Ph ot o: N ei l P al m er /IW M I Financial Statements for the year ended December 31, 2014 Auditors’ Report 1985 2015 FINANCIAL STATEMENTS for the year ended December 31, 2014 INTERNATIONAL WATER MANAGEMENT INSTITUTE CONTENTS Independent Auditors’ Report 1 Statement of the Board Chair 2-3 Statement of the Management’s Responsibilities for Financial Reporting 4 Statement of Financial Position 5 Statement of Activities 6 Statement of Changes in Net Assets 7 Statement of Cash Flows 8 Accounting Policies 9 – 19 Notes to the Financial Statements 20 – 35 Supplementary Information 36 – 48 Financial Statements - 31st December 2014 1 Financial Statements - 31st December 2014 2 Statement of the Board Chair For the Year ended December 31, 2014 In 2014, The International Water Management Institute started implementing its 5 year strategy and adopted a number of change management initiatives to deliver on the outputs and products envisaged in the strategy. These included reorganization of the Institute into new research themes, focusing on the key products that we would like to develop and implementation of a new performance management system to ensure linking of individual goals with that of the Institute. As a lead center for “Water, Land and Ecosystems”, the Institute witnessed an exciting year as we, under the guidance of the Program’s Steering Committee, developed the new Innovation Fund and integrative Focal Region initiative, building on experience from the Challenge Program on Water and Food (CPWF) that was fully integrated in WLE. Under the auspices of the new Integrated Ecosystems Solutions (IES) Flagship, both these initiatives were rapidly rolled out during the course of 2014. Open and competitive calls resulted in over 52 preliminary proposals for Innovation Funding and 284 expressions of interest for Focal Region initiative activities; in total 36 projects were selected within an integrated research design to be funded. These projects comprise a progressive portfolio of new initiatives and, combined, represent a robust and comprehensive program of research that will further the agenda of sustainable intensification of agriculture based on an ecosystems services based approach. The majority of these projects will be led by non-CGIAR partners and each project is obliged to allocate a fixed percentage of funds to other partners, meaning that under the IES flagship, more than 170 different partners will be formally taking part in WLE activities. These will be rolled out over the course of next 2 years and primarily funded from the additional allocation received in early 2014, resulting from acknowledgement of reduced funding to WLE in 2013. The carryover of these funds from 2014 and future funding is therefore critical for the stability and completion of these projects. At Consortium level, the Center Management and Board continued to engage in various initiatives, such as areas related to Governance, financing plan, Strategy and Results Framework and 2nd round of CRPs, resulting in considerable investment of Management’s time. We look forward to the positive outcome of these that we hope will address some of the most pressing issues in the system and bring much needed stability. Financially, the changes to the earlier approved financing plan resulted in lower than expected funding to WLE. This coupled with the Board’s decision to ensure adequate funding to the Innovation Fund and Focal Region initiative, resulted in lower funding allocation to IWMI. However, in 2014, this reduction was offset by carryover funds from 2013 and as such did not significantly affect research delivery. The Institute’s revenue including the windows funding for WLE participating centers was $48.0 million in 2014 as against $47.7 million in 2013. The Institute witnessed another year in the ‘black’ and recorded a surplus thereby increasing its reserves. The Board approved reserve policy in 2014 requires the Institute to maintain a minimum of 105 days of undesignated reserves and our current reserves are around this threshold. The Institute’s liquidity and reserve levels remain above the CGIAR recommended benchmarks. Though IWMI’s financial situation remains stable and its prospects look promising, the Center is not immune to new financial or operational risks. The Institute’s Board of Governors takes an active role in monitoring the Institute’s risk management strategy, not only from the perspective of financial elements, but also with respect to research strategies and issues. The Board has adopted a risk management policy that has been communicated to all staff together with a detailed management guideline. The policy includes a framework by which the Institute’s management identifies, evaluates and prioritizes risks and opportunities across the organization; develops risk mitigation strategies that balance benefits with costs; monitors the implementation of these strategies; and reports, in conjunction with finance & administration staff and internal audit, annually to the full Board, on results. The Board is satisfied that the organization has adopted and implemented a comprehensive risk management system. One of the key risks in the immediate future is the use of carry forward funds from 2014 to the extension phase. The Fund Council’s decision to use “amend and replace” principle – contrary to the Consortium Office understanding - for the extension phase funding came at the end of 2014. Based on the recent communication from the Consortium, we understand that all committed funds will be allowed to be carried forward into the extension phase. Other key external risks going into 2015 relates to the outcome of deliberation on 2nd round Financial Statements - 31st December 2014 3 of CRPs, the uncertainty around the outcome of the Governance issue - in particular the work of Options Team, and the volatile funding environment and its impact on future funding stability. With regards to internal risks, they relate to ensuring ability to respond to the changes within the CG, delivery of research portfolio and various risks pertaining to efficient structure and processes, which are mitigated through an effective internal control system. IWMI invests its funds in line with the policy approved by the Board of Governors and regularly updates the Board on the implementation of the policy. The Board recently reviewed and approved IWMI’s investment and reserve policy. On behalf of the members of the Board, I wish to thank IWMI’s investors and partners for their continued support and commitment to our work. Don Blackmore Chair, IWMI Board of Governors Financial Statements - 31st December 2014 4 Statement of the Management’s Responsibilities for Financial Reporting The accompanying financial statements of the International Water Management Institute (IWMI), for the year ended December 31, 2014, are the responsibility of the management. IWMI’s management also claims responsibility for the substance and objectivity of the information contained therein. IWMI’s financial reporting practices follow the ‘CGIAR Accounting Policies and Reporting Practices Manual – Financial Guidelines Series No. 2’ as amended in February 2006, and the Annual Advisory Note issued by the CGIAR Consortium Office for 2014 financial statements. IWMI maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded, and transactions are properly recorded and executed in accordance with the management’s authorization. A system of reporting within IWMI presents the management with an accurate view of the operations, enabling it to discern risks to the assets or fluctuations in the economic environment of the Institute at an early stage and, at the same time, providing a reliable basis for the financial statements and management reports. The Board of Governors exercises its responsibility for these financial statements through its Finance and Audit Committee. The committee meets regularly with the management and representatives of the external auditors to review matters related to financial reporting, internal controls and auditing. Jeremy Bird Director General Amol Khisty Director, Finance & Administration Financial Statements - 31st December 2014 5 INTERNATIONAL WATER MANAGEMENT INSTITUTE Statement of Financial Position As at December 31, 2014 (In US Dollars ’000) Notes 2014 2013 A S S E T S Current Assets Cash and Cash Equivalents 2 44,600 24,407 Investments 3 155 35 Accounts Receivable: Donors (net of allowance of $47 thousand in 4 3,981 8,949 2014; $41 thousand in 2013) Employees 5 393 427 Other CGIAR Centers 6 97 850 Others (net of allowance of $42 thousand in 7 1,063 1,485 2014; Nil in 2013) Prepaid Expenses 8 328 260 Inventories 9 29 32 Total Current Assets 50,646 36,445 Non-Current Assets Property, Plant and Equipment 10 2,457 1,895 Total Non-current Assets 2,457 1,895 TOTAL ASSETS 53,103 38,340 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable Donors 11 20,806 8,339 Employees 12 1,255 1,123 Other CGIAR Centers 13 3,182 1,860 Others 14 3,801 4,164 Accruals 434 514 Total Current Liabilities 29,478 16,000 Non-Current Liabilities Accounts Payable Employees 15 3,750 3,320 Total Non-Current Liabilities 3,750 3,320 Total Liabilities 33,228 19,320 Net Assets Unrestricted Designated 8,388 5,180 Undesignated 11,487 13,840 Total Net Assets 19,875 19,020 TOTAL LIABILITIES AND NET ASSETS 53,103 38,340 These financial statements were approved on ................................. ..................................................... Director General ..................................................... Director, Finance & Administration The accounting policies on pages 9 to 19, notes on pages 20 to 35 and supplementary information on pages 36 to 48 form an integral part of the financial statements. Financial Statements - 31st December 2014 6 IN TE RN AT IO N A L W AT ER M A N A G EM EN T IN ST IT U TE St at em en t o f A ct iv iti es Fo r th e Ye ar E nd ed D ec em be r 31 , 2 01 4 (In U S D ol la rs ’0 00 ) N ot e 20 14 20 13 R es tr ic te d R es tr ic te d R es tr ic te d R es tr ic te d U nr es tr ic te d C R P N on -C R P To ta l U nr es tr ic te d C R P N on -C R P To ta l R ev en ue a nd G ai ns G ra nt R ev en ue W in do w 1 & 2 - 29 ,8 62 - 29 ,8 62 - 27 ,9 57 - 2 7, 95 7 W in do w 3 - 1, 44 2 2, 47 3 3, 91 5 - 2, 33 9 3, 12 3 5 ,4 62 B ila te ra l - 12 ,5 39 73 8 13 ,2 77 37 12 ,5 47 65 7 1 3, 24 1 To ta l G ra nt R ev en ue - 43 ,8 43 3, 21 1 47 ,0 54 37 42 ,8 43 3, 78 0 4 6, 66 0 O th er R ev en ue a nd G ai ns 16 90 5 - - 90 5 1, 08 5 - - 1 ,0 85 To ta l R ev en ue a nd G ai ns 9 05 43 ,8 43 3, 21 1 47 ,9 59 1, 12 2 42 ,8 43 3, 78 0 4 7, 74 5 Ex pe ns es a nd L os se s R es ea rc h Ex pe ns es 82 24 ,3 25 1, 57 2 25 ,9 79 1, 30 0 19 ,3 46 1, 90 7 2 2, 55 3 C G IA R C ol la bo ra to r Ex pe ns es - 12 ,0 23 - 12 ,0 23 - 10 ,2 03 - 1 0, 20 3 N on -C G IA R C ol la bo ra to r Ex pe ns es - 3, 10 4 1, 21 9 4, 32 3 - 9, 28 1 1 ,3 76 1 0, 65 7 G en er al a nd A dm in is tr at io n Ex pe ns es 4, 77 9 - - 4, 77 9 4, 31 3 - - 4 ,3 13 O th er E xp en se s an d Lo ss es - - - - - - - - Su bt ot al E xp en se s an d Lo ss es 4, 86 1 39 ,4 52 2, 79 1 47 ,1 04 5, 61 3 38 ,8 30 3, 28 3 4 7, 72 6 In di re ct C os t R ec ov er y (4 ,8 11 ) 4, 39 1 42 0 - (4 ,5 10 ) 4, 01 3 49 7 - To ta l E xp en se s an d Lo ss es 17 5 0 4 3, 84 3 3, 21 1 47 ,1 04 1, 10 3 42 ,8 43 3, 78 0 4 7, 72 6 Su rp lu s 85 5 - - 85 5 19 - - 1 9 Th e ac co un tin g po lic ie s on p ag es 9 to 1 9, n ot es o n pa ge s 20 to 3 5 an d su pp le m en ta ry in fo rm at io n on p ag es 3 6 to 4 8 fo rm a n in te gr al p ar t o f t he fi na nc ia l s ta te m en ts . Financial Statements - 31st December 2014 7 IN TE RN AT IO N A L W AT ER M A N A G EM EN T IN ST IT U TE S ta te m en t o f C ha ng es in N et A ss et s Fo r th e Ye ar E nd ed D ec em be r 31 , 2 01 4 (In U S D ol la rs ’0 00 ) U nd es ig na te d D es ig na te d TO TA L Pr op er ty , C ap ita l C ri si s St ra te gi c Su bt ot al pl an t a nd A cq ui si tio n M an ag em en t G ro w th / eq ui pm en t R es er ve R es er ve Ex pa ns io n R es er ve Ba la nc e as a t J an ua ry 1 , 2 01 3 14 ,8 21 1 ,7 99 2 ,3 81 4 ,1 80 1 9, 00 1 R e- de si gn at io n fo r fa ci lit ie s de ve lo pm en t (1 ,0 00 ) 1 ,0 00 1 ,0 00 - N et c ha ng es in in ve st m en t i n pr op er ty , p la nt & e qu ip m en t - 9 6 (9 6) - - N et S ur pl us 2 01 3 19 - 1 9 Ba la nc e as a t D ec em be r 31 , 2 01 3 13 ,8 40 1 ,8 95 3 ,2 85 - - 5 ,1 80 1 9, 02 0 R e- de si gn at io n fo r D es ig na te d N et A ss et s (3 ,2 15 ) 7 15 1 ,5 00 1 ,0 00 3 ,2 15 - Ba la nc e as a t J an ua ry 1 , 2 01 4 10 ,6 25 1, 89 5 4, 00 0 1, 50 0 1, 00 0 8, 39 5 19 ,0 20 N et c ha ng es in in ve st m en t i n pr op er ty , p la nt & e qu ip m en t - 5 62 (5 62 ) - - U se o f S tr at eg ic G ro w th / Ex pa ns io n R es er ve 7 (7 ) (7 ) - N et S ur pl us 85 5 - 8 55 Ba la nc e as a t D ec em be r 31 , 2 01 4 11 ,4 87 2 ,4 57 3 ,4 38 1 ,5 00 9 93 8 ,3 88 1 9, 87 5 Th e ac co un tin g po lic ie s on p ag es 9 to 1 9, n ot es o n pa ge s 20 to 3 5 an d su pp le m en ta ry in fo rm at io n on p ag es 3 6 to 4 8 fo rm a n in te gr al p ar t o f t he fi na nc ia l s ta te m en ts . Financial Statements - 31st December 2014 8 INTERNATIONAL WATER MANAGEMENT INSTITUTE Statement of Cash Flows For the Year ended December 31, 2014 (In US Dollars ’000) 2014 2013 Cash flows generated from/(used in) operating activities Change in net assets 855 19 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 1,146 752 Gain on disposal of property, plant and equipment (5) (97) 1,141 655 (Increase) / decrease in Assets: Accounts receivable 6,177 (6,161) Prepaid expenses (68) (52) Inventories 3 1 6,112 (6,212) Increase / (decrease) in Liabilities: Accounts payable 13,558 (9,308) Accruals (80) (443) 13,478 (9,751) Net cash generated from/(used in) operating activities 21,586 (15,289) Cash flows used in investing activities Acquisition of property, plant and equipment (1,711) (901) Disposal proceeds of property, plant and equipment 8 150 Investment (120) 1 Net cash used in investing activities (1,823) (750) Cash flows generated from financing activities Increase in long-term liabilities Accounts Payable - Employees 430 128 Net cash generated from financing activities 430 128 NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 20,193 (15,911) CASH AND CASH EQUIVALENTS: At beginning of year 24,407 40,318 At end of year 44,600 24,407 The accounting policies on pages 9 to 19, notes on pages 20 to 35 and supplementary information on pages 36 to 48 form an integral part of the financial statements Financial Statements - 31st December 2014 9 Accounting Policies Reporting Entity The International Water Management Institute (IWMI) is a non-profit, scientific research organization focusing on the sustainable use of water and land resources in developing countries. It is headquartered in Colombo, Sri Lanka, with regional offices across Asia and Africa. IWMI works in partnership with governments, civil society and the private sector to develop scalable agricultural water management solutions that have a real impact on poverty reduction, food security and ecosystem health. IWMI’s mission is to provide evidence-based solutions to sustainably manage water and land resources for food security, people’s livelihoods and the environment. IWMI’s vision, as reflected in the Strategy 2014-2018, is ‘A water-secure world’. IWMI began operations in Sri Lanka in 1984 as the International Irrigation Management Institute (IIMI). Under an agreement signed with the Ford Foundation (acting on behalf of IIMI) on January 9, 1985, and ratified by Act No. 6 of 1985, the Sri Lankan government recognized IWMI (previously known as IIMI) as a not-for-profit international organization and grants the Institute certain privileges, including exemption from Sri Lankan government taxes. IWMI has offices in India, Pakistan, Nepal, Lao PDR, Uzbekistan, Burkina Faso, Ghana, Ethiopia, South Africa and Egypt, and representatives in the USA and the Netherlands. The Institute receives support from various donor agencies and entities, including the CGIAR Fund. IWMI is a member of the CGIAR Consortium, a global research partnership for a food-secure future. The CGIAR Consortium is an international organization that, together with the CGIAR Fund, advances international agricultural research for a food-secure future by integrating and coordinating the efforts of those who fund research and those who do the research. The CGIAR Consortium is comprised of the Consortium Board, the Consortium Office, and research centers which are members of the CGIAR Consortium. CGIAR Research Programs (CRPs): In 2011, CGIAR introduced a new programmatic-based approach to doing business. The donors to CGIAR, represented by the Fund Council, approved the creation of 16 CRPs (including the CRP for Genebanks), each to be led by a designated CGIAR center (Lead Center) which is responsible, through a Program Implementation Agreement (PIA), for overseeing the implementation of the CRP by program participants, and for all payments to, and reporting from, program participants. Program participants include other CGIAR centers who are subcontracted by the Lead Center via a Program Participant Agreement (PPA) or other suitable contracting arrangements. Fund donors may designate their contributions to one or more of the three funding “Windows”. For Window 1 funds, the Fund Council sets the overall priorities and makes specific decisions about the use of the funds, such as allocation to CRPs, payment of System Costs and any other use required to achieve the CGIAR mission. Window 2 funds are contributions designated by fund donors to one or more specific CRPs. Window 3 funds are contributions designated by the fund donors to individual CGIAR centers. IWMI is the Lead Center for the CGIAR Research Program on Water, Land and Ecosystems (WLE) (CRP5), which started in January 2012 for a period of 3 years. The total grant comprises of Window 1 and Window 2 funds from the CGIAR Consortium and bilateral funds raised Financial Statements - 31st December 2014 10 by participating centers, including IWMI. As a Lead Center, IWMI entered into an agreement (PIA) with the CGIAR Consortium for the overall performance of WLE. The Institute will receive grants from Windows 1 and 2 funding for further allocation to the participating CGIAR centers. IWMI is required to submit regular financial reports and cash flow statements to the Consortium Office. IWMI is also contributing to several other CRPs: CRP1.1 (Dryland Systems), CRP1.2 (Integrated Systems for the Humid Tropics), CRP1.3 (Aquatic Agricultural Systems), CRP2 (Policies, Institutions and Markets) and CRP7 (Climate Change, Agriculture and Food Security). The accompanying financial statements and supplementary schedules of IWMI were approved and authorized for issue by the Institute’s Board of Governors on April 30, 2015. 1.1. Basis of Accounting The financial statements are prepared under the historical cost convention on the accrual basis of accounting, in accordance with the CGIAR Accounting Policies and Reporting Practices Manual, Financial Guidelines Series, No. 2, as amended in February 2006, and the annual Advisory Note issued by the CGIAR Consortium Office for 2014 financial statements. 1.2. Significant Accounting Judgments, Estimates and Assumptions Judgments In the process of applying IWMI’s accounting policies, the management has made the following judgment, apart from those involving estimations, which has the most significant effect on the amounts recognized in the Financial Statements. Allowance for Doubtful Debts IWMI reviews all receivables at each Statement of Financial Position date to assess whether an allowance should be recorded in the Statement of Activities. The management uses judgment in estimating such amounts in the light of the duration of the outstanding value and any other factors the management is aware of that may indicate uncertainty in recovery. Estimates and Assumptions The key assumptions regarding the future and other key sources of uncertainty of making estimations at the Statement of Financial Position date, which have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year, are discussed below. The respective carrying amounts of assets and liabilities are given in the related notes to the Financial Statements. Defined Benefit Plans The cost of defined benefit plans - severance, gratuity and leave encashment - are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases and mortality rates. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. Accounting Policies (Contd...) Financial Statements - 31st December 2014 11 1.3. Functional and Presentation Currency The financial statements are presented in United States Dollars (USD), which is IWMI’s functional and presentation currency. All financial information presented in USD has been rounded to the nearest thousand, unless otherwise indicated. Summary of Significant Accounting Policies IWMI has consistently applied the following accounting policies to all periods presented in these financial statements. 1.4. Foreign Currencies Transactions denominated in currencies other than the presentation currency are translated to USD at the exchange rates prevailing at the beginning of the month in which the transaction took place. If the variation in the rates at the beginning and middle of the month is more than 2%, such variations are adjusted in the accounting system in the middle of the month. Monetary assets and liabilities denominated in currencies other than USD are translated to the functional currency at the exchange rate at the reporting date. Non-monetary items denominated in a foreign currency, which are carried at cost, are reported using the exchange rate prevailing on the date of the transaction. All exchange gains or losses resulting from such translations are treated as other revenues and gains in the Statement of Activities. 