INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS 
31 DECEMBER 2006 
I 
Quality In Everything We Do 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS. - 31 DECEMBER 2006 
CONTENTS Page No. 
Statement of purpose 
Report of the auditors 
Statement of financial position 
Statement of activities 
Statement of changes in net assets 5 
Statement of cash flows 6 
Accounting policies 7-11 
Notes to the financial statements 12-24 
Supplementary information 27 - 37 
International 
Water Management 
I n s t i t u t e  STATEMENT OF THE BOARD CHAIR 
2006 in general .... In 2006 IWMI developed a strategic alliance with WorldFish, as agreed by 
both Boards in late 2005. The two centers developed a joint venture agreement and business plan 
for their shared services, and established their joint venture as International Research Support 
Services, IRSS. At IWMI, implementation of the strategic alliance meant structural changes in the 
corporate services department, implementation of SAP, development of a shared HR platform 
(HR4U), best practice sharing and a host of joint projects with WorldFish. In addition, 2006 was 
also the year in which the Third External Program and Management Review of the Institute took 
place. 
2006 Financials in particular. ... I W M I a imed to add a substantial amount of funds to reserves in 
2006 and had budgeted a surplus of at least US500 thousand. When various shifts in funding 
became apparent during the year that made such a surplus less likely, the Institute operated an 
“expenditure-stop” for all non-essential expenditures during the last quarter. This put the institute 
back on track for a healthy surplus, exceeding the 500K target. Unfortunately, the nondelivery of 
the 2006 EU-support which materialized at year-end, changed that large surplus into a small deficit 
over the year of US$llOK. That final reduction changed the landscape of an otherwise very good 
financial year. In 2006, LMWI recorded total revenue of $23.5 million excluding Non-IWMI 
Challenge Program Water and Food revenues. The revenue included $8.6 million of unrestricted 
funding and other Income; marginally higher than in 2005 and, $14.9 million of restricted funding. 
Total Institute expenses were recorded at $23.6 million with a resultant deficit of $0.1 million. 
M I ’ S 2 006 overheads and personnel costs were at the 2005 level and the cash balances remains 
healthy. 
Past years ....D uring the period 2000-2006,I MWI’s unrestricted funding grew at a compounded 
annual growth rate (CAGR) of 13% and 2006 was the year of consolidation of the growth of the 
past years. While the revenues more than trebled, expenses grew at a similar rate with the income to 
accommodate the growth and expansion. IWMI’s overhead as a percentage of total costs remained 
at 17% in 2006 as compared 23% for 2001 and 29% for 2000. This is by and large the result of a 
relatively low increase in support function cost in comparison to the increase in operations that 
more than trebled in the past years. 
Financial Indicators.. ..CGIAR has developed four parameters to measure financial health of the 
centers. These are - Long term financial stability (recommended range 75-90 days), short term 
solvency (recommended range 90-120d ays), Efficiency of Operations (Indirect cost to Direct cost) 
and Cash Management on restricted operations ratio. IWMI’s long term financial stability ratio is 
64 days at the ‘end of 2006 mainly due to reduced finding from major donor and short term 
solvency ratio is at 100 days. 
Beginning 2007, the CGIAR will introduce two new financial indicators namely - Efficiency of 
Operations (Indirect cost to Direct cost) and Cash Management on restricted operations ratio 
(Restricted Donor receivables/ Restricted Donor payables). IWMI’s indirect cost ratio is at 21% and 
donor receivabldpayable ratio is at 0.30. 
On behalf of the members of the Board, I wish to thank 1WMI’s investors and partners for their 
continued support and commitment to the work of IWMI. 
Mailing Address: P 0 Box 2075 Location: 127. Sunil Mawatha, Tel: 94-11-2787404.2784080 E-mail: iwmi@cgar.org 
Colombo, Sri Lank Pelawalta. Baltaramulla. Sri Lanka Fa: 94-1 1-2786854 Website: www.iwmi.org 
International 
Water Management 
I n s t i t u t e  
MANAGEMENT STATEMENT OF RESPONSIBILITY FOR 
FINANCIAL REPORTING 
The accompanying financial statements of the International Water Management 
Institute (IWMI), for the year ended December 31, 2006 and 2005 are the 
responsibility of the management. IWMl management also claims responsibility 
for the substance and objectivity of the information contained therein. 
Our financial reporting practices follows the “Accounting Policies and Reporting 
Practices Manual - Financial Guidelines Series No. 2” of the CGIAR. 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 management‘s authorization. 
A system of reporting within the Institute present the management with an 
accurate view of the operations, enabling us to discern risks to our 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 Trustees exercises its responsibility for these financial statements 
through its Finance and Audit committee. The committee meets regularly with 
management and representatives of the external auditors to review matters 
relating to financial reporting, internal controls and auditing. 
Director CGporate Services 
Mailing Address: P 0 Box 2075 Location: 127, Sunil Mawalha. Tel: 94-11-2787404,2784080 E-mail: iwmi@cgiar.org 
Colombo, Sri Lanka Rlawatta. Ballaramulla. Sri Lanka Fa: 94-1 1-2786854 Website: ww.iwrni.org 
Page 1 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Statement of Purpose 
The Center was established in Sri Lanka in 1985 by an Act of Parliament as an autonomous, non- 
profit international research organization. 
