Deloltte Auclit .Tax .Consulting. Financial Advisory. International Potato Center I. CIP INFORMATION II. REPORT ON THE AUDIT TO THE FINANCIAL STATEMENTS AND COMPLEMENTARY INFORMATION AS OF DECEMBER 31,2003 AND 2002 INTERNACIONAL INTERNATIONAL POTATO CENTER CIP INFORMATION AND REPORT ON THE AUDIT TO THE FINANCIAL STATEMENTS AND COMPLEMENTARY INFORMATION AS OF DECEMBER 31,2003 AND 2002 CONTENTS Page 1. CIP INFORMATION About CIP 1 Management Report 2 II. Report on the Audit to the Financial Statements and Complementary Information as of December 31,2003 And 2002. Financial Statements: Independent Auditor's Report 3 Statement of Financial Position 4 Statement of Activities 5 Statement of Cash Flow 6 Notes to Financial Statements 7 - 1 4 Complementary Information: Independent Auditor's Report 15 Statement of Grant Revenues 16-17 Schedule of Fixed Assets 18 Schedule of Furnishing & Equipment 19 Schedule of Indirect Cost's Annual Rate 20 INTERNACIONAL International Potato Center About CIP The International Potato Center (known worldwide by its Spanish acronym, CIP) seeks to reduce poverty and achieve food security on a sustained basis in developing countries through scientific research and related activities on potato, sweetpotato, other root and tuber crops, and on the improved management of natural resources in the Andes and other mountain areas. CIP headquarters are in La Molina, outside of Lima, Peru's capital, in an irrigated coastal valley. CIP also has experimental stations in Huancayo in the high Andes and in San Ramon on the eastern, rainforest-covered slopes, taking advantage of Peru's varied geography and climate. The Center has another high Andes experimental station in Quito, Ecuador, and a worldwide network of regional offices and collaborators. CIP has recruited an international team of scientists from 25 countries, supported by nationally recruited staff. CIP is a Future Harvest Center and receives its principal funding from 58 governments, private foundations and international and regional organizations knows as the Consultative Group on International Agricultural Research (CGIAR). Future Harvest builds awareness and support for food and environmental research for a world with less poverty, a healthier human family, well-nourished children and a better environment. Future Harvest supports research, promotes partnerships and sponsors projects that bring the results of research to rural communities, farmers and families in Africa, Latin America and Asia. 1 INTERNACIONAL To the Board of Trustees: Management Report The 2003 Financial Statements have been prepared in accordance with the generally accepted accounting principles (GAAP) for non-profit organizations and fulfill the requirements of the Consultative Group on International Agriculture Research (CGIAR). Management is responsible for the reliability of the financial statements. The Board of Trustees, operating through its Audit Committee, provides oversight of the financial reporting process. The Audit Committee meets privately with external auditors to discuss the results of their work, the adequacy of the internal control system, the quality of financial reporting, and the safeguards in the system, to avoid unauthorized acquisition, use or disposition of assets. The report of the external auditors follows this statement. Every three years, the Audit Committee recommends to the Board the appointment of an external audit firm and the terms of reference for their work. The Center maintains an internal control system over financial reporting and asset control, which is designed to provide reasonable assurance to Management and the Board of Trustees that the financial statements provide reliable information. The system includes established policies and procedures communicated and applied throughout the Center. There are inherent limitations in the effectiveness of any internal control system, including the chance of human error. Accordingly, even the most effective internal control system can provide only reasonable assurance. Carlos Alonso Cassini February 2004 Chief Financial Officer 2 Deloitte. Gris, Hernlndez y AMciados S.C Las Begonias 441, Pis0 6 San Isidro, Lima 27 Peru Tel: +51 (1) 211 8585 Fax: +51 (1) 211 8586 www.deloitte.com.pe INDEPENDENT AUDITOR'S REPORT To the Members of the