Bioversity International Financial Statements 2022 for the year ended 31 December Including independent Auditor’s Report Bioversity International Alliance of Bioversity International and CIAT Headquarters – Rome Via di San Domenico, 1 00153 Rome, Italy The Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) delivers research-based solutions that address the global crises of malnutrition, climate change, biodiversity loss, and environmental degradation. The Alliance focuses on the nexus of agriculture, nutrition and environment. We work with local, national, and multinational partnersacross Africa, Asia, and Latin America and the Caribbean, and with the public and private sectors and civil society. With novel partnerships,the Alliance generates evidence and mainstreams innovations to transform food systems and landscapes so that they sustain the planet,drive prosperity, and nourish people in a climate crisis. The Alliance is part of CGIAR, the world’s largest agricultural research and innovation partnership for a food-secure future dedicated to reducing poverty, enhancing food and nutrition security, and improving natural resources. https://alliancebioversityciat.org www.cgiar.org Citation Bioversity International, 2023. Financial Statements 2022. Bioversity International, Rome, Italy. Bioversity International Via di San Domenico 1 00153 Roma Rome, ITALY © Bioversity International, 2023 Contents Alliance BoT Terms of Membership 2 Independent Auditors’ Report 4 2021 Institutional Highlights 8 Board Statement on Risk Management 12 Statement of Management’s Responsibilities 16 Statement of financial position 18 Statement of activities and other comprehensive income 19 Statement of changes in net assets 21 Statement of cash flows 22 Notes to the financial statements 24-44 Exhibits 1 - Schedule of grant revenue 46 2 - Schedule of grant pledges and expenses 50 3 - Donors supporting Bioversity International 71 6 - Indirect cost ratio computation 74 ALLIANCE BOT TERMS Our Board of Trustees is responsible for our governance and fulfillment of our mission and strategic goals, in harmony with the goals and policies of the CGIAR System. For 2022, our Board members and their term lengths OF MEMBERSHIP were as detailed below. CHAIR, CGIAR SYSTEM VICE CHAIR, ALLIANCE BOARD AND CGIAR BOARD SYSTEM BOARD TRUSTEES CHAIR, ALLIANCE BOARD Julia Marton-Lefèvre Marco Ferroni Patrick Caron (Female, France) (1) (Male, Switzerland) (Male, France) (3) Board Chair since 1 Jan 2020, Voting Member Board member since 1 Oct 2020, Voting Member Board member since 1 Oct 2020, Voting Member Alliance Strategy & Program Advisory Council System Board Chair since 1 Sept 2020 System Board member since 1 Sept 2020 (ASPAC) member since 1 Oct 2020 First Term First Term Second Term Expertise: Agricultural Sciences Expertise: Natural Sciences Expertise: Ecology and Environmental Planning 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1 Oct 2020 - 31 Dec 2022 1 Oct 2020 - 31 Dec 2024 1 Jan 2020 - 31 Dec 2022 ALLIANCE BOARD-SPECIFIC ALLIANCE BOARD-SPECIFIC ALLIANCE AND CGIAR SYSTEM EX-OFFICIO TRUSTEES TRUSTEES BOARD TRUSTEES Alliance Director General, Douglas van den Aardweg Juan Lucas Restrepo Ibiza (Male, United Kingdom - South Africa) (Male, Colombia - France) (2) Board member since 1 Jan 2020, Non-Voting Lindiwe Sibanda Alyssa Jade McDonald-Baertl Board member since 1 Jan 2020, Non-Voting Member (Female, Zimbabwe) (Female, Australia) Member Alliance Strategy & Program Advisory Council Board member since April 2021, Voting Member Board member since 1 Oct 2020, Voting Member Alliance Strategy & Program Advisory Council (ASPAC) member since 1 Oct 2020 System Board member since April 2021 System Board member since 1 Sept 2020 (ASPAC) member since 1 Oct 2020 Second Term First Term First Term First Term Expertise: Natural Sciences Expertise: Business Expertise: Agricultural Development & Policy Expertise: Finance, Governance, Risk 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1 Jan 2020 - 31 Dec 2022 April 2021 - 31 August 2023 1 Oct 2020 - 31 August 2023 1 Jan 2020 - 29 Feb 2024 Shenggen Fan Alice Ruhweza (Male, China) (Female, Uganda) Colombian Ministry of Agriculture and Rural Board member since 1 Oct 2020, Voting Member Board member since 1 Oct 2020, Voting Member Development ex officio (represented at this Marion Guillou System Board member since 1 Sept 2020 System Board member since 1 Sept 2020 Board by Jorge Mario Díaz Luengas director (Female, France) First Term First Term Agrosavia) Board member since 1 Jan 2020, Non-Voting (Male, Colombia) Member Expertise: Social Sciences Expertise: Natural Sciences Board member since 1 Jan 2020, Voting Member Alliance Strategy & Program Advisory Council 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Alliance Strategy & Program Advisory Council (ASPAC) Chair since 1 Oct 2020 (ASPAC) member since 1 Oct 2020 First Term 1 Oct 2020 - 31 August 2023 1 Oct 2020 - 31 August 2023 Indefinite Term Expertise: Agricultural Science Expertise: Agricultural and Rural Development 2020 2021 2022 2023 2024 Neal Gutterson Hilary Wild 2020 2021 2022 2023 2024 (Male, United States) (Female, United Kingdom - Republic of Ireland) 1 Jan 2020 - 31 Dec 2022 Board member since 1 Oct 2020, Voting Member Board member since 1 Jan 2020, Voting Member 1 Jan 2020 - Indefinite System Board member since 1 Sept 2020 System Board member since 1 Sept 2020 First Term First Term Italian Representative ex officio, Claudio Lenoci Expertise: Natural Sciences Expertise: Finance, Governance, Risk (Male, Italy) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Indefinite Board member since 1 Jan 2020, Voting Cristián Samper Member (Male, Colombia) 1 Oct 2020 - 31 August 2023 1 Jan 2020 - 31 August 2023 Alliance Strategy & Program Advisory Council Board member since 1 Jan 2020, Voting Member (ASPAC) member since 1 Oct 2020 Alliance Strategy & Program Advisory Council Indefinite Term (ASPAC) member since 1 Oct 2020 Second Term Expertise: Economics/Political Expertise: Ecology, Biodiversity 1. Board Chair from 1 January 2020; elected during Joint Board 3 and reconfirmed during the September 2020 Board 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Meeting. 1 Jan 2020 - Indefinite 1 Jan 2020 - 31 Dec 2022 2. The Alliance Director General is an ex officio with voting rights and ex officio member of all Committees up until 30 September 2020. As of 1 October 2020, he is a non-voting member of the Board and a member of ASPAC. 3. Vice Chair from 1 January 2022; elected during 6th Alliance Board of Trustees Meeting during November 2021 and confirmed during 8th Alliance Board of Trustees Meeting during November 2022 until 31 December 2024. 2 ALLIANCE BOT TERMS Our Board of Trustees is responsible for our governance and fulfillment of our mission and strategic goals, in harmony with the goals and policies of the CGIAR System. For 2022, our Board members and their term lengths OF MEMBERSHIP were as detailed below. CHAIR, CGIAR SYSTEM VICE CHAIR, ALLIANCE BOARD AND CGIAR BOARD SYSTEM BOARD TRUSTEES CHAIR, ALLIANCE BOARD Julia Marton-Lefèvre Marco Ferroni Patrick Caron (Female, France) (1) (Male, Switzerland) (Male, France) (3) Board Chair since 1 Jan 2020, Voting Member Board member since 1 Oct 2020, Voting Member Board member since 1 Oct 2020, Voting Member Alliance Strategy & Program Advisory Council System Board Chair since 1 Sept 2020 System Board member since 1 Sept 2020 (ASPAC) member since 1 Oct 2020 First Term First Term Second Term Expertise: Agricultural Sciences Expertise: Natural Sciences Expertise: Ecology and Environmental Planning 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1 Oct 2020 - 31 Dec 2022 1 Oct 2020 - 31 Dec 2024 1 Jan 2020 - 31 Dec 2022 ALLIANCE BOARD-SPECIFIC ALLIANCE BOARD-SPECIFIC ALLIANCE AND CGIAR SYSTEM EX-OFFICIO TRUSTEES TRUSTEES BOARD TRUSTEES Alliance Director General, Douglas van den Aardweg Juan Lucas Restrepo Ibiza (Male, United Kingdom - South Africa) (Male, Colombia - France) (2) Board member since 1 Jan 2020, Non-Voting Lindiwe Sibanda Alyssa Jade McDonald-Baertl Board member since 1 Jan 2020, Non-Voting Member (Female, Zimbabwe) (Female, Australia) Member Alliance Strategy & Program Advisory Council Board member since April 2021, Voting Member Board member since 1 Oct 2020, Voting Member Alliance Strategy & Program Advisory Council (ASPAC) member since 1 Oct 2020 System Board member since April 2021 System Board member since 1 Sept 2020 (ASPAC) member since 1 Oct 2020 Second Term First Term First Term First Term Expertise: Natural Sciences Expertise: Business Expertise: Agricultural Development & Policy Expertise: Finance, Governance, Risk 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1 Jan 2020 - 31 Dec 2022 April 2021 - 31 August 2023 1 Oct 2020 - 31 August 2023 1 Jan 2020 - 29 Feb 2024 Shenggen Fan Alice Ruhweza (Male, China) (Female, Uganda) Colombian Ministry of Agriculture and Rural Board member since 1 Oct 2020, Voting Member Board member since 1 Oct 2020, Voting Member Development ex officio (represented at this Marion Guillou System Board member since 1 Sept 2020 System Board member since 1 Sept 2020 Board by Jorge Mario Díaz Luengas director (Female, France) First Term First Term Agrosavia) Board member since 1 Jan 2020, Non-Voting (Male, Colombia) Member Expertise: Social Sciences Expertise: Natural Sciences Board member since 1 Jan 2020, Voting Member Alliance Strategy & Program Advisory Council 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Alliance Strategy & Program Advisory Council (ASPAC) Chair since 1 Oct 2020 (ASPAC) member since 1 Oct 2020 First Term 1 Oct 2020 - 31 August 2023 1 Oct 2020 - 31 August 2023 Indefinite Term Expertise: Agricultural Science Expertise: Agricultural and Rural Development 2020 2021 2022 2023 2024 Neal Gutterson Hilary Wild 2020 2021 2022 2023 2024 (Male, United States) (Female, United Kingdom - Republic of Ireland) 1 Jan 2020 - 31 Dec 2022 Board member since 1 Oct 2020, Voting Member Board member since 1 Jan 2020, Voting Member 1 Jan 2020 - Indefinite System Board member since 1 Sept 2020 System Board member since 1 Sept 2020 First Term First Term Italian Representative ex officio, Claudio Lenoci Expertise: Natural Sciences Expertise: Finance, Governance, Risk (Male, Italy) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Indefinite Board member since 1 Jan 2020, Voting Cristián Samper Member (Male, Colombia) 1 Oct 2020 - 31 August 2023 1 Jan 2020 - 31 August 2023 Alliance Strategy & Program Advisory Council Board member since 1 Jan 2020, Voting Member (ASPAC) member since 1 Oct 2020 Alliance Strategy & Program Advisory Council Indefinite Term (ASPAC) member since 1 Oct 2020 Second Term Expertise: Economics/Political Expertise: Ecology, Biodiversity 1. Board Chair from 1 January 2020; elected during Joint Board 3 and reconfirmed during the September 2020 Board 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Meeting. 1 Jan 2020 - Indefinite 1 Jan 2020 - 31 Dec 2022 2. The Alliance Director General is an ex officio with voting rights and ex officio member of all Committees up until 30 September 2020. As of 1 October 2020, he is a non-voting member of the Board and a member of ASPAC. 3. Vice Chair from 1 January 2022; elected during 6th Alliance Board of Trustees Meeting during November 2021 and confirmed during 8th Alliance Board of Trustees Meeting during November 2022 until 31 December 2024. 3 INDEPENDENT AUDITOR’S REPORT BIOVERSITY INTERNATIONAL FINANCIAL YEAR ENDED 31 DECEMBER 2022 INDEPENDENT AUDITOR’S REPORT To the Board of Trustees of Bioversity International Opinion We have audited the financial statements of Bioversity International, which comprise the statement of financial position as of 31 December 2022, the statement of activities and comprehensive income, the statement of changes in net assets, the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the financial statements give a true and fair view of the financial position of Bioversity International as of 31 December 2022, and of the results of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of this report. We are independent of Bioversity International in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information Management of Bioversity International is responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management of Bioversity International is responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing Bioversity International ’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Bioversity International or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing Bioversity International’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of our audit conducted in accordance with International Standards on Auditing (ISA Italia), we exercised our professional judgement and maintained professional scepticism throughout the audit. Furthermore:  We identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error; we designed and performed audit procedures responsive to those risks; we obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  We obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Bioversity International’s internal control. 2 of 3  We evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  We concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Bioversity International’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Bioversity International to cease to continue as a going concern.  We evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicated with those charged with governance, identified at an appropriate level as required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during our audit. Rome, 25 May 2023 PricewaterhouseCoopers SpA Scott Cunningham (Partner) 3 of 3 For the year ended 31 December, 2022 2022 Institutional Highlights by Julia Marton-Lefèvre Chair of the Board of Trustees, Alliance of Bioversity International and CIAT Since the formation of the Alliance of Bioversity International and CIAT over three years ago, our organization has remained strong, active, and relevant in the face of a tumultuous period of global and institutional change. The seeds that we sowed in 2019 – a fresh set of Strategic Objectives to generate food systems solutions at the nexus of agriculture, environment, and nutrition – are now bearing fruit. I am pleased to share with you a selection of highlights that illustrate our progress and achievements over the last year, organized around the four main areas in which our work is generating change for people, communities, and institutions: Food, Markets, Landscapes, and Crops and Agrobiodiversity. Progress towards our Strategic Objectives 1. People consume diverse, nutritious, and safe foods. Our work on Food is illustrated through the launch of the Periodic Table of Food Initiative, an exciting global analysis of 1,600 commonly consumed crops at the biomolecular level, conducted with the American Heart Association and The Rockefeller Foundation. At the same time, we celebrated the 25th anniversary of the Pan-African Bean Research Alliance (PABRA) with a special event at the African Green Revolution Forum held in Rwanda on 5 September 2022 that highlighted our longstanding collaboration with researchers and farmers across the region to deliver nutrient- rich bean varieties to farmers and consumers. With the continuing effects of the conflict in Ukraine, much of our research also looked at fluctuating food access for vulnerable communities, with “Food Labs” and urban studies compiling data and best practices. 2. People participate in and benefit from inclusive, innovative, and diversified agri-food markets. Our applied research on Markets focuses on developing value chains that can deliver tangible, often monetary, benefits for smallholder farmers. We codeveloped zero deforestation business models, alternative food products such as quinoa milk derived from traditional Peruvian varieties, and a chatbot named “Melisa” for Latin American farmers, all with the aim of giving farmers access to new and better markets. In Rome, we constructed a new lab to analyze quality traits from samples coming from around the world from our Cacao of Excellence Program, helping farmers break into the ever-growing market of fine-flavor chocolate. 3. People sustainably manage farms, forests, and landscapes that are productive and resilient to climate change. Our work to protect and restore Landscapes took us in many directions: from identifying climate risks with contributions to the Intergovernmental Panel on Climate Change (IPCC) Report, mapping deforestation in Vietnam, championing soil health across Africa, to making the news with studies on endangered trees and carbon sequestration. Flagship projects such as SERVIR Amazonia, Agua de Honduras, and CAL-PSE kept a strong focus on sustainable land use and conservation that benefits farmers, an increasingly urgent issue. At our new Senegal office, we launched an effort to promote 1 8 For the year ended 31 December, 2022 entrepreneurship in climate-smart agriculture, specifically targeting women farmers. A particularly productive collaboration with Mineral, a Google-initiated research and development organization, used drones, rovers, and smartphone apps to apply artificial intelligence to climate-smart phenotyping (visual observation for better breeding). 4. Communities and institutions sustainably use and safeguard agricultural biodiversity. Finally, our work on Crops and Agrobiodiversity reached new heights with the launch in Cali of Future Seeds, our state-of-the-art genebank. With a mandate “from Colombia to the world”, this conservation hub for beans, forages, and cassava, and a platform to unlock knowledge from other species, has raised our profile globally, secured a $17M grant from the Bezos Earth Fund, and opened the doors to new international collaborations. Likewise, our banana conservation research, complemented by our genebank in Leuven, Belgium, made a splash with a feature in the New York Times. We also published a landmark report measuring the status of agrobiodiversity across 10 Mediterranean countries, using our Agrobiodiversity Index, which was adopted as an indicator at the UN Convention on Biological Diversity’s COP15 meeting in Montreal at the end of year. Our Global Reach Alliance scientists produced over 1,070 publications during the year (86% Open Access), further cementing our reputation as a research and thought leader. With the wide range of knowledge encompassed by our six Research Levers1 and cross-cutting areas, we brought evidence and insights to high-level global dialogues on some of the most urgent issues facing our food systems. Our leaders, scientists, and partners were active in over 50 events at the UN Climate COP27 in Sharm El-Sheikh, Egypt, contributing to the Food and Agriculture pavilion with other CGIAR colleagues, the FAO and The Rockefeller Foundation. Our science was also present at COP15 of the UN Convention on Biological Diversity, where our long-term efforts to formulate the post-2020 Framework for Biodiversity were part of a larger landmark “deal for nature”. We saw that, despite increasing awareness, there are still opportunities to better connect what we grow and eat to the existential threats of climate change and biodiversity loss. We recognize that collaboration is critical to overcome interlinked challenges. Over the course of the year, we increased our number of private sector partners, bringing new investment and business models to the Alliance. One exciting example is our Accelerate for Impact Platform, an Alliance-led incubator that works with young people and startups across the world to identify sustainable innovations, beginning with an agricultural challenge hosted in Morocco. From the financial perspective, we executed USD148.5MM in 2022, a significant increase compared to the USD125.5MM spent in 2021. Bioversity executed USD30.7MM of expenses while CIAT reached a total of USD117.8MM. The non-operating net result of USD2.4MM supported the final year-end surplus of USD 2.0MM at the Alliance level. Also, our reserves have significantly increased at the end of 2022 with a dollar value of USD44.9MM and a reserve days value of 129. Finally, while Bioversity and CIAT remain independent legal entities, the Alliance achieves several efficiencies and operational gains generated by the continuing harmonization efforts between the two centers. 