1.5. Revenue I. Definition Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of a CGIAR center, where those inflows result in increases in net assets. The major portion of a center’s revenue is derived through the receipts of donor grants - either ‘Unrestricted’ or ‘Restricted’. Unrestricted grant revenue arises from the unconditional transfer of cash or other assets to IWMI. Restricted grant revenue arises from a transfer of resources to IWMI in return for past or future compliance related to the operating activities of the Institute. Gross inflow of economic benefits includes amounts collected on behalf of the principal and do not result in an increase in the net assets, which are treated as ‘Agency Transactions’ and are not recognized as revenue. II. Recognition Grants are recognized as revenue when the outcome of a transaction involving the rendering of services can be measured reliably. Revenue associated with the transaction is recognized by making reference to the stage of completion of the transaction at the reporting date. When the outcome of the transaction cannot be estimated reliably, revenue is recognized only to the extent of the expenses that are recoverable. Unrestricted grants are recognized as revenue upon unconditional transfer of cash or other assets by donors. Such revenue is recognized in full in the financial year for which the grant is pledged. Accounting Policies (Contd...) Financial Statements - 31st December 2014 12 As a Lead Center, grants received for the CRPs are recognized in the full amount of grants received from the CGIAR Consortium (Windows 1 and 2), including the amounts passed on to other centers and spent by them. Disbursements to another CGIAR center by the Lead Center are recorded as an ‘Account Receivable’ until an expenditure report is received from the other center, and the expenditure amount is then liquidated from the advance. III. Measurement Revenue is measured at the fair value of the consideration received or receivable. Fair Value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties at an arm’s length transaction. (a) Cash grants are recorded at the face value of the cash received or the USD equivalent. (b) Grant revenue, including non-monetary grants at fair value, is recognized when there is reasonable assurance that the: i. organization will comply with the conditions attached to them; and ii. grants will be received. (c) Grants are recognized as revenue over the periods necessary to match them with the related costs, which they are intended to compensate, on a systematic basis. 1.6. Other Revenues Other revenues and gains are recognized in the period in which they are earned. IWMI discloses the amount of exchange differences included in the net profit or loss for the period under Other Revenue and Gains. 1.7. Expenses Expenses are recognized when a decrease in future economic benefits, related to a decrease in an asset or an increase in a liability, has arisen that can be measured reliably. Expenses are recognized on the basis of a direct association between the costs incurred and the earning of specific items of revenue. IWMI presents, on the face of the Statement of Activities, an analysis of expenses using a classification based on the function and nature of expenses within the Institute. Research Expenses: These are the costs incurred for the activities that result in goods and services being distributed to beneficiaries, project proponents and members that fulfill the purpose of a mission for which the IWMI exists. CGIAR Collaborator Expenses: This is the total expenditure incurred by other CGIAR centers in collaborative research undertaken by them. Non-CGIAR Collaborator Expenses: These are the costs incurred by external partners in collaborative research as per the contract research agreements between the partners and the CGIAR center. Accounting Policies (Contd...) Financial Statements - 31st December 2014 13 General and Administration Expenses: These are the expenses incurred for activities of IWMI other than Research Expenses. These expenses are also referred to as ‘Governance and central support functions’, ‘Institutional costs’ or ‘Administrative costs’. The ‘Management and Administration’ costs are collectively referred to as indirect costs and include expenses of IWMI’s Board of Governors, office of the Director General, Finance and Human Resources departments, internal and external audit costs, Information and Knowledge Group (IKG), and the unrecovered part of services. 1.8. Allocation of Expenses Direct costs are charged, in particular, to the programs benefited. Indirect costs are allocated to programs based on the total direct cost. The costs of providing the programs, management and general activities have been summarized on a functional basis in the notes. Accordingly, certain costs have been allocated among programs and other services, management and general activities. 1.9. Taxation IWMI is exempt from income tax under the provisions of Section 7 of the Inland Revenue Act No. 10 of 2006 of Sri Lanka, and amendments thereto. The Institute is also exempt from USA (United States of America) tax under Section 501(a) of the Internal Revenue Code of the United States of America, as an organization described in Section 501(c) (3). 1.10. Cash and Cash Equivalents Cash and cash equivalents comprise cash in hand, balances with banks, and short-term highly liquid investments that are readily convertible to known amounts of cash with original maturity periods of 3 months or less, and which are subject to an insignificant risk of change in value. 1.11. Investments Investments acquired with the intention of disposing the same within 1 year or less from the acquisition date are classified as current investments. Investments classified as current, as distinguished from cash equivalents, are those that are acquired with original maturities of more than 3 months, but not exceeding 1 year. Investments are initially recorded at their cost. Interest or gains related to short-term investments are reported in the Statement of Activities under Other Revenue and Gains. The short-term investments represent time deposits with banks that are collateral against national staff loan schemes and term deposits with original maturities of more than 3 months. 1.12. Accounts Receivable All receivable balances are valued at their net realizable amount, i.e., gross amount of receivable balances minus, if applicable, allowances provided for doubtful accounts. Accounting Policies (Contd...) Financial Statements - 31st December 2014 14 Allowances for doubtful accounts are provided in an amount equal to the total receivables shown, or reasonably estimated to be doubtful of collection. The amount of the allowance is based on past experience, and a continuous review of receivable reports and other relevant factors. When an accounts receivable is deemed doubtful of collection, an allowance is provided during the year the account is deemed doubtful. Any receivable or portion of accounts receivable judged to be uncollectible is written off. Write-offs of receivables are made while making allowance for doubtful accounts after all efforts to collect such amounts have been exhausted. (a) Accounts Receivable – Donors Accounts receivable from donors consist of amounts due from restricted grants that have been negotiated between the donor and the CGIAR center. It also pertains to claims from donors for expenses paid on behalf of projects in excess of cash received. (b) Accounts Receivable – Employees Accounts receivable from employees consist of advances made to officers and employees for travel, benefits, salary, loans, etc. (c) Accounts Receivable - Other CGIAR Centers This includes advances made to other CGIAR centers. Under the CRPs, disbursements to another CGIAR center by the Lead Center should be recorded as an ‘Accounts Receivable’ until an expenditure report is received from the other center, and the expenditure amount can then be liquidated from the advance. (d) Accounts Receivable – Others Accounts receivable from others consist of advance payments to suppliers, consultants and other third parties. 1.13. Prepaid Expenses Prepaid expenses comprise of deposits and advances to suppliers. These are future expenses that have been paid in advance. The amount of prepaid expenses that have not yet expired are reported in IWMI’s Statement of Financial Position as an asset. 1.14. Inventories Inventories are held in the form of materials or supplies to be consumed in IWMI’s operations or in the rendering of services. Cost of inventories is not directly expended at the time of purchase, and these are not held for sale in the ordinary course of business. Net realizable value is the estimated selling price in the ordinary course of business minus the estimated costs necessary to make the sale. Inventories are valued at whichever is lower of acquisition cost or net realizable value, and charged when used. The acquisition cost includes the purchase Accounting Policies (Contd...) Financial Statements - 31st December 2014 15 price plus cost of freight, insurance and handling charges. Cost is determined by the weighted average method. Provision is made, where necessary, for obsolete, slow moving and defective items. 