Board of Trustees International Potato Center We have audited the accompanying statements of the financial position of the International Potato Center, a not-for-profit organization, as of December 31,2003 and 2002, and the related statements of activities and cash flow for the years then ended, (all expressed in United States dollars). These financial statements are the responsibility of the Center's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of the International Potato Center as of December 31, 2003 and 2002, and its activities and its cash flow for the years then ended, in compliance with the guidelines supported by the Consultative Group on International Agriculture Research as indicated in Note 1 to the financial statements, and which will conform with the internationally accepted accounting standards (IAS) for not-for-profit organizations. Countersigned Y~:, " (Partner) CPC RegistraMn No. 1215 9 February 11,2004 3 A member firm of Audit .Tax .C onsulting .F inancial Advisory. Deloitte louche Tohmatsu INTERNATIONAL POTATO CENTER STATEMENT OF FINANCIAL POSITION As at December 31.2003 and 2002 (In US Dollars' 000) Note 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents 2 9,190 5,969 Accounts Receivable: Donors 3 4,268 4,025 Employees 4 283 31 1 Others 5 316 238 Inventory 6 436 489 Advances 475 432 Prepaid Expenses 261 184 Total current assets 15,229 1 1,648 FURNISHING AND EQUIPMENT, net 7 2,596 2,860 TOTAL ASSETS 17.825 14,508 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Donors 8 4,290 1,063 Others 9 6,342 6,709 Accruals 10 61 1,201 Total current liabilities 10,693 8.973 NET ASSETS 11 Appropriated 2,596 3.736 Unappropriated 4,536 1,799 Total net assets 7,132 5.535 TOTAL LIABILITIES AND NET ASSETS 17,825 14,508 (See accompanying notes to the financial statements) 4 INTERNATIONAL POTATO CENTER STATEMENT OF ACTIVITIES For the Years Ending December 31,2003 and 2002 (In US Dollars' 000) Note Unrestricted Restricted 2003 2002 REVENUE AND OTHER SUPPORT Grants (Appendix 1) 12 7,964 9,864 17,828 18,393 Other revenues and support 13 387 387 326 Total revenue and other support 8,351 9,864 18,215 18,719 EXPENSESANDLOSSES Program related expenses 14 5,242 9,060 14,302 16,100 Management and general expenses 3,062 3,062 3,232 Total expenses and losses 8,304 9,060 17,364 19,332 Indirect cost recovery (804) 804 Total expenses and losses 7,500 9,864 17,364 19,332 ~ ~ Change in net assets - Unappropriated 851 85 1 (613 ) Net assets beginning of the year 5,535 5,535 5,908 Transfer from accruals & provisions 1,000 1,000 350 Change in net assets - Appropriated (254) (254) (110) NET ASSETS AT END OF THE YEAR 11 7,132 7,132 5,535 MEMO ITEM Total Expenses by Nature: Personnel Costs 5,735 2,427 8,162 8,862 Collaborators I Contractors 77 1,190 1,267 1,053 Supplies and Services 854 5,143 5,997 7,247 Travel 513 1,104 1.61 7 1,810 Depreciation 321 32 1 360 Total 7,500 9,864 17.364 19,332 (See accompanying notes to the financial statements) 5 INTERNATIONAL POTATO CENTER STATEMENT OF CASH FLOW For the Years Ending December 31,2003 and 2002 (In US Dollars' 000) 2003 2002 CASH FLOW USED IN OPERATING ACTIVITIES Change in Net Assets 85 1 (613 ) Adjustment to Reconcile Change in Net Assets to net Cash: Cash Provided by Operating Activities: Depreciation 32 1 360 Provisions for Severance Indemnities 320 275 Disposal of Fixed Asests 197 152 Decrease (Increase) in Assets: Accounts Receivable: Donors (243) 27 Employees 28 57 Others (78) 6 Inventories 53 17 8 Advances and Prepaid Expenses (120) (15 6) Increase (Decrease) in Liabilities: Accounts Payable: Donors 3,227 33 Others (687) 1,032 Accruals (1,140) (374) Net Cash Used in Operating Activities 2,729 977 Cash Flow Used in Investment Activities Acquisition of Fixed Assets (254) (98) Increase in Net assets.net 746 240 Net Cash Used in Investment Activities 492 142 Net Increase in Cash 3,221 1,119 Cash and Cash Equivalents Beginning 5,969 4,850 End 9,190 5,969 (See accompanying notes to the financial statements) 6 INTERNATIONAL POTATO CENTER Notes to Financial Statements as of December 31,2003 (All Amounts in Thousands of US Dollars) Note 1 - Basis of Financial Statement Presentation and Siqnificant Accounting Policies The accompanying financial statements, expressed in US dollars, are prepared on the basis of