Corporate information Board of Trustees Los Baños Headquarters Location/Address Members-at-large College, Los Baños Dr. Ralph Anthony Fischer 4031 Laguna Dr. Mutsuo Iwamoto Philippines Dr. Seong-Hee Lee Tel: (63-2) 580-5600; 845-0563 Dr. Jillian Lenné (63-49) 563-2701 to 2705 Prof. Ruth Oniang’o +1 (650) 833-6620 (USA direct) Dr. Ronald Phillips Fax: (63-2) 580-5699; 845-0606 Dr. Mangala Rai (63-49) 536-7995 Mr. Mohammed Syeduzzaman +1 (650) 833-6621 (USA direct) Dr. Achmad Suryana Dr. Elizabeth J. Woods Email: irri@cgiar.org Dr. Usha Barwale Zehr Web: www.irri.org Prof. Baowen Zhang IRRI Makati Office Location/Address Ex officio members 10th Floor, Suite 1009 Dr. Emerlinda R. Roman Security Bank Center President, University of the Philippines 6776 Ayala Avenue, Makati City 1226 Philippines Mr. Arthur C. Yap Tel: (63-2) 856-6133; 856-6129 Secretary, Philippine Department of Agriculture Fax: (63-2) 891-1236 Dr. Robert S. Zeigler External Auditors Director General Manabat Sanagustin & Co., CPAs Officers A member firm of KPMG Dr. William G. Padolina Secretary to the Board Mr. Norman A. Macdonald Treasurer to the Board Audit Committee Membership The members of the Audit Committee are confirming that all responsibilities outlined appointed by the Board. It assists the Board in in the charter have been carried out. fulfilling its oversight responsibilities by reviewing and auditing, from time to time, the accounts and financial condition as well as the risk Authority management and operating systems and procedures of the Institute. The Committee may The Audit Committee is authorized to undertake other duties delegated to it by the Board. commission investigations into matters within its scope of responsibility. It is For the Institute’s audit and accounts, the empowered to seek any information it Committee discharges its functions in consultation requires from Institute management and and coordination with the external auditors, the staff or external parties; meet with Institute internal auditors, and appropriate consultants of management and staff, external auditors, or the Institute. legal counsel, as necessary; and retain independent counsel, accountants, or others The Chairperson of the Audit Committee, who is to advise the Committee or assist in the customarily appointed by the Board at the time conduct of an investigation. when the Board appoints members of the Committee, presides over all meetings of the The Composition in 2009 and Committee. In his/her absence or disability, the Designation of Audit Committee Vice Chairperson shall act as the Chairperson for that meeting. Dr. Emerlinda Roman - Chairperson Mr. M. Syeduzzaman - Vice Chairperson A vacancy in the Audit Committee is filled from Dr. Ronald Phillips - Member among other members of the Board through Prof. Elizabeth Woods - Member election by the Board or election by the remaining Prof. Baowen Zhang - Member members of the Audit Committee. Any person so Dr. J. Lenné - Member elected by the Committee serves only until the Dr. A. Suryana - Member next meeting of the Board. Dr. M. Iwamoto - Member The Audit Committee shall meet at least once a year. Special meetings may be held upon call by its Chairman or upon request of at least one member. The Committee shall report to the Board, at least at the conclusion of each Committee meeting about Committee activities, issues, and related recommendations, Statement by the Board Chair For the year ended 31 December 2009 The International Rice Research Institute plays a very significant role in reducing poverty and hunger, improving the health of rice farmers and consumers, and ensuring environmental sustainability through collaborative research, partnerships, and the strengthening of national agricultural research and extension systems. As IRRI celebrates its 50th Anniversary, I am pleased to report that the Institute continues to meet the high standards expected by our stakeholders. Resource Mobilization In 2009, IRRI’s revenue increased by 33% to US$49.90 million. IRRI continues to be successful in attracting significant new investments to further its mission and continue its important task of reducing poverty through rice science. Financial Status IRRI’s financial position remains stable, with total assets of US$81.72 million compared with US$71.47 million in 2008. The liquidity and long-term stability indicators remain above the CGIAR benchmarks. IRRI incurred a net deficit of US$0.23 million. The deficit resulted from the use of designated net assets for identified research and management initiatives within the new Strategic Plan, such as the Knowledge Pathways Initiative and Climate Change and Drought Frontier Projects (US$0.75 million), but this was offset by a surplus on recurring operations of $0.52 million. The deficit was still consistent with the Board-approved reserve plan. CGIAR Change Management Process The Board and management have been very much involved in this. The impact of the changes on the organizational and programmatic structure of the Institute is not yet established, but the Institute will maintain its flexibility in its planning so that it can adapt to the new situation. Fiduciary Responsibility The Board recognizes its fiduciary responsibility for the financial statements of the Institute as well as in setting its overall strategy and following up on its implementation in accordance with agreed policies, particularly on investments, procedures, timelines, and results. Risk Management The Board continuously monitors the risk management system and risk mitigation measures and is satisfied with the progress made on implementing the risk management framework. External Program and Management Review The EPMR began in 2008 and a report was issued in early 2009. IRRI welcomed the recommendations and was pleased to note that the Institute’s finances were well managed and the internal control systems were functioning well. We have paid close attention to ensuring that IRRI’s already high standards of governance meet all the recommendations of the EPMR. Appreciation On behalf of the Board of Trustees, I would like to thank our partners and donors for their continued support and cooperation to fulfill IRRI’s mission. I would also like to recognize the dedication and perseverance of IRRI’s staff. ____________________ Prof. Elizabeth Woods Chair Board of Trustees International Rice Research Institute Financial statements December 31, 2009 and 2008 Management Statement of Responsibility for Financial Reporting The accompanying financial statements of the International Rice Research Institute (IRRI) for the years ended December 31, 2009 and 2008, are the responsibility of management, including the substance and objectivity of the information contained therein. Our financial reporting practices follow the “Accounting Policies and Reporting Practices Manual – Financial Guidelines Series No. 2” of the CGIAR. IRRI maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded and transactions are properly recorded and executed in accordance with management’s authorization. A system of reporting within the Institute presents management with an accurate view of the operations, enabling us to discern risks to our assets or fluctuations in the economic environment of the Institute at an early stage and at the same time providing a reliable basis for the financial statements and management reports. The Board of Trustees exercises its responsibility for these financial statements through its Audit Committee. This Committee meets regularly with management and representatives of the external and internal auditors to review matters relating to financial reporting, internal controls, and auditing. Dr. Robert S. Zeigler Norman A. Macdonald Director General Treasurer and Director for Management Services INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION December 31, 2009 (With Comparative Figures for 2008) INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) TABLE OF CONTENTS Page/s Report of Independent Auditors Statement of Financial Position Statement of Activities Statement of Changes in Net Assets Statement of Cash Flows Notes to the Financial Statements 1 - 13 Schedule of Grants Revenues and Accounts Receivable/(Payable) – Donors 14-16 Schedule of Restricted Agenda Funding 17-24 Details of Operating Expenses 14-25 Indirect Cost Calculation 14-26 Statement of Expenditures - European Community Funding 14-27 Statement of Expenditures - Germany Unrestricted Contribution 14-28 ABCD Manabat Sanagustin & Co., CPAs Telephone +63 (2) 885 7000 The KPMG Center, 9/F Fax +63 (2) 894 1985 6787 Ayala Avenue Internet www.kpmg.com.ph Makati City 1226, Metro Manila, Philippines E-Mail manila@kpmg.com.ph Branches · Subic · Cebu · Bacolod · Iloilo PRC-BOA Registration No. 0003 SEC Accreditation No. 0004-FR-2 BSP Accredited REPORT OF INDEPENDENT AUDITORS The Board of Trustees International Rice Research Institute We have audited the accompanying financial statements of International Rice Research Institute (a nonstock, not-for-profit organization), which comprise the statement of financial position as at December 31, 2009, and the statement of activities, statement of changes in net assets and statement of cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. The financial statements of International Rice Research Institute as of and for the year ended December 31, 2008, were audited by other auditors whose report dated April 17, 2009, expressed an unqualified opinion on those statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements and the supplementary schedules and statements in accordance with the basis of Accounting Policies and Reporting Practices Manual – Financial Guidelines Series No. 2 prescribed for international agricultural research centers under the auspices of Consultative Group on International Agricultural Research (CGIAR). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Manabat Sanagustin & Co., CPAs, a Philippine partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. ABCD We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of International Rice Research Institute (a nonstock, not-for-profit organization) as of December 31, 2009, and the results of its activities and its cash flows for the year then ended in accordance with CGIAR Accounting Policies and Reporting Practices Manual – Financial Guidelines Series No. 2 as prescribed for international agricultural research centers under the auspices of CGIAR. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of grants revenues and accounts receivable/ (payable) - donors, restricted agenda funding, details of operating expenses and indirect cost calculation and the statements of expenditures for European Community Funding and Germany Unrestricted Contribution for the year ended December 31, 2009 are presented for the purposes of additional analyses and are not a required part of the basic financial statements. The information in such supplementary schedules and statements has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Other Matter This report, including the opinion, has been prepared for and only for the members of the Board of Trustees as a body. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) Note 2009 2008 ASSETS Current Assets Cash and cash equivalents 3 29,429 28,524 Short term investments 4 9,260 2,790 Accounts receivable Donors 5 4,789 5,613 Employees 6 671 213 Others 7 1,894 873 Inventories (net of allowance for obsolescence of $104 in 2009 and $262 in 2008) 8 574 543 Prepaid expenses 182 89 Total Current Assets 46,799 38,645 Non-current Assets Property and equipment - net 9 10,515 10,577 Long term investments 4 24,410 22,246 Total Non-current Assets 34,925 32,823 81,724 71,468 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Donors 10 34,150 23,602 Others 11 805 1,546 Accruals and provisions 12 9,766 8,939 Total Current Liabilities 44,721 34,087 Net Assets Designated 37,003 37,381 81,724 71,468 See Notes to the Financial Statements. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 2009 Restricted Challenge Note Unrestricted Temporary Programs Total 2008 REVENUES Grants (Exhibit 1) 13,415 32,384 2,256 48,055 37,268 Other revenues 16 1,849 - - 1,849 257 15,264 32,384 2,256 49,904 37,525 OPERATING EXPENSES Program related (Exhibit 3) 12,327 32,199 2,256 46,782 35,755 Management and general (Exhibit 3) 6,453 185 - 6,638 7,217 18,780 32,384 2,256 53,420 42,972 Recovery of indirect costs (Exhibit 4) (3,283) - - (3,283) (2,782) 15,497 32,384 2,256 50,137 40,190 NET DEFICIT FROM ORDINARY ACTIVITIES (233) - - (233) (2,665) Unrealized foreign exchange translation gain (loss) 2 - - 2 (971) NET DEFICIT (231) - - (231) (3,636) MEMO ITEMS Operating expenses - by natural classification: Personnel costs 9,660 9,301 641 19,602 17,459 Supplies and services 15 5,703 9,855 753 16,311 14,856 Collaborators/Partners 354 9,662 555 10,571 4,689 Operational travel 1,062 2,467 294 3,823 3,443 Depreciation 9 2,001 1,099 13 3,113 2,525 Sub-total 18,780 32,384 2,256 53,420 42,972 Recovery of indirect costs (3,283) - - (3,283) (2,782) 15,497 32,384 2,256 50,137 40,190 See Notes to the Financial Statements. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) Designated Vested Non-Vested Invested Fixed Unrealized Research in Fixed Assets Risk Forex GRC Initiative Fund Total T Note Assets Acquisition Management Translation Reserve (Note 14) Non-vested Net Assets Balances, January 1, 2008 11,113 3,651 1,408 3,520 10,000 11,288 29,867 40,980 Board of trustees re-designation 14 - - 1,706 (1,706) - - - - Capital reserve replenishment 9 (2,525) 2,525 - - - - 2,525 - Acquisition of fixed assets 2,039 (2,002) - - - - (2,002) 37 Net deficit for the year (50) - (1,344) (971) - (1,271) (3,586) (3,636) Balances, December 31, 2008 10,577 4,174 1,770 843 10,000 10,017 26,804 37,381 Capital reserve replenishment (3,113) 3,113 - - - - 3,113 - Acquisition of fixed assets 9 3,202 (3,349) - - - - (3,349) (147) Net deficit for the year (151) - 670 2 - (752) (80) (231) Balances, December 31, 2009 10,515 3,938 2,440 845 10,000 9,265 26,488 37,003 See Notes to the Financial Statements. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) Note 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES Net deficit (231) (3,636) Adjustments for: Depreciation of property and equipment 9 3,113 2,525 Investment (gains) losses 16 (1,556) 183 Loss on disposal of property and equipment 9 151 50 Net surplus (deficit) before working capital changes 1,477 (878) Increase (decrease) in: Short term investments (6,470) (726) Accounts receivable (655) 1,966 Inventories (31) 29 Prepaid expenses (93) 230 Increase in: Accounts payable 9,807 7,449 Accruals and provisions 827 1,435 Cash generated from operations 4,862 9,505 Interest received 1,556 747 Net cash provided by operating activities 6,418 10,252 CASH FLOWS FROM INVESTING ACTIVITIES Increase in long term investments (2,164) (1,564) Net movement of fixed assets acquisition reserve (147) 37 Acquisition of property and equipment 9 (3,202) (2,039) Net cash used in investing activities (5,513) (3,566) NET INCREASE IN CASH AND CASH EQUIVALENTS 905 6,686 CASH AND CASH EQUIVALENTS January 1 28,524 21,838 December 31 29,429 28,524 See Notes to the Financial Statements. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 1. Reporting Entity International Rice Research Institute (the “Institute”) was established in 1960 to undertake basic research on the rice plant and applied research on all phases of rice production, management, distribution and utilization with the objective of attaining nutritive and economic advantage and benefit for the people of Asia and other major rice- growing areas. The Institute was first conferred the status of an international organization in the Philippines under Presidential Decree (PD) No. 1620. On May 19, 1995, a multi-lateral agreement recognizing the status of the Institute as an international organization was signed by representatives of 19 countries, including the Philippines. The 1995 Agreement allows the Institute to have a juridical status to more effectively pursue its international collaborative activities in rice research and training. Pursuant to the 1995 Agreement, the Institute and the Government of the Republic of the Philippines entered into a Headquarters (HQ) Agreement. The HQ Agreement was ratified by the Philippine President on May 23, 2006, was concurred by the Philippine Senate on April 28, 2008, and came into force on May 14, 2008. The Institute enjoys, among other privileges and prerogatives, the following tax exemptions: a. Exemption from the payment of gift, franchise, specific, percentage, real property, exchange, import, export, and all other taxes provided under existing laws or ordinances. This exemption shall extend to goods imported and owned by the Institute to be leased or used by members of its staff. b. All gifts, bequests, donations and contributions which may be received by the Institute from any source whatsoever, or which may be granted by the Institute to any individual or non-profit organization for educational or scientific purposes, shall be exempt from the payment of the taxes. All gifts, contributions and donations to the Institute shall be considered allowable deductions for purposes of determining the income tax of the donor. c. Non-Filipino citizens serving on the senior professional and administrative staff of the Institute shall be exempt from the payment of income tax on salaries and stipends in US dollars received solely and by reason of service rendered to the Institute. d. The Institute shall be exempt from the payment of all customs duties and related levies or any kind, except charges for storage, transport and services supplied, and from prohibitions and restrictions on the import or export of articles intended for its official use. The Institute receives support from various donor agencies and entities primarily through the Consultative Group on International Agricultural Research (CGIAR). The CGIAR is a group of donors composed of governments of various nations, international organizations and foundations. The Institute’s major facilities are located in Los Baños, Laguna, Philippines. It has fifteen (15) offices, including Africa, outside the Philippines. The Institute owns an administrative office in Makati City, Philippines. As of December 31, 2009, the Institute has 1,055 employees (2008 - 976). The financial statements and supplementary schedules of the Institute were approved and authorized for issue by the Board of Trustees on April 17, 2010. 