2024 FINANCIAL STATEMENTS 3 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Herd of Cattle, Debre Zeit, Ethiopia Photo credit: ILRI/ Apollo Habtamu. 4 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 © 2025 International Livestock Research Institute (ILRI) This publication is copyrighted by the International Livestock Research Institute (ILRI). It is licensed for use under the Creative Commons Attribution 4.0 International Licence. To view this licence, visit https:// creativecommons.org/ licenses/by/4.0. Unless otherwise noted, you are free to share (copy and redistribute the material in any medium or format), adapt (remix, transform, and build upon the material) for any purpose, even commercially, under the following condition: ATTRIBUTION. The work must be attributed, but not in any way that suggests endorsement by ILRI or the author(s). NOTICE: For any reuse or distribution, the license terms of this work must be made clear to others. Any of the above conditions can be waived if permission is obtained from the copyright holder. Nothing in this license impairs or restricts the author’s moral rights. Fair dealing and other rights are in no way affected by the above. The parts used must not misrepresent the meaning of the publication. ILRI would appreciate being sent a copy of any materials in which text, photos etc. have been used. ISBN: 92-9146-849-5 Citation: International Livestock Research Institute. 2025. ILRI 2024 financial statements. Nairobi, Kenya: ILRI. Text by Martyn Jeggo, Appolinaire Djikeng and Robert Nzioka. Statements prepared by Robert Nzioka. Edited by Anne Kibe, Peter Mativo and Paul Karaimu. Cover photo: ILRI thanks all donors that globally support its work through their contributions to the CGIAR Trust Fund. Patron: Professor Peter C Doherty, AC, FAA, FRS Animal scientist, Nobel Prize Laureate for Physiology or Medicine–1996 Box 30709–00100, Nairobi, Kenya ilri.org Box 5689, Addis Ababa, Ethiopia Phone: + 254 20 422 3000 better lives, better planet Phone: + 251 11 617 2000 Fax: + 254 20 422 3001 through livestock Fax: + 251 11 667 6923 Email: ILRI-Kenya@cgiar.org Email: ILRI-Ethiopia@cgiar.org ILRI has offices in East Africa • South Asia • Southeast and East Asia • Southern Africa • West Africa 5 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 CONTENTS Organization information 8 Board of Trustees 8 Senior management team 8 Statement of purpose 9 Statement by the chair of the Board of Trustees 12 Statement of management responsibilities 17 ILRI Board statement on risk management 18 Five-year financial review 20 Independent Auditor’s report to the trustees of International Livestock Research Institute (ILRI) 25 Financial Statement Consolidated statement of financial position 27 Consolidated statement of activities and other comprehensive income 28 Consolidated statement of changes in net assets 29 Consolidated statement of cash flows 30 Notes to the consolidated financial statements 32 Note 32 (a): Detailed grant revenues and accounts receivable/payable for the year ended 31 December 2024 (USD ‘000) 67 Note 32 (b): Detailed grant pledges and expenses for the year ended 31 December 2024 (USD ‘000) 77 Note 33: Detailed statement of activities for the year ended 31 December 2024 (USD ‘000) 91 Note 34: Detailed statement of financial position for the year ended 31 December 2024 92 6 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Cattle coming in from the fields in the evening in Lhate Village, Chokwe, Mozambique (photo credit: ILRI/Stevie Mann). 7 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 8 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 ORGANIZATION INFORMATION Board of Trustees Name Country Period Martyn Jeggo UK/Australia Chair (appointed May 2024) Andrew Peters UK Vice chair (appointed May 2024) Elsa Murano USA Left May 2024 Jonathan Mueke (voting) Kenya Host country member (joined August 2023) Regassa Fikru Ethiopia Host country member (joined September 2020) Lindiwe Majele Sibanda Zimbabwe Appointed April 2021 (left May 2024) Alyssa Jade McDonald-Baertl Australia Appointed October 2020 (left May 2024) Hilary Wild UK Appointed October 2020 (left May 2024) Neal Gutterson United States Appointed October 2020 (left May 2024) Patrick Caron France Appointed October 2020 Shenggen Fan China Appointed October 2020 (left November 2024) Alice Ruhweza Uganda Appointed October 2020 (left May 2024) Li Lin Foo Malaysia Appointed May 2024 Jing Zhu China Appointed May 2021 (left May 2024) Cliff Lamb USA Appointed May 2024 Wondwossen Gebreyes USA Appointed May 2024 Jessica Fanzo USA Appointed November 2024 Maria Helena Semedo Cape Verde Appointed November 2024 Anne Eriksson Kenya Appointed November 2024 Appolinaire Djikeng (non-voting) USA Director general (appointed April 2023) Senior management team Name Country Position Appolinaire Djikeng USA Director general (appointed April 2023) Shirley Tarawali UK Assistant director general - Board Secretary Iain Wright UK Deputy director general (DDG) Research and Development – Integrated Sciences (retired in May 2024) Fabian Kausche USA DDG Research & Innovation (joined August 2024) Moyo Siboniso Zimbabwe Deputy Director