IWMl will target its existing and on-going activities to correspond with the four blocks of the new 
research framework, namely: 
9 Water Productivity Mapping 
9 Water Poverty Mapping 
9 Assessing High Potential Interventions 
9 Assessing Impacts 
IWMl’s research is organized around four themes, namely: 
9 Basin Water Management 
9 Land, Water and Livelihoods 
9 Agriculture, Water and Cities 
P Water Management and Environment 
IWMI has research projects running in 21 countries in Asia and Africa. Work is coordinated 
through regional offices located in India, Pakistan, South Africa, Sri Lanka and Malaysia. The 
Institute has subregional offices in China, Nepal, Ghana, Ethiopia, Laos, Vietnam and Uzbekistan. 
The Institute has a multidisciplinary approach to water management research. Most of IWMl’s 
research combines the expertise of economists, agronomists, hydrologists, engineers, 
sociologists, management specialists and health researchers. The research team is composed of 
approximately 11 2 scientists from 32 different countries. 
IWMl is a member of the Future Harvest group of agricultural and environmental research centers. 
It receives its principal funding from 62 governments, private foundations, and international and 
regional organizations known as the Consultative Group on International Agricultural Research 
(CGIAR) which contribute to poverty eradication. 
a Chartered Accountants Telephone : (0) 11 2463500 
201 De Saran1 Place Fax Gen : (0) 11 2697369 
P. 0. Box 101 Tax : (0) 11 5578180 
Colombo 10 E-Mail : eysl@lk.ey.com 
Sri Lanka 
Report of the auditors 
To the Board of Governors a International Water rlanagement Institute 
We have audited the accompanying statement of the financial position of International Water 
Management Institute as at 3lS December 2006 and the related statement of activities, changes in 
net assets and cash flows for the year then ended, together with the accounting policies and notes 
as set out on pages 3 to 24 
Respective Responsibilities of the Institute’s Management and Auditors 
The Institute’s management is responsible for preparing and presenting these financial statements 
in accordance with the recommendations made in the Consultative Graup for International 
Agricultural Research (CGIAR) Financial Guidelines Series No.2-CGIAR Accounting Policies 
and Reporting Practices Manual (revised March 2004). Our responsibility is to express an opinion 
on these financial statement;, based on our audit. 
’ Basis of opinion 
We conducted our audit in accordance with the International Sthndards on Auditing, which 
require that we plan and perfom the audit to obtain reasonable assurance about whether the said 
financial statements are free from material misstatement. An audit includes examining, on a test 
basis, evidence supporting the amounts and disclosures in the said financial statements, assessing 
the accounting principles used and significant estimates made by the Institute‘s management, 
evaluating the overall presentation of the financial statements, and qetermining whether the said 
financial statements are prepared and presented in accordance with th’e recommendations made in 
the CGIAR Guidelines. We have obtained all the information and explanations which to the best 
of our knowledge and belief were necessary for the purposes of our audit. W e  therefore believe 
that our audit provides a reasonable basis for our apinion. 
Opinion 
In our opinion, so far as appears from our examination, the Institut,e maintained proper books of 
account for the year ended 31” December 2006, and to the best of our information and according 
to the explanations given to us, the said financial position and related statements of activities, 
changes in net assets, cash flows and the accounting policies and notes thereto; ‘which are in 
agreement with said books and have been prepared and presented in accordance with the 
recommendations made in the CGIAR Financial Guidelines Series No 2-CGIAR Accounting 
Polices and Reporting Practices Manual (revised March 2004) and give a true and fair view of the 
Institute’s state of affairs as at 31” December 2006 and of its activities and cash flows for the year 
then ended. Supplementary infomation on pages 25 to 37 are not a required part of the financial 
to audit procedures applied in the audit of the financial 
statements. 
c 
Colombo 
16 ’hM arch 2006 
Partners : A D B Talwatte FCA FCMA T K Bandaranayake FCA M P D Cooray FCA FCMA 
Ms. Y A De Silva ACA W R H Fernando FCA FCMA W K B S P Fernando FCA ACMA 
A P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond) 
A S M Ismail FCA FCMA H M A Jayesinghe FCA FCMA Ms. G G S Manatunga ACA 
Ms. L C G Nanayakkara FCA FCMA 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Statement of Financial Position 
December 31,2006 and 2005 
(In US Dollars'000) 
Notes 2006 2005 
us$looo US$'OOO 
A S S E T S  
Current Assets 
Cash and cash Equivalents 1 9,078 13,441 
Accounts Receivable: (Net of $15 0,000 allowance for 
doubtful accounts) 
Donor 2 2,188 3,121 
Employees 3 532 402 
Other CGIAR Centers 4 57 561 
Others 5 1,869 1,280 
Inventories 6 49 43 
Prepaid Expenses 7 116 183 
Total Current Assets 13,890 19,031 
Non-Current Assets 
Property, Plant and Equipment, net 8 2,516 2,098 
TOTAL ASSETS 16,406 21, I2 9 
LIABILITIES AND NET ASSETS 
Current Liabilities 
' Accounts Payable 
Donor 9 3,705 5,276 
Employees 10 110 98 
Other CGIAR Centers 11 57 351 
Others 12 835 1,099 
Amount held for Challenge Program 13 2,708 5,946 
Accruals 132 34 
Total Current Liabilities 7,546 12,804 
NON CURRENT LIABILITIES 
Accounts Payable 
Employees 14 2,302 1,656 
Total Non Current Liabilities 2,302 1,656 
Total Liabilities 9.848 14,460 
Net Assets 
Unrestricted 
Designated 3,180 3,180 
Undesignated 3,378 3,489 
Total Net Assets 6,558 6,669 
TOTAL LIABILITIESA ND NET ASSETS 16,406 21,129 
..........) Director General 