1 (1) Food Environment and Consumer Behavior; (2) Multifunctional Landscapes; (3) Climate Action; (4) Biodiversity for Food and Agriculture; (5) Digital Inclusion; and (6) Crops for Nutrition and Health, with cross-cutting work including Gender and Inclusion. 2 9 For the year ended 31 December, 2022 Institutional evolution From the moment Bioversity and CIAT signed a Partnership Agreement to come together as the Alliance, there has been tremendous progress in how the organization backstops its research for development mandate. We have developed a robust policy framework with 62 policies, processes, and guidelines at the organizational and functional levels, that have led to a more efficient and effective working environment. We have also invested significantly in strengthening our information technology network infrastructure, business intelligence, and research data management. An important milestone was the implementation of SAP Concur, a system that supports the travel management needs of our staff. In terms of our infrastructure in countries, we signed a new host country agreement to have a total of 25 active host country agreements with government counterparts, and invested in our country offices, such as the new Alliance compound in one of Uganda’s National Agricultural Research Organization’s (NARO) campuses, which we inaugurated in April. Future Seeds also became the first global genebank and the first building in Latin America certified with LEED Platinum v.4.0., signalling our commitment to sustainable infrastructure. Finally, our Alliance community has grown significantly reaching around 2,000 staff that we support and promote through the development of an inclusive and respectful workplace. One CGIAR Reform In January 2022, 31 new CGIAR initiatives were launched to help radically realign food, land, and water systems. CGIAR's new initiatives were designed by multidisciplinary teams of scientists from across the CGIAR System to make real, lasting, and positive impact across five Impact Areas: 1) Nutrition, Health, and Food Security; 2) Poverty Reduction, Livelihoods, and Jobs; 3) Gender Equality, Youth, and Social Inclusion; 4) Climate Adaptation and Mitigation; and 5) Environmental Health and Biodiversity. With CGIAR research and innovation providing a 10:1 return on investment, supporting the new initiatives provided funders with a clear path to impact for people, climate, and nature. In July 2022, following a System Board decision, CGIAR’s leadership structure evolved from being headed by an Executive Management Team comprised of three Managing Directors to an apex structure with Dr. Claudia Sadoff appointed as Executive Managing Director. This apex model is a natural progression from the two-year term-limited inaugural executive management structure and responds to CGIAR’s critical need to connect global science with regional and local partners in an effective and innovative way. For the better part of 2022, leaders across the CGIAR System engaged in the process to confirm and clarify the path to ‘One CGIAR’ and to pave the way for a united CGIAR to move forward with confidence and operate in a shared matrix structure. This led to the completion and subsequent approval in early 2023, of the new Integration Framework Agreement (IFA) by the boards of all ‘One CGIAR’ Centers[1] and by the System Organization, all parties to the IFA. The Chair of the Alliance co- chaired this process with Claudia Sadoff. We are already seeing a decisive shift in focus towards implementation of the IFA to operationalize how integrated teams will work together – ensuring that all Center staff are able to engage with and contribute to the Global and Regional Groups – and how we develop shared corporate services and systems. [1] ‘One CGIAR’ Centers: AfricaRice, Alliance of Bioversity International and CIAT, CIMMYT, CIP, ICARDA, IFPRI, IITA, ILRI, IRRI, IWMI, and WorldFish. 3 10 For the year ended 31 December, 2022 The Alliance in One CGIAR 2022 saw the Alliance play a significant role in One CGIAR, with much of our senior management team “double-hatting” to lead us through the development of a shared matrix structure supported by the Integration Framework Agreement that further connects the different Centers’ processes and staff. Of the 31 new CGIAR Initiatives that were launched, Alliance researchers have taken important roles in many of them, showing our expertise on topics such as Plant Health, Climate Resilience, Agroecology, and Excellence in Agronomy. Our Director General, Juan Lucas Restrepo, has played an instrumental role in designing and consolidating CGIAR’s Partnerships & Advocacy Global Group, which led the preparation of CGIAR’s Engagement Framework, launched the new “Capacity Sharing- for-Development” function in December, and was central in ensuring CGIAR presence and influence in key global fora. As always, the work of the Alliance and CGIAR depends on the strong support of many funders and partners. On behalf of the members of the Board of Trustees, I would like to extend warm thanks, especially to the Governments of Italy and Colombia, our principal host countries for their generosity. 2023 is already off to a strong start, and we look forward to seeing more fruits of our and the CGIAR system’s accomplishments in the coming months. Julia Marton-Lefèvre Board Chair, Alliance of Bioversity International and CIAT 4 11 For the year ended 31 December, 2022 Operational Decentraliza • Finalize Risk Registers of the Global Departments of the Alliance to identify any tion and scenario that requires attention. assurance • Update the Risk Regist ers of the Regions to identify any scenario that requires Alalitatnecnet iBoona. rd Statement on Risk Management • Develop Rbisyk JRueligai sMtearrst oonf -kLeeyf ècvoruen try offices. Chair of the• BoaIrdde notf iTfyr uasntde edse, vAellloiapn ckee yo pf rBoiocevedrusrietys Ianntde rgnuaitdioenlinael as ntdo CsuIApTp ort regional operations. Our approach to risk • Correct any issues identified during the due diligence assessment of regional and country offices. The Alliance Board recognizes that takin•g anFdi nmalaiznea gthineg H roissktsin igs aand inhtoesgteradl apgarrete omf ednetlsi vPeorliincgy aond i tPsr ostcreadteugrey. and that effective risk management is critical to its success and •a keyE enlesumreen atd oofp gtoioond ogfo tvheer nnaenwc eO. rTghaen iAzlalitaionncael BSotraurcdt oufr eT rinutsetegerast iisn rge tshpeo nnseiwbl eB ufosrin oevsesr seeing and approving risk management approachesO apnedra taiossnosc aiantde dF inpaonlicceie Ds.e pIta artlmsoe netn.s ures that effective risk management, compliance sysFtienmansc, iaanl d indepeFnudnednint ga ssurances are• impElenmgaegnintegd f.u Innd aenr se ivne trh-ceh Aanlligainncge e'sn vvairlounem peronpt,o tshiteio Bno. ard of Trustees ensures the adoption • Implement new business models. of best practices in risk management and alignment with the principles and guidelines defined by CGIAR and the CGIAR Risk Framework. • Upgrade the Alliance's resource mobilization capacity. HIno w20 w23e, m thaen aAglleia annced wmiolln ciotonrt irnisuke facing opportunities and risks in relation to operationalizing CGIAR’s matrix structure and Integration TFhrea mAellwiaonrcke ABgoraeredm heanst .u Wltiem aatlseo raensptiocinpsaibteil itthy afto ar cernossus rCinGgI AtRh,a tt hteh em Aalnliaagnecme ehnats oinf rpislakcse a anpdp orpopproirattuen ritisieks mshaonualgde mreemnat ina nfdo ciunsteedrn oanl cdoenltivreorl isnygs tae hmigsh a-nqdu aplirtayc rtiecseesa, racnhd p foorrt fdoelitoe,r smtrienninggt hthenei nnga tpuarert naenrds heixptse,n etn ogfa rgisinkg i te ifsf ewctililvinegly two ittahk pea frotnr ethrse, aonrgda mniazantaioginn gt oC GacIAhRie’vs ec oitsst ssttrrautcetguicre o tboj eaccthivieevs.e Tfhuert hsechr eedffuicleie onfc ipees riino doipc eBraotaiordn sm. eThetei ningsst ietnustiuorneasl tRhiaskt Mtimanealyg einmfoernmt aCtoiomnm ointt ereis ko fis t hpero Avlildiaendc efo wr itlhl eco Bnotianrude ttoo dsiuspchpaorrgte w itosr kre tsopwoanrsdibs ilaitnie asl.i gned approach to risk management across CGIAR. In 2023, additional focus will be placed on training staff and improving risk visibility, communication, and awareness. The Alliance Board has adopted a risk management policy – communicated to all staff – which includes a risk management framework that guides the Alliance’s management in the identification, evaluation, and prioritization of risks and opportunities, development of risk management strategies, and in overseeing the implementation of these strategies and periodical reporting to the Alliance Board and its Audit Finance and Risk Committee. This process draws upon risk assessment and analysis prepared by the staff of the Alliance’s departments, units, internal auditors, and external auditors. The Audit, Finance, and Risk Committee (AFRC) receives regular updates on any risk materialization and on the effectiveness of risk management practices, as well as independent assurances from its internal and _______________________ external auditors. Now, with the transition to One CGIAR, the AFRC has been unified and contributes to adopting one single governance structure. Our focal point on the AFRC regularly briefs the Board regarding the effectiveness and efficiency oJf utlhiae M Aallriatonnc-eL’esf èrivsrke management. Chair of the Board of Trustees, Alliance of Bioversity International and CIAT How we managed risk in 2022 The following top risks were identified during 2022: 1. One CGIAR transition risk 2. Funding risk 3. Impact delivery risk 4. People and talent risk 5. Decentralization and assurance risk 1. One CGIAR transition risk The change in the Alliance governance, due to the composition of the new Board of Trustees, presented some risks related to conflict of interest, duty of care of the specific Alliance Board and a risk of weak connection with the AFRC. The Alliance senior leaders’ time dedication to CGIAR processes led to a risk of lack of oversight in the integration process of the Alliance. There was a lack of understanding of the Alliance and the regional needs in terms of Policies, Manuals, and Processes; and a lack of trust and alignment of expectations between stakeholder groups of One CGIAR. The organizational culture and well-being of staff were affected, given the uncertainty about employment conditions and career management/stability. 12 For the year ended 31 December, 2022 Operational Decentraliza • Finalize Risk Registers of the Global Departments of the Alliance to identify any tion and scenario that requires attention. assurance • Update the Risk Registers of the Regions to identify any scenario that requires To mitigate these risks, the Alliance ensured aacttteivnet ipoanr.t icipation of its Board in the governance process and active participation of its • Develop Risk Registers of key country offices. scientific staff in discussions around One CGIAR initiatives. A high-level operational structure was developed to empower functional • Identify and develop key procedures and guidelines to support regional managers across the different business unitso poefr athtieo nAsl.l iance. Management kept a cohesive line of communication with staff and supported different initiatives at the CGI•A R leCveolr,r esuctc ha nays itshseu eIns tiedgernattiifoiend F druamrinegw tohrek dAuger edeilmigeenntc e(I FaAss)e, sasnmd eontth eorf rpergoijoencatsl athnrdo ugh the different CoPs where the Alliance plays a role.c ountry offices. • Finalize the Hosting and hosted agreements Policy and Procedure. 2. Funding risk • Ensure adoption of the new Organizational Structure integrating the new Business Operations and Finance Department. ThFeirnea nwcaias l a risk of Fduencdreinagse d funding du•e to Eunngcaegritnagin ftuyn rdeegrasr idni nthg et hAell iOancee C'sG vIaAlRu er epfroorpmo saitnido nt.h e integration of Centers, including a risk of losing bilateral funding and Windo•w 3 pImropjelecmts ednute n teow p boutesninteiasls r meqoudireelsd. alignment to the CGIAR research portfolio. There was a risk of decrease in the funding pipeline d•u e toU sptgarfaf dtiem teh ed eAdlliicaantceed' st ore tsroaunrscitei omnoinbgi litzoa tOionne cCaGpIaAcRit,y s.h ifting donor interest towards new p riorities, and limited staff and financial resource allocation for fundraising capacity in the Alliance. In 2023, the Alliance will continue facing opportunities and risks in relation to operationalizing CGIAR’s matrix structure and Integration TFhreamsee rwisokrsk w Aegrree emmiteignatt. eWd eb ya lscoo natnintiuciinpga tteh eth eaftf oarctrso stos CraGisIAeR f,u tnhdes manadn adgiveemrseinfyt foufn rdisiknsg asntrde aomppso, retnugnaitgiiensg sfhuonudledr rse omna tinh ef oAcluliasendc eo'sn vdaeluliev eprrinogp oas hitiigohn-;q uupaglirtayd riensge tahrech A plloiarntfcoel'iso ,r esstroeunrgceth menoibnigli zpaatriotnne crsahpiapcsi,t ye;n ggeangeinrga teinffge scativvienlgys w ainthd peacortnnoemrsi,c a enfdfi cmieanncaiegsin agt CoGpIeArRa’tsio cnoaslt lestvreulc. t ure to achieve further efficiencies in operations. The institutional Risk Management Committee of the Alliance will continue to support work towards an aligned approach to risk management across CGIAR. In 2023, additional focus will be placed on training staff and i3m. proImvinpga crti sdke vliivsiebriyli tryis, kc ommunication, and awareness. The increased One CGIAR transition demands on staff affected the Alliance's ability to implement. The integration of the two entities of the Alliance brought operational challenges that generated delays in key business processes and affected the programmatic implementation. The start-up of the initiatives was complex, given the lack of clarity or reprocesses in the structuring of the budget, and other key activities. A reduction in new proposals and/or winning new proposals could have occurred given staff t ime allocation. The pressure to execute new One CGIAR initiatives funds could have reduced the ability to spend bilateral project funds (representing 70% of Alliance funds). _______________________ To mitigate these risks, a cross-cutting strategic plan to address operational inefficiencies and better support theJ uimliap Mlemaretonnta-tLieofnè vorfe project and initiatives was put in place. The One CGIAR trCanhsaiitri oonf tfhream Boewarodr ko f aTnrdu sttiemees,l iAnellisa nwceer eo f rBeivoiveewresidty. IInnstetirtnuatitoionnaal lS atnradt eCgIAicT Objectives were developed for the Alliance to achieve the expected project/budget execution. Finally, funding and staff allocation were monitored. 4. People and talent risk There was a risk of misalignment of role aspirations versus actual role availability in One CGIAR due to possible unattractiveness of positions, work-life balance, and uncertainty on job security, leading to a risk of loss of talent due to staff being worried about their place in One CGIAR. Also, time dedication to One CGIAR transition could possibly distract staff from delivering on their current jobs and responsibilities. Alliance management ensured regular communication on the developments of the Alliance and One CGIAR, communicated results on change and culture surveys and actions taken, reassured key staff, created multiple workforce planning scenarios, ensured the Alliance managers/scientists had the appropriate tools & resources; deployed a Smart Working Policy providing flexibility to staff; implemented Satisfaction surveys to understand staff satisfaction around internal expert services and where to improve; and implemented work-life balance initiatives. 5. Decentralization and assurance risk A risk specific to the Alliance was identified during 2022, related to Regional Offices and country Offices lacking proper internal controls to monitor regional and country field operations through appropriate procedures. It was identified that there could be a lack of assurance at the regional level and of processes given that capacities of the internal audit were being absorbed by the global engagements of One CGIAR. 13 For the year ended 31 December, 2022 ToO mpietrigaatitoen tahl ese riDskesc, ean dtruaeli zdailigence as•s essFmineanlti zoef Rreisgki oRneagli satnedrs c oofu tnhter yG oloffbicael sD wepaasr itmpelnetms eonf ttehde, Athlleia nAclleia tnoc eid deenvteiflyo apneyd an "Open and Closure of officeti poon liacnyd," and prepared a "Hscoesnteadr iaon tdh aHto rsetqinugir oefs o aftfticeenst iPoonl.i c y” (under development). The Senior Management Team - SMT discussed an aasdsujursatnmceen t in the or•g anizUaptidoantael tshtreu Rctisukr eR eagnidst eersst aobfl itshhee dRe ag inoenws tpoo isdietinotnif yo fa nByu ssicneensas rOiop tehraatt iroenqsu airneds Finance to strengthen operations and identify better oppaotrtteunntiitoiens. for improvement. Finally, the Risk Management Committee of the Alliance was strengthened and has the capacity to pro•v ide Da ebveetltoepr aRnisakl yRseisg ifsotre rMs aonf akgeeym coeunnt ttroy aonftfiicceipsa. te any major risk currently unattended. • Identify and develop key procedures and guidelines to support regional operations. In 2022, the Alliance continued to take •a ctioCnso rtroe cstt raennyg itshseune sr iisdke nmtiafnieadg edmureinngt tahcer odsuse C dGilIiAgRe.n cFeo causss ewssams epnlatc oefd r eogni omnaolv ainngd towards unified governance, strengthening the tone act otuhnet troy po fifnic reissk. management, enhancing an ethical culture, and managing research and transition risks and opportunities. • Finalize the Hosting and hosted agreements Policy and Procedure. • Ensure adoption of the new Organizational Structure integrating the new Business While the strategic risks of the Alliance due tOop ietsr autnioiqnus ea nrdo lFei nina nscuep pDoerptainrgtm CeGnItA. R strategies are largely intertwined with the CGIAR agFeinndaan,c iitasl operatioFnuanl driisnkgs tend to be Al•li ancEen sgpaegciinfigc .f uThnedreerfso irne t, hine aAdlldiaitniocen' sto v asulupep porrotipnogs CitGioInA.R -wide actions, the Alliance also takes actions to manage its own specific risks. •S elecItmepdl eemxaemnpt lnees wo fb eunshinaenscse mmoednetsls .d elivered at the CGIAR System Organization and CGIAR- wide are set out in the table below. • Upgrade the Alliance's resource mobilization capacity. In 2023, the Alliance will continue facing opportunities and risks in relation to operationalizing CGIAR’s matrix structure and Integration FFrraaumde Awlloergka tAiognrese inmveenstt.ig Watee da l so anticipate that across CGIAR, the management of risks and opportunities should remain focused on Tdheeli vAellriainngc ea hdiisgcho-qveuraelidty a r Fersaeuadrc Cha pseo ratsfo pliaor,t sotrfe anng athuedniti nugn dpearrttankeersnh iinp s2, 0e2n2g aogf itnhge e ofpfeecrtaivtieolny sw oitfh t hpea rAtlnliearnsc, ea’ns do fmficaen aing iBnugk CaGvuIA, RD’Rs Cc.o Ast ssttarfuf cmtuerme btoe ra cohf ioeuver pfuarrtthneerr ,e HffaicriveensctiPelsu sin, wohpoe rwataios nhsi.r eTdh ev iian sCtIiAtuTt,i oennagla Rgiesdk Min acnhaegqeumee fnrat uCdo mammoitutnetein ogf ttoh e~ UASll$ia2n7c,e0 0w0i.l lT choisn twinause a tno usnufpoproturtn awtoe rka ntodw isaordlast eadn ainlicgindeedn ta. pInp rolinaech w toit hr istkh em Aanlliaagnecme’esn Ft raacurdo sPsr CeGveIAnRti.o Inn P2o02lic3y, ,a adcdtiitoionn wala fso ctuask ewni llt ob et eprlmacienda toen t thriasi npienrgs ostna’sff eamndp liomypmreonvtin cgo rnistkra vcits.i bHiloitwy,e cvoemr, mthuisn ipcaetrisoonn, arensdi ganweadr ebneefossr.e receiving the termination notice. The Alliance has now formally lodged c riminal proceedings through the General Prosecutor’s office in Bukavu. The organization also took other measures and improved internal controls to reduce the risk of future cases. Outlook and developments for 2023 Moving forward, we anticipate that 2023 will continue to bring significant change, opportunities, and risks. Top risks for the Alliance are set out below: _______________________ Category Key risk Actions to manage risk Julia Marton-Lefèvre Strategic and One CGIAR • Active participatCihoani ro of ft hthe eA Bllioaanrcde oBfo Tarruds tine etsh,e A glloiavnecren aonf cBei opvreorcseitsys Ianntedr tnhaattio onfa l and CIAT Research transition Alliance scientific staff in discussions around the One CGIAR initiatives. • Participate and contribute with the transition discussions/ projects through the different relevant Communities of Practice. • Contribute with the development of the Internal Rules Framework document based on the lessons learned during the consolidation of the Alliance. • Management will keep a cohesive line of communication with the Alliance staff to inform about the most recent updates. Impact • A cross-cutting Integrating Process to address operational inefficiencies and delivery improve support for implementing projects and initiatives has been put in place. • The Alliance will continue to strengthen its lead role in the different initiatives and implement synergies where appropriate. • Institutional Strategic Objectives were developed for 2023 for the Alliance to achieve the expected project/budget execution. • Ensure the appropriate staff allocation. People and • Provide regular communication on the developments of the Alliance and One talent CGIAR. • Implement mitigation actions to issues evidenced through the different surveys conducted. • Reassure key staff and create multiple workforce planning scenarios. 