General (Partnerships) and Impact. Michael Gerba USA Director Corporate Services Stella Kiwango Tanzania Director People and Organizational Development (retired in December 2024) Namukolo Covic Zambia Director general’s representative to Ethiopia, Robert Nzioka Kenya Chief financial officer Advocates Auditors Oraro & Co Advocates PricewaterhouseCoopers LLP ACK Garden Annex, 6th Floor Certified Public Accountants 1st Ngong Avenue PwC Towers, Waiyaki Way, Westlands PO Box 51236–00200 PO Box 43963–00100 Nairobi, Kenya Nairobi, Kenya Address International Livestock Research Institute International Livestock Research Institute Box 30709, Nairobi 00100, Kenya Box 5689, Addis Ababa, Ethiopia Phone +254 20 422 3000 Phone +251 11 617 2000 Fax +254 20 422 3001 Fax +251 11 667 6923 Email ilri-kenya@cgiar.org Email ilri-ethiopia@cgiar.org ilri.org 9 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 STATEMENT OF PURPOSE The International Livestock Research Institute (ILRI) congruent with CGIAR, envisions the world with sustainable and resilient food, land and water systems that deliver diverse, healthy, safe, sufficient and affordable diets, and ensure improved livelihoods and greater social equality, within planetary and regional environment boundaries. Following Board approval, ILRI’s corporate strategy 2024-2030 Unlocking sustainable livestock’s potential through research for better lives and a better planet commenced in 2024. The institute’s mission is that people’s lives in low- and middle-income countries are improved through livestock science that contributes to equitable and resilient livestock systems to deliver food systems transformation with climate and environmental benefits. Thus, ensuring better lives and a better planet through livestock. ILRI’s t two strategic objectives aim to deliver improved lives for 300 million people: Co-design and deployment of sustainable science-based livestock solutions Leveraging science for policy and investment decisions CGIAR ILRI is a CGIAR research centre, a global research partnership that unites organizations engaged in research for a food-secure future. CGIAR research is dedicated to delivering science and innovation that advance the transformation of food, land and water systems in a climate crisis. Built on a strong partnership between CGIAR’s funders and One CGIAR research centres, the governance model focuses on enabling CGIAR’s centres and partners to conduct high-quality research for development based on a solid foundation of clearly defined roles, responsibilities, and accountabilities. Research is carried out in close collaboration with multiple partner organizations, including national and regional research institutes, civil society organizations, academia and the private sector. The CGIAR Research and Innovation Strategy to 2030 provides an overview of how CGIAR will develop and deploy its capacities, assets and skills to address priority global and regional challenges with partners. Through to the end of 2024, the strategy was undertaken through a series of Initiatives that integrated CGIAR research centres’ capacities to address crucial development challenges. ILRI scientists led three such Initiatives: Livestock, Climate and Systems Resilience (LCSR); Sustainable Animal Productivity for Livelihoods, Nutrition and Gender inclusion (SAPLING) and Protecting Human Health through a One Health approach. ILRI participated and contributed livestock science to 11 other Initiatives and hosted directors of the CGIAR impact platforms on gender equality, youth and social inclusion; climate adaptation and mitigation, and environmental health and biodiversity. The institute also hosts and manages the CGIAR Antimicrobial Resistance (AMR) Hub. Within ILRI, research staff worked on research programs to develop and deliver science-based practices, provide scientific evidence for decision-making, and develop capacities of livestock-sector stakeholders. Partnership research ILRI works with partners worldwide to achieve its mission. As a relatively small institute with a large global mandate, partnership remains the institute’s fundamental modus operandi. The institute strives for partnerships and alliances with purpose through intentionally cultivating purpose-driven partnerships and alliances to maximize impact on people’s lives, locations and staff ILRI is co-hosted by the governments of Kenya and Ethiopia and has offices in nine other countries in Africa (Burkina Faso, Burundi, Ghana, Mali, Nigeria, Senegal, Tanzania, Uganda and Zimbabwe) and three offices in Asia (India, Nepal and Vietnam). In 2024, ILRI had 641- permanent staff. Out of the total number of permanent staff, 135 were internationally recruited staff comprising 40% female. Several scientists at ILRI hold joint appointments with other partner institutions. ILRI also engaged 151 consultants and 80 contractors in 2024. Governance The Board of Trustees (the Board) is comprised of outstanding professionals with expertise in the fields of livestock science, agricultural research, development, fiduciary and corporate management. The Board serves as the governing body of the institute primarily through its governance and oversight roles to ensure that ILRI functions to the highest standard to execute its mission and deliver on its strategy. The Board ensures that plans and programs are appropriate for carrying out ILRI’s mandate, that they are in line with CGIAR priorities and that they are aligned with the institute’s mission. The Board has fiduciary responsibility for ILRI’s financial resources. 