Trust, of a planning meeting on To~I. ....t.h...e... ..d...e...v..e...l.o...p...m.....e...n...t. .o...f. ..t.h...e... .g...l.o.. bal co..n...s..e...r.v...a..t..i.o..n... .s..t.r..a..t. egy for w.h...e...a...t. .......0...5.../..2.. 5/06 - 091301....0....6..... ........................ 27 .................... 2g.72 """".-. ......... 27 "$2 """" 92 Turkey, Republic of Turkey's CXG contribution 01101106 - 12131106 280 165 165 United Kingdom Department for International Development Increasingf ood security and improving livelihoods through the promotion 11101102 -01131106 39 h 28 28 Stress tolerant maize and best-bet soil fertility technologies 08101M - 07131107 612 j 299 202 50 1 Participatory research to increase the productivity and sustainability of wheat copping systems in the eastem ' subcontinent of South Asia 04101102 - 07131106 1,207 af 1,096 111 1,207 Assessing the imDact and facilitatin-g the u.ptake of RCT's 10101102 - 03131B6 299 ah 217 81 298 Nepal research wordinator-PSP 04101101 - 03/31/05 314 297 37 334 Striga control (through ICIPE) 10101102 - 01/31/06 134 d _____1 I- .I- -----.- ._2 7 -4492,518 14-5~ "- - 1 1 1 - T&l 2,605- 2,064 USA Bill and Melinda Gates Foundation Drought tolerant maize for Africa - Phase 1 ' 12101106 - 11130107 5,800 191 191 Cornel1 University Rice-wheat project, Nepal 194 68 262 Pioneer Hi-Bred International Nitrogen use efficicency, drought tolerance, stnga tolerance . and QPM, biofortification of white maize 05115 /06 - 0511 511 1 150 63 63 United States Agency for International Development Rapid response maize seed production to enhance food security in drought-prone areas of Ethiopia 10101103 -om1106 492 342 150 492 Pioneer breeding collaboration 10101106 -09130107 100 11 11 Improving the drought tolerance of maize and sorghum through comparative genomics, germplasm analysis and marker-assisted breeding 03101104 - 0 9 ~ 0 ~ 1 6 306 141 147 2aa USAID Linkage funds 011O11O4 - 12BlKI6 924 350 319 669 Economic impact studies 01101103 - 12131104 200 139 139 Food security in 6angladesh:lmproving wheat,maize and papaya production, and impacts of arsenic contamination 07101102 - 06130107 5,195 4,521 514 5,035 India USAID support to the RWC 10 1011 03 - 09130107 1,500 1,074 426 1,500 ACTED-RAMP project Afghanistan 12121103 -06130106 270 24 8 32 Stem Rust initiative 01101105 - 12131106 100 54 46 100 ... 1-1. ....T....h...e.... .g....l obal r.u.....s t initiat..i.v....e... ..G.....R.....I. ............................. ............... 10101106 - 09130107 ._.. ..... 1,064 _....... .. 26"4. _ 2.6_4 Total 10,151 6,645 1,885 8,530 United States Department of Agriculture Regeneration of maize landrace collections in Central and South America 06101101 - 0513116 345 353 (6) 347 ICARDAlClMMYT FHB Barley Enhancement 04n2105 - 04121107 41 21 14 35 Wheat durable leaf rust resistance in the Southern Cone countries 01101101 -0913015 223 206 2 208 Characterizationa nd development of wheat germplasm adapted for zero tillage 09101102 - 09130106 60 27 3 30 Karnal Bunt cooperative research 07118103 - 07131108 330 157 73 230 26 Expenditures Donor and Programl Project Grant Period Grant Prior Current (MMIDDMY) Pledged Years Year Total United States Department of Agriculture Crop canopy sensors for efficient nitrogen management in the IndoGangetic Plains 11101104- 10131106 49 61 (11) 50 Novel sources of FHB Resistance in bread and durum wheat 04122105 - 04/21/06 80 34 25 59 Evaluation of United States Wheat Germplasm to Stem Rust in Eastern Africa 05127105 - 05/27/10 257 71 134 205 _.B..