the accounting practices prescribed by CGIAR for their international agricultural research centers and they conform to internationally accepted accounting standards (IAS) for not-for-profit organizations. To facilitate the understanding of data presented in the financial statements, a summary of the Center's accounting practices follows: Cash and Cash Equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. Inventory of materials and supplies are booked at acquisition cost. Acquisition cost includes the purchase price plus freight, insurance and handling charges. Inventory is valued at the average cost, which should not exceed market value. Materials in transit are stated at invoice cost. Furnishing and Equipment are stated at net book value. It includes straight-line accumulated depreciation deducted from acquisition cost, freight, insurance and handling charges, net of disposals. Gains or losses resulting from disposal of assets are reflected in the Statement of Activities. Items costing over $500 are categorized as fixed assets. Estimated life of Furnishing and Equipment used for calculating depreciation charges are as follows: Category Description Estimated life in years Furnishing and equipment Farming 10 Laboratory 10 Office 10 Vehicles 7 Computers 5 j3 Revenue - Grants are recognized upon fulfillment of the donor-imposed conditions attached to it. They are classified according to the type of donor-imposed restrictions. Grants received for the funding of activities to be performed in future periods are recorded as Accounts Payable to Donors. Indirect cost recovery - A new methodology suggested by the CGIAR Secretariat to calculate indirect costs was implemented in 2000. In 2003, indirect cost is 13% (13% in 2002) of total expenditures. Other revenue is recognized in the period in which income is earned. It includes interest on investments and proceeds from the sale of equipment. Foreign currency transactions are stated in US dollars at the exchange rate prevailing on the date of the transaction. Exchange differences resulting from the collection of receivables and/or the settlement of obligations at an exchange rate different from the one originally used to book the transaction are credited or charged to operations in the period the transaction is settled and are included in the statement of activities. Outstanding assets and liabilities in currencies other than the US dollar at year-end are adjusted at the market exchange rate. Gains or losses are included in the statement of activities. 7 Note 2 - Cash and Cash Eauivalents Cash and cash equivalents as of December 31 consist of the following: 2003 2002 Cash on hand 94 97 Banks 1,515 32 1 Time deDosits and savin-a accounts 6,542 4,506 Securities 1,039 1,045 9,190 5,969 Note 3 - Accounts Receivable - Donors Unreleased balances of approved grants and expenses incurred in advance of the receipt of donor funds as of December 31 are classified as follows (Appendix 1): 2003 2002 Unrestricted 1,486 445 Restricted 2,782 3,580 4,268 4,025 The Secretariat of CGIAR assists the Center in follow-up of the release of grants by donors. Note 4 - Accounts Receivable - Emdovees On December 31. this balance is as follows: 2003 2002 Loans 256 26 1 Advances 27 50 283 31 1 Note 5 - Accounts Receivable - Others Tax recovery in process from the Peruvian tax authority and cost recovery from institutions as of December 31, are as follows: 2003 2002 Taxes 175 117 Institutions 141 121 8 Note 6 - Inventory On December 31, this balance is as follows: 2003 2002 Laboratory and Field supplies 307 367 Office supplies 72 67 Spare parts 57 44 In transit 11 436 489 Note 7 - Furnishing and Eauipment The balances of the cost and accumulated depreciation are as follows (Appendix 2): 2003 2002 Cost of Furnishing and Equipment 9,260 9.248 Accumulated Depreciation (6,664) (6,388) 2,596 2,860 The annual rates for depreciation charges are as follows: (W Vehicles 15 Laboratory, Office and Farm Equipment 10 Computer 20 Software 33 For the year ending December 31, 2003, CIP recorded depreciation on Furnishing and Equipment in the amount of $321 ($360 in 2002). Note 8 - Accounts Pavable - Donors Grants received in advance, applicable to succeeding periods are as follows (Appendix 1): 2003 2002 Unrestricted 1.082 1.062 Restricted 3,208 1 4,290 