14 For the year ended 31 December, 2022 OOppeerraattioionnaal l DDeecceennttrraalilzizaa •• FFininaalilzizee RRisiskk RReeggisistteerrss ooff t thhee GGlolobbaal lD Deeppaarrttmeennttss ooff tthhee AAlllilaiannccee ttoo idideennttififyy aannyy ttioionn aanndd sscceennaarrioio tthhaatt rreeqquuirireess a atttteennttioionn. . aassssuurraannccee •• UUppddaattee t thhee RRisiskk RReeggisistteerrss o off t thhee RReeggioionnss ttoo idideennttififyy aannyy sscceennaarrioio t thhaatt rreeqquuirireess aatttteennttioionn. . •• DDeevveelolopp RRisiskk RReeggisistteerrss ooff k keeyy ccoouunnttrryy oofffficiceess.. •• IIddeennttififyy aanndd d deevveelolopp kkeeyy pprroocceedduurreess aanndd gguuidideelilnineess ttoo s suuppppoorrtt rreeggioionnaal l ooppeerraattioionnss. . •• CCoorrrreecctt a annyy isisssuueess idideennttififieiedd dduurriningg t thhee d duuee d diliilgigeennccee a asssseessssmeenntt ooff rreeggioionnaal l aanndd ccoouunnttrryy o offfficiceess.. •• FFininaalilzizee t thhee H Hoossttiningg aanndd hhoosstteedd a aggrreeeemeennttss PPoolilcicyy a anndd PPrroocceedduurree. . •• EEnnssuurree a addooppttioionn ooff tthhee n neew O Orrggaannizizaattioionnaal l SSttrruuccttuurree inintteeggrraattiningg t thhee n neew BBuussinineessss OOppeerraattioionnss a anndd F Fininaannccee DDeeppaarrttmeenntt.. FFininaanncciaial l FFuunnddiningg •• EEnnggaagginingg ffuunnddeerrss inin t thhee AAlllilaiannccee's's vvaaluluee p prrooppoossititioionn.. •• IImpplelemeenntt n neew bbuussinineessss mooddeelsls.. •• UUppggrraaddee t thhee AAlllilaiannccee's's rreessoouurrccee moobbiliilzizaattioionn ccaappaaccitityy.. IInn 22002233,, t thhee AAlllilaiannccee wilill l ccoonnttininuuee ffaacciningg ooppppoorrttuunnititieiess a anndd rrisiskkss inin rreelalattioionn t too o oppeerraattioionnaalilziziningg CCGGIIAARR’’ss maattrrixix ssttrruuccttuurree aanndd IInntteeggrraattioionn FFrraameewoorrkk AAggrreeeemeenntt.. Wee aalslsoo aanntticicipipaattee tthhaatt aaccrroossss CCGGIIAARR,, tthhee maannaaggeemeenntt ooff rrisiskkss aanndd ooppppoorrttuunnititieiess sshhoouuldld rreemaainin ffooccuusseedd oonn ddeelilviveerriningg aa hhigighh--qquuaaliltityy rreesseeaarrcchh ppoorrttffooliloio, , ssttrreennggtthheenniningg ppaarrttnneerrsshhipipss, , eennggaagginingg eeffffeeccttiviveelyly witithh ppaarrttnneerrss,, aanndd maannaagginingg CCGGIIAARR’’ss ccoosstt ssttrruuccttuurree ttoo aacchhieievvee ffuurrtthheerr eefffficicieiennccieiess inin ooppeerraattioionnss.. TThhee ininssttitituuttioionnaal l RRisiskk Maannaaggeemeenntt CCoommitittteeee ooff tthhee AAlllilaiannccee wilill l ccoonnttininuuee ttoo ssuuppppoorrtt woorrkk ttoowaarrddss aann aalilgignneedd aapppprrooaacchh ttoo rrisiskk maannaaggeemeenntt aaccrroossss CCGGIIAARR. . IInn 22002233,, aaddddititioionnaal l ffooccuuss wilill l bbee pplalacceedd oonn ttrraainininingg ssttaaffff aanndd imi pprroovviningg rrisiskk v visisibibiliiltityy, , ccoommuunnicicaattioionn, , aanndd aawaarreenneessss.. ______________________________________________ JJuulilaia Maarrttoonn--LLeeffèèvvrree CChhaairir o off t thhee BBooaarrdd ooff TTrruusstteeeess,, AAlllilaiannccee o off BBioiovveerrssitityy IInntteerrnnaattioionnaal la anndd CCIIAATT 15 For the year ended 31 December, 2022 Statement of Management's Responsibilities The accompanying financial statements of Bioversity International for the years ended December 31, 2022 and 2021 have been prepared in conformity with International Financial Reporting Standards (IFRS) and give a true and fair view of the financial position of the Organization as at the end of the financial year and of its operating results for the year. The preparation of these financial statements is the responsibility of Management. Bioversity International maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded, transactions are executed and recorded properly in accordance with Management's authorization. The internal control system serves as an enabling mechanism for Bioversity International to adapt to changing operating and economic environments promoting operational efficiency, mitigate risks to acceptable levels, include a system of reporting which provides Management with an accurate view of the operations and at the same time provides a reliable basis for the financial statements and management reports, and finally, ensure compliance with the Organization’s policies and procedures. The internal audit function provides ongoing evaluation of the effectiveness and adequacy of the internal control system. PricewaterhouseCoopers (PwC) are engaged to examine the consolidated financial statements of Bioversity International and issue reports thereon. Their examination is conducted in accordance with International Standards on Auditing and includes a review of financial reporting, internal controls and a test of transactions. With the Alliance Partnership Agreement between Bioversity International and CIAT (International Center for Tropical Agriculture) taking into effect from 1 January 2020, a single Alliance Board of Trustees was formed. The Alliance Board of Trustees, through its Audit, Finance and Risk Committee (AFRC), is responsible for assuring that Management fulfills its responsibilities in the preparation of the financial statements and for engaging PwC with whom the Committee reviews the scope and results of their audit examination. AFRC meets regularly with Management, external and internal auditors to review matters relating to financial planning, auditing, financial reporting, internal control and risk management. 16 For the year ended 31 December, 2022 Having made an assessment of the Organization's ability to continue as a going concern, Management is not aware of any material uncertainties related to events or conditions that may cast doubt upon the Organization's ability to continue as a going concern. Signed on behalf of management on May 12, 2023 by: Juan Lucas Restrepo Ibiza Director General Victor Guardia Alliance Global Director, Business Operations and Finance Josephine Luzon Bioversity Head of Finance 17 STATEMENT OF FINANCIAL POSITION As of 31 December, 2022 and 2021 (US dollar 000s) As of 31 December As of 31 December Notes 2022 2021 ASSETS Current assets Cash and cash equivalents (6) 14,668 12,431 Short term investments (7) 8,260 8,200 Accounts receivables: 0 Donors, (net of allowance $264,000 in 2022; $251,000 in 2021) (8) 5,288 6,485 Employees (9) 147 102 CGIAR Centres (10) 382 1,247 Others (11) 312 182 Prepaid expenses (12) 2,794 3,327 Inventories (13) 311 311 Total current assets 32,162 32,285 Non-current assets Property and equipment, net (14) 2,055 1,630 Right of Use Assets, net (15) 6,183 6,524 Other non current assets (16) 144 138 Total non-current assets 8,382 8,292 Total assets 40,544 40,577 LIABILITIES Current liabilities Accounts payables: Deferred income from Donors (17) 7,583 8,234 Employees (18) 1,798 1,142 CGIAR Centres (19) 729 522 Accruals (20) 4,227 4,552 Others (21) 1,326 1,257 Hosted entities (22) 94 1,478 Lease liabilities (23) 340 305 Total current liabilities 16,097 17,490 Non-current liabilities Employees (24) 5,375 5,991 Lease liabilities (23) 5,395 5,918 Total non-current liabilities 10,770 11,909 Total liabilities 26,867 29,399 NET ASSETS (25) Undesignated 10,806 9,491 Designated 3,178 3,128 Temporary net assets-Other Comprehensive Income (307) (1,441) Total net assets 13,677 11,178 Total liabilities and net assets 40,544 40,577 The accompanying notes are an integral part of this statement. 18 STATEMENT OF ACTIVITIES AND OTHER COMPREHENSIVE INCOME For the years ended 31 December, 2022 and 2021 (US dollar 000s) 2022 2021 Notes Unrestricted Restricted Grand Total Unrestricted Restricted Grand Total REVENUE Grant revenue Windows 1 & 2 10,888 10,888 9,376 9,376 Window 3 5,459 5,459 2,865 2,865 Bilateral 2,646 9,827 12,473 2,928 9,171 12,099 Total grant revenue 2,646 26,174 28,820 2,928 21,412 24,340 Other revenue and gains (26) 2,455 1 2,456 1,970 46 2,016 Total revenue 5,101 26,175 31,276 4,898 21,458 26,356 EXPENSES AND LOSSES Research Expenses 669 18,081 18,750 1,546 14,833 16,379 CGIAR Collaborator Expenses 999 999 982 982 Non CGIAR Collaborator Expenses 7 4,336 4,343 8 3,386 3,394 General and Administration Expenses 3,802 2,758 6,560 2,778 2,211 4,989 Other expenses and Losses 1 1 46 46 Total expenses and losses (27) 4,478 26,175 30,653 4,332 21,458 25,790 OPERATING SURPLUS/DEFICIT 623 0 623 566 0 566 19 STATEMENT OF ACTIVITIES AND OTHER COMPREHENSIVE INCOME For the years ended 31 December, 2022 and 2021 (US dollar 000s) 2022 2021 Notes Unrestricted Restricted Grand Total Unrestricted Restricted Grand Total NON-OPERATING Finance Income (28) 579 579 696 696 Gain on sale of assets 50 50 1 1 Other non-operating income (29) 550 550 458 458 Total non-operating income 1,179 0 1,179 1,155 0 1,155 Loss on sale of assets Other non-operating costs Finance expenses (28) 437 437 253 253 Total non-operating expenses 437 0 437 253 0 253 NON-OPERATING SURPLUS/DEFICIT 742 0 742 902 0 902 SURPLUS/DEFICIT FOR THE YEAR 1,365 0 1,365 1,468 0 1,468 OTHER COMPREHENSIVE INCOME Actuarial gain/loss-Defined benefit plan (24) 1,134 1,134 (352) (352) Sub-total other comprehensive income 1,134 0 1,134 (352) 0 (352) TOTAL COMPREHENSIVE SURPLUS/ DEFICIT FOR THE YEAR 2,499 0 2,499 1,116 0 1,116 The accompanying notes and exhibits are an integral part of this statement. STATEMENT OF CHANGES IN NET ASSETS For the years ended 31 December, 2022 and 2021 (US dollar 000s) Other UNRESTRICTED comprehensive income Designated Total Undesignated Reserve for Actuarial Property, Plant Replacement of Sub-Total gain(loss) and Equipment Property, Plant Designated and Equipment Balance at 1 January 2021 8,023 901 2,226 3,127 (1,089) 10,061 Depreciation for the year (324) 324 0 Additions during the year 1,061 (1,061) 0 Disposals during the year (7) 8 1 1 Surplus (Deficit) for the year 1,468 0 1,468 Other Comprehensive Income 0 (352) (352) Balance at 31 December 2021 9,491 1,631 1,497 3,128 (1,441) 11,178 Depreciation for the year (153) 153 0 0 Additions during the year 414 (414) 0 0 Disposals during the year (50) (4) 54 50 0 Balance at 31/12/2022 1,365 0 1,365 Other Comprehensive Income 0 1,134 1,134 Balance at 31 December 2022 10,806 1,888 1,290 3,178 (307) 13,677 The accompanying notes and exhibits are an integral part of this statement. 21 STATEMENT OF CASH FLOWS For the years ended 31 December, 2022 and 2021 (US dollar 000s) 2022 2021 Cash flows from operating activities Surplus/(Deficit) for the Year 1,365 1,468 Adjustments to reconcile changes in net assets to net cash provided by operating activities: Depreciation 724 651 Loss/(gain) on disposal of fixed assets (4) (1) Interests on leases 386 294 Unrealized loss/(gain) on liabilities denominated in foreign currency (337) (120) Decrease (increase) in assets: Accounts receivable: Donors 1,197 (2,460) Employees (45) (46) Other CGIAR Centres 865 56 Others (136) 112 Prepaid expenses 533 (53) Inventories (205) Increase (decrease) in liabilities: Accounts payable: Deferred income from donors (651) 3,247 Employees 1,174 732 Other CGIAR Centres 207 280 Accruals (325) 254 Others 69 (89) Hosted entities (1,384) 36 Net cash inflow (outflow) from operating activities 3,638 4,361 Cash flows from investment activities Decrease (increase) of Investments (60) (1,206) Acquisition of equipment (647) (1,061) Proceeds from disposal of fixed assets 4 2 Net cash inflow (outflow) from investing activities (703) (2,265) Cash flows from financing activities Increase (decrease) in long-term liabilities Lease payments (289) (234) Interests paid on lease liabilities (386) (294) Foreign exchage loss/gain (23) (305) Net cash inflow (outflow) from financing acivities (698) (833) Net increase (decrease) in cash and cash equivalents 2,237 1,263 Cash and cash equivalents at the beginning of the period 12,431 11,168 Cash and cash equivalents at the end of the period 14,668 12,431 The accompanying notes and exhibits are an integral part of this statement. 22 For the year ended 31 December, 2022 Notes to the financial statements (1) Statement of purpose a climate crisis. The CGIAR 2030 Strategy covers all research- for-development programming across CGIAR. This Strategy Bioversity International1, hereinafter referred to as has been delivered through 3-years Investment Plans, which “Bioversity”, began operating in 1974 and has evolved to will frame CGIAR work supported by pooled funding of large meet the needs of stakeholders. CGIAR Initiatives. In 2018, Bioversity signed a Memorandum of Understanding CGIAR Initiatives are major, prioritized areas of investment and (MoU) with the International Center for Tropical Agriculture organized by the three Action Areas: Systems Transformation, (CIAT) towards the establishment of an Alliance to deliver Resilient Agrifood Systems, and Genetic Innovation. research-based solutions that address the global crises of malnutrition, climate change, biodiversity loss, and All Initiatives will seek to achieve results across the five Impact environmental degradation. The MoU establishes the Areas identified in the Strategy: Nutrition Health and Food foundations of the Alliance of Bioversity and CIAT, including Security; Poverty Reduction, Livelihoods, and Jobs; Gender its vision, mission and strategic objectives, one Board of Equality, Youth, and Social Inclusion; Climate Adaptation and Trustees and one Director General based in Rome, Italy. In Mitigation; and Environmental Health and Biodiversity. 2019, the Alliance launched its 2020-2025 strategy, An Alliance In 2022 31 CGIAR Initiatives and 5 Impact Area Platforms have for Accelerated Change: Food Systems Solutions at the Nexus of been implemented and Bioversity was partner in 22 Initiatives Agriculture, Environment and Nutrition. and 1 Platform. Bioversity is a CGIAR research center. CGIAR is a global The annual allocation to different centers, with respect to research partnership for a food-secure future. Its science is relevant CGIAR Initiatives and/or Impact Area Platforms, is carried out by 15 research centers in close collaboration with communicated by the CGIAR System Organization through hundreds of partners across the globe. decision letters. Based on the initial 2022-2024 CGIAR Portfolio Vision and Designated Financing Plan (FINPLAN), the estimated share of the 2022 annual allocation for Bioversity for relevant CGIAR Food systems and landscapes that sustain the planet, drive initiatives and Impact Area platforms is $13.8m ($11.0m already prosperity and nourish people. received in 2022). Mission Financial support for the research agenda programme of Bioversity’s mission is to deliver research-based solutions that Bioversity is provided by national governments, development harness agricultural biodiversity and sustainably transform food agencies, regional development organizations, development systems to improve people’s lives in a climate crisis. banks, United Nations agencies, universities, other CGIAR centers, scientific foundations and trusts, and private sector Bioversity is a global research-for-development organization. sources. The Organization’s research effort is geared towards delivering scientific evidence, management practices and policy options The international status of Bioversity was conferred under to use and safeguard agricultural and tree biodiversity to an Establishment Agreement which has been signed and attain global food and nutrition security. Bioversity works ratified by 56 governments. In January 1994, arrangements closely with hundreds of partners in low-income countries in with the Government of Italy to confirm Rome as Bioversity’s different regions where agricultural biodiversity can contribute headquarters were concluded and published in the Gazzetta to improved nutrition, resilience, productivity and climate Ufficiale no. 23 of 29 January 1994. An agreement (Legge change adaptation. Furthermore, the Organization also closely n.157) was passed into law on 4 August 2016, published in the collaborates with the other 14 CGIAR Centres, national and Gazzetta Ufficiale n. 188 of 12 August 2016 and finally ratified regional research institutes, civil society organizations, academia on 26 October 2016. The agreement reinforces the long-standing and the private sector around the world who make delivering partnership between Bioversity and Italy to advance research Bioversity’s research portfolio possible. activities to use and safeguard agricultural biodiversity to create food systems and landscapes that sustain the planet, CGIAR’s 2030 mission is to deliver science and innovation that drive prosperity and nourish people. Towards such end, the advance the transformation of food, land, and water systems in agreement enshrines into law an annual financial contribution 1 With effect from 1 December 2006, the International Plant Genetic Resources Institute (IPGRI) began operating under the name Bioversity International. 