The accounting policies on pages 7 to 11 and notes on pages 12 to 24 form an integral part of the financial s 
INTERNATIONALW ATER MANAGEMENT INSTITUTE 
Statement of Activities 
For the Years Ended December 31.2006 and 2005 
(In US Dollars'000) 
Notes Unrestricted Restricted Challenge Total Total 
Prosrams -2006  -2005  
Revenue and Gains 
Grant Revenue Exhibit 1 8.131 9.250 5.677 23.059 24.037 
Other Revenue and Gains 15 484 484 455 
Total Revenue and Gains 8,615 9,250 5.677 23.543 24.492 
Expenses and Losses 
Program Related Expenses 16 5,877 9,250 5.677 20,804 20.581 
Management and General Expenses 4,094 4.094 4.483 
Total Expenses and Losses 9,971 9.250 5,677 24.898 25,064 
Indirect Cost Recovery (1,246) (1,246) (1,005) 
Total Expenses and Losses 18 8.725 9.250 5.677 23.652 24.059 
NET SURPLUS I (DEFICIT) (110) (110) 433 
Expenses by Natural Classificatin 
1. Personnel Cost 6.226 4.320 1,960 12,506 12,387 
2. Supplies and Services 2.018 921 2,632 5.571 6,421 
3. Traveling 1.212 1,280 1,086 3,578 2,002 
4. Collaborations - Partnerships 113 2.640 2,753 3,762 
5. Depreciation 402 89 491 492 
Total 9.971 9,250 5,677 24.898 25.064 
The accounting policies on pages 7 to 11 and notes on pages 12 to 24 form an integral part of the financial statements 
INTERNATIONALW ATER MANAGEMENT INSTITUTE 
Changes in Net Assets 
For the year ended December, 31 2006 
(In US Dollar '000) 
Undesignated Designated TOTAL 
Flxed Other Sub 
Assets Designated Total 
Balance as at January 1,2005 3.055 2,050 1,149 3,199 6.254 
Net changes in investment in fixed assets 48 167) (19, (19 
Net Surplus 2005 433 433 
Balance as at December 31,2005 3,488 2.098 1,082 3.180 6,668 
Net changes in investment in fixed assets 41 8 (418) - 
Net Surplus I ( Deficit ) 2006 (1 10) (110: 
Balance as at December 31,2006 I 3,378 I 2,516 I 664 I 3.180 6.558 
The' accounting 12 to 24 form an integral part of the financial statements 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Statement of Cash Flows 
For the Years ended December 31,2006 and 2005 
(In US Dollars'OW) 
2006 2005 
uss'ooo U S ~ O O O  
Cash flows generated froml(used in) operating activities 
Change in net assets 
Adjustments to reconcile change in net assets to net cash 
provided by operating activities : 
Depreciation 
Loss on disposal of property and equipment 
(Increase) I decrease in Assets : 
Accounts receivable m502 p769l  
Inventories 
Prepaid expenses 67 104 
779 (2,564) 
Increase in Liabilities : 
Accounts payable 
Accruals 
Net cash generated from operating activities 
Cash flows used in investing activities 
Acquisition of property and equipment 
Proceeds from disposal of property and equipment 
Net cash used in investing activities 
Cash flows generated from financing activities 
Increase in long term liabilities 
Account payable 
Employees 
Net cash generated from financing activities 646 (3) 
NET INCREASE IN CASH & CASH EQUIVALENTS (4,363) (1,572) 
CASH AND CASH EQUIVALENTS: 
At start of year 13,441 15.01 3 
At end of year 9,078 13,441 
The accounting policies on pages 7 to 11 and notes on pages 12 to 24 form an integral part of the financial statements 
Page 7 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Accounting Policies 
The principal accounting policies adopted in the preparation of these financial statements are set 
out below: 
1 Preparation and Presentation of Financial Statements 
The financial statements are prepared and presented in accordance with the recommendations 
made in the CGlAR Financial Guidelines Series, No.2: Accounting Policies and Reporting 
Practices Manual March 2004.( Updated February 2006 ) 
The financial statements are prepared under the historical cost convention. 
2 Foreign Currencies 
Transactions denominated in currencies other than reporting currency, US Dollars, are translated 
to US Dollars at the rates of exchange prevailing at the beginning of the month in which the 
transaction took place. 
Monetary assets and liabilities expressed in currencies other than US Dollars are translated to US 
Dollars at the rates of exchange prevailing at the balance sheet date. Nonmonetary items 
denominated in foreign currency which are carried at cost are reported using the exchange rate at 
the date of the transaction. 
All exchange gains or losses resulting from such translations are treated as other revenues and 
support or other losses and expenses in the statement of activities. 
3 Revenue 
Revenue is the gross inflow of economic benefits during the period arising in the course of the 
ordinary activities of a Center where those inflows result in increase in net assets. 
Grants to the Centre may be categorized as either unrestricted or restricted. 
Restricted Grants 
Restricted grants refer to the revenue arising from a transfer of resources to the Center in return 
for past or future compliance relating to the activities of the Center. 
Page 8 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Accounting Policies (contd..) 
3 Restricted Grants (contd..) 
Restricted grants as well as conditional promises to give grants are recognized as revenue only 
upon or until the conditions relating to its operating activities have been substantially met or the 
donor has explicitly waived the conditions. 
Revenue includes only the gross inflow received and receivable by the Center on its own account. 
Gross inflow of economic benefits include amounts collected on behalf of the principal and which 
do not result in an increase in the net assets are treated as "Agency Transactions" and are not 
recognized as revenue. Revenue is treated as the amount of any commission or management fee 
received. 
When the outcome of a transaction involving the rendering of services can be measured reliably, 
revenue associated with the transaction is recognized by reference to the stage of completion of 
the transaction at the balance sheet date. 