10 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 A cow is taken across the Black Volta river border from Burkina Faso to a cattle market in Ghana. Funding ILRI is financed by and through the CGIAR by a trust fund from multiple donors, major multilateral and bilateral donors, foundations, and governments. Funding for the CGIAR Initiatives was disbursed using a three-window modality. For Window 1 and 2, funds are allocated to Initiatives, payment of system costs and any other use required to achieve CGIAR’s mission. Window 3 funds are contributions designated by the fund donors to individual CGIAR centres for specific pieces of work. Bilateral funds are from a diverse number of public, governmental, foundations and private organizations from the North and South. In-kind support from national partners, particularly Kenya and Ethiopia, as well as from other countries and international collaborators, is substantial and vital. This mix of generic, specific and in-kind resources is essential for the diverse research ILRI conducts. ILRI acknowledges the countries and organizations that supported its, research in 2024, which are listed in note 32 (a) and 32 (b). The institute could not have advanced its mission without their diverse support. Signed on behalf of the Board of Trustees by: ______________________________ Appolinaire Djikeng Director general 15 April 2025 11 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 CORPORATE GOVERNANCE The basic principles and rules concerning the organization and operation of the Board of Trustees of the International Livestock Research Institute (ILRI) are laid down in the institute’s constitution and in the Board’s rules of procedure. During 2024, following CGIAR approval of the Unified Governance Review memorandum, the Board approved amendments to the ILRI constitution. The amendments concerned the Board’s composition, and the Board’s program and Audit, Finance and Risk committees. ILRI Board committees All Board members are invited to be members of the Program Committee which addresses all matters regarding the conception, elaboration, implementation and evaluation of the institute’s programs of research, training and information. The committee provides recommendations for Board consideration concerning program implementation and resourcing. All Board members are invited to be members of the Audit, Finance and Risk Committee (AFRC) which addresses all matters relating to ILRI’s accounting and financial management practices, internal controls, and audit results, both external and internal, and institutional risk assessment and management. The committee recommends to the Board whether it should accept the external audit reports and suggests courses of remedial action if any, which should be implemented to follow up on audit findings. This committee also determines whether the internal control and audit systems established are adequate and whether the internal audit function is efficient and effective. A member of the CGIAR AFRC (Anne Eriksson) was appointed as an ILRI Board member in November 2024. Frequency of Board meetings The Board of Trustees met twice during the year in May (Q2, in Addis Ababa) and in November (Q4 in Nairobi). Both meetings offered a hybrid format although most members were present in person. Board committee meetings together with opportunities for the Board to visit ILRI facilities and meet with staff integral to the meetings. External audit ILRI’s auditors are appointed by the Board for a period of six years. The current auditors, PricewaterhouseCoopers LLP (PwC), were appointed in September 2020 for the first six-year term beginning January 2021 and renewable subject to performance. The Board confirmed PWC reappointment for the financial year (FY) 2024. The external auditors present and discuss the annual audited financial statements, their final audit opinion, and their associated management reports on internal controls with the Audit, Finance and Risk Committee. _______________________ Martyn Jeggo Chair, Board of Trustees April 2025 12 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 STATEMENT BY THE CHAIR OF THE BOARD OF TRUSTEES I commenced my term as ILRI Board chair mid-way through 2024 and would like to acknowledge the outstanding leadership of the Board provided by my predecessor, Elsa Murano, who completed her Board term after the Q2 meeting in May 2024. The whole Board and ILRI as an institute along with CGIAR remain indebted to Murano for her steadfast and straightforward handling of the opportunities and challenges during the years of CGIAR transition. Thanks to this, ILRI remains in an excellent position, both within CGIAR and globally as the foremost livestock research for development institute. The year 2024 also marked the 50th anniversary