24 Notes to the Financial Statements from the Government of Italy to Bioversity towards achievement • Statement of activities and other comprehensive income of this mission. Bioversity is exempt from direct (income) and includes the income statement and other comprehensive indirect (value-added) taxation. income. The statement of activities has been prepared Bioversity is not subject to statutory and regulatory laws by classifying expenses based on their function. Other requiring the entity to prepare annual financial statements. comprehensive income includes re-measurement of However, following CGIAR governance requirements, employee benefit obligations; Bioversity International prepares annual financial statements in • Cash flow statement presents the cash flows generated order to report to its stakeholders its operating performance and by operating activities using the “indirect method”. financial position. The financial statements are prepared on a going concern basis. (2) Summary of significant accounting policies 2.2 Functional currency and translation of foreign The significant accounting policies adopted in the preparation currencies of these financial statements are presented as follows. These Bioversity’s financial statements are presented in United States policies have been consistently applied to all the years shown, dollars which is also the Organization’s functional currency. unless otherwise stated. Monetary assets and liabilities denominated in other currencies 2.1 Basis of preparation different from Bioversity’s functional currency are converted at the exchange rate in effect at the end of each financial These financial statements have been prepared in accordance period. Grants received in currencies other than US dollars are with International Financial Reporting Standards (IFRS). recorded at market exchange rates in effect at the time the grant The designation IFRS also includes International Accounting is received or, if outstanding as of 31 December, at the market Standards (IAS) as well as all the interpretations of the exchange rate in effect at the end of the year. International Financial Reporting Interpretations Committee (IFRIC and SIC). Income and expenses in currencies other than US dollars, as well as non-monetary assets and liabilities are recorded at the Bioversity prepares its financial statements, except for cash official exchange rate on the dates of the transactions. flow information, under the accrual basis of accounting. Net gains/losses arising from exchange rate fluctuations are Under the accrual basis of accounting, transactions and reported under financial expenses. events are recognized when they occur (and not when cash or its cash equivalent is received or paid) and these are recorded 2.3 Revenue recognition in the accounting books and reported in the financial statements during the periods to which they relate. Expenses Revenue is measured at the fair value of the consideration are recognized in the statement of activities on the basis of a received or receivable and recognized when prescribed direct association between the costs incurred and the earnings conditions are met, which depend on the nature of the revenue. of specific items of revenue. Bioversity recognizes revenue when the related performance The financial statements have been prepared and presented obligation is satisfied, in line with IFRS 15. The following in US Dollars (US$) which is Bioversity’s functional currency. paragraphs describe Bioversity’s activities and conditions to Unless otherwise indicated, all amounts are stated in consider the related performance obligations satisfied. thousands of US Dollars and have been rounded off to the 2.3.1 Grant revenue nearest thousand currency units. Grants are recognized as revenues only when the conditions Financial statement formats and related classification criteria have been substantially met or the donor has explicitly adopted by Bioversity, in accordance with IAS 1 – Presentation waived the condition. of Financial Statements, are as follows: The major portion of Bioversity’s revenue is derived • Statement of financial position has been prepared using through the receipt of donor grants – either ‘Unrestricted ‘or the current/non-current distinction; ‘Restricted‘. 25 Notes to the Financial Statements (a) Unrestricted grant revenue 2.5 Accounts receivable Unrestricted grants (including Government grants) are Receivables are recognized initially at fair value and subsequently those received from unconditional transfers of cash or measured at amortized cost using the effective interest method other assets to Bioversity. less provision for impairment. Short term receivables with no Unrestricted grant revenue is split as follows: stated interest rate are measured at the original invoice amount because the effect of discounting is immaterial. - Window 3: Funding that donors wish to allocate to Bioversity as unrestricted, but that flows through the Receivables are generally defined as claims held against others CGIAR Fund; for the future receipt of money, goods or services and include claims from donors, advances to employees, and advances - Bilateral: Unrestricted funding that flows directly from to other CGIAR Centers and claims against third parties for donors to Bioversity. services rendered. (b) Restricted grant revenue Accounts receivable from donors consist of claims from donors Restricted grants are those received from a transfer for grants pledged in accordance with the terms specified by the of resources to Bioversity in return for past or donor. It also pertains to claims from donors for expenses paid future compliance to the operating activities of the on behalf of projects in excess of cash received. Organization. Allowances for doubtful accounts represent the expected credit Restricted grant revenue is split as follows: losses on accounts receivables, in line with IFRS 9. The amount in the allowance is based on historical trends and on a regular - Windows 1 & 2: Pooling funds from CGIAR disbursed review of receivable reports and other relevant factors. directly to the Organization for the implementation of CGIAR Initiatives; Any receivable or portion of receivable judged to be un-collectible is written off. Write-offs of receivables are done via allowance for - Window 3: Funding that donors wish to allocate to Bioversity doubtful accounts after all efforts to collect have been exhausted. for specific projects related to CGIAR Initiatives or other research activities, but that flows through the CGIAR Fund; 2.5.1 Recognition - Bilateral: Funding that flows directly from donors to - Unrestricted grants: receivables from unrestricted Bioversity for specific projects that are related either to grants are recognized in full in the period specified CGIAR Initiatives or to other research activities. by the donor. Before an unrestricted grant can be recognized as revenue, sufficient verifiable evidence 2.3.2 Other revenue and gains should exist documenting that a commitment was made Interests, losses, and gains relating to financial instruments by the donor and received by Bioversity. are reported in the statement of activities as expense or - Restricted grants: receivables from restricted grants revenue. Interests are recorded using the effective interest are recognized in accordance with the terms of the rate method which discounts future flows of payments underlying contract. and cash receipts over the expected life of the financial instrument, or a shorter duration, as applicable, with respect - Receivables from employees are recognized as they to the net carrying amount of the financial asset. arise and cancelled when payment is received. Other revenues and gains include, but are not limited - Advances to other CGIAR Centers are recognized to income from hosting other entities, board member when the cash or other assets borrowed are delivered or contributions, bad debt recovery and adjustments for prior when payment is made for a liability of another Center. years accruals and accounting estimates. - Other receivables are recognized upon the occurrence of event or transaction which gives Bioversity a legal 2.4 Cash and cash equivalents claim against others. Cash and cash equivalents include cash on hand, petty cash funds, demand deposits with financial institutions, 2.6 Short term investments other short-term and highly liquid investments with Short term investments include investments acquired with original maturities of three months or less that are readily original maturities of more than three months and expected convertible to known amounts of cash and which are subject to be realized within twelve months. Bioversity’s short term to an insignificant risk of changes in value. investments are mainly composed of time deposits in US dollars bearing interest at current bank rates. Investments are valued at their acquisition cost (including brokerage and other transaction costs). 26 Notes to the Financial Statements As of 31 December 2022, Bioversity’s investments in time deposits and money market funds, denominated in US Class of tangible assets Useful life in years dollars amounted to $14.8m, of which $2.5m in time deposit placements and $4.0m in money market funds were classified Building 40-100 as cash equivalents (see Note 7). Leasehold improvements Lessor useful life or contract term 2.7 Property, plant and equipment Furniture, fixtures and Property and equipment are defined as tangible assets that: equipment 8-12 (a) are held by Bioversity for use related to the main Scientific equipment 8-12 objectives of the Organization, including research Vehicles 4-6 activities and administrative and technical support Computers and other IT services; equipment 3-5 (b) are expected to be used for more than one period; and, 2.7.1 Property and equipment acquired from designated (c) have a minimum cost of $ 3,000. (restricted) funds These assets are stated at historical cost less depreciation. Property and equipment acquired from restricted funds Historical cost includes expenditure that is directly are expensed in accordance with the grant agreement. attributable to the acquisition of the items. Upon termination of the grant, the project asset will be Subsequent costs are included in the asset’s carrying amount recorded in Bioversity’s books at cost less accumulated or recognized as a separate asset, as appropriate, only when depreciation (book value) and accounted for as one of its it is probable that future economic benefits associated with fixed assets. IAS 16 allows the cost model or the revaluation the item will flow to Bioversity and the cost of the item can be model in the measurement of the value of the asset after measured reliably. The carrying amount of any component the first recognition. Bioversity opted for the cost model in accounted for as a separate asset is derecognized when accounting for project assets at the end of the project life. replaced. All other repairs and maintenance are charged to the statement of activities during the reporting period in 2.8 Right-of-Use Assets which they are incurred. The right-of-use asset is a lessee’s right to use an asset over The assets’ residual values and useful lives are reviewed, the life of a lease. and adjusted if appropriate, at the end of each reporting IFRS 16 states that a customer has the right to direct the use period. of an identified asset if either the customer has the right to An asset’s carrying amount is written down immediately direct how and for what purpose the asset is used throughout to its recoverable amount if the asset’s carrying amount is its period of use; or obtain substantially all of the economic greater than its estimated recoverable amount. benefits from the use of the asset. Gains or losses arising from the retirement or disposal of The asset is calculated as the initial amount of the lease property and equipment are determined as the difference liability, plus any lease payments made to the lessor before between the proceeds and the carrying amount of the asset the lease commencement date, plus any initial direct costs and are recognized in the statement of activities as ‘Gain/ incurred, minus any lease incentives received. Loss on sale of assets.’ The right-of-use asset is subsequently depreciated. Depreciation of property, plant and equipment is calculated Depreciation is over the shorter of the useful life of the asset on the straight-line basis over their useful lives. Estimated and the lease term, unless the title to the asset transfers at useful lives are as follows: the end of the lease term. For Bioversity, depreciation is over the lease term. 2.9 Trade and other payables Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Short term payables with no stated interest rate are measured at the original invoice amount because the effect of discounting is immaterial. 27 Notes to the Financial Statements Trade payables represent amounts due to donors, employees The net interest cost is calculated by applying the discount and others for support, services and materials received prior rate to the net balance of the defined benefit obligation. This to year-end but not paid for as of the date of the statement of cost is included in ‘Finance expenses’ in the statement of financial position. activities. Deferred income from donors includes grants received from Re-measurement of gains and losses arising from experience donors for which conditions are not yet met to record as revenue adjustments and changes in actuarial assumptions are and amounts payable to donors in respect of any unexpended recognized in the period in which they occur, directly in other funds received in advance for signed contracts. comprehensive income. They are reported in the statement of changes in net assets and in the statement of financial 2.10 Provisions position. Provisions are recognized when: (a) Bioversity has a present Changes in the present value of the defined benefit obligation legal or constructive obligation as a result of past events, (b) resulting from planned amendments or curtailments are it is probable that an outflow of resources will be required recognized immediately in the statement of activities as past to settle the obligation and (c) the amount can be reliably service costs. estimated. Provisions are not recognized for future operating losses. 2.11.3 Repatriation grant When Bioversity expects some or all of a provision to be Other non-current liabilities include amounts due to reimbursed, the reimbursement is recognized as a separate Internationally Recruited Staff for travel and shipping costs asset, but only when the reimbursement is certain. The at end of service, calculated in accordance with the personnel expense relating to a provision is presented in the statement policies of Bioversity. of activities, net of any reimbursement. 2.12 Net assets 2.11 Employee benefits Net assets are the residual interest in Bioversity’s assets remaining after liabilities are deducted. 2.11.1 Short-term obligations The short-term employee benefit obligations refer to the Net assets are classified as either undesignated, designated, amount expected to be paid within twelve months if Bioversity or other comprehensive income. has a present legal or constructive obligation to pay this 2.12.1 Undesignated amount as a result of past service provided by the employee - that part of net assets not designated by Bioversity’s and the obligation can be estimated reliably. These liabilities Board of Trustees for specific purposes. are measured on an undiscounted basis, expensed as the related service is provided and presented as current employee 2.12.2 Designated benefit obligations in the statement of financial position. - that part of net assets that has been designated by 2.11.2 Separation allowance Bioversity’s management for replacing property and equipment, and other activities or purposes. Any The liability for separation allowance refers to accruals for specific appropriation from undesignated net assets for end-of-service benefits due to staff members in accordance other activities or purposes, apart from the purpose of with the personnel policies of Bioversity. covering the acquisition and replacement of property The liability recognized in the statement of financial position and equipment, has to be approved by the Board of with the defined benefit plans is the present value of the Trustees. defined benefit obligation at the end of the reporting period. 2.12.3 Other comprehensive income The defined benefit obligation is calculated annually by an independent actuary using the projected unit method. - Includes the actuarial gain/(loss) resulting from the valuation of the defined benefit plan. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. 28 Notes to the Financial Statements (3) Application of new and revised to the extent possible, or minimize their impact on the International Financial Reporting Standards ongoing operations of the Organization should they occur. (IFRS) Financial risk management is embedded in the overall risk management framework of the Alliance. 3.1 New and amended standards that are effective for an annual period that begins on or after 1 4.1 Market risk January 2022 Bioversity is exposed to market risks associated with 3.1.1 Amendments to IAS 8 Accounting Policies, exchange rates. Changes in Accounting Estimate and Errors: Definition (a) Foreign Exchange risk of Accounting Estimates Bioversity operates internationally and is exposed On 12 February 2021, the IASB published Amendments to IAS to foreign exchange risk arising when its business 8 Accounting Policies, Changes in Accounting Estimate and transactions are in currencies other than US dollars. The Errors: Definition of Accounting Estimates”, with the aim of foreign exchange risk primarily relates to foreign currency distinguishing changes in accounting policies from changes in denominated payables for local and international accounting estimates. This document is applicable to financial operations. Bioversity monitors the exposure to foreign statements for financial years beginning on or after 1 January exchange risk arising from operating activities and does 2023. The principle was approved on 2 March 2022. not use derivative financial instruments to hedge its 3.1.2 Amendments to IAS 1“Presentation of Financial foreign exchange exposure in relation to investments or Statements: Classification of Liabilities as Current or cash flows. Non-current” (b) Price risk On 23 January 2020, the IASB published some amendments Bioversity does not hold any financial instruments to IAS 1. The document “Presentation of Financial Statements: subject to price risk. Classification of Liabilities as Current or Non-current” requires that a liability be classified as current or non-current based on (c) Interest rate risk the rights existing at the reporting date. In addition, it states that Bioversity does not hold any borrowings from a third the classification is not affected by the entity’s expectation that party and hence is not subject to interest rate risk. it will exercise its right to defer settlement of the liability. Finally, it clarifies that such settlement consists of the transfer of cash, 4.2 Credit risk equity instruments, other assets or services to the counterparty. The amendments were initially expected to become effective Bioversity’s credit risk represents the exposure of the on 1 January 2022, however, the IASB, in a second document Organization to potential losses due to counterparty published on 15 July 2020 entitled “Classification of Liabilities inability to discharge the obligations undertaken. This as Current or Non-current - Deferral of Effective Date”, deferred exposure mainly relates to trade receivables deriving their effective date to 1 January 2023. from claims from donors for grants promised or pledged or for expenses paid on behalf of projects in excess of cash The application of these amendments is not expected to have received. any significant impact on the financial statements. The credit risk is considered low due to the fact that donors 3.2 Early Adoption of Standards consist primarily of donor nations, development banks/ organizations/agencies, UN agencies, large international Bioversity did not early adopt any new Standard which organizations and other CGIAR centers. In the ordinary applies to periods after 2022. course of the business, Bioversity faces the risk that receivables may not be paid on the due date leading to (4) Management of Financial Risks impairment and eventual default. The activities of Bioversity are exposed to the following In order to mitigate the credit risk associated with its risks: market risk (including exchange rate risk), credit counterparties, Bioversity regularly reviews its credit risk, and liquidity risk. The Board-approved risk exposure and monitors the collection of receivables on the management policy puts in place a risk management contractually agreed due dates. The assets are reported framework which is designed to systematically identify gross of impairment losses calculated on the basis of the high and significant risks and also puts in place controls for default risk of the counterparties, taking into account the managing those risks, so as to minimize their occurrence information available on solvency as well as historical data. 29 Notes to the Financial Statements Credit risk arises from cash and cash equivalents and though considered to have high credit risk were left open deposits with banks and financial institutions as well because of justifiable reasons and treated separately in as accounts receivable. Credit risk is the risk that the the calculation of the bad debt provision; and counterparty will default on its contractual obligations - estimating the percentage of credit losses likely resulting in financial loss to Bioversity. to occur in each age group pf accounts receivable For banks and financial institutions, only reputable well- considering Bioversity International’s historical credit established financial institutions are accepted. For trade loss experience adjusted by forward-looking information receivables: where correlation exists. • Reviews of aging reports are carried out monthly The movement in the allowance for uncollectible accounts and provisions for doubtful amounts made for any in respect of receivables during the year was as follows: potentially irrecoverable amounts. ($000s) • Advances to partner and hosted centers are subject to Bioversity’s internal requirements to limit losses As of December 31, 2021 251 arising from funds advanced by the Organization. Increase (decrease) due to the ECL The assets are reported gross of expected credit losses calculation 3 calculated based on the default risk of the counterparties, Uses (137) considering the information available on solvency as well as historical data. Provision for specific positions 147 ($000s) As of December 31, 2022 264 At 31 At 31 December December 2022 2021 4.3 Liquidity risk Liquidity risk takes place when Bioversity does not have Accounts receivable enough financial resources available to meet its financial Not yet overdue 2,477 6,726 obligations and commitments when due. Prudent liquidity Overdue 91-180 days 1,076 792 risk management includes maintaining sufficient cash Overdue 181-270 days 793 288 balances and the availability of funding from bilateral donors. Overdue 271-365 days 1,372 Overdue by more than 365 Cash flows required to settle other financial liabilities, other days 675 461 than those to lenders, do not differ significantly from the recognized carrying amount. In this regard, it is noted that: Provision for doubtful receivables (264) (251) - various sources of financing are available from 6,129 8,016 different banks; - there is no significant concentration of liquidity risk, The allowance for doubtful accounts has been estimated either in relation to financial assets or in relation to the in compliance with IFRS 9 specifically, “Expected Credit sources of financing due to short-term period. Loss (ECL) calculation for financial instruments without a significant financial component - simplified approach”. Based on IFRS 9, the simplified approach that is required for certain trade receivables involves: - “aging” accounts receivable (including donors receivables) which means classifying open accounts receivable based on the length of time an invoice has been outstanding; - reviewing open donors receivables which have been past due for a long time and reasons for non-payment have been investigated; those that were not written-off 30 Notes to the Financial Statements ($000s) (6) Cash and cash equivalents Between Carrying Within 12 1 and 5 More than ($000s) amount months years 5 years At 31 At 31 December December As of December 31, 2022 2021 2022 Accounts Payables 15,663 15,663 Cash in banks* 14,379 12,107 Lease liabilities* 8,308 769 3,272 4,267 Imprest Funds - Regional Offices 273 314 Total 23,971 16,432 3,272 4,267 Petty cash and travel funds 16 10 14,668 12,431 As of December 31, * Includes investments denominated in US dollars for $6.5m which have 2021 expired in January 2022 and classified as cash equivalents in accordance Accounts Payables 15,707 15,707 with IAS 7.7 (“an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of Lease liabilities* 9,326 711 3,262 5,353 acquisition”). Total 25,033 16,418 3,262 5,353 * Such amount represents the total cash outflows, including the interests to Cash in banks are denominated in US dollars and Euro. be paid. Regional offices’ imprest funds are denominated in local currencies (Euro, Uganda shillings, Central African francs, (5) Critical accounting assumptions, Indian rupee, Ethiopian birr, and Costa Rica colon), as well estimates and judgements as in US dollars. The preparation of financial statements requires management The increase in Cash in banks is mainly due to the increase to make assumptions and to use judgements and estimates. in cash receipts from donors’ contributions. In certain cases, the application of accounting standards and methods depend on subjective measurements and estimates (7) Short term investments based on experience and assumptions made on a case-by- case basis which are considered reasonable and realistic ($000s) in specific circumstances. The use of such assumptions, At 31 At 31 estimates and judgement affects the amounts reported in the December December statement of financial position, the statement of activities and 2022 2021 other comprehensive income, the statement of changes in net assets, the statement of cash flows and the notes to the Investments with maturity of less financial statements. Actual results for such items may differ than 1 year 8,260 8,200 from the amounts reported in the financial statements due to the uncertainties that characterize the assumptions and As of 31 December 2022, an amount of $14.8m is placed in conditions on which such estimates were made. Subjective time deposits and money market funds denominated in US judgment on the part of management when making estimates, dollars (see table below). and for which a change in the conditions underlying the assumptions used could have a significant impact on the As described in Note 6, $2.5m placed in time deposits and financial information reported or could require a material $4.0m invested in money market funds denominated in US adjustment to the carrying amount of the asset or liability in dollars are classified and reported as cash equivalents. future periods. There is no change to the nature of investments. Bioversity invests cash in excess of its operating requirements in time deposits and money market funds. Short term investments as of 31 December 2022: 31 Notes to the Financial Statements Date of Date of Amount invested Institution** Type of investment investment maturity Rate * US$ Interest US$ Banca Popolare di Sondrio Time deposit 30-Aug-22 9-Jan-23 2.50% 1,500 14 BNP Paribas Time deposit 12-Oct-22 23-Jan-23 3.59% 2,024 21 BNP Paribas Time deposit 31-Oct-22 8-Feb-23 4.05% 1,712 19 BNP Paribas Time deposit 12-Dec-22 21-Mar-23 4.52% 3,024 38 Short term investments 8,260 92 Banca Popolare di Sondrio Time deposit 30-Nov-22 17-Jan-23 4.10% 2,500 14 Bank of America MMF 1-Dec-22 31-Dec-22 0.30% 4,053 12 Investments classified as cash equivalent 6,553 26 Total short-term investments 14,813 118 * average rate ** As of Dec 2022, based on Fitch Ratings – Short Term, Banca Popolare di Sondrio rated B, and BNP Paribas rated F1. (8) Accounts receivable – donors (9) Accounts receivable – employees ($000s) ($000s) At 31 At 31 At 31 At 31 December December December December 2022 2021 2022 2021 Unrestricted Bilateral 15 Loans 89 53 Restricted W3 1,857 755 Advances 58 49 Restricted Bilateral 2,723 2,578 147 102 W1&2 950 3,388 These amounts consist of salary advances to employees as 5,530 6,736 well as advances for duty travel. Restatement of donor receivables in foreign currency 22 Less allowance for doubtful accounts (264) (251) 5,288 6,485 Further detail is found in Exhibit 1. The decrease in 2022 is the result of the implementation of the CGIAR Initiatives for which Bioversity received $11.0m during the year. The increase of Restricted W3 receivables is due to the completion of some research activities for which the final reports were prepared and submitted in January 2023 and the cash inflows are expected to be received during 2023. 32 Notes to the Financial Statements (10) Accounts receivable – CGIAR Centres Other receivables mainly refer to advance payments to suppliers and advances related to VAT in France and ($000s) Uganda. At 31 At 31 December December (12) Prepaid expenses 2022 2021 ($000s) Africa Rice 6 At 31 At 31 CGIAR System Organization 1 20 December December CIAT 68 994 2022 2021 CIP 13 68 Advances to partners: ICARDA 68 32 CGIAR collaborators ICRISAT 6 22 CIAT 331 64 IITA 64 73 CIMMYT 44 150 ILRI 100 35 CIP 50 IRRI 9 IITA 128 IWMI 3 3 ICRAF 25 WORLDFISH 44 ILRI 180 382 1,247 IWMI 86 Subtotal advances to CGIAR These amounts consist mainly of funds held by other collaborators 589 469 CGIAR centers for the hosting of country and project offices’ activities of Bioversity in various locations. Non-CGIAR collaborators 2,086 2,707 It includes the amount owed by CIAT to Bioversity for Intra- Alliance charges recorded in December 2022, primarily Total advances to partners 2,675 3,176 related to the personnel costs of Alliance shared positions Advance payments to suppliers 119 151 hosted at Bioversity. 2,794 3,327 Intra-Alliance charges consist of expenditures incurred by one center on behalf of the other center. An Intra-Alliance account has been created where these transactions are Bioversity pays advances to its collaborators for research recorded. The reconciliation and settlement of this account work. These advances are then expensed once financial is performed on a quarterly basis. reports from collaborators are received. Bioversity conducted a follow up on the execution of the activities defined in the (11) Accounts receivable – others Letters of Agreement and no issues have been identified which could compromise the successful completion of the The amount includes: assignments according to the revised due dates. ($000s) (13) Inventories At 31 At 31 This consists of a laboratory under construction in Uganda, December December 2022 2021 funded by NARO as part of the project “Novel approaches to the improvement of banana production in Eastern Africa: Interest accrued 57 2 the application of biotechnological methodologies - Phase II” and which will be donated upon completion. During 2022, French value-added tax advanced 78 33 additional works needed to complete the laboratory were Ugandan value-added tax delayed due to variations in the contract with the construction advanced 3 11 company caused by price changes related to identified Other receivables 174 136 supplementary infrastructural works, including IT. 312 182 33 (14) Property, plant and equipment UNRESTRICTED (Center Assets) - ($000s) RESTRICTED (Project Assets) - ($000s) Physical Infrastructure Furnishing & Work in Physical Infrastructure Furnishing & Work in ($000s) facilities & leasehold equipment progress Total facilities & leasehold equipment progress Total Grand Total Year ended 31 December 2021 Cost At start of the year 1,557 4,046 102 5,705 221 221 5,926 Adjustment /Transfers 54 (54) 0 Additions 92 595 319 1,006 54 54 1,060 Disposals (456) (1,600) (2,056) (1) (1) (2,057) At end of year 1,193 3,095 367 4,655 274 274 4,929 Accumulated Depreciation At start of the year (1,057) (3,826) (4,883) (148) (148) (5,031) Charge for the year (28) (168) (196) (127) (127) (323) Disposals 454 1,600 2,055 1 1 2,056 At end of year (630) (2,394) (3,024) (274) (274) (3,298) Net book value at end of year 0 563 701 367 1,631 0 0 0 0 0 1,631 Year ended 31 December 2022 Cost At start of the year 1,193 3,095 367 4,655 274 274 4,929 Transfers to additions 173 38 (211) 0 Additions 202 72 140 414 66 167 233 647 Disposals (7) (305) (312) (37) (37) (349) At end of year 1,561 2,900 296 4,757 303 167 470 5,227 Accumulated Depreciation At start of the year (630) (2,394) (3,024) (274) (274) (3,298) Charge for the year (49) (104) (153) (66) (66) (219) Disposals 3 305 308 37 37 345 At end of year (676) (2,193) (2,869) (303) (303) (3,172) Net book value at end of year 0 885 707 296 1,888 0 0 0 167 167 2,055 The increases in Infrastructure and leasehold and furnishing and equipment are related to some Work in progress is related to the new office of Kampala that was officially inaugurated in March improvements made during the year in the Headquarters of the Alliance of Bioversity and CIAT 2023 and to the new laboratory for the Cocoa of Excellence programme that was completed in and in the renovation of the server room in Montpellier. March 2023. 35 Detailed Breakdown of Book Value of Property, Plant and Equipment UNRESTRICTED (Center Assets) - ($000s) RESTRICTED (Project Assets) - ($000s) Physical Infrastructure Furnishing & Work in Physical Infrastructure Furnishing & Work in ($000s) facilities & leasehold equipment progress Total facilities & leasehold equipment progress Total Grand Total Year ended 31 December 2021 Land * 133 133 133 Building * 300 300 300 Building improvements * 75 75 75 Leasehold improvements 55 329 384 384 Computers 2 2 2 Computers (Aventino Building) 55 55 55 Software - OCS 0 Office Furniture and Equipment 42 42 42 Office Furniture and Equipment (Aventino Building) 569 569 569 Motor Vehicles 33 38 71 71 Net book value at end of year 0 563 701 367 1,631 0 0 0 0 0 1,631 Year ended 31 December 2022 Land * 133 133 133 Building * 279 279 279 Building improvements * 66 14 80 80 Leasehold improvements 407 282 689 167 167 856 Computers 1 1 1 Computers (Aventino Building) 39 39 39 Software - OCS 0 Office Furniture and Equipment 46 46 46 Office Furniture and Equipment (Aventino Building) 567 567 567 Motor Vehicles 54 54 54 Net book value at end of year 0 885 707 296 1,888 0 0 0 167 167 2,055 * Located in Montpellier, France Notes to the Financial Statements (15) Right of use assets (18) Accounts payable – employees This mainly consists of the capitalization of the rent contract ($000s) for the headquarters premises of Bioversity located in Rome, Italy, as per IFRS 16 (see Notes 2.8 and 23). At 31 At 31 December December The term of the lease of the Headquarters is for twelve 2022 2021 years, starting from June 2021. The discount rate used is the incremental borrowing rate with one of Bioversity’s primary Unpaid leave* 1,423 841 banks - Banca Popolare di Sondrio lease rate (8.11%). Separation** 48 72 In 2022 a new lease agreement was signed related to the Travel 79 4 laboratory for the Cocoa of Excellence programme which Other 248 225 was completed in March 2023. The term of this new lease is 1,798 1,142 for 6 years, starting from September 2022. The discount rate used is the incremental borrowing rate with Banca Popolare * Regular staff members accumulate paid vacation leave. Upon separation, di Sondrio (7.70%) accumulated days as of 31 December plus any earned but unused days from the following 1 January to the date of termination will be paid in lump sum within a maximum of 30 days. ($000s) ** Accounts payable for separation are those amounts due for end of service Contract Net book benefits for staff who left Bioversity in 2022 and will be paid in 2023. value Depreciation value At start of the (19) Accounts payable − other CGIAR Centres year 6,846 (322) 6,524 ($000s) Additions - new right of use 165 (506) (341) At 31 At 31 December December Net book value 2022 2021 at end of year 7,011 (828) 6,183 Africa Rice 1 (16) Other non-current assets CGIAR System Organization 230 174 Other non-current assets include the guaranteed deposit CIAT 158 270 paid for the rent contract for its new Headquarters ($138 CIP 38 42 thousand, which correspond to two-month rent) and for the rent contract for the Laboratory for the Cocoa of Excellence CYMMIT 60 programme ($6 thousand). IFPRI 142 IITA 4 (17) Deferred income from donors ILRI 101 31 ($000s) 729 522 At 31 At 31 December December 2022 2021 Restricted W3 1,872 4,138 Restricted Bilateral 4,554 4,096 W1&2 1,157 7,583 8,234 Further detail is found in Exhibit 1. 36 Notes to the Financial Statements (20) Accruals (22) Hosted entities ($000s) This account consists of amounts received from other entities or amounts owed to Bioversity for hosting arrangements At 31 At 31 and accounted for as Funds-in-Trust (refer to the schedule December December reported below for detailed breakdown). 