1,063 Note 9 - Accounts Pavable - Others Accounts Payable - Others is broken down as follows: 2003 2002 Institutions 708 584 Suppliers 572 419 Research Contracts 4,899 5,626 Taxes 99 61 Provision for severance indemnities - Local Staff 64 19 6,342 6,709 9 Note 10 - Accruals Reflects the provision for contingency reserves to cover unforeseen expenses, such as relocation expenses for internationally recruited staff, as well as other contingencies for the amount of $61 ($1,201 in 2002). Note 11 - Net Assets Unrestricted net assets are the amount set aside for the Center's use with no restrictions by donors. Net assets as of December 31 are broken down behnreen appropriated and unappropriated. Appropriated, the amount includes the acquisition costs, net of the depreciation charges, of properties and equipment, maintenance and replacement costs. Unappropriated, is the accumulated amount out of the operating surplus, designated to provide the necessary cash to meet the Center's on-going commitments and obligations whenever contributions are delayed within the year. The following summary shows the changes in net asset balances during 2003 and 2002: 2003 2002 Unrestricted Net Assets ADDroDriated UnaDDroDriated -Total Net assets beginning of the year 3,736 1,799 5.535 5,908 Transfer (886) 886 Transfer from Accruals & Provisions 1,000 1,000 350 Change in net assets (254) 851 597 (723) Net assets at end of the year 2,596 4,536 7.1 32 5,535 10 Note 12 - Restricted Grants (In US Dollars' 000) DONORS 8 PROJECTS Grant Grant Expenditures Period Pledged Up to 2002 2003 Total Association for Strengthening- Ag-ric ultural Research in Eastern and Central Africa (ASARECA) Support to Regional Potato and Sweetpotato Improvement Programme in ' 2o03 Sep 2o06 985 0 53 53 Eastern and Central Africa (PRAPACE) Australian Centre for International Agricultural Research (ACIAR) . Liriomyza Huidobrensis Leafminer: devebping effective pest Jan 2o01 2o04 27 11 0 11 management strategies for Indonesia and Auslralia Pwerty allevation and food securily through improving the sweetpotato - Jan 2o01 Juri 2o06 ' 731 282 155 437 pig systems in Indonesia and Vietnam . Seeds of Life - East Timor Jan 2001 - Dec 2004 53 42 0 42 Canadian International Development Agency (CIDA) Support for the Global Mountain Program (GMP) System4de program Apr 2o03 Mar 2o06 885 0 102 102 ' forAfrica Urban Agriculture (UPA) in Kampala, Uganda - Health impact Jan2002~Dec2004 ' 98 31 35 67 assessment and option for improvements Centro de lnvestigacion Agricola Tropical (CIAT Bolivia) Desarrollo de Sistemas de Manejo lntegrado de Plagas (MIP) para el . Control de lnsectos Plagas y Enfermedades en Papa por Agricultores de Jan 2002 - Dec 2004 13 6 0 6 10s Valles Mesot6nnicOs de Bolivia Centro lnternaclonal de Agricultura Tropical (CIAT) . CIAT-IFPRI-CIP HARVESTPLUS Sep 2003 - Dec 2004 CGIAR - 103 0 78 78 lWNl - InternationalW ater Management Institute . Work Plan for the Coordination of the Andes Associate Basin -Challenge Feb 2o03 2o03 70 0 70 70 Program on Water and Food Cooperaci6n Alemana al Desanollo Agencia de la GTZ Foro de las Americas Wsidn del Agua Dulce en las Americas: Las ' Juri 2o03 2o03 9 0 9 9 Politicas y el Manx Normative" Danish International Development Agency (DANIDA) JPO Program - Plant Pathologist to Support on-station and Participatory . Research on Integrated Management of Potato Late Blight in Peru - Mr. Apr 2003 - Mar 2005 168 0 32 32 Peter Kromann Depaltment for International Development (DFID), UK Integrated management of bacterial wild and soil-borne disease of potato Jan 2M), ' 2o03 1.195 756 439 1.195 in farmer communities of the InterAndeanV alleys of Peru and Bolivia Integrated Management of Major Insect Pest of potatoes in Hillside Jan 2o02 ' 2o04 93 31 12 42 Systems in Cochabamba Region of Bolivia Strengthening technology innovation systems in potato-based agriculture April 2o02 May 2o05 958 398 171 in 569 Bolivia European Commission (EC) Conservation 8 Characterization of Root and Tuber Crops Genetic Jan 2o03 2o03 325 0 325 325 ' Resources - ACP Conservation 8 Characterization of Root and Tuber Crops Genetic Jan 2o03 2o03 252 0 252 252 Resources -ASIA Gene discwery evaluation and mobilization for root and tuber crops Jan 2o02 2o03 1.055 378 677 1,055 improvements -ASIA Fondo Regional