Audited Financial Statements 
2 0 0 4  
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Science 
for a Better 
Werld 
CORPORATE INFORMATION 
Board of Trustees Headquarters 
Ex-officio Members College, Los BaAos, 4031 Laguna, 
Philippines 
Dr. Francisco Nemenzo Tel: (63-2) 580-5600; 845-0563 
(President, University of the Philippines) (63-49) 536-2701 to 2705 
+ I  (650) 833-6620 (USA Direct) 
Mr. Arthur C. Yap Fax: (63-2) 580-5699; 891- 12 92 
(Secretary, Philippine Department of + I  (650) 833-6621 (USA Direct) 
Ag ricuI t u re) 
Email: irri@cniar.org 
Dr. William G. Padolina Web: www.irri.org 
(Acting Director General, IRRI) 
IRRl Makati Office 
Members-at-larae 
I O *  Floor, Suite 1009 
Dr. Shigemi Akita Condominium Center 
Or. EA. Siddiq 6776 Ayala Avenue, Makati City 
Mr. Fazle Hasan Abed 1226 Philippines 
Dr. Kay Beese Tel: (63-2) 891-1236; 891-1303 
Dr. Achmad Mudzakkir Fagi Fax: (63-2) 891-1 174 
Dr. Eun-Jong Lee 
Dr. Keijiro Otsuka External Auditors 
Prof. Baowen Zhang 
Prof. Ruth K. Oniang’o Joaquin Cunanan & Co. 
Dr. Ronald L. Phillips A member firm of 
Prof. Elizabeth Jean Woods PricewaterhouseCoop ers 
Dr. Ralph Anthony Fischer 
Dr. William G. Padolina 
Secretary to the Board 
Mr. Kwame Akuffo-Akoto 
Treasurer to the Board 
FINANCE AND AUDIT COMMITTEE 
Membership 
The Finance and Audit Committee is Any person so elected by the 
composed of seven Trustees who are Committee serves only until the next 
appointed by the Board. Its duty is to meeting of the Board. 
review and audit, from time to time, the 
accounts and financial condition as well 
as the management and ‘operating Authority 
systems and procedures of the Institute. The Finance and Audit Committee is 
It also reviews periodically the Institute’s authorized to investigate any activity of 
guidelines and procedures pertaining to the Institute within its terms of 
human resources development, finance reference and all employees shall be 
and budget, and other administrative directed to cooperate with any request 
matters, and exercises the powers and made by the Committee. The 
performs the duties delegated to it by the Committee shall be empowered to 
Board. For the Institute’s audit and retain persons having special 
accounts, the Committee discharges its competence as necessary to assist 
functions in consultation and coordination the Committee in fulfilling its 
with the external auditors, the internal responsibilities. 
auditors, and appropriate consultants of 
the Institute. 
Current Composition and 
The Chairperson of the Finance and Audit Designation of Finance and Audit 
Committee, who is customarily appointed Committee 
by the Board at the time when the Board 
appoints members of the Committee, Mr. Fazle Hasan Abed - Chairperson 
shall preside over all meetings of said Dr. Kay Beese - Vice Chairperson 
Committee. In hidher absence or Prof. Ruth Oniang’o - Member 
disability, the Vice Chairperson shall act Dr. Keijiro Otsuka - Member 
as the Chairperson for that meeting. Dr. Ronald Phillips - Member 
Prof. Baowen Zhang - Member 
The Finance and Audit Committee shall 
meet at least once a year. Special Dr. Ronald P. Cantrell 
meetings may be held upon call by its (Director General) / 
Chairman or upon request of at least one Dr. William G. Padolina 
member. A vacancy in the Finance and (Acting Director General) 
Audit Committee is filled from among Members 
other members of the Board through (Finance only, does not participate 
election by the Board or election by the in Audit Section of the 
remaining members of the Finance and Committee’s deliberation) 
Audit Committee. 
STATEMENT BY THE BOARD CHAIR 
The year ended 31 December 2004 has Grain Quality and Nutrition 
been a very exciting one for IRRI. These Research Center 
are the significant highlights: IRRl officially opened its new Grain 
Quality and Nutrition Research Center 
International Year of Rice (GQNRC) on 15 December 2004. 
The 2004 International Year of Rice (IYR) 
afforded IRRl and its staff a unique The GQNRC will contribute to IRRl's 
opportunity to emphasize the importance objectives of releasing rice varieties of 
of rice production and research to a superior visual, sensory, and 
worldwide audience. From the first nutritional quality by evaluating 
celebration of the IYR at the ASEAN breeder lines, conducting relevant 
Secretariat in Jakarta on 13 January to research, collaborating with other 
the official launching at the World Rice research groups, and training other 
Research Conference (WRRC) in NARES in the best, newest, and most 
Tsukuba, Japan, 4-7 November, IRRl efficient and cost-effective methods of 
staff members traveled the globe to evaluating rice quality and nutrition. 
proclaim that "rice is life" and to mobilize 
the international community to face the Director General Transition 
most pressing issues confronting the During the April meeting, Dr. R.P. 
global rice sector, from local farming Cantrell notified the Board of his 
practices to international trade. resignation as Director General 
effective 31 December 2004. The 
External Program Management Review Board accepted his resignation and 
(EPMR) set in motion the process to recruit his 
The sixth External Program and successor to be in place in the first 
Management Review of the Institute was quarter of 2005. 
conducted during the year. The overall 
conclusion of the review was a very IR RI- C IM MYT AI I iance 
strong and favorable endorsement of our Led by the Working Group organized 
work while indicating that some research by the Rockefeller Foundation, 
areas might need some fine-tuning. consultations and discussions were 
conducted throughout the year on the 
The Board responded to the formation of an alliance between IRRl 
recommendations of the report, which and CIMMYT. The findings of the 
was approved by the CGIAR members at Working Group were submitted to an 
AGM 2004 in Mexico City. Oversight Committee also appointed 
by the Rockefeller Foundation. 
experiences will be invaluable to the 
The recommendations of the oversight Institute. 
committee on the feasibility and nature of 
an alliance were issued in November Appreciation 
2004. The Board, management and staff On behalf of the Board of Trustees, I 
have reviewed the recommendations. would like to thank the management 
The two Center Boards will meet in a joint and staff for their dedication and 
section in January of 2005 to discuss the perseverance in facing the challenges 
recommendations and make decisions during the year under review. We 
on the way forward. would like also to put on record our 
appreciation of our donors and 
Financial Status investors and CGIAR partners for their 
The Institute continues to grow in continued support and cooperation. 
financial stability with sound fiscal 
management. Revenue for 2004 
amounted to $36.7 million (inclusive of 
$1.5 million 'unrealized foreign exchange 
translation gain) against expenditure of 
$33.2 million, resulting in a surplus of hDr. Ke=ijiro OtsQuka G 
$3.5 million for the year. The Institute's Chairperson, Board of Trustees 
net assets at the end of 2004 amounted 
to $50.6 million, with liquidity and 
operational reserve levels above the 
CGIAR-recommended ranges. 