2. Summary of Significant Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented. Basis of Financial Statements The financial statements, expressed in US dollars, are prepared on the basis of accounting practices prescribed for international agricultural research centers (Accounting Policies and Reporting Practices Manual - Financial Guidelines No. 2 or APRPM) under the auspices of the CGIAR. These accounting policies are applied consistently in dealing with items that are considered material in relation to the financial statements. The preparation of financial statements in conformity with CGIAR’s APRPM requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Future events may occur which can cause the assumptions used in arriving at the estimates to change. The effects of any change in estimates are reflected in the financial statements as they become reasonably determinable. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Basis of Measurement The financial statements have been prepared on the historical cost basis. Functional and Presentation Currency The financial statements are prepared in US dollars, rounded to the nearest thousand, except when otherwise indicated. - 2 - Revenue Recognition Grants are recognized as revenue upon the substantial fulfillment of the conditions attached to them, regardless of the period when it is intended to be used, or when the donor has explicitly waived the conditions. Grants are classified according to the type of restrictions attached to them. Unrestricted grants are grants received which the Institute may freely use for its mandated activities. Unrestricted grants are recognized in full in the period specified by the donor. Restricted grants are grants received in support of specified projects or activities mutually agreed upon by the Institute and donors. Revenue is recognized to the extent of expenses actually incurred. Excess of grants received over expenses, representing grants applicable to succeeding years, are shown as “Accounts payable - donors” in the statement of financial position. Claims from donors for project expenses paid in advance are shown as Accounts receivable - donors in the statement of financial position. Grants in kind are recorded at the fair value of the assets (or services) received or promised while cash grants are recorded at its US dollar equivalent at the time of receipt. Expense Recognition Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletion of assets or incurrence of liabilities that result in decreases in net assets. Expenses are recognized on the basis of a direct association between the costs incurred and the earning of specific items of revenue. The Institute presents on the face of the statement of activities an analysis of expenses using a classification based on the function and nature of expenses within the Institute. Program related expenses are activities that result in goods and services being distributed to beneficiaries, project proponents, and members that fulfill the purpose or mission for which the Institute exists. These expenses include advances to collaborators which will be subjected to liquidation at the end of the projects. Management and general expenses are all activities of Institute other than program-related activities. Cash and Cash Equivalents Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments that are both: (a) readily convertible to known amounts of cash; and (b) so near their maturity date that they present insignificant risk of changes in value. These investments, as distinguished from short term investments, are those that are acquired with original maturities of three months or less. Investments Investments are initially recorded at their acquisition cost if they are purchased and at their fair market value if they are received as grants. Investments in equity securities and debt securities are re-measured at their market value as of the reporting date. Interest, dividends, losses and gains relating to a financial instrument is reported in the Statement of Activities as expense or revenue. Short-term investments consist of investments that are: (a) acquired with original maturity of more than three months but not exceeding one year; and (b) those that are originally long term in nature but are currently due to mature within one year as of the reporting date. - 3 - Long-term investments are investments that are acquired with the intention of keeping the same for more than a year from the acquisition date and which are not maturing within one year as of the reporting date. Accounts Receivable Accounts receivable are carried at gross amount less an allowance for any uncollectible amounts. Allowance for doubtful accounts is based on past experience and on a continuous review of receivable aging reports and other relevant factors. When an accounts receivable is deemed doubtful of collection, the Institute provides an allowance for doubtful accounts during the year in which it is deemed doubtful. Any receivable or a portion thereof adjudged to be uncollectible is written off. The write-off is done after all efforts to collect have been exhausted. Receivables are classified as current or non-current. Current receivables are those collectible within one year from the reporting date. Non-current receivables are those collectible beyond one year. Inventories Inventories which consist of spare parts and supplies and other inventories are stated at the cost. Cost, which includes the purchase price plus cost of freight, installation and handling charges, is determined using the moving average method. Property and Equipment Property and equipment acquired prior to 1991 are carried at cost or estimated value; acquisitions starting 1991 are stated at cost. Capital expenditures with a minimum cost of US$500 or its equivalent and with an estimated life beyond one year are capitalized. Property and equipment which qualifies for recognition as an asset is initially measured at cost. The cost of an item of property and equipment comprises its purchase price and all other incidental cost in bringing the assets to its working condition for its intended use. Subsequent to initial recognition as an asset, an item of property and equipment are carried at its cost less any accumulated depreciation. Depreciation of all assets which are owned by the Institute is computed using the straight- line method over the estimated useful lives of the related assets, as follows: Estimated life in Category description years Physical facilities Building and improvements 60 Infrastructure and leasehold improvements 25 Furnishing and equipment Farm machinery and equipment 7-10 Shop machinery and equipment 7-10 Laboratory 5-10 Office 5-10 Auxiliary units 5-10 Vehicles 4-7 Computers 3-5 - 4 - Depreciation is charged from the month an asset was placed in operation and is continued until the asset has been fully depreciated or its use is discontinued. Property and equipment acquired through the use of grants restricted for a specific project are recorded as assets. Such assets are depreciated at a rate of 100% in the year of purchase. The depreciation expense is charged directly to the appropriate restricted project. An item of property and equipment is eliminated from the statement of financial position on disposal or when the asset is permanently withdrawn from use and no further economic benefits are expected from its disposal. Gains or losses arising from the retirement or disposal should be determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset and should be recognized as revenue or expense in the statement of activities. Accounts Payable Accounts payable represent amounts due to donors, employees, and others for support, services and/or materials received prior to year-end, but not paid for as at financial position date. Accruals Accruals represent liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or formally agreed with the supplier. Accordingly, a liability is recorded upon issuance of purchase orders to suppliers. Provisions Provisions are recognized when the Institute has: (a) a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation; and (c) a reliable estimate of the amount can be made. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. When there are a number of similar obligations, the likelihood that an outflow will be required in the settlement is determined by considering the class of obligations taken as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Net Assets Net assets are classified as either undesignated or designated. Undesignated is that part of net assets that is not designated by Institute’s management for specific purposes. Designated is that part of net assets that has been designated by Institute’s management for specific purposes, such as a reserve for the future acquisition of property and equipment. Leases A lease is an agreement whereby the lessor conveys to the lessee, in return for a payment or a series of payments, the right to use an asset for an agreed period of time. Leases of property where a significant portion of the risks and rewards of ownership is retained by the lessor are classified as operating leases. Payments made under operating leases are charged to operations on a straight-line basis over the period of the lease. - 5 - Foreign Currency Transactions And Translations Foreign currency denominated transactions are translated to US dollars for reporting purposes at standard bookkeeping rates which approximate the exchange rates prevailing at the dates of the transactions. Exchange differences arising from: (a) the settlement of foreign currency denominated monetary items at rates which are different from which they were originally booked; and (b) the translation of balances of foreign-currency denominated monetary items are credited or charged to operations during the year. Employee Benefits Employee benefits are given by the Institute in exchange for service rendered by all employees - whether internationally recruited staff (IRS) or nationally recruited staff (NRS). A defined contribution plan is a post-employment benefit plan under which the Institution pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as “personnel costs” under the statement of activities in the periods during which services are rendered by employees. Recovery of Indirect Costs The pooling of direct and indirect costs is based on the principle of attribution and assignability. Expenditures are pooled to different resource user units (cost centers) by direct identification. Expenditures that are common to the different cost centers are allocated on the basis of resource drivers. Non-operating and non-recurring expenditures are excluded in the computation. Direct and indirect costs exclude capital expenditures but include depreciation in the case of unrestricted funded activities. For restricted grants, the indirect cost rates may include capital expenditures depending on the terms and conditions of the relevant agreements. The method of calculating the indirect cost recovery rate is prescribed in the CGIAR Financial Guidelines Series No. 5 (“CGIAR Indirect Cost Allocation Guidelines”). Subsequent Events Post year-end events that provide additional information about the Institute’s situation at the reporting date (adjusting events) are reflected in the financial statements, if any. Post year- end events that are not adjusting events are disclosed in the notes when material. 3. Cash and Cash Equivalents This account consists of: 2009 2008 Cash equivalents 22,415 19,852 Cash on hand and in banks 7,014 8,672 29,429 28,524 - 6 - 4. Investments This account consists of: 2009 2008 Short term investments With original maturities of more than 3 months but less than one year 3,183 - Long term investments due to mature within one year 6,077 2,790 9,260 2,790 Long term investments 24,410 22,246 33,670 25,036 All the investments are principal protected, except for the US$1,140 equity investments under short term investments. The interest income from the investments included as part of “Other revenues” in the statement of activities is US$705,617 in 2009 (2008-US$713,759). Gains (losses) on investments amount to US$831,774 and US$929,809 in 2009 and 2008, respectively (see Note 16). 5. Accounts Receivable - Donors Receivables from donors arise from amounts due from grants or challenge programs that have been negotiated between a donor and the Institute which are yet to be collected or reimbursed by the donors (see Exhibit 1 for 2009 details). 2009 2008 Unrestricted 3,009 3,191 Restricted Temporary 1,600 2,317 Challenge programs 180 105 4,789 5,613 Based on past experience and on continuous review of receivables from donors, donors usually pay the amount of grant pledged to the Institute. Therefore, no amount of allowance was provided against the receivables. - 7 - 6. Accounts Receivable - Employees Receivables from employees are advances made to officers and employees for travel. The account consists of advances to: 2009 2008 Internationally recruited staffs (IRS) 326 108 Nationally recruited staffs (NRS) 290 83 Trainees, scholars, post doctorate fellows (PDF) 55 22 671 213 7. Accounts Receivable - Others The account consists of advance payment to suppliers, consultants and other third parties. 2009 2008 Advances to suppliers 976 402 IRRI Fund Limited 310 - Funds-in trust 278 189 Others 330 282 1,894 873 The IRRI Fund Limited is registered in Singapore as an international charitable organization that facilitates and encourages support for rice research particularly the works of the Institute from private and public donors in Singapore, Asia, and around the world. It was officially launched by the Institute in November 2009. 8. Inventories The account consists of: 2009 2008 Spare parts 347 506 Supplies and other inventories 331 299 678 805 Allowance for obsolescence (104) (262) 574 543 The decrease in the allowance for obsolescence is included in “Management and general expenses - supplies and services” in the statement of activities. - 8 - 9. Property and Equipment The details of property and equipment at December 31, 2009 and 2008, and their movements during the year consist of: Infrastructure Physical and Leasehold Furnishing and Facilities Improvements Equipment Total At January 1, 2009 Cost 123 2,401 36,027 38,551 Accumulated depreciation (32) (621) (27,321) (27,974) Net book value 91 1,780 8,706 10,577 Opening net book value 91 1,780 8,706 10,577 Cost Additions - 640 2,562 3,202 Disposal - - (930) (930) Accumulated depreciation Depreciation for the year (2) (389) (2,722) (3,113) Disposal - - 779 779 Closing net book value 89 2,031 8,395 10,515 At December 31, 2009 Cost 123 3,041 37,659 40,823 Accumulated depreciation (34) (1,010) (29,264) (30,308) Net book value 89 2,031 8,395 10,515 Infrastruct Physical and Leaseho Furnishing an Facilities Improvemen Equip Total At January 1, 2008 Cost 123 2,146 34,859 37,128 Accumulated depreciation (30) (514) (25,471) (26,015) Net book value 93 1,632 9,388 11,113 Opening net book value 93 1,632 9,388 11,113 Cost Additions - 255 1,784 2,039 Disposal - - (616) (616) Accumulated depreciation Depreciation for the year (2) (107) (2,416) (2,525) Disposal - - 566 566 Closing net book value 91 1,780 8,706 10,577 At December 31, 2008 Cost 123 2,401 36,027 38,551 Accumulated depreciation (32) (621) (27,321) (27,974) Net book value 91 1,780 8,706 10,577 Total assets from restricted grants amounted to US$3,658 thousand and US$2,657 thousand as of December 31, 2009 and 2008, respectively. Depreciation expense amounted to US$3,113 thousand and US$2,525 thousand in 2009 and 2008, respectively. - 9 - 10. Accounts Payable - Donors Donor payables include grants received from donors for which conditions are not yet met and amounts payable to donors in respect of any unexpended funds received in advance for restricted grants (see Exhibit 1 for 2009 details). 2009 2008 Unrestricted 579 736 Restricted Temporary 32,838 21,735 Challenge programs 733 1,131 34,150 23,602 11. Accounts Payable - Others Other payables include all other liabilities the Institute has incurred and has been billed for, which remain unpaid as at statements of financial position date. This account consists of: 2009 2008 Deferred training charges 275 185 Funds in trust 245 1,092 Deferred salaries and benefits of post doctoral fellows 187 172 Accounts payable - Other CGIAR Centers 98 97 805 1,546 Funds in trust (FIT) is provided by donors and managed by the Institute, with the ultimate beneficiary other than the CGIAR Centers. 12. Accruals and Provisions Accrual account consists of: 2009 2008 Accruals Trade 3,078 2,850 Others 3,164 2,858 6,242 5,708 Provisions 3,524 3,231 9,766 8,939 Provisions consist of accumulated leave credits due to staff as of December 31, 2009 and 2008 based on current personnel policy manual, in addition to repatriation costs of internationally recruited staff. - 10 - Movements on the provisions are as follows: 2009 2008 Beginning balance 3,231 3,306 Additional provisions 619 364 Amount used during the period (326) (439) 3,524 3,231 13. Nationally Recruited Staff (NRS) Provident Fund The Institute maintains a non-contributory provident fund for the benefit of its nationally recruited staff. The monthly contribution to the fund is computed at 10.5% of an employee’s monthly basic salary which is remitted to the trustee-administered funds. The fund provides for lump sum payment to qualified employees/members upon their separation from the Institute, under certain conditions. The administration of fund by a Retirement Committee is based on approved investment guidelines as contained in the Trust Agreement. Based on the latest actuarial report dated February 18, 2008, the fund is considered adequate to cover for the minimum benefits as required by Philippine Laws. The Institute is responsible for any shortfall in the fund to comply with the minimum legal requirements. Contributions to the fund amounted to about US$438 thousand and US$425 thousand in 2009 and 2008, respectively. The contribution to provident fund is charged to “Personnel costs” under the statement of activities. 