de Tecnologia Agropecuaria (FONTAGRO) I Red lnternacional de Metodologia de Investigaci6n de Slstemas de Producci6n (RIMSIP) . Desarollo de Productos de Camote en America Latina Mar 2000 - Jul2003 250 180 70 250 . Seleccion y Utilizacidn de variedades de Papa con Resistencia a 250 161 89 250 enfermedades para el pmceso industrial en Latinoamerica Mar2000- Ju,2003 Food and Agriculture Organization of The United Nations (FAO) . CIP - 'Encuentro sobre Formulacion de Politicas y Gestidn de la Apr2003-Mar2004 30 0 30 30 lnvestigacion Agraria en America Latina' FODEPAL . CONDESAN - Strengthen and market the project proposal for the Aug2003- Ju12003 30 0 30 30 Andean Hub of the Pro-Poor Livestock Policy Initiative Global Enviroment Facility (GEF) Conservation of the Biodiversity of the Paramo in the Northern and Jan 2o03 Nov 2o04 314 0 24 1 24 1 Central Andes Government of Austria . Challenge Programs - Participation Senior Scientist NOV 2003 - Oct 2005 255 0 131 131 Functional genomics for the elucidation of betacaratone and starch Juri 2o03 May 2o06 931 0 203 203 metabolism in sweetpotato Genomic Analysis on the effect of photoperiod on Late Blight Resistance Apr 2o03 Mar 2o06 m..*r*n 1.003 0 22 1 221 rVlaI" Carried Fotward 10.083 2,276 3.425 5,701 1 1 Note 12 - Restricted Grants (In US Dollars' 000) DONORS a PROJECTS Grant Grant Expenditures Period Pledged Up to 2002 2003 Total Brought Forward 10.083 2.276 3.425 5.701 Government of Germany . Developing Strategies for effective use of the Granulosis viNS-baSed Jan 2003 - Jun 2006 240 0 34 34 biopestiade for Potato Tuber Moth management Large Scale Deployment of Improved sweetpotatoes in Sub-Saharan Jul2003 - Jun 2006 1,209 0 122 122 ' Africa Government of Italy . CIP Program in Sub Saharan Africa (SSA) Jan 2002 - Dec 2003 275 124 151 275 Government of Japan . Post harvest utilization of sweetpotato Jan 2000 - Dec 2003 611 550 61 611 Government of Luxembourg Assessment and utilization of nutritional characteristics of native potatoes Dec 2003 - N w 2 005 7 55 0 188 188 ' to improve high-yielding varieties Characterization of Differentialy expressed genes during late blight Jan 2000 - Dec 2003 414 288 126 414 ' diseases development in potato Managing the Andean Potato Weevil: A lowcost strategy to enhance food ' AUg 2001 - JuI 2004 461 340 75 415 security for resource-poor families in the Andes JPO Study of the expression of antifungal genes in various transformed potato ' Jan 2000 - Dec 2003 208 145 63 208 clones: focus on the PR1 Genes Government of Netherlands . Andean Highlands Consortium Jan 2001 - Dec 2003 514 392 122 514 . JPO - GIS Specialist - Lima - Ms. Vadivel G. Kumari NOV 2003 - Od 2005 153 0 12 12 . Associate Expert in Bioinformatic - Jasper Buss Jan 2002 - Dec 2004 155 78 0 78 . Associate Expert in Plant Breeding - Stephan de Haan Oct 2002 - Sep 2004 172 81 0 81 . Associate Expert in Plant Breeding ESEAP - S. de Vries Oct 2002 - Sep 2004 164 85 0 85 DGIS-UPWARD - The Evaluation PROSEA Program 1987-2002 Aaivily Feb 2003 - Mar 2004 13 0 13 13 ' No. RA001212 Influence host-plant specific population of Phytophthora infestans on ' NOV2 000 - Oct 2003 362 289 73 362 stability 8 durability Late Blight resistance in potatoes . JPO - Peter Gildemacher OCt 2003 - Od 2004 82 0 9 9 . Usefs Perspective with Agriculture Research 8 Development (UPWARD) Jan 2001 - Dec 2003 604 396 208 604 Government of Spain Conservacion y us0 sostenible de la agrobiodiversidad de papas nativas: Jun 2003 - May 2006 1.050 0 350 350 Una contribucidn al bienestar nutricional Enfrentando a la Pobreza Urbana a traves de la Agricultura Comunidad Jun 2003 - May 2006 47 1 100 51 151 de Jicamarca 111 Reunion INlAs lberoamerica Barcelona Dec 2002 - Nw 2003 136 36 100 136 lntegracidn y mejoramiento de la eficienaa de la cadena produccion - consumo de productos seleccionados en Puno. Peni como mecanismo Jun 2003 - May 2004 600 0 200 200 para reducir la probreza de 10s pobladores andinos Reduccidn de la Pobreza en 10s Altos-Andes a travbs de la Produccion. Jan2001-Dec2003 900 600 300 900 transformacidn y comercializacion de 10s productos Zonas de Montaita (Costa RWMedco) Jun 2003 - May 2004 400 0 400 400 Zonas de Montatia Saragura Jun 2003 - May 2004 100 0 100 100 International Bank for Reconstruction and Development (IBRD) Consortium