INTERNATIONARLI CER ESEARCIHNS TITUTE www .irri.org Audited Financial Report 2003 .. I I gce Science for a Better 1, I N T E R N A T I O N A L YEAR O F RICE 2 0 0 4 I rld ~ - w . # l c e Z O O b . e # g Corporate information Board of Trustees Headquarters Ex officio Members College, Los Bafios, 403 1 Laguna Philippines Dr. Francisco Nemenzo Tel: (63-2) 580-5600; 845-0563 (President, University of the Philippines) (63-49) 536-2701 to 2705 +1 (650) 833-6620 (USA Direct) Sec. Luis P. Lorenzo, Jr. Fax: (63-2) 580-5699; 891-1292 (Secretary, Philippine Department of +1 (650) 833-6621 (USA Direct) Agriculture) Email: im@,cQiar.org Dr. Ronald P. Cantrell Web: www.ini.org (Director General, IRRI) Members-at-larpe IRRI Makati Office Dr. Emanuel Adilson S. Sen50 Dr. Calvin 0. Qualset 10" Floor, Suite 1009 Condominium Center 6776 Ayala Avenue, Makati City 1226 . Dr. Shigemi Akita Dr. E.A. Siddiq Philippines Mr. Fazle Hasan Abed Tel: (63-2) 891-1236; 891-1303 Dr. Kay Beese Fax: (63-2) 891-1 174 Dr. Achmad Mudzakkir Fa@ Dr. Eun-Jong Lee External Auditors Dr. Keijiro Otsuka Prof. Baowen Zhang SyCip Gorres Velayo & Co. Dr. Ruth K. Oniang'o A Member Practice of Emst & Young . Dr. Ronald L. Phillips Global Dr. William G. Padolina Secretary to the Board Mr. Kwame Akuffo-Akoto Treasurer to the Board Finance and Audit Committee Membership Authority The Finance and Audit Committee is The Finance and Audit Committee is composed of four Trustees who are authorized to investigate any activity of the appointed by the Board. Its duty is to review Institute within its terms of reference and all and audit, from time to time, the accounts employees shall be directed to cooperate and financial condition as well as the with any request made by the Committee. management and operating systems and The Committee shall be empowered to procedures of the Institute. It also reviews retain persons having special competence as periodically the Institute’s guidelines and necessary to assist the Committee in procedures pertaining to human resources hlfilling its responsibilities. development, finance and budget, and other administrative matters, and exercises the powers and performs the duties delegated to Current Composition and Designation of it by the Board. For the Institute’s audit and Finance and Audit Committee accounts, the Committee discharges its functions in consultation and coordination Mr. Fazle Hasan Abed with the external auditors, the internal Chairperson auditors, and appropriate consultants of the Institute. Dr. Keijiro Otsuka Member The Chairperson of the Finance and Audit Committee, who is customarily appointed by Dr. Calvin 0. Qualset the Board at the time when the Board Member appoints members of the Committee, shall preside over all meetings of said Committee. Dr. Ronald P. Cantrell (Director General) In hidher absence or disability, the Vice Member (Finance only, does not participate Chairperson shall act as the Chairperson for in Audit Section of the Committee’s that meeting. deliberation) The Finance and 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. A vacancy in the Finance and Audit Committee is filled from among other members of the Board through election by the Board or election by the remaining members of the Finance and Audit Committee. Any person so elected by the Committee serves only until the next meeting of the Board. Statement bv the Board Chair IRRI registered a total revenue of $29.690m Financial Position vis-a-vis $30.655m in the preceding year representing a drop of $0.965m (3%). JRRI’s financial position continues to be Operating results before non-recurring items strong. IRRI did not operate an overdraft rose by about 134% from a deficit of with any of its bankers during the year. The $2.908m in 2002 to a surplus of $1.013m for current ratio as at 2003 December 31 is the year under review. The net operating 3.5:l compared to 3.4:l in the preceding surplus after non-recurring items of year. The working capital as days’ of USS2.264rn (2002:US$2.721m) was expenditure excluding depreciation was 404 US$3.277m vis-a-vis a deficit of US$.187m days (2002: 291 days). The financial in 2002. stability index which measures the number of days of expenditure of unrestricted net assets excluding investment in fixed assets Review of Operations stands at 523days (2002:397 days). The major thrust of the Institute’s financial All these indications are well above the management operations during the year was CGIAR norms. the objective of working towards a balanced budget by 2004. In pursuance of this, a The ratio of liabilities (current and long budget restructuring exercise which included term) to unrestricted net assets is 1:3. staff retrenchment was undertaken towards the end of 2002. The retrenchment exercise paid off as indicated by a reduction in total Prospects, Risks and Opportunities staff cost from $16.222m in previous year to $12.795m in 2003. This coupled with the Financial risks are part of a broader fall in the value of US dollar against some of spectrum of risks that IRRI manages. The the major currencies has helped IRRI get continued unpredictability of the level of closer to achieving the goal of a balanced grants available to IRRI is a key financial budget by 2004. The Institute continues to risk. IRRT has made every effort to replace make in roads into new areas of research in lost traditional grants with new competitive response to the demands by the rice grants through the Challenge Programs. A producing developing countries. Such new total of $1.692m in Challenge Program thrusts include post harvest technology and