Financial Report 2010 International Livestock Research Institute International Livestock Research Institute PO Box 30709 Nairobi 00100 Kenya www.ilri.org Financial Report 2010 International Livestock Research Insitute 1 Financial Report 2010 For the Year ended 31 December 2010 international livestock Research institute Financial REPORT 2010 ilRi works with partners worldwide to help poor people keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, and find profitable markets for their animal products. ilRi’s headquarters are in nairobi, Kenya; we have a principal campus in addis ababa, Ethiopia, and 14 offices in other regions of africa and asia. ilRi is part of the consultative Group on international agricultural Research (www.cgiar.org), which works to reduce hunger, poverty and environmental degradation in developing countries by generating and sharing relevant agricultural knowledge, technologies and policies. © 2011 international livestock Research institute (ilRi) This publication is copyrighted by the international livestock Research institute (ilRi). it is licensed for use under the creative commons attribution- noncommercial-Share alike 3.0 Unported license. To view this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/. Unless otherwise noted, you are free to copy, duplicate, or reproduce, and distribute, display, or transmit any part of this publication or portions thereof without permission, and to make translations, adaptations, or other derivative works under the following conditions: aTTRiBUTiOn. The work must be attributed, but not in any way that suggests endorsement by ilRi or the author(s). nOn-cOMMERcial. This work may not be used for commercial purposes. SHaRE aliKE. if this work is altered, transformed, or built upon, the resulting work must be distributed only under the same or similar license to this one. nOTicE: For any reuse or distribution, the license terms of this work must be made clear to others. any of the above conditions can be waived if permission is obtained from the copyright holder. nothing in this license impairs or restricts the author’s moral rights. Fair dealing and other rights are in no way affected by the above. The parts used must not misrepresent the meaning of the publication. ilRi would appreciate being sent a copy of any materials in which text, photos etc. have been used. Editing, design and layout—ilRi Editorial and Publishing Services, addis ababa, Ethiopia. citation: ilRi. 2011. ILRI Financial Report 2010. nairobi, Kenya: international livestock Research institute. iSBn 92–9146–263–2 Text by carlos Seré, Bruce Scott, Joan Sawe, Judy ngugi, and Finance Department teams in nairobi and addis ababa. Design by apollo Habtamu. images by apollo Habtamu, Steve Mann Proofread by Tesfaye Jemaneh. Front cover: Kemeria Hussein selling milk in village market at Mieso, Ethiopia. Page 4: cattle coming in from the fields in the evening in lhate village, chokwe, Mozambique. Page 16: camels walk by railway in awash Ethiopia. international livestock Research institute P O Box 30709, nairobi 00100, Kenya P O Box 5689, addis ababa, Ethiopia Phone + 254 20 422 3000 Phone + 251 11 617 2000 Email ilRi-Kenya@cgiar.org Email ilRi-Ethiopia@cgiar.org www.ilri.org inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE contents corporate information 5 Board of Trustees 6 Senior Management Team 13 Statement of Purpose 17 corporate Governance 19 Financial Statements Five Year Financial Review 21 Statement by the chairman of the Board of Trustees 23 ilRi Board Statement on Risk Management 24 Statement of Management’s Responsibilities 25 independent auditors’ Report 26 consolidated Statement of activities 27 consolidated Statement of Financial Position 28 consolidated Statement of changes in net assets 29 notes to the consolidated Financial Statements 30 Exhibits Schedule of Unrestricted Grant Revenue, EXHiBiT i 53 Schedule of Project and Program Restricted Grant Revenue, EXHiBiT ii 54 Statement of Direct and indirect cost Rates, EXHiBiT iii 74 Schedule of Furnishings and Equipment, EXHiBiT iV 75 Financial REPORT 2010 4 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE corporate information 5 Board of Trustees Prof Knut Hove norway chair Dr carlos Seré Uruguay Ex-officio (Director General) Dr Romano Kiome Kenya Host country Representative Dr aberra Deressa Ethiopia Host country Representative (term ended november 2010) Prof nieves confesor Philippines appointed March 2008 Dr James Dargie United Kingdom appointed august 2005 Ms Emmy Simmons United States of america appointed October 2005 Dr Modibo Traore Mali appointed October 2005 Prof Samir K Barua india appointed March 2007 Dr Dieter Schillinger Germany appointed november 2009 Dr lindiwe Sibanda Zimbabwe appointed november 2009 Dr Khatija Yusoff Malaysia appointed november 2010 Dr lorne Babiuk canada appointed november 2010 Senior leadership Team carlos Seré Uruguay Director General John McDermott canada Deputy Director General Gabrielle Persley australia Senior advisor to the Director General Bruce Scott canada Director, Partnerships and communications Joan Sawe Kenya Director, Finance and Operations Margaret Macdonald-levy United Kingdom Director, Human Resources Steve Staal United States of america Director, improving Market Opportunities Theme Shirley Tarawali United Kingdom Director, People, livestock and the Environment Theme Segenet Kelemu Ethiopia Director, Beca–ilRi Hub Vish nene United Kingdom Director, Biotechnology Theme advocates auditors iseme Kamau & Maema advocates Deloitte & Touche iKM Place, Tower a, 5th Floor certified Public accountants (Kenya) 5th ngong avenue, Off Bishops Road ”Kirungii” Ring Road Westlands PO Box 11866–00400 PO Box 40092–00100 nairobi, Kenya nairobi, Kenya Headquarters international livestock Research institute Off naivasha Road PO Box 30709–00100 Telephone: 254–20–4223000 nairobi, Kenya http://www.ilri.org Financial REPORT 2010 6 Board of Trustees Knut Hove is Vice chancellor of the agricultural University of norway. He has a PhD in veterinary medicine. He has served as chairman of the norwegian Research committee for research in plants, soils and farm animals and Deputy chairman of the national council on animal Ethics, Ministry of agriculture. He has been a member of ilRi’s Board of Trustees since 2005 and was appointed chairman of the Board in november 2009. Knut Hove, Norway, Chair Norwegian University of Life Sciences James Dargie is a British citizen. He recently retired from FaO where he worked from 1978, rising through the ranks to become Head of the animal Production and Health Section, then Director of the Joint FaO/iaEa Programme of nuclear Techniques in Food and agriculture. He has a PhD from the Faculty of Veterinary Medicine, University of Glasgow, and has served as a scientific advisor/reviewer for iFS, Medical Research council (UK), Wellcome Trust UK, Edna Mcconnel clark Foundation (USa), and the cGiaR (ilRaD Scientific Review Team Member). He is a member of the Publications committee, iaEa, Occasional Member, committee for contractual Scientific Services, iaEa. in 1985 he James Dargie, UK, Trustee was a recipient of the iaEa Director General’s Retired Director, Joint FAO/IAEA Programme of Nuclear Distinguished award. Techniques in Food and Agriculture inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE BOaRD OF TRUSTEES7 Romano Kiome was appointed the host country representative to the ilRi Board by the Kenya Government in 2004. Born in 1956 on the Eastern Slopes of Mt Kenya, he was educated in Kenya up to the first degree. He obtained a master’s degree in soil and water management at the University of Wageningen, in the netherlands, in 1985, followed by a PhD from the University of East anglia, in the UK, in 1992. His main research work is in computerised modeling of crop production for decision making in soil and water management regimes and prediction of sustainable land use systems. He has 48 publications as journal articles, book chapters, conference papers and reports. Dr Kiome has been a member/or chair of twelve technical advisory committees at national, regional and international levels. He was recently Romano M Kiome, Kenya, Trustee Permanent Secretary, Ministry of Agriculture appointed Permanent Secretary in the Ministry of agriculture. apart from ilRi, he is also a Board member of three other cGiaR centres. aberra Deressa is an Ethiopian with a PhD areas of research include seed multiplication in agronomy and soil science from Tashkent in maize-, bean- and sorghum-based farming agricultural University in Uzbekistan. He began systems and interventions to address problems his scientific career in 1974 at Ethiopia’s institute of soil infertility, drought and natural resource of agricultural Research, working first as an degradation. Throughout his career, he has agronomist, then as coordinator of research focused on improving links among farmers, extension and finally centre manager. His extension agents and agricultural researchers. in 1993, aberra was appointed Deputy Director General of the Ethiopian agricultural Research Organization (EaRO), where he served until his recent appointment as State Minister in Ethiopia’s Ministry of agriculture and Rural Development. He brings a wealth of experience to ilRi’s Board, having served on several other boards and national committees and having worked as a researcher, research and research centre manager, and long-time country coordinator with both the United nations Development Program and the netherlands-based international center for Development-Oriented Research in agriculture. His Board term ended in november 2010 with the appointment of a new Ethiopian Government. Aberra Deressa, Ethiopia, Trustee State Minister, Ministry of Agriculture Financial REPORT 2010 8BOaRD OF TRUSTEES nieves R confesor is a member of the faculty of the asian institute of Management, and is presently core faculty at its center for Development Management and the Executive Education and lifelong learning center. During her term as institute Dean, the institute successfully received its accreditation from the aacSB and the European Foundation for Management Development‘s EQUiS as a graduate school of management. confesor serves as independent director and/or trustee of various companies and non-government organizations. She chairs the Government Peace Panel negotiating with the communist Party of the Philippines/national Democratic Front/ Nieves R Confesor, Philippines, Trustee new People’s army and is active in other work Faculty Member, Asian Institute of Management of the national peace process. Her areas of specialization include: public policy development holds a Master’s degree in Public Policy and and analysis; public administration; social administration from Harvard University (1990) protection strategy; women in development; and a Master’s degree in Business administration labour–management relations; human resources from the Graduate School of Business of the development and management; leadership and ateneo de Manila University. management of change; conflict management/ resolution and strategic negotiations. She Modibo Tiémoko Traore was born in Bamako, Mali. He has a PhD in veterinary medicine and sciences from the University of Paris Xii. He was recently appointed as assistant Director-General/ FaO Regional Representative for africa. Dr Traore is the immediate former director of the africa Union’s interafrican Bureau for animal Resources (aU/iBaR), nairobi. From 2000–2004 he was Mali’s ambassador to the People’s Republic of china, the Democratic People’s Republic of Korea, the Democratic People’s Republic of laos, the Socialist Republic of Vietnam and the Kingdom of cambodia. From 1997 to 2000 he was Mali’s Minister for Rural Development and Water, with responsibilities for formulating and implementing national policy for agricultural research (zootechnical, veterinary, agronomic, Modibo Tiémoko Traore, Mali, Trustee forestry and fishing) and animal, agricultural and Assistant Director General, Food and Agriculture Organization fisheries production. of the United Nations (FAO) inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE BOaRD OF TRUSTEES9 Emmy Simmons is an american citizen. She recently retired from the US agency for international Development (USaiD), where she worked from 1977, rising through the ranks to become the assistant administrator from 2002–2005. She has an MSc in agricultural economics from cornell University, and a Ba in international relations from the University of Wisconsin-Milwaukee. a committed international development specialist, with emphasis on strategic planning and management for economic growth and change, she is a leader in assessing constraints and opportunities, implementing organizational change and building coalitions. Emmy Simmons, USA, Trustee Retired United States Agency for International Development (USAID) Official management, and management information and control systems. He has been a visiting professor to academic institutions in the USa, the netherlands and Singapore. He has authored over 180 papers/articles in national and international academic and business journals/publications and conferences. He has co-authored two books. He has been intimately associated with the indian financial sector for over a decade and a half, preparing policy papers for the Ministry of Finance, Government of india and the Reserve Bank of india on restructuring of capital markets and the banking sector, respectively. He was also member of the committee set up by the Federation of indian chamber of commerce and Samir K Barua, India, Trustee Professor and Director, Indian Institute of Management industries to prepare a Report on Reforms of Stock Exchanges. currently, he is a member of the Samir Barua is Director of the indian institute Board of indian Oil corporation (iOc), the only of Management, ahmedabad. His academic indian Fortune-500 company. and professional pursuits cut across several disciplines; specific areas of interest include capital markets, portfolio theory, international finance, operations research and decision sciences, applied statistics, operations Financial REPORT 2010 10BOaRD OF TRUSTEES Khatijah Yusoff was appointed Deputy Vice chancellor (academic and international affairs) of Universiti Putra Malaysia (UPM) in March 2007, with responsibilities to promote quality in the development and management of academic policies and programmes, quality assurance in teaching and learning at undergraduate and postgraduate levels, and international affairs. Professor Yusoff is also the Deputy Secretary General (Science) at Malaysia’s Ministry of Science, Technology and innovation. She is a graduate of la Trobe University, australia [BSc (Hons), PhD in microbiology] and was a post- doctoral Research associate at the University of newcastle-upon-Tyne, UK from 1985 to 1988. She started her academic career as a lecturer Khatijah Yusoff, Trustee at Universiti Putra Malaysia in 1983. She was Deputy Secretary General (Science)Ministry of Science, promoted to associate Professor in 1994 and Technology and Innovation (MOSTI) Malaysia became a full Professor in 2001. She served as the Dean of the Faculty of Biotechnology and Biomolecular Sciences in 2006 until her current appointment. Professor Yusoff was appointed a member of ilRi’s Board of Trustees in april 2010. lindiwe Majele Sibanda has held the position of chief Executive Officer of the Southern african Food, agriculture and natural Resources Policy analysis network since 2004. She is currently coordinating policy research and advocacy programs in 13 southern african countries, all aimed at making southern africa a food-secure region. Her program portfolio includes policy research and advocacy work on food policies, agricultural productivity, natural resources and environment, and the impact of HiV/aiDS on agriculture and food security in southern africa. lindiwe is an animal scientist by training and a practicing commercial beef cattle farmer. although she resides in Pretoria, South africa, she Lindiwe Majele Sibanda, Trustee Chief Executive Officer and Head of Diplomatic Mission, Food, is originally from Zimbabwe. She received her Agriculture and Natural Resources Policy Analysis Network BSc at the University of alexandria, Egypt; her (FANRPAN) MSc and PhD at the University of Reading, UK. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 11 Dr Lorne Babiuk, Trustee Vice-president for research at the University of Alberta, Canada lorne Babiuk, a leader in canadian vaccine Before moving to the University of alberta, research and vice-president for research at the Babiuk built up a research institute—the Vaccine University of alberta, canada, joined the board of and infectious Disease Organization (ViDO), at trustees in november 2010. the University of Saskatchewan—which became as vice-president of research, Babiuk facilitates internationally recognized as a leader in new the University of alberta’s research, builds vaccine development. in 2005, he completed a research consortia and strengthens the university’s US$ 19.4 million expansion of ViDO, and just international research links and collaborations. before leaving ViDO, he assembled the funding Since 2005, Babiuk has also served as principal needed to build a $ 140-million level-three investigator on a grant from the Bill and Melinda bio-containment facility for work on infectious Gates Foundation ‘Grand challenge in Global diseases. Health’ program, in which he and his team are He holds a Master’s degree in soil microbiology, developing vaccines against whooping cough PhD in virology from the University of British (pertussis) in infants and young children, to columbia and a DSc from the University of be delivered in a single dose, without use of Saskatchewan’s Department of Veterinary a needle. children now need five doses of the Microbiology. He has mentored over 90 graduate vaccine to be fully protected and few children. students and postdoctoral fellows and published He has consistently fostered research that over 500 peer-reviewed manuscripts and 100 crosses traditional disciplinary boundaries by, book chapters or reviews. He holds 28 issued for example, supporting collaborations between patents and has 18 patents pending. social scientists and medical, agricultural and engineering researchers. and he helped develop the infrastructure needed by researchers in all fields to be more successful in individual and team grants. Financial REPORT 2010 12 Dieter Schillinger is from Germany but currently resides in lyon, France, where he has served the pharmaceutical company Merial as Head of Public affairs for Europe, Middle East and africa since 2006. He is responsible for government relations and the management of Merial’s activities in the political and public policy arenas. Merial is a world-leader in animal health with a proven track record in producing pharmaceutical products and vaccines for livestock, pets and wildlife. in 1972, Dieter took a degree in mechanical engineering at Germany’s Regensburg University. By 1978 he had earned a doctorate in veterinary medicine from the University of Munich. He rounded out his formal education with an MBa in 1994 from Brunel University/Henley Management college, UK. He has managerial and leadership experience, Dieter Schillinger, Trustee particularly in business management and policy Head of Public Affairs for Europe, Middle East and Africa, setting for veterinary public health, and has Merial SAS had extensive interactions in this area with top business, government and research leaders worldwide. serving as regional director. From 1990 to 1994 he was an independent consultant, reviewing research and development activities such as the dairy sector in Ecuadorean Sierra, farmer development in Uruguay, soil conservation in eastern Paraguay and global livestock production systems for a major study of the Food and agriculture Organization of the United nations. Dr Seré’s expertise is broad, including tropical livestock production systems, foot-and-mouth disease, smallholder dairy farming, tropical pastures and quantification of the costs and benefits of research. He has served the cGiaR as both staff member and reviewer. From 1980 to 1990 he was an economist with the international Carlos Seré, Uruguay, Ex-Officio Director General, International Livestock Research Institute center for Tropical agriculture, in colombia. in 1992 and 1994, respectively, he reviewed the carlos Seré, a citizen of Uruguay, has a doctorate program and management of the international in agricultural economics from the University laboratory for Research on animal Diseases of Hohenheim, Germany. immediately before (ilRaD), one of ilRi’s two predecessors, based joining ilRi, he worked for 7 years for the latin in Kenya, and the international Potato center, in america and caribbean office of the international Peru. He served on the team that developed a Development Research centre (canada), first strategic plan for a new cGiaR global livestock managing a portfolio of agricultural and natural research institution—ilRi—which began resource management projects and, from 1996, operations in January 1995. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE Senior Management Team 13 led by a Deputy Director General, four research directors guide ilRi’s research themes. Together with the Director of Partnerships and communications, Director of Human Resources, Director of Finance and Operations, and the Director General, these people comprise ilRi’s management team. JOHn McDERMOTT (canada) was appointed Deputy Director General of Research in 2003. He had previously worked at ilRi from 1997 as a veterinary epidemiologist. He has broad experience in multidisciplinary livestock research. He has spent 15 years working in developing countries. Many of his former students, most of whom are from developing countries, now hold senior positions in leading universities and caRlOS SERé (Uruguay) Director General research institutes around the world. He has (see biography on previous page) responsibility for planning and coordinating overall research activities within and across ilRi’s four research themes. He holds a PhD in veterinary epidemiology from the University of Guelph, in canada. GaBRiEllE PERSlEY (australia) is Senior advisor to ilRi’s Director General. She has been closely associated with the development of the concept and planning of Biosciences eastern and central JOan SaWE (Kenya) joined ilRi as Director, africa (Beca). She is the Founder and chair of Finance and Operations on 1st May 2009. She the Doyle Foundation, a Scottish-based charity previously worked with actionaid international as whose purpose is to support and advocate the the international Head of Financial Performance role of science in international development. She and Standards and as the african Regional Finance has published extensively on issues associated coordinator in Zimbabwe. She has also acted as with the safe and effective use of modern science country Director for actionaid international in in agriculture and the environment. She was the Uganda. Joan holds a Masters degree in Business biotechnology manager in the World Bank in administration with honours from Tel-aviv Washington, Dc, from 1991–96, during which international School of Management (TiSOM) and time she worked closely with the cGiaR. a Bachelors degree in Business administration with honours from acadia University, nova Scotia, canada. Financial REPORT 2010 14 SHiRlEY TaRaWali (UK) is Director of the People, livestock and the Environment Theme. She previously worked as an agronomist on joint appointment with the international institute of Tropical agriculture (iiTa) and ilRi, where she was based in ibadan, nigeria. She has over 20 years experience, 18 in the cGiaR system, in sub-Saharan africa, especially farming systems in West africa. Her Theme focuses on developing new ways for livestock to help improve and sustain agricultural production in complex farming systems of the poor. She holds a PhD in plant science from the University of london, in the United Kingdom. ViSH nEnE (UK) joined ilRi as the Director of the Biotechnology Theme on 1st april 2009 and was previously with the institute for Genome Sciences, University of Maryland. He has a broad STEVE STaal (USa) is Director of the improving range of research interests that converge on Market Opportunities Theme. He has 16 years developing improved or novel methods of disease of experience in agricultural research and control and in the use of whole genome sequence extension in africa and South asia. Since joining data and genomics technologies to underpin ilRi in 1996, he has conducted research on laboratory research. Vish has more than 20 years smallholder competitiveness, transaction costs experience in molecular parasitology and 8 years and policy in indigenous dairy markets, and in genomics research. He obtained his graduate the spatial evolution and intensification of and PhD degree and post-doctoral training in the smallholder crop–livestock production systems. UK. He has published extensively, participated His Theme is working with partners to identify in several training workshops, presented research and advocate opportunities for the poor to findings at many conferences and mentored high exploit livestock markets. a significant part of school, graduate and post-graduate students. this work is conducted as a Joint Program on livestock Markets with iFPRi. He holds a PhD in agricultural economics from the University of Florida, in the USa. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 15 SEGEnET KElEMU (Ethiopia) Director of the BRUcE ScOTT (canada) joined the institute in Beca–ilRi Hub. She has experienced the 1999 and was appointed Director of Partnerships challenges and successes associated with african and communications in 2003. Before joining agriculture first-hand, from field to high-tech ilRi, he served as deputy director general of the laboratory. Under her leadership since 2007, World agroforestry centre (icRaF), headquartered Beca Hub research capacity, staff, facilities, in nairobi, where he was responsible for funding, partners and training programs have designing and implementing collaborative expanded at an ever accelerating pace. Dr agroforestry research networks involving 14 Kelemu is a molecular plant pathologist with countries in sub-Saharan africa. His expertise is extensive experience in molecular determinants in strategic and corporate planning, international of host–pathogen interactions; development of partnerships and resource mobilization. He holds novel plant disease control strategies including an Ma in international affairs from carleton transgenics, biopesticides; pathogen population University, in canada. genetics and dynamics; and endophytic microbes and their role in plant development. She was awarded a MSc degree in Plant Pathology/ Genetics from Montana State University, USa, and earned her PhD in Molecular Plant Pathology at Kansas State University, USa. MaRGaRET MacDOnalD-lEVY (UK) was appointed Director of Human Resources in May 2010. She has worked with ilRi since 2004 as a communications consultant. She has worked as a program manager with Doyle Foundation and prior to that as a general manager and group human resources manager in hotels in Scotland. Margaret holds a Masters degree in Business administration from the University of Strathclyde Business School and a Bachelors degree from The Queens college Glasgow, Scotland. Financial REPORT 2010 16 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE Statement of Purpose 17 The international livestock Research institute as urbanization increases and incomes grow, (ilRi) works at the crossroads of livestock and smallholders will need to be linked through more poverty, bringing high-quality science and sophisticated value chains to capture greater capacity building to bear on poverty reduction value opportunities. and sustainable development for poor livestock ilRi also tracks dynamic changes in livestock keepers and their communities. livestock are systems to assess future opportunities for the critical to the poor in several ways: as a source poor. Major research areas include identifying of income and employment, as assets to provide and assessing options for adaptation to climate savings in moving out of poverty and to buffer change, mitigating risk from emerging and re- against household emergencies and more general emerging diseases and providing a diversity of shocks, and as a critical tool in sustainably livelihood strategies for livestock keepers in improving productivity in mixed smallholder harsher environments. farming systems. livestock keepers are very important in the locations and staff world. They represent almost 20% of the world population and steward most of the agricultural ilRi’s headquarters are located in nairobi, land in the tropics, particularly in sub-Saharan Kenya with a principal campus in addis ababa, africa and tropical asia. The expanding demand Ethiopia, and 14 offices in other regions of for livestock products in developing countries africa (Mali, Mozambique, nigeria), South asia provide unique opportunities for improving (in india: Dehradun, Guwahati, Hyderabad, livelihoods and linked to that, improving Kohima, new Delhi, Ranchi [soon to open]); stewardship of the environment. ilRi’s role is to Southeast asia (laos, Thailand, Vietnam); and provide research technologies, knowledge and china (Beijing). ilRi employs about 660 staff evidence for sustainable and pro-poor policies from about 35 nationalities. The majority of and investments. our staff are nationally recruited, largely from Kenya and Ethiopia. in 2010 we employed ilRi focuses on key livestock value chains of 100 internationally recruited staff representing importance to the poor. Smallholder dairy systems some 30 scientific and managerial disciplines. are one such system in which the availability Our international staff comprises 57% from of family labour and the ability of ruminants to developing countries and 33% female with an exploit lower quality available roughage allow the increasing number of scientists jointly appointed poor to be competitive. along these value chains, by a partner organization and ilRi. bundling of improved breeding, feeding and animal health services together with financial and marketing services are critical. Smallholders are most competitive in local markets and provide an initial focus for improving the market success for the poor in most developing countries. However, Financial REPORT 2010 18 Governance Funding The Board of Trustees is composed of 13 ilRi is funded by more than 90 private, public outstanding professionals with particular and government organizations of the north and expertise in the field of livestock science, South. Some donors support ilRi with core and agricultural research, development and corporate program funds whereas others finance individual management. The key role of the Board is to research projects. in-kind support from national determine ilRi’s mission, to oversee the adequacy partners, particularly Kenya and Ethiopia as of the institute’s strategy, strategic planning well as that from international collaborators and program review processes, and to provide is substantial and vital. This mix of generic, appropriate input into it. The Board ensures specific and in-kind resources is essential for the that plans and programs are appropriate for partnership research we conduct. carrying out ilRi’s mandate, that they are in line with cGiaR priorities and that they have high Partnerships probability for impact on poverty reduction and sustainable natural resource use. The Board has ilRi’s strategy is based on strong partnerships as the fiduciary responsibility of ilRi’s financial an essential way of operating and