Board of Trustees 
The IRRl Board of Trustees met on two 
occasions in 2004. I would like to express 
my sincere best wishes to Dr. Calvin 
Qualset and Dr. Emmanuel Adilson S. 
Serrao who left the Board during the 
year. The Institute benefited from their 
hard work and dedication. Dr. Elizabeth 
Jean Woods and Dr. Ralph Anthony 
Fischer were also elected as new 
members of the Board. Upon the 
retirement of Dr. Francisco Nemenzo as 
President of the University of the 
Philippines in 2005, we shall expect his 
successor to serve in an ex-officio 
capacity. I am certain that their vast 
MANAGEMENT STATEMENT OF RESPONSIBILITY 
FOR FINANCIAL REPORTING 
The accompanying financial statements of the International Rice Research Institute 
(IRRI) for the year ended December 31,2004 and 2003 are the responsibility of 
management. IRRl management also claims responsibility for the substance and 
objectivity of the information contained therein. 
Our financial reporting practices follows the “Accounting Policies and Reporting 
Practices Manual - Financial Guidelines Series No. 2” of the CGIAR. IRRl maintains 
a system of internal control designed to provide reasonable assurance that assets 
are safeguarded and transactions are properly recorded and executed in accordance 
with management’s authorization. 
A system of reporting within the Institute present the management with an accurate 
view of the operations, enabling us to discern risks to our assets or fluctuations in the 
economic environment of the Institute at an early stage and at the same time 
providing a reliable basis for the financial statements and management reports. 
The Board of Trustees exercises its responsibility for these financial statements 
through its Finance and Audit Committee. The Committee meets regularly with 
management and representatives of the external auditors to review matters relating to 
financial reporting, internal controls, and auditing. 
L 
Acting Director General &ar of Finance 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
FINANCIAL STATEMENTS 
AND SUPPLEMENTARY SCHEDULES 
AS OF AND FOR THE YEAR ENDED 
DECEMBER 31,2004 
(With comparative figures as of and for the year ended 
December 31,2003) 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
AS OF AND FOR THE YEAR ENDED DECEMBER 31,2004 
(With comparative figures for the year ended December 31,2003) 
TABLE OF CONTENTS 
Pane/s 
Report of Independent Auditors 1 - 2  
Statement of Financial Position 3 
Statement of Activities 4 
Statement of Changes in Net Assets 5 
Statement of Cash Flows 6 
Notes to Financial Statements 7 - 1 8  
Schedule of Grant Revenue Exhibit 1 
Schedule of Temporarily Restricted Agenda and Challenge 
Programs Fundings Exhibit 2 
Details of Operating Expenses Exhibit 3 
Calculation of Indirect Cost Rate Exhibit 4 
PricewaterhouseCoopers 
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Telephone + 63 (2) 845 2728 
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Report of Independent Auditors 
To the Board of Trustees of 
International Rice Research Institute 
We have audited the accompanying statement of financial position of the 
International Rice Research Institute (a nonstock, nonprofit organization) as of . 
December 31, 2004,a nd the related statements of activities, changes in net assets 
and cash flows for the year then ended. These financial statements and the 
supplementary schedules referred to below are the responsibility of the Institute’s 
management. Our responsibility is to express an opinion on these financial 
statements and supplementary schedules based on our audit. The financial 
statements of the Institute as of and for the year ended December 31,2003w ere 
audited by other auditors whose report dated April 2,2004e xpressed an unqualified 
opinion on those statements. 
We conducted our audit in accordance with International Standards on Auditing. 
Those standards require that we plan and perform the audit to obtain reasonable 
assurance about whether the financial statements are free of material misstatement. 
An audit includes examining, on a test basis, evidence supporting the amounts and 
disclosures in the financial statements. An audit also includes assessing the 
accounting principles used and significant estimates made by management, as well 
as evaluating the overall financial statement presentation. We believe that our audit 
provides a reasonable basis for our opinion. 
As explained in Note 2 to the financial statements, the Institute’s financial statements 
are prepared on the basis of accounting practices prescribed for international 
agricultural research centers under the auspices of the Consultative Group on 
International Agricultural Research (CGIAR). 
In our opinion, the financial statements referred to above present fairly, in all material 
respects, the financial position of the International Rice Research Institute (a 
nonstock, nonprofit organization) as of December 31,2 004, and the result of its 
activities and its cash flows for the year then ended in conformity with the CGIAR 
guidelines. 
Our audit was made for the purpose of forming an opinion on the basic financial 
statements taken as a whole. The supplementary schedules of grant revenue, 
temporarily restricted agenda and challenge programs fundings, operating expenses 
and the calculation of indirect cost rate for the year ended December 31, 2004 are 
presented for purposes of additional analysis and are not a required 'part of the basic 
financial statements. The information in such supplementary schedules 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. 