2022 2021 Bioversity provides hosting services for the operations of CGIAR Centers 894 597 other CGIAR centers or other entities who collaborate with Non-CGIAR Centers 2,565 3,171 the Organization on CGIAR Research Programs and/or Others 768 784 on its other research-for-development activities. The terms and conditions of the hosting arrangements are spelled out 4,227 4,552 either in a Memorandum of Understanding or in a hosting agreement or both. The amount is composed of accruals made for supplies and Funds received from hosted entities are disbursed pursuant services received and expenses incurred before year-end for to the hosted entities’ instructions. Bioversity does not have which invoices were not yet received or payment not made control over the use of the funds received from hosted entities. as of the balance sheet date. This includes regional office The Organization charges its indirect cost recovery rate and expenditures not yet paid out of the imprest accounts as of fees as agreed and defined in the hosting agreements. year-end. Funds received and disbursed by Bioversity on behalf of (21) Accounts payable – Others the hosted entities are reported in the statement of financial position. Fees earned from hosting other entities are reported ($000s) as other revenues and gains in the statement of activities. At 31 At 31 December December 2022 2021 Non-CGIAR partners 403 577 Suppliers 507 325 Others 416 355 1,326 1,257 37 Notes to the Financial Statements ($000s) Balance Balance 1 January 31 December 2022 Receipts Disbursements 2022 Beneficiary CGIAR’s Independent Advisory and Evaluation Service (IAES) Hosted at Bioversity International HQ, Italy 358 3,410 (4,948) (1,180) CGIAR Systems Management Office Hosted at Bioversity International HQ, Italy (9) 4,358 (4,005) 344 CIFOR, Center for International Forestry Research CIFOR hosted at Bioversity International HQ, Italy 74 240 (380) (66) EAT Foundation Fabrice DeClerck, 70% staff time hosted at Bioversity International (25) 30 (149) (144) ICRAF, World Agroforestry Centre Dietmar Stoian, hosted at Bioversity International (10) (10) IFPRI, International Food Policy Research Institute IFPRI hosted at Bioversity International HQ, Italy (32) 316 (256) 28 IITA, International Institute of Tropical Agriculture IITA personnel hosted by Bioversity International HQ, Italy (255) (18) (273) ILRI, International Livestock Research Institute ILRI hosted at Bioversity International, Uganda office (85) 887 (844) (42) IWMI, International Water Management Institute IWMI hosted at Bioversity International HQ, Italy (28) 89 (82) (21) Katholieke Universiteit Leuven (KUL) Sebastien Carpentier, 40% staff time hosted at Bioversity International (1) 23 (44) (22) IFPRI, International Food Policy Research Institute IFPRI hosted at Bioversity International, Belgium (8) 607 (586) 13 CIP, International Potato Center CIP hosted at Bioversity International, France (22) 21 1 4 PER 1000 Initiative 4 per 1000 Initiative: soil for food security and climate, hosted at Bioversity International, France 396 190 (321) 265 ILRI, International Livestock Research Institute ILRI hosted at Bioversity International, Belgium 28 167 (177) 18 ICARDA, International Center for Agricultural Research in the Dry Areas ICARDA hosted at Bioversity International HQ, Italy (24) (24) CGIAR Systems Management Office Hosted at Bioversity International HQ, Italy 1,163 (1,159) 4 CGIAR Systems Management Office CGIAR Initiatives Invoicing (3) (3) CGIAR Systems Management Office Alliance staff time dedicated to One CGIAR 261 (191) 70 ECPGR European Cooperative Programme for Plant Genetic Resources Phase X 1,077 605 (665) 1,017 ECPGR European Cooperative Programme for Plant Genetic Resources EC GenRes Bridge: Joining forces for genetic resources and biodiversity management (74) 66 (8) ECPGR European Cooperative Programme for Plant Genetic Resources EC Activated GEnebank NeTwork (AGENT) 60 27 (80) 7 ECPGR European Cooperative Programme for Plant Genetic Resources GERMANY - BMEL Extension of EURISCO for Crop Wild Relatives (CWR) 40 98 (147) (9) 38 Notes to the Financial Statements ($000s) Balance Balance 1 January 31 December 2022 Receipts Disbursements 2022 Beneficiary ECPGR European Cooperative Programme for Plant Genetic Resources GERMANY - BMEL Implementation of the ECPGR European Evaluation network (EVA) (6) 225 (177) 42 Agroecology Coalition SWITZERLAND FOAG Support for the Secretariat for the Agroecology Coalition 100 (10) 90 4 PER 1000 Initiative GERMANY-GIZ-Sector Programme Soil Protection, Combating Desertification, Sustainable Land Management (4PER1000) 11 (13) (2) Total Hosted entities 1,478 12,894 (14,278) 94 39 Notes to the Financial Statements (23) Lease liabilities (24) Non-current liabilities – employees The lease liabilities consist of the current and non-current This consists of the long-term portion of defined employee portions due for the rent contract for the Headquarters benefits (the separation allowance), and the liabilities building in Italy and for the new lease agreement related to towards the Internationally Recruited Staff (IRS) of Bioversity the laboratory for the Cocoa of Excellence programme (see International for the repatriation grant, which includes Note 15). The current portion is due within one year of the travel and shipping costs at end of service and calculated in balance sheet date. accordance with the personnel policies of Bioversity. ($000s) ($000s) At 31 At 31 At 31 At 31 December December December December 2022 2021 2022 2021 Lease liability current 340 305 Separation Allowance 4,448 5,084 Lease liability non-current 5,395 5,918 Repatriation Grant 927 907 5,735 6,223 5,375 5,991 The lease liability initially recognized corresponded to the The defined employee benefit consists of accruals for end- initial value of the right of use. Below are reported the main of-service benefits due to staff members, specifically for information related to the lease liability: separation allowances, calculated in accordance with the Headquarters building personnel policies of Bioversity. An actuarial calculation was carried out as required by IAS 19, Employee Benefits. Cash outflows of the year: $669 thousand ($000s) Interest paid: $382 thousand As of December 31, 2020 4,642 Principal: $283 thousand Service cost 732 Contractual cash outflows for the year 2023: $734* Interest expense on employee benefits 24 thousand. Foreign exchange (223) Cocoa Laboratory Utilizations and advances (443) Initial recognition: $172 thousand Actuarial (gain)/loss 352 Cash outflows of the year: $11 thousand As of December 31, 2021 5,084 Interest paid: $4 thousand Service cost 836 Interest expense on employee benefits 62 Principal: $6 thousand Foreign exchange (188) Contractual cash outflows for the year 2023: $33* Utilizations and advances (211) thousand. Actuarial (gain)/loss (1,134) The lease liabilities are denominated in Euro and the As of December 31, 2022 4,449 effects of foreign currency exchange differences have been recognized in the Statement of Activities as requested by the IAS 21. The impact on the year is a gain of $360 thousand. *corresponding to €688 thousand for the Headquarter building and €31 thousand for the Cocoa Laboratory, calculated with the foreign exchange rate of December 31, 2022. 40 Notes to the Financial Statements The following table sets forth principal assumptions (25) Net assets underlying the actuarial calculation of the provision for Separation allowances: ($000s) At 31 At 31 At 31 At 31 December December December December 2022 2021 2022 2021 Undesignated 10,806 9,491 Principal assumptions Principal assumptions Designated Inflation rate na 1.5% Property, Plant and Equipment 1,888 1,631 Discount rate LRS* 4.59% 2.03% Reserve for Replacement of Discount rate IRS 4.68% 2.00% Property, Plant and Equipment 1,290 1,497 Salary growth rate LRS 2% 2% Total Designated 3,178 3,128 Salary growth rate IRS 2% 2% Other Comprehensive Income Turnover rate IRS 5% 5% Actuarial gain/(loss) (307) (1,441) Turnover rate LRS 5% 5% Total Net Assets 13,677 11,178 * Average rate between Italy, Uganda and France. The overall change in net assets represents the total gains and losses generated by Bioversity’s activities during the The Bioversity Employee Benefits Programme (EBP) replaces year (see Note 2.12). the social security programmes of its various host countries. The EBP was established by CGIAR and adopted by all of its As per IAS 19 Defined benefit plans, the liability for institutions. It provides a comprehensive package of insurance separation allowance must be revalued on an annual basis and fund accumulations to meet staff members’ and their by an actuary. The actuarial gain/(loss) is then reflected in dependents’ needs during employment and for retirement. the statement of activities and other comprehensive income The EBP is fully funded by Bioversity. No deductions from and is reflected in the net assets under Other Comprehensive salary are required from staff members. Income – Actuarial gain/(loss). Bioversity makes contributions on behalf of staff members to (26) Other revenues and gains the pension plan managed by the Association of International Agricultural Research Centers (AIARC). These contributions ($000s) are charged against revenue in the year in which the benefit accrues. Therefore, Bioversity has no future obligations for 2022 2021 retirement benefits for its staff members. Income from hosting other entities* 2,385 1,793 The contribution to the AIARC administered pension plan Board members contributions 1 1 amounted to $2,182 thousand in 2022; $1,839 thousand in 2021. Adjustment for prior years' accruals** 57 24 Miscellaneous income*** 13 152 Total Other Revenues and gains (Unrestricted) 2,455 1,970 Total Other Revenues and gains (Restricted) 1 46 Total Other Revenues and gains 2,456 2,016 * This amount relates to hosting services rendered to CGIAR centers and other entities which Bioversity International is hosting during 2022 (see Note 21). Comparative figures have been adjusted as indicated in Note 31. ** This amount is mainly composed of the differences between accrual estimates from previous years and the actual amounts paid in 2022 for publications and other minor charges related to research projects. *** This amount includes the mileage recovery from the usage of institutional cars and minor adjustments made during the year to partners and employees’ liabilities. 41 Notes to the Financial Statements 42 (27) Operating Expenses The breakdown of total operating expenses by natural classification is as follows: Expenses by Natural Classification 2022 ($000s) 2021 ($000s) Unrestricted Restricted Total Unrestricted Restricted Total Expenses and Losses Personnel costs 5,379 6,344 11,723 3,892 7,746 11,638 CGIAR Collaborator Expenses 999 999 982 982 Non CGIAR Collaborator Expenses 7 4,336 4,343 8 3,386 3,394 Supplies and services 867 10,093 10,960 2,032 6,467 8,499 Travel 275 1,364 1,639 33 318 351 Depreciation/Amortization 657 67 724 524 127 651 Cost sharing percentage 53 212 265 60 215 275 Total direct costs 7,238 23,415 30,653 6,549 19,241 25,790 Indirect cost recovery (2,760) 2,760 (2,217) 2,217 Total-all costs 4,478 26,175 30,653 4,332 21,458 25,790 Comparative figures have been changed due to the reclassification of ECPGR from a bilateral restricted project to a hosted entity (see Note 31 (a)). Notes to the Financial Statements (28) Financial Income and Expenses different. The guidelines are intended only to guide harmonization of the methodology in the calculation of the ($000s) indirect cost rate of a CGIAR Center. The driving principle 2022 2021 behind these guidelines is to ensure that expenses that are directly attributable to project outcomes and outputs are Financial Income: classified as direct costs and any expenses associated with Interest income 235 17 the management of the Center and running of the business, are classified as Indirect Costs. Foreign exchange gain 344 679 579 696 The guidelines for Indirect Cost allocations aim to harmonize not only between Centers but also with the Financial expenses: multiple Funders of the CGIAR System. The guidelines provide a framework to harmonize policies and definitions Interest expense from actuary 62 24 on indirect cost allocation. There is no universal rule for Interest expense from lease classifying certain costs as either direct or indirect under liability (IFRS 16) 375 229 every accounting system. A cost may be direct with respect 437 253 to some specific service or function, but indirect with respect to the donor award or another final cost objective. Therefore, The variation in financial income and expenditures is mainly it is essential that each item of the cost incurred for the same due to foreign exchange gains generated by the exchange purpose be treated consistently in similar manner either as a rate fluctuations between the USD and Euro and the interest direct or an indirect cost to avoid possible double charging expenses incurred related to the lease liability. of donor awards. One of the objectives of the guidelines is to determine direct and indirect costs for the purpose (29) Other Non-Operating Income of achieving full cost accounting. However, cost recovery is determined by provisions set out in donor awards (for Other non-operating income arises from sources that are not example: award value, cost restrictions). Any difference related to Bioversity’s regular operations. between full cost accounting and cost recovery will result in This amount consists primarily of the differences between a projected surplus or deficit. the service costs related to staff separation allowances for The method of calculating the indirect cost rate is designed the year 2022 as calculated following Bioversity’s Personnel to be an equitable, logical and consistent method for the Policies and Procedures and as calculated by the independent allocation of costs in an economically feasible manner that actuary following statistical assumptions required by cannot be directly allocated to a specific project or research IAS 19 revised (see Notes 2.11.2, 24). The harmonization award. The extent to which indirect costs are recoverable is of job classification and compensation framework in the dictated by donor agreements. Alliance has been implemented with an effective date of 1 September 2020. The new Alliance framework involved The CGIAR Cost Principles and Indirect Cost Guidelines a new compensation system which is applicable to all replaced the previous CGIAR Financial Guideline number Internationally Recruited Staff (IRS) employees. The new 5. The principles and guidance contained in these guidelines compensation framework applied to all IRS regardless are not intended to conflict with the requirements of of their employing entity within the Alliance, resulted International Financial Reporting Standards (IFRS). Detailed in a difference between the calculation of the separation guidance on IFRS for CGIAR Centers can be found in the allowance service cost performed by Bioversity and by the IFRS Compliant CGIAR Financial Reporting Guidelines. actuary; the amount is $550k. The institutional indirect cost rate for 2022 increased to 28.40% from 25.23% for 2021. (30) Indirect cost ratio As prescribed by the Alliance Partnership Agreement The calculation of the indirect cost ratio is in line with between Bioversity International and the International the CGIAR Cost Principles and Indirect Cost Guidelines Center for Tropical Agriculture (CIAT), effective 1 January approved by the System Management Board with effect 2020, all costs related to establishing and running the from 3 April 2019. These Guidelines and Cost Principles Alliance will be shared between the two centers as per the are intended to guide the CGIAR Centers in calculating proportion defined in the Agreement. Starting 1 January their indirect cost allocation and applying these costs 2020, Bioversity has applied the cost-sharing mechanism appropriately. There is no prescribed or one single rate for the personnel costs of Alliance shared global positions possible as costs and structures of all organizations are hosted at Bioversity’s headquarters in Italy. 43 Notes to the Financial Statements (31) Prior year comparatives Expenses by natural classification Prior year amounts can be reclassified/regrouped wherever ($000s) necessary, to conform to current year’s classifications. In 2022 Bioversity changed the presentation of direct charges 2021 to hosted entities following one of the objectives included in the roadmap to harmonize the accounting policies in the Personnel Alliance and they are now presented as other revenues. The impacts on the 2021 comparative figures on the Statement of Collaborator Costs - Partners the Activities and related notes are shown in the table below. Supplies and Services 1,066 In previous years, direct recoveries from hosting operations Operational Travel were recorded against Supplies and Services line item of Indirect Costs expenditure (decreasing the total expenses). Total - Expenditure 1,066 With the new presentation, in the Statement of Activities, total General and Administration expenses increased by (32) Subsequent events $1,066k as well as Other Revenues for the same amount; in the Schedule of Expenses by Natural Classification (refer to 32.1 Operational Alignment in the Alliance of Note 27), the increase of $1,066k is shown on the Supplies Bioversity International and CIAT and Services line item of expenditure. The implementation of an annual roadmap to operationalize Statement of Activities the Alliance of Bioversity and CIAT started in January 2020. One of the primary components of the annual roadmap is ($000s) the continuous process of alignment and harmonization of 2021 operations and procedures aimed to reduce transactions Exhibits and provide efficient support to the Alliance’s research strategy and results framework for increased effectiveness Unrestricted Restricted TOTAL and impact. The ongoing operational alignment workstream within the Alliance has already produced some changes in Revenues from the accounting policies and financial reporting practices bilateral agreements for both Bioversity and CIAT. Adequate disclosure of these Other revenues 1,066 1,066 changes started in 2021; others have been reflected in the Impact on revenues 1,066 1,066 2022 financial statements. In compliance with IAS 8, any change in accounting policy will be reported in the financial Research expenses statements. Such changes, as the result of the Alliance Collaborations non-CG harmonization process, were/will be reported mainly General and as reclassifications and not restatements of comparative Administrative figures in the Organization’s financial statements. expenses 1,066 1,066 Impact on expenses 1,066 1,066 Net impact 0 0 0 44 Exhibits Exhibits SCHEDULE OF EXHIBIT 1 GRANT REVENUE For the years ended 31 December, 2022 and 2021 (US dollar 000s) Funds Receivables Deferred Grants revenue Donors available from donors revenue 2022 2021 A. Unrestricted Bilateral - Unrestricted Italy 190 2,631 2,913 Philippines 15 15 Subtotal Bilateral - Unrestricted 190 2,646 2,928 Total - Unrestricted 190 2,646 2,928 46 SCHEDULE OF EXHIBIT 1 GRANT REVENUE For the years ended 31 December, 2022 and 2021 (US dollar 000s) Funds Receivables Deferred Grants revenue Donors available from donors revenue 2022 2021 B. Restricted Windows 1 & 2 CGIAR Fund 11,095 950 (1,157) 10,888 9,376 Subtotal - Windows 1 & 2 11,095 950 (1,157) 10,888 9,376 Window 3 Belgium - DGDC, Directorate General for Development Cooperation 1,011 (120) 891 646 BMGF, Bill and Melinda Gates Foundation 2,527 (1,200) 1,327 57 CIAT, International Center for Tropical Agriculture 140 140 China - CAAS, Chinese Academy of Agricultural Sciences 80 80 140 IFAD, International Fund for Agricultural Development 259 1,857 (34) 2,082 1,322 IITA, International Institute of Tropical Agriculture 211 (12) 199 51 India - ICAR, Indian Council of Agricultural Research 427 427 478 Japan - MOFA, Ministry of Foreign Affairs 93 (49) 44 7 South Africa - DALRRD-Department of Agriculture, Land Reform and Rural 60 60 47 Development USA - USAID, United States Agency for International Development 666 (457) 209 117 Subtotal-Window 3 5,474 1,857 (1,872) 5,459 2,865 Bilateral Anonymous Donor 620 (353) 267 30 BAYER 24 (11) 13 29 BIOVISION, Foundation for Ecological Development 229 6 (35) 200 161 Blommer Chocolate Company 462 (209) 253 189 Burundi-PRRPB-Projet de Restauration et de Resilience du Paysage du Burundi 65 101 166 139 CFHI - Child Family Health International 6 6 1 CGIAR Fund 192 Christensen Fund 37 37 141 CIAT, International Center for Tropical Agriculture 622 2 (83) 541 256 CIFOR, Center for International Forestry Research 269 (112) 157 CISP, Comitato Internazionale per lo Sviluppo dei Popoli 40 (25) 15 Crop Trust 149 49 198 716 CTA, Technical Centre for Agricultural and Rural Cooperation EAT Foundation 11 11 - EC, European Commission 895 31 (529) 397 142 ECA, European Cocoa Association 47 SCHEDULE OF EXHIBIT 1 GRANT REVENUE As of 31 December, 2022 and 2021 (US dollar 000s) Funds Receivables Deferred Grants revenue Donors available from donors revenue 2022 2021 B. Restricted Bilateral FAO, Food and Agriculture Organization 821 193 (96) 918 270 FAO-GEF, Food and Agriculture Organization/ Global Environment Facility 143 34 177 56 FiBL 125 (72) 53 Fondation Prince Albert II de Monaco 7 (7) Fondo Binacional para la Paz y el Desarrollo Perú–Ecuador 86 (67) 19 18 France - CIRAD, Centre de Cooperation Internationale en Recherche Agronomique Pour 7 3 10 17 le Developpement The Fridtjof Nansen Institute 7 (7) 8 Germany - GIZ, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH 276 700 976 1,012 Google AL 18 (3) 15 1 Harvest Plus 5 5 28 HealthPartners, Uganda IAEA, International Atomic Energy Agency 17 (12) 5 ICCO, International Cocoa Organization 90 ICRAF, World Agroforestry Centre IDB – Inter-American Development Bank 184 184 52 IFAD, International Fund for Agricultural Development 17 17 98 IFPRI, International Food Policy Research Institute International Union for Conservation of