14. Research Initiative Fund The movements in Research Initiative Fund are shown below: Africa Strategic And Knowledge Frontier Research Needy Develop Pathways Projects Initiative Countries Office Initiative Total Balances, December 31, 2007 8,712 221 511 1,355 489 11,288 Net deficit for the year (725) (79) - (301) (166) (1,271) Balances, December 31, 2008 7,987 142 511 1,054 323 10,017 Net deficit for the year (392) (36) - (212) (112) (752) Balances, December 31, 2009 7,595 106 511 842 211 9,265 Designated On September 16, 2008, the Board of Trustees approved the re-designation of US$1,706 thousand from Reserve for Unrealized Foreign Exchange to Reserve for Risk Management. There was no re-designation of the reserves during 2009. Undesignated The Institute does not have undesignated net assets as of December 31, 2009 and 2008. - 11 - 15. Leases The Institute entered into several lease agreements which consists of: a. On September 7, 2001, the Institute renewed its lease agreement for research facilities with the University of the Philippines System (the University). The new lease agreement, which took effect on July 1, 2000, is for a period of 25 years up to June 30, 2025, and is renewable upon mutual agreement of the parties. Under the terms of the agreement, the following provisions apply: i. The Institute will pay a nominal rental of one peso every year for the parcels of land used as sites for its laboratories, office and service buildings and housing. In addition and continuing the past practice of providing the equivalent in cash of the approximate value of agricultural products that otherwise could be grown on this land, the Institute provided a lump sum, and non reimbursable financial assistance to the University in the amount of US$375,000. ii. For the duration of the lease, the Institute will also contribute to the cost of development and maintenance of the roads, utilities and other support infrastructure at the University outside the leased land in the amount of US$12,500 per year from the 11th year to the 25th year. Upon signing of the agreement, the first 10-year payment (US$125,000) was paid as a lump-sum. iii. Pursuant to the Second Consolidated Renewal of Lease Contract between the University and the Institute, the latter shall execute documents necessary to facilitate the transfer of ownership of the buildings and permanent improvements to the former upon termination of the lease. Further, in Section 2 of Article XV of the Institute’s Charter, all the physical plant, equipment and other assets shall become the property of the University in case the Institute is terminated for any reason. As stated in both documents, the transfer of ownership shall not cover other assets such as the Institute’s Gene Bank and Genetic Resources, which have been assigned in trust to the Institute. Other assets donated to the Institute shall be subjected to other conditions in respect of their disposition upon dissolution of the Institute. iv. In support of any expansion of the agricultural research program of the Institute and the University, the Philippine Government authorized the University to acquire, by negotiated sale or by expropriation, private agricultural property under PD No. 457. b. The Institute also leases additional eight (8) hectares of land for experimental rice production and other related purposes for five (5) years beginning January 1, 2005 to December 31, 2009 for annual base rental of $10,000. It is renewable under such terms and conditions mutually agreed upon by both parties. c. The Institute signed a lease contract with Hewlett Packard (HP) for a seat management agreement involving the lease of computers and other bundled services. The lease covers 4 phases, each phase effective for 3 years. The first phase started in October 2004 and the last phase was extended up to December 31, 2009. Another extension up to March 31, 2010 was made to ensure an orderly transfer of contracted services to the Institution. The minimum payment (including consumables) under this contract is US$16,231 per month. - 12 - d. The Institute also leases land and other properties from third parties for project experimental sites with periods ranging from one to five years. As of December 31, 2009 and 2008, the Institute does not have any lease contracts classified as finance leases. The leases mentioned above are accounted for as operating lease. Rent expense shown as part of ‘Supplies and services’ in the statement of activities amounted to US$0.33 million for both years. The lease rental commitments of the Institute for the remaining term of the lease contract follow (amounts in thousands): 2009 2008 Not later than one (1) year 89 317 Later than one (1) year and not later than five (5) years 50 127 Later than five (5) years 125 138 264 582 16. Other Revenues This account consists of: 2009 2008 Investment gains (losses) 1,556 (183) Self-sustaining activities 84 (91) Miscellaneous, including realized gain on foreign exchange 209 531 1,849 257 Self-sustaining activities of the Institute includes: (1) food and housing services, which includes operation and management of the Institute’s residences; and (2) rice mill operations, which provides the rice ration of Nationally Recruited Staff (NRS) as part of their monthly non-cash entitlement. - 13 - Exhiibiitt 1 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANTS REVENUES AND ACCOUNTS RECEIVABLE/(PAYABLE) - DONORS FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 2009 Total Funds Accounts Accounts 2008 Donors Available Receivable Payable Grant Grant Unrestricted Australia 1,158 - (432) 726 661 Bangladesh - 100 - 100 100 Canada - 1,191 - 1,191 1,332 China - 140 - 140 140 France 104 - - 104 102 Germany 853 - - 853 537 India 150 - - 150 150 Japan - 1,186 - 1,186 1,152 Korea 267 - (147) 120 150 Norway 294 - - 294 382 Philippines 78 17 - 95 101 Sweden 508 - - 508 516 Switzerland 669 - - 669 583 Thailand 40 - - 40 40 Turkey 20 - - 20 - United Kingdom 2,004 - - 2,004 2,070 United States of America 2,625 375 - 3,000 3,000 Vietnam 15 - - 15 15 World Bank 2,200 - - 2,200 1,640 Total 10,985 3,009 (579) 13,415 12,671 Restricted 5 Prime 105 - - 105 484 Aquifer Limited - - - - 30 Asian Development Bank (ADB) 927 687 - 1,614 994 Australia 980 - (291) 689 690 Bangladesh (3) 8 - 5 35 Bill and Melinda Gates Foundation 36,546 - (21,443) 15,103 5,705 Brazil 20 - (20) - - Canada 32 - (32) - 65 China 132 - (70) 62 30 Chinese Academy of Agricultural Sciences (CAAS) 3,037 - (2,132) 905 - Consultative Group on International Agricultural Research (CGIAR) Centers and Secretariat - - - - - Bioversity 91 - (23) 68 36 CGIAR/System-wide Genetic Resources programme (SGRP)/Special Program on Impact Assessment (SPIA) 394 9 - 403 155 International Center for Agricultural Research in the Dry Areas (ICARDA) 83 - (9) 74 83 International Crop Research Institute for Semi-Arid Tropics (ICRISAT) 468 - (256) 212 - Centro Internacional de Mejoramiento de Maiz Y Trigo (CIMMYT) 20 - - 20 - Forward - 14 - Exhiibiitt 1 [ INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANTS REVENUES AND ACCOUNTS RECEIVABLE/(PAYABLE) - DONORS FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 2009 Total Funds Accounts Accounts 2008 Donors Available Receivable Payable Grant Grant Centro Internacional de Agricultura Tropical – Information and Communications Technology/Knowledge Management Initiative (CIAT- ICT/KM) 11 - (3) 8 29 International Fund for Agricultural Research (IFAR) 7 - - 7 11 International Food Policy Research Institute (IFPRI) 25 - (13) 12 11 Cornell University 326 - (212) 114 European Community Funding 1,390 31 - 1,421 1,752 Food and agricultural Organization of the United Nations (FAO) 13 27 - 40 51 France 472 - (27) 445 251 Foundation for Advanced Studies on Agricultural Development (FASID) - - - - 22 Gatsby Foundation 160 - (155) 5 Germany 287 132 - 419 549 Global Crop Diversity Trust (GCDT) 239 - (5) 234 328 Grand Challenges in Global Health through Albert – Ludwigs University of Freiburg 351 132 - 483 483 Hybrid Rice Research and Development Consortium (HRDC) 450 - (148) 302 318 International Atomic Energy Association (IAEA) 32 - (5) 27 17 India 356 - (38) 318 444 International Fund for Agricultural Development (IFAD) 1,627 - (675) 952 1,368 International Fertilizer Association (IFA)/ International Plant Nutrition Institute (IPNI)/ International Potash Institute (IPI) 135 - (32) 103 121 Iran 197 - (105) 92 165 Japan 2,450 505 - 2,955 3,560 Korea 1,218 - (590) 628 675 Kellogg Foundation - 20 - 20 - Malaysia 36 - (19) 17 18 Mexico (10) 10 - - - Nunhems BV 14 - (1) 13 29 Plan International Cambodia 32 - (5) 27 7 Philippines 804 - (740) 64 77 Pioneer Hi-bred International 250 - (43) 207 - Portugal 292 - (202) 90 58 Rockefeller Foundation (RF) 4,049 - (3,673) 376 116 Switzerland 1,355 - (372) 983 752 Syngenta 60 - - 60 - United Kingdom 178 - (39) 139 58 United States of America (USA) 3,169 - (1,096) 2,073 1,968 World Bank 345 - (87) 258 196 Forward - 15 - Exhiibiitt 1 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANTS REVENUES AND ACCOUNTS RECEIVABLE/(PAYABLE) - DONORS FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 2009 Total Funds Accounts Accounts 2008 Donors Available Receivable Payable Grant Grant World Vision Inc. 48 39 - 87 - Others 422 - (277) 145 60 Subtotal 63,622 1,600 (32,838) 32,384 21,801 Challenge Programs Water and Food 65 180 - 245 920 Generation 2,099 - (702) 1,397 1,494 Harvest Plus 645 - (31) 614 382 Subtotal 2,809 180 (733) 2,256 2,796 Total Restricted Grants 66,431 1,780 (33,571) 34,640 24,597 Total Grants 77,416 4,789 (34,150) 48,055 37,268 - 16 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total A. Temporary 5 prime Donation of Molecular Biology Products 01/01/08-31/12/09 589 484 105 589 Asian Development Bank (ADB) Development and Dissemination of Water-Saving Rice Technologies in South Asia 01/01/06-30/12/09 1,000 649 308 957 Bringing About Sustainable Rice Production in Asia by Reducing Preventable Pre-and-post harvest losses 01/10/08-30/09/10 2,000 58 1,302 1,360 Improving Poor Farmer’s Livelihood Through Post- Harvest Technology 11/07/05-31/12/08 750 730 4 734 Total 3,750 1,437 1,614 3,051 Australia Fine-tuning the Happy Seeder Technology for the Adoption in Northwest India 01/10/07-30/09/10 169 64 57 121 Support for 6th International Rice Genetic Symposium 02/06/09-31/12/09 24 - 24 24 Improving Rice Productivity in South and Southeast Sulawesi 01/03/08-28/02/11 511 133 158 291 Implementation of Rodent Management in Intensive Irrigated Rice Production Systems in Indonesia and Vietnam 01/04/06-31/03/10 100 76 24 100 Sustainable Intensification of Rice-Maize Productions Systems in Bangladesh 01/07/08-30/06/13 1,543 71 279 350 Developing Molecular Markers to Enable Selection Against Chalk in Rice 01/05/07-30/04/12 750 200 147 347 Total 3,097 544 689 1,233 Bangladesh Enhancing MAS Capacity for Salt-Stress Rice Breeding in Bangladesh 31/03/08-30/04/09 40 35 5 40 Bill and Melinda Gates Foundation Stress-tolerant Rice for Poor Farmers in Africa and South Asia 01/11/07-31/01/11 19,897 5,286 6,930 12,216 Cereal System Initiative for South Asia (CSISA) 01/12/08-30/11/11 19,594 161 5,362 5,523 Creating the Second Green Revolution by Supercharging Photosynthesis: C4-rice 15/10/08-30/04/12 11,018 447 2,789 3,236 Rice in the 21st Century Global Economy: Strategic Research and Policy Issues for Food Security 23/06/09-14/07/10 100 - 22 22 Total 50,609 5,894 15,103 20,997 China Development of Disease-resistant, Cold-tolerant Rice Variety in South China Throughout Genomic Tools 05/02/07-04/02/09 26 24 2 26 China IRRI Collaboration 01/01/08-31/12/09 150 20 60 80 Total 176 44 62 106 Chinese Academy of Agricultural Sciences “Green Super Rice” for the Resource-Poor of Africa and Asia 11/01/08-31/10/11 4,633 - 905 905 Consultative Group on International Agricultural Research (CGIAR Centers and Secretariat) Biodiversity System-wide Improvement of Location Data Quality 01/01/07-31/12/09 103 49 37 86 System-wide Improvement of Location Data Quality Phase 2 01/01/08-31/12/09 34 - 22 22 Action for the Rehabilitation of Global Public Good in the CGIAR Genetic Resources System: Phase 2 - Activity 4: Assess Knowledge and Gaps in the Diversity and Genetic Quality of the Collection. Activity 4.1.1 Completion of Passport Data Entry System-wide 02/03/09-31/03/10 17 - 9 9 Total 154 49 68 117 Forward - 17 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total CGIAR/SGRP/SPIA Collective Action for the Rehabilitation of Global Public Goods in the CGIAR Genetic Resources System: Phase 2 Project - Genebank Upgrading 01/01/07-31/12/09 337 316 21 337 Development and Implementation of Risk Management Procedures for Individual Genebanks and for Collections in Common 31/10/07-31/03/10 84 62 18 80 Reducing and Managing the Loss of Genetic Integrity of Conserved Germplasm (Sub Activity Under the Collective Action for the Rehabilitation of Global Public Goods in the CGIAR Genetic Resources System: Phase 2 (GPG2)) 01/01/07-31/03/10 457 45 364 409 Total 878 423 403 826 ICARDA Establishment of the Global Crop Registers for Rice and Wheat 01/01/08-31/03/10 180 83 74 157 CIAT-ICT/KM ICT KM-Knowledge Management Harmonizing Research Output in the Northern Uplands of Lao PDR 01/08/07-31/01/09 20 - 8 8 CIMMYT GPG2 ACT. 3.1 "Development of Collaborative Platform in Support of Best Practices in Safe Movement of Germplasm" 23/3/09 - 31/12/09 20 - 20 20 ICRISAT Tracking Changes in Rural Poverty in Household and Village Economies in South Asia (Gates Village Level Surveys Gates-VLS) 01/05/09-30/04/14 2,021 - 212 212 International Fund for Agricultural Research (IFAR) Transferring Sativa Knowledge to Glaberrima to Enable the Evaluation of Quality in Africa Rice 01/06/08-31/07/09 11 4 7 11 International Food Policy Research Institute (IFPRI) International Food Policy Research Institute (IFPRI) - Scoping the Potential Futures for Rice in Asia: Exploring Alternatives Strategies and Policies 01/04/07-31/12/09 25 - 7 7 International Food Policy Research Institute (IFPRI) - Supporting Strategic Investment Choices In Agricultural Technology Development 01/06/07-31/12/09 25 - 5 5 Total 50 - 12 12 Cornell University Cornell University -Durable Resistance in Wheat 01/02-08-31/01/11 623 27 114 141 European Commission Coordinating NGO interventions for improving Small and Marginal Farmers’ Households, Livelihood and Food Security in Bangladesh 01/07/04-31/08/09 1,960 1,192 395 1,587 Raising Productivity in Rainfed Environments; Attacking the Roots of Poverty 01/01/09-31/12/09 2,719 698 974 1,672 Sustaining Productivity in Intensive Rice-Based Systems 01/01/08-31/12/10 635 635 - 635 Metabolomic Technology Applications for Plants, Health and Outreach 01/10/06-31/03/10 202 94 52 146 Total 5,516 2,619 1,421 4,040 Food and Agriculture Organization of the United Nations (FAO) Development of an Application to Implement Protocols and Transactions Required for the Management of the Standard Material Transfer Agreement of the International Treaty on Plant Genetic Resources for Food and Agriculture (IT-PGRFA) 01/01/09-31/07/09 40 - 40 40 Forward - 18 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total France France Attribution 01/01/09-31/12/09 366 - 366 366 Decoding Rice Genetic Diversity (Oryza SNP Consortium Project) 01/12/08-31/12/10 1,300 - 45 45 Diversity of Adaptive Traits to Water and Thermal Stress in Rice (Oryza sativa L.): High Throughout Phenotyping for Association Mapping 01/01/08-31/12/10 59 6 34 40 Total 1,725 6 445 451 Gatsby Foundation Collections of Landraces and Wild Species of Oryza in Kenya, Mozambique, Tanzania and Uganda (in collaboration with WARDA) 01/05/07-30/04/10 160 - 5 5 Germany Enhancing and Stabilizing the Productivity of Salt- Affected Areas by Incorporating Genes for Tolerance of Abiotic Stresses in Rice 01/01/08-31/12/10 1,251 206 354 560 Rice and Global Climate Change: Candidate Genes for Preventing Heat and Drought-Induced Yield Losses Due to Spikelet Sterility 01/11/08-31/10/10 82 2 42 44 Transcriptome Profiling of Hybrid Rice 01/12/07-30/11/09 87 3 23 26 Total 1,420 211 419 630 Global Crop Diversity Trust (GCDT) Heat-Tolerant Rice to Combat Global Warming 01/01/08-31/12/09 30 20 11 31 Long-term Funding of the EX Situ Collection of Rice Germplasm Held by IRRI 01/11/06-31/10/11 1,500 700 223 923 Total 1,530 720 234 954 Grand Challenges in Global Health through Albert – Ludwig’s University of Freiburg ALUF/GCGH - Engineering Rice for High Beta- Carotene, Vitamin E and Enhanced Iron and Zinc Bioavailability 28/09/05-27/09/10 1,834 789 483 1,272 Hybrid Rice Research and Development Consortium (HRDC) Hybrid Rice Research and Development Consortium (HRDC) 01/02-08-31/12/09 728 318 302 620 International Atomic Energy Association (IAEA) Dissecting Drought Tolerance Mechanisms in Rice Through Gain of Function Deletion Mutants 15/06/06-17/11/09 32 21 6 27 Selections of Greater Agronomic Water-Use Efficiency in Wheat and Rice Using Carbon Isotope Discrimination 15/11/03-14/06/09 40 18 21 39 Total 72 39 27 66 India ICAR RWC 01/04/07-31/03/09 100 44 18 62 IRRI India Collaborative Grant 01/01/09-31/12/09 300 - 300 300 Total 400 44 318 362 International Fund for Agricultural Development (IFAD) Managing Rice Landscapes in the Marginal Uplands for Household Food Security and Environment Environmental Sustainability 26/07/05-31/03/09 1,190 895 255 1,150 Accelerating Agricultural Technology Adoption to Enhance