When the outcome of the transaction cannot be estimated reliably, revenue should be recognized 
only to the extent of the expenses recognized that are recoverable. 
Cash grants are recorded at the face value of the cash received or the US dollar equivalent. 
Grants in kind are recorded at the fair value of the assets (or services) received or promised, or fair 
value of the liabilities satisfied. 
4 Other Revenues 
Other revenues and gains are recognized in the period in which they are earned. 
5 Expenses 
Expenses are recognized when 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. 
6 Taxation 
The Centre is exempt from income tax under the provisions of Section 8 of the Inland Revenue Act 
No.28 of 1979 of Sri Lanka. The Centre 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). 
Page 9 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Accounting Policies (contd..) 
7 Inventories 
Inventories are valued at the lower of acquisition cost or net realizable value and charged when 
used. The acquisition cost includes the purchase price plus cost of freight, insurance and handling 
charges. Cost is determined by the First In First Out (FIFO) method. 
Provision is made where necessary for obsolete, slow moving and defective items. 
8 Property, Plant and Equipment 
All individual tangible assets of US$ 500 or over in cost with an estimated useful life beyond one 
year are treated as fixed assets and designated property, plant and equipment. These are stated at 
cost. The cost of an item comprises its purchase price and all other incidental cost in bringing the 
asset to its working condition for its intended use. 
Property, plant and equipment acquired through the use of grants restricted for a certain project 
should be recorded as assets. Such assets are depreciated at a rate of 100% and the depreciation 
expense charged directly to the appropriate restricted project. 
Depreciation is recognized for all property, plant and equipment owned by the Center based on the 
full acquisition cost of the property, plant and equipment, net of salvage value. 
The straight-line method of depreciation is applied consistently from period to period unless altered 
circumstances justify a change. 
The principal annual rates used for this purpose are: 
Heavy-duty equipment - 7 years 
Office and household furniture, fixtures, 
Research and office equipment - 5 years 
Vehicles - 5 years 
Computer software - 3 years 
Computer hardware - 3 years. 
When property, plant and equipment are sold, the cost as well as the accumulated depreciation is 
removed from the books; any gain or loss from the sale is charged as other gains or losses. 
Depreciation of required assets is charged in the month the asset was placed in operation and is 
continued until the asset is fully depreciated or its use was discontinued. 
Page 10 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Accounting Policies (contd..) 
8 Property, Plant and Equipment 
. 
Subsequent expenditure relating to property, plant and equipment that has already been 
recognized are only added to the carrying amount of the asset when the expenditure improves the 
condition of the net asset beyond its original assessed standards of performance. All other 
subsequent expenditure is recognized as an expense in the period in which it is incurred. 
The initial lease agreement with IWMl and Government of Sri Lanka is for 25 years commencing 
from 1990. IWMl has the right to negotiate for extension of the lease period under the lease 
agreement upon the expiry of the current lease. 
Leasehold property and improvements thereon are amortised over the lease period or if shorter, 
the useful economic life of the property or improvement concerned. 
9 Receivables 
Receivables are stated at the amounts they are estimated to realize. 
When an Accounts Receivable - Donor, was deemed doubtful of collection, a provision is made 
based on past experiences and on continuing review of receivable aging reports and other 
relevant factors. 
10 Terminal Benefits 
(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 3 
Full years of continuous service. Provision is made for "Severance" payable for all 
International staff members. 
. Gratuity 
Provision is made in the financial statements for gratuity benefits payable under the 
Centre's personnel policies to the nationally recruited staff. Nationally recruited staff 
qualify for gratuity on the completion of 5 years continuous service with the Centre. It is 
the policy of the Centre to recognize the liability for such benefits payable from the date of 
employment. 
Page 11 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Accounting Policies (contd..) 
(b) Repatriation 
In accordance with the terms and conditions of recruitment, internationally recruited staff members 
are entitled to repatriation benefits on the completion of contract period. Provision is made for 
repatriation payable for all international staff members based on the estimated cost of air fare, 
relocation charges, and freight charges. 
(c) Unutilired Leave 
Provision is made in the financial statements for unutilized leave to the internationally and 
nationally recruited staff members in accordance with Personal Policies ‘Manual in the following 
bases: 
International staff - maximum of 48 days based on current salary 
National staff - maximum of 35 days based on current salary 
I 1  NetAssets 
Net assets are classified as either undesignated or designated. All of Centre’s net assets are 
undesignated. 
(a) Undesignated - include those net assets that are not designated by the Center 
Management for a specific purpose: 
(b) Designated - include those net assets that have been designated by Center Management 
for specific purposes, such as a reserve for the future acquisition of property and equipment. 