Nature (IUCN) 399 (244) 155 50 IITA, International Institute of Tropical Agriculture (96) 281 (16) 169 290 ILRI, International Livestock Research Institute 123 96 219 51 Italy 1,936 24 (1,571) 389 618 Japan - MAFF, Ministry of Agriculture, Forestry and Fisheries 254 254 204 KIT, Royal Tropical Institute 64 KUL, Katholieke Universiteit Leuven LWR, Lutheran World Relief 189 53 242 338 MEDA - Mennonite Economic Development Associates (8) 8 MERID, Meridian Institute 10 Multi-donors to Honorariums 14 (14) Multi-donors for small grants - regional initiatives 154 10 (28) 136 146 Netherlands - MoA, Ministry of Agriculture Nature and Food Quality 169 (13) 156 61 Netherlands - NWO, Netherlands Organisation for Scientific Research 41 41 399 New Venture Fund 48 SCHEDULE OF EXHIBIT 1 GRANT REVENUE As of 31 December, 2022 and 2021 (US dollar 000s) Funds Receivables Deferred Grants revenue Donors available from donors revenue 2022 2021 B. Restricted Bilateral Norway - NIBIO, Norwegian Institute of Bioeconomy Norwegian University of Life Sciences, NMBU 17 (8) 9 Nutricia Research Foundation 25 (12) 13 OroVerde — Tropical Forest Foundatio 5 5 PACKARD, The David and Lucile Packard Foundation 114 Peru - STC, Secretaria Tecnica del CGIAR 111 72 (1) 182 84 PROFONANPE- Fondo de Promoción de las Áreas Naturales Protegidas del Perú (36) 76 40 186 Royal Botanic Gardens, Kew 26 (20) 6 Switzerland - SDC, Swiss Agency for Development Cooperation 334 (44) 290 287 SYNGENTA, Company for Sustainable Agriculture 96 (21) 75 The Rockefeller Foundation 140 (128) 12 The University of Queensland 74 3 77 62 TISERIN Capital Management Limited 61 (61) UGANDA - NARO, The National Agricultural Research Organisation 804 414 (311) 907 353 United Kingdom - DI, Darwin Initiative 334 (92) 242 250 UN Sustainable Development Solutions Network (SDSN) 56 14 70 71 UNEP, United Nations Environment Programme 48 48 UNEP-GEF, United Nations Environment Programme/Global Environment Facility 796 296 (265) 827 1,211 University of Bern 36 (32) 4 University of Oxford 17 VITO, Vlaamse Instelling voor Technologisch Onderzoek 26 WB, World Bank 150 (48) 102 153 WCDI-Wageningen Centre for Development Innovation 27 21 48 87 WORLD VISION NEW ZEALAND 134 161 295 192 WorldFish 3 3 6 WUR, Wageningen University 164 8 (4) 168 184 YARA International ASA 17 Subtotal-Bilateral 11,658 2,723 (4,554) 9,827 9,171 Total - Restricted 28,227 5,530 (7,583) 26,174 21,412 Grand Total 28,417 5,530 (7,583) 28,820 24,340 49 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Windows 1 & 2 CGIAR Fund CGIAR Fund INIT - 11 - Excellence in Agronomy for Sustainable A1581 1-Jan-22 31-Dec-24 466 301 301 Intensification and Climate Change Adaptation (Excellence in Agronomy) CGIAR Fund INIT- 04 - Breeding Resources A1552 1-Jan-22 31-Dec-22 283 267 267 CGIAR Fund INIT- 06 - Seed Equal A1576 1-Jan-22 31-Dec-24 118 98 98 CGIAR Fund INIT- 12 - Nature-Positive Solutions for Shifting A1554 1-Jan-22 31-Mar-25 1,851 1,723 1,723 Agrifood Systems to More Resilient and Sustainable Pathways (Nature-Positive Solutions) CGIAR Fund INIT- 13 - Plant Health and Rapid Response to A1555 1-Jan-22 31-Dec-24 675 653 653 Protect Food Security and Livelihoods CGIAR Fund INIT- 14 - AgriLAC Resiliente: Resilient Agrifood A1578 1-Jan-22 31-Mar-25 31 18 18 Innovation Systems in Latin America and the Caribbean (AgriLAC Resiliente) CGIAR Fund INIT- 18 - Securing the Food Systems of Asian A1559 1-Jan-22 31-Mar-25 106 106 106 Mega-Deltas for Climate and Livelihood Resilience (Asian Mega- Deltas) CGIAR Fund INIT- 19 - Sustainable Intensification of Mixed A1563 1-Jan-22 31-Mar-25 710 493 493 Farming Systems (Mixed Farming Systems) CGIAR Fund INIT- 20 - Transforming Agrifood Systems in South A1556 1-Jan-22 31-Dec-24 7 7 7 Asia CGIAR Fund INIT- 22 - Transforming Agrifood Systems in West A1557 1-Jan-22 31-Mar-25 188 188 188 and Central Africa (West and Central African Food Systems Transformation) CGIAR Fund INIT- 23 - ClimBeR: Building Systemic Resilience A1566 1-Jan-22 31-Dec-24 505 491 491 Against Climate Variability and Extremes (Climate Resilience) CGIAR Fund INIT- 24 - Foresight and Metrics to Accelerate Food, A1560 1-Jan-22 31-Mar-25 1,599 626 626 Land, and Water Systems Transformation (Foresight) CGIAR Fund INIT- 25 - Digital Innovation and Transformation A1577 1-Jan-22 31-Mar-25 531 481 481 (Digital Innovation) CGIAR Fund INIT- 26 - Harnessing Gender and Social Equality for A1561 1-Jan-22 31-Mar-25 459 434 434 Resilience in Agrifood Systems ( Gender Equality) CGIAR Fund INIT- 27- National Policies and Strategies for Food, A1572 1-Jan-22 31-Dec-22 30 13 13 Land and Water Systems Transformation (National Policies and Strategies) SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Windows 1 & 2 CGIAR Fund CGIAR Fund INIT- 28 - NEXUS Gains: Realizing Multiple Benefits A1558 1-Jan-22 31-Dec-24 530 425 425 Across Water, Energy, Food and Ecosystem (Forest, Biodiversity) ( NEXUS Gains) CGIAR Fund INIT- 30 - Sustainable Healthy Diets through Food A1568 1-Jan-22 31-Dec-24 409 268 268 Systems Transformation (Sustainable Healthy Diets) CGIAR Fund INIT- 31 - Transformational Agroecology across A1562 1-Jan-22 31-Dec-24 365 354 354 Food, Land, and Water systems (Agroecology) CGIAR Fund INIT- 32 - Mitigate+: Research for Low-Emission A1569 1-Jan-22 31-Dec-24 79 79 79 Food Systems ( Low-Emission Food Systems) CGIAR Fund INIT- 33 - Fruit and Vegetables for Sustainable A1565 1-Jan-22 31-Mar-25 437 358 358 Healthy Diets (Fruits and Vegetables) CGIAR Fund INIT- 34 - Livestock, Climate and System Resilience A1564 1-Jan-22 31-Dec-24 288 250 250 (Livestock and Climate) CGIAR Fund INIT-03- Genebanks A1553 1-Jan-22 31-Dec-24 3,075 2,964 2,964 CGIAR Fund PLAT-01 Gender equity, youth and social inclusion A1522 NONCRP 1-Jan-22 31-Dec-24 289 215 215 Partnership Agreement - OneCGIAR 2022 Budget Task Team A1602 1-Jul-21 31-Dec-23 160 32 76 108 Sub-total CGIAR Fund 13,191 32 10,888 10,920 0 Sub-total Window 1/Window 2 - Restricted 13,191 32 10,888 10,920 0 51 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Windows 3 Belgium - DGDC, Directorate General for Development Coop- eration BELGIUM - DGDC Safeguarding crop diversity (Cryovault) A1300 NONCRP 1-Sep-17 30-Jun-22 582 507 75 582 BELGIUM - DGDC More Fruit for food security (ITC) A1299 CRP 1-Sep-17 30-Jun-22 4,075 3,459 616 4,075 BELGIUM-DGDC-More fruit diversity for food security: A1593 1-Jan-22 31-Dec-24 963 200 200 conservation of local agricultural diversity and increasing the adaption of newly introduced climate smart bananas for different agro-ecozones in the African Great Lakes Region Sub-total Belgium - DGDC, Directorate General for 5,620 3,966 891 4,857 0 Development Cooperation BMGF, Bill and Melinda Gates Foundation Bill & Melinda Gates Foundation(BMGF)-1000 Farms Research A1540 CRP 10-Nov-21 31-Dec-25 6,798 57 1,327 1,384 Platform Sub-total BMGF, Bill and Melinda Gates Foundation 6,798 57 1,327 1,384 0 China - CAAS, Chinese Academy of Agricultural Sciences CHINA - CAAS 2022 Collaborative Program on agrobiodiversity A1567 NONCRP 1-Jan-22 31-Dec-22 140 140 140 research in China Sub-total China - CAAS, Chinese Academy of Agricultural 140 0 140 140 0 Sciences CIAT, International Center for Tropical Agriculture CIAT (France) - Transformative Partnership Platform (TPP): A1597 1-Jan-22 31-Dec-22 80 80 80 Agroecological approaches to building resilience of livelihoods and landscapes - Mirror S228 Sub-total CIAT, International Center for Tropical 80 0 80 80 0 Agriculture SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Windows 3 IFAD, International Fund for Agricultural Development IFAD (EC) Agroecological transitions for building resilient and A1585 NONCRP 1-Jan-22 31-Jan-27 2,417 129 129 inclusive agricultural and food systems (TRANSITIONS) IFAD Linking Research to Impact: increasing the effectiveness of A1296 CRP 31-Jul-17 31-Jul-22 2,520 1,483 1,037 2,520 agriculture and food systems in improving nutrition projects IFAD Use of Genetic Diversity and Evolutionary Plant Breeding A1341 CRP 18-May-18 30-Apr-23 3,500 2,345 916 3,261 for Enhanced Farmer Resilience to Climate Change, Sustainable Crop Productivity and Nutrition under Rainfed Conditions Sub-total IFAD, International Fund for Agricultural 8,437 3,828 2,082 5,910 0 Development IITA, International Institute of Tropical Agriculture IITA (BELGIUM - DGDC) CIALCA 2017-2021 Catalyzing A1311 CRP 5-Sep-17 30-Jun-22 1,138 900 199 1,099 partnerships, capacity building and research towards entrepreneurial farming in Central Africa Sub-total IITA, International Institute of Tropical 1,138 900 199 1,099 0 Agriculture India - ICAR, Indian Council of Agricultural Research INDIA - ICAR Use and conservation of agrobiodiversity for A1344 CRP 1-Jan-18 31-Dec-22 2,256 1,829 427 2,256 increased agricultural sustainability, smallholder wellbeing and resilience to climate change in India - Phase II (IA Lead of O137) Sub-total India - ICAR, Indian Council of Agricultural 2,256 1,829 427 2,256 0 Research Japan - MOFA, Ministry of Foreign Affairs JAPAN MOFA 2021 Community plant genetic resources use and A1517 NONCRP 1-Apr-21 30-Jun-22 50 7 43 50 conservation in East Africa &Promoting use of underutilized crop species for endogenous community development JAPAN MOFA 2022-2023 Community plant genetic resources use A1615 1-Jul-22 31-Mar-23 50 1 1 and conservation in East Africa &Promoting use of underutilized crop species for endogenous community development Sub-total Japan - MOFA, Ministry of Foreign Affairs 100 7 44 51 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Windows 3 South Africa - DALRRD-Department of Agriculture, Land Reform and Rural Development SOUTH AFRICA - DAFF Farmers' seed systems and community A1343 CRP 1-Jul-18 31-Dec-22 240 180 60 240 seed banks in South Africa: a baseline study of selected sites - Phase II Sub-total South Africa - DALRRD-Department of 240 180 60 240 0 Agriculture, Land Reform and Rural Development USA - USAID, United States Agency for International Devel- opment USAID - Cadmium Absorption in Cacao A1452 CRP 1-Jan-21 31-Dec-23 800 133 209 342 Sub-total USA - USAID, United States Agency for 800 133 209 342 0 International Development Sub-total Window 3 - Restricted 25,609 10,900 5,459 16,359 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral Anonymous Donor ANONYMOUS DONOR Fruitful Lands India: Harnessing Fruit A1532 NONCRP 23-Aug-21 30-Jun-23 650 30 267 297 Tree Biodiversity as a Nature-Based Solution for Food Security, Nutrition, Human and Planetary Health Sub-total Anonymous Donor 650 30 267 297 0 BAYER BAYER Elucidation of Routine and Serenade for induced banana A1512 CRP 1-Apr-21 31-Dec-23 64 29 13 42 defense to suppress TR4 infection under greenhouse condition Sub-total BAYER 64 29 13 42 0 BIOVISION, Foundation for Ecological Development BIOVISION Diverse seeds and planting materials supporting farm A1461 CRP 1-Jan-21 31-Dec-23 541 161 154 315 resilience, inclusive value chains and healthy diets in a sustainable Vihiga County food system BIOVISION-Diversity for Resilient Agroforestry Banana Plantations A1596 1-Jun-22 30-Apr-23 56 40 40 in East Africa (D4RABs) BIOVISION-Project Nature + Activities for Lower Nyando and A1624 1-Dec-22 30-Apr-23 50 6 6 Vihiga – Kenya Sub-total BIOVISION, Foundation for Ecological 647 161 200 361 0 Development Blommer Chocolate Company BLOMMER (MARS) Natural capital development in cocoa A1417 CRP 20-Oct-19 31-Dec-22 905 442 253 695 growing communities supplying Blommer in Lakota and Vavoua departments, Côte d’Ivoire Sub-total Blommer Chocolate Company 905 442 253 695 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral Burundi-PRRPB-Projet de Restauration et de Resilience du Paysage du Burundi PRRPB (World Bank) Services de Consultants pour une A1453 CRP 27-Oct-20 26-Dec-22 518 183 166 349 Assistance Technique dans l’acquisition des semences améliorées et la formation en développement des pépinières communautaires Sub-total Burundi-PRRPB-Projet de Restauration et de 518 183 166 349 0 Resilience du Paysage du Burundi CFHI - Child Family Health International CFHI, Support for TIP Indigenous Youth Fellowship Program A1440 NONCRP 1-May-20 30-Jun-22 7 1 6 7 and affiliated programming of The Indigenous Partnership for Agrobiodiversity and Food Sovereignty Sub-total CFHI - Child Family Health International 7 1 6 7 0 Christensen Fund CHRISTENSEN FUND General Operating Support for the TIP A1515 NONCRP 1-Jun-21 31-Dec-22 120 83 37 120 Indigenous Fellowship Program Sub-total Christensen Fund 120 83 37 120 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral CIAT, International Center for Tropical Agriculture CIAT – Cacao D’Excellence (IA Mirror of S209) A1537 CRP 1-Jul-21 30-Jun-26 1,217 128 128 CIAT (AHA) - Periodic Table of Food Initiative “PTFI” II (IA Mirror A1547 NONCRP 1-Oct-21 30-Jun-23 91 28 28 of O142) CIAT (EC) Fostering low cadmium and climate-relevant A1438 CRP 1-Jan-20 26-Dec-24 1,004 184 136 320 innovations to enhance the resilience and inclusiveness of the growing cocoa sectors in Colombia, Ecuador and Peru (Clima LoCa) CIAT (Germany-GIZ) Green Innovation Centers in the agriculture A1598 6-Jan-22 31-May-24 653 13 13 and food sector - ALER4TA - Mirror O143 CIAT (IDB) - Desarrollo de Protocolos Regionales para el Control A1589 NONCRP 10-Dec-21 5-Dec-23 303 9 9 y Prevención de la Propagación del Fusarium R4T en Plantas de Musáceas (Banano y Plátano) en los Países de CAN - (IA Mirror of O140) CIAT (MADAGASCAR-MOA)- Inventory and analysis of climate A1573 NONCRP 18-Feb-22 2-Sep-22 29 29 29 smart agriculture technologies and proposal of transfer mechanisms.(IA Mirror of D427) CIAT (NETHERLANDS - NWO) Integrated vegetable seed systems A1387 CRP 1-Apr-19 31-Aug-22 248 185 63 248 development in ethnic minority communities in Northern Vietnam for enhanced nutrition and income security CIAT (Peru - USAID) SUB-CONTRACT “FIXED PRICE” SERVICES A1580 1-Feb-22 3-Jan-23 53 40 40 (IA Mirror of S222) CIAT WCS-EUC-Five Great Forests of Mesoamerica: A regional A1590 1-Apr-22 30-Apr-23 58 8 8 initiative for climate, biodiversity, and people - (IA Mirror of S225) CIAT-CIMMYT (BMGF) Accelerated Varietal Improvement and A1543 NONCRP 11-Aug-21 31-Dec-22 300 16 87 103 Seed Delivery of Legumes and Cereals in Africa (AVISA) (IA Mirror of A465) Sub-total CIAT, International Center for Tropical 3,956 385 541 926 0 Agriculture 57 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral CIFOR, Center for International Forestry Research CIFOR (IFAD) Global Initiative to secure women's land rights A1551 NONCRP 1-Feb-21 31-Dec-23 571 157 157 through gender transformative approaches. Sub-total CIFOR, Center for International Forestry 571 0 157 157 0 Research CISP, Comitato Internazionale per lo Sviluppo dei Popoli CISP-Miglioramento della resilienza e adattamento ai A1595 1-Feb-22 30-Oct-24 116 15 15 cambiamenti climatici nell’oriente di Cuba Sub-total CISP, Comitato Internazionale per lo Sviluppo 116 0 15 15 0 dei Popoli CROP TRUST CROP TRUST Providing for the long-term funding of ex situ A1080 CRP 1-Jan-12 31-Dec-23 4,540 4,140 198 4,338 collections of germplasm held by Bioversity Sub-total CROP TRUST 4,540 4,140 198 4,338 0 EAT Foundation EAT (FSEC) Agroecology: agriculture working with nature A1603 1-Jun-22 31-Dec-22 11 11 11 Sub-total EAT Foundation 11 0 11 11 0 EC, European Commission EC Improving nutrition in Africa by strengthening the diversity, A1442 CRP 1-Jun-20 30-Nov-24 606 86 108 194 sustainability, resilience and connectivity of food systems (Healthy Food Africa) EC SUSTaining and improving local crop patrimony in Burkina A1535 NONCRP 13-Oct-21 31-Jul-25 1,552 25 289 314 Faso and Niger for better LIVes and EcoSystems (SUSTLIVES) Sub-total EC, European Commission 2,158 111 397 508 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral FAO, Food and Agriculture Organization FAO - Market Intelligence for Increasing Cocoa Quality A1527 CRP 24-Aug-21 30-Apr-23 600 50 422 472 FAO (AICS) - Technical support for sustainable management of A1549 NONCRP 12-Jan-22 15-Oct-22 100 78 78 natural resources, especially promoting conservation of local biodiversity and the use of indigenous varieties of wheat in Oromia- Phase II FAO (EC) Global Manifesto, Global Plan of Action on Forgotten A1484 CRP 5-May-21 31-Jan-22 35 20 15 35 Foods and Community of Practice as part of GFAR Collective Action on Forgotten Foods FAO A guideline of Community Based Seed Production (CBSP) A1605 1-Aug-22 31-Mar-23 20 5 5 system to promote the use of quality seeds for sustainable crop production in Sri Lanka FAO Assistance in formulation of GEF Project Document A1462 NONCRP 9-Dec-20 1-Mar-22 130 120 10 130 FAO- Capacity building and technical support on safeguarding A1530 CRP 21-Oct-21 30-Jun-23 135 18 103 121 and sustainable use of Forest Genetic Resources (FGR) and Assisted Natural Regeneration (ANR) for resilient Forest and Landscape Restoration (FLR) FAO Development of South Asia Sub-regional Prototype on One A1542 NONCRP 1-Dec-21 31-Dec-22 120 7 113 120 Country One Priority Product and Pilot Project Implementation in Bhutan and Sri Lanka FAO-A review of in situ conservation of forest genetic resources A1521 CRP 7-Jul-21 30-Jun-22 74 25 49 74 and other inputs for the preparation of The Second Report on the State of the World’s Forest Genetic Resources FAO-Contribution to The Third Report on the State of the World’s A1546 NONCRP 23-Dec-21 31-Oct-22 89 89 89 Plant Genetic Resources for Food and Agriculture FAO-Foundations for rebuilding seed systems post Cyclone Idai: A1548 NONCRP 15-Dec-21 31-Dec-22 34 34 34 Zimbabwe, Mozambique and Malawi OSRO/GLO/908/GER. Sub-total FAO, Food and Agriculture Organization 1,337 240 918 1,158 0 59 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral FAO-GEF, Food and Agriculture Organization/Global Environment Facility FAO (GEF) -Assess agrobiodiversity and develop action plans A1533 CRP 13-Sep-21 13-Dec-22 198 16 177 193 in the project sites selected in the Districts of Abim, Amolatar, Amudat, Amuria, Buyende, Kaberamaido, Kamuli, Katakwi, Kayunga, Luwero, Nakasongola, Nakaseke and Napak Sub-total FAO-GEF, Food and Agriculture Organization/ 198 16 177 193 0 Global Environment Facility FiBL FiBL (SDC-LED) Consumption of Resilient Orphan Products for A1582 NONCRP 1-Jan-22 30-Jun-25 400 53 53 Healthier Diets Sub-total FiBL 400 0 53 53 0 Fondo Binacional para la Paz y el Desarrollo Perú–Ecuador FONDO BINACIONAL-Plan de Acción de Mitigación frente a los A1466 CRP 1-Mar-21 31-Aug-23 114 18 19 37 resultados del estudio de la presencia de cadmio en suelos y granos de cacao en la provincia de Condorcanqui y en el distrito de Imaza Sub-total Fondo Binacional para la Paz y el Desarrollo 114 18 19 37 0 Perú–Ecuador France - CIRAD, Centre de Cooperation Internationale en Recherche Agronomique Pour le Developpement FRANCE - CIRAD (BMGF) Breeding RTB products for end user A1335 CRP 10-Nov-17 31-Dec-22 146 136 10 146 preferences Sub-total France - CIRAD, Centre de Cooperation 146 136 10 146 0 Internationale en Recherche Agronomique Pour le Developpement SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral Fridtjof Nansen Institute (Research Council of Norway) Fridtjof Nansen Institute (Research Council of Norway) Pathways A1431 CRP 1-Jan-20 31-Dec-23 20 10 10 to food security, poverty alleviation and livelihoods through the implementation of farmers' rights to crop genetic diversity (DIVERSIFARM) Sub-total Fridtjof Nansen Institute (Research Council of 20 10 0 10 0 Norway) Germany - GIZ, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GERMANY - GIZ Diversifying native fine or flavor cocoa A1330 CRP 1-Apr-18 30-Nov-22 1,379 1,203 176 1,379 production systems in Peru for enhanced productivity and income GERMANY - GIZ Green Innovation Centres for the Agriculture and A1421 CRP 15-Nov-19 