Rural Livelihoods in Disadvantaged Districts of India 16/05/07-30/06/10 1,000 437 161 598 Reducing Risks from Arsenic Contamination of Poor People 31/10/08-31/12/10 200 1 57 58 Programme for Alleviating Poverty Through Improving Rice Production in East and Southern Africa 20/09/07-30/09/10 1,500 748 434 1,182 Support to Agricultural Research for Climate Change Adaptation (SARCCAB) in Bangladesh 23/07/09-30/09/12 700 - 45 45 Total 4,590 2,081 952 3,033 Forward - 19 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total International Fertilizer Association (IFA)/International Plant Nutrition Institute (IPNI)/ International Potash Institute (IPI) The Irrigated Rice Research Consortium Phase III-Site Specific Nutrient Management 01/01/05-30/06/09 432 418 14 432 The Irrigated Rice Research Consortium Phase IV - Enhancing Profitability of Rice Farming in Asia through Improved Nutrient and Crop Management 01/01/09-31/12/12 480 - 89 89 Total 912 418 103 521 Iran IRRI-Iran Collaborative Project 01/01/99-31/12/10 1,447 1,250 92 1,342 Japan Development of Integrated Rice Cultivation System Under Water Saving Conditions 09/08/05-08/08/10 1,638 1,133 287 1,420 Raising Productivity in Rainfed Environments: Attacking the Roots of Poverty 01/01/09-31/12/09 330 - 330 330 Sustaining Productivity in Intensive Rice-based Systems: Rice and the Environments 01/01/09-31/12/09 217 - 217 217 East and Southern Africa: Rice for Rural Incomes and an Affordable Urban Staple 01/01/09-31/12/09 53 - 53 53 Rice and Human Health: Overcoming the Consequences of Poverty 01/01/09-31/12/09 20 - 20 20 Rice Genetic Diversity and Discovery: Meeting the Needs of Future Generations for Rice Genetic Resources 01/01/09-31/12/09 268 - 268 268 Information and Communication: Convening a Global Rice Research Community 01/01/09-31/12/09 31 - 31 31 NIAES - Assessing Heat Stresses of Rice Varieties Under the Tropical Open-Field Conditions 01/09/08-28/02//09 20 - 20 20 Collaborative Research on Socioeconomic Constraints to Adoption of Technology and Farmer's Response 01/04/05-31/03/10 119 77 39 116 Socioeconomic Survey in the Bohol Irrigation System, Philippines 03/11/08-30/03/09 14 2 12 14 Upland Rice Variety Selection Techniques (for African Countries) 29/10/09-24/11/09 20 - 20 20 Implementation Plans to Disseminate Submergence Tolerant Varieties and Associated New Production Practices to Southeast Asia 19/03/07-31/03/09 4,236 3,031 1,204 4,235 Transformation of lowland Rice and Evaluation of Transformed Rice For Environmental Stress Tolerance - Year 2 01/05/08-27/02/09 358 106 252 358 Transformation of Lowland Rice and Evaluation of Transformed Rice for Environmental Stress Tolerance - Year 3 01/04/08- 26/02/10 384 - 192 192 Japan-Transformation of Lowland Rice and Evaluation of Transformed Rice for Environmental Stress Tolerance - Year 1 21/05/07-29/02/08 312 302 10 312 Total 8,020 4,651 2,955 7,606 Korea IRRI/Korea Office 17/11/01-31/12/09 2,530 1,765 230 1,995 Wide Hybridization and Gene Introgression for Rice Improvement/Broadening Gene Pool of Rice: Wild Species Introgression and Marker Assisted Selection 01/07/03-31/08/09 240 216 23 239 IRRI/Korea - Attribution 01/01/09-31/12/09 50 - 50 50 Functional Genomics Approach to Identification of Broad-Spectrum Resistance Genes Against Rice Blast Disease in Korean Germplasm 01/07/03-31/08/09 240 189 50 239 Development of Submergence Tolerant Japonica Rice Variety 01/04/08-31/03/11 90 4 30 34 Cooperative Funding for Korea-IRRI Collaborative Projects 01/01/99-31/12/09 525 140 45 185 Germplasm Utilization and Value-Added Project 01/01/01-31/12/09 345 90 28 118 Korean Seed Multiplication Project 01/07/91-31/12/09 443 390 40 430 Temperate Rice Research Consortium 08/02/07-31/12/09 402 238 132 370 Total 4,865 3,032 628 3,660 Forward - 20 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total Kellogg's Ecological Intensification and Sustainability in Long- term Rice-based Cropping Systems 10/14/09-10/13/13 200 - 20 20 Malaysia MARDI-The Impact of Rice Production on Environmental Sustainability 01/09/05-30/09/09 90 - 17 17 Nunhems BV Further Development of International Crop Information Systems (ICIS) in Collaboration with Nunhems - Phase II 01/04/06-31/03/10 80 67 13 80 Plan International Cambodia Poverty Reduction Options Validated in Drought Environments Phase IV 12/06/09-10/05/10 21 - 14 14 Poverty Reduction Options Validated in Drought Environments Phase III 02/05/08-28/02/09 20 7 13 20 Total 41 7 27 34 Philippines Improved Nutrient Management Options for Unfavorable Rainfed Lowlands in the Philippines 15/07/09-14/07/11 41 - 6 6 Hybrid Nucleus and Breeder Seed Production 16/01/04-31/12/11 43 25 18 43 Improving Knowledge Exchange and Decision Making Among Rice Stakeholders Through ICT-based Technology Promotion and Delivery Systems 01/01/06-30/06/09 68 54 8 62 Accelerating the Development of High Yielding Rice Varieties for the Major Ecosystems of the Philippines 10/08/09-10/07/10 174 - 17 17 Strategic Assessment of Yield Limiting and Reducing Factors in the Philippines 08/10/09-07/10/10 22 - 5 5 Unified Capability Building Support 10/08/09-10/07/10 391 - 10 10 Total 739 79 64 143 Pioneer Support for 6th International Rice Genetics Symposium 01/11/09-31/12/09 10 - 10 10 Scientific Know-How and Exchange Program bet IRRI & Pioneer Hi-Bred International, Inc. (DuPont) 16/07/08-15/07/11 778 - 197 197 Total 788 - 207 207 Portugal Village-Level Market-Driven Rice Intensification 01/01/08-31/12/10 350 58 90 148 Rockefeller Foundation (RF) Developing and Disseminating Resilient and Productive Rice Varieties for Drought-Prone Environments in India 01/03/05-28/02/09 610 568 42 610 Golden Rice Product Development and Deployment 01/01/09-31/12/12 4,000 - 334 334 Total 4,610 568 376 944 Switzerland The Irrigated Rice Research Consortium – Phase III 01/01/05-28/02/09 Management Team 01/01/05-28/02/09 1,470 1,391 79 1,470 Productivity Workgroup 01/01/05-28/02/09 402 398 4 402 Water Saving Workgroup 01/01/05-28/02/09 356 344 12 356 Labor Productivity Workgroup 01/01/05-28/02/09 356 348 8 356 Post Production Workgroup 01/01/05-28/02/09 353 342 11 353 The Irrigated Rice Research Consortium - Phase IV Labor Productivity and Community Ecology Work Group 01/01/09-31/12/12 701 - 112 112 Productivity Workgroup 01/01/09-31/12/12 425 - 48 48 Management Team 01/01/09-31/12/12 2,261 - 399 399 Water Saving Workgroup 01/01/09-31/12/12 746 - 151 151 Post Production Workgroup 01/01/09-31/12/12 143 - 23 23 Crop Health 01/01/09-31/12/12 212 - 51 51 Northern Uplands Rice Based Farming Systems Research (NURiFaR) Project 01/11/08-30/09/12 473 - 74 74 Healthy Rice for Healthy People: Zinc Biofortification of Rice through Environmentally Targeted Germplasm Development and Zinc Management 24/08/09-23/08/11 170 - 11 11 Total 8,068 2,823 983 3,806 Forward - 21 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total Syngenta Syngenta Foundation - Improving Guidelines for Testing and Release of Breeding Lines and Marker- Aided Selection (MAS) Products 22/06/09-31/12/09 60 - 60 60 United Kingdom/DFID Poverty Alleviation Through Rice Innovation Systems 01/03/08-01/02/11 586 57 79 136 Characterizing Genetic and Soil Induced Variation in Arsenic Uptake, Translocation and Metabolism in Rice to Mitigate Arsenic Contamination in Asia 01/01/08-31/12/10 26 - 1 1 Philippine Rice Security Under Climate Change: Building an Evidence Base to Inform Governmental Policy Options 01/05/08-31/03/09 9 1 8 9 Cis-Acting Regulatory Elements in the Rice Genome: A Novel Source of Alleles for Rice Breeding (led by NIAB) 01/10/08-30/09/11 159 - 51 51 Total 780 58 139 197 United States of America USAID/RF-Workshop on the Impact on Research and Development of Sui Generis Approaches to Plant Protection of Rice in Developing Countries 01/01/01-31/12/09 35 33 2 35 USDA Identification of genes that control biomass production using rice as a model system (led by Colorado State Univ.) 01/12/08-31/08/11 300 - 26 26 USDA-Support for IRRI's Cereal Systems Initiative in South Asia (CSISA); and Rice Genetics Workshop and Monitoring GHG in Rice Production Areas 09/30/09-01/05/12 130 - 30 30 Research-Driven Rice Intensification in Mozambique: A Model for Sustainable Improvement of Rice Production 09/30/09-09/29/12 900 - 33 33 Revitalizing The Rice-Wheat Cropping Systems Of The Indo-Gangetic Plains: Adaptation And Adoption Of Resource-Conserving Technologies In India, Bangladesh And Nepal (Component 1 Of The Global Development Alliance) 01/10/07-30/04/09 475 439 36 475 Modeling the Impacts of BT Transgene Flow on Lepidopteran Food Web Structure and Stability on Wild Rice in Vietnam (Led by CLRRI - Under Program for Biosafety System BBI) 01/01/07-31/05/10 129 90 36 126 Advanced Breeding and Deployment of Abiotic Stress Tolerant Rice & Wheat and Expansion of Hybrid Rice 01/10/07-30/04/09 150 110 51 161 USAID Asia Bureau CSISA Objective 3 01/10/08-30/09/09 150 - 92 92 The Development of Adapted Germplasm for India with High Levels of Pro Vitamins Carotenoids 01/01/05-31/12/09 385 273 112 385 USAID Famine Fund-Accelerating Adoption of Resource Conserving Technologies in South Asia Under the Umbrella of Cereal System Initiative for South Asia 01/08/08-30/09/11 2,131 133 805 938 Development of Rice Biotechnology Products for Asia: Technical and Pre-regulatory Components 01/01/05-30/09/09 2,580 1,730 850 2,580 Total 7,365 2,808 2,073 4,881 World Bank Rice Wheat Consortium - SWEP 01/01/08-31/03/09 270 196 73 269 Rice Wheat Consortium - SWEP Year 2 01/01/09-31/12/09 270 - 185 185 Total 540 196 258 454 World Vision World Vision, Inc.