ensuring that resources. the outputs of our research lead to development impacts. ilRi is one of the 15 international agricultural research centres supported by the consultative it gives us pleasure to acknowledge the donor Group on international agricultural Research countries and organizations that supported ilRi (cGiaR) which is an association of governments research in 2010 listed in exhibit i through iii. and public-and private-sector institutions working We could not have helped reduce world poverty to reduce poverty, hunger and environmental through animal agriculture research without their degradation in developing countries. The co- intellectual as well as financial support. Many sponsors of the cGiaR are the World Bank, thanks. the United nations Development Programme, Signed on behalf of the Board of Trustees by: the Food and agriculture Organization of the United nations and the international Fund for agricultural Development. carlos Seré Director General 13 april 2011 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE corporate governance 19 The basic principles and rules concerning the the goals of the institute and the goals and organization and operation of the Board of needs of its partner national systems and Trustees of the international livestock Research associated agencies, and how these activities institute (ilRi) are laid down in the institute’s might be improved within the limits of constitution and in the Board’s Rules of available resources Governance. • Formulation of institute’s strategy as proposed The Board comprises four committees: a) Program by ilRi Management or commissioned bodies, committee; b) Finance committee; c) audit and on proposed changes and new research committee; and d) Human Resources committee. opportunities within planning periods guided by that strategy. The Program Committee is responsible for advising the Board on all matters regarding the The Finance Committee is responsible for conception, elaboration, implementation and advising the Board on all matters relating to evaluation of the institute’s programs of research, the institute’s financial status and outlook. training and information. To this end, the Program These matters include: the development and committee advises on: approval of budgets for upcoming periods; the monitoring of incomes and expenditures • Suitability and conformity of the ILRI programs as per approved budgets; oversight of the to the mandate and mission of the institute institute’s financial reporting process; and the • Appropriateness of the institute’s research, identification of potential opportunities, issues training and information programs to the and risks associated with the institute’s finances. accomplishment of the ilRi strategy The committee carries out its work against the • The degree to which the institute’s research, backdrop of the institute’s research strategies, its training and information activities are meeting operating procedures, and policies as approved by the Board of Trustees. Allocation of tasks within the Board of Trustees Program Finance Audit Human Resources Committee Committee Committee Committee Uwe Werblow • Knut Hove • • Chair Aberra Deressa • • Romano Kiome • • James Dargie • Chair • Emmy Simmons • • Chair Modibo Traore • • Samir Barua • • • Chair Nieves Confesor • • Lindiwe Sibanda • • Dieter Shillinger • • Lorne Babiuk • • Khatija Yusoff • • Financial REPORT 2010 20 The Audit Committee is responsible for advising External auditing the Board of Trustees on all matters relating to ilRi’s auditors are appointed by the Board of ilRi’s accounting and financial management Trustees for a period of four years. The current practices, risk analysis and management, internal auditor Deloitte & Touche, were appointed controls and audit results, both external and in 2007. in line with the policy statement internal. The committee recommends to the on engagement and management of external Board whether it should accept the External auditors, auditors are not eligible for appointment audit reports and suggests courses of remedial for consequent terms. auditors may be re- action, if any, which should be implemented to appointed provided that there is a different follow up on audit findings. The committee also engagement partner but not immediately after recommends appointment and undertakes the the completion of the first four year term. The evaluation of external auditors to the Board of Board will appoint new auditors in its april 2011 Trustees. The chair of the audit committee assists meeting. the Director General in the annual evaluation of the internal auditors. The external auditors present and discuss the annual financial audit reports with the audit The Human Resources Committee is responsible committee in the november meeting. for advising the Board on all human resources management issues pertaining to Board members as well as the institute’s staff. Frequency of board meetings The Board of Trustees normally meet twice a year—in april and in november. During the year, the april meeting was held in nairobi and the november meeting in addis ababa. The attendance rate at both meetings was 100%. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 21 Five year financial review 2010 2009 2008 2007 2006 US$ ’000 US$ ’000 US$ ’000 US$ ’000 US$ ’000 income 45,426 57,732 43,781 38,544 31,213 Expenses (46,581) (58,980) (44,349) (41,904) (36,406) Overhead recovery 2,142 2,490 2,041 1,760 884 Surplus 987 1,242 1,473 (1,600) (4,309) capital Employed assets non–current 7,213 8,169 15,206 11,887 10,560 current 47,405 40,639 38,469 35,390 31,094 Total assets 54,618 48,808 53,675 47,277 41,654 net assets and liabilities net assets 27,560 26,392 24,974 23,604 25,173 non–current liabilities 3,291 2,911 3,176 3,212 3,167 current liabilities 23,767 19,505 25,525 20,461 13,314 Total net assets and liabilities 54,618 48,808 53,675 47,277 41,654 Short-term stability indicator 198 days 172 days 117 days 155 days 189 days long-term stability indicator 175 days 151 days 90 days 137 days 174 days a) net assets analysis 30000 25000 20000 Designated $ ‘000’ 15000 Undesignated $ ‘000’ 10000 5000 0 2010 2009 2008 2007 2006 Financial REPORT 2010 22 Five year financial review b) Grant income analysis c) Program/Management expenses analysis inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 23 Statement by the chairman of the board of trustees FOR THE YEaR EnDED 31 DEcEMBER 2010 The year ended 31 December 2010 was another busy and rewarding year for ilRi. Follow up of recommendations of the 2006 External Programme and Management review (EPMR) report are a standing item for board discussion and the board is satisfied with the rate and quality of implementation of the actions of each recommendation. Both Board and Management actively engaged in the cGiaR Reform process. The Board requested for a centre commissioned External Review (ccER) report on pastoral systems and the first draft was reviewed in the november 2010 meeting. The ilRi Board held two face-to-face Board of Trustees (BoT) meetings and retreats in 2010 in addis ababa, Ethiopia, and nairobi, Kenya. a number of Board Members participated in the institute’s annual Planning Meeting (aPM) to get acquainted with ilRi’s program and research staff, to monitor ongoing work and progress and to reflect jointly with ilRi staff on strategic issues related to the institute and the broader cGiaR agenda. in 2010 the Board appointed Khatija Yusoff – Malaysia and lorne Babiuk – canadian to the ilRi Board. During the year the President of the Republic of Kenya – His Excellency Mwai Kibaki officially opened the Beca–ilRi hub. During the year the hub was shared by a wide variety if institutions, scientists and post graduate students. The purpose of the hub is to provide affordable access to first class research for african scientists and post graduate fellows to conduct their research in africa and addressing african progress. The Board is pleased to note the continued financial health and stability and the sound and prudent management of the institute’s financial resources. Revenue in 2010 amounted to US$ 45.4 million against expenditure of US$ 44.4 million resulting in a small surplus of US$ 1 million for the year 2010. The institute’s undesignated net assets at the end of 2010 amount to US$ 19.1 million (total net assets amount to US$ 27.5 million) with liquidity and operational reserve levels above the cGiaR recommended ranges. This situation allows ilRi to adopt a more forward–looking perspective in terms of financial and budget matters. as i mentioned at the beginning of this overview, 2010 was an extremely busy year for the ilRi family. But it was at the same time a very successful year. With quite some pride, the Board would like to thank all ilRi staff for their commitment and hard work. On behalf of the Members of the Board i thank our investors and partners for their confidence and continued support allowing us to fulfil our mission. Prof Knut Hove chairman, Board of Trustees 13 april 2011 Financial REPORT 2010 24 ilRi board statement on risk management FOR THE YEaR EnDED 31 DEcEMBER 2010 The ilRi Board of Trustees is responsible for ensuring that the institute has an appropriate risk management system in place to identify, assess, manage and monitor risks faced by the centre in achieving its objectives. ilRi faces risks as dynamic as the environment in which the institute operates. They include threats to ilRi’s reputation, finances, operations, staff, infrastructure and stakeholders. ilRi has had a risk management policy and strategy in place since 2004. Both policy and practice of the institute risk management conforms to the cGiaR principles and guidelines adopted by the cGiaR. The institute manages risk by ensuring that appropriate means, processes and tools as well as control systems and people are in place throughout the organization. The key practices ilRi has developed to manage risks include appropriate policies and clear accountabilities, regular environmental scans, integrated planning systems, use of transaction approval frameworks, adequate research, financial and management reporting systems as well as monitoring individual performance and business processes across key areas. The effectiveness of ilRi’s risk management policy, strategy and implementation has been assessed by the cGiaR‘s internal audit Unit, which is independent of ilRi business units. The ilRi Board of Trustees reviews both the risk management system as well as major risks at each of its meetings. at its november 2009 meeting, the Board discussed and agreed the basic principles and areas for the 2010 ilRi internal audit Plan, which was formally adopted in January 2010. The Board of Trustees has reviewed ilRi’s risk management policy and strategy and is satisfied that it was implemented effectively during 2010. Prof Knut Hove chairman, Board of Trustees 13 april 2011 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 25 Statement of management’s responsibilities on the financial statements FOR THE YEaR EnDED 31 DEcEMBER 2010 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 and its subsidiary as at the end of the financial year and of the consolidated results of activities and cash flows of the institute and its subsidiary for that year. Management is also required to ensure that the institute keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the institute and its subsidiary. They are also responsible for safeguarding the assets of the institute and its subsidiary. The institute’s management is responsible for the preparation and fair presentation of these financial statements in accordance with the Financial Guideline Series no. 2 –accounting Policies & Reporting Practices Manual of the consultative Group on international agricultural Research (cGiaR) and international Financial Reporting Standards (iFRS), and for such controls as trustees determine are necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with cGiaR Financial Guideline Series no. 2 –accounting Policies & Reporting Practices Manual and international Financial Reporting Standards. 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 its subsidiary and of its consolidated results of activities and cash flows. Management further accepts 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. The Board of Trustees exercises its responsibility for these financial statements through its Finance and audit committees. The committees meet regularly with management, internal auditors and external auditors to review matters relating to financial planning, financial reporting, risk management, internal control, and auditing. nothing has come to the attention of the management to indicate that the institute and its subsidiary will not remain going concerns for at least the next twelve months from the date of this statement. Signed on behalf of Management by: Dr carlos Sere Joan Sawe Director General Director, Finance and Operations 13 april 2011 Financial REPORT 2010 26 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 27 consolidated statement of activities FOR THE YEaR EnDED 31 DEcEMBER 2010 Restricted challenge* 2010 2009 Unrestricted Temporary Program Total US$ Total US$ REVEnUE anD GainS note US$ ‘000 US$ ‘000 US$ ‘000 ‘000 ‘000 Grant Revenue (Exhibit 1 & 2) 5 18,435 23,375 453 42,263 53,932 Other revenue and gains 6 3,070 – – 3,070 3,801 Sales of livestock 7 119 – – 119 199 cost of sale of livestock 7 (111) – – (111) (134) Fair value (loss)/ gain on biological assets 7 85 -- – -- – 85 (66) Total revenue and gains 21,598 23,375 453 45,426 57,732 EXPEnSES anD lOSSES Program related expenses 8 9,382 23,375 453 33,210 45,348 Management and general expenses 9 13,225 – – 13,225 13,497 Kapiti Plains expenses 7 146 -- – -- – 146 135 Sub total expenses and losses 22,753 23,375 453 46,581 58,980 indirect cost recovery 10 (2,142) – – (2,142) (2,490) Total expenses and losses 20,611 23,375 453 44,439 56,490 nET SURPlUS 987 ---- – --- -– 987 1,242 Other comprehensive income Exchange translation differences (19) – – (19) 30 Beca asset replacement 200 - -– - -– 200 146 Total other comprehensive income 181 - -– -- – 181 176 Total comprehensive income for the year 1,168 --- – --- – 1,168 1,418 EXPEnSES BY naTURal claSSiFicaTiOn Personnel costs 11,531 7,432 348 19,311 19,257 collaborators/Partnership costs – 2,694 – 2,694 6,177 Supplies and Services 6,988 9,011 73 16,072 14,322 Operational Travel 806 2,197 32 3,035 3,250 Depreciation 19 1,286 2,041 -- – 3,327 13,484 Total 20,611 23,375 453 44,439 56,490 * Revenue and expenses shown under Challenge Program relate to funds granted by Challenge Programs to ILRI. Financial REPORT 2010 28 Consolidated statement of financial position FOR THE YEaR EnDED 31 DEcEMBER 2010 aSSETS 2010 2009 current assets note US$ ‘000 US$ ‘000 cash and cash equivalents 12 26,925 23,411 accounts receivable and advances Donors 13 13,827 10,848 advances to partners 2,597 2,577 Other cG centres 14 257 454 Employees including project advances 190 156 Others 15 1,256 514 inventories 16 739 913 livestock 17 871 839 Prepaid expenses 743 927 Total current assets 47,405 40,639 non current assets Prepaid operating lease 18 13 14 Property and equipment—net 19 7,200 8,155 Total non-current assets 7,213 8,169 TOTal aSSETS 54,618 48,808 liaBiliTiES anD nET aSSETS current liabilities accounts payable Donors 20 17,023 12,175 Other cG centres 21 299 188 Employees 22 1,793 1,844 Others 23 2,106 2,499 accruals 24 2,546 2,799 Total current liabilities 23,767 19,505 non current liabilities accounts payable—Employees 22 3,291 2,911 Total liabilities 27,058 22,416 net assets Unrestricted—Undesignated 25 19,146 17,151 —Designated 25 8,073 8,828 Reserves in experimental farm 25 341 413 Total net assets 27,560 26,392 TOTal liaBiliTiES anD nET aSSETS 54,618 48,808 The financial statements on pages 20 to 51 were approved by the Board of Trustees on 13th april 2011 and were signed on its