Makati City, Philippines 
April 1,2005 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
STATEMENT OF FINANCIAL POSITION 
DECEMBER 31 , 2004 
(In Thousands of US Dollars) 
With comparative figures as of December 31, 2003 
Notes 2004 2003 
A S S E T S  
CURRENT ASSETS 
Cash and cash equivalents 3 35,035 28,815 
Short term investments 4 2,836 3,980 
Accounts receivable - net 
Donors 5 4,244 8,459 
Employees 116 255 
Other CGIAR Centers 163 450 
Others 6 71 3 834 
Inventories - net 7 382 364 
Prepaid expenses 172 340 
Total current assets 43,66 1 43,497 
NONCURRENT ASSETS 
Property and equipment - net a 9,127 8,491 
Other assets 9 10,196 8,817 
Total non-current assets 19,323 17,308 
Total assets 62,984 60,805 
LIABILITIES AND NET ASSETS 
CURRENT LIABILITIES 
Accounts payable 
Donors 10 5,068 6,818 
Other CGIAR Centers 160 77 
Others 11 997 1,543 
Accruals and provisions 12 6,122 5,596 
Total current liabilities 12,347 14,034 
NET ASSETS 14 
Undesignated 2,189 10,010 
Designated 48,448 36,761 
50.637 46.771 
Total liabilities and net assets 62,984 60,805 
(See accompanying notes to financial statements) 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
STATEMENT OF ACTIVITIES 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
2004 
Temporarily Challenge 
Notes Unrestricted Restricted Sub-total Programs Total 2003 
REVENUES 
Grants (exhibit 1) 14,779 15,980 30.759 1,877 32,636 27,125 
Other revenues 16 2.540 2.540 2,540 2,565 
17,319 15,980 33,299 1.877 35.176 29,690 
OPERATING EXPENSES 
Program-related (exhibit 3) 9,864 15.486 25.350 1,877 27.227 23,667 
Management and general 
(exhibit 3) 7.399 494 7,893 7,893 6,725 
17.263 15.980 33,243 1.877 35.1 20 30,392 
Recovery of indirect costs (1,906) (1,906) (1,906) (1,715) 
15.357 15,980 31,337 1,877 33,214 28,677 
NET SURPLUS FROM ORDINARY 
ACTIVITIES 1,962 1,962 1,962 1,013 
UNREALIZED FOREIGN 
EXCHANGE 
TRANSLATION GAIN 1,532 1,532 1,532 2,264 
NET SURPLUS 3,494 3,494 3,494 3,277 
P 
MEMO ITEMS 
Operating expenses - by natural classification: 
Personnel costs 6,402 6,049 12.451 466 12,917 12,795 
Supplies, services and others 7,371 5,081 12.452 672 13,124 10,306 
Colla boratorslPartners 723 3,303 4.026 563 4,589 2,086 
Operational travel 858 1,192 2.050 176 2.226 3,022 
Depreciation 1,909 355 2.264 2.264 2,183 
Recovery of indirect costs (1,906) (1,906) (1,906) (1,715) 
15.357 15,980 31,337 1.877 33,214 28,677 
(See accompanying notes to financial statements) 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
STATEMENT OF CHANGES IN NET ASSETS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
Vested Non-Vested 
Invested Fixed Knowledge Unrealized Total 
In Fixed Assets Staff Pathways Risk FOREX Total Designated Total 
Note Undesignated Assets Acquisition GRCEGD' Separation Initiative Management Translation Non-vested Net assets Net Assets 
Balances. January 1,2003 6,313 8.803 11,949 7,549 6.632 1.778 27,908 36,711 43,024 
Capital reserve replenishment (1,976) 1,976 1,976 
Net surplus (deficit) for the year 3,697 (118) (302) (302) (420) 3.277 
Acquisition of fixed assets 1,782 (1,312) (1,312) 470 470 
Balances, December 31,2003 10,010 8,491 12.613 7,549 6,632 1,476 28.270 36.761 46,771 
Board of Trustees appropriation 14 (10 ,146) 5,160 4.986 10,146 10,146 
Capital reserve replenishment (1,909) 1.909 1,909 
Acquisition of fixed assets 2,633 (2,261) (2.261 1 372 372 
Net surplus (deficit) for the year 2.325 (88) (275) 1,532 1,257 1.169 3,494 
Balances, December 31,2004 2.189 9,127 12,261 
- Genetic Resources Conservation, Evaluation and Gene Discovery (GRCEGD) 
(See accompanying notes to financial statements) 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
STATEMENT OF CASH FLOWS 
FOR THE YEAR ENDED DECEMBER 31 , 2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
CASH FLOWS FROM OPERATING ACTIVITIES 
Excess of revenues over expenses 3,494 3,277 
Adjustments for: 
Depreciation of assets 2,264 2,183 
Provision for decline in value of investment 1 139 
Provision for doubtful accounts - 35 
Interest income (1,706) (1,038) 
Net book value of disposed property and equipment 88 118 
Net operating revenue before working capital changes 4,141 4,714 
(Increase) decrease in: 
Accounts receivable 4,762 (4 ,644) 
Short term investments 1,144 (4,119) 
Inventories (18 ) (35) 
Prepaid expenses 168 (54) 
Increase (decrease) in: 
Accounts payable (2,213 ) 968 
Accruals and provisions 526 (458) 
Cash generated from (absorbed by) operations 8 3 10  (3,628) 
Interest received 1,706 1,038 
Net cash provided by (used in) operating activities 10,216 (2,590) 
CASH FLOWS FROM INVESTING ACTIVITIES 
(Increase) decrease in other assets (1,380) 3,094 
Net movement of fixed assets/acquisition reserve 372 470 
Net acquisition of property and equipment (2,988) (1,989) 
Net cash provided by (used in) investing activities (3,996) 1,575 
NET INCREASE (DECREASE) IN CASH AND CASH 
EQUIVALENTS 6,220 (1 901 5) 
CASH AND CASH EQUIVALENTS 
AT BEGINNING OF YEAR 28,815 29,830 
AT END OF YEAR 35,035 28,815 
(See accompanying notes to financial statements) 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
NOTES TO FINANCIAL STATEMENTS 
AS OF AND FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures as of and for the year ended December 31,2003 
Note 1 - General 
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 conferred the status of an international organization in the 
Philippines under Presidential Decree (PD) No. 1620. 
As a nonstock, nonprofit organization under Republic Act No. 2707 and an 
international organization under PD No. 1620, the Institute was granted, among other 
privileges and prerogatives, the following tax exemptions: 
a. exemption from the payment of gift, franchise, specific, percentage, real property, 
exchange, import, export, documentary stamp, value-added and all other taxes 
provided under existing laws or ordinances. This exemption extends to goods 
imported and owned by the Institute, leased or used by its staff; 
b. exemption from payment of gift tax; all gifts, contributions and donations to the 
Institute are considered allowable deductions for purposes of determining the 
income tax of the donor; and 
c. exemption from payment of income tax of non-Filipino citizens serving on the 
Institute’s technical and scientific staff on salaries and stipends in United States 
(US) dollars received solely from, and by reason of, service rendered to the 
Institute. 
The Institute receives support from various donor agencies and entities primarily 
through the Consultative Group on International Agricultural Research (CGIAR). 
CGIAR is a group of donors composed of governments of various nations and 
international organizations and foundations. 
On May 19, 1995, an international agreement that recognizes the status of the 
Institute as an international organization was signed. The said agreement allows the 
Institute to have a juridical status to more effectively pursue its international 
collaborative activities in rice research and training. 
The Institutes major facilities are located in Los Baiios, Laguna, Philippines. In 
addition, the Institute owns an administrative office in Makati City, Philippines. 
The accompanying financial statements and supplementary schedules of the Institute 
were approved and authorized for issue by the Board of Trustees on April 1,2005. 
Note 2 - Sianificant accountina policies 
Basis of financial statements 
The accompanying 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) under the auspices of the CGIAR. 
Revenue recorrnition 
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. 
Restricted grants and challenge program are grants received in support of specified 
projects or activities mutually agreed upon by the Institute and donors, and labeled as 
permanently or temporarily restricted. 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” 
account in the statement of financial position. 
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. 
(8)  
Grants in kind are recorded at the fair value of the assets received while cash grants 
are recorded at its US dollar equivalent. 
Expense recoqnition 
Expenses are recognized when a decrease in future economic benefit related to a 
decrease in an asset or an increase in a liability has arisen that can be measured 
reliably. Expenses are recognized on the basis of a direct association between the 
costs incurred and the earning of specific items of revenue. 