funding is expected to come to IRRI in training, establishing a new grain quality 2004. This source of funding is becoming and nutrition research facility and a valuable to IRRI. The financing plan target centralized new bioinfonnatics centre at of $31.0m set in the Medium Term Plan is IRRI, developing a new lRRI rice research expected to be achieved during 2004. program for Africa, and establishing new Meanwhile, IRRI’s unrestricted net assets information dissemination networks and level provides the Institute with the training in the Greater Mekong Subregion necessary flexibility to deal in the short run including Myanmar. with any unexpected negative impact on our operations. The Board as part of its risk assessment management role will continue to monitor and manage these net assets for the maximum benefit of Institute’s work. In general, the Board oversees the operations of the Institute in the interest of donors and stakeholders and in awareness of its responsibilities towards employees, communities and the environment in the countries in which we operate. Board of Trustees I would like to express my sincere best wishes to h4rs. Angeline S. Kamba, Dr. Mike Gale, and Dr. Jian Song who left the Board during the year. The Institute benefited from their hard work and dedication. I would like to extend a warm welcome to Prof. Baowen Zhang, Dr. Ruth K. Oniang'o and Dr. Ronald L. Phillips who have been appointed to the Board of Trustees. I am certain that their vast experiences will be invaluable to the Institute. Appreciation On behalf of the Board of Trustees, I would like to thank the management and staff for their dedication and perseverance in facing the challenges during the year under review. We would like also to record our appreciation to our donors and investors and C G M p artners for their continued support and cooperation. Dr. Keijiro Otsuka Chairperson, Board of Trustees INTERNATIONAL RICE RESEARCH INSTITUTE Financial Statements December 31, 2003 and 2002 Management Statement of Responsibility for Financial Reporting The accompanying financial statements of the International Rice Research Institute (IRRI), are the responsibility of management and have been prepared in accordance with generally accepted accounting principles. IRRI 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. 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 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 it’s 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. wDRoirneacltdo rP G. Cenaenrtarel- ll H SCV& co m SyCip Goms Velayo & Co. m Phone: (632) 891 -0307 6760 Ayala Avenue Fax: (632) 81 9-0872 1226 Makati City -.sgv.corn.ph Philippines Report of Independent Auditors The Board of Trustees International Rice Research Institute We have audited the accompanying statements of financial position of International Rice Research Institute (a nonstock, nonprofit organization) as of December 3 1,2003 and 2002, and the related statements of activities, changes in net assets and cash flows for the years 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 audits. We conducted our audits 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 audits provide 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 International Rice Research Institute as of December 3 1, 2003 and 2002, and the results of its activities and its cash flows for the years then ended in conformity with the CGIAR guidelines. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of grant revenue, operating expenses and the calculation of indirect cost rates for the years ended December 3 1,2003 and 2002 and the supplementary schedules of temporarily restricted agenda and challenge program fundings, and property and equipment for the year ended December 3 1,2003 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. A Member Practice of Ernst 8: Young Global April 2,2004 SGV & Co is a member practice of Emst 6 Ywng Global lRls 111 llnllllll ll1ll lllll ullllll INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Nonprofit Organization) STATEMENTS OF FINANCIAL POSITION (In Thousands of US Dollars) December 31 2002 (As restated - 2003 Note 13) ASSETS Current Assets Cash and cash equivalents (Note 3) 30,795 29,830 Accounts receivable Donors (Note 4) 8,688 3,922 Employees 265 153 Others-(Note 5) 1.242 1.553 10,195 5,629 Less allowance for doubtful accounts 274 239 9,92 1 5,390 Inventories - net (Note 6) 364 328 Prepaid expenses 340 286 Total Current Assets 41,420 35.834 Noncurrent Assets Property and equipment - net (Note 7) 8,491 8,803 Other assets (Note 8) 10,816 11,910 Total Noncurrent Assets 19.307 20.7 13 60,727 56,547 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Donors (Note 9) 6,818 5,513 Employees (Note 10) 48 77 Others (Note 11) 1,543 1,879 8,409 7,469 Accruals (Note 12) 3,340 3,236 Total Current Liabilities 11,749 10,705 Long-term Liabilities Accounts payable - employees (Note 10) 2,207 2,818 Total Liabilities 13.956 13,523 Net Assets (Note 14) Undesignated 10,010 6,3 13 Designated 36,761 36,711 Total Net Assets 46,771 43,024 ~~~ ~~~ See acconipatiying Notes IO Financial Statenients. INTERNATIONAL RICE RESEARCH INSTITUTE (A Sonstock, Nonprofit Organization) STATEMENTS OF ACTIVITIES (In Thousands of US Dollars) l’ears Ended December 31 2003 Temporarily Challenge Unrestricted Restricted Subtotal Program Total 2002 REVEXUES Grants 11.501 15314 26.8 15 310 27.125 18.406 Other revenues (Note 15) 2.565 - 2.565 - 2.565 2.249 14.066 15.314 29.380 310 29.690 30.655 OPERATING EXPENSES Program-related 8.890 14.467 23357 310 23.667 17.191 Management and general 