behalf by: Carlos Sere Joan Sawe Director General Director, Finance and Operations inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 29 consolidated statement of changes in net assets FOR THE YEaR EnDED 31 DEcEMBER 2010 Reserves in Un-designated Designated experimental notes reserve reserve farm (Kapiti) Total US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 at 1 January 2009 8,735 15,720 519 24,974 Surplus for the year 1,378 – (136) 1,242 Exchange translation – – 30 30 Beca asset replacement* 25 – 146 – 146 Total comprehensive income for the year 1,378 146 (106) 1,418 net change in investment in fixed assets 25 7,038 (7,038) – – Balance as at 31 December 2009 17,151 8,828 413 26,392 at 1 January 2010 17,151 8,828 413 26,392 Surplus for the year 1,040 – (53) 987 Exchange translation – – (19) (19) Beca asset replacement* 25 – 200 200 Total comprehensive income for the year 1,040 200 (72) 1,168 net change in investment in fixed assets 25 955 (955) – – Balance as at 31 December 2010 19,146 8,073 341 27,560 i. Exchange translation on opening reserves in subsidiary and opening balance on assets. * Relates to grants received from Sygenta for the purpose of replacing BecA assets. Financial REPORT 2010 30 Notes to the consolidated financial statements FOR THE YEaR EnDED 31 DEcEMBER 2010 note 2010 2009 US$ ‘000 US$ ‘000 caSH FlOWS FROM OPERaTinG acTiViTiES net surplus for the year 987 1,242 Depreciation of property and equipment 3,327 13,484 Gain on disposal of property and equipment (139) (69) Exchange difference on subsidiary’s opening reserves (19) 30 Beca assets replacement 200 146 Other fixed assets movement 81 – (increase)/ decrease in current assets: accounts receivable Donors (2,979) (4,720) advances to partners (20) 1,325 Other cG centres 197 (122) Employees (34) 234 Others (742) 61 inventories 174 (218) livestock (32) 43 Prepaid expenses 184 450 increase/(decrease) in current liabilities: accounts payable Donors 4,848 (8,007) Employees 329 (23) Other cG centres 111 (211) Others (393) 1,226 accruals (252) 730 net cash generated from operating activities 5,828 5,601 caSH FlOWS FROM inVESTinG acTiViTiES acquisition of property and equipment (2,471) (6,676) Proceeds of disposal of property and equipment 157 298 net cash used in investing activities (2,314) (6,378) incREaSE/(DEcREaSE) in caSH anD caSH EQUiValEnTS 3,514 (777) caSH anD caSH EQUiValEnTS at the beginning of the year 23,411 24,188 at the end of the year 12 26,925 23,411 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 31 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 1. a) cREaTiOn anD STaTUS OF THE inSTiTUTE The international livestock Research institute (ilRi) was created as an international organization by an agreement dated 21 September 1994 signed in Berne, Switzerland, by the governments of Switzerland, Denmark, Sweden, Kenya and Ethiopia and the United nations Environmental Programme. On 1 January 1995, all the activities, assets, liabilities and fund balances of the international laboratory for Research on animal Diseases (ilRaD) based in nairobi, Kenya, and the international livestock centre for africa (ilca) based in addis ababa, Ethiopia, were transferred to ilRi. ilRi operates under agreements entered into with the governments of the respective host countries (Kenya and Ethiopia). The Government of Kenya (1974) and the Government of Ethiopia (1976) made available to ilRi leasehold land of approximately 70 hectares and 32 hectares respectively. The financial statements of ilRi have been consolidated with the financial statements of its subsidiary—Kapiti Plains Estate limited in accordance with international accounting Standard 27 on consolidated and separate financial statements. B) SUBSiDiaRY–KaPiTi PlainS ESTaTE liMiTED Kapiti Plains Estate limited is a wholly owned subsidiary of ilRi purchased in 1981 and registered under the companies act of Kenya. The company operates a ranch that was acquired primarily to support the research needs of international livestock Research institute. The subsidiary sells surplus livestock to third parties. The financial statements of ilRi reflect the activities of two multi-stakeholder initiatives for which ilRi assumes legal and managerial responsibility: i. BiOSciEncES EaSTERn anD cEnTRal aFRica (BEca) The Biosciences Eastern and central africa (Beca) initiative seeks to strengthen the capacity of biosciences research in africa and improve products that enhance the livelihoods of farmers in the region. The Beca–ilRi hub, a research platform that includes state-of-the-art facilities and research support, is located at ilRi’s nairobi campus. The Beca–ilRi hub is funded through grants from various donors as well as by ilRi’s unrestricted funds. ii. SYSTEM WiDE liVESTOcK PROGRaMME (SlP) The SlP is a multi-centre initiative that adds value to the outputs of individual cGiaR centres and their partners by creating and exploiting synergies in crop–livestock research to reduce poverty in areas where small-scale mixed crop-and-livestock production is widely practised. Through these partnerships, the program seeks to contribute to the cGiaR and Millennium Development Goals of reducing poverty by enhancing the productivity and sustainability of crop–livestock agriculture through improving feed. The program activities are mainly funded by canada, Switzerland and the World Bank. Financial REPORT 2010 32 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 ilRi hosts and provides logistic and administrative support to the Program coordination office, chairs the livestock Programme Group and ensures that the required expertise in livestock is available for projects led by centres other than ilRi. 2. SiGniFicanT accOUnTinG POliciES Statement of compliance The accounting policies applied in the preparation of these financial statements are consistent with the consultative Group on international agricultural Research (cGiaR) financial guideline series no. 2— accounting Policies & Reporting Practices Manual (Revised February 2006) and complemented by international Financial Reporting Standards (iFRS) as required. application of new and revised international Financial Reporting Standards (iFRSs) IAS 1 (revised) ‘Presentation of financial statements’—effective 1 January 2009 a revised version of iaS 1 was issued in September 2007. it prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in net assets’) in the statement of changes in net assets, requiring ‘non-owner changes in net assets to be presented separately from owner changes in net assets in a statement of comprehensive income. as a result, the institute has presented in the statement of changes in assets all owner changes in net assets, whereas all non-owner changes in net assets are presented in the statement of comprehensive income. according to the amendment of iaS 1 in January 2008, each component of net assets, including each item of other comprehensive income, should be reconciled between carrying amount at the beginning and the end of the period. The adoption does not have any impact on the institute’s reserves. The institute has adopted these changes in presentation for the first time in the current year. New standards and amendments to published standards effective for the year ended 31 December 2010 There were a number of new and revised or amended standards and interpretations that became effective during the year. none of this had a significant impact on the institute’s accounting policies. New and revised standards in issue not yet effective at the date of authorization of these financial statements, the following revised standards were in issue but not yet effective and are relevant to the group. • iaS 24 (revised in 2009) Related Party Disclosures (Effective for annual periods beginning on or after 1 January 2011). • amendments to iFRS 7 Disclosures—Enhanced Derecognition Disclosure Requirements (Effective for annual periods beginning on or after 1 July 2011). The adoption of these standards and interpretations, when effective, is not expected to have material impact on the financial statements of ilRi and its subsidiary. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 33 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 2 SiGniFicanT accOUnTinG POliciES (continued) Basis of accounting The significant accounting policies are summarized below. (a) accounting convention The financial statements are prepared under the historical cost convention and on the accruals basis, modified to include the carrying of certain assets belonging to the subsidiary at fair value. (b) Basis of consolidation Subsidiary undertakings, being those entities in which the institute either directly or indirectly has an interest of more than 50% of the voting rights or otherwise has power to exercise control over the operations, have been consolidated. Subsidiaries are consolidated from the date on which effective control is transferred to the institute and are no longer consolidated as from the date of disposal. all intercompany balances and unrealized surpluses and deficits on transactions with the subsidiary company have been eliminated. The consolidated financial statements incorporate the financial statements of the institute and its wholly owned Subsidiary, Kapiti Plains Estate limited whose financial year ends on 31 December. (c) Revenue recognition i. Grants represent support with donor-imposed conditions and could be restricted or unrestricted. Unrestricted grants are grants received which the institute may freely use for its mandated activities. Restricted grants are received in support of specified projects or activities mutually agreed upon between the centre and the donors. ii. Restricted grants are recognized as revenue upon the fulfilment of donor-imposed conditions. iii. Unrestricted grants are recognized upon receipt of confirmed commitment. iv. Program funds are funds provided by donors that need to be used on a certain research theme, activity or region. They are treated as restricted grants. v. Other revenues and gains are recognized as they are earned. (d) currency translation The institute’s financial statements are presented in United States Dollars (US$). Transactions and balances expressed in currencies other than the US dollar are treated as follows: i. non US dollar grants and donations received in the year are converted to US dollars at the rates of exchange being used on the dates of receipt. non US dollar grants and donations pledged for the year but not received by the year-end are recognized in the financial statements at the rates of exchange prevailing at the year-end. ii. non US dollar denominated expenditures are recorded at the prevailing rates of exchange for the month in which they are incurred and are accumulated in US dollars. iii. assets and liabilities that are denominated in currencies other than the US dollar are restated into US dollars at the rates of exchange prevailing at the year-end. Financial REPORT 2010 34 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 2 SiGniFicanT accOUnTinG POliciES (continued) iv. Gains and losses arising from changes in exchange rates are charged or credited to the statement of activities in the year in which they arise. v. Exchange translation on opening reserves in the subsidiary is recognized in other comprehensive income and accumulated in the subsidiary’s reserve. (e) cash and cash equivalents cash equivalents are short term, highly liquid investments that are both readily convertible to known amounts of cash and so near maturity date that they present insignificant risk of changes in value. (f) accounts receivable accounts receivable from donors, employees and other entities are carried at anticipated realizable value. an allowance is made for doubtful receivables based on a review of all outstanding amounts at the year-end. Bad debts are written off during the year in which they are identified as irrecoverable. The write off of receivables is done after all efforts to collect have been exhausted. Donor receivables are funds expended on behalf of a donor but not yet reimbursed. (g) Property and equipment Property and equipment whose full cost exceed US$ 1,000 and which ilRi can use in the production or supply of goods or services or for administrative services for more than one year are capitalized and stated at acquisition cost less accumulated depreciation and accumulated impairment losses. acquisition cost includes the direct purchase price and incidental costs such as freight, insurance, installation and handling charges. Subsequent material expenditure that extends the useful life or enhances the operating efficiency of an item of property and equipment is capitalized. The cost of normal repairs and maintenance of existing property and equipment is treated as operating expenses. construction work-in-progress is capitalized as work progresses but depreciation starts only when the work is completed and the facility is put into use. all immovable assets constructed or carried on leasehold land donated by host countries have been capitalized as assets of the institute. ilRi has the right to negotiate for extension of leases under the host country agreements upon the expiry of the current leases. in accordance with the host country agreements, in the event that the host country agreement is terminated or the host country does not renew a lease upon expiry, all immovable assets will be disposed off by the cGiaR (in consultation with Government of Ethiopia and Government of Kenya). inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 35 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 2 SiGniFicanT accOUnTinG POliciES (continued) Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are accounted for in the Statement of activities. (h) Depreciation and amortization Depreciation is calculated on the straight-line basis at annual rates estimated to write off the cost of each item of property and equipment over the estimated term of its useful life. The annual rates used are Farm works 5% Buildings and land improvements 3% (33 years) laboratory and scientific equipment 10% – 15% (7 – 10 years) on an item by item basis computers 33.33% (3 years) Office and household furniture and equipment 20% (5 years) Farm equipment 10% (10 years) Motor vehicles 20% (5 years) Software 33.33% (3 years) Depreciation of acquired assets start in the month the assets are placed in operation and continue until the assets have been fully depreciated or their use discontinued. Property and equipment acquired using project-restricted funds are fully depreciated when they are placed in operation under the specific benefiting projects. Depreciation charge is time-apportioned in the year of disposal of items of property and equipment. For the subsidiary company, excess depreciation on the revaluation surplus is transferred from the capital reserve to revenue reserve. Operating lease rentals relating to leased land are amortized over the term of lease. (i) intangible assets intangible assets of the institute comprise acquired computer software. The cost of acquisition and installation of computer software is capitalized and amortized over the estimated useful life of the software, usually three years. Financial REPORT 2010 36 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 2 SiGniFicanT accOUnTinG POliciES (continued) (j) asset impairment losses The carrying values of property and equipment, including intangible assets, are reviewed annually and adjusted for impairment losses where it is considered necessary. (k) inventories and livestock inventory is carried at the lower of cost and net realizable value. cost is calculated on the weighted average basis and includes purchase price, freight and other incidental costs. The determination of obsolescence or expiration is based on the lower of the manufacturer’s recommendations and documented experience and knowledge of management. The amount of write-down of inventories to net realizable value and all losses of inventories should be recognized as an expense in the period the write down or loss occurs. livestock is stated at fair value less point of sale costs. The fair value of livestock is determined based on market prices for livestock of similar age, breed and genetic merit. changes in fair value are recognized in the statement of activities. (l) Staff retirement benefits The institute’s contributions are maintained as a defined contribution plan for all categories of staff. Full provision is made for severance benefits payable to employees at the end of their contracts. Provisions are also made in respect of repatriation costs and outstanding leave days accruing to all staff (See note 22). (m) net assets net assets represent the residual interest in the institute’s assets remaining after liabilities have been deducted. all the institute’s net assets are unrestricted. (n) accruals accruals represent liabilities to pay for goods or services that have been received/supplied but not yet invoiced or formally agreed with suppliers. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 37 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 2 SiGniFicanT accOUnTinG POliciES (continued) (o) accounts payable These represent amounts due to donors, employees and others for support, services and /or materials received prior to year-end but not paid for as at balance sheet date. Donor payables are unexpended funds received in advance for restricted grants. (p) Provisions Provisions are recognized when the institute has: (a) a present legal or constructive obligation as a result of past events, (b) it is more likely than not that an outflow of resources will be required to settle the obligation and (c) a reliable estimate of the amount can be made. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the statement of financial position date. (q) Tax ILRI—The governments of Kenya and Ethiopia have undertaken to exempt the centre from all local taxes including customs duty on goods and services received by the centre. consequently, the centre does not account for tax in its financial statements. Kapiti Plains Estate Limited—current taxation is provided for on the basis of the results for the year as shown in the financial statements, adjusted in accordance with the tax legislation. Deferred taxation is provided using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and the unused tax credits can be utilized. 3. Financial RiSK ManaGEMEnT OBJEcTiVES anD POliciES Managing financial risk is one aspect of the risk management practice of ilRi which considers all its operations. The institute’s activities expose it to a variety of financial risks, including funding risks, variation of foreign exchange risk, interest risk, credit risk, banking risk and inflation. Risk management is carried out by the management of the institute supported by the internal audit unit under policies approved by the Board of Trustees. a key element of the institute’s risk management program is minimizing potential adverse effects on its financial performance. The Finance function identifies, evaluates and hedges financial risks. Financial REPORT 2010 38 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 3. Financial RiSK ManaGEMEnT OBJEcTiVES anD POliciES (continued) (i) Risk from foreign exchange risk and interest rate variations The organization is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Kenya shilling, Ethiopian birr, British pound and the Euro. Foreign exchange risk arises from future transactions and recognized assets and liabilities. investment decisions are also guided by the foreseeable conditions of foreign exchange markets and a conservative investment policy. (ii) Funding risk ilRi manages funding risk through financial planning systems, a conservative investment policy and its resource mobilisation strategy. (iii) inflation risk inflation risk is managed through conservative budgeting and a conservative investment policy. (iv) credit risk This risk is managed in three ways: • avoiding contract with donors on a reimbursable basis • Minimizing advances to suppliers • Strict management of employee advances • Stringent due diligence process for bank selection and regular tenders for local banks. Fully performing Past due impaired Financial assets US$ ’000 US$ ’000 US$ ’000 2010 accounts receivable—donors 13,827 – 453 accounts receivable—other cG centres 257 – – accounts receivable—others 1,256 – 18 Bank balances and deposits 26,911 – – 42,251 – 471 2009 accounts receivable—donors 10,848 – 430 accounts receivable—other cG centres 454 – – accounts receivable—others 514 – 18 Bank balances and deposits 23,392 – – 35,208 – 448 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 39 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 3. Financial RiSK ManaGEMEnT OBJEcTiVES anD POliciES (continued) (v) liquidity risk Effective cash flow and working capital management is carried out to ensure there is a balance between operational and investment requirements. The table below analyses the institute’s financial liabilities that will be settled on a net basis into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts, as the impact of discounting is not significant. The bulk of the donor payables amounting to $ 17,023 represent funds received in advance to be spent within the next year or until project completion. less than 1 month Between 1–3 months Over 3 months US$ ’000 US$ ’000 US$ ’000 at 31 December 2010: accounts payable—other cG centres – 299 – accounts payable—others – 2,106 – accruals – 2,546 – Donors – 17,023 – –----– 21,974 –----– at 31 December 2009: accounts payable—other cG centres – 188 – accounts payable—others – 2,499 – accruals – 2,799 – Donors – 12,175 – –----– 17,661 –----– (vi) Other financial risks are addressed through internal control systems and regular market surveys. Financial REPORT 2010 40 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 4. cRiTical accOUnTinG JUDGEMEnTS anD KEY SOURcES OF ESTiMaTiOn UncERTainTY in the process of applying the institute’s and its subsidiary’s accounting policies, management has made estimates and assumptions that affect the reported amounts of assets and liabilities within current and future financial years. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The critical areas of accounting estimates and judgements in relation to the preparation of these financial statements are as set out below: a critical judgements in applying accounting policies There are no critical judgements, apart from those involving estimations (see below), that management have made in the process of applying the entity’s accounting policies and that have significant effect on the amounts recognized in financial statements. b Key sources of estimation uncertainty Impairment of assets at each statement of financial position date, the institute reviews the carrying amount of its assets to determine whether there is any indication that these assets have suffered an impairment loss. if any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Property, plant and equipment critical estimates are made in determining the useful lives and residual values to property, plant and equipment based on the intended use of the assets and the economic lives of those assets. Subsequent changes in circumstances or prospective utilization of the assets concerned could result in the actual useful lives or residual values differing from initial estimates. although management believes the estimates and assumptions used in preparation of these combined financial statements were appropriate in the circumstances, actual results could differ from those estimates and assumptions. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 41 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 5. (a) GRanT REVEnUE advance Donor Total Donor advance donations receivables receipts receivables donations Revenue Revenue 1/1/10 1/1/10 2010 31/12/10 31/12/10 for 2010 for 2009 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 Unrestricted – (1,478) 11,006 8,907 – 18,435 15,622 Restricted temporary 12,175 (9,632) 32,482 5,373 (17,023) 23,375 37,797 challenge program – (168) 621 – – 453 513 12,175 (11,278) 44,109 14,280 (17,023) 42,263 53,932 5. (b) GRanT REVEnUE –BEca, SlP The above revenue include revenue attributable to Beca (restricted) and SlP as analysed below: advance Donor Total Donor advance adjustments Revenue for Revenue for donations receivables receipts receivables donations 2010 2010 2009 1/1/10 1/1/10 2010 31/12/10 31/12/10 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 Beca – (5,473) 4,386 1,204 2,715 – 2,832 15,871 SlP 2,077 – 891 – 22 (2,183) 807 457 2,077 (5,473) 5,277 1,204 2,737 (2,183) 3,639 16,328 6. OTHER REVEnUE anD SUPPORT 2010 2009 US$ ’000 US$ ’000 interest income 129 263 Rent income 879 925 catering income 381 425 Gain on disposal of equipment 183 69 Service income 1,498 1,007 Foreign exchange variations—net: Realized – 6 Unrealized – 1,106 3,070 3,801 Service income is from services rendered by the laboratory and administrative units to external entities, other than rental of facilities and catering income. Financial REPORT 2010 42 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 7. inVESTMEnT in SUBSiDiaRY—EXPERiMEnTal FaRM This represents the cost of investment in Kapiti Plains Estate limited (Kapiti), a ranch that was acquired for the purposes of securing adequate supplies of disease-free livestock to the institute. Kapiti is a wholly owned subsidiary of ilRi and operates an experimental farm. The subsidiary’s net assets as at 31 December 2010 amounted to US$ 341,805 (2009: US$ 419,076). The financial statements of Kapiti Plains Estate limited are prepared in Kenya shillings. The US dollar appreciated against the Kenya shilling in 2010 by approximately 6.5%. The consolidated statement of activities includes the subsidiary’s results for the year as summarized below: 2010 2009 US$ ’000 US$ ’000 Total revenue from sale of livestock 119 199 less: Sales to ilRi, eliminated on consolidation – – Sales to third parties 119 199 cost of sales to third parties (111) (134) Fair value gain/(loss) on biological assets 85 (66) Gross profit 93 (1) Expenses and overheads (146) (135) loss for the year (53) (136) The difference between sales and cost of sales to ilRi has not been taken into account as it is not material KaPiTi PlainS ESTaTE liMiTED EXPEnSES anD OVERHEaDS 2010 2009 US$ ’000 US$ ’000 Personnel costs 41 40 Supplies and services 91 70 Depreciation 14 25 146 135 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 43 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 8 (a) PROGRaM RElaTED EXPEnSES 2010 2009 US$ ’000 US$ ’000 Personnel costs (note 11) 12,740 13,403 collaborators/Partnership costs 2,694 6,159 Supplies and services 13,198 11,126 Operational Travel 2,537 2,806 Depreciation and amortization 2,041 11,854 33,210 45,348 (b) EXPEnDiTURE –Beca (restricted expenses only), SlP included in the above expenses are the following Beca and SlP expenses. Supplies & Operational 2010 2009 Personnel services collaborators travel Depreciation Total Total US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 Beca 658 100 734 54 1,286 2,832 15,871 SlP 231 361 83 132 – 807 457 889 461 817 186 1,286 3,639 16,328 9 ManaGEMEnT anD GEnERal EXPEnSES 2010 2009 US$ ’000 US$ ’000 Personnel costs (note 11) 6,571 5,854 collaborators/Partnership costs – 18 Suppliers and services 4,870 5,551 Operational travel 498 444 Depreciation and amortization 1,286 1,630 13,225 13,497 Financial REPORT 2010 44 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 10 inDiREcT cOSTS REcOVERY indirect costs recovery represents the portion of project restricted income allocated by donors through the grant agreements to support general institutional overhead costs. The recoveries supplement the institute’s unrestricted funding. 2010 2009 Overheads US$ ’000 US$ ’000 Beca 96 643 Others 2,046 1,847 2,142 2,490 11. PERSOnnEl cOSTS 2010 2009 US$ ’000 US$ ’000 Management and general operations Salaries and allowances 5,156 4,586 Pension contributions 571 513 Medical and life insurance 476 520 Relocation and leave expenses 63 207 Other personnel costs 305 28 6,571 5,854 Program related activities Salaries and allowances 9,881 10,549 Pension contributions 1,178 1,036 Medical and life insurance 808 803 Relocation and leave expenses 634 900 Other personnel costs 239 115 12,740 13,403 19,311 19,257 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 45 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 12. caSH anD caSH EQUiValEnTS 2010 2009 US$ ’000 US$ ’000 Unrestricted cash and cash equivalents 9,874 11,182 Restricted donor advances 17,023 12,175 interest receivable 28 54 Total cash and cash equivalents 26,925 23,411 comprising: certificates of deposit 14,140 14,848 Bank balances 12,771 8,545 cash in hand and cash in transit 14 18 26,925 23,411 13. accOUnTS REcEiVaBlE—DOnORS 2010 2009 US$ ’000 US$ ’000 Unrestricted 8,906 1,478 Program restricted 570 627 Project restricted—Beca 1,204 – Others 3,600 9,173 14,280 11,278 less: allowance for doubtful accounts (453) (430) 13,827 10,848 Financial REPORT 2010 46 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 14. accOUnTS REcEiVaBlE—OTHER cG cEnTRES 2010 2009 US$ ’000 US$ ’000 ciFOR—center for international Forestry Research – 18 ciMMYT—international Maize & Wheat improvement centre 1 15 icRaF—World agroforestry center 8 6 icRiSaT—international crop Research institute For The Semiarid Tropics 18 17 iFPRi—international Food Policy Research institute – 10 iiTa—international institute Of Tropical agriculture 18 14 iWMi—international Water Management institute – 95 cG Secretariat 13 13 cG Media unit 137 189 icaRDa – 2 cG internal audit 5 11 ciP—international Potato centre 57 64 257 454 15. accOUnTS REcEiVaBlE—OTHERS 2010 2009 US$ ’000 US$ ’000 aiaRc 15 7 Field offices 769 88 loan to staff association 78 96 consultants and trainees 312 49 Others 00 292 1,274 532 less: allowance for doubtful accounts (18) (18) 1,256 514 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 47 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 16. inVEnTORiES 2010 2009 US$ ’000 US$ ’000 Engineering and maintenance parts 341 528 laboratory and chemical supplies 277 376 Office and other supplies 429 366 1,047 1,270 less: allowance for obsolescence (308) (357) 739 913 17. liVESTOcK Fair value at the beginning of the year 839 882 Exchange (loss)/gain on translation of opening balance (51) 23 Gain/(loss) arising from changes in fair value attributable to physical changes 22 (195) Gain arising from changes in fair value attributable to price changes 61 129 Fair value at the end of the year 871 839 18. PREPaiD OPERaTinG lEaSE cost 13 14 This represents the cost of leasehold land used as an experimental farm under the ownership of the subsidiary, Kapiti Plains Estate limited. The annual amortization of the lease rentals is negligible. The decrease in value of prepaid operating lease arises in part from a translation loss on the cost of Kapiti Plains Estate limited leasehold land. Financial REPORT 2010 48 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 19. PROPERTY & EQUiPMEnT 2010 Balance at Unrestricted Restricted Other Balance at 1/1/2010 US$ additions additions Disposals movements 31/12/2010 ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 cOST Physical facilities, infrastructure and 33,514 131 1,143 – – 34,788 leasehold improvements Furnishings and equipment 26,716 750 898 (3,970) – 24,394 intangible assets 438 5 – – – 443 construction work in progress 1,040 – – – (456) 584 61,708 886 2,041 (3,970) (456) 60,209 accUMUlaTED DEPREciaTiOn Physical facilities, infrastructure and (28,123) (586) (1,143) – – (29,852) leasehold improvements Furnishings and equipment (24,973) (699) (898) 3,952 (78) (22,696) intangible assets (438) (1) – – – (439) (53,534) (1,286) (2,041) 3,952 (78) (52,987) nET BOOK ValUE Physical