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 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. 
Short term investments 
These consists of investments that are (a) acquired with original maturities 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 of the balance sheet 
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 debt 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. 
Inventories 
Inventories are stated at the lower of cost or net realizable value. 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. 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. 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: 
Estimated life in 
Category description years 
Physical facilities 
Building and improvements 60 
Infrastructure 
Site improvements 25 
Furnishing and equipment 
Farming 
Farm machinery and equipment 7-10  
Shop machinery and equipment 7-10  
Laboratory 5-1 0 
Office 5-1 0 
Auxiliary units 5-10  
Vehicles 4-7 
Depreciation is charged in 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. 
Lonq term investments 
Investments are initially recorded at their acquisition cost if they are purchased and at 
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. 
Investments acquired with the intention of keeping the same for more than a year 
from the acquisition date are classified as long term investment. 
(10) 
Accru aI s 
Accruals represent liabilities to pay for goods or services that have been received, 
supplied, invoiced or formally agreed with suppliers. 
Provisions 
Provisions are recognized when the Institute has a present legal or constructive 
obligation as a result of past events, it is probable that an oufflow of resources will be 
required to settle the obligation, and a reliable estimate of the amount can be made. 
Foreinn 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. 
Nationally Recruited Staff (NRS) Provident Fund 
The Institute maintains a noncontributory provident fund for the benefit of its 
nationally recruited staff. Monthly contribution to the fund is computed at 10.5% of an 
employee’s monthly basic salary. The fund provides for lump-sum payment to 
qualified employees/members, upon their separation from the Institute, under certain 
conditions. 
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 core projects. For restricted projects, 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 No. 5. 
Subseauent events 
Post-year-end events that provide additional information about the Institute’s situation 
at the statement of financial position 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. 
Note 3 - Cash and cash equivalents 
This account consists of: 
2004 2003 
Cash on hand and in banks 9,584 5,401 
Cash equivalents 25,451 23,414 
35,035 28,815 
Note 4 - Short term investments 
This account consists of: 
2004 2003 
With original maturities of more than 3 months 
but less than one year 1,336 - 
Long term investments due to mature within one 
year 1,500 5,641 
Allowance for decline in value - (1,661) 
1,500 3,980 
2,836 3,980 
As of December 31, 2004 a callable principal protected note (PPN) with a bank, 
originally acquired in 1999 is due to mature in April 2005. 
The balance at December 2003, consists of two long term investments which 
matured in 2004, i.e. (a) a three-year commercial bond US$1,980 thousand; and (b) 
a callable PPN with purchase cost of US$2,000 thousand. 
Note 5 - Accounts receivable - donors 
This account consists of outstanding approved unrestricted grants and expenses not 
yet reimbursed on account of restricted and challenge programs projects. 
2004 2003 
Unrestricted 1,308 3,739 
Restricted 2,993 4,805 
Challenge programs 146 144 
4,447 8,688 
Allowance for doubtful accounts (203) (229) 
4,244 8,459 
I 
Note 6 - Accounts receivable - others 
This account consists of: 
2004 2003 
Advances to suppliers 627 746 
Others 111 123 
738 869 
Allowance for doubtful accounts (25) (35) 
713 834 
c 
Note 7 - Inventories 
This account consists of: 
2004 2003 
Spare parts 607 606 
Supplies and other inventories 239 222 
846 828 
Allowance for obsolescence (464) (464) 
382 364 
Note 8 - Property and equipment 
This account consists of: 
Furnishing 
Physical Infrastructure and 
facilities and leasehold equipment Total 
At December 31,2003 
cost 123 657 33,048 33,828 
Accumulated depreciation (22) (18 7) (25,128) (25,337) 
Net book value 101 470 7,920 8,491 
Year ended December 31,2004 
Opening net book value 101 470 7,920 8,491 
cost 
Additions - 2,988 2,988 
Disposal - (1,357) (1,357) 
Accumulated Depreciation 
Depreciation expense for the year (2) 
DisDosal - (18 ) (2,244) (2,264) 
1,269 1.269 
Closing net book value 99 452 8,576 9,127 
At December 31,2004 
cost 123 657 34,679 35,459 
Accumulated depreciation (24) (205) , (26.1 03) (26,332) 
Net book value 99 . 452 8,576 9,12-7  
Assets purchased through the use of restricted grants are reported as part of Institute 
assets but are depreciated 100% in the year of purchase. The total of said assets 
amounted to US$4,834 thousand and US$4,845 thousand in 2004 and 2003, 
respectively. 
Depreciation expense amounted to US$2,264 thousand and US$2,183 thousand in 
2004 and 2003, respectively. 
Note 9 - Other assets 
This account consists of: 
2004 2003 
Long term investments 10,190 8,811 
Refundable deposits 6 6 
10.196 8.81 7 
As of December 31, 2004, long term investments consist of four (4) instruments of 
varying amounts held in custody by three (3) financial institutions. 
Note 10 - Accounts payable - donors 
This account consists of grants received in advance applicable to succeeding years. 
2004 2003 
Unrestricted 841 1,312 
Restricted 3,903 5,451 
Challenge programs 324 55 
5,068 6,818 
Note I 1 -  Accounts payable - others 
This account consists mainly of accrued project scientists' allowances and benefits, 
and training charges of research fellows and trainees, such as stipend, board and 
lodging and other direct expenses to be paid by the Institute. This account also 
includes funds provided by donors, which are managed by the Institute, with non- 
CGIAR centers as ultimate beneficiaries. 
Note 12 - Accruals and provisions 
This account consists of: 
2004 2003 
Accruals 
Trade 1,949 1,667 
Capital projects 125 200 
Others 1,770 1,474 
3,852 3,341 
Provisions 2,270 2,255 
6,122 5,596 
Provisions consist of accumulated leave credits due to internationally and nationally 
recruited staff upon termination of services in addition to repatriation costs of 
internationally recruited staff and unclaimed wages of terminated staff. 
Note 13 - Nationally Recruited Staff (NRS) Provident Fund 
The Institute maintains a noncontributory provident fund for the benefit of its 
nationally recruited staff. The fund is administered by a Retirement Committee with 
the Fund managed by two Trustee Banks based on approved investment guidelines 
as contained in the Trust Agreement. Contributions to the fund amounted to about 
US$291 thousand and US$280 thousand in 2004 and 2003, respectively. 
Note 14 - Net assets 
Desianated 
On April 2, 2004, the Board of Trustees of the Institute approved the designation of 
undesignated net assets amounting to US$8,760 thousand as a risk management 
reserve. 
On April 1, 2005 the Board of Trustees approved the reallocation of US$4,986 
thousand from risk management reserve to unrealized foreign exchange translation 
gains reserve and designated an additional US$1,386 thousand of undesignated net 
assets to the risk management reserve to bring the balance up to an equivalent of 60 
days of operating expenditure. 