5.878 847 6.725 - 6.725 7.770 14.768 15.314 30.082 310 30.392 34.961 Recovery of indirect costs (Note 16) (1.715) - (1.715) - (1.715) (1.398) 13.053 15.314 28.367 310 28.677 33.563 ESCESS (DEFICIENCY) OF REVEKUES OVER ESPEXSES BEFORE UNREALIZED FOREIGN ESCHAKCE GAIN 1.013 - 1.013 - 1.013 (1.908) USREALIZED FOREIGN EXCHANGE GAlS 2.264 - 2.264 - 2.164 2.71 I ESCESS (DEFICIENCY) OF REVENUES OVER ESPENSES 3.277 - 3.277 - 3.277 (187) MEMO ITEMS Operating expenses - by natural classification: Personnel costs 5,811 6.873 12.684 111 12.795 16.222 Supplies. services and others 5.865 6.664 12,529 69 12.598 11.158 Operational travel 1.116 1.777 2.893 130 3.023 2.454 Depreciation 1.976 - 1.976 - 1.916 2.127 Recovery of indirect costs (1.71 5) - (1.71 5) - (1.715) I I .398) 13.053 15.314 28.367 310 28.677 33.563 ‘ See accorrrpanying Notes IO Firrancial Staienrents. INTERNATIONAL RICE RESEARCH INSTITUTE (A Konstock, Xonprofit Organization) STA4TEMEIVTSO F CHANGES IN NET ASSETS (In Thousands of US Dollars) Desigated Investment Knowledge Total in Fixed Fixed Assels SUN Pathways Designated Toial Lhdesi,mled Assets .-\cquisition GRCEGD. Separation Initiative Set Asse!s Set Assels Beginning balance. January 1.2001 AS previously reported 6.186 9.866 9.652 - - 19.518 25.704 .qdoption of new provisions o f CGIAR Accounting Policies and Reponing Practices Manual - Financial Guidelines Series No. 2 dated November 2003 (Kole 141 314 - 1.282 7.549 6.632 1.776 17.241 17.555 As reslaied 6.500 9.666 10.934 7.549 6.632 I .77s 36.759 43.239 Capital reserve replenishment - (2.117) 2.127 - - - - - Deficiency of revenues over expenses ( 187) - - - - - ( 1 87) Acquisition of fixed assets - I . O M (1.1 I ? ) - - - (48) (48) Ending balance. Deceniber 3 I . 2002 6.3 I3 8.S03 1 I .949 7.549 6.632 1.776 36.71 I 43.024 Capital reserve replenislinrni - (1.976) I .976 - - - - Excess of revenues over expenses 3.697 (118) - - (302) (420) 3.277 Acquisiiioii of fixed assets - I .782 (1.312) - - - 470 470 * Genetic Resources Consen-ation. Evaluation. and Gene Discown (GRCEGDI See armmpnying Notes to Finanrial Statements. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Nonprofit Organization) STATEMENTS OF CASH FLOWS (In Thousands of US Dollars) Years Ended December 31 2002 (As restated - 2003 Note 14) ~~ ~ CASH FLOWS FROM OPERATING ACTIVITIES Excess (deficiency) of revenues over expenses 3,277 (1 57) Adjustments for: Depreciation 1,976 2.127 Provision for decline in value of investment 139 1,522 Provision for/write-off of doubtful accounts 35 35 Interest income (1,038) (1,131) Loss on disposal of property and equipment (118) (121) Provision for inventory obsolescence - 19s Net operating revenue before working capital changes 4,2 7 1 2,443 Decrease (increase) in: Accounts receivable (4,566) (1 84) Inventories (36) 423 Prepaid expenses (54) 157 Increase (decrease) in: Accounts payable 329 (120) Accruals 104 (2,333) Cash generated from operations 48 376 Interest received 1.038 1.131 Net cash provided by operating activities 1,086 1.507 CASH FLOWS FROM INVESTING ACTIVITIES Decrease in other assets 955 4.338 Net movement of fixed assets acquisition reserve 470 (48) Net acquisition of property and equipment (1,546) (943) Net cash provided by (used in) investing activities (121) 3,347 NET INCREASE IN CASH AND CASH EQUIVALENTS 965 4.854 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 29,830 24,916 CASH AND CASH EQUIVALENTS AT END OF YEAR 30,795 29,830 See accorrrparrvirrg Notes IO Firrarrcial Statenrerrts. INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonst ock, Nonprofit Organization) NOTES TO FINANCIAL STATEMENTS 1 . General International Rice Research Institute (the Institute) was established in I960 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 fiom 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 fiom, 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 accompanying financial statements and supplementary schedules of the Institute were approved and authorized for issue by the Board of Trustees on April 2.2004. 2. Summary of Significant Accounting 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 under the auspices of the CGIAR. These practices conform with International Financial Reporting Standards. In November 2003, the CGIAR revised the “Accounting Policies and Procedures Manual - Financial Guidelines Series No. 2” (the Guideline) to be used in preparing the financial statements beginning January 1, 2004. The Institute opted for early adoption in 2003. 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. 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, is shown as ”Accounts payable - donors” account in the statements of financial position. Unrestricted grants are grants received which the Institute may freely use for its mandated activities. Grants in kind are recorded at the fair value of the assets received while cash grants are recorded at its US dollars equivalent. Cash and Cash Eauivalents 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. Accounts Receivable Accounts receivable are carried at its gross amount less an allowance for any uncollectible amounts. Allowance for doubtful accounts is based on past experiences and on continuing review of receivable aging reports and other relevant factors. When accounts receivable-donor is deemed doubtful of collection, the Institute provides an allowance for doubtful accounts during the year in which they are deemed doubtful. Any receivables or portion of receivable adjudged to be uncollectible are written-off. The write-off of receivables is done after all efforts to collect