1.15. Property, Plant and Equipment I. Definition Property, plant and equipment are defined as tangible assets, which are: a) held by IWMI for use in the production or supply of goods or for administrative purposes; and b) expected to be used for more than one accounting period. II. Recognition An item of property, plant and equipment is recognized as an asset when: (a) it is probable that future economic benefits associated with the asset will flow to IWMI; and (b) the cost of the asset can be measured reliably. All individual tangible assets having costs in excess of USD 500 or its equivalent, with an estimated useful life beyond 1 year, are treated as fixed assets and designated as property, plant and equipment. Gains or losses arising from the discontinuation or disposal of property, plant and equipment are determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset, and are recognized as revenue or expense in the Statement of Activities. III. Measurement Property, plant and equipment are initially measured at cost. Subsequent to initial recognition as an asset, property, plant and equipment are carried at cost minus any accumulated depreciation and any accumulated impairment losses. The cost of an item of property, plant and equipment comprises its purchase price and all other incidental costs in bringing the asset to its working condition for its intended use. IV. Depreciation Depreciation of property, plant and equipment is calculated on the straight-line basis over the estimated useful lives of the assets as follows: Leasehold property - Over the lease period (25 years) Building renovation/partitioning/wiring - 5 years Heavy-duty equipment - 7 years Office and household furniture, fixtures, research and office equipment – 5 years Vehicles - 5 years Computer software - 3 to 5 years Computer hardware - 3 years Depreciation of acquired assets is determined in the year the asset is placed into operation, and continues until the asset is fully depreciated or its use is discontinued. Accounting Policies (Contd...) Financial Statements - 31st December 2014 16 Property, plant and equipment acquired through the use of grants restricted for a certain project are recorded as assets. Such assets are depreciated at a rate of 100%, and the depreciation expense is charged directly to the appropriate restricted project. V. Leasehold Property Leasehold property and improvements thereon are amortized over the lease period or, if shorter, the useful economic life of the property or improvement concerned. The initial lease agreement between IWMI and the Government of Sri Lanka is for 25 years commencing in 1991. IWMI has the right to negotiate for an extension of the lease period under the lease agreement upon expiry of the current lease. VI. Capital Work-in-Progress Capital work-in progress represents the accumulated cost of materials and other costs directly related to the construction of an asset. Capital work-in-progress is transferred to the respective asset accounts at the time it is substantially completed and ready for its intended use. 1.16. Accounts Payable Accounts payable are amounts due to donors, employees and others for support, services and materials received prior to year-end, but not paid for as at the Statement of Financial Position date. (a) Accounts Payable – Donors This includes amounts payable to donors in respect of any unexpended funds received in advance for restricted grants. (b) Accounts Payable – Employees This includes unpaid salaries and bonuses, leave credits and pension entitlements. (c) Accounts Payable – Others These include all other liabilities IWMI has incurred and has been billed for, which remain unpaid as at the Statement of Financial Position date. 1.17. Accruals This amount comprises accruals made for suppliers, for which invoices were not yet received as at the reporting date. 1.18. Provisions A provision is a liability of uncertain timing or amount. A provision is recognized when: Accounting Policies (Contd...) Financial Statements - 31st December 2014 17 (a) a center has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the reporting date. Provisions should be reviewed at each reporting date and adjusted to reflect the current best estimate. A provision should only be used for expenditure for which the provision was originally recognized. 1.19. Employee Benefits An employee may provide services to an entity on a full-time, part-time, permanent, contract or casual basis. Employees include directors and other management personnel. Employee benefits are all forms of consideration given by IWMI in exchange for services rendered by employees. Employee benefits include the following: (I) Short-term employee benefits – Salaries, paid leave, bonuses and non-monetary benefits for current employees. These benefits are expected to be settled in full within a year in which the employees render the related services. (II) Post-employment benefits – Pension, other retirement benefits, post-employment life insurance and medical care. IWMI has a ‘Defined Benefit’ pension plan for its national staff based at its headquarters. This plan was closed in 2004 to new employees. The assets and liabilities of the Plan are valued annually by a qualified Actuary, and the resulting liability is provided in the books. (III) Terminal benefits IWMI’s net obligation in respect of severance, gratuity and leave encashment, which are defined benefit plans, are determined based on an actuarial valuation carried out by an independent qualified actuary and are accrued at the reporting date. The liabilities are not externally funded. (a) Severance and Gratuity • Severance In accordance with the terms and conditions of recruitment, internationally recruited staff members are entitled to terminal benefits referred to as ‘Severance’ on the completion of three full years of continuous service. The present value of a defined benefit obligation is determined by discounting the estimated cash flows based on the actuarial valuation carried out by an independent qualified actuary. • Gratuity Payment is made for gratuity benefits under IWMI’s personnel policies to nationally recruited staff. Nationally recruited staff qualify for a gratuity payment on completion of 5 years of continuous service with the Institute. The present value of a defined benefit obligation is determined by discounting the estimated cash flows based on the actuarial valuation carried out by an independent qualified actuary. Accounting Policies (Contd...) Financial Statements - 31st December 2014 18 (b) Unutilized Leave Payment is made for unutilized leave to internationally and nationally recruited staff members in accordance with the Personnel Policies Manual on the following bases: • International staff - maximum of 48 days based on current salary • National staff - maximum of 35 days based on current salary The present value of a defined benefit obligation is determined by discounting the estimated cash flows based on the actuarial valuation carried out by an independent qualified actuary. (c) Repatriation In accordance with the terms and conditions of recruitment, internationally recruited staff members and their dependents are entitled to repatriation benefits on completion of the contract period. Provision is made for repatriation payable to all international staff members based on the estimated cost of airfare, relocation and freight charges. 1.20. Net Assets Net Assets are the residual interest in IWMI’s assets remaining after liabilities are deducted. The overall change in net assets represents the total gains and losses generated by the Institute’s activities during the year. Net assets are classified as either undesignated or designated. (a) Undesignated - the part of net assets that is not designated by IWMI’s management for specific purposes. (b) Designated - the part of net assets that has been designated by IWMI’s management for specific purposes. Property, Plant and Equipment: This is the net book value of property, plant and equipment as at the Statement of Financial Position date. 1.21. Events after the Reporting Date Events after the reporting date are those, both favorable and unfavorable, that occur between the reporting date and the date when the financial statements are authorized for issue. Two types of events can be identified: (a) Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and (b) Those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date). Adjusting events after the reporting date: IWMI adjusts the amounts recognized in its financial statements to reflect adjusting events after the reporting date. Accounting Policies (Contd...) Financial Statements - 31st December 2014 19 Going Concern: The financial statements are prepared on a going concern basis. However, IWMI doesn’t prepare its financial statements on a going concern basis, if the management determines that it intends to cease operations or it has no realistic alternative but to do so after the reporting date. 1.22. Statement of Cash Flows The Statement of Cash Flows has been prepared using the ‘indirect method’. This is the method whereby a surplus or deficit is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expenses associated with investing or financing cash flows. The Statement of Cash Flows for a period shall report net cash provided or used by operating, investing and financing activities, and the net effect of those flows on cash and cash equivalents during the period, in a manner that reconciles the beginning and ending cash and cash equivalents. Accounting Policies (Contd...) Financial Statements - 31st December 2014 20 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 2014 2013 2. Cash & Cash Equivalents Cash in hand 47 29 Bank accounts 2,134 2,060 Investment accounts 41,391 20,923 Cash held on behalf of Challenge Program 1,028 1,395 44,600 24,407 3. Investments Short-term Investments 155 35 155 35 4. Accounts Receivable - Donors Restricted funds 4,028 8,990 Allowance for doubtful accounts (47) (41) 3,981 8,949 5. Accounts Receivable - Employees Travel advances 50 65 Other receivables 108 75 Loans - staff 235 287 393 427 6. Other CGIAR Centers International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) - 251 International Food Policy Research Institute (IFPRI) 82 270 International Livestock Research Institute (ILRI) 2 28 International Plant Genetic Resources Institute (IPGRI) 6 - International Potato Center (CIP) - 28 International Rice Research Institute (IRRI) - 169 WorldFish (WF) 7 104 97 850 Notes to the financial statements continued on page 21 Financial Statements - 31st December 2014 21 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 2014 2013 7. Accounts Receivable - Others Advances Receivable Asia 83 134 Advances Receivable Africa 391 220 Challenge Program Non-CGIAR Collaborators 96 422 CRP Non-CGIAR Collaborators - 15 Consultants 58 262 Vendors 279 302 Collaborators 196 130 Insurance Claims 2 - 1,105 1,485 Allowance for Doubtful Accounts (42) - 1,063 1,485 8. Prepaid Expenses Deposits 42 11 Prepayments 286 249 328 260 9. Inventories Inventories 29 32 29 32 Notes to the financial statements continued on page 22 Financial Statements - 31st December 2014 22 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 10. Property, Plant and Equipment Balance at Additions/ Disposals Balance at 1 January charge for 31 December 2014 the year 2014 I. Cost Infrastructure and Improvements on the Building Leasehold Building and Improvements 2,547 97 - 2,644 Capital Work-in-Progress (Note 10a) - 735 - 735 Heavy Duty Equipment 282 - - 282 Equipment Research Equipment 329 316 - 645 Computers 2,021 358 409 1,970 Furnishing & Office Equipment 1,104 77 140 1,041 Vehicles 1,649 88 36 1,701 Computer Software 647 40 - 687 TOTAL COST 8,579 1,711 585 9,705 II. Accumulated Depreciation Infrastructure and Improvements on the Building Leasehold Building and Improvements 1,961 165 - 2,126 Capital Work-in-Progress - - - - Heavy Duty Equipment 253 10 - 263 Equipment Research Equipment 308 316 - 624 Computers 1,668 274 408 1,534 Furnishing & Office Equipment 926 100 138 888 Vehicles 985 237 36 1,186 Computer Software 583 44 - 627 6,684 1,146 582 7,248 III. Net Book Value Infrastructure and Improvements on the Building Leasehold Building and Improvements 587 518 Capital Work-in-Progress - 735 Heavy Duty Equipment 30 19 Equipment Research Equipment 21 21 Computers 353 436 Furnishing & Office Equipment 178 153 Vehicles 664 515 Computer Software 62 60 1,895 2,457 NOTE: Cost of fixed assets is analyzed as follows: Center Owned 5,182 5,861 In Custody 850 1,200 Leasehold Improvements 2,547 2,644 8,579 9,705 Notes to the financial statements continued on page 23 Financial Statements - 31st December 2014 23 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 10a. Capital Work-in-Progress IWMI’s Regional Office for West Africa is located at the premises of the Council for Scientific and Industrial Research (CSIR). CSIR is an agency of the Government of Ghana. IWMI entered into a lease agreement with CSIR on July 1, 2013, to construct a two-storey building on the CSIR campus. The full cost of construction of this new building is borne by IWMI, and the building is jointly owned by IWMI and CSIR. IWMI will occupy the building as long as its’ operations continue in West Africa, and the ownership will revert to CSIR when IWMI ceases its operations in the region. The duration of the lease is for 25 years, but shall be extended or revised on the mutual consent of both parties. Capital work-in-progress is the cost incurred by IWMI as of December 31, 2014, for the construction and related activities of this new building. 