Net assets amounting to US$48,448 thousand and US$36,761 thousand as of 
December 31, 2004 and 2003, respectively, have been designated by the Institute’s 
Board of Trustees for certain purposes. 
Undesianated 
Net assets amounting to US$2,189 thousand and US$10,010 thousand as of 
December 31,2004 and 2003, respectively, have not been designated for any 
specific purpose, and is being held in a general reserve. 
Note 15 - Leases 
On September 7,2001 , the Institute renewed its lease agreement for research 
facilities with the University of the Philippines System (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: 
a. The Institute will pay a 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 othetwise 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. 
b. For the duration of the lease, the Institute will also contribute to the cost of 
development and maintenance of the University road network, utilities, other 
infrastructure, health services, sanitary landfill management, security, etc. outside 
the leased land, in the amount of US$12,500 per year. Upon signing of the 
agreement, the first IO-year payment (US$125,000) was paid as a lump-sum, and 
the.remainder will be paid in annual installments starting from the 1l t h  year of the 
lease. 
Pursuant to the Memorandum of Understanding between the Government of the 
Republic of the Philippines and the Institute, all the physical plant, equipment and 
other assets belonging to the Institute shall become the property of the University 
when and if the Institute ceases its operation. 
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. 
The Institute leases land and other properties from third parties for project 
experimental sites with periods ranging from one to five years. 
Note 16 - Other revenues 
This account consists of: 
2004 2003 
Investment income 1,706 1,038 
Realized foreign exchange gain 112 525 
Self-sustaining activities 377 356 
Miscellaneous 345 646 
2,540 2,565 
Note 17 - Indirect cost rate 
The indirect cost recovery rate computed as per the CGIAR Financial Guideline No. 5 
is 21.04% and 21.76% in 2004 and 2003, respectively. The computation of indirect 
cost recovery rate is shown on Exhibit 4. 
Note 18 - Continqencies 
The Institute has certain pending legal lawsuits and disputes. Management, 
however, believes that the ultimate outcome of these lawsuits and disputes will not 
materially affect the Institute’s financial position and the results of its activities. 
Note 19 - Other matters 
Certain accounts in 2003 were reclassified to conform with the 2004 financial 
statements presentation. 
EXHIBIT 1 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF GRANT REVENUE 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
Total Funds Accounts Advance Grant 
DONORS Available Receivable Payment Grant 2003 
UNRESTRICTED AGENDA 
Australia 1,174 (616 ) 558 457 
Belgium 98 98 106 
Canada 812  274 1,086 76 1 
China 0 140 140 130 
Denmark 458 458 597 
Germany 301 301 292 
Japan 2,862 2,862 2,672 
Korea 15 0 150 150 
Netherlands 634 (225) 409 367 
Norway 294 294 208 
Philippines 59 '31  90 99 
Sweden 269 288 557 460 
Switzerland 316 316 29 1 
Thailand 58 58 26 
United Kingdom 2,007 2,007 
United States 3,155 575 3,730 3,120 
Vietnam 15 15 15 
World Bank 1,650 1,650 1,750 
SUb -total 14,312 1,308 (841) 14,779 11,501 
TEMPORARILY RESTRICTED 
Asian Development Bank (ADB) 299 264 563 272 
Australia 332 (72) 260 181 
Brazil 5 5 
Canada 128 (17) 111 63 
European Commission 382 1,812 (222) 1,972 1,937 
France 728 728 748 
Food and Agricultural Organization 
of the United States (FAO) 122 122 23 
Germany 1,423 (406) 1,017 789 
Graduate Institute for Policy Studies (GRIPS) 21 21 4 
Grain Biotech Australia (GBA) 20 (19 ) 1 
HTSPE Limited 8 a 
EXHIBIT 1 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF GRANT REVENUE 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
Total Funds Accounts Advance Grant 
DONORS Available Receivable Payment Grant 2003 
InternationalD evelopment 
Research Centre (IDRC) 15 9 
InternationalF und for 
Agricultural Development (IFAD) 579 547 298 
InternationalF ertilizer Industry Association (IFA)/ 
Potash and Phosphate Institute (PPI)/ 
Potash and Phosphate Institute of Canada (PPIC) 21 7 117 91 
Iran 400 102 100 
Japan 1,655 1,337 1,386 
Korea 915 66 572 395 
Monsanto 78 78 - 
Netherlands 0 8 
Nunza BV 36 14 24 
Philippines 47 11 10 
Portugal 0 6 
Rockefeller Foundation (RF) 1,158 717 715 
Spain 25 25 50 
Switzerland 3,038 2,265 2,090 
United Kingdom 3,893 358 4,198 5,043 
United States 
United States Agency for 
International Development 
(USAID) 462 16 475 458 
United States Department 
Of Agriculture (USDA) (199) 360 161 83 
World Bank 926 290 333 
Others 138 6 (40) 104 57 
SUb -total 16,890 2,993 (3,903) 15,980 15,314 
Total Agenda Grants 31,202 4,301 (4,744) 30,759 26,815 
CHALLENGE PROGRAMS 
Water and Food 812 59 (144) 727 228 
Generation 798 47 (105) 740 16 
Harvest Plus 445 40 (75) 410 66 
Total Challenge Programs Grants 2,055 146 (324) 1,877 310 
33,257 4,447 (5,068) 32,636 27,125 
EXHIBIT 2 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF TEMPORARILY RESTRICTED AGENDA 
AND CHALLENGE PROGRAMS FUNDINGS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
Grant Period Grant Expenditures 
D O ~ Man d ProgranWmject (DDIMMNY) Pledged Prioryeam 2004 Total 
TEMPORARILY RESTRICTEDA GENDA 
Asian Dewlopmenf Bank (ADS) 
Sustaining Food Security in Asia through the Developmento f Hybrid Rice Techdogy (Phase 2) 01101102 - 30/08/05 1,000 494 334 828 
Development of Training Course on Water Saving Technologies In Rice Production (under ADB's 
PDA on Water Management Information Dissemination and Extension for IrrigatedA griculture 0111 1/03 - 31/10104 49 48 48 
Integrating and Moblbing Rice Knowledge to Improve and Stablie Crop Productivity to Achieve 
HousehOldF ood Securitv in D i m e a nd Less Favorable Rainfed Areas of Asia oimim - 3iiizoe 900 18 1 181 
1.949 494 563 1,057 
Ausfralia 
Assessment Of CGIAR Supported Rodent Control Project In Vitnam: Adoption and Impacts (a 
consultative Project) 1711 1/03 - 06/02/04 18 9 6 15 
Impacts on Alternative Policy Options on the Agricultural Sector In Vitnam oim7m - 29/01/04 13 6 6 
Growlng Rice wlth Less Water: Increasing Water Productivity in Rice-based Cropping System 01/07/01 30/06105 88 47 27 74 
Impact of migration andlor off-farm employment on roles of women and appropriate technologies 
in Asian and Australian Mied Farming Systems 01/07/04 -30/06/07 378 37 37 
East Timor Seeds of Life 0111 1100 - 30/06/05 43 35 4 39 
Fertiliiahlndependent Formation of Embryo. Endosperm and Pericarp for Apomictic Hybrid 01/07/03 - 30/08/08 1.090 108 186 292 
Increased Productivity of Rice-based Cropping Systems in Lao PDR. Cambodia and Australia 01107mo 30/06105 12 4 4 
Braza IRRI Collaborative Project 01/01/04 - 31\12/04 5 5 5 
Canada 
CGIAR-Canada Linkage Fund-Functional Annotation of Rke Genomic Sequences oim7mi - ~1108104 98 71 27 98 
Developing Efftecient Methods for Detecting Genes Enhanclng Rice Drought Tderance ( CCLF) 0 1 m m  31mm7 118 20 20 
Fund fM Africa oimim - 31/12/04 64 64 64 
280 71 111 182 
European Commlssian 
Coordinating NGO Interventionsf or Improving Small and Marglnal Farmer's HcuseMds. 