have been exhausted. - 3 - 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 Eauipment Property and equipment acquired prior to 1991 are camed at cost or estimated value; acquisitions starting 1991 are stated at cost. Capital expenditures with a minimum cost of USS500 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 worlung condition for its intended use. Depreciation of all assets which are owmed by the Institute is computed using the straight-line method over the estimated useful lives of the related assets: Category Description Estimated life in 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 5-10 Office 5-10 Auxiliary units 5-10 Vehicles 4-7 Computers 3-5 Depreciation is made in the month the asset was placed in operation and is continued until the asset has been fully depreciated or it was discontinued for use. 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. Staff Benefits Plan 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 plan provides for lump-sum payment to qualified employees/members, upon their separation from the Institute, under certain conditions. - 4 - Provisions Starting 2003, provision is recognized only when the Institute has (1) a present obligation (legal or constructive) as a result of a past event, (2) it is probable (i.e.. more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation: and (3) a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. In prior years, provisions for contingencies were accrued when it is probable that a liability had been incurred at statement of financial position date and the amount can be reasonably estimated. Otherwise, the loss contingencies were disclosed. Recoverv 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-recumng expenditures are excluded in the computation. Direct and indirect costs exclude capital expenditures, but include depreciation in the case of core projects. For restricted agenda 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. 3. Cash and Cash Equivalents This account consists of: 2003 2002 (US Dollars ‘000) Cash on hand and in banks 5,40 1 8,055 Short-term investments cost 27,055 2 1,775 Less allowance for decline in value 1,661 - 25,394 2 1,775 30,795 29,830 As of December 3 1,2003, short-term investments include a three-year commercial bond amounting to 3.0 million Euro which will mature on January 7,2004. As of December 3 1,2002, this investment is shown in “Other assets” account (Note 8). 4. Accounts Receivable - Donors This account consists of unreleased balances of approved grants and expenses advanced as of year-end which are classified as follows: 2003 2002 (US Dollars ‘000) Unrestricted 3,739 876 Restricted 4,805 3.046 Challenge program 144 - 8,688 3.922 5. Accounts Receivable - Others This account consists of: 2003 2002 (US Dollars ‘000) Advances to suppliers 746 1,134 Others 496 420 1,242 1,554 6. Inventories This account consists of: 2003 2002 (USD ollars ‘000) Spare parts 606 5 86 Supplies and other inventories 222 22 1 828 807 Less allowance for obsolescence 464 479 364 328 - 6 - 7. Property and Equipment This account consists of: 2003 2002 (US Dollars ‘000) cost Physical facilities 123 123 Infrastructure 657 65 7 Furnishing and equipment 28,204 27.725 28,984 28,505 Less accumulated depreciation Physical facilities 25 23 Infrastructure 185 167 Furnishing and equipment 20,283 19.512 20,493 19,702 Net book value 8,491 8.803 The total cost of Property and Equipment as of December 3 1 ,2 003 and 2002 does not include the cost of assets in custody amounting to US$4,845 thousand and US$4,201 thousand, respectively. On September 7,2001,t he 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,a nd 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 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. 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 10-year payment (US$125,000) was paid as a lump-sum, and the remainder will be paid in annual installments starting in the 1 1 th year of the lease. Pursuant to the Memorandum of Understanding between the Government of the Republic of the Philippines and the Institute, all the physical plant, equipment and other assets belonging to the Institute shall become the property of the University when and if the Institute ceases its operation. In support of any expansion of the agricultural research program of the Institute and the University, the Philippine Government authorized the University to acquire, by negotiated sale or by expropriation, certain private agricultural property under PD No.4 57. - 7 - The Institute leases land and other properties from third parties for project experimental sites with periods ranging from one to five years. The Institute owns an administrative office in Makati City, Philippines. Depreciation expense amounted to US$l,976 thousand and USS2,127 thousand in 2003 and 2002, respectively. 