31-Mar-22 543 505 38 543 Food Sector (GIC) GERMANY - GIZ Improving Dietary Quality and Livelihoods using A1399 CRP 1-Jul-19 30-Jun-23 1,593 638 397 1,035 farm and wild biodiversity through an integrated community- based approach in Ethiopia and Kenya GERMANY - GIZ Upscaling Access to Crowdsourced “Winner” A1424 CRP 1-Jan-20 31-Dec-23 1,250 505 364 869 Seed Varieties and Embedding Crowdsourcing in Ethiopian System as Delivery Mechanism for more Dynamic, Diverse and Market-Responsive Seed Portfolios Sub-total Germany - GIZ, Deutsche Gesellschaft für 4,765 2,851 976 3,826 0 Internationale Zusammenarbeit GmbH GOOGLE AL GOOGLE Exploring and Managing human-bee conflict in Asian A1520 CRP 1-Jul-21 31-Jan-23 20 1 15 16 cities using AI Sub-total GOOGLE AL 20 1 15 16 0 Harvest Plus HARVEST PLUS Addressing micronutrient deficiencies in Sub- A1446 CRP 30-Jun-20 31-Mar-22 41 36 5 41 Saharan Africa through Musa-based foods Sub-total Harvest Plus 41 36 5 41 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral IAEA, International Atomic Energy Agency IAEA Optimizing nuclear techniques to assess vitamin A status in A1545 NONCRP 16-Dec-21 31-Dec-26 56 5 5 population surveys – from deficiency to excess (Phase II) Sub-total IAEA, International Atomic Energy Agency 56 0 5 5 0 IDB – Inter-American Development Bank IDB - Consultoría para la Digitalización de Planes de Finca y A1570 8-Feb-22 30-Nov-22 140 140 140 Capacitación a Técnicos a través de la Aplica ción GeoFarmer (IA Lead of D428) USA-IDB-Apoyo para el Desarrollo de los Sistemas de A1516 NONCRP 30-Apr-21 31-Mar-22 96 52 44 96 Información del Bosque Cafetalero en El Salvador (IA Lead of D380) Sub-total IDB – Inter-American Development Bank 236 52 184 236 0 IFAD, International Fund for Agricultural Development IFAD Provision of a Digital Toolbox on Sustainable and resilient A1528 NONCRP 1-Sep-21 28-Feb-22 115 98 17 115 indigenous peoples’ food systems for improved nutrition Sub-total IFAD, International Fund for Agricultural 115 98 17 115 0 Development IITA, International Institute of Tropical Agriculture IITA (MOFPED UGANDA) Building Resilience to Enhance Food A1449 CRP 1-Jan-20 31-Dec-22 660 193 169 362 and Nutrition Security, Incomes and Health in Northern Uganda Sub-total IITA, International Institute of Tropical 660 193 169 362 0 Agriculture ILRI, International Livestock Research Institute ILRI (FAO)-FAO SOFA project (background paper D&F) and FAO A1600 1-Jan-22 31-Oct-22 42 42 42 GTA project ILRI (USAID) Crowed sourcing approach for testing barley A1423 CRP 1-Sep-19 30-Nov-22 306 128 177 305 varieties, and nutrition assessment and education in Africa RISING sites of the Ethiopian highlands Sub-total ILRI, International Livestock Research Institute 348 128 219 347 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral International Union for Conservation of Nature (IUCN) IUCN (GEF)-Restoration Challenge Grant Platform for A1592 NONCRP 3-Aug-22 30-Apr-25 2,000 155 155 Smallholders and Communities, with Blockchain-Enabled Crowdfunding Sub-total International Union for Conservation of Nature 2,000 0 155 155 0 (IUCN) Italy ITALY Junior Professional Officer Program 2022 - "Climate A1606 3-Oct-22 3-Oct-24 192 23 23 Change” ITALY Junior Professional Officer Program 2019 - Business Model A1418 CRP 14-Oct-19 31-Oct-22 250 205 45 250 Developer ITALY Junior Professional Officer Program 2021 - Program A1538 NONCRP 26-Oct-21 26-Oct-23 201 15 100 115 Delivery Elena Zurli ITALY Voluntary contribution 2020 A1430 CRP 1-Jan-20 31-Dec-23 341 170 42 212 ITALY Voluntary contribution 2020 (NON CRP) A1432 NONCRP 1-Jan-20 31-Dec-23 658 516 34 550 ITALY Voluntary contribution 2021 - ABDI A1510 CRP 1-May-21 30-Jun-23 61 31 24 55 ITALY Voluntary contribution 2021 - Cocoa of Excellence A1509 CRP 1-Jan-21 31-Dec-22 151 58 93 151 ITALY Voluntary contribution 2021 -Accelerate for Impact Platform A1511 NONCRP 11-May-21 31-Dec-23 626 4 8 12 (A4IP) ITALY Voluntary contribution 2022 - Cocoa of Excellence A1586 NONCRP 1-Jan-22 31-Dec-23 246 20 20 Sub-total Italy 2,726 999 389 1,388 0 Japan - MAFF, Ministry of Agriculture, Forestry and Fisheries JAPAN - MAFF Y5 Stimulating use of local food resources in A1526 CRP 1-Sep-21 31-Dec-22 308 54 254 308 Africa to improve nutrition and livelihoods: A new integrated food consumption assessment tool for better decision making in nutrition interventions Sub-total Japan - MAFF, Ministry of Agriculture, Forestry 308 54 254 308 0 and Fisheries SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral LWR, Lutheran World Relief LWR (USDA) Maximizing opportunities in Coffee and Cocoa in the A1389 CRP 1-Apr-19 15-May-23 1,262 900 242 1,142 Americas MOCCA Sub-total LWR, Lutheran World Relief 1,262 900 242 1,142 0 Multidonor SMALL GRANTS - TIP A1575 NONCRP 1-Jan-22 31-Dec-99 92 67 67 SMALL GRANTS - LEVER 2 - LAC A1529 NONCRP 1-Jan-21 31-Dec-99 24 13 9 22 SMALL GRANTS - LEVER 4 - AFRICA A1451 NONCRP 1-Jan-20 31-Dec-99 24 12 12 24 SMALL GRANTS - LEVER 4 - EUROPE A1506 NONCRP 1-Jan-21 31-Dec-99 70 27 43 70 SMALL GRANTS - LEVER 4 - LAC A1523 CRP 1-Jan-21 31-Dec-99 14 8 2 10 SMALL GRANTS - LEVER 5 - EUROPE A1518 CRP 1-Jan-21 31-Dec-99 29 3 3 6 Sub-total Multidonor 253 63 136 199 0 Netherlands - MoA, Ministry of Agriculture Nature and Food Quality NETHERLANDS-MOA-Resilient seed systems for climate change A1460 CRP 1-Nov-20 31-Oct-23 322 49 156 205 adaptation and livelihoods security Sub-total Netherlands - MoA, Ministry of Agriculture 322 49 156 205 0 Nature and Food Quality Netherlands - NWO, Netherlands Organisation for Scientific Research NETHERLANDS - NWO-WOTRO Using citizen science to improve A1374 CRP 1-Jul-18 30-Jun-22 1,024 983 41 1,024 agro-ecological and climatic accuracy of cacao planting material recommendations in Ghana and its regional-level access and delivery to farmers Sub-total Netherlands - NWO, Netherlands Organisation 1,024 983 41 1,024 0 for Scientific Research SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral Norwegian University of Life Sciences, NMBU NMBU (Crop Trust)-Biodiversity for Opportunities, Livelihoods and A1594 2-Sep-22 31-Dec-24 133 9 9 Development (BOLD) Sub-total Norwegian University of Life Sciences, NMBU 133 0 9 9 0 Nutricia Research Foundation Nutricia Research Foundation-Bio-efficacy of Provitamin A rich A1579 NONCRP 1-Jan-22 30-Sep-23 31 13 13 bananas in improving Vitamin A status in Rural Uganda Sub-total Nutricia Research Foundation 31 0 13 13 0 OroVerde — Tropical Forest Foundatio OroVerde (GERMANY-BMU) - Large-scale transformation towards A1614 1-Jul-22 28-Feb-23 5 5 5 biodiversity-friendly, climate resilient agriculture through risk finance solutions and enabling policy and trade frameworks Sub-total OroVerde — Tropical Forest Foundatio 5 0 5 5 0 PERU - STC, Secretaria Tecnica del CGIAR PERU STC - Fortaleciendo Conocimiento, Capacidad de A1422 CRP 16-Dec-19 31-Dec-22 250 99 130 229 Diagnostico y Buenas Practicas Frente a la Amenaza de Fusarium y Otros Problemas Fitosanitarios STC-CGIAR-Pre-Mejoramiento de las razas de maíz del Perú para A1507 NONCRP 16-Apr-21 15-Apr-23 150 6 52 58 facilitar el uso sostenible y generalizado de la diversidad nativa y simultáneamente mejorar la rentabilidad de la agricultura familiar Sub-total PERU - STC, Secretaria Tecnica del CGIAR 400 105 182 287 0 PROFONANPE- Fondo de Promoción de las Áreas Naturales Protegidas del Perú PROFONANPE (FAO) Gestión sostenible de la agrobiodiversidad A1464 CRP 25-Feb-21 30-Nov-22 189 149 40 189 y recuperación de ecosistemas vulnerables en la región andina del Perú, a través del Enfoque de Sistemas Importantes del Patrimonio Agrícola Mundial (SIPAM) Sub-total PROFONANPE- Fondo de Promoción de las 189 149 40 189 0 Áreas Naturales Protegidas del Perú SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral Royal Botanic Gardens, Kew RBG KEW (DEFRA)-PACS Conservation Incentive Mechanism A1609 1-Jul-22 31-Mar-23 54 6 6 Development in an Ethiopian Protected Area Buffer Zone Sub-total Royal Botanic Gardens, Kew 54 0 6 6 0 Switzerland - SDC, Swiss Agency for Development Cooperation SWITZERLAND - SDC Improving seed systems for smallholder A1301 CRP 1-Oct-17 31-Dec-22 1,971 1,530 290 1,820 food security - SDC Phase II Sub-total Switzerland - SDC, Swiss Agency for 1,971 1,530 290 1,820 0 Development Cooperation SYNGENTA, Company for Sustainable Agriculture SYNGENTA-Development of new methodological approaches A1544 NONCRP 15-Dec-21 15-Jun-23 185 75 75 for the improvement of the comparative genomic instances at Syngenta (Syngenta GreenPhyl and FunPhyl) Sub-total SYNGENTA, Company for Sustainable 185 0 75 75 0 Agriculture The Rockefeller Foundation THE ROCKEFELLER FOUNDATION Connecting People, A1618 1-Sep-22 31-Dec-24 700 12 12 Connecting Places. Demonstrating People and Landscapes Thrive through Indigenous People’s Food System Sub-total The Rockefeller Foundation 700 0 12 12 0 The University of Queensland UNIVERSITY OF QUEENSLAND (BMGF) BBTV mitigation: A1229 CRP 24-May-16 31-Dec-22 538 457 77 534 Community management in Nigeria, and screening wild banana progenitors for resistance Sub-total The University of Queensland 538 457 77 534 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral UGANDA - NARO, The National Agricultural Research Organisation UGANDA - NARO Novel approaches to the improvement A1368 CRP 1-Nov-18 31-Dec-24 2,500 729 901 1,630 of banana production in Eastern Africa: the application of biotechnological methodologies -- Phase IV UGANDA - NARO (BMGF) Improving scalable banana agronomy A1272 CRP 1-Mar-17 31-Jan-22 169 163 6 169 for small-scale farmers in highland banana cropping systems in East Africa Sub-total UGANDA - NARO, The National Agricultural 2,669 892 907 1,799 0 Research Organisation UN Sustainable Development Solutions Network (SDSN) SDSNA (WRI)- FABLE Catalyzing Delivery of Ten Critical A1531 NONCRP 1-Jan-21 31-Oct-24 282 69 70 139 Transitions Sub-total UN Sustainable Development Solutions Network 282 69 70 139 0 (SDSN) UNEP, United Nations Environment Programme UNEP - Stock-taking foundational evidence for 'Nature + A1617 3-Oct-22 31-Mar-23 52 48 48 Climate -, Pollution free' agriculture across scales Sub-total UNEP, United Nations Environment Programme 52 0 48 48 0 67 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral UNEP-GEF, United Nations Environment Programme/Global Environment Facility UNEP- GEF Mainstreaming agrobiodiversity conservation and A1265 CRP 30-Nov-16 11-Jul-23 3,046 1,932 512 2,444 utilization in agricultural sector to ensure ecosystem services and reduce vulnerability in India UNEP-GEF Conservation and sustainable use of agricultural A1212 CRP 1-Jan-16 31-Dec-22 1,114 968 146 1,114 biodiversity to improve regulating and supporting ecosystem services in agriculture production in Uzbekistan UNEP-GEF Cross-cutting capacity building, knowledge services A1373 NONCRP 19-Dec-18 31-Dec-22 784 434 350 784 and coordination project for the Food Security Integrated Approach Pilot Program (Food Security IAP)" UNEP-GEF Healthy landscapes: Managing Agricultural A1391 CRP 1-Apr-19 31-Mar-24 2,000 752 (181) 571 Landscapes in Socio-Ecologically Sensitive Areas to Promote Food Security, Wellbeing and Ecosystem Health Sub-total UNEP-GEF, United Nations Environment 6,944 4,086 827 4,913 0 Programme/Global Environment Facility United Kingdom - DI, Darwin Initiative UK - Darwin (UK - DEFRA) - Building smart seed systems for A1536 CRP 1-Jul-21 30-Jun-24 507 116 116 biodiversity, livelihoods and resilient restoration UK - Darwin (UK - DEFRA) Bridging agriculture and environment: A1394 NONCRP 1-Apr-19 31-Mar-22 630 533 96 629 Southern African crop-wild-relative regional network UK - Darwin (UK - DEFRA) Strengthening collaborative tree seed A1588 NONCRP 1-Apr-22 31-Mar-24 238 30 30 supply systems for restoration in Asia Sub-total United Kingdom - DI, Darwin Initiative 1,375 533 242 775 0 University of Bern University of Bern-CDE (ERC)-Comparing inclusive business, A1584 NONCRP 1-Mar-22 28-Feb-26 124 4 4 solidarity economy, and certification strategies for human well-being in global agri-food value chains (COMPASS) Sub-total University of Bern 124 0 4 4 0 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2022 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral WB, World Bank World Bank-DigitalAg4Morocco Innovation Competition A1550 NONCRP 22-Dec-21 31-Aug-22 150 102 102 Sub-total WB, World Bank 150 0 102 102 0 WCDI-Wageningen Centre for Development Innovation WCDI (NUFFIC) - Horn of Africa Food System Resilience: Making A1519 CRP 1-Apr-21 31-Mar-23 80 44 19 63 Horticulture Work for Healthier Diets and Income Generation in Protracted Crises WCDI (NUFFIC)-Building Resilient Food Systems in Protracted A1459 CRP 1-Jun-20 31-Mar-23 62 43 17 60 Crisis Situations: Climate Change, Seed Systems and Community Seed Banks WCDI The Food and Nutrition Security Resilience Programme A1607 1-Jun-22 31-Aug-23 40 12 12 (FNS-REPRO) South Sudan – Action learning on resilient seed systems Sub-total WCDI-Wageningen Centre for Development In- 182 87 48 135 0 novation WORLD VISION NEW ZEALAND WVNZ (IFAD) Melanesia Rural Market & Innovation-Driven A1500 NONCRP 1-Dec-20 30-Nov-23 737 192 295 487 Development Programme (IA Lead of D396) Sub-total WORLD VISION NEW ZEALAND 737 192 295 487 0 WorldFish WorldFish (Norwegian Ministry of Foreign Affairs)-Fisheries Sector A1608 1-Sep-22 31-Dec-22 6 6 6 Support Programme Phase 2 (FSSP2) ontology consultancy Sub-total WorldFish 6 0 6 6 0 69 SCHEDULE OF EXHIBIT 2 GRANT PLEDGES AND EXPENSES For the year ended 31 December, 2021 (US dollar 000s) Total Grant Expenditure Expenditure Total Deferred Project Description Project Crplink Start Date End Date Pledge Prior years Current year Expenditure Depreciation Bilateral WUR, Wageningen University WCDI (SDC) Integrated Seed Sector Development in Africa (ISSD A1427 CRP 1-Sep-19 28-Feb-23 221 97 103 200 Africa) 2019-2022 WUR (BMGF) Increasing fruit and vegetable intake of low- A1367 CRP 20-Jun-18 31-Dec-22 389 335 54 389 income populations in Vietnam and Nigeria through food system innovations WUR Partnerships for Healthy Diets and Nutrition in Urban African A1410 CRP 1-May-19 30-Apr-22 55 44 11 55 Food Systems – evidence and strategies (NOURICITY) Sub-total WUR, Wageningen University 665 476 168 644 0 Sub-total Bilateral - Restricted 48,006 20,968 9,826 30,794 0 CO-EX - Cocoa of Excellence products – income generating A1455 NONCRP 1-Oct-20 31-Dec-23 158 74 1 75 activities Sub-total Multidonor 158 74 1 75 0 Sub-total Research Unrestricted 158 74 1 75 0 Grand Total 86,964 31,974 26,174 58,148 0 DONORS SUPPORTING EXHIBIT 3 BIOVERSITY INTERNATIONAL Contributors of Unrestricted Funding: The Governments of: Italy Philippines Contributors of Restricted Funding: Restricted donors to Bioversity International: Anonymous Donor BAYER-Bayer Aktiengesellschaft Belgium-DGDC-Directorate General for Development Cooperation BMGF-Bill and Melinda Gates Foundation BIOVISION-Foundation for Ecological Development BLOMMER-Blommer Chocolate Company Burundi-PRRPB-Projet de Restauration et de Resilience du Paysage du Burundi CFHI-Child Family Health International CGIAR Fund China-CAAS-Chinese Academy of Agricultural Sciences Christensen Fund CIAT-International Center for Tropical Agriculture CIFOR-Center for International Forestry Research CIP-International Potato Center CROP TRUST South Africa-DALRRD-Department of Agriculture, Land Reform and Rural Development EC-European Commission FAO-Food and Agriculture Organization FAO-GEF-Food and Agriculture Organization/Global Environment Facility Fondation Prince Albert II de Monaco FONDO BINACIONAL-Fondo Binacional para la Paz y el Desarrollo Perú–Ecuador France-CIRAD-Centre de Cooperation Internationale en Recherche Agronomique Pour le Developpement Germany-GIZ-Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH Google Ireland Ltd. Harvest Plus ICCO-International Cocoa Organization ICRISAT-International Crops Research Institute for the Semi-Arid Tropics IDB-Inter-American Development Bank IFAD-International Fund for Agricultural Development IFPRI-International Food Policy Research Institute IITA-International Institute of Tropical Agriculture ILRI-International Livestock Research Institute India-ICAR-Indian Council of Agricultural Research 71 DONORS SUPPORTING EXHIBIT 3 BIOVERSITY INTERNATIONAL Contributors of Restricted Funding: Restricted donors to Bioversity International: (Continued) Italy IUCN-International Union for Conservation of Nature and Natural Resources IWMI-International Water Management Institute Japan-MAFF-Ministry of Agriculture, Forestry and Fisheries Japan-MOFA-Ministry of Foreign Affairs KIT-Royal Tropical Institute LWR-Lutheran World Relief Meridian Institute Netherlands-MoA-Ministry of Agriculture Nature and Food Quality Netherlands-NWO-Netherlands Organization for Scientific Research PACKARD-The David and Lucile Packard Foundation PERU-STC-Secretaria Tecnica del CGIAR PROFONANPE-Fondo de Promoción de las Áreas Naturales Protegidas del Perú SDSN Association Inc. Switzerland-SDC-Swiss Agency for Development Cooperation FNI-The Fridtjof Nansen Institute The University of Queensland UGANDA-NARO-The National Agricultural Research Organisation UNEP-GEF-United Nations Environment Programme/Global Environment Facility United Kingdom-DI-Darwin Initiative University of Oxford USA-USAID-United States Agency for International Development VITO-Vlaamse Instelling voor Technologisch Onderzoek WCDI-Wageningen Centre for Development Innovation WB-World Bank World Vision New Zealand Trust Board WUR-Wageningen University YARA International ASA Syngenta Crop Protection AG IAEA-International Atomic Energy Agency Nutricia Research Foundation FiBL-Research Institute of Organic Agriculture Tiserin Capital Management Limited CISP-Comitato Internazionale Per Lo Sviluppo Dei Popoli University of Bern RBG KEW-The Royal Botanic Gardens, KEW OroVerde - Die Tropenwaldstiftung "MEDA-Mennonite Economic Development Associates" WorldFish The Rockefeller Foundation NMBU-Norwegian University of Life Sciences UNEP-United Nations Environment Programme 72 DONORS SUPPORTING EXHIBIT 3 BIOVERSITY INTERNATIONAL Contributors of Restricted Funding: Restricted donors to MULTI-DONORS: Wyss Academy for Nature Swisscontact-Swiss Foundation for Technical Cooperation AGEXPORT-Asociación Guatemalteca de Exportadores IFAD-International Fund for Agricultural Development UNDP-United Nations Development Programme INRAe-Institut national de recherche pour l'agriculture, l'alimentation et l'environnement ILRI-International Livestock Research Institute WCDI-Wageningen Centre for Development Innovation France-CIRAD-Centre de Cooperation Internationale en Recherche Agronomique Pour le Developpement SDBG-San Diego Botanic Garden Netherlands-BZ-Ministry of Foreign Affairs 73 EXHIBIT 4 INDIRECT COST RATIO COMPUTATION For the years ended 31 December, 2021 (US dollar 000s) INSTITUTIONAL INDIRECT COST RATE COMPUTATION 2022 2021 General and Administration Expenses 6,560 4,989 Research Expenses+Non-CGIAR Collaboration costs 23,093 19,773 Institutional indirect cost rate 28.41% 25.23% CGIAR PARTNER FUNDS EXCLUDED FROM INSTITUTIONAL INDIRECT COST RATE COMPUTATION 2022 2021 In-house Partner Total In-house Partner Total Research Expenses 18,750 18,750 16,379 16,379 Non-CGIAR Collaboration Expenses 4,343 4,343 3,394 3,394 Total Research Expenses 23,093 0 23,093 19,773 0 19,773 General & Administration Expenses 6,560 6,560 4,989 4,989 Total 29,653 0 29,653 24,762 0 24,762 Percentage Indirect/Direct 28.41% 0.00% 28.41% 25.23% 0.00% 25.23% 74 The Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) is part of CGIAR, a global research partnership for a food-secure future. Bioversity International is the operating name of the International Plant Genetic Resources Institute (IPGRI).