facilities, infrastructure and 5,391 (455) – – – 4,936 leasehold improvements Furnishings and equipment 1,743 51 – (18) (78) 1,698 intangible assets – 4 – – – 4 construction work in progress 1,040 – – – (456) 584 Exchange translation on opening balance (19) – – – (3) (22) 8,155 (400) – (18) (537) 7,200 Fully depreciated assets at 31 December 2010, equipment with a cost of US$ 39,833,540 (2009–37,792,002) were fully depreciated. assets in custody in December 2010, property and equipment with a cost of US$ 2,041,538 (2009 US$ 11,854,918), which were acquired using project-restricted funds, were fully depreciated upon purchase in conformity with the cGiaR Financial Guidelines. These assets were still in the institute’s use as at 31 December 2010. inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 49 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 19. PROPERTY & EQUiPMEnT 2009 Balance at Unrestricted Restricted Other Balance at 1/1/2009 additions additions Disposals movements 31/12/2009 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 cOST Physical facilities, infrastructure 25,599 410 7,505 – – 33,514 and leasehold improvements Furnishings and equipment 22,904 954 4,349 (1,288) 5 26,924 intangible assets 438 – – – – 438 construction work in progress 7,582 201 839 – (7,582) 1,040 56,523 1,565 12,693 (1,288) (7,577) 61,916 accUMUlaTED DEPREciaTiOn Physical facilities, infrastructure (19,827) (791) (7,505) – – (28,123) and leasehold improvements Furnishings and equipment (21,053) (839) (4,349) 1,222 (163) (25,182) intangible assets (438) – – – – (438) (41,318) (1,630) (11,854) 1,222 (163) (53,743) nET BOOK ValUE Physical facilities, infrastructure 5,772 (381) – – – 5,391 and leasehold improvements Furnishings and equipment 1,851 115 – (66) (158) 1,742 intangible assets – – – – – – construction work in progress 7,582 201 839 – (7,582) 1,040 Exchange translation on (12) – – – (6) (18) opening balance 15,193 (65) 839 (66) (7,746) 8,155 Financial REPORT 2010 50 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 20. accOUnTS PaYaBlE—DOnORS 2010 2009 US$ ’000 US$ ’000 Programme restricted – 2,517 Project restricted—Others 17,023 9,658 17,023 12,175 21. accOUnTS PaYaBlE—OTHER cG cEnTRES ciP—international Potato centre – 14 ciMMYT—international Maize & Wheat improvement centre – 2 cG Media Unit 19 – icaRDa 88 – ciFOR 85 – icRiSaT—international crop Research institute For The Semiarid Tropics 1 12 iFPRi—international Food Policy Research institute – 3 iiTa—international institute Of Tropical agriculture 101 132 iWMi—international Water Management institute – 20 Secretariat 5 5 299 188 22. accOUnTS PaYaBlE—EMPlOYEES Balance at beginning of the year 4,754 4,778 Provision during the year 614 487 Disbursed during the year (284) (510) Balance at end of the year 5,084 4,755 comprising: Staff personal accounts 854 735 Provision for severance benefits 1,777 1,472 Provision for repatriation costs 1,514 1,439 Provision for accrued leave 939 1,109 Balance at end of the year 5,084 4,755 less: amount payable within one year (1,793) (1,844) amount payable after one year 3,291 2,911 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 51 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 23. accOUnTS PaYaBlE—OTHERS 2010 2009 US$ ’000 US$ ’000 Due to suppliers 518 600 Beca-related construction payments 216 585 Field offices 662 431 consultants and trainees 85 127 Sundry payables 625 756 2,106 2,499 24. accRUalS Beca-architectural works – 839 consultants’ costs 565 203 Emergency Programme Management Review (EPMR) 300 300 Staff development 425 356 Project expenses 709 514 General supplies and services 547 587 2,546 2,799 25. nET aSSETS Undesignated Designated Kapiti Total US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 Balance at 1 January 2010 17,151 8,828 413 26,392 Depreciation charge for the year 3,327 (3,327) – – acquisition of property equipment (2,927) 2,927 – – Other movements 555 (555) – – Total 955 (955) – – changes in net asset during the year 1,040 (53) 987 Beca asset replacement – 200 – 200 Exchange translation – – (19) (19) Balance at 31 December 2010 19,146 8,073 341 27,560 Financial REPORT 2010 52 notes to the consolidated Financial Statements FOR THE YEaR EnDED 31 DEcEMBER 2010 (continued) 26. cOnTinGEnT liaBiliTY Following a tax audit by the Kenya Revenue authority in December 2006, the institute received a notification requiring payment of a total of US$ 833,916 (KShs 67,297,031) relating to income tax assessed on overseas pension contribution for nationally Recruited Staff (nRS) and stipends for Research Fellows. The institute’s view is that the assessment contradicts the Host country agreement (Hca) signed between the institute and the Government of Kenya represented by the Ministry of Foreign affairs. This agreement explicitly exempts the nationally Recruited Staff or the institute from paying income tax on overseas pension plans. The institute is working closely with Kenya’s Ministry of Foreign affairs with a view to having the matter resolved and management are of the opinion that this matter will be resolved in accordance with the provisions of the Host country agreement and as a result, no provision has been made in the financial statements with regard to the potential liability notified by Kenya Revenue authority. The case has also been presented to the Kenya Revenue authority articulating the institute management’s position that stipends are not taxable and a positive outcome is expected. 27. cOMPaRaTiVES Where necessary, the comparative figures have been adjusted to conform to changes in presentation in the current year. 28. cURREncY These financial statements are presented in United States Dollar Thousands (US$ ‘000). inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 53 Exhibit i Schedule of Unrestricted Grant Revenue for the year ended 31 December 2010—currency—US dollar accounts advance accounts advance Total Funds Receivable Payment Receivable Payment Revenue Revenue Donor available 1/1/10 1/1/10 adjustment 31/12/10 31/12/10 for 2010 for 2009 aid of africa 13,410 – – – – – 13,410 – australia 417,922 – – 140,864 – – 417,922 140,864 Belgium 161,139 – – – – – 161,139 172,616 canada 2,399,775 – – – 1,199,888 – 2,399,775 212,714 china3 199,510 – – – 89,738 – 199,510 (40,210) Denmark 792,421 – – – – – 792,421 1,216,600 Finland 2,056,270 1,072,046 – – 984,225 – 984,225 1,072,046 France – – – – – – – – Germany 671,048 – – – – – 671,048 842,256 ireland1 1,120,160 – – – – – 1,120,160 1,451,321 india 0 – – – – – – 37,500 italy 0 – – – – – – 366,247 Korea 40,000.00 – – – – – 40,000 50,000 netherlands – – – – – – – – norway 1,794,512 – – – 1,794,512 – 1,794,512 1,590,310 Portugal 0 – – – – – 99,825 South africa 99,913 50,000 – – – – 49,913 50,000 Sweden 1,165,560 – – – 1,165,560.12 – 1,165,560 1,062,642 Switzerland 934,691 – – – – – 934,691 958,139 United 1,644,686 – – – – – 1,644,686 1,362,554 Kingdom USaiD2 3,881,525 355,600 – 6,213 3,525,925 – 3,525,925 3,266,000 World Bank 2,520,000 – – – – 2,520,000 1,710,000 – TOTal 19,912,542 1,477,646 – 147,077 8,759,847 – 18,434,897 15,621,423 Note 1. USD 100,000 of the contribution from India has been allocated to Program shown in Exhibit2. 2. USD 267,007 of the contribution from Italy has been allocated to Program shown in Exhibit2. 3. USD 147,077 to be adjusted against receivable. Financial REPORT 2010 54 Exhibit ii Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative Expenditure Donor and project Start date End date Grant pledge to 2009 2010 Total a: Restricted—Temporary—attributed (Program) canada Sytemwide livestock Program Jan–03 Dec–10 1,713,681 267,625 241,515 509,140 canada Sub-total 1,713,681 267,625 241,515 509,140 EUROPEan cOMMUniTY/iFaD Biotechnology Jan–08 Dec–10 2,107,566 1,409,170 770,856 2,180,025 improving Markets Opportunities Jan–08 Dec–09 702,522 706,241 – 706,241 Regional Plan for collective action in Jan–08 Dec–10 677,432 510,361 135,229 645,590 Eastern and Southern africa Ec/iFaD Sub-total 3,487,520 2,625,772 906,085 3,531,857 inDia Greenhouse Jan–06 Dec–10 105,000 95,505 2,024 97,529 Genetic Disease Jan–06 Dec–10 75,000 30,359 99 30,458 Epidemiology Jan–06 Dec–10 120,000 105,322 1,690 107,011 india Sub-total 300,000 231,186 3,813 234,999 iRElanD To support the Biotechnology Theme Jan–02 Dec–10 1,272,019 1,044,273 76 1,044,349 (animal Genetic Resources) ireland Sub-total 1,272,019 1,044,273 76 1,044,349 italy improving Markets Opportunities Jan–08 Dec–10 1,015,311 749,374 267,007 1,016,381 italy Sub-total 1,015,311 749,374 267,007 1,016,381 norway FaRa sub–Saharan africa Programs Jan–05 Dec–09 921,884 733,110 59 733,169 norway Sub-total 921,884 733,110 59 733,169 Switzerland Sytemwide livestock Program Jan–99 Dec–10 3,390,555 3,016,039 136,120 3,152,158 Switzerland Sub-total 3,390,555 3,016,039 136,120 3,152,158 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 55 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total WOlRD BanK Sytemwide livestock Program Jan–02 Dec–10 1,890,000 1,298,163 274,764 1,572,927 World Bank Sub-total 1,890,000 1,298,163 274,764 1,572,927 UniTED STaTES aGEncY FOR inTERnaTiOnal DEVElOPMEnT (USaiD) USaiD linkage activities Jan–06 Dec–10 634,960 382,409 2,400 384,808 USaiD Sub-total 634,960 382,409 2,400 384,808 PORTUGal ilRi/Mozambique/Portugees Jan–09 Dec–10 200,000 48,400 76,085 124,485 Portugal Sub-total 200,000 48,400 76,085 124,485 Sub-total : a 14,825,930 10,396,350 1,907,922 12,304,272 B: Restricted—Temporary—Projects aUSTRalian cEnTRE FOR inTERnaTiOnal aGRicUlTURal RESEaRcH (aciaR) improving the quality of pearl millet apr–04 Dec–08 162,420 104,955 40,012 144,967 residues for livestock improving the competitiveness of Pig Producers in an adjusting Vietnam apr–07 Mar–10 631,837 185,434 391,653 577,087 Market improving Postrainy Sorghum Varieties to Meet the Growing Grain and Fodder Jul–08 Jun–12 81,676 7,127 9,858 16,985 Demand in india Financial costs of disease burden, morbidity and mortality from priority Mar–10 May–10 110,398 – 11,980 11,980 livestock diseases in nigeria aciaR Sub-total 986,331 297,517 453,502 751,019 aSSOcaiTiOn FOR STREnGTHEninG aGRicUlTURal RESEaRcH in EaSTERn anD cEnTRal aFRica (aSaREca) Exploiting Markets for Dairy and Meat nov–05 Jan’10 117,844 59,172 33,758 92,930 Products: Quality and Safety napier Grass Stunt and Stunt Resistance aug–07 Jul’10 547,992 331,761 242,971 574,732 Support to a–aaRnET for cGS Funding Sep–05 Jan’10 787,663 171,325 53,894 225,219 Stream integrating informal Milk Markets into Formal Value chains in Eastern and Mar–09 Jan–10 127,372 64,168 15,258 79,426 central africa – 2009 Financial REPORT 2010 56 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total Diagnostic and control Tools and Strategies for Taenia solium Jun–09 apr–11 83,892 – 20,192 20,192 cysticercosis natural Resource Management and Biodiversity conservation in the aug–09 Dec–10 125,832 8,263 87,338 95,601 Drylands of Eastren and central africa addressing the Food Price Situation in Sep–09 Feb–10 80,021 4,255 55,617 59,873 cOMESa characterization of Production Traits, Establishment of Genetic Potential for improvement of indigenous Breeds of Oct–09 Dec–11 24,360 – 10,637 10,637 Sheep and goats in Eastern and central africa Testing and Validation of Breed Survey Methodology, Socio–economic Survey and characterization of Selected Oct–09 Dec–11 22,360 – 10,492 10,492 indigenous cattle of Eastern and central africa Rationalization and Harmonization project: Module 1: integrating informal Oct–09 Sep–10 193,747 18,430 92,670 111,100 milk markets into formal value chains in Eastern and central africa—2010 aSaREca Sub-total 2,111,083 657,374 622,827 1,280,201 aUSTRia Evaluation of ecological and economic sustainability of breeding strategies in Jan–07 Jan–10 641,541 619,397 22,144 641,541 pastoral systems: the case of ankole cattle Designing community based breeding strategies for indigenous sheep breeds Mar–07 Jul–11 536,974 268,632 112,669 381,300 of Smallholders in Ethiopia Study on genetic differentiation and metabolic adaptation on different cattle genotypes to altitude along the slopes Oct–08 Dec–10 31,662 12,838 25 12,863 of the Semien Mountains in north Western Ethiopia aUSTRia Sub-total 1,210,177 900,867 134,838 1,035,704 aFRican WilDliFE FOUnDaTiOn The Kitengela conservation Program nov–08 Dec–10 447,981 152,758 72,987 225,745 aWF Sub-total 447,981 152,758 72,987 225,745 alliancE FOR a GREEn REVOlUTiOn in aFRica african agricultural Markets conference—towards priority actions nov–08 Feb–11 449,545 240,643 29,948 270,590 for market development for african Farmers aGRa Sub-total 449,545 240,643 29,948 270,590 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 57 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total acDi/VOca Kenya Maize Development Program: apr–10 Jul–10 31,155 – 31,155 31,155 annual Household Survey acD Sub-total 31,155 – 31,155 31,155 aVian inFlUEnZa cOnTROl PROJEcT (aicP) Financial costs of disease burden, morbidity and mortality from priority Mar–10 May–10 110,398 – 44,815 44,815 livestock diseases in nigeria assesment of Risks to Human Health associated with meat from different Mar–10 aug–10 107,041 – 56,523 56,523 value chains in nigeria aicP Sub-total 217,439 – 101,338 101,338 Bill & MElinDa GaTES FOUnDaTiOn U.S. – africa connections: a Workshop to Explore Basic Science Research apr–09 Jan–10 82,500 40,830 319 41,150 collaborations on agricultural Development Scientific Technical Writing workshop aug–09 Jan–10 149,615 34,338 20,281 54,619 for SSa crop Scientist aRc Workshop and Scientific Technical Mar–10 Dec–10 217,689 – 96,938 96,938 Writing Workshop Support Grant for the development of a Oct–10 Dec–10 75,000 – 152 152 business plan for the Beca ilRi Hub BMG Sub-total 524,804 75,168 117,689 192,857 BiOVERSiTY inTERnaTiOnal ( iPGRi) collective action for the Rehabilitation of Global Public Goods in the cGiaR Jan–07 Jan–10 390,853 421,241 (31,806) 389,435 Genetic Resources System: Phase 2 Joint appointment of associate Scientist, aug–07 Dec–10 105,000 64,812 47,099 111,911 Genebank Management ilac learning laboratory Meeting, Jul–09 Jan–10 28,224 19,374 2,547 21,921 nairobi, 21–25 September 2009 ilac & GFaR sponsored Partnership Forum meeting to be held at the Sarova Jan–10 May–10 76,479 – 65,603 65,603 Panafric Hotel (T.B.c) in nairobi from 3 to 4 February 2010 cGiaR icT/KM Program: coordination apr–10 Dec–10 90,147 – 71,211 71,211 of cGiaR ciaRD/aaa activities africa agriculture GiS Week 2010 Jun–10 Jun–10 24,583 – 25,027 25,027 icT–KM Progm–support Biodivervisty Jun–10 Dec–10 27,555 – 26,872 26,872 Financial REPORT 2010 58 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total Part of the World Bank funded project ‘collective action for Rehabilitation Jan–07 Jan–10 40,000 37,277 2,750 40,027 of Global Public Goods in the cGiaR Genetic Resources System: Phase 2’ Smallholder Dairy Project, Kenya Sep–08 Dec–10 21,581 – 12,870 BiOVERSiTY Sub-total 804,422 542,704 222,173 752,007 BiOTEcHnOlOGY anD BiOlOGical SciEncES RESEaRcH cOUncil (BBSRc) Understanding the basis of strain Mar–10 Feb–13 647,411 – 78,449 78,449 restricted immunity to Theileria parva Reducing the impact of infectious diseases on village poultry production Sep–10 aug–14 291,877 – 979 979 in Ethiopia BBS Sub-total 939,288 – 79,428 79,428 cOMMERcial aGRicUlTURal DEVElOPMEnT PROJEcT Study tour of Kenya & Uganda Dairy Oct–10 nov–10 66,633 – 37,912 37,912 hub sites caDP Sub-total 66,633 – 37,912 37,912 cOnSUlTaTiVE GROUP On inTERnaTiOnal aGRicUlTURal RESEaRcH (cGiaR) Drivers of crop livestock System change Oct–07 Jan–10 166,000 145,880 20,120 166,000 Optimizing livelihood and environmental benefits from crop residues in smallholder crop—livestock Jan–10 Dec–11 245,950 – 80,872 80,872 system in sub-Saharan africa and South asia regional case study acquatic Research Management 219,300 111,306 111,306 Programme fund cGiaR Sub-total 631,250 145,880 212,298 358,178 cHina – caaS–ilRi Joint lab & FGR Jan–08 Dec–10 130,248 