8. Other Assets This account consists of: 2003 2002 (US Dollars '000) Long-term investments: cost 10,810 13,431 Less allowance for decline in value - (1 S22) 10,810 I 1.909 Refundable deposits 6 1 10,816 11.910 As of December 3 1,2003 and 2002, the long-term investments include USS3.5 million pertaining to callable principal protected notes (PPNs) with a foreign bank. These PPNs consist of zero- coupon bonds with 5-7 years duration combined with a call option investing on a particular equity index or set of indices. These bonds appreciate to 100% of par during the investment period ensuring return of the principal at maturity, and the option provides a share of any appreciation in the equity index. As of December 3 1,2002, the long-term investments also include a three-year commercial bond which pays a guaranteed interest of 7.5% per annum and will mature on January 7.2004. The principal is linked to the Euro Stoxx 50 index. The bond provided that if the index falls by less than 25% from the strike level on the day of purchase, the full amount of the principal will be recovered at maturity date. As of December 3 1,2002, the index had fallen by 50.70% and a provision for the decline in value of the principal amounting to USS1.522 thousand is recognized in 2002 statement of activities. As of December 3 1,2003, this account was included in the "Cash and cash equivalents" in the 2003 statement of financial position. - 8 - 9. Accounts Payable - Donors This account consists of grants received in advance, which are applicable to succeeding years. 2003 2002 (US Dollars '000) Restricted 5,451 3.940 Unrestricted 1312 1.573 Challenge program 55 - 6,818 5,513 10. Accounts Payable - Employees This account consists 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. 1 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 ultimate beneficiaries other than CGIAR centers. 12. Accruals This account consists of: 2002 (As restated - 2003 Note 14) (US Dollars '000) Trade 1,124 2,029 Staff benefits 243 110 Capital projects , 200 220 Others 1,773 877 - 9 - 13. Staff Benefits Plan The Institute maintains a noncontributory provident fund for the benefit of its nationally recruited staff. Contributions to the fund amounted to about USS280 thousand and USS35 1 thousand in 2003 and 2002, respectively. 14. Net Assets Designated net assets amounting to US$36,761 thousand and USS36,711 thousand as of December 3 1, 2003 and 2002, respectively, represent the portion designated by the Institute’s management for specific purpose. Undesignated net assets amounting to US$lO,OlO thousand and US$6,3 13 thousand as of December 3 1, 2 003 and 2002, respectively, represent the portion not designated by the Institute’s management for any specific purpose. In November 2003, the CGIAR revised the “Accounting Policies and Procedures Manual - Financial Guidelines Series No. 2” (the Guideline) to be used in preparing the financial statements beginning January 1,2004. The Institute opted for an early adoption in 2003. In accordance with the Guideline, specifically IAS 37, Provisions. Gontirigerit Liabilities arid Cotitingent Assets, previous years’ accruals amounting to US$17,555 thousand were reported as adjustments to the net assets as of January 1, 2 002 and comparative information in 2002 was restated. 15. Other Revenues This account consists of: 2003 2002 (US Dollars ’000) Interest income 1,038 1,130 Realized foreign exchange gain 525 523 Self-sustaining activities 356 285 Miscellaneous 646 31 1 2,565 2,249 16. Indirect Cost Rate The indirect cost recovery rate is 2 1.76% and 1 8.44% in 2003 and 2002, respectively. The computation of indirect cost recovery rate is shown in Exhibit 5 . - 10- 17. Contingencies The Institute has 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. 18. Other Matter The following accounts in the 2002 financial statements were reclassified to conform with the 2003 presentation: From To Amount (US Dollars '000) Other assets Cash and cash equivalents 3,940 Funds in trust Accounts payable - others 108 INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Nonprofit Organization) SUPPLEMENTARY INFORMATION DECEMBER 31,2003 A N D 2002 TABLE OF CONTENTS Schedule of Grant Revenue Exhibit 1 Schedule of Temporarily Restricted Agenda and Challenge Program Fundings Exhibit 2 Schedule of Property and Equipment Exhibit 3 Details of Operating Expenses Exhibit 4 Calculation of Indirect Cost Exhibit 5 ESHlBlT 1 INTER!YATIOSAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANT REVENUE FOR THE YEARS ENDED DECEMBER 3 1,2003 AKD 2002 (In Thousands of US Dollars) 2003 Total Funds Accounts Advance DONORS Available Receivable Payment Grant Grant 2002 Unrestricted Agenda Australia 1,015 - (558) 457 436 Belgium - 106 - 106 91 Canada 76 1 - 761 63 1 China - 130 - 130 130 Denmark 597 - - 597 663 Germany 292 - - 292 135 Japan 2,672 - - 2,672 2.067 Korea IS0 - - 150 I50 Netherlands 5 73 - (206) 367 31s Norway 208 - - 208 100 Philippines 48 51 - 99 S6 Sweden 718 - (268) 460 397 Switzerland 29 1 - - 29 I 235 Thailand (26) 52 - 26 ‘G United States - 3.400 (280) 3,120 3.400 Vietnam IS - - 15 15 World Bank 1.750 - - 1.750 3x05 Sub-total 9.074 3.739 (1311) 11.501 I ’.SS7 Temporarily Restricted Agenda Asian Development Bank (ADB) 120 172 (20) 272 4s9 Australia 207 13 0 9 ) 181 370 Canada 90 - (27) 63 54 European Commission 480 1,863 (J06) 1,937 2.304 France 635 1 I 3 748 637 Food and Agricultural Organization of the United States (FAO) Y4 - (71) 23 - Germany I ,2Y 1 - (502) 789 729 India 150 - 150 I50 International Development Research Centre (IDRC) 7 - (7) - - international Fund for Agricultunl Development (IFAD) 378 31 (111) 298 I59 (Forward) ESHIBIT 1 2003 Total Funds Accounts Advance DONORS Available Receivable Payment Grant Grant 2002 Iran 360 - (260) IO0 I' I Japan 1.60 I - . (215) 1.386 I .J94 Korea 73 1 - (336) 395 373 Netherlands 8 - - 8 7 Philippines 21 - (11) IO I I Portugal 6 - - 6 S I Rockefeller Foundation (RF) 719 264 (268) 715 1.130 Spain 50 - - 50 - Switzerland 3.999 15 ( I ,924) 2.090 I .E United Kingdom 3,244 1,830 (31) 5.043 4.635 United States: United States Agency for International Development (USAID) 60I 93 (236) 458 3S6 United States Department of Agriculture (USDA) (173) 256 - 83 S4 World Bank 1,163 - (830) 333 57 Others 328 5 ( 157) 176 340 Sub-total 15,960 4,805 (5.451) 