Livelihood and Food Secuirty in Bangladesh 01/07/04 - 31/12/08 1.8W 180 160 
Germplasm Conservation. Characterization, Documentationa nd Exchange (Asia) 01/01/04 - 31/12/04 405 405 405 
Functional Genomks (Asia) oimim - 31/12/04 708 706 706 
Germtii Enhancement for Improving Prcducllvii and Human Health in Fragile Environments olm1/04 31/12/04 701 701 701 
France 
Contribution to International Year of Rice o i m m -  3 i ~ m  19 19 19 
IRRllFrance CollabmUve Projects oimim - 31/12/04 709 709 709 
728 728 728 
Food and Agricufure Organization d the United Nations 
The Geographical Distribution of Poverty and Food Security in Bangladesh Implications for the 
Design d P o l i i  and Agricultural RBDBE Interventions 01/04/03 - 3o/08/04 99 23 77 100 
An Interim Assessment of the WFS Target to Reduce Global Undernourishment in Asia (A 
consultancv Service) 10/12/03 - 09106104 45 45 45 
144 23 122 145 
EXHIBIT 2 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF TEMPORARILY RESTRICTED AGENDA 
AND CHALLENGE PROGRAMS FUNDINGS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
Grant Period Grant E x p e n d i i s  
Donor and ProgranVPmiect ( O D I M W  Pledged PriarYears 2004 Total 
Germany 
Food Security and Commericiiliition in Uplands of Northern Vietnam 01110103 - 31/03/05 23 0 0 
Trait and Gene Discovery to Stablee Rice Yields In Drought-Prone Environments oimim - 31112~14 1.442 1.107 335 1,442 
Genetics of Physidogy of Phosphornus Uptake in Rainfed Rice 01/12K)1 - 30/06/05 252 130 69 207 
Applying Gentic Diversity and Genomic Twls to Benefit Rice Farmers at Risk fmm Drought 01/02104 - 31/01/07 645 31 31 
From Genes to Farmers' Fields: Enhancing and Stabahing Productivity of Rice in Submergence 
Prone Environments oimim - ~IHZIOB 893 147 147 
Managing Crop Residues for Healthy Soils in Rice Ecosystem 01104/03 - 30/09/O6 1.437 200 427 707 
~~ ~~ 
Graduate Institute for PaJkyS tudies (GRIPS) 
GRIPS - Central Luzon Loop Survey - Wet Season oiiiirn3 - 31/03/04 15 4 11 15 
GRIPS - Central Luzon Loop Survey - Wet Season o i m w -  3 i / i w  10 10 10 
25 4 21 25 
Grain Biotech Australia 
IRRl Collaborative Project on 'Further Development of the International Crop InformtionS ystem' 01/08x)4 31m7/07 80 1 1 
HTSPE Lirniled 
Innovations in Communkations for Rural Extension Workshop 01/09/04 - 01/06/05 100 0 0 
India 
IRRlllnda Cdlaborative Project 01/01104 - 31/12/04 150 150 150 
International DevelopmentR esearch Center (IDRC) 
Ehkiency Improvement 8 Environment Sustainabli Exploring the Economy of Fertilizer- 
Nitrogen Use of lrrgaled Rice in China 01/01103 - 31/12/05 25 9 9 
Internatha1F und for Agrirutfural Development (IFAD) 
Validation and Delivery of New Technologies for Increasing the Productivity of Flood-prone Lands 
of South and Southeast Asia 01/06/99 - 30/08/04 1. Ooo 009 111 1.000 
Accelerating Technology Adoption to lmpmve Rural L i w l i i i n the Rainfed Eastern Gangetic 
Plains 22/09103-3O/o9/08 1.500 31 437 460 
2.500 920 548 1,460 
lnternathal Fertilizer IndustryA ssociation (IFAypOash end Phosphate Institute (PPI)/ 
PolaSh and Phosphaie Institute of Canada (PPIC) 
IFAlPPlllPl - Reaching Towards Optimum products o i m m i  - 30/08/05 432 224 117 341 
/ran 
Scientifc 8 Technical Cooperation between IRAN 8 IRRl oimim - 31/12/05 1.150 750 102 052 
Japan 
Germplasm Canservation. Characterization, Documentation and Exchange : 01101104 - 31/12/04 200 200 200 
Rice and BioferWiier Genetic Resources Conserved and Characterized 
FUWtihd GeMmiCS oirnim - 3 i ~ m  200 200 200 
Genetic Enhancement for Yield, Grain Quality. and Stress Resistance oimim - 3 1 1 i m  200 200 200 
Managing Resources under lntensifiid Rice-Bared Systems oimim - 3 1 1 i m  200 200 200 
EXHIBIT 2 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF TEMPORARILY RESTRICTED AGENDA 
AND CHALLENGE PROGRAMS FUNDINGS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
GnntPeriod Grant ExDenditures 
Donor and PmgramlProject (DDIMMMY] pledged PriorYean 2004 Total 
Genetic Enhancement for Improving Productivity and Human Health in Fragile Environments: 01m1m 31/12/04 100 100 100 
Superior Germplasm Developed for Rainfed Lowlands 
Superior Germplasm Developed for Flood-Prone and Infertile Lowlands 
Superior Germplasm Developed for Infertile Uplands 
Aerobic Rice Germplasm Developed for Water-Scarce Tropical Environment 
Natural Resource Management for Rainfed and Upland Riee Ecosystems Activities o1mim.i - 31/12/04 100 100 100 
Enhancing Ecological Sustainabrii and Improving Livelihoods through Ecugical Approaches to 
Integrated Natural 
Resources Management oimim - 31/12/04 100 100 100 
The Ecoregional Concept for INRM Adopted and Systems Appmaches Applied for Improving 