2014 2013 11. Accounts Payable - Donors Restricted funds (Refer Exhibit 1) 20,806 8,339 20,806 8,339 12. Accounts Payable - Employees Travel Payables 103 37 Other Payables 225 181 International & National Staff Unutilized Leave Provision (Note 12a) 927 905 1,255 1,123 12a. International & National Staff Unutilized Leave Provision National Staff 178 156 International Staff 749 749 927 905 Notes to the financial statements continued on page 24 Financial Statements - 31st December 2014 24 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 2014 2013 13. Accounts Payable - Other CGIAR Centers International Center for Agricultural Research in the Dry Areas (ICARDA) 254 225 International Center for Tropical Agriculture (CIAT) 906 491 International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) 33 - International Food Policy Research Institute (IFPRI) - 5 International Institute of Tropical Agriculture (IITA) 92 55 International Livestock Research Institute (ILRI) 166 191 International Plant Genetic Resources Institute (IPGRI) 788 380 International Potato Center (CIP) 194 79 International Rice Research Institute (IRRI) 65 - World Agroforestry Centre (ICRAF) 606 405 WorldFish (WF) 78 29 3,182 1,860 14. Accounts Payable - Others Accounts Payable - Vendors 430 404 CRP Non-CGIAR Collaborators 2 - Collaborators 819 708 Consultants 1,086 791 Advances Payable Africa 329 684 Advances Payable Asia 56 21 Challenge Program Non-CGIAR Collaborators 51 161 Undisbursed funds for Challenge Program (Note 14a) 1,028 1,395 3,801 4,164 Notes to the financial statements continued on page 25 Financial Statements - 31st December 2014 25 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 14a. Undisbursed Funds for Challenge Program (CPWF) Cumulative Jan - Dec Cumulative 2013 2014 2014 Cash Receipts Australia 331 - 331 AusAID - Mekong Basin Grant 5,711 (232) 5,479 AusAID - Mekong Basin Grant - Interest Earned 141 - 141 Danish 1,494 - 1,494 DFID 31,841 - 31,841 EC 9,268 - 9,268 EC - Incremental Grant - Grant No: C-ECG-48-IWMI-CP 1,885 - 1,885 EC 2011 Contribution - Grant No:COFIN-ECG-70-IWMI 1,241 - 1,241 France 4,024 - 4,024 GTZ 1,193 - 1,193 IFAD - Mekong (PN 50) 792 - 792 IFAD - Grant No. : I-R-1312-IWMI-CP 820 77 897 Norway 1,738 - 1,738 Netherlands 6,618 - 6,618 New Zealand 1,655 - 1,655 SIDA - Mekong Dam Development : Dammed If… 221 - 221 Sweden [SIDA] 862 - 862 Switzerland [SDC] 10,836 1,425 12,261 World Bank 18,400 - 18,400 Stability Funding 6,861 - 6,861 CRP5 Funding 11,978 1,320 13,298 Bank Interest income 72 2 74 Total Receipts 117,982 2,592 120,574 CASH DISBURSEMENTS - PHASE 1 PROJECTS International Rice Research Institute (IRRI) 13,613 - 13,613 Centro International de Agricultura Tropical (CIAT) 7,728 - 7,728 World Fish Center (WFC) 5,476 - 5,476 International Food Policy Research Institute (IFPRI) 5,069 - 5,069 International Livestock Research Institute (ILRI) -Ethiopia 976 - 976 Kwame Nkrumah University of Science & Technology (KNUST) 493 - 493 Yellow River Conservancy Commission (YRCC) 704 - 704 EMBRAPA 94 - 94 Agricultural Research Council (ARC) 426 - 426 Agricultural Research and Education Organization (AREO) 89 - 89 University of Copenhagen 216 - 216 National Water Research Centre (NWRC) 677 - 677 Mekong River Commission (MRC) 663 - 663 Council for Scientific and Industrial Research (CSIR) Water Research Institute 319 - 319 International Potato Center (CIP) 723 - 723 Indian Council of Agricultural Research (ICAR) 205 - 205 Institut de Recherché pour le Developpement (IRD) 1,209 - 1,209 University of California Davis (UCDavis) 696 - 696 Griffin NRM 490 - 490 Commonwealth Scientific and Industrial Research Organisation (CSIRO) 779 - 779 Food Agriculture and Natural Resources Policy Analysis Network (FANRPAN) 707 - 707 King’s College London, University of London (KCL) 520 - 520 Natural Environment Research Council-Centre for Ecology and Hydrology 70 - 70 Khon Kaen University (KKU) 75 - 75 International Development Enterprises Cambodia (IDE) 75 - 75 Sokoine University of Agriculture 68 - 68 Asian Institute of Technology (AIT) 68 - 68 World Neighbors 60 - 60 Savanna Agricultural Research Institute (SARI) 62 - 62 IDE International - Nepal 75 - 75 Humana People to People India (HPPI) 75 - 75 Institute for Sustainable Development 40 - 40 FUNDAEXPRESION 40 - 40 Centre for Sustainable Development and Environment (CENESTA) 76 - 76 IDE International - India 70 - 70 Volta Basin Authority 53 - 53 St. Jude Family Projects and Organic Training Centre 66 - 66 World Vision South Africa (WV-SA) 68 - 68 Total Cash disbursements - Phase 1 Projects 42,913 - 42,913 Notes to the financial statements continued on page 26 Financial Statements - 31st December 2014 26 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) Cumulative Jan - Dec Cumulative 2013 2014 2014 CASH DISBURSEMENTS - PHASE 2 PROJECTS Cash Disbursements - BDC Projects AN1 RIMISP Centro Latinoamericano para el Desarrollo Rural 732 18 750 AN2 CIAT 1,382 30 1,412 AN3 King’s College London (KCL) 1,093 (36) 1,057 AN4 Consorcio para el Desarrollo Sostenible de la Ecorregion Andina (CONDESAN) 924 29 953 MK2 WORLDFISH 552 16 568 MK3 International Centre for Environmental Management (ICEM Vietnam) 708 10 718 MK4 Asian Institute of Technology (AIT) 717 (3) 714 MK5 Workshop - Asian Institute of Technology (AIT) 30 - 30 NL3 ILRI 708 172 880 NL5 ILRI 1,201 129 1,330 LM1 Stockholm Environment Institute (SEI) 649 11 660 LM2 Agricultural Research Council - South Africa (ARC) 1,134 159 1,293 LM3 International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) 1,136 (70) 1,066 LM4 WaterNet 779 - 779 LM5 Food Agriculture and Natural Resources Policy Analysis Network (FANRPAN) 943 20 963 VL1 Stockholm Environment Institute (SEI) 557 21 578 VL2 ILRI 878 11 889 VL3 CIRAD 888 - 888 VL5 Volta Basin Authority (VBA) 644 - 644 G1 IRRI 600 214 814 G2 IRRI 972 175 1,147 G4 Institute of Water Modelling (IWM) 617 108 725 G5 WORLDFISH 677 131 808 Total Cash Disbursements - BDC Projects 18,521 1,145 19,666 Cash Disbursements - Innovation Fund Projects L2 & L4 WaterNet 33 - 33 L5 Food Agriculture and Natural Resources Policy Analysis Network (FANRPAN) 18 2 20 MK2 CIEM (Central Institute for Economic Management) 20 - 20 MK2 DLF (Department of Livestock & Fisheries) 19 - 19 N2 ILRI 20 - 20 G2 IRRI 20 - 20 Transfer to IFAD (60) - (60) Total Cash Disbursements - Innovation Fund Projects 70 2 72 Cash Disbursements - Other Projects Ganges Workshop (WFC) 22 - 22 University of Oxford 22 - 22 International Rice Research Institute (IRRI) - MOA 80 - 80 Total Cash Disbursements - Other Projects 124 - 124 Cash Disbursements - IWMI CP Projects MK1 IWMI 1,372 51 1,423 NL2 IWMI 2,194 22 2,216 NL4 IWMI 833 (87) 746 VL4 IWMI 632 22 654 G3 IWMI 941 - 941 V5 - Innov IWMI - Volta Storylines and Scenarios 8 - 8 N2 - Innov IWMI / ODI - The Wheels of Innovation 20 - 20 VL5 VL5 - Consultancy under WLE - 16 16 Total Cash Disbursements - IWMI CP Projects 6,000 24 6,024 CPWF Program expenditure / funds disbursed to IWMI for Phase 1 Projects 16,480 - 16,480 CPWF Secretariat & Program Level Science - (without 4% admin fee) 24,469 663 25,132 Administration Fees - Non IWMI CP (Phase 1 & 2 Projects) 2,248 46 2,294 Restricted Grant : AusAID - Mekong Basin 4,770 850 5,620 Restricted Grant : IFAD (Grant No: G-I-R-1312-IWMI-CP) 771 229 1,000 Restricted Grant : SIDA - Mekong Dam Development : Dammed If… 221 - 221 48,959 1,788 50,747 Total Disbursements 116,587 2,959 119,546 Undisbursed Funds held by IWMI 1,395 (367) 1,028 The CGIAR Challenge Program on Water and Food (CPWF) was fully integrated into the CGIAR Research Program on Water, Land and Ecosystems (WLE). As such, any unspent funds will be used to roll out the WLE new Innovation Fund and integrative Focal Region Initiative. Notes to the financial statements continued on page 27 Financial Statements - 31st December 2014 27 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 2014 2013 15. Non-Current Liabilities: Accounts Payable-Employees Severance & gratuity benefits (Note 15a) 1,882 1,715 International staff repatriation (Note 15b) 1,149 1,121 National staff Pension Fund provision (Note 15c) 719 484 Balance as at 31 December 3,750 3,320 15a. Severance & Gratuity Benefits Balance at 1 January 1,715 1,584 Charge for the year 482 347 Payments made during the year (315) (216) Balance as at 31 December 1,882 1,715 15b. International Staff Repatriation Balance at 1 January 1,121 1,162 Charge for the year 106 314 Payments made during the year (78) (355) Balance as at 31 December 1,149 1,121 15c. National Staff Pension Fund Provision National Staff Pension Fund 719 484 IWMI has a ‘Defined Benefit’ pension plan for its national staff based at head quarters. This plan was closed in 2004 to new employees. The assets and liabilities of the plan are valued annually by a qualified Actuary and the resulting liability is provided in the books. As at December 31, the Pension Fund liability computed by the Actuary is shown as follows: 2014 2013 Present value of funded obligation (excluding future service liability) 3,558 3,091 Fair value of plan assets as at December 31 (2,839) (2,607) Recognized liability for defined benefit obligation 719 484 Notes to the financial statements continued on page 28 Financial Statements - 31st December 2014 28 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 2014 2013 16. Other Revenue and Gains Bank Interest & Investment Income 210 263 Gains on Disposal of Assets 5 97 Foreign Exchange Gains / (Losses) 174 (528) Management fees 409 533 Others 107 720 Total 905 1,085 Notes to the financial statements continued on page 29 Financial Statements - 31st December 2014 29 IN TE RN AT IO N A L W AT ER M A N A G EM EN T IN ST IT U TE N ot es to th e Fi na nc ia l S ta te m en ts - A s at D ec em be r 31 , 2 01 4 (c on td .) (In U S D ol la rs ’0 00 ) 17 . T ot al E xp en se s & L os se s 20 14 20 13 Re st ri ct ed Re st ri ct ed Re st ri ct ed Re st ri ct ed U nr es tr ic te d C RP N on -C RP To ta l U nr es tr ic te d C RP N on -C RP T ot al Ex pe ns es & L os se s by F un ct io n Pe rs on ne l C os ts 3 ,7 04 13 ,2 11 99 7 17 ,9 12 4 ,0 66 10 ,9 98 1 ,3 15 1 6, 37 9 C G IA R C ol la bo ra to r Ex pe ns es - 12 ,0 23 - 12 ,0 23 - 10 ,2 03 - 1 0, 20 3 N on -C G IA R C ol la bo ra to r Ex pe ns es - 3, 10 4 1, 21 9 4, 32 3 - 9, 28 1 1, 37 6 10 ,6 57 Su pp lie s & S er vi ce s (2 52 ) 8, 61 2 52 4 8, 88 4 3 75 6, 62 8 4 23 7 ,4 26 Tr av el 6 02 2, 02 9 50 2, 68 1 4 77 1, 59 0 1 68 2 ,2 35 D ep re ci at io n 7 43 40 2 1 1 ,1 46 6 61 9 0 1 7 52 C os t S ha ri ng P er ce nt ag e 6 4 71 - 13 5 3 4 40 - 7 4 In di re ct C os t R ec ov er y (4 ,8 11 ) 4, 39 1 4 20 - (4 ,5 10 ) 4, 01 3 4 97 - To ta l E xp en se s & L os se s 5 0 43 ,8 43 3, 21 1 47 ,1 04 1 ,1 03 42 ,8 43 3 ,7 80 4 7, 72 6 C os t Sh ar in g Pe rc en ta ge ( C SP ) : Ea ch c en te r pa rt ic ip at in g in a C G IA R R es ea rc h Pr og ra m i s re qu ir ed t o co lle ct a nd p ay t he 2 % C SP o n al l th e bi la te ra l gr an ts . I n ac co rd an ce w ith th e ci rc ul ar is su ed b y th e C G IA R C on so rt iu m , i n M ar ch 2 01 5 ab ou t t he ‘G ui de lin es o n C SP C ol le ct io n’ , i t i s m an da to ry to re m it th e C SP ir re sp ec tiv e of th e fa ct th at th e bi la te ra l d on or d id n ot a gr ee to p ay it , a nd is a cc ou nt ed a s R es ea rc h Ex pe ns es in th e St at em en t o f A ct iv iti es . N ot es to th e fin an ci al s ta te m en ts c on tin ue d on p ag e 30 Financial Statements - 31st December 2014 30 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) (In US Dollars ’000) 18. Computation of Indirect Cost Rates 2014 2013 General & Administration Expenses 4,779 4,313 Research Expenses (Excluding all Collaborator Expenses) 25,979 22,553 Non-CGIAR Collaborator Expenses 4,323 10,657 Total Cost (excluding CGIAR Collaborator Expenses) 30,302 33,210 Indirect cost / Direct (Rate excluding CGIAR Collaborator Expenses) 16% 13% Indirect cost / Direct (Rate excluding all Collaborator Expenses) 18% 19% Recovery of overhead costs represents the amount recovered from restricted projects based on the rates agreed on and as stated in the grant agreements. Over the past years, Collaboration costs, especially Other Collaboration (Non-CGIAR) costs, have increased significantly throughout CGIAR. Hence, the indirect cost rates have been computed on the above bases to give a better presentation. The indirect cost ratios presented above have been computed based on the CGIAR Cost Allocation Guidelines, Financial Guidelines Series, No. 5, final draft of June 3, 2013, and the annual Advisory Note issued by the CGIAR Consortium Office for 2014. Indirect cost rates for 2013 have been re-computed to conform to the presentation of the current year. 19. Net Assets Net assets include both the designated and undesignated reserves. Undesignated: Undesignated reserves represent the accumulated surplus of revenue over expenses. Designated: Designated reserves include below components: Property, Plant and Equipment: This is the net book value of property, plant and equipment as at the reporting date. Capital Acquisition Reserve: This is the reserve for replacement of property, plant and equipment. Crisis Management Reserve: This reserve is set aside to ensure smooth operations and/or transition in the event of any exigencies arising in regional offices and/or headquarters. This reserve will also cover any unforeseen fluctuations in staff liability arising from the defined pension plan for Sri Lankan national staff and long-term payables which are provided for based on actuarial valuation. Strategic Growth/Expansion Reserve: Funds designated to this reserve will facilitate strategic investment in research which is in line with IWMI’s Strategic Plan for which funding may not be available or uncertain or expand its operations into new regions. Notes to the financial statements continued on page 31 Financial Statements - 31st December 2014 31 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) 20. Events after the Reporting Date No events have occurred from the reporting date to the date the financial statements are authorized for issue, which would require adjustment to, or disclosure in, the financial statements. 21. Comparative Figures Certain comparative figures have been reclassified to conform to the presentation of the current year, in order to provide better presentation. Some projects have been re-classified from a Restricted CRP to a Restricted Non-CRP. As reported previously Current Presentation 2013 2014 2013 US$ ‘000 US$ ‘000 US$ ‘000 Statement of Activities Grant Revenue Restricted CRP - Window 3 5,309 1,442 2,339 Restricted CRP - Bilateral 12,924 12,539 12,547 Restricted Non-CRP - Window 3 153 2,473 3,123 Restricted Non-CRP - Bilateral 280 738 657 Expenses by Function Restricted CRP Personnel Costs 11,907 13,211 10,998 CGIAR Collaborator Expenses 10,203 12,023 10,203 Non-CGIAR Collaborator Expenses 10,657 3,104 9,281 Supplies & Services 7,086 8,612 6,628 Travel 1,758 2,029 1,590 Depreciation 91 402 90 Cost Sharing Percentage - 71 40 Indirect Cost Recovery 4,488 4,391 4,013 46,190 43,843 42,843 Restricted Non-CRP Personnel Costs 406 997 1,315 CGIAR Collaboration Costs - - - Other Collaboration - 1,219 1,376 Supplies & Services 5 524 423 Travel - 50 168 Depreciation - 1 1 Cost Sharing Percentage - - - Indirect Cost Recovery 22 420 497 433 3,211 3,780 Notes to the financial statements continued on page 32 Financial Statements - 31st December 2014 32 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) 22. Commitments and Contingent Liabilities There are no commitments and contingent liabilities at the reporting date. 23. Financial Instruments - Fair values and Risk management 23a. Accounting classifications and fair values The following table shows the carrying amounts of financial assets. 2014 2013 US$ ‘000 US$ ‘000 December 31 Loans and receivables Cash and cash equivalents 44,600 24,407 Investments - Short-term 155 35 Accounts Receivable Donors 3,981 8,949 Employees 393 427 Other CGIAR Centers 97 850 Others 1,063 1,485 Other financial liabilities Accounts Payable Donors 20,806 8,339 Employees - current 1,255 1,123 Employees - non-current 3,750 3,320 Other CGIAR Centers 3,182 1,860 Others 3,801 4,164 The carrying values of financial instruments not carried at fair value are a reasonable approximation of fair values, due to short-term maturity, hence the fair value hierarchy does not apply. Notes to the financial statements continued on page 33 Financial Statements - 31st December 2014 33 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) 23b. Financial Risk Management Overview i) Risk Management Framework IWMI’s Board of Governors has overall responsibility for ensuring that an appropriate risk management framework is in place. The management is responsible for the Institute-wide implementation of the risk management system to ensure that risks are identified appropriately, assessed and acted upon in accordance with IWMI’s policies. The risk management system and policies are reviewed regularly to reflect the changes in the market conditions and the Institute’s activities. IWMI ensures minimum risk either by exercising a high degree of control or not being involved in certain high-risk activities. The Board of Governors takes an active role in monitoring the Institute’s risk management strategy, and financial aspects, as well as research strategies and issues. The Board of Governors has adopted a risk management policy that has been communicated to all staff together with a detailed management guideline. The policy includes a framework by which the Institute’s management identifies, evaluates and prioritizes risks and opportunities across the organization; develops risk mitigation strategies that balance benefits with costs; monitors the implementation of these strategies; and reports, in conjunction with finance, administration and internal audit staff, the results to the Board, on an annual basis. The annual statement from the Board Chair addresses the Institute’s risk management strategy, and identifies key areas of risk and processes in place to mitigate such risks. The Institute has exposure to the following risks from its use of financial instruments: 1. Credit risk 2. Market risk 3. Liquidity risk 1) Credit risk Credit risk is the risk that occurs when a counterparty will not meet its obligations under a financial instrument or donor contract, leading to financial losses and arises principally from the Institute’s cash and cash equivalents, investments and accounts receivable. The carrying amount of financial assets represents the maximum credit exposure. The Institute is not exposed to any material concentrations of credit risk other than its exposure to various donors. Donor receivables are reviewed on a monthly basis and regular follow-up actions are carried out to recover the balances due. Receivable balances are monitored on an ongoing basis and provisions are made where necessary for doubtful accounts. IWMI’s exposure to non-recoverability is insignificant. Notes to the financial statements continued on page 34 Financial Statements - 31st December 2014 34 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) Cash and cash equivalents are held with reputable local and international financial institutions with good credit ratings. Investments are made as per the Investment Policy of the Institute. Accordingly, short term investments, cash and cash equivalents are invested in a portfolio to safeguard the funds and with an investment objective of maximizing the returns. IWMI’s investment policy defines the maximum exposure to a single financial institution, in order to ensure diversification of investments. The policy also states the types of instruments in which the funds can be invested and the types in which investment is not permitted. However, the requirement for impairment is analyzed at each reporting date on an individual basis for grant agreements. Fully Performing Past Due Impaired US$ ‘000 US$ ‘000 US$ ‘000 31 December 2014 Accounts Receivable - Donors 3,981 - 47 Accounts Receivable - Employees 393 - - Accounts Receivable - Other CGIAR Centers 97 - - Accounts Receivable - Others 1,063 - 42 5,534 - 89 31 December 2013 Accounts Receivable - Donors 8,949 - 41 Accounts Receivable - Employees 427 - - Accounts Receivable - Other CGIAR