15.314 15.519 Total Agenda Grants 25.033 8.544 (6.763) 26.8 15 X A O G Challenge Program Genetic Diversity 6 IO - 16 - Biofortification 60 6 - 66 - Water and Food IO0 I28 - 228 - Austria 55 - (55) - - Sub-totid 12 1 I44 (55) 310 - 25.255 8.688 (6.818) 27.125 7S.406 EXHIBIT 2 INTERIVATIO3AL RICE RESEARCH INSTITUTE SCHEDULE OF TEMPORARILY RESTRlCTED AGENDA AND CHALLENGE PROGRAM FUNDINGS FOR THE YEAR ENDED DECEMBER 31,2003 (In Thousands of US Dollars) Expenditures Grant Period Grant Prior Donor and ProgradProject (DD/M hl/YY) Pledged Years 2003 Total Asian Developnieiit Batik (ADB) Sustaining Food Security in Asia through the Development of Hybrid Rice Technology 01/01/02 - 31/12/04 1,000 239 255 494 Development of Training Course on Water Saving Technologies in Rice Production 1/11/03 - 10/31/04 49 - - - International Workshop on Strategies for Sustainable development of Agricultural Production Systems in the Highlands of Greater Mekong Sub-Region Countries 09/1 6/03 - 12/09/03 20 - 17 17 1.069 239 272 51 I Australia Molecular Tools for Achieving Apomixis in Rice (IRRI Portion) 0 I10 1/97 - 3 I /03/03 3 05 299 6 303 Impact Assessment of Rodent Control Projects Consultancy 1 711 1/03 - 06/02/03 IS - 9 9 Impacts on Alternative Policy Options on the Agricultural Sector in Vietnam 01/07/99 - 31/12/03 13 7 4 G Growing Rice with Less Water: Increasing Water Productivity in Rice-based Cropping System 0 l/07/0 I - 30/04/05 88 27 20 47 Rodent Ecology Working Group 01/01/99 - 31/12/03 I I 6 5 I 1 East Timor Seeds of Life 0111 1\00 - 30/06/03 43 23 12 35 Diagnostic Key for Tropical Rice Disorders 01/01/01 - 31/12/03 2s 28 28 Research and Training on Rodent Management and Ecology Research 19/05/03 - 06/06/03 16 - I6 IG Fertilization-Independent Formation of Embryo and Pericarp for Apomictic Hybrid Rice 0 I /07/03 - 30/06/08 98s - 106 106 Increased Productivity of Rice-based Cropping Systems in Lao PDR. Cambodia and Australia 01/07/00 - 30/06/05 9 I 3 4 1.519 386 181 567 Canada CGIAR-Canada Linkage Fund-Functional Annotation of Rice Genomic Sequences 0 1/07/0 I - 30/06/04 95 68 3 71 Fund for Africa 01/01/03 - 31/12/03 GO - GO GO 155 68 63 131 Eirropean Comriissioti Germplasm Conservation, Characterization, Documentation and Exchange (Asia) 01/01103 - 31/12/03 276 - 276 276 Functional Genomics (Asia) 01/01/03 - 31/12/03 632 - 632 632 (Forward) - 2 - ESHlBlT 2 Expenditures Grant Period Grant Prior Donor and ProgramlProject (DDIRIMNY) Pledged Years 1003 Total Genetic Enhancement for Improving Productivity and Human Health in Fragile Environments (Asia) 01/01/03- 31/12/03 I .019 - I .029 I . E 9 1.937 - 1.937 1.937 Fraiice IRRllFrance Collaborative Projects 01/01/03- 31/12/03 748 - 748 748 Food arid Agriciiltiire 0rgaiii:atioii oftlie United Natioiis The Geographical Distribution of Poverty and Food Security in Bangladesh: Implications for the Design of Policy and Agricultural RBD8:E Interventions 0 1 /04/03- 3 I /03/04 99 - 23 23 Germaiiy Capturing Rice Yield Potential through Biotechnology o I 10 I 199 - 28/02/03 766 733 33 76G Trait and Gene Discovery to Stabilize Rice Yields in Drought-Prone Environments 01/01/01 - 31/12/04 1,442 70 1 406 1,107 Genetics of Physiology of Phosphorous Uptake in Rainfed Rice 01/12/01- 3011 1/04 236 70 68 138 Managing N-Fertilization through Crop Demand- Driven Field Specific Application (K. Win) 01/04/01- 31/03/03 8 6 1 8 Managing Crop Residues for Healthy Soils in Rice Ecosystem 0 I /04/03- 3 I /03/06 1.489 - 280 280 3.941 1.510 789 2,299 Iiidia IRRlllndia Collaborative Project 01/01/03- 31/12/03 I50 - 150 150 Iiiteriiatioiial Developiiieiit Research Ceiiter Efficiency Improvement 8: Environment Sustainability Exploring the Economy of Fertilizer-Nitrogen Use of Irrigated Rice in China 01/01/03- 31/12/05 25 - - - Iiiteriiatioiial Firiid for Agricirltiiral Developiiieiit (IFAD) Validation and Delivery of New Technologies for Increasing the Productivity of Flood - Prone Rice Lands in South and Southeast Asia 0 I /06/99 - 3 I / 12/03 1,000 622 267 889 Accelerating Technology Adoption to Improve Rural Livelihood in the Rainfed Eastern Gangetic Plains 22109/03 - 30/09/06 1,500 - 31 31 2,500 622 298 920 Iran Scientific & Technical Cooperation between Iran and IRRI 01/01/99 - 31/12/04 1,010 650 100 750 (Forward) - 3 - ESHIRIT 1 Expenditures Grant Period Grant Prior Donor and ProgramlProject (DDIRIRINY) Pledged Years 2003 Total Japan Germplasm Conservation. Characterization, Documentation and Exchange: Conservation and Characterization of Rice and Biofertilizer Genetic Resources 01/01/03 - 31/12/03 200 - 200 200 Functional Genomics 01/01/03 - 31/12/03 200 - 200 200 Genetic Enhancement for Yield. Grain Quality, and Stress Resistance: Identify Desirable Components of High Yield Potential. Multiple Resistance and Superior Grain Quality 01/01/03 - 31/12/03 200 - 200 200 Managing Resources under Intensified Rice- Based Systems 01/01/03 - 31/12/03 200 - 200 200 Genetic Enhancement for Improving Productivity and Human Health in Fragile Environments: Develop Rainfed Rice with Enhanced Stress Tolerance, Nutrient Acquisition, and Grain Quality in Partnership with NARES 01/01/03 - 31/13/03 IO0 - IO0 IO0 Natural Resource Management for Rain fed and Upland Rice Ecosystems Activities 01101/03 - 31/12/03 IO0 - IO0 I oo Ecoregional Approaches for Integrated Natural Resource Management and Livelihood Improvement: Support the NARES Consortium on Rice-Wheat Systems For the Indo-Gangetic Plains 01/01/03 - 31/11/03 100 - 100 IO0 Physio Genetic Studies on Yield Determination and Ecological Adaptability for Sustainable Rice Culture (MAFF) 