Livelihoods and Sustaining Natural Resources 
Development of Integrated Rice Cultivation System Under Water Saving Conditions 01Il0104 - 30/09MO 1.699 23 23 
Physio Genetic Studies on yield Determination and Ecological Adaptablity for Sustalnable Rice 
Culture (MAFF) 01/10189- 30/09/04 1.607 1.474 213 1.687 
Korea 
Korea Support to IRRI's pogram oimim - 31/12/04 50 50 50 
Wide Hybridbalion and Gene lnlmgressionf or Rice Improvement oim7m3 - 30/06~)6 150 6 74 80 
Rice F u n c t i i l  Genomic Approach Against Rice Blast Disease oim7m3. ~0/08/06 150 5 36 41 
Analysis of V i i s  Resistance Mechanism in Rice Plants Uslng Disease-Related Gene Expression 
Profiles 01102103 - 31112105 60 19 20 39 
Cooperative Funding for KorealRRl Collaborative Projects oimim - 31/12/04 320 206 36 242 
Korea-IRRI Collaborative Projed (Germplasm Uliliiation and Value-Added) oimimi i 31/12/04 210 85 33 118 
IRRl Korea Office i71iimi - 31/12/04 710 468 257 725 
Improvement of water management to control non-point pollution from rice paddy feld 20K)4/04 - 31/12/05 10 
Comparative study on the factors in the decision-making process of h e a n 8  Filipino farmers in 
environment-friendly agriculture 20104/04 - 31/12/05 10 
RDA-IRRI Collaborative Prcject on Molecular Characterizationa nd Allele Mining of Korean Rice 
Germplasm and Extensbn to the IRRl Core 01109104 - 31108108 40 6 6 
Development of Water Saving Technology for Increasing Water Productivi in rice Cultivation 01104/04 - 31/12/06 48 10 10 
Study on Leaf Senescence Pattern and Grain Filling of Irrigated Rce 20104/04 - 31/12/05 10 1 1 
Development of Varieties Resistant to Bacterial blight in Japonica rice 20/04/04 - 31/12/05 10 2 2 
Breeding of Super HghY ielding Rice Variety 20/04/04 - 31/12/05 10 10 10 
Korean Seed MultiplicaUon Project oim7mi - 3111~104 247 160 37 197 
2.035 949 572 1.521 
MONSANTO FUND 
Improving the analylical capabai of IRRl in suppcd of the nutritional improvement of rice grains 
and the diisemlnatbn of modern nutritional information to under-sewed Asian Dowlations 23/06104-221OBK)7 220 78 78 
Further Development of lnternationl Cmp l n f m a t i iS ystems (ICIS) in collaborationw ith NUW 01/04/02 31/03/06 80 24 14 38 
Phaippines 
Assessing the Impad of Potential Trade UberaliUon of the Phlppine Rke Secta 01mim2 - 31112105 36 21 8 29 
Hybrid Nucleus and Breeder Seed Production imim - i w i m 8  3 3 3 
Developing New Plant Type for Direct Seeding Rice Production Systems in the Philippines 20105m4 - 19/05/07 90 
EXHIBIT 2 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock. Nonprofit Organization) 
SCHEDULE OF TEMPORARILY RESTRICTEDA GENDA 
AND CHALLENGE PROGRAMS FUNDINGS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
- 
Grant Period Grant Expenditures 
Donor and ProgranVProiect (DDIMMW) Pledged -Years 2004 iutal 
Rockefeller Foundation (RFj 
Using Entertainment-Education (€E) Approach to Motivate Rice Farmers to Reduce Pesticiie 
Use in the Mekong Basin 300 61 105 186 
Marker Assisted Breeding for Bacterial Bliiht and Blast Resistance in Rice Varieties Adapted for 
Eastern India 20 13 7 20 
Strengthening Intellectual Property and Technology Transfer Management at 
Key Centers of the Consultative Group on International Research (CGIAR) oiiiimo - 31103104 700 652 48 700 
Detecting Alleles conferring Improved Reproductive-Stage Drought Tderance in Rainfed Rice OlIO4IO4 - 31/03wB 276 115 115 
Marker Aided Breeding for Development of Drought Tolerant IR64 tines (Support for Dr. 
Devendra Dwivedi) 01/07/04 - 30/09/05 80 34 34 
Tilling of Rice ( Identifcation and Characterization of Genes that have the Potential to Enhance 
Drought Tolerance In Rice) 01/09/03 - 3o/08/06 125 15 24 39 
Research on Economic Value of Rice Biotechnologies Recently Adopted by Asian Farmers 01/08/03. oimim5 35 34 34 
Increasing Production and Sustainability in Rainfed Rice: A Focus on Drought Prone oimmi - 31/12/04 500 427 73 500 
Predoctoral Fellowship - N.T. Hue oiii im2 - 31103104 10 6 2 10 
Support for Post-Dcctoral Fellow on Mass Screening of Rice f a D rcught Tcierance 01/04/02 - 3 1 M 5  150 74 39 113 
Progress Toward Developing Resilient Crops f a D rought-Prone Areas 01104/M - 3 1 M 5  146 119 8 127 
Molecular Disectii and Marker Assisted Breeding of Drought Tolerance in Rice 01/04/02 - 311w105 362 116 51 167 
Marker Aided Pyramiding of QTLs for Development of Drought Tolerant IR64 01/04/02 - 31/03104 117 111 4 115 
Screening Methods for Improving Grain Yield under Reproductive DrougM Stress in Rainfed Rice oi104m2-  3 1 ~ 5  446 280 155 415 
Training of NARES Scholars at IRRl to Support Bioinformatlcs Integration of Genetk. Genomic. 