Centers 850 - - Accounts Receivable - Others 1,485 - - 11,711 - 41 2) Market Risk Market risk is the risk that occurs due to changes in market prices, such as interest rates and foreign exchange rates, which will affect the Institute’s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters. Currency risk Currency risk is the risk that occurs when the value of a financial instrument fluctuates due to changes in foreign exchange rates. IWMI’s exposure to the risk of changes in foreign exchange rates primarily affect the Institute’s operating activities (when revenue or and expense is denominated in a different currency from the Institute’s functional currency) and bank accounts held in different currencies. In order to mitigate the foreign exchange risks, the Institute matches the currency of payment with the currency of donor funds received, wherever possible. Notes to the financial statements continued on page 35 Financial Statements - 31st December 2014 35 INTERNATIONAL WATER MANAGEMENT INSTITUTE Notes to the Financial Statements - As at December 31, 2014 (contd.) Foreign Currency Sensitivity The following table demonstrates the effect of a reasonably possible change in the US dollar exchange rate, with all other variables held constant, on the net surplus. Change in US$ rate Effect on net surplus (US$ ‘000) 2014 10% 118 2013 10% 113 The movement on the net surplus effect is a result of the cash and cash equivalents denominated in currencies other than the functional currency, (US Dollar). If the US Dollar had strengthened /weakened by 10% against the major operating currencies, with all other variables held constant, there would have been an increase/decrease in the surplus for the year. 3) Liquidity Risk Liquidity risk is the risk that occurs when the Institute may encounter difficulties in meeting the obligation associated with its financial liabilities that are to be settled by delivering cash or other financial assets. One of the investment objectives of the Institute is to manage liquidity, which is to ensure, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions. Financial Statements - 31st December 2014 36 INTERNATIONAL WATER MANAGEMENT INSTITUTE December 31, 2014 (in US Dollars) Supplementary Information Exhibit 1- Grant Revenue Project Name Total Funds Funds Funds Total Total Available Receivable Applicable to Revenue Revenue succeeding years 31.12.2014 31.12.2014 31.12.2014 31.12.2014 31.12.2013 UNRESTRICTED INCOME Government of the Netherlands - - - - 36,745 TOTAL UNRESTRICTED - - - - 36,745 RESTRICTED GRANT INCOME WINDOW 1 & WINDOW 2 CGIAR Fund CRP on Water, Land and Ecosystems (CRP 5) 39,132,197 - 14,051,124 25,081,073 23,773,064 CIAT CRP on Climate Change, Agriculture and Food Security - Center activities (CRP 7) 617,342 589,039 - 1,206,381 1,255,460 CIAT CRP on Climate Change, Agriculture and Food Security - Regional Program Leader South Asia (CRP 7) 753,168 628,982 - 1,382,150 1,396,039 ICARDA CRP on Dryland Systems (CRP 1.1) 607,404 287,538 - 894,942 631,047 ICRISAT Vulnerability - Climate change India (CRP 1.1) (ICARDA) 97,679 - 44,597 53,082 166,342 IFPRI CRP on Policies, Institutions and Markets (CRP 2) 193,464 - 19,755 173,709 100,000 IITA CRP on Humid Tropics (CRP 1.2) 294,166 156,121 - 450,287 398,646 IRRI Organizational activities in the Ekxang Village CSV, Lao PDR (CRP 7) (CIAT) 12,500 6,831 - 19,331 - WORLDFISH CRP on Aquatic Agricultural Systems - L&F scoping mission to Ghana (CRP 1.3) - - - - 5,500 WORLDFISH CRP on Aquatic Agricultural Systems (CRP 1.3) 147,787 453,123 - 600,910 230,770 Subtotal 41,855,707 2,121,634 14,115,476 29,861,865 27,956,868 CRP WINDOW 3 ACIAR Agricultural groundwater use in Laos 1,011,586 - 582,260 429,326 424,237 CANADA Storage development - Nepal - - - - 48,002 CIAT CRP on Climate Change, Agriculture and Food Security - Regional Program Leader South Asia (CRP 7) (EC) - 334,833 - 334,833 - CPWF - CGIAR Challenge Program on Water and Food - - - - 1,831,470 EC Water, land and ecosystems in Africa - 469,510 - 469,510 - USAID AWM technologies 25,548 - 10,107 15,441 34,892 USAID Tajikistan WUAs evaluation 689,721 - 497,304 192,417 - Subtotal 1,726,855 804,343 1,089,671 1,441,527 2,338,601 NON CRP WINDOW 3 CHINA Program support - Government of China - - - - 29,400 INDIA ICAR-Program Support Grant 162,642 - - 162,642 180,574 SOUTH AFRICA Program support grant - - - - 49,000 USAID Enhanced regional food security - Supplement contribution 251,505 - 47,457 204,048 1,582,018 USAID Feed the Future - FY2012/2013 1,010,361 - 192,859 817,502 1,129,639 USAID Feed the Future - FY2013/2014 1,399,440 - 275,881 1,123,559 - USAID Water team secondment 314,506 - 149,050 165,456 153,120 Subtotal 3,138,454 - 665,247 2,473,207 3,123,751 CRP BILATERAL ACIAR AgWater investments in Cambodia - - - - 38,091 ACIAR Assessment - Research needs for EGP - - - - 25,565 ACIAR CC & WSD - Krishna Basin 45,380 - - 45,380 39,934 ACIAR Climate and water 37,820 - 26,155 11,665 49,988 ACIAR Groundwater in Eastern Gangetic Plains 159,374 - 133,187 26,187 - ACIAR GW - Recharge and management 123,079 - 84,517 38,562 105,915 ACIAR Meso-scale watershed development in Andhra Pradesh, India 227,423 - 89,010 138,413 107,298 ACIAR Soil-water management in coastal zones - - - - 48,147 ACIAR Tank irrigation ecosystems - - - - 83,772 ACIAR Water resources mapping, Ganges 208,939 - 98,685 110,254 - ACIAR Watershed management in Andhra Pradesh, India - - - - 28,240 ADB Climate resilience in eco-regions - - - - 2,787 ADB More food with less water 92,463 124,615 - 217,078 49,468 AfDB Procurement of services - Reuse-oriented sanitation - Ghana 127 - - 127 8,092 AfDB Re-optimisation of Akosombo and Kpong 61,948 5,026 - 66,974 42,671 AfDB Reuse-oriented sanitation - Ghana 57,321 - - 57,321 97,801 Africa Rice Center SMART-IV (JAPAN) - - - - 14,153 AusAID Water availability in the Koshi Basin 110,635 49,772 - 160,407 127,955 AUSTRALIA/DFAT Mekong programme on water governance 1,105,662 - 1,105,662 - - Belmont Forum Southern Africa’s Hydro-Economy and Water Security (SAHEWS) - 6,126 - 6,126 - BMBF Urban Food Plus 8,058 1,037 - 9,095 4,879 BMU Infrastructure investments (WISE UP) 189,063 49,623 - 238,686 27,830 CIMMYT Farm systems intensification EGP (ACIAR) 73,090 - 68,358 4,732 - CIP IPWM (GIZ) 3,979 32,908 - 36,887 51,521 CPWF - Australia (AusAID) - Mekong Basin 869,020 - - 869,020 3,026,145 CPWF - CGIAR Challenge Program on Water and Food - Other (Center Own Funds) 2,243,390 - 48,514 2,194,876 888,697 CPWF - IFAD - Grant No: G-I-R-1312-IWMI-CP 229,032 - - 229,032 410,801 CPWF - SIDA: Mekong Dam Development: Dammed if.. - - - - 3,472 Financial Statements - 31st December 2014 37 Project Name Total Funds Funds Funds Total Total Available Receivable Applicable to Revenue Revenue succeeding years 31.12.2014 31.12.2014 31.12.2014 31.12.2014 31.12.2013 CSIRO Water availability in the Koshi Basin 13,891 9,296 - 23,187 - DFID Carbon investment in ecosystems (ALTER) 163,989 - 72,617 91,372 40,707 DFID China Africa international waters 38,662 - - 38,662 - DFID Ecosystems and urban development in India, Nepal 114,865 - 50,111 64,754 - DFID GW for small-scale irrigation in SSA 34,437 5,780 - 40,217 23,898 DFID GW futures in SSA 25,855 - - 25,855 1,632 EC AFROMAISON - Africa at a meso-scale (14,486) 53,876 - 39,390 154,814 EC EAU4FOOD 820 32,321 - 33,141 68,826 EC IMPACT2C 34,104 7,278 - 41,382 46,891 EC SaniPath - - - - 1,878 EC Saph Phani - India (3,633) 25,739 - 22,106 68,997 EC SHARE-ARCE: Bale eco-region 180,425 - 145,151 35,274 - EC WATERBIOTECH 7,955 - - 7,955 24,612 FAO Large-scale ag investment in Africa 1 and 2 20,800 5,200 - 26,000 - FAO Water governance in Asia - - - - 52,048 FiBL Fertile soils for peri-urban agriculture 21,419 - - 21,419 43,452 FINLAND Water security in CA - - - - 57,881 Gates Foundation Biofil independent evaluation 27,836 15,303 - 43,139 - Gates Foundation Developing fortified excreta pellets for use in agriculture - - - - 2,666 Gates Foundation From Waste to Food (Wafo), Ghana 992,284 - 756,591 235,693 107,696 GIZ GlobEProject: Urban Food Plus 184,840 - 105,801 79,039 59,457 GRID Large-scale ag investment in Africa 1 and 2 90,000 - - 90,000 - GTU Pakistan flood data - DoS grant 9,735 - 9,735 - - GTZ Land and water management in South Asia 577,239 - - 577,239 374,379 GWPO Drought monitoring in South Asia region 71,125 - 71,125 - - Howard G. Buffett Foundation Irrigation impacts in West Africa - - - - 121,078 ICAR Livelihood improvement in NE India - - - - (1,679) ICARDA Soil salinity management in Central and Southern Iraq (ACIAR) - - - - 22,268 ICARDA Soil salinity management in Central and Southern Iraq (ACIAR)- Utilization of remaining funds for ACIAR groundwater in Eastern Gangetic Plains 111,519 - 91,045 20,474 - ICARDA Water management in the Nile Delta (ACIAR) 171,269 70,428 - 241,697 158,501 ICIMOD Indus modeling - - - - 32,527 ICRISAT GW and Irrigation in Karnataka (INDIA) 95,265 - 36,671 58,594 4,735 ICRISAT WRG: Karnataka (WORLD BANK) 6,516 - 6,516 - - IDRC Climate change vulnerabilities - - - - 65,742 IFAD IMAWESA 2 126,004 - - 126,004 619,030 IFAD Resource recovery business case 195,817 47,007 - 242,824 191,416 IFAD Smart ICT for weather and water information and advice to smallholders in Africa 184,857 - - 184,857 340,469 IFC Climate-resilient agriculture, Nepal 28,937 - 13,142 15,795 - IFPRI Consolidation of ReSAKSS-SA 547,297 - 73,608 473,689 287,240 IFPRI Flood-recession agriculture in northern Ghana (USAID) 36,000 - 36,000 - - IFPRI The Global Futures and CG Strategic Foresight Program (CRP PIM) (Gates Foundation) 10,000 37,197 - 47,197 - IFPRI Water governance in Pakistan Indus Basin Irrigation Systems (IBIS) (USAID) 18,507 - 3,736 14,771 119,035 IITA Regional special studies (USAID) - - - - 39,589 IITA Sustainable AWM - Ghana (USAID) 108,994 - 33,666 75,328 58,657 ILRI Africa Rising in Ethiopia (USAID) 116,182 53,357 - 169,539 215,412 ILRI Livestock and irrigation value chain (CANADA) 345,351 - 10,460 334,891 313,168 IRC MUS group support - - - - 1,408 IRC Value at the end of the sanitation value chain 50,986 8,733 - 59,719 49,925 IRRI Adaptation of rice-based systems (CLUES) (ACIAR) 9,227 - 6,787 2,440 13,500 IUCN Food security in West Bengal 3,017 - - 3,017 35,550 JAPAN Assessment of water user associations - - - - 813 JAPAN Lowland paddy fields development - - - - 4,121 JAPAN Rice and water management in Africa 1,461 - 1,461 - 18,660 JAPAN Study on maintenance/conservation 620,306 - 266,285 354,021 175,643 JAPAN Water fee collection mechanism 3,140 - 3,140 - 8,464 NETHERLANDS Creating and capturing value: Ghana WASH window 508,905 - 508,905 - - NETHERLANDS Revitalizing irrigation in Pakistan 1,252,342 - - 1,252,342 732,242 NIGERIA AWM solutions in Nigeria 767,974 - 459,697 308,277 - NORWAY/BIOFORSK Climate change adaption program, India 190,925 - 33,719 157,206 150,843 NORWAY/BIOFORSK