INTERNATIONAL WATER MANAGEMENT INSmC)TE 
Notes to the financial statements - 31 December 2006 
Cash 8 Cash Equlvalents 2006 2005 
1 uss'ooo usf'ooo 
Interest bearing accounts 9,071 13,433 
Others 7 8 
9,078 13.441 
Receivables - Donors 2006 2005 
2 uss'ooo usf'ooo 
Restricted funds I, 892 2.743 
Unrestricted funds 446 478 
2,338 3.221 
Allowance for doubtful accounts (150) (10 0) 
2,188 3,121 
Recelvables - Employees 2006 2005 
3 USs'000 usf'ooo 
Receivables - international staff 17 0 
Receivables - national staff 112 
Travel advances - international staff 
Travel advances - 3 
national staff 7 
Loans - lntemalional staff 70 
Loans - national staff 40 
Receivables Employees 532 
Other advances - national staff 
532 402 
Notes to the financial statements continued on page 13 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the flnanclal statements - 31 December 2006 (contd) 
Other CGlAft Centers 2006 2005 
4 US$~OO us6'000 
IPGRUICARDAIIFPRUCIFOR 142 
IFPRI 5 
ICLARM 42 
IPGRI 10 
IRRl 168 
ICRAF 6 
ICRISAT 75 
ILRl 92 
CIMMYT 78 
57 561 
Receivables - Others 2006 2005 
5 ust'ooo ust'ooo 
Projed advances 349 276 
AIARC salaries 44 
Other international organizations 505 
Challenge Program 494 363 
GWP and Other advances 30 1 
Consultants 161 
Vendors 201 
Collaborators 283 
Other receivables 11 
Insurance daims 1 
1.869 ?,280 
Inventories 2006 2005 
6 usf'ooo ust'ooo 
Inventories (in hand) 49 43 
49 43 
Prepaid Expenses 2006 2005 
7 usf'ooo ust'ooo 
Deposits 113 49 
Prepayments 3 134 
116 183 
Notes to the financial statements continued on page 14 
Page 14 
INTERNATIONALW ATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Property and Equipment Balance Additions/ Disposals Balance 
8 1 January charge for 31 December 
2006 the year 2006 
uss@ooo uss'ooo USFOOO UStDOO 
1. cost 
Infrastructure and improvements on the building 
Leasehold building and improvements 1,890 111 2.001 
Heavy duty equipment 224 4 2 226 
Equipment 
Research equipment 257 52 308 
Computers 2,049 234 7 2.276 
Furnishing & office equipment 1.178 (31) 12 1.136 
Vehicles 1.307 66 33 1,339 
Computer Software 179 336 515 
Capital Work-in-Progress IS l  1S l  
~ ~ ~~ 
TOTAL COST 7,084 922 53 7,952 
II. Accumulated depreciatlon 
Infrastructure and Improvements on the buildlng 
Leasehold building and improvements 815 105 919 
Heavy duty equipment 181 8 1 188 
Equipment 
Research equipment 22 1 55 276 
Computers 1,602 232 6 1.828 
Furnishing & office equipment 941 (9)' 10 922 
Vehicles 1,071 81 23 1.130 
Computer Software 155 19 173 
4,986 491 40 5,436 
111. Net Book Value 
Infrastructure and improvements on the building 
Leasehold building and improvements 1.075 1,081 
Heavy duty equipment 43 39 
Equipment 
Research equipment 36 32 
Computers 447 449 
Furnishing 8 office equipment 237 213 
Vehicles 236 210 
Computer Software 24 341 
Capital Work-in-Progress 151 
2,098 2,516 
NOTE: 
Cost of fixed assets is analyzed as follows: 
Center owned 4.478 5.466 
In custody 398 485 
Leasehold improvements 2,208 2.001 
7.084 7.952 
3 
Notes to' the financial statements continued~  on 
Page 15 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Accounts Payable - Donors 2006 2005 
9 ust'ooo usfpoo 
Restricted funds 3,132 4.0 12 
Unrestricted funds 573 1,264 
3.705 5.276 
Accounts Payable - Employees 2006 2005 
I O  us~ooo us$voo 
Payables - Employees 110 98 
110 98 
Other CGlAR Centers 2006 2005 
11 us1'000 uss'ooo 
ICRAF 9 
ICRISAT 14 
ClAT 142 
IFPRI 139 
IRRUCIFOIUILRI/CIMMYT 57 47 
57 35 1 
Accounts Payable - Others 2006 2005 
12 US$WO uss'ooo 
Accounts payable - Vendors 196 571 
Collaborators 192 
Consultants 330 
Project Advances - Payable 114 
Other International 8 Local Organizations 3 528 
835 1.099 
Notes to the financial statements continued on page 16 
Page 16 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
CGIAR - Challenge Programme on Water and Food 
13 
1 FortheYear 1 1  Cumulative I 
Cash ReceiDts 
Danish 302 1,494 
DFlD 4,562 13,254 
France 654 3.669 
GTZ 443 1,333 
Norway 320 1,765 
Netherlands 127 1,480 
Sweden [SIDA] 98 287 
Switzerland [SDC] 1,050 2,091 
WNT 59 189 
IFAD - Project 50 ) 10 10 
World Bank 2,700 10,400 
Cash Disbursements 
IRRl 2,344 6,276 
ClAT 2,068 3,445 
ICLARM 654 2,021 
IFPRI 503 1,363 
IWMl 392 1,402 
Yellow River Basin 86 53 1 
SA0 Francisco Basin 19 83 
LIMPOPO Basin 51 120 
KARKHEH Basin 50 
Nile 49 495 
Page 17 
Mekong River Commission 142 501 
VOLTA Basin 75 132 
ANDEAN BASIN 146 449 
Basin Focal Project 240 272 
lndo Gangetic Basin 50 137 
IRD 180 280 
University of California 276 276 
CSIRO 41 1 41 1 
Centre for Ecology & Hydrology 30 60 
Khon Kean University 60 60 
INT DEV. Enterprises Cambodia 45 45 
Sokoine University 45 45 
Asian Int. Of Technology 45 45 
World Neighbors 36 36 
SAVANNA Agri Research Ins 49 49 
IDE International - Nepal 45 45 
Human People India 31 31 
lnst for Sustainable Development 27 27 
Fund Expression 24 24 
CSDE , 22 22 
IDE International - India 45 45 
St Jude Family Project 44 44 
World Vision South Africa 45 45 
8,279 18,867 
Expenditure IWMl CP 5,182 13.896 
Administration Fees 103 501 
Total Disbursements 113,564111 