116,482 7,386 123,868 caaS–ilRi – Young Scientist Training – Weiye chen Oct–10 Dec–10 20,000 – 5,029 5,029 cHn Sub-total 150,248 116,482 12,415 128,897 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 59 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total canaDa (ciDa) improvement of Productivity and Market apr–04 Mar–10 15,853,659 12,406,805 2,965,444 15,372,249 Success of Ethiopian Farmers (iPMS) centre for excellence in biosciences for Jan–07 Mar–10 21,675,000 21,480,035 1,681,643 23,161,678 africa (Beca) ciDa Sub-total 37,528,659 33,886,840 4,647,087 38,533,927 ciRaD livestock marketing and Export Strategy Dec–07 Dec–10 35,847 5,267 4,375 9,642 ciR Sub-total 35,847 5,267 4,375 9,642 ciMMYT—international Maize and Wheat improvement center Optimizing livelihood and environmental benefits from crop residues in smallholder crop–livestock Jan–10 Dec–11 50,000 – 16,250 16,250 system in sub–Saharan africa and South asia regional case study ciMMYT Sub-total 50,000 – 16,250 16,250 cOMMOn WEalTH SciEnTiFic anD inDUSTRial RESEaRcH ORGaniZaTiOn (cSiRO/ausaiD)) african food security initiative pillar one apr–10 Dec–10 232,840 – 122,355 122,355 inception phase improving the competitiveness of Pig Producers in an adjusting Vietnam Dec–10 Jun–13 10,018,317 – – – Market cSi Sub-total 10,251,157 – 122,355 122,355 cOMaRT FOUnDaTiOn (cMF) Strengthening capacities for community based livestock health service delivery apr–07 Mar–10 356,122 213,244 60,877 274,121 in the Ghibe Valley cOMaRT Sub-total 356,122 213,244 60,877 274,121 cORaF/WEcaRD Building livelihoods resilience to alleviate poverty in the semi arid areas Jan–10 Jun–13 43,648 40 42,597 42,637 of West africa cORaF Sub-total 43,648 40 42,597 42,637 cORnEll UniVERSiTY index–Based livestock insurance; adaptation and innovations for Oct–10 Sep–14 477,938 – 7,824 7,824 Ethiopia– Subaward no.62088–9468 cORn Sub-total 477,938 – 7,824 7,824 cTa agknowledge africa conference 18 – 21 October 2010, addis ababa Sep–10 Dec–10 21,328 – 12,255 12,255 cTa Sub-total 21,328 – 12,255 12,255 Financial REPORT 2010 60 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total GERMan acaDEMic EXcHanGE SERVicE (DaaD) DaaD in–Region scholarships for the academic years 2008–2011 Sep–08 Sep–11 246,000 1,711 112,530 114,241 DaaD Sub-total 246,000 1,711 112,530 114,241 DEPaRTMEnT FOR inTERnaTiOnal DEVElOPMEnT (DFiD), UK Evaluation of effects of plant diseases on the yield and nutritive value of crop residues dairy production on the apr–04 Jan–10 46,395 32,330 14,076 46,406 Deccan Plateau in india Development of a rapid and simple serological test for surveys of human infective trypanosome in the livestock Jan–07 Dec–10 2,821,017 2,206,556 267,763 2,474,319 and animal reservoir index based livestock insurance project Sep–09 Dec–10 436,535 33,458 205,600 239,057 Zoonoses – Wildlife / livestock interactions aug–10 Feb–11 64,154 – 14,484 14,484 DFiD Sub-total 3,368,101 2,272,344 501,923 2,774,267 EUROPEan DEVElOPMEnT FUnD (EDF) a post disaster assessment study under the Food Facility Dci–FOOD done in Kenya Feb–10 May–10 153,626 – 153,626 153,626 Quantifying Weather and climate impacts on Health in Developing countires—QWeci Feb–10 Jul–13 406,617 – 51,890 51,890 EDF Sub-total 560,243 – 205,516 205,516 EUROPEan aSSOciaTiOn OF DEVElOPMEnT RESEaRcH anD TRaininG inSTiTUTE (EaDi) agKnowledge africa: Sharing Knowledge on agricultural and Rural Development in africa Jul–10 Dec–10 69,835 – 69,835 69,835 EaDi Sub-total 69,835 – 69,835 69,835 EMPRESa BRaSilEiRia DE PESQUiSa aGROPEcUaRia (EMBRaPa) Funding for specialized consultancy services and training for technicians from Brazil agricultural Research System Jan–04 Jan–10 39,036 21,937 (750) 21,187 EMBRaPa Sub-total 39,036 21,937 (750) 21,187 GOVERnMEnT OF aSSaM comprehensive Study of the Dairy Sector of assam–aSSaM institute of Management Dec–05 Feb–10 140,973 148,125 (16,140) 131,984 aRi Sub-total 140,973 148,125 (16,140) 131,984 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 61 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total inia, SPain Development of new diagnostic assays and epidemiological surveillance of viral pathogens of livestock in africa Jul–07 Jun–10 600,000 513,167 87,928 601,096 Evaluating and controlling the risk of african Swine Fever in the EU (aSFRiSK) nov–08 Dec–10 141,534 62,420 34,920 97,341 Dynamics, Diversity and Stakeholder Perceptions of aSF in Different Epidemiological Situations in Uganda: Jun–09 Jun–11 256,558 – 12,786 12,786 The Wild Pig/Tick/livestock interface and the Peri–Urban non–sylvatic cycle of aSF Virus Transmission ESP Sub-total 998,092 575,587 135,634 711,222 FOOD anD aGRicUlTURal ORGaniZaTiOn OF THE UniTED naTiOnS (FaO) GEF Medium sized project “novel form of livestock and wildlife integration adjacent to protected areas in africa— Tanzania” Sep–05 Jan–10 110,000 109,556 443 109,998 Developing global, one Kilometer resolution GiS maps of livestock production systems nov–06 Jan–10 40,000 39,305 666 39,970 Molecular characterization study of local poultry populations in cambodia, Egypt, laos, Uganda and Vietnam Dec ‘07 Jan ‘09 49,500 14,850 34,683 49,533 Strenghtening avian influenza Detection and Response (SaiDR )—Second Year May–09 Jun–10 89,375 45,559 43,816 89,375 Support to HPai PDS in Kenya, United Republic of Tanzania and The Sudan May–09 Oct–09 283,580 85,072 182,147 267,219 Strengthening avian influenza Detection and Response apr–10 Sep–10 97,064 – 97,065 97,065 Pastoral Drought Management (PDM) Decision Support Tool Jul–10 nov–10 110,000 – 107,656 107,656 FaO Sub-total 779,519 294,341 466,475 760,816 FORD FOUnDaTiOn increasing Benefits to Women from livestock and livestock Markets Dec–09 May–11 61,254 – 38,881 38,881 FFD Sub-total 61,254 – 38,881 38,881 THE FOUnDaTiOn FOR innOVaTiVE nEW DiaGnOSTicS laboratory evaluation of the accuracy of HaT prototype tests from standard diagnostics Jul–10 Dec–11 12,334 – 3,429 3,429 FinD Sub-total 12,334 – 3,429 3,429 GalVMED lyophilisation of East coast Fever infection and Treatment Method May–10 aug–10 18,394 – 18,354 18,354 GalV Sub-total 18,394 – 18,354 18,354 Financial REPORT 2010 62 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total GOVERnMEnT OF iTalY Protein identification of Mycoplasma Mycoides Subsp Mycoides Sc antigen Jul–09 Jul–11 60,683 40 15,784 15,824 Spectrum iZS Sub-total 60,683 40 15,784 15,824 GlOBal EnViROnMEnT FaciliTY (GEF) Sustainable Management of Globally Significant Endemic Ruminant livestock of West africa Dec ‘07 nov ‘13 3,699,000 1,140,916 501,721 1,642,637 Development and application of Decision–Support Tools to conserve and Sustainably Use Genetic Diversity in indigenous livestock and Wild Relatives Mar–09 Mar–14 1,982,770 159,697 314,606 474,303 GEF Sub-total 5,681,770 1,300,613 816,327 2,116,940 GlOBal cROP DiVERSiTY TRUST long term funding of ex situ collections of germplasm Dec–07 Dec–10 244,832 132,356 98,660 231,016 lTG Sub-total 244,832 132,356 98,660 231,016 GESEllScHaFT FüR TEcHniScHE ZUSaMMEnaRBEiT (GTZ), GERManY improving the value of maize as a livestock feed and to enhance the livelihoods of maize–livestock farmers in East africa Mar–05 Jan–10 1,396,826 1,308,615 3,857 1,312,472 Preventing and containing Trypanocide Resistance in the cotton Zone of West africa Sep–06 Sep–10 1,347,536 905,818 339,152 1,244,970 Safe food, fair food: Building capacity to improve the safety of animal-source foods and ensure continued markets access for poor farmers in sub-Saharan africa Jan–08 Jun–11 1,559,595 687,936 164,879 852,816 Supporting the vulnerable:increasing the adaptive capacity of agro pastorolists to climatic change in West and Southern africa using a Transdisciplinary research approach May–08 apr–11 1,353,033 473,307 276,175 749,481 Enhanced control of cBPP in Sub Saharan africa through development of better diagnostics and vaccines May–10 apr–13 1,635,769 – 161,877 161,877 Generating a framework for strategic improvement and adoption of superior dual–purpose (groundnut) cultivars in mixed crop Mar–10 aug–11 81,652 – 21,487 21,487 Mutual learning of livestock Keepers and Scientists for adaptation to climate change in Pastoral areas apr–10 Mar–12 26,131 – 27 27 GTZ Sub-total 7,400,542 3,375,676 967,453 4,343,128 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 63 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total UniVERSiTY OF GUElPH improved pig production and Health in May–07 Jan–10 119,237 110,848 8,389 119,237 western Kenya GUE Sub-total 119,237 110,848 8,389 119,237 HEiFER inTERnaTiOnal, USa a system to cost effectively create a continous supply of F1 heifers via sexed Jul–06 Jun–11 249,988 889,497 105,158 994,656 embryos East africa Dairy Development (EaDD) Dec–07 Dec–11 2,920,774 768,205 485,716 1,253,921 HEi Sb–total 3,170,762 1,657,702 590,874 2,248,577 inTERnaTiOnal aTOMic EnERGY aGEncY (iaEa), aUSTRia Student Training Dec–04 Jan–10 61,153 78,655 6,648 85,303 Sonia Marciel Fellowship with iaEa Oct–10 Dec–10 3,175 – 470 470 iaEa Sub-total 64,328 78,655 7,118 85,773 inDian cOUncil OF aGRicUlTURal RESEaRcH (icaR) impact of Trade Policy Reforms and Food Safety Standards on Processed Food Exports from india Sep–06 Jan–10 46,755 46,218 536 46,755 icaR Sub-total 46,755 46,218 536 46,755 inTERnaTiOnal cEnTRE FOR aGRicUlTURal RESEaRcH in DRY aREaS (icaRDa) Establishment of Global crop register for forages Jun–08 Mar–10 90,000 79,758 8,362 88,120 icaRDa Sub-total 90,000 79,758 8,362 88,120 inTERnaTiOnal cEnTRE OF inSEcT PHYSical EcOlOGY (iciPE) an intergrated Response System for Emerging infectious Diseases in East africa Dec–08 Dec–12 2,532,314 162,622 836,039 998,661 iciPE Sub-total 2,532,314 162,622 836,039 998,661 inTERnaTiOnal cROP RESEaRcH inSTiTUTE FOR SEMi–aRiD TROPicS (icRiSaT) improving Market Participation by Small Scale livestock Producers Jan–07 Jun–10 574,534 357,685 36,310 393,995 Managing uncertainty: innovation systems for coping with climate variability and change aug–07 Jul–10 139,838 126,530 14,834 141,364 Financial REPORT 2010 64 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total improving Market Participation by Small Scale livestock Producers Dca Tripartite agreement Jul–07 Dec–09 108,902 134,974 37,889 172,863 Genetically enhanced pearl millet with high grain iron density for improved human nutrition in india Jul–09 Dec–09 30,000 414 12,699 13,113 icS Sub-total 853,274 619,602 101,733 721,335 inTERnaTiOnal DEVElOPMEnT RESEaRcH cEnTRE (iDRc), canaDa Ecosystem approaches to the better Management of Zoonotic Emerging infectious Diseases (EiD) in south East asia Feb–08 apr–12 4,991,478 471,026 592,077 1,063,103 ausaid—EcoHealth partnership Jun–08 Jan–10 9,320 7,924 1,624 9,548 increasing Benefits to Women from livestock and livestock Markets Mar–10 Mar–11 28,523 – 11,865 11,865 iDRc Sub-total 5,029,321 478,950 605,567 1,084,517 inTERnaTiOnal FUnD FOR aGRicUlTURal DEVElOPMEnT (iFaD) Enhancing livelihoods of Poor livestock Keepers through increased Use of Fodder Feb–07 Dec–10 1,600,000 855,461 319,371 1,174,832 Small ruminant value chain as platforms for reducing poverty and increasing food security in dryland areas of india and Mozambique aug–10 Dec–12 2,677,443 – 1,727 1,727 agknowledge africa Share—iFaD Jul–10 Dec–10 47,385 – 44,488 44,488 iFaD Sub-total 4,324,828 855,461 365,586 1,221,047 inTERnaTiOnal FUnD FOR aGRicUlTURal RESEaRcH (iFaR) iFaR Fellowship for Ms neena amatyagorkhali Jun–09 Jan–10 11,000 – 11,000 11,000 iFaR Sub-total 11,000 – 11,000 11,000 inTERnaTiOnal FERTiliZER DEVElOPMEnT cEnTER (iFDc) Multi–stakeholder approach to linking Technical Options, policy and Market access for improved land Productivity in the northern Guinea Savanna Zone apr–08 Mar–09 52,000 24,699 8,417 33,116 iFDc Sub-total 52,000 24,699 8,417 33,116 inTERnaTiOnal FOOD POlicY RESEaRcH inSTiTUTE (iFPRi) Getting more from livestock: the potential of collective action to improve the quality of animal source foods informally marketed by women Jun–07 Feb–10 123,000 80,652 37,857 118,509 The Establishment of the Regional Strategic analysis and Knowledge Support System in Eastern and central africa Jan–07 Jan–10 995,433 726,264 235,481 961,745 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 65 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total avian influenza in East and West africa ‘Modeling the Spatial spread, evaluating the cost effectiveness of alternative control strategies and assessing the impact of the poor’ aug–07 Mar–10 1,840,826 1,083,272 387,895 1,471,167 caPRi capacity Strengthening and Regionalization activities Jan–09 Jan–10 56,000 32,660 1,190 33,850 climate change adaptation for Smallholder agriculture in Kenya apr–09 apr–10 80,000 48,811 7,079 55,890 Securing Women’s access to livestock assets and income in Kenya and Mozambique Jul–09 Dec–11 146,902 7,027 51,987 59,014 live cattle value chains diagnostic study. nov–09 May–10 27,372 662 26,702 27,364 Mario Herrero consultancy Dec–09 Jan–10 13,220 – 13,220 13,220 Global Futures Project Dec–09 Jun–12 375,000 – 63,579 63,579 Sharpen climate change focus in relation to the research being conducted under the Global Futures Project by enhancing the ability of the regional partners/ analysts to realistically model the trade- offs and consequences and better inform aug–10 Dec–10 20,000 – 1,370 1,370 a wide range of people inception Wkshp–Evaluating impact nov–10 nov–10 35,000 – 22,941 22,941 Planning Grant for MP4 (ilRi/iFPRi) nov–10 220,483 – 37,336 37,336 iFPRi Sub-total 3,933,236 1,979,347 886,638 2,865,985 inTERnaTiOnal inSTiTUTE OF TROPical aGRicUlTURE (iiTa) FaRa–KKM Pilot learning sites Jul–08 Jan–10 35,800 29,717 9,178 38,894 iiTa–ilRi for KMM under cORaF/ WacRD: Output 2; Market driven, integrated production practices promoted to enhance cereal/legumes systems productivity May–10 nov–10 14,000 – 14,000 14,000 Optimizing livelihood and environmental benefits from crop residues in smallholder crop–livestock system in sub-Saharan africa and South asia regional case study aug–10 Dec–11 62,670 – – – iiTa Sub-total 112,470 29,717 23,178 52,894 – inSTiTUT naTiOnal DE la REcHERcHE aGROnOMiQUE DU niGER (inRan) – Sahel Task Force Sub–Saharan africa challenge Program Jun–08 Jan–10 47,850 21,097 11,625 32,723 inRan Sub-total 47,850 21,097 11,625 32,723 Financial REPORT 2010 66 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total inTERnaTiOnal laBOUR ORGaniZaTiOn (ilO) Microinsurance innovation Facility Piloting of index Based livestock insurance in Marsabit: Building delivery infrastructure and Fuelling Knowledge based adoption Dec–09 Feb–11 205,000 – 117,701 117,701 ilO Sub-total 205,000 – 117,701 117,701 inTERnaTiOnal RicE RESEaRcH inSTiTUTE Better livelihoods through improvement of livestock production and marketing in north East india Mar–08 Jun–10 110,000 79,011 23,806 102,817 cereal System initiative for South asia (cSiSa) Dec–08 nov–11 1,287,548 378,138 200,128 578,266 iRRi Sub-total 1,397,548 457,149 223,934 681,083 inTERnaTiOnal WaTER ManaGEMEnT inSTiTUTE (iWMi) improving water productivity of crop– livestock systems of the sub-Saharan africa apr–07 Jun–10 378,844 189,493 37,119 226,612 iWMi Sub-total 378,844 189,493 37,119 226,612 KEnYa Study of Marketing, Processing and value adding of camel milk and meat products in the aSal region of Kenya Feb–06 Jan–10 120,000 72,164 9,339 81,504 consultancy on the Reconstruction of Baseline information for the arid lands Resource Management Project and Execution of the alRMP ii impact Evaluation—Office of the Prime Minister Mar–09 May–10 285,240 204,691 94,345 299,036 KEnYa Sub-total 405,240 276,855 103,684 380,539 KOREa comparison of genetic characters among indigenous livestock Jan–02 Jun–10 140,000 136,253 3,747 140,000 RDa Seconded Scienstist Dr Kim chong Dae Feb–07 Dec–11 160,000 94,269 37,412 131,681 Functional gene diversity for disease resistance in chicken Jan–07 Dec–10 120,000 11,041 10,103 21,144 RDa Seconded Scienstist Jan–10 Dec–10 97,410 51,438 32,195 83,633 KOREa Sub-total 517,410 293,001 