CLIMAWATER-II RICE - - - - 14,162 NORWAY/NRC Human rights and gender dimensions - - - - 75,935 NORWAY/UMB Politics of IWRM in Africa 61 6,833 - 6,894 46,060 NSF Vulnerabilities and climate change Nepal 17,024 642 - 17,666 15,376 OFID Aquifer recharge Syrdarya Basin 100,260 - - 100,260 487 SWITZERLAND IWRM - Ferghana Valley - Phase VI 24,999 - - 24,999 - SWITZERLAND Resource recovery and safe reuse 750,561 - 290,766 459,795 702,634 SWITZERLAND SADC Seed centre 125,451 - - 125,451 3,749 SWITZERLAND Water productivity improvement at plot level III 8,000 - - 8,000 - SWITZERLAND Zimbabwe small irrigation scheme - - - - 873,063 UNEP Large-scale ag investment in Africa 1 and 2 50,000 70,000 - 120,000 - UNEP MV Ecosystem-hydrological functions 17,818 - - 17,818 65,807 UNESCO Lift irrigation areas in CA - - - - 10,000 UNESCO SINBAD - - - - 10,627 UNOPS Improve food security and livelihoods 48,939 - 5,795 43,144 331,051 UOB MS Students - Support (Reuse-oriented sanitation - Ghana) - - - - 5,348 USAID AWM solutions in SSA 491,446 118,726 - 610,172 17,454 USAID Fecal sludge and urine reuse in agriculture 136,639 - 66,501 70,138 32,222 USAID Groundwater governance in the Arab world 240,435 12,497 - 252,932 23,980 USAID Innovation in gender equality Nepal 34,551 8,973 - 43,524 - USAID Linkage fund - - - - 13,909 Financial Statements - 31st December 2014 38 Project Name Total Funds Funds Funds Total Total Available Receivable Applicable to Revenue Revenue succeeding years 31.12.2014 31.12.2014 31.12.2014 31.12.2014 31.12.2013 USDA Pakistan water dialogue 196,167 21,456 - 217,623 - USDA Role of water resources in prospects for Indian agriculture 101,931 2,507 - 104,438 57,452 WORLD BANK Climate change and hydropower workshop 13,064 - - 13,064 - WORLD BANK Composting case studies 7,800 17,500 - 25,300 - WORLD BANK Water productivity synthesis 23,954 95,381 - 119,335 - WorldFish Chinyanja (BMZ) (47,374) 47,374 - - 40,872 WRC Groundwater availability SA 13,753 4,777 - 18,530 - ZEF Improving irrigation water use - - - - 15,463 Subtotal 16,304,242 1,047,288 4,813,119 12,538,411 12,547,064 NON CRP BILATERAL FRANCE Staff secondment - Yvan Altchenko 143,975 - - 143,975 137,150 GIZ Program support grant 350,773 - - 350,773 376,789 ITC LIMITED Industrial water use in Godavari Basin 30,000 54,394 - 84,394 - SIW Capacity building program for young scientists 149,975 - 122,785 27,190 - ZEF Secondment - Boubacar Barry (WASCAL) 131,974 - - 131,974 142,806 Subtotal 806,697 54,394 122,785 738,306 656,745 SUBTOTAL RESTRICTED 63,831,955 4,027,659 20,806,298 47,053,316 46,623,029 GRAND TOTAL 63,831,955 4,027,659 20,806,298 47,053,316 46,659,774 Financial Statements - 31st December 2014 39 INTERNATIONAL WATER MANAGEMENT INSTITUTE December 31, 2014 (in US Dollars) Supplementary Information Exhibit 2 - Restricted Grants Donor & Program/Project Grant Period Total E X P E N D I T U R E Start End Pledged Prior Years 2014 Total US$ US$ US$ US$ ACIAR Agricultural groundwater use in Laos 01-Aug-12 31-Jul-16 1,978,882 460,208 429,326 889,534 ACIAR CC & WSD - Krishna Basin 01-Apr-10 31-Dec-14 179,617 134,237 45,380 179,617 ACIAR Climate and water 06-Jun-12 31-Dec-15 100,401 62,581 11,665 74,246 ACIAR Groundwater in Eastern Gangetic Plains 01-Sep-14 31-Aug-18 1,031,745 - 26,187 26,187 ACIAR GW - Recharge and management 01-Sep-11 30-Jun-15 436,217 278,801 38,562 317,363 ACIAR Meso-scale watershed development in Andhra Pradesh, India 01-Jun-09 31-May-15 730,883 503,460 138,413 641,873 ACIAR Water resources mapping, Ganges 04-Mar-14 30-Jun-15 225,380 - 110,254 110,254 ADB More food with less water 06-Aug-13 30-Apr-15 394,276 49,468 217,078 266,546 AfDB Procurement of services - Reuse-oriented sanitation - Ghana 01-Jan-12 14-Dec-14 24,428 24,301 127 24,428 AfDB Re-optimisation of Akosombo and Kpong 01-Aug-13 31-May-15 144,654 42,671 66,974 109,645 AfDB Reuse-oriented sanitation - Ghana 13-Jan-11 31-Dec-14 364,329 307,008 57,321 364,329 AusAID Water availability in the Koshi Basin 01-Feb-13 31-Mar-15 318,220 127,955 160,407 288,362 Belmont Forum Southern Africa’s Hydro-Economy and Water Security (SAHEWS) 01-Dec-14 30-Jun-15 11,766 - 6,126 6,126 BMBF Urban Food Plus 01-Apr-13 31-Mar-16 28,618 4,879 9,095 13,974 BMU Infrastructure investments (WISE UP) 01-Aug-13 31-Jul-17 1,151,489 27,830 238,686 266,516 CIAT CRP on Climate Change, Agriculture and Food Security - Regional Program Leader South Asia (CRP 7) (EC) 01-Jan-13 31-Dec-15 669,340 - 334,833 334,833 CIMMYT Farm systems intensification EGP (ACIAR) 12-May-14 30-Jun-15 115,906 - 4,732 4,732 CIP IPWM (GIZ) 01-Mar-12 31-Mar-15 150,318 101,669 36,887 138,556 CPWF - Australia (AusAID) - Mekong Basin 01-Jun-11 30-Jun-14 5,619,869 4,750,849 869,020 5,619,869 CPWF - IFAD - Grant No: G-I-R-1312-IWMI-CP 07-May-12 30-Jun-14 1,000,000 770,968 229,032 1,000,000 CPWF - Other (Center Own Funds) 01-Jan-14 31-Dec-14 2,194,876 - 2,194,876 2,194,876 CSIRO Water availability in the Koshi Basin 01-Feb-13 15-Jan-15 23,187 - 23,187 23,187 DFID Carbon investment in ecosystems (ALTER) 01-Jul-13 30-Jun-16 403,908 40,707 91,372 132,079 DFID China Africa international waters 12-Feb-14 31-May-14 38,662 - 38,662 38,662 DFID Ecosystems and urban development in India, Nepal 01-Feb-14 31-Jan-16 225,947 - 64,754 64,754 DFID GW for small-scale irrigation in SSA 15-Jul-13 14-Jul-14 64,115 23,898 40,217 64,115 DFID GW futures in SSA 01-Jul-13 30-Jun-14 27,487 1,632 25,855 27,487 EC AFROMAISON - Africa at a meso-scale 01-Mar-11 31-May-14 443,274 403,884 39,390 443,274 EC EAU4FOOD 30-Jun-11 30-Jun-15 271,964 183,341 33,141 216,482 EC IMPACT2C 01-Oct-11 30-Sep-15 125,025 73,989 41,382 115,371 EC Saph Phani - India 01-Oct-11 30-Sep-14 191,141 169,035 22,106 191,141 EC SHARE-ARCE: Bale eco-region 08-Jul-14 07-Nov-17 857,208 - 35,274 35,274 EC Water, land and ecosystems in Africa 28-Jan-14 31-Dec-16 3,403,841 - 469,510 469,510 EC WATERBIOTECH 01-Aug-11 31-Jan-14 113,300 105,345 7,955 113,300 FAO Large-scale ag investment in Africa 1 and 2 10-Mar-14 30-Nov-14 26,000 - 26,000 26,000 FiBL Fertile soils for peri-urban agriculture 01-Jun-11 31-Oct-14 94,475 73,056 21,419 94,475 FRANCE Staff secondment - Yvan Altchenko 01-Mar-11 31-Dec-14 538,850 394,875 143,975 538,850 Gates Foundation Biofil independent evaluation 03-Jan-14 31-Mar-16 73,025 - 43,139 43,139 Gates Foundation From Waste to Food (Wafo), Ghana 13-Mar-13 29-Apr-16 1,100,000 107,696 235,693 343,389 GIZ GlobEProject: Urban Food Plus 01-May-13 30-Apr-16 353,949 59,457 79,039 138,496 GIZ Program support grant 01-Jan-14 31-Dec-14 350,773 - 350,773 350,773 GRID Large-scale ag investment in Africa 1 and 2 10-Mar-14 31-Dec-14 90,000 - 90,000 90,000 GTZ Land and water management in South Asia 01-Apr-10 31-Mar-14 1,589,144 1,011,905 577,239 1,589,144 ICARDA Soil salinity management in Central and Southern Iraq (ACIAR) - Utilization of remaining funds for ACIAR groundwater in Eastern Gangetic Plains 01-Sep-14 31-Aug-18 111,519 - 20,474 20,474 ICARDA Water management in the Nile Delta (ACIAR) 01-Sep-12 30-Jun-15 473,196 158,501 241,697 400,198 ICRISAT GW and Irrigation in Karnataka (INDIA) 01-Apr-13 31-Mar-17 250,000 4,735 58,594 63,329 IFAD IMAWESA 2 02-Jun-10 31-Mar-14 1,455,623 1,329,619 126,004 1,455,623 IFAD Resource recovery business case 17-Jun-11 30-Sep-14 650,000 387,937 242,824 630,761 IFAD Smart ICT for weather and water information and advice to smallholders in Africa 11-Feb-11 30-Mar-14 1,739,134 1,554,277 184,857 1,739,134 IFC Climate-resilient agriculture, Nepal 01-Aug-13 31-May-17 57,915 - 15,795 15,795 IFPRI Consolidation of ReSAKSS-SA 01-Jan-11 31-Dec-15 1,738,265 924,809 473,689 1,398,498 IFPRI The Global Futures and CG Strategic Foresight Program (CRP PIM) (Gates Foundation) 14-Aug-14 31-Dec-14 47,197 - 47,197 47,197 IFPRI Water governance in Pakistan Indus Basin Irrigation Systems (IBIS) (USAID) 01-Dec-12 30-Jun-15 281,760 122,373 14,771 137,144 IITA Sustainable AWM - Ghana (USAID) 15-Jun-13 31-Mar-15 200,000 58,657 75,328 133,985 ILRI Africa Rising in Ethiopia (USAID) 01-Mar-13 30-Jun-15 334,154 215,412 169,539 384,951 ILRI Livestock and irrigation value chain (CANADA) 01-Apr-13 31-Dec-17 1,008,002 313,168 334,891 648,059 INDIA ICAR-Program Support Grant 01-Jan-14 31-Dec-14 162,642 - 162,642 162,642 IRC Value at the end of the sanitation value chain 01-May-13 28-Feb-15 140,474 49,925 59,719 109,644 IRRI Adaptation of rice-based systems (CLUES) (ACIAR) 01-Jan-12 30-Jun-15 44,016 28,225 2,440 30,665 ITC LIMITED Industrial water use in Godavari Basin 05-Mar-14 04-Mar-15 100,000 - 84,394 84,394 IUCN Food security in West Bengal 01-Feb-13 30-Apr-14 38,567 35,550 3,017 38,567 JAPAN Study on maintenance/conservation 01-Jul-12 31-Mar-15 878,582 258,276 354,021 612,297 NETHERLANDS Revitalizing irrigation in Pakistan 01-Dec-10 30-Nov-14 3,497,807 2,245,465 1,252,342 3,497,807 NIGERIA AWM solutions in Nigeria 01-Jan-14 30-Nov-16 2,189,243 - 308,277 308,277 NORWAY/BIOFORSK Climate change adaption program, India 18-Jun-12 30-Apr-16 466,618 191,562 157,206 348,768 NORWAY/UMB Politics of IWRM in Africa 01-Apr-12 31-Dec-14 60,301 53,407 6,894 60,301 NSF Vulnerabilities and climate change Nepal 01-May-13 31-Aug-15 36,000 15,376 17,666 33,042 OFID Aquifer recharge Syrdarya Basin 01-Sep-13 31-Dec-14 100,747 487 100,260 100,747 SIW Capacity building program for young scientists 26-Sep-12 31-Dec-15 149,975 - 27,190 27,190 Financial Statements - 31st December 2014 40 Donor & Program/Project Grant Period Total E X P E N D I T U R E Start End Pledged Prior Years 2014 Total US$ US$ US$ US$ SWITZERLAND IWRM - Ferghana Valley - Phase VI 01-Mar-12 31-Dec-14 380,540 355,541 24,999 380,540 SWITZERLAND Resource recovery and safe reuse 01-Dec-11 30-Jun-15 1,859,367 1,063,889 459,795 1,523,684 SWITZERLAND SADC Seed centre 01-Dec-11 31-May-14 549,705 424,254 125,451 549,705 SWITZERLAND Water productivity improvement at plot level III 01-Mar-12 31-Dec-14 313,261 305,261 8,000 313,261 UNEP Large-scale ag investment in Africa 1 and 2 10-Mar-14 30-Nov-14 120,000 - 120,000 120,000 UNEP MV Ecosystem-hydrological functions 15-Feb-13 31-Oct-14 83,625 65,807 17,818 83,625 UNOPS Improve food security and livelihoods 01-Jan-13 31-Dec-15 399,990 331,051 43,144 374,195 USAID AWM solutions in SSA 06-Nov-13 30-Jun-18 1,352,768 17,454 610,172 627,626 USAID AWM technologies 01-Jan-13 31-Dec-15 60,443 34,892 15,441 50,333 USAID Enhanced regional food security - Supplement contribution 01-May-12 30-Sep-15 2,064,814 1,813,309 204,048 2,017,357 USAID Fecal sludge and urine reuse in agriculture 01-Aug-13 31-Jul-16 168,861 32,222 70,138 102,360 USAID Feed the Future - FY2012/2013 01-Jan-13 30-Sep-15 2,140,000 1,129,639 817,502 1,947,141 USAID Feed the Future - FY2013/2014 01-Jan-14 30-Sep-15 1,399,440 - 1,123,559 1,123,559 USAID Groundwater governance in the Arab world 24-Sep-13 23-Sep-16 983,529 23,980 252,932 276,912 USAID Innovation in gender e