Undisbursed Funds held by IWMl (3,239) 2,708 
Notes to the financial statements continued on page 18 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Long term Liabilities :A ccounts Payable - Employees 2008 2005 
14 uss'ooo uss'ooo 
Severance 8 gratuity benefits (14a) 965 770 
International staff repatriation (14b) 770 393 
International & National staff unutiliied leave provision (14~)  567 493 
Balance at 31 December 2,302 1.656 
Severance 8 Gratulty Benefits 2006 2005 
14a usf'ooo uss'ooo 
Balance at 1 January 770 704 
Charge for the year 256 22 1 
Payments made during the year (61) (15 5) 
Balance at 31 December 965 770 
International staff RepatriaUon 2006 2005 
14b USs'000 USs'000 
Balance at 1 January 393 470 
Charge for the year 395 11 
Payments made during the year (18) (88) 
Balance at 31 December 770 393 
International & National Staff Unutilized Leave Provision 2008 2005 
14c usf'ooo USLOO0 
National Staff 91 84 
International Staff 475 409 
Balance at 31 December . 567 493 
Notes to the financial statements continued on page 19 
Paga 19 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Other Revenue and Gains 
15 2006 2005 
usg'ooo us)'ooo 
Bank interest & Investment Income 366 426 
Sundry income 118 29 
Total 484 455 
Program Related Expenses 
16 Unrestricted Restricted 2006 2005 
us)'ooo uss'ooo usg'ooo usS'ooo 
Admin Budgets - Base Projects 258 
Basin Water Management ( BWM ) Theme 1 1,055 4,339 5,394 5.1 56 
Land, Water and Livelihoods ( LWL ) Theme 2 718  1,634 2,352 3,136 
Agriculture, Water and Cities ( AWC ) Theme 3 293 1,254 1,547 978 
Water Management and Environment ( WME ) Theme 4 298 600 898 1,077 
System wide Initiative on Malaria & Agriculture ( SIMA) 83 196 279 420 
IN-KIND & Cash Grants 1,589 1,589 2,722 
Comprehensive Assessment 164 1,3- 69 1,533 1,649 
Dialogue Secretariat 5 
Other Hosted Activities 255 255 113 
Challenge Program 2,524 2,524 1,595 
Global Water Partnership 19 817 836 923 
Regional Office Operational Costs 2.797 335 3,132 2,235 
Capacity Building & Training I 362 362 314 
General h 15 -103 
Total Expenditure 5,877 
Notes to the'  financial statements 
Page 20 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Statement of Operating Expenses 
For the year ended December 31,2006 
Efficiency of Operations 
17 -2006  
Direct Operating Expenses 
Research 14,830 14,325 
Research Support 2,842 4,021 
Operations 3,133 2,235 
su b-total 20,805 20,581 
less: Overhead recovery (1,246) (1.005) 
total 19.559 19,576 
Indirect Operating Expenses 
Management 2,854 3,274 
Common Sustenance Services 1,240 1,209 
total 4,094 4,483 
Total Operating Expenses 23,653 24,059 
Cost Ratios 
Directrrotal 83% 81 YO 
IndiredTotal 17% 19% 
IndirecVOirect 21%  23% 
Notes to the financial statements continued on page 21 
Page 21 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Details of Operating Expenses 
18 
Research Administration Total Total 
Programs and General 2006 2005 
Operations 
US~OOO uss’ooo US$’OOO uss’ooo 
Unrestricted 
Personnel costs 4,133 2,093 6,226 5,208 
Supplies & Services 844 1,173 2,018 2,223 
Operational Travel 787 426 1,213 85 1 
Collaborations - Partnerships 113 113 21 5 
Depreciation - 402 402 492 
Total Operating expenses I 5,877 I ,I  4,094 I I 9,971 ]  1-
Recovery of Indirect cost (1.246)1I  (1,24611I  (1,005)1 
Sub-total I 5,877 ] 2,848 8,725 7,984 
Restricted 
Temporary 
Personnel costs 4,320 4,320 5,912 
Supplies & Services 512 512 2,304 
Operational Travel 1,280 1,280 819 
Collaborations - Partnerships 2,640 2,640 251 
Depreciation 89 89 2,269 
Total Operating expenses I 8,841 I I I I  8,84 21 I -
Indirect cost 409 409 475 
Sub-total I 9,250 I I I I  9,250  I1 -
Challenge Program 
Personnel costs 1,960 1,960 1,267 
Supplies & Services 1,899 1,899 637 
Operational Travel 1,086 1,086 332 
Collaborations - Partnerships 1,279 
Total Operating expenses I 4,94 41-  1 1 4,944 I 3,5151 
Indirect cost 734 734 530 
Sub-total I 5,677 I 7 1 I 5,677 1 1  -
Total 
Notes to the financial statements continued on page 22 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Long Term Financial Stability (Adequacy of Reserves) 
19 
2006 2005 
USs'000 USs'000 
UNRESTRICTED NET Assets 6.558 6,669 
Less - Fixed Assets Net 2.516 2.098 
4,042 4,571 
Total Core Expenditures + IWMl CP Expenditure 
Less - Depreciation 23,162 23,567 
Per day expenditure 23,162 I365 23567 I365 
63 65 
4.042 I63  4571 165 
LTFS DAYS M 71 
Short-term Solvency (Liquidity) 
20 
2005 2005 
uss'ooo uss'ooo 
Current Assets minus Current Liabilities 6.344 6,227 
6344 I63  6227 I65 
STS DAYS 100 96 
Notes to h e f inancial statements continued on page 23 
Page 23 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Notes to the financial statements - 31 December 2006 (contd) 
Cash Management on Restricted Operations 
21 
2006 2005 
US$'OOO us$looo 
Restricted Donor Receivable 1,742 2,743 
Restricted Donor Payable 5.840 9,958 
Ratio (Receivable / Payable) 0.30 0.28 
Notes to the financial statements continued on page 24 
Page 24 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
FINANCIAL STATEMENTS - 31 DECEMBER 2006 
Notes to the Financial Statements (contd. ..) 