- .o. .. rlaug.- EthiopialWheat S-t em Rust - 0"9 12"2. ...1." 0. ...5... ..-... ..0. .9 ..1. ..3...0" . .1...0.. 6.. ........................3...4.. ..........................2... ........................(.2... ) Total 1,419 932 232 1,164 Washington State University lntematiinal Cooperation for Agricultural Research in Central Asia and the Caucasus 07101103 - 09/14/09 740 563 139 702 World Bank Global Public Goods - Genebank Upgrading 01101103 - 12/31106 1,137 1,059 78 1,137 .... Rice Whe.. at Cons.o....r..t ium 2006 .. . .0 1.1. .0. .1.. 1.. 06... - ..1.....2.....~ 1106 250 ........................ 2_2.2 . 222 Total 1,387 1,059 300 1,359 TOTAL RESTRICTED GRANTS 86,198 40,357 19,294 59,651 Equivalent in Original Cunency: AUD- Australian Dollar a COP 1,460,000,000 aa MXN 100,000 CAD -Canadian Dollar b COP 450,000,000 ab MXN 1,352,530 CHF -Swiss Franc COP - c COP 198,000,000 ac MXN 411,456 Colombian Peso d GBP 76,610 ad EUR 900,000 DKK -Danish Krone e CHF 3,250,000 ae AUD 042,154 EUR -Euro f EUR 424,9 11 af GBP 756,000 GBP - British Pound g EUR 26 1,241 ag AUD 1,800,000 MXN -Mexican Peso h GBP 22,180 ah GBP 171,000 i EUR 1,200,000 ai AUD 150,000 j .GBP 339,000 ai EUR 42,069 k CHF 1,620,000 ak EUR 29,000 I MXN 1,739,335 al EUR 53,380 m EUR 10,000 am AUD 45,000 n EUR 28,500 an AUD 1,000,050 o EUR 36,000 ao DKK 2,061,576 p AUD 1,093,945 aP AUD 45,000 q AUD 450,000 aq AUD 1,500,000 r MXN 450,000 ar AUD 300,000 s MXN 450,000 as AUD 450,000 t MXN 450,000 at AUD 389,048 u MXN 1,000,000 au MXN 250,000 v MXN 600,000 av AUD 136,750 w MXN 300,000 aw MXN 1,490,000 x MXN 4,000,000 ax AUD 847,048 y MXN 1,800,000 z MXN 2,125,000 27 Centro lnternacionald e Mejoramiento de Maiz y Trigo, International and Exhibit 3 Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Combined Schedule of Fixed Assets For the year ended December 31,2006 (Thousands of U.S. Dollars) Balance 2006 Balance January 1 Additions Transfers Disposals December 31 I. cost A. Land and buildings Land 10,371 10,371 Buildings 4,336 5 4,341 ~~ ~~ Subtotal 14,707 5 14,712 B. Furnishings and equipment Farming 5,385 379 (1) Laboratory and scientifE equipment 3,619 106 (2) Office 923 3 Auxiliary units 123 1 Computers 3,567 227 Vehicles . 4,427 103 2 Maintenance equipment 84 Software 539 208 (1) Fixed assets in transit I in process 37 21 (7) _ _ _ ~ Subtotal 18,704 1,044 (5) (10,672) 9,071 Total cost 33,411 1,044 (10 ,672) 23,783 II. Accumulated depreciation A. Buildings 1,591 108 (5) 1,694 B. Furnishings and equipment Farming 5,059 168 Laboratory and scientific equipment 3,383 65 Oftice 782 42 Auxiliary units 91 4 Computers 3,114 238 Vehicles 3,885 299 Maintenance equipment ' 82 1 Software 472 64 ~ Total accumulated depreciation 18,459 989 (10,656) 8,792 _ _ _ ~ Ill. Net book value A. Land and buildings 13,116 10 13,018 B. Furnishings and equipment Farming 326 538 Laboratory and scientific equipment 