83,457 376,458 MERiDian inSTiTUTE innovations for agricultural Value chains in africa May–09 apr–10 17,600 2,749 13,124 15,873 MEiF Sub-total 17,600 2,749 13,124 15,873 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 67 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total McKniGHT FOUnDaTiOn The role of endophytes for the control of bacterial wilt of enset (Enset ventricosum)and related musa species Oct–10 Sep–13 68,900 – 33 33 McK Sub-total 68,900 – 33 33 MicHiGan STaTE UniVERSiTY Dynamic interactions among People, livestock and Savanna Ecosystems Under climate change aug–07 Jan–11 215,283 151,553 132,581 284,134 Dynamic ecological simulation model of tsetse transmitted trypanosmosis in Kenya Sep–07 aug–11 116,642 67,078 35,845 102,923 MSU Sub-total 331,925 218,630 168,426 387,056 naTiOnal aGRicUlTURal innOVaTiOn PROJEcT livelihood improvement and Empowerment of Rural Poor through Sustainable Farming systems in north East india aug–07 Dec–11 87,942 27,732 8,565 36,297 naP Sub-total 87,942 27,732 8,565 36,297 naTiOnal SciEncE FOUnDaTiOn (nEW YORK UniVERSiTY) BREaD: Basic mechanisms underlying species specific to Trypanosome Resistance May–10 apr–11 202,691 – 14,260 14,260 nYU Sub-total 202,691 – 14,260 14,260 naTURal RESOURcE inTERnaTiOnal liMiTED Knowledge to action: enhancing traditional dairy value chains Jul–08 Jun–11 601,987 127,203 55,570 182,772 nRi Sub-total 601,987 127,203 55,570 182,772 naTiOnal WilDliFE FEDERaTiOn Stovepipes Project nairobi/Tsavo/ Mombasa aug–10 Jul–11 119,830 – 38,227 38,227 nWF Sub-total 119,830 – 38,227 38,227 OPEc FUnD FOR inTERnaTiOnal DEVElOPMEnT (OFiD), aUSTRia livestock intensification: investigating impacts on livelihoods in diary value chains in india and Ethiopia Jul–09 Jun–10 100,000 16,065 74,270 90,335 OPEc Sub-total 100,000 16,065 74,270 90,335 Financial REPORT 2010 68 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total ROcKEFEllER FOUnDaTiOn One medicine approaches to participatory epidemiology: achieving early disease detection by orienting public health goods to stakeholder priorities aug–08 Jun–11 297,100 158,402 118,725 277,127 ROc Sub-total 297,100 158,402 118,725 277,127 SOcial, TEcHnOlOGical anD EnViROnMEnTal PaTHWaYS TO SUSTainaBiliTY cEnTRE Dynamic Drivers of Disease; interactions of livestock/Wildlife populations, Poverty and Environmental change in africa Jan–10 Jan–10 9,720 – 5,055 5,055 STEP Sub-total 9,720 – 5,055 5,055 SWiSS aGEncY FOR DEVElOPMEnT anD cOOPERaTiOn Reducing the risk to the poor of zoonotic diseases Feb–06 Jan–10 304,530 229,148 58,567 287,715 SDc Sub-total 304,530 229,148 58,567 287,715 SWiSS TROPical anD PUBlic HEalTH inSTiTUTE (Swiss TPS) Enhancing prevention and control of Rift Valley Fever in East africa by intersectoral assessment of control Options Mar–09 Feb–12 64,975 – 12,465 12,465 Swiss TPS Sub-total 64,975 – 12,465 12,465 SWEDEn Funds for PhD student Emelie Zonabend Jan–09 Dec–11 24,525 3,460 21,065 24,525 Genetic Resources and intellectual Property (GRiP 2010) Phase iii nairobi Kenya—Svalof consulting institute, Sweden Oct–10 Dec–10 31,349 – 27,947 27,947 SWEDEn Sub-total 55,874 3,460 49,012 52,472 SWEDiSH inTERnaTiOnal DEVElOPMEnT cOOPERaTiOn (SiDa) Support to the Bio–Resources innovation Research network for Eastern african Development (Bio–innovate) During 2010–2014 Jan–10 Dec–14 12,000,000 – 266,321 266,321 SiDa Sub-total 12,000,000 – 266,321 266,321 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 69 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total SYnGEnTa FOUnDaTiOn Syngenta Foundation for Sustainable agriculture (SFSa) – Biosciences East and central africa (Beca Hub) cooperation apr–09 Mar–14 5,000,000 750,157 1,027,430 1,777,587 SYn Sub-total 5,000,000 750,157 1,027,430 1,777,587 SWiTZERlanD Exploration of the effects of anti-tick vaccines on transmission of Theileria parva, the causative agent of EcF Oct–08 Sep–11 173,150 79,079 94,071 173,150 Zil Sub-total 173,150 79,079 94,071 173,150 SiR RaTan TaTa TRUST new Pathways to Tackle Rural Poverty in india: The livestock Way apr–09 apr–10 156,551 46,493 3,065 49,558 SRT Sub-total 156,551 46,493 3,065 49,558 TERRa nUOVa improvement and diversification of Somalia livestock Trade and Marketing Feb–05 Jan–10 238,543 213,514 25,029 238,543 TEn Sub-total 238,543 213,514 25,029 238,543 TEXaS a & M UniVERSiTY (TaMU) Delivering systematic information on the spatial distribution and production environment descriptors of poultry farms in Ethiopia aimed at potential avian Flu response and pandemic preparedness Sep–08 Dec–10 52,530 7,274 29,046 36,320 TaMU Sub-total 52,530 7,274 29,046 36,320 TROcaiRE (EU) Building resilient pastoralist communities apr–09 Mar–10 55,464 – 20,749 20,749 TRO Sub-total 55,464 – 20,749 20,749 TUFF UniVERSiTY a Thermostable Measles Vaccine Sep–08 Dec–10 16,804 – 16,804 16,804 TaMU Sub-total 16,804 – 16,804 16,804 Financial REPORT 2010 70 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total UniVERSiTY OF cOOPEnHaGEn University of coopenhagen aug–09 aug–12 3,189,538 94,931 685,297 780,228 Phils contract with coopenhagen Dec–09 nov–12 2,770,758 – 313,272 313,272 Service agreement between University of coopenhagen and ilRi regarding pass through funds from ciDa Grant apr–10 Mar–13 134,880 – 33,678 33,678 Grant agreement for Regional Facilitators Feb–10 Jan–13 8,046,000 – 296,205 296,205 ccaF Sub-total 14,141,176 94,931 1,328,451 1,423,382 UniVERSiTY OF caliFORnia index Based livestock insurance support— Sarah (Focus Group Discussion) Sep–10 Sep–10 5,312 – 4,280 4,280 UOc Sub-total 5,312 – 4,280 4,280 UniVERSiTY OF cORnEll index–Based livestock insurance; adaptation and innovations for Ethiopia— Subaward no. 62088–9468 477,938 – 7,824 7,824 cORn Sub-total 477,938 – 7,824 7,824 UniVERSiTY OF EDinBURGH Measuring, monitoring and mitigating drivers of the emergence of zoonotic food borne diseases May–10 Feb–11 24,550 – 6,980 6,980 UOE Sub-total 24,550 – 6,980 6,980 UniVERSiTY OF nEW EnGlanD Global development grant no. OPPGD640 germplasm for dairy development in East africa: Phase 1: identifying appropriate germplasm and delivery mechanisms Sep–10 Mar–13 1,184,577 – 91,400 91,400 UnE Sub-total 1,184,577 – 91,400 91,400 UniVERSiTY OF SYRacUSE – Hunger Safety net Program apr–08 Jan–10 53,296 35,238 11,424 46,662 SYR Sub-total 53,296 35,238 11,424 46,662 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 71 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total UniVERSiTY OF VERMOnT BREaD: a modern approach towards developing vaccines for critical bovine diseases impacting smallholder farmers in sub–Saharan africa May–10 apr–11 154,116 – 2,455 2,455 UOV Sub-total 154,116 – 2,455 2,455 UniTED STaTES aGEncY FOR inTERnaTiOnal DEVElOPMEnT (USaiD) Operational Research in indonesia for More Effective control of Highly Pathogenic avian influenza aug–07 Jan–10 1,092,712 991,773 75,160 1,066,933 Strategic analysis knowledge support systems (SaKSS) node in Eastern and central africa (Phase 2) Jan–07 Dec–10 1,200,00 846,664 28,461 875,125 Participatory approaches to disease surveillance in africa—(avian influenza) Oct–07 Sep–10 4,934,065 3,731,021 647,584 4,378,606 Participatory approaches to disease surveillance in africa—(africa animal Health Systems (PaDSa–aH) Oct–07 Sep–10 990,000 630,306 170,926 801,233 Scaling up ilRi/Regional Strategic analysis and Knowledge Support System analysis and Knowledge Management activities Oct–09 Dec–10 661,000 26,609 559,075 585,684 Scaling up ilRi/Regional Strategic analysis and Knowledge Support System analysis and Knowledge Management activities Oct–10 Sep–11 1,000,000 – 43,394 43,394 Mozambique agricultural Research and innovation Platform–ilRi component (Mobilization of livestock research and extension for food security and poverty alleviation in Mozambique) Oct–09 Sep–12 450,916 – 88,235 88,235 USa Sub-total 9,128,693 6,226,374 1,612,836 7,839,210 USRD international livestock Research institute Training Workshop Sep–09 nov–10 7,800 1,626 3,599 5,225 USRD Sub-total 7,800 1,626 3,599 5,225 UniTED STaTES DEPaRTMEnT OF aGRicUlTURE identify and test additional tick antigens for use in transaction based/and or subunit vaccines Jan–06 Jan–11 300,000 152,506 118,349 270,855 international cooperation in animal Diseases Sep–08 Sep–11 121,000 16,051 7,869 23,920 ilRi livestock Risk assesment Seminar Oct. 26–30, 2009 Sep–09 Dec–12 15,810 10,272 11,891 22,163 USDa Sub-total 436,810 178,829 138,109 316,938 Financial REPORT 2010 72 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total VETERinaiRES SanS FROnTiERES Vaccine Stabilate Diluent Preparation for EcF immunizations in Tanzania Jan–06 Jan–10 711,053 569,262 141,792 711,053 VSF–B Sub-total 711,053 569,262 141,792 711,053 WORlD aGROFORESTRY cEnTRE (icRaF) icT ilRi/icRaF Jan–08 Dec–10 1,310,504 914,106 396,398 1,310,504 Support to Mrs. Patricia aboe’s Research on Baseline and Diagnostic Surveys for Monitoring, Evaluation, and impact assessment (M&E&i) for livestock Research Jan–10 aug–10 8,251 – 8,251 8,251 icRaF Sub-total 1,318,755 914,106 404,648 1,318,754 WORlD BanK information and communication Technology / Global Public Goods (icT/ GPG nov–04 Jan–10 725,400 469,958 69,975 539,933 Paper on WDR2010—climate change and livestock aug–08 Jun–10 15,000 9,550 5,450 15,000 Pro–poor livestock Marketing: investment Options for improved Market access and Performance nov–08 Dec–10 300,000 129,042 86,282 215,324 index–based insurance Products for Managing Risks in East africa Oct–08 Jun–10 259,835 195,485 73,622 269,106 livestock in africa: improving data for better policies Jan–10 Dec–12 410,346 – 81,103 81,103 Genesis Reversed: climate change impacts on agricultural and livelihood Systems in Mixed crop livestock Systems of africa Mar–10 Jan–11 134,000 – 137,449 137,449 index–based insurance Products for Managing climate Risks in East africa Oct–10 Jun–12 238,446 – 4,254 4,254 WB Sub-total 2,083,027 804,035 458,135 1,262,170 WEllcOME TRUST an integrated approach for the development of sustainable methods to contol theileriosis apr–05 Mar–10 133,840 107,891 22,148 130,038 Bovine Tuberculosis in the developing world apr–05 apr–10 473,102 343,080 716 343,796 a genomics approach to understanding the immunopathology of contagious bovine pleuropneumonia (cBPP) Jun–05 May–10 1,274,290 954,125 57,939 1,012,064 infection dynamics and disease burden of East african cattle Oct–06 Oct–12 1,496,111 486,017 265,654 751,671 Epidemiology of zoonoses amongst livestock and their keepers in East africa Jan–09 Dec–12 264,170 7,675 131,892 139,567 WEl Sub-total 3,641,513 1,898,787 478,349 2,377,135 inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 73 Exhibit ii (continued) Schedule of project and program restricted grant revenue for the year ended 31 December 2010—currency—US dollars cumulative to Expenditure Donor and Project Start date End date Grant pledge 2009 2010 Total WORlD RESOURcES inSTiTUTE Development of prototype tools to support resources mapping, land use development and planning in Kenya’s arid and semi–arid lands Jul–10 Feb–11 456,808 – 169,933 169,933 WRi Sub-total 456,808 – 169,933 169,933 Sub-total : B 154,089,618 65,321,778 21,466,031 86,774,938 – Restricted – Temporary Total : ( a + B) 168,915,548 75,718,127 23,373,952 99,079,209 c: Restricted – Temporary – challenge Programs (cP) inTERnaTiOnal WaTER ManaGEMEnT inSTiTUTE (iWMi) nile Basin Focal Project Feb–08 Jan–10 90,552 67,553 5,000 72,553 Enhancing livelihoods of Poor livestock Keepers through increased Use of Fodder Mar–08 apr–10 111,447 87,200 12,120 99,320 cRP55 Regional Stakeholder (RS) meetings Jul–10 Jul–10 8,000 7,668 7,668 nile Project: To improve rural livelihoods and their resilience through a landscape approach to rainwater management nile Project 2: On integrated rainwater management strategies—technologies, institutions and policies Mar–10 Dec–13 423,923 – 45,851 45,851 nile Project 4: assessing and anticipating consequences of innovations Mar–10 Dec–13 148,774 – 2,032 2,032 iWMi Sub-total 782,696 154,753 72,671 227,424 cHallEnGE PROGRaM On WaTER anD FOOD (cPWF) a landscape approach to rainwater management in Ethiopia; nile Project 5 On coordination and multi–stakeholder platforms Mar–10 Dec–13 1,400,000 – 239,039 239,039 a landscape approach to rainwater management in Ethiopia; nile Project 3 On Targeting and Scaling out Mar–10 Feb–12 1,000,000 – 107,355 107,355 Project Vl2: integrated management of rainwater for crop–livestock agrosystems Oct–10 Dec–13 1,225,000 – 33,472 33,472 cPW Sub-total 3,625,000 – 379,867 379,867 Sub-total : c 4,407,696 154,753 452,538 607,291 Financial REPORT 2010 74 Exhibit iii Schedule of Direct and indirect cost rates for the year ended 31 December 2010 (currency—US dollars) STaTEMEnT OF OPERaTinG EXPEnSES FOR THE YEaR EnDED 31 DEcEMBER 2010 2010 2009 ‘000 ‘000 Direct Operating Expenses Research 34,679 45,239 Research Support 3,724 3,217 Sub-total 38,403 48,456 less: Overhead recovery1 (2,142) (2,490) Total 36,261 45,966 indirect Operating Expenses Management 3,039 1,757 Operations 3,391 3,549 common Sustenance Services 1,748 1,418 Total 8,178 6,724 Total Operating Expenses 44,439 52,690 cost Ratios Direct/Total 82% 87% indirect/Total 18% 13% indirect/Direct 23% 15% 1 The deduction of the overhead recovery does not result in a NET amount but rather it results in the correct gross amount of the direct costs. This is because the project costs (normally reported as direct project costs) include an amount of indirect costs that a donor of restricted projects allows a Center to recover. As this is not a real direct cost it should be removed. This is always the amount shown as recovery in the Statement of Activity (SOA). inTERnaTiOnal liVESTOcK RESEaRcH inSTiTUTE 75 Exhibit iV Schedule of furnishings and equipment for the year ended 31 December 2010 (currency – US dollars – ILRI) Balance at Unrestricted Restricted Beca Balance at 01.01.10 additions additions additions adjustments Disposals 31–Dec–10 cOST laboratory and scientific equipment 9,107 116 361 – – (1,839) 7,745 computers 4,697 353 17 – – (756) 4,311 Office, furniture and other equipment 2,376 86 20 – – (485) 1,997 Motor Vehicles 2,867 120 81 – – (98) 2,970 Operating/Heavy Duty equipment 2,597 75 277 – – (792) 2,157 laboratory and scientific equipment— Beca 2,715 – – 110 – – 2,825 computer Equipment—Beca 58 – – 4 – – 62 Office & Furniture Eqpmt—Beca 323 – – 25 – – 348 Motor Vehicles 47 – – – – – 47 Operating/Heavy Duty equipment— Beca 1,929 0 00_ 0 00– 3 _ _ 1,932 TOTal cOST OF FiXED aSSETS 26,716 750 756 142 0 00– (3,970) 24,394 accUMUlaTED DEPREciaTiOn laboratory and scientific equipment 8,814 103 361 – 78 (1,839) 7,517 computers 4,226 293 17 – – (754) 3,782 Office, furniture and other equipment 2,016 128 20 – – (485) 1,679 Motor Vehicles 2,325 162 81 – – (98) 2,470 Operating/Heavy duty equipment 2,520 13 277 – – (776) 2,034 laboratory and scientific equipment— Beca 2,715 – – 110 – – 2,825 computer Equipment—Beca 58 – – 4 – – 62 Office & Furniture Eqpmt—Beca 323 – – 25 – – 348 Motor Vehicles 47 – – – – – 47 Operating/Heavy Duty equipment— Beca 1,929 – – 3 – – 1,932 Small value assets—Beca Other assets—Beca – – – – – – – TOTal acc. DEPRc 24,973 699 756 142 78 (3,952) 22,696 nET BOOK ValUE laboratory and scientific equipment 293 13 – – (78) – 228 computers 471 60 – – – (2) 529 Office and housing furniture and 360 (42) – – – – 318 equipment Motor Vehicles 542 (42) – – – – 500 Operating/Heavy duty equipment 77 62 – – – (16) 123 laboratory and scientific equipment— – – – – – – – Beca computer Equipment—Beca – – – – – – – Office & Furniture Eqmpt—Beca – – – – – – – Motor Vehicles – – – – – – – Operating/Heavy Duty equipment—Beca – – – – – – – TOTal nET BOOK ValUE 1,743 51 – – (78) (18) 1,698 Financial REPORT 2010 Financial Report 2010 International Livestock Research Insitute International Livestock Research Institute PO Box 30709 Nairobi 00100 Kenya www.ilri.org ISBN 92–9146–263–2 Financial Report 2010 International Livestock Research Insitute