22 Post balance sheet events 
No events have occurred since the balance sheet date which would require adjustment to or 
disclosure in the financial statements. 
23 Comparative figures 
Certain comparative figures have been reclassified to conform to the presentation of the current 
year. 
WFERNATTONAL WATER MANAGEMENT INSlTnITE 
Supplementary Information 
Exhibit 1 
Cnnt Revenue 
n8.m 375.5% 375.5 3711.501 3 6 2 3  
691.90 m.90 512.76 
(l0.an 9.911: 9.98 9.M 9.911 
355.331 38.33 313.13 
i.1m.n I.I70.72! I .m.1 
279.64 279.6.4: 3011.99 
0 7 . m  75.m 37.m ns 
0 I 95.m 
wW.w m.64 745.76 
(189.M l69.W 185.00 l85.W 169.66 
( i m m  1m.m n.00 32.W 100.68 
518.072 w.31: 614.45; I.on8.I 
320.w 320.08; I48.W 
i m m  375m 197.1 349.m 371.78 
3 2 9 . ~ ~ 1  329.w 331.20 
(IQ.2SO 784.29 
-m.wo I .8m.w 
785,321 I,ynLll -219.W - 644.m 759.m 
2.219.W -1.XO.m 
445.9X m.81 8,lJI,30! 7.962.m 
32.008 I 32.W ( 95.W 
138.455 204.14! I87.M iw.wi 152.13 
3 2 . m  ( 32.90 c 6.m 
9.337 (23.x 13.92 ( 69.66 
0 20.m 30.75: 50.7~1 ( 
30.926 I2S.W IM.91! 26l,84! 94.m 
77.747 ( 77.74 (I 113.69: 
m6.m 85.W 64.33: (57.571 11.m 
0 ( 2.06 2.001 I 
( ( (I m.w 
121.717 317.m 34.m 405.m 265.05: 
0 ( 9.9u 9.910 4 
I a 433.111 
I .%3 24.3% 13.82 12.4116 22.3c 
6.121 5.25 am I 
(11.319 ( 16.571 5.23 17.91: 
5.m I ,98! 7,389 7 . m  
( I I a 19.49l 
0 c ( I 0 n.n: 
SI . g n  6 4 . M  28.0 87.7113 149.9ll 
0 (I ( I 0 8.561 
1.590 I .99( 0 2M 
10.329 I0.m 5.w 14.480 19.671 
0 93.w 93.w a 
643 5.m 2.w 3.0% 2.171 
679 67' 
127.935 58.1W 69.737 l85.m 
187.214 59.11( 128.038 55.891 
6.151 1.751 4.933 c 
0 33.261 10.097 43.362 c 
IJI.0lI 276.260 I5Z.I  255.m 113.016 
(4.7421 3.319 18.781 17.420 52.323 
(18.824) 0 18.824 0 n.ms 
33.742 32.221 34.1M 31.203 34.Iffl 
0 4.765 935 5.nm 0 
(48.8951 Y).lt¶ 3l.Y)Y 21.787 5\.421 
(988.6971 988.691 0 E 0 988.691 
0 36.624 22.m 13.645 a 
0 134,734 41.031 175.7m 0 
0 15.951 1.331 23.286 0 
(l43.ssol I56.wO im.m 116.191 I€Q.O.M2 
(I2.wol 12.m 0 12.m 
I24 0 1.361 I .485 14.276 
4.857 33.m 2 38.259 I I .743 
0 6.0W 4.483 10.483 0 
0 2.W 5.169 7.169 0 
452 IS2 
57.m 1m.w IU.154 33.372 95.423 
983.252 0 0 983.252 1.mi.m 
242.1199 9.935 252.834 367.1Ul 
(142.442) 327.355 0 0 184.913 142.442 
13.751 306.611 174,698 145.470 lll.243 
175 (1% 21 0 353 
7.799 7.799 0 
- - 
Pmnds b m &  Tad Tad 
necdv.b* 1006 zom 
U mu low ==d* 
-us s  -ye- 
us s  us s WS 
I C 3i.m 
m.w 29.m 57.538 I 
m.m I m.49t 309.96: 
I c I .fl 
35.3N 9.76 25.W 
a I 6.ooE I .a 
C 5124 26.091 8U 
a 13.92r 43.051 l o x  
1.153 1.431 34.7O3 w 
11.000 I1.W a 1o.m 
6.m I a 12.w 
24 19.537 15.41; 
a m a 1s.m 
a I a 2.7% 
0.m 5.000 2.31 401 2 . z  
0 a 4 . a  4 .m I 
51.198 56.0% 66.n 40.679 S.llI! 