Proteomic Data for Marker-Aided Selection for Drought Tolerance 01/04/02 - ~i/03105 144 80 37 117 
Fine Research on Mapping QTL's for Blast Reslstance and the lntrcgressbn of Major Genes and 
QTL's for Durable Blast Resistance in Rice 01/04/99 - 30/04/05 45 29 3 32 
Economic Costs of Drought and Rainfed Fanners' CoDing System 0 1 M 2 -  3 1 M 5  93 88 (22) -66  
Spain 
Spain-IRRI Collaborative Project oimim - 31/12/04 25 25 25 
Switzerland 
Lao-IRRI - Rice Research and Training Project Phase V oim7m - 31112105 1.852 322 839 1.161 
The Irrigated Rice ResearchC onsorlium - Phase II 
Irrigated Rice Research Consortium Coordination Unit oimimi - 31/12/04 297 140 129 269 
Reaching Towards Optimal Productivity WorkGroup oimimi - 3i112/04 1.626 1.139 480 1,619 
Impact: Techndogy Communication, Dissemination and EvaluationW orkGroup oimimi - 31/12/04 428 202 162 364 
Weed Ecology WorkGroup oimimi - 31/12/04 io7 22 84 108 
Water Saving WorkGmup oimimi - 31/12/04 160 95 65 160 
Rodent Management WorkGroup oimimi - 31/12/04 146 115 31 146 
Post Harvest WorkGroup o i m i m  - 31/12/04 146 127 12 7 
Junior Program Officer (Dr. Renate Braun) oimmi - 31101104 258 238 16 254 
Lao PDR Rice Biodiversity Project. Phase 2 oimim - 31112105 423 93 148 241 
Rice Mutant Bank and Resource Platform for Functional Genomics oiioemi - 3imim6 975 476 184 660 
Unifed Kingdom 
Poverty Elimination Through Rice Research Assistance 3im.m - 31/08/04 14.777 10.227 4.104 14.331 
Promotion of IntegratedW eed Management for D i t s eeding of Rice ion the Gangetic Plains Of 
India oimim - 31/03/05 78 22 32 54 
Development of Sustainable Weed System in Direct-Seeded Irrigated Rice (Publication) 01IlZK)Z - 08/06/04 5 5 5 
Promotion of Cost-Effective Weed Management Practices for LOwland Rice in Bangladesh oimim3 - 31103105 152 42 57 99 
15.012 10,291 4.198 14.489 
EXHIBIT 2 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
SCHEDULE OF TEMPORARILY RESTRICTED AGENDA 
AND CHALLENGE PROGRAMS FUNDINGS 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
rGrant Ex ndiire s 
Donor and Pmgram/Pmject (DDIMMNY) Pledged Prior Years 2004 TOW 
United States Agency lor InternationalD evelopment (USAID) 
The Development, Evaluation and Dlslnbutii of Tropical Rice with Provitamin A oimimi - morn goo 821 79 900 
A Network for Gdden Rice in Asia oimim - 31/12/05 1,ooo 74 226 300 
Testing, Comparing. NuMaSS: The Nutrient Management Support System 01/09/w - 3oK19107 55 2 12 14 
Breeding for Iron-Dense Rice: A Low Cost Sustainable Appoach to Reduce Anemia in Asia 01/08/01 31/12104 230 227 3 230 
KSU - CCGl Identifition arid Functional Validation of Genes Condiining Broad-Spectrum 
Disease Resistance in Rice and Pearl Millet 01/03/04-30109105 200 91 91 
KSU - CCGl An Infarmatiin System to Link Genotype to Phenotyple Comparatively Across 
Diverse Cereal Crops o i m m -  3~09105 30 7 7 
Assessing the Potential Scale and Impact of Transgenic Outcrossing to wild and Weedy Rims in 
Vietnam oi/iomi - ~1/03105 400 198 155 353 
United States Deparlrnenl of Agricunure (USDA) 
Participatory Assessment of Social and EcoMrnk Impacts of BiiteChMlogy 1 5 / ~ 1 - 1 4 / 0 9 / 0 5  120 18 2~ 5 43 
KSU - Contribution of Three Defense Response Genes in Quantitative Disease Resistance 01107m3 - ~ O / O B K ~ ~  134 37 38 75 
254 55 83 118 
World Bank 
Upgrading the International Rice Gene Bank Colleclion at IRRl oimim3 - 31/12/05 1.164 333 265 598 
Advanced Research Networking for the CGIAR oimamu - 31107~15 112 20 20 
Participation in Global Advanced Research Networks oimim - 3 1 1 i r n  5 5 5 
1,281 333 290 623 
Total Temporarily Restricted Agenda 53.933 23,609 15.980 39.589 
CHALLENGE PROGRAMS 
Water and Food 01/11m2- 31/12108 11.481 228 727 955 
Generation oimim - 31/12/04 937 740 740 
Harvest Plus 0 9 ~ 3 - 3 1 / 1 2 / O 4  586 66 410 478 
Grand Total 88.917 23,903 17.057 41.760 
EXHIBIT 3 
INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
DETAILS OF OPERATING EXPENSES 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
2004 
Program Related Management and General 
Research Research Technical General 
Programs Support Support Subtotal Management Administration Subtotal Total 2003 
UNRESTRICTED 
Personnel 2,838 674 1.255 4,767 1,635 1,635 6.402 5.81 1 
Supplies and services 1,040 463 890 2.393 1.149 3.829 4.978 7.371 5.732 
CollaboratordPartners 723 723 723 133 
Travel 427 26 98 551 18 2 125 307 858 1.116 
Depreciation 758 266 406 1,430 350 129 479 1,909 1,976 
Total operating cost 5,786 1,429 2.649 9.864 3.316 4,083 7.399 17,263 14.768 
Recovery of indirect cost (1,906) (1,906) (1,908) (1.71 5) 
Subtotal 5.786 1,429 2.649 9.864 3,316 2,177 5.493 15.357 13.053 
RESTRICTED 
Personnel 5.541 46 5 5.592 457 457 6.049 6.873 
Supplies and setvices 4.961 81 20 5.062 19 19 5.081 4.502 
Collaborators/Partners 3.303 3.303 3.303 1,955 
Travel 1,174 1,174 18 18 1.192 1,777 
Depreciation 355 355 355 207 
Subtotal 15.334 127 25 15.486 475 19 494 15,980 15.314 
CHALLENGE PROGRAMS 
Personnel 466 466 - .  466 111 
Supplies and services 672 672 672 69 
ColIaboratorslPartners 563 563 563 
Travel 176 176 17 6 130 
Subtotal 1.877 1.877 1.877 310  
Grand Total 22,997 1,556 2,674 27.227 3.791 2.196 5.986 33.214 28.677 
EXHIBIT 4 
THE INTERNATIONAL RICE RESEARCH INSTITUTE 
(A Nonstock, Nonprofit Organization) 
CALCULATION OF INDIRECT COST RATE 
FOR THE YEAR ENDED DECEMBER 31,2004 
(In Thousands of US Dollars) 
With comparative figures for the year ended December 31,2003 
2004 2003 
INDIRECT COSTS 
Administrative expenses 2,503 2,734 
Common sustenance services 3,262 2,343 
Total indirect costs 5,765 5,077 
DIRECT COSTS 
Research programs 24,239 21,454 
Research sup. .p ort 4,114 3,206 
Operations 949 389 
Total 29,302 25,049 
Less: Overhead recovery 1,906 1,715 
Net direct costs 27.396 23.334 
Total operating costs 33,161 28,411 
INDIRECT COST RATE: 
Indirect costs 5,765 5,077 
Total operating costs 33,161 28,411 
Rate 17.38% 17.87% 
Indirect costs 5,765 5,077 
Direct costs 27,396 23,334 
Rate 21.04% 21.76%