for the Sustainable Development of the Andean Ecoregion- Jan 2002 - Dec 2003 400 150 250 ' CONDESAN 400 . Rehabilitation of CGIAR Global Public Goods (GPG) Assets Mar 2003 - Feb 2006 1,143 0 472 472 . Rural Development Strategy - World Bank Jan 2003 - Oec 2003 55 0 55 55 . Science and Technology Consultation Jan 2003 - Dec 2003 25 0 25 25 International Development Research Center (IDRC) . Anglophone Africa Training Course on Urban Agriculture Jun2003-May2004 309 0 149 149 . Conserving Agmbodivenity: A resource book for development workers Jan 2002 - Dec 2004 66 33 27 60 Health Benefits and Risks in the context of Urban Agriculture in Sub Apr 2003 - May 2004 52 0 52 52 ' Saharan Afiica Planning for Anglophone Africa 'Regional Training Course on Urban Jan 2003 - Dec 2003 29 0 29 29 ' Agriculture" . Regulation of Rights in the Water Law (Bolivia) Jan 2002 - Dec 2004 150 51 49 100 Supporting Urban 8 Peri-urban Agriculture Research in Sub-Saharan ' Jan 2002 - Dec 2004 210 66 81 147 Africa through Joint Efforts CGIAR-SIUPA 8 IDRC-CFP Wnculacion de Comunidades Campesinas del Sur del Peni con Jan 2003 - Dec 2004 73 0 33 33 . Mercados International Livestock Research Institute (ILRI) . A Virtual laboratory on System Analysis in Mixed Crop-Livestock System Jan 2001 - Dec 2003 396 302 94 396 Carried Forward 23.040 6.382 7.499 13.880 12 Note 12 - Restricted Grants (In US Dollars' 000) DONORS a PROJECTS Grant Grant Expenditures Period Pledged UP to 2002 2003 Total Brought Forward 23,040 6.382 7.499 13.880 Ministerio de Agricultura - Peru Estudios Biofisicos de recursos comunales en el dmbito del Proyecto Aug 2o03 Jul 2o04 . MARENASS 32 0 18 18 Natural Resources Institute (NRI) Promotion of sustainable sweetpotato produdion and post-harvest Apr 2o02 Mar 2o04 ' management through fanner field schoolls in East Africa 83 28 27 55 Servicio Naclonal de Sanidad Agraria (SENASA) . Evaluating new traits for the Andes with an appropiate poverty focus Sep 2003 - Dec 2003 13 0 13 13 Swedish International Development Cooperation Agency (SIDA) . Associate Scientist Jan Kreuze AUg 2003 - JuI 2004 106 0 40 40 Swiss Agency for Development and Cooperation (SDC) Associate Expert Linked to international Agriculture Research in the Jan 2o01 . CGlAR 2o03 314 240 74 314 Collaborative Programme for the Conservation and Use of Biodiversity of ' Andean Root and Tubers - Phase Ill Jan 2001 - Dec 2003 1.160 920 240 1.160 . Mountain Agriwlture Jan2000-Dec2003 1.135 1,020 115 1.135 . Mountain Forum. Regional Program for Latin America - Phase 111 Jan2001-Dec2003 286 20 1 85 286 . PapaAndina Jan 2002 - May 2006 1,714 464 387 851 . Programa Regional Cooperativo de Papa -PRECODEPA - Phase VI1 Apr 2001 - Mar 2003 626 585 41 626 Promoci6n de la Produccidn competitiva de la Papa Peruana para Jan 2o01 ' responder a nuevas oportunidades de mercado 2o04 64 1 418 218 636 Swiss Centra for InternationalA griculture (UL) Understanding and fomenting effective regional research and ' develoDment PmceSSes in rural areas of the Andes AUg 2001 - JuI 2004 240 168 34 202 Variability of Phytophthora infestants and its potential role in breeding for . resistance in potato Jul2001 - Jun 2004 146 114 21 135 The International Service for National Agricultural Research (ISNAR) Prototyping Ecoregional Analysis Tools to Improve Science-Based Apr 2o03 ' Decision Making in Research and Development 2o04 248 0 33 33 The Mcknight Foundation Assessment of Genetic Diversity. fanner participatory breeding and Apr 2o02 Mar 2o06 ' sustainable conservation of Eastern African sweetpotato gennplasm 77 20 20 40 Strengthening the On-Fenn Conservation 8 Food Security of Andean Jan 2o02 ' Tubers in the Fragile Ecosystem of the Southern Peruvian Highlands 2o03 262 129 133 262 The OPEC Fund for International Development Integrated Crop Management for Improving Food Security 8 Juri 2o03 May 2o04 ' Competiveness of Resources Poor Growers in Latin America 0 21 21 United States Agency for International Development (USAID) Control of the Leafminer. Liriomyza Huidiobrensis In Potatoes through . IPM Feb 2001 - Jan 2005 99 59 25 84 Potato and Sweetpotato Collaborative Research in Eastern and Central Jan 2ooo 2o03 ' Africa Phase 111- (PRAPACE) 2,000 1.698 302 2,000 . Southern African Root Crops Resources Network - SARRNET - Phase II Jan 2000 - Dec 