158.W 75.31 83.26J I 
(i0o.m 1m.m IoO.w( im.m im.w 
2.561 11.3% I .a 12,492 8.m 
0 0 I a 33.031 
n.m 69.501 32.9 114.141 13.481 
41.11~ a 23.242 70.428 224.141 
0 c I a 23.441 
0 11.211 I I .21 a c 
(13.261) a a5.m 12.114 
(M).oM) B0m.  8J.M( 85.m m.m 
(rn.o.000) 8Om.  8S.m 85.m 80.m 
14.511 5o.m 40.56 23.m 25.48l 
0 30.m 3o.m 0 a 
0 6.m 4.41’ 1.563 a 
0 -3.251 5.0s 24.200 E 
26.518 24.m 1.548 
(511.250 5.3.225 2! 0 233.1121 
91.566 a 91 , s  0 I23.93I 
0 0 a I a 6.013 
69.m 308.013 150.31: 221.508 151.181 
326 3n 
0 1.906 7.m 
(5.534) 8.613 1.213 10.291 5.534 
(46.960) 81.621 21.n~ 62.384 61.392 
981 9(c a 
0 3o.m 2.011: 21.917 a 
0.m) 0 7 . m  0 1.0ll 
0 a I 0 5 . w  
2.251 2.25. 
65.166) 401.116 6.811 312.129 496.m 
0.0.125) 20.125 3.231 3 . m  41.m 
(118.117) 149.943 9.m 122.054 134.822 
0 4.166 m 3.373 a 
1011.937 183.189 3m.w tm.iM, 256.994 
(12.929) 0 (12.929 0 
11.331 Il.331 0 
2.M4 1.106 3.750 0 
(I50.o.000) 0 M0.m I50,WD 150.m 
1.131 1.131 0 3.155 
60.691) 15.213 37.176 31.698 M.691 
n.146 117.612 39.944 154.872 102,448 
21.223 0 3.458 17.lb5 8.152 
34.m 8.252 I I .451 31.589 110.041 
0 0 6,562 6.562 0 
0 0 0 0 0 165,488 
146.182 515.203 69.81 591.515 398.387 
(18.954) 1 8 . 9 ~  0 6,499 
20.036 0 810 19.206 20.933 
(9.m 8.419 85.3 0 w . w  
0 0 0 0 O 4.9’75 
0 71.804 4.285 16.0119 0 
0 6.m 2.9% 8.994 0 
0 0 0 a 0 I .m 
(9.464) 38.380 5.527 21.389 41.W 
2s.m 125.m lW.761 49,239 
cm.m in.m II.241 44.152 66.m 
0 0 0 0 29.7% 
I 13.478 181.5m 1m.910 120,018 195.932 
V . W  119.9’75 119.663 231.798 136.632 
c10.652) 4.966 23.539 1.853 85.571 
0 I 1.345 I 1.345 11.m 
Cl5.149 25.470 279 0 
(12.617) 12.516 131 
(1.630) 15.621 13.991 1.630 
1 1 . ~  
686 0 F10 I% 1.525 
587 0 5n 0 I .us 
0 4.669 4.6119 
0 22.850 64 22.914 0 
0 0 0 0 1.422 
(213.758) 87.312 38.768 213.m 2M.W 
[5M,o1D) &.592717 1,866,111 2.628,SIB 7,326,310 10,050,S17h 
us s 
no 0 
(4.474) 4 . m  4.214 4 . a  21.610 
199.165 a 188.823 14.620 
(183) 610 a 1.Ml 
331 a a 6.161 
5.113 2.560 2.553 119.605 
l9.39) 1.713 I .Mo a 36.707 
3.193 3.193 a 3.027- 
194.W 12,983 5,854 I7 111 1n.m 269,600 
3o.m 379.3.98 zoI).YJ 201.M7 213,361 
(11,369) 67.251 315 50.251 
107.M1 Irn,lfn 4 n  11,912 
6 . W  npa3 am i m  n.11 
1.360 1.360 
9011.874 0 1m.w 781.932 m.m 
2.091 24.975 l 8 . m  45.343 P.W 
615.149 0 12.1113 m.266 i m i a  
=34.489 e12.162 
l,Sl9.8?0 614.380  2.614 44.037 43,530 
0 26o.m 
20.006 4116.11 I .M.lM I.709.699 
0 0 333.209 
0 z.93a).~43 18.109 
0 ns.880 9.268 
0 u4.11(u m.oo.pII 
0 183.760 M9.I78 
0 n8.w 1 5 0 . m  
0 49.221 130,6611 
0 829,824 M3.224 
0 46.109 55.419 
0 781.221 I .105.041 
' 0  0 s . 6 n . m  4,044,JSo 
-16,074,266 
-2% 
N w s  lo L e f inancial NlemenB continued 011 page 2 I 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Supplimentary Information 
Exhibit 2 
Restricted Crrnfs 
I Tocal Grants I 67,196.642 I 36,046,136 I 14,927,417 1 50, 
Page 31 

Page 33 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Restricted Expenditure 2006 
Exblblt 3 
c 
Page 34 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Rertrlctcd Expenditure ZOO6 
Exblblt 3 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Rertrlctcd Expcndlture 2006 
Erhlblt 3 
...... 
.._.--. ........- . .....- ..- t
UCCU r NEP Support - C m d  Asin -'- 
Sub Total 65.910 
Page 36 
INTERNATIONAL WATER MANAGEMENT INSTITUTE 
Restricted Expenditure 2006 
Exhibit 3 
....- . . ---.-.... 
...... ................... 
.........I .. ..-_..._._.....L.. ....- _.__.?I..!?.! .. ..l 
.......................... 4... ...................... 1.. ........... 
7.853 
Sub Totpi 62.914 . 188,753 67,656 SS8i376 3.398 137.687 96,565 ' 518.957 1 1.634.307 
Page 37 
IWEPWATIONAB. WATER MANAGEMENT INSTITUTE 
Rertricted Expcndlture 2006 
Erhiblt 3 
.............- . ...- -