0 I /I 0199 - 30/09/04 I,GS7 1.18s 286 1.474 1.787 1,188 1.386 1.574 Korea Korea Support to IRRI's Program 01/01/03 - 31/12/03 5 0 - 50 50 Wide Hybridization and Gene Introgression for Rice Improvement 0 1/07/03 - 30/0G/06 I50 - G G Rice Functional Genomic Approach Against Rice Blast Disease 0 1/07/03 - 30/06/06 I50 - 5 5 Analysis of Virus Resistance Mechanism in Rice Plants Using Disease-Related Gene Expression Profiles 0 I /02/03 - 3 I / 12/05 GO - 19 19 Cooperative Funding for Korea-IRRI Collaborative Projects 01/01/00- 31/12iO3 I67 I 09 50 I59 Korea-If2RI Collaborative Project 01/01/01 - 31/12/03 I75 55 30 85 IRRl Korea Office 1711 1/01 - 31/12/03 483 25s 210 468 Korean Seed Multiplication Project 01/01/01 - 31/12/03 99 35 25 GO 1.334 457 ' 395 852 Netherlands Water X Nitrogen lnieraction and Nitrogen Economy of Low Land Rice Under Water Saving irrigation 01/01/00 - 01/01/04 28 20 8 28 Pliilippines Assessing the Impact of Potential Trade Liberalization ofthe Philippine Rice Sector 01/01/02 - 31/12/05 32 11 10 21 (Forward) -4- EXHIBIT 2 Expenditures Grant Period Grant Prior Donor and Program/Project (DDlMitlA'Y) Pledged Years 2003 Total Portugal PortugalllRRI Collaborative Project 01/01/01 - 31/12/03 70 65 5 70 PortugalllRRl Collaborative Project - h-f. \'asconsuelos 0 I /09/0I - 3 I /08/03 20 19 1 20 90 84 6 YO Rockefeller Foundation (RF) Mapping Alien Segments lntrogressed from Wild Species Onto The Rice Chromosomes Thru In- Situ Hybridization 01 /01/00- 30/06/03 69 45 24 69 Development and Utilization of Transgenic Rice Products 0 I /04/00 - 30/06/03 98 93 - 93 Application of Molecular Techniques 0 I104/00 - 30/06/03 130 I30 - I30 Sustainable Use of Bacillus Thuringienses Toxins in Rice 0 I /01/00- 30/06/03 89 89 - 89 Physical Mapping of the Rice Genome and Molecular Cloning of XA5 and XAl3 0 I /03/00- 30/06/03 I I4 I14 - I I4 Using Entertainment Education Approach to Motivate Rice Farmers to Reduce Pesticide Use in the Mekong Basin 01/01/03 -31/12/05 300 81 81 Research on Mapping QTL's for Blast Resistance and the Introgression of Major Genes and QTL's for Durable Blast Resistance in Rice 0 1 /04/99 - 3 11 1 2/03 45 29 - 29 Research on Development, Characterization and Bioassay of Transgenic Indica Rices Suitable for Eastem India 0 1/03/99 - 3 I 1 I 2/03 70 67 3 70 Marker Assisted Breeding for Bacterial Blight and Blast Resistance in Rice Varieties Adapted for Eastern India 0 I 108100 - 3 IIO7l03 20 8 5 13 Transformation of Rice with Gene Mannitol- I Phosphate Dehydrogenase in the Cytosol and Chloroplast Using Green Tissue-specific and Adscisic Acid Responsive Promotes - M.A.M. Zahed 01/03/00 - 26/07/03 26 17 9 26 Strengthening Intellectual Property and Technology Transfer Management at Key Centers of the Consultative Group on International Agricultural Research (CGIAR) 01/1 1/00 - 31/03/04 700 49 1 I61 652 Identification and Characterization of Genes that Have the Potential to Enhance Drought Tolerance in Rice (Tilling of Rice) 0 I IO9103 - 30/08/06 I35 - 15 15 Research on Economic Value of Rice Biotechnologies Recently Adopted by Asian Farmers 01/08/03 - 01/01/05 35 Increasing Productivity and Sustainability in Rainfed Rice: A Focus on Drought Prone Environments 01102/01 - 31/01/04 500 367 60 427 Predoctoral Fellowship - N.T. Hue 0111 1/01 - 31/03/04 IO I 7 8 Support for Post-Doctoral Fellow on Mass Screening of Rice for Drought Tolerance 0 I /04/02 - 3 I103/05 I50 19 55 74 (Forward) - j - ESHIBIT 2 Expenditures Grant Period Grant Prior Donor and ProgradProject (DDIRIRINY) Pledged Sears 2003 Total Progress Toward Developing Resilient Crops for Drought-Prone Areas 0 I /04/02- 3 I /03/05 146 92 27 I I9 Molecular Disection and Marker Assisted Breeding of Drought Tolerance in Rice 0 I IO4102 - 3 I IO3105 362 28 8s I16 Marker Aided Pyramiding of QTLs for Development of Drought Tolerant IR64 0 I /04102 - 3 1 /03/04 I I7 I03 8 I l l Screening Methods for Improving Grain Yield Under Reproductive Drought Stress in Rainfed Rice 0 1 /OW02 - 3 I /03/05 446 I44 I16 760 Training of NARES at lRRl to Support Bioinformatics Integration of Genetic, Genomic. Proteomic Data for Marker-Aided Selection for Drought Tolerance 0 I /04/02- 3 I /03/05 I44 31 49 so Economic Costs of Drou-eh t and Rainfed Farmers' Cropping System 0 1 /04/03- 3 I /03/04 93 SI 7 SS 3.789 1.949 715 2.664 Spain Spain-IRRI Collaborative Project 01/01/0? -3l/12/03 50 - 50 50 Switzerlatrd Lao-IRRI - Rice Research and Training Project Phase I V 01/07/00- 30/06/03 2,741 2.107 569 2.67G Lao-IRRI-Rice Research and Training Project Phase V 0 1 /07/03- 3 I / 17/05 1,852 - 322 322 The Irrigated Rice Research Consortium - Phase I I Irrigated Rice Research Consortium Coordination Unit 01/01/01 - 31/12/04 454 18 I72 I40 Reaching Towards Optimal Productivity WorkGroup 01/01/01 - 31/12/04 1,725 67 I 468 1,139 Impact: Technology Communication, Dissemination and Evaluation WorkGroup 01/01/01 - 31/12/04 317 52 151 203 Weed Ecology WorkGroup 01/01/01 - 31/12/04 I07 19 3 -7-7 Water Saving WorkGroup 01/01/01 - 31/12/01 161 GO 35 95 Rodent Management WorkGroup 01/01/01 - 31/12/04 146 GO 55 I I5 Junior Professional Officer (Dr. Braun) 0 I /OG/O 1 - 3 I /05/01 25s I43 95 738 Lao PDR Rice Biodiversity Project, Phase 2 01/01/03- 31/12/05 423 - 93 93 Rice Mutant Bank and Resource Platform for Functional Genomics 0 I /08/01 - 3 I /07/04 975 299 177 476 9,159 3,429 2,090 5.51Y United Kingdom Natural Resource Management for Rainfed Lowland and Upland Rice Ecosystems 01/01/03- 31/12/03 1,19s - 1.198 1.19s Poverty Elimination Through Rice Research Assistance 3 1/08/99- 3 1/08/01 14,777 6,505 3.722 