2003 492 448 44 492 . Sustainable Nutrition Improvements in Rural Mozambique Jan 2003 - Dec 2003 150 0 150 150 . Linkage Funds US University Partners Jan 2000 - Dec 2003 352 264 88 352 . Vitamin A Deficiency -The efficacy of Orange fleshed Sweetpotato to improve Vitamin A Status in Southern and Eastern Africa Jan 2002 - Dec 2003 60 25 35 60 United States Agency for International Development - International Center for Agricultural Research in Dry Areas (USAID) - (ICARDA) Potato Seed Production and Multiplication for Increased Potato Jan 2o03 2o03 ' Production in Afghanistan 200 0 200 200 United States Department of Agriculture (USDA) . Effects of Potato Mop Top Virus Infection on Major U.S. Potato Varieties Aug 2003 - Aug 2004 21 0 1 1 Total 33.597 13.182 9.864 23.046 13 Note 13 - Other Revenues and Su~port Comprises the following as of December 31: 2003 2002 Interest income 117 98 Foreign exchange gain, net 216 167 Gain on sale of small equipment 54 61 387 326 Note 14 - Proaram Related Expenses The expenses incurred as of December 31 are as follows: 2003 2002 Research 12.326 14.000 Research support 833 1,121 Training 378 36 1 Communications 650 502 Library 115 116 14 Deloitte. Gris, Hernandez y Asociados S.C. Las Begonias 441, Piso 6 San Isidro, Lima 27 Per6 Tel: +51 (1) 211 8585 Fax: +51 (1) 211 8586 www.deloitte.com.pe INDEPENDENT AUDITOR'S REPORT To the Members of the Board of Trustees International Potato Center We have audited the financial statements of the International Potato Center, for the years ended December 31, 2003 and 2002, and our report thereon appears on Page 1. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules consisting of the Appendixes 1 through 4 are presented for the purpose of additional analysis and are not a required part of the financial statements. These schedules are the responsibility of the Center's management. Such supplemental schedules have been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the financial statements taken as a whole. Countersigned b (Partner) CPC Registratb Ne.1 215 9 February 11,2004 15 A member firm of Audit .Tax. Consulting. Financial Advisory. Deloitte Touche Tohmatsu INTERNATIONAL POTATO CENTER Appendix 1 1 o f 2 STATEMENT OF GRANT REVENUE For the Years Ending December 31.2003 and 2002 (In US Dollars' 000) Funds Accounts Paymentof Total Total Donors Received Receivable Advances 2003 2002 Unrestricted Australian Centre for InternationalA gricultural Research (ACIAR) 394 (216) 178 175 Canadian International Development Agency (CIDA) 1,284 44 (3911 937 553 Danish International Development Agency (DANIDA) 448 448 492 Department for International Development (DFID). UK 692 692 643 Government of Belgium 106 106 86 Government of Brazil 25 25 Government of China 110 110 120 Government of France 56 56 46 Government of Germany (BMUGTZ) 233 233 21 5 Government of India 38 38 38 Government of Islamic Republic of Iran 35 35 35 Government of Italy 113 113 111 Government of Japan 220 220 413 Government of Mexico 5 5 5 Government of Netherlands 366 366 296 Government of Norway 277 277 267 Government of South Africa 50 50 50 Government of Spain 48 48 Government of the Republic of Korea 60 60 60 International Bank for Reconstruction and Development (World Bank Group) 1,262 1,262 1,968 Swedish International Development Cooperation Agency (SIDA) 1,273 (475) 798 686 Swiss Agency for Development and Cooperation (SDC) 945 945 764 United States Agency for International Development (USAID) 962 962 1.012 Total 7.560 1,486 (1.082) 7.964 8.035 Restricted Association for StrengtheningA gricultural Research in Eastern and Central Africa (ASARECA) 103 (50) 53 Australian Centre for International Agricultural Research (ACIAR) 157 8 (10) 155 183 Canadian International Development Agency (CIDA) 664 (527) 137 31 CARE- Peru 68 Centro de Investigaadn Agricola Tropical 7 (7) 0 6 Centro lntemaaonal de Agricultura Tropical (CIAT) 78 78 10 CGlAR - IFAR 10 (10) CGIAR - lWNl - International Water Management Institute 25 45 70 Conservation Food and Health Foundation, Inc 17 Common Fund for Commodities (CFC) 8 Consultive Group on International Agricultural Research (CGIAR) 5 (5) Cooperacidn Alemana al Desarrollo 9 9 Danish International Development Agency (DANIDA) a4 (52) 32 120 Department for International Development (DFID) UK 641 (19) 622 862 European Commission (EC) Asia 935 929 995 Latin America 34 366 ACP I EDF 386 325 61 Fondo Regional de Tecnologia Agropecuaria (FONTAGRO) IR ed lnternacional de Investigacion de Metodologia de lnvestigacidn de Sistemas 159 159 106 de Produccidn (RIMISP) Food and Agriculture Organization of the United Nations (FAO) 49 11 60 68 Ford Foundation 85 Government of Austria 763 (208) 555 Government of Belgium 17 Government of Germany (BMZ/GTZ) 555 (399) 156 94 Carried Foward 1 of 2 3.231 1,505 (1.287) 3.340 3.089 16 INTERNATIONAL POTATO CENTER Appendix 1 2 of 2 STATEMENT OF GRANT REVENUE For the Years Ending December 31,2003 and 2002 (In US Dollars' 000) Funds Accounts Paymenlof Tolal Donors Received Receivable Advances 2003 2002 Brought Fornard 1 of 2 3.231 1.505 3.340 3.089 Government of Israel 39 Government of Italy 151 151 124 Government of Japan 122 61 300 Government of Luxembourg 198 377 452 694 Government of Netherlands 605 7 437 768 Government of Peru - STC CGIAR 371 Government of Spain 1.668 1,501 486 Government of the Republic of Korea 140 70 Global Enviromental Facility (GEF) 314 241 International Bank for Reconstruction and Development (World Bank) 1,223 250 802 300 International Development Research Centre (IDRC) 571 9 420 252 International Livestock Research Institute (ILRI) 94 94 131 International Plant Genetic Resources Institute (IPGRI) 5 16 International Research Institute Climate Prediction (IRI) 21 Kenya Agriculture Research Institute (KARI) 11 18 Ministerio de Agricultura - Peru 29 18 National Oceanic Atmospheric Administration (NOAA) IU niversity of Missouri 25 Natural Resources Institute (NRI), UK 17 10 27 67 Organization of Petroleum Exporting Countries (OPEC) IF und for International Development 41 21 62 Rockefeller Foundation. USA 89 202 Swedish International Development Cooperation Agency (SIDA) 44 40 62 Servicio Nacional de Sanidad Agran'a (SENASA) 11 2 13 2 Swiss Agency for Development and Cooperation (SDC) 1.198 20 1.160 1,937 Swiss Centre for International Agriculture (ZIL) 46 34 55 The International Foundation 10 The International Services for National Agricultural Research (ISNAR) 100 33 The McKnight Foundation 153 153 148 The Micronutrient Initiative 58 United States Agency for International Development (USAID) 337 307 644 1.105 United States Department of Agriculture (USDA) 39 1 26 United Nations Environment Programme (UNEP) 14 United States Agency for International Development - International Center for Agricultural Research in Dry Areas (USAID) - 200 200 (ICARDA) Total 10.415 2.782 13.208) 9.864 10.358 TOTAL 17.975 4.268 (4.290) 17.828 18.393 17 INTERNATIONAL POTATO CENTER Appendix 2 SCHEDULE OF FIXED ASSETS For the Year Ending December 31,2003 (In US Dollars' 000) 1. COST Balance Balance January 1st December 31, 2003 Additions Disposals 2003 A. Furnishina & EauiDment Vehicles 1,712 35 (29) 1.718 Laboratory Research Equipment 3,167 35 (5) 3.197 Computer Equipment 2.097 128 (35) 2.190 Furniture & Office Equipment 1,452 46 (3) 1,495 Operating Farm Equipment 617 1 618 In Transit 203 9 (170) 42 TOTAL 9,248 254 (242) 9.260 I I . ACCUMULATED DEPRECIATION Furnishing & Equipment (6.388) (321) 45 (6,664) 111. NET BOOK VALUE Furnishina & Eauipment 2,860 (67) (197) 2.596 18 INTERNATIONAL POTATO CENTER Appendix 3 SCHEDULE OF FURNISHING AND EQUIPMENT For the Years Ending December 31,2003 and 2002 (In US Dollars' 000) 2003 2002 1. COST Balance: January 1 9.248 1 1,047 Current Period: Additions 254 98 Disposals (242) (1,897) Balance: December 31 9,260 9,248 II. ACCUMULATED DEPRECIATION Balance: January 1 (6,388) (7.773) Current Period: Depreciation (3211 (360) Disposals 45 1,745 Balance: December 31 (6,664) (6.3882 111. NET BOOK VALUE 2.596 2,860 19 INTERNATIONAL POTATO CENTER Appendix 4 SCHEDULE OF THE INDIRECT COST'S ANNUAL RATE For The Years Ending December 31,2003 And 2002 (In U. S. Dollars' 000) 2003 2002 Amount YQ Amount Qh I DIRECT COST Research 13,182 73 14.813 74 Research support 1,976 11 2,100 11 Operations 571 3 452 2 15,729 87 17,365 87 II INDIRECT COST Management 1,625 9 1,858 9 Common sustenance services 814 4 834 4 2,439 13 2,692 13 111 TOTAL 18,168 100 20.057 100 IV DIRECT AND INDIRECT COST RATES -?4 -Yo Direct I Total Expenditures 87 87 Indirect I Total Expenditures 13 13 Indirect I Direct 15 15 20