-Partnership for Innovation and Knowledge in Agriculture (PIKA) in India 01/10/08-30/09/10 209 - 87 87 Forward - 22 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total Others Univ. of Sydney-Molecular Marker Technologies for Faster Wheat Breeding in India 26/06/08-30/04/12 139 14 11 25 Bayer – Development of ICIS 01/01/07-31/12/09 53 39 6 45 CARE-Burundi New approaches to Support Women Ex-combatants and Women Rice Producers for Economic and Social Empowerment 15/07/09-31/12/10 250 - 93 93 Ecological Based Participatory IPM for Southeast Asia (Led by Clemson University - IPM-CRSP) 01/10/05-30/09/09 64 46 17 63 FOSS - Improving the Capacity of Indica Rice- Breeding Programs to Measure the Traits of Physical Quality of Grain 01/01/08-31/12/09 20 12 9 21 National Graduate Institute for Policy Studies (GRIPS) - Mozambique Survey (Collect and Analyze the Household-Level Data with the Aim of Understanding the Determinants of Income with 01/03/09- Particular Focus on Rice Farming Activities) 15/03//09 9 - 9 9 Total 535 111 145 256 Subtotal 124,565 31,977 32,384 64,361 B. Challenge Programs Water and Food Theme I Leadership 01/11/02-31/12/09 320 243 65 308 Rice Landscape Management for Raising Water Productivity, Conserving Resources, and Improving Livelihoods in Upper Catchments of the Mekong and Red River Basins (PN#11) 01/11/05-30/04/10 910 529 180 709 Total 1,230 772 245 1,017 Generation Identifying Genes Responsible for Failure of Grain Formation in Rice and Wheat Under Drought 01/01/05-30/06/09 900 814 86 900 Drought Tolerant Rice Cultivars for North China and South/Southeast Asia by Highly Efficient Pyramiding of QTLs from Diverse Origins 01/01/05-31/12/08 317 317 19 336 Targeting Drought-Avoidance Root Traits to Enhance Rice Productivity Under Water-Limited Environments 01/11/08-31/10/11 900 2 227 229 Speeding the Development of Salt Tolerant Rice Varieties through Marker Assisted Selection and their Dissemination in Salt Affected Areas of Bangladesh 01/01/08-31/12/09 225 129 99 228 Delayed Senescence and Drought Tolerance in Rice 11/01/08-30/09/11 374 - 28 28 Connecting Performance Under Drought with Genotypes Through Phenotype Associations 01/01/08-31/12/10 267 101 54 155 Detecting and Fine-Mapping QTLs with Major Effects on Rice Yield under Drought Stress for Deployment via Marker Aided Breeding 01/08/07-31/07/10 599 216 117 333 Drought from Different Perspective: Improved Tolerance through Phosphorus Acquisition 01/11/08-31/10/11 900 13 250 263 Application and Validation of the Major QTL Phosphate Uptake 1 (Pup1) 01/01/08-31/12/09 81 8 22 30 Application and Validation of the Major QTL Phosphate Uptake 1 (Pup1) Year 2 01/01/08-31/12/09 97 49 73 122 Forward - 23 - Exhibit 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) GRANT PERIOD Grant EXPENDITURES Donors and program/project (DD/MM/YY) Pledged Prior Years 2009 Total Developing and Disseminating Resilient and Productive Rice Varieties for Drought-Prone Environments in India 01/03/05-28/02/09 120 98 22 120 Population development to underpin gene discovery and allele validation in rice: the Multiparent Advanced Generation Inter-Crosses (MAGIC) 01/01/08-31/12/09 113 56 47 103 Validation of Drought-Response/Resistance Pathway Genes by Phenotypic Analysis of Mutants - Year 1 01/08/08-31/07/09 65 65 4 69 Transcriptome Analysis of Near-Isogenic Rice Lines to Identify Expression Signatures and Gene Combinations Conferring Stress Tolerance 01/01/08-31/12/09 73 67 (2) 65 Transcriptome Analysis of Near-Isogenic Rice Lines to Identify Expression Signatures and Gene Combinations Conferring Stress Tolerance 01/01/08-31/12/09 120 73 36 109 Provision of Genotyping Support Services 07/03/08-06/03/09 12 9 3 12 Large Scale Phylogenomic Analyses to Gene Function Prediction for GCP Crops 01/01/08-31/12/09 97 73 19 92 Next Generation Sequencing Data - Data Analysis Support 01/01/09-31/12/09 6 - 6 6 GCP Quality Management and Data Quality Improvement 01/01/08-30/06/09 46 27 35 62 Development of Data Standards & Community of Practice Enabling Capture of and Access to GCP Quality Data Sets 01/01/09-31/12/09 29 130 28 158 A Molecular Breeding Platform 15/09/09-30/06/11 571 52 32 84 A Molecular Breeding Platform () 15/07/09-15/07/14 964 56 65 121 Development of Tools and Technology to Increase the Functionality of the GCP Information Platform 01/01/08-31/12/09 81 81 (17) 64 Development of an Integrated GCP Platform 01/01/09-31/12/09 144 - 144 144 Total 7,101 2,436 1,397 3,833 Harvest Plus Biofortified Crops for Improved Human Nutrition 01/01/03-31/12/09 2,203 1,960 182 2,142 Development of High-Zinc Rice for Bangladesh & Eastern India Ph2 01/01/09-31/12/09 490 - 361 361 Rice Partnership Bangladesh (Harvest Plus Phase II) Agreement 7204 01/07/09-31/12/09 20 - 20 20 Rice Partnership Bangladesh (Harvest Plus Phase II) 01/01/09-31/12/09 124 - 51 51 Total 2,837 1,960 614 2,574 Subtotal 11,168 5,168 2,256 7,424 Grand Total 135,733 37,145 34,640 71,785 - 24 - Exhibit 3 INTERNATIONAL RICE RESEARCH INSTITUTE DETAILS OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) Research Support & Management and General Research Programs Operations Sub-total Administration Total 2008 Unrestricted Personnel costs 4,230 2,459 6,689 2,971 9,660 9,354 Supplies & services 2,905 167 3,072 2,631 5,703 5,835 Collaborator/Partners 354 - 354 - 354 14 Operational travel 627 115 742 320 1,062 1,021 Depreciation 766 704 1,470 531 2,001 2,151 Total operating expenses 8,882 3,445 12,327 6,453 18,780 18,375 Recovery of indirect cost - - - (3,283) (3,283) (2,782) Subtotal 8,882 3,445 12,327 3,170 15,497 15,593 Restricted Temporary Personnel costs 9,252 - 9,252 49 9,301 7,350 Supplies & services 9,670 126 9,796 59 9,855 7,998 Collaborator/Partners 9,662 - 9,662 - 9,662 4,035 Operational travel 2,349 41 2,390 77 2,467 2,069 Depreciation 1,097 2 1,099 - 1,099 349 Subtotal 32,030 169 32,199 185 32,384 21,801 Challenge Programs Personnel costs 641 - 641 - 641 755 Supplies & services 753 - 753 - 753 1,023 Collaborator/Partners 555 - 555 - 555 640 Operational travel 294 - 294 - 294 353 Depreciation 13 - 13 - 13 25 Subtotal 2,256 - 2,256 - 2,256 2,796 Total restricted 34,286 169 34,455 185 34,640 24,597 Grand Total 43,168 3,614 46,782 3,355 50,137 40,190 Personnel costs 14,123 2,459 16,582 3,020 19,602 17,459 Supplies and services 13,328 293 13,621 2,690 16,311 14,856 Collaborator/Partners 10,571 - 10,571 - 10,571 4,689 Operational travel 3,270 156 3,426 397 3,823 3,443 Depreciation 1,876 706 2,582 531 3,113 2,525 Subtotal 43,168 3,614 46,782 6,638 53,420 42,972 Recovery of indirect cost - - - (3,283) (3,283) (2,782) Grand Total 43,168 3,614 46,782 3,355 50,137 40,190 - 25 - Exhibit 4 INTERNATIONAL RICE RESEARCH INSTITUTE INDIRECT COST CALCULATION FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand US Dollars) 2009 2008 Direct Operating Expenses Research 43,175 32,340 Research support 3,116 3,168 Operations 1,590 1,733 Subtotal 47,881 37,241 Less: Overhead recovery 3,283 2,782 Total 44,598 34,459 Indirect Operating Expenses Management 3,224 3,218 Common sustenance services 2,315 2,513 Total 5,539 5,731 Total Operating Expenses 50,137 40,190 Cost Ratios Direct/Total 88.95% 85.74% Indirect/Total 11.05% 14.26% Indirect/Direct 12.42% 16.63% - 26 - Exhibit 5 INTERNATIONAL RICE RESEARCH INSTITUTE EUROPEAN COMMUNITY FUNDING STATEMENT OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2009 (With Comparative Figures for 2008) (All amounts in thousand) Expenditures Grant Pledged 2009 2008 Total Balance In In In In In In In In In In Programme Grant period EUR USD EUR USD EUR USD EUR USD EUR USD Raising Productivity in Rainfed Environments 01/01/08-31/12/10 1,957 2,719 728 974 501 69 1,229 1,672 728 1,047 Sustaining Productivity in Intensive Rice- Based System 01/01/08-31/12/10 455 635 - - 455 63 455 635 - - Total 2,412 3,354 728 974 956 1,333 1,684 2,307 728 1,047 - 27 - Exhibit 6 INTERNATIONAL RICE RESEARCH INSTITUTE GERMANY UNRESTRICTED CONTRIBUTION CONTRACT NO. 81116609; PROJECT NO. 08.7860.3-001.00 STATEMENT OF EXPENDITURES AS OF DECEMBER 31, 2009 (All amounts in thousand) TOTAL Particulars In Euro In USD Program 5. Rice genetic diversity and discovery: Meeting the needs of future generations for rice genetic resources Staff costs 202 295 Operations 121 176 Administrative costs 81 118 Total 404 589 Program 7. Rice policy support and impact assessment for rice research Staff costs 91 133 Operations 54 79 Administrative costs 36 52 Total 181 264 Grand Total 585 853 - 28 -