236 265 Office 141 93 Auxiliary units 32 33 Computers 453 437 Vehicles 542 345 Maintenance equipment 2 1 soflware 67 210 Fixed assets in transit I in process 37 51 Total net book value 14,952 55 (1 6) 14,991 28 Centro lntemacional de Mejoramiento de Maiz y Trigo, International and Exhibit 4 Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Schedule of Indirect Costs For the years ended December 31,2006 and 2005 (Thousands of U.S. Dollars) 2006 2005 Indirect Costs Management and general expenses 6,019 6,498 Other losses and expenses 1,039 354 Subtotal Indirect Costs 7,058 6,852 Direct Costs Research 23,450 26,513 Research support 5,052 4,509 Subtotal Direct Costs 28,502 31,022 Total Operating Costs 35,560 37,874 Indirect Costs Unrestricted Funding 4,710 3,253 Restricted Funding 2,348 3,599 Total Recovery 7,058 6,852 Cost Ratios Indirect CosUTotal Operating Costs 19.85% 18.09% Indirect CostlD irect Costs 2476% 22.09% 29 Centro lnternacional de Mejoramiento de Maiz y Trigo, International and Exhibit 5 Centro lnternacional de Mejoramiento de Maiz y Trigo, A. C. Schedule of Generation Challenge Program For the years ended December 31 , 2006 and 2005 (Thousands of U.S. Dollars) Grant Revenue 2006 2005 Funds Accounts Advance Donors received receivable payment Grant Grant Austria $ - $ $ - $ $ 45 European Community 5,674 5,674 6,027 -K--i rkhouse ..... -- ... ---- 15 Pioneer 20 14 19 40 --_..-- .-... ................................ - .... Rockefeller Foundation ......................... 1,044 .................................... - . ....... 1,0..4..4.. .........................8..3..8.. . ............................................................................ 370 . 370 .................................................................. -Syngenta Foundation 9 Sweden 97 -29 154 --. 104 -.United King-do-m -4 ,731 - 4,167 4,771 4,697 World Bank 2,000 1,256 2,259 1,363 3,778 Total $ 13,936 $ 1,256 $ 6,839 $ 13,025 S 15,553 Pledges and Expenses As of December 31,2006 EXPENDITURES Grant Period Grant Prior Current (MMIDDRY) Pledged Years Year Total Austria 07/O1/03-12/31104 $ 54 a $ 5 4 $ 5 4 European Community 07mim3-1m i 106 16,925 b 11,251 5,674 16,925 K-- irkhouse . . . . 07130105-1 21241....0.....5. 15 15 . . . . . . . 15 ............... 071011 04-1 2131 107 ....... 70 57 . 19 -7 6 ..Rockefeller Foundation 0~10i105axom8 2,293 838 ....1...,0...4..4.. .........................1..,.8...8..2.. S....y...n....g...e...n....t.a... .F....o...u....n...d. ation 071011...0....4...-..1....2....1....3....i.1....0....5.... ....................... 15 .........................1...5... ..........................................................................................1...5. Switzerland ii130106-1mi107 695 e W d e n 07101103-12131106 394 c 211 154 .-- -3-6 5 -Un-it ed Kingdom . 07/011 0446130107__ ---_._--.- 13,823 d 4,885 4,771 9,656 World Bank 07/01 103-1 2/31/06 9,756 6,134 1,363 7,497 Total Challenge Program $ 4 0 4 0 $ 23,460 $ 13,025 $ 36,485 Notes: a Equivalent to EURO 45,000 Currency definitions b Equivalent to EURO 13,450,000 c Equivalent to SEK 2,873,000 SEK - Swedish Krona d Equivalent to GBP 7,500,000 GBP - British Pound e Equivalent to CHF 850,000 CHF - Swiss Franc 30