10.227 Promotion of Integrated Weed Management for Direct Seeding of Rice on the Gangetic Plains 01/01/03- 31/03/05 77 - 22 22 Accelerating Poverty Elimination through Sustainable Resource Management in Coastal Lands Protected from Salinity Intrusion 0 I /04/00- 3 I I03103 40 I 34 I 2G 367 (Forward) - 6 - EXHIBIT 2 Expenditures Grant Period Grant Prior Donor and ProgradProject (DD/M MA’Y) Pledged Years 2003 Total Promotion of Cost-Effective Weed Management Practices for Lowland Rice in Bangladesh 01101103 - 31/03/05 152 - 12 1’ Determining the Nature and Function of Crop Associated Biodiversity for Sustainable Intensification of Rice-Based Production 0 I /04/00- 3 I /OSIO3 56 23 33 jG 16.661 6.869 5.043 1 I . Y I Z United States Ageiiq for Iiiteriratiorial Developmenr (USAID) The Development, Evaluation and Distribution of Tropical Rice with Provitamin A 0 I10 I IO I - 29/02/04 900 53 I 290 s2 I Golden Rice Network in Asia 01/01/03- 31/12/05 1,000 - 74 74 Testing, Comparing, NuMaSS: The Nutrient Management Suppon System 0 I /09/03- 30/09/07 45 - 2 -1 Assessing the Potential Scale and Impact of Transgenic Outcrossing to Wild and Weedy Rices in Vietnam 01/10/01 - 30/09/04 400 106 92 19s 2.345 637 458 1.095 United States Departmerit of Agricirlriire (USDA) Participatory Assessment of Social and Economic Impacts of Biotechnology I 5/09/0I - 14/09/05 120 4 14 IS KSU-Contribution of Three Defense Response Genes in Quantitative Disease Resistance 0 1/06/03- 0I /09/04 I50 - 37 37 KSU-Rice Deletion Mutant for Dissection of Quantitative Resistance I l/l2/00-31/07/03 49 17 32 49 319 21 83 104 World Bank Upgrading the International Rice Gene Bank Collection at IRRI 01/01/03- 31/12/05 1.164 - 333 333 Others IFAIPPIIIPI - Reaching Towards Optimum Products 01/01/01 - 3l/l?/04 432 133 91 -1-7 4 PPI/PPIC - Reaching Towards Optimum Products - Myanmar 0 I /07/02- 30/06/05 12 5 1 7 IFPRI-Rice Research, Technological Progress and Impacts on the Poor: The Bangladesh Case 01/09/00- 28/02/03 130 101 I S I I9 IFPRI-Breeding for Iron-Dense Rice: A Low Cost Sustainable Approach to Reduce Anemia in Asia 01/06/01- 31/12/04 230 190 37 227 Nunza BV - Further Development of IClS 0 I i04/02 - 3 I /03/05 GO - 24 24 Central Luzon Loop Survey - Wet Season 01/11/03- 31/03/04 15 - 4 4 Simulating Water and Nitrogen Interaction in the Rice-Wheat Cropping System 15/04/03- 14/04/04 IO - - - 889 429 176 605 Total Temporarily Restricted Agenda Funding 51.800 18,569 15,314 33.883 (Forward) 1llIUlIl 1111 lllllllllllllllllllllM l s lllllls 1111 - 7 - Expenditures Grant Period Grant Prior Donor and ProgradProject (D D /hl MNY ) Pledged Yean 2003 Total Challenge Program Water and Food 01/11/02 - 31/12/03 254 - 226 'ZS Genetic Diversity 01/01/03 - 31/12/03 16 - I6 I6 Biofortification 09/09/03 - 3 1 / 12/03 101 - 66 66 Total Challenge Program 37 1 - 310 310 Total 52,171 18.569 15.621 34.193 EXHIBIT 3 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF PROPERTY AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31,2003 (In Thousands of US Dollars) 2003 Balance Balance January I Addirions Disposals December 31 cost Physical Facilities 123 - - 123 Infrastructure and Leasehold 657 - - 657 Furnishing and Equipment Farming 2,919 177 (87) 3,009 Laboratory and scientific 9,332 556 (26 I 1 9,627 Office 1,995 56 (84) 1,967 Auxiliary units 4,544 99 (56) 4,587 Computers 4.280 653 (302) 4,63 I Vehicles 4.655 24 1 (512) 4.384 Sub-total 27,725 I .7S2 ( I .302) 28.205 Total cost 2S.505 1.782 (1.302) 28.985 Accumulated depreciation Physical facilities 23 7 - 25 Infrastructure and leasehold I67 IS - 185 Furnishing and equipment 19.512 1.956 ( 1 .I 84) 20.284 Total accumulated depreciation 19.702 I .976 (1.184) 20.494 Net book value Physical facilities IO0 (2) - 98 Infrastructure and leasehold 490 (18) - 472 Furnishing and equipment S.2 I3 ( 174) ( 1 IS) 7.92 I &SO3 ( 194) ( 1 18) 8.49 I IUl Sl 111 Sllllllill111UI IUll1ll1lll111 INTERiiATIONAL RICE RESEARCH ISSTITUTE DETAILS OF OPERATING EXPENSES FOR THE YEARS E h i E D DECEMBER 31,2003 AND 2002 (In Thousands of US Dollars) 2003 Research Research Technical General Programs Support Support Alnnagement Administration Total 1002 I . Unrestricted Personnel 3.006 622 909 1.274 - 5.81 I 9.10-1 Supplies. services and others 980 484 700 1.065 2.636 5.865 7 . 4 3 Operalional travel 45 I 29 211 425 - 1.116 723 Deprec ialioii 836 30 I 36 I 396 82 1.976 2 . 1 3 Tom1 opcntiiig COW 5.273 1.436 2.181 3.160 2.718 14.768 .19.442 Rccoverv of indirect COS& - - - ( 1.715) (1.715) ( I . 3 w Sub-total 5.273 1.436 2.181 3. I60 I .003 13.053 I8.014 2. Restricted Personnel 5.590 63 377 643 - 6.873 7.058 Supplies. services and otliers 6.664 - - - - 6.664 hi30 Opcntioiial Inwl 1.773 - - 4 - 1.777 1.731 Sub-total 14.027 63 377 647 - 15.314 15.519 3. Challenge Program Personnel 111 - - - - 1 1 1 - Supplies. services and olliers 69 - - - - 69 - Operational tnvel 130 - - - - I30 - Sub-total 310 - - - - 310 - Total 19.610 1.499 2.558 4.007 1.003 28.677 33.563 EXHIBIT 5 IKTERNATIOKAL RICE RESEARCH INSTITUTE CALCULATION OF INDIRECT COST FOR THE YEARS ENDED DECEMBER 31,2003 AND 2002 (In Thousands of US Dollars) 2003 2002 Indirect Costs Administrative expenses 2,734 2,565 Common sustenance services 2,343 2.379 5,077 4.944 Direct Costs Research programs 21 ,454 23,819 Research support 3,206 3,596 Operations 389 800 Total 25,049 28.2 15 Less overhead recovery 1,715 1.398 23,334 26.81 7 Total Operating Costs 28,411 31.761 Indirect Cost Rates: Indirect costs 5,077 3.944 Total operating costs 28,411 31,761 17.87Yo 15.57% Indirect costs 5,077 4,934 Direct costs 23,334 26,817