for ILRI, building on 20 years of each of its predecessors, the International Livestock Centre for Africa (ILCA) and the International Laboratory for Research on Livestock Diseases (ILRAD), which were merged in 1994 to form ILRI. To recognize the 50 years of achievements and partnerships, to build on these for ILRI’s new corporate strategy 2024 to 2030, and engage with many past, present and prospective partners, the institute held several events around the world. Events took place in Vietnam, India, Rwanda, Ethiopia, Kenya, Tanzania, USA , Uganda and Senegal (early in 2025). The events also served to raise the profile of livestock, and the underpinning research to address today’s major development challenges, particularly the nexus of climate challenges and food systems transformation. Livestock research conducted by ILRI seeks to unlock the potential of sustainable livestock to impact 300 million peoples’ lives in low- and middle-income countries through contributing to equitable and resilient livestock systems that deliver food systems transformation with climate and environmental benefits. The research contributes to CGIAR’s five impact areas 1) Nutrition, Health, and Food Security; 2) Poverty Reduction, Livelihoods and Jobs; 3) Gender Equality, Youth and Social Inclusion; 4) Climate Adaptation and Mitigation; and 5) Environmental Health and Biodiversity, and to the Sustainable Development Goals, particularly the eight where livestock make direct contributions. In 2024 ILRI research contributed to the CGIAR Research and Innovation Strategy to 2030 through CGIAR Initiatives (which integrate CGIAR research centres’ capacities to deliver development outcomes and impacts) as well as through its bilateral research projects. ILRI scientists continued to lead three livestock-focused Initiatives: Livestock, Climate and Systems Resilience (LCSR); Sustainable Animal Productivity (SAPLING) and Protecting Human Health through a One Health approach, and ILRI participated in and contributed livestock science to 11 other Initiatives. ILRI hosts three of the five CGIAR impact area platform directors: gender equality, youth and social inclusion, climate change adaptation and mitigation, and environmental health and biodiversity. The ILRI Board program committee reviewed reports from programs and Initiatives led by ILRI. It considered ILRI research in the context of food system transformation and climate change, and, with some modifications, at the Q4 meeting, approved ILRI’s Research and Innovation Strategy in relation to these global challenges. ILRI’s leadership in livestock research for LMICs has delivered important results during 2024, among which: ILRI teams have continued to advance the approaches for working at the scaling interface, engaging with multiple partners to deliver solutions at scale. In Sudan, engagement brought together animal health, animal feeds and human nutrition. Over 1.6 million livestock vaccines provided protection for 50-80% of the animals in two states from major diseases, training on fodder production was provided and women were trained on the importance of milk and meat for childhood nutrition. Pestes des petites ruminants (PPR) is a devastating disease which hurts livestock economies and threatens food security worldwide, especially for families reliant on sheep and goats. The disease has a global reach, and its economic impact is estimated at USD 1.2-1.7 billion annually. To combat this threat, a global effort is underway to eradicate PPR by 2030. A thermotolerant vaccine for PPR was developed at ILRI with partners. Building on this, ILRI has facilitated a public-private partnership leading to a new vaccination drive in central Mali targeting 1 million PPR vaccine doses for sheep and goats across 35,000 small ruminant-keeping households. These efforts are further strengthened by training 40 veterinarians in the regions of Sikasso and Ségou on best practices for livestock vaccination. ILRI’s team played a major role in the first World One Health Congress held in Africa. Among the teams’ engagements were over 100 talks and posters, contributing to many sessions, panels and events as well as keynote interventions from ILRI’s senior leadership. A new landmark report on ‘Eating wild animals: rewards, risks and recommendations’ was launched during the congress, describing an innovative ‘Eco-Epi-Well-Wel’ approach that aims to reframe current understanding of the wild meat trade and offer practical ways to make it fairer, safer and more sustainable. ILRI scientists engaged with the African Union - Inter African Bureau for Animal Genetic Resources (AU-IBAR) to support the inclusion of livestock as part of the post-Malabo Comprehensive Agenda for Africa Agriculture Development Program (CAADP) process, including the development of four memoranda on livestock indicators, 13 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 animal-source foods, pastoral systems and feed balance assessment. Livestock dimensions are well-represented in the recently released Kampala Declaration of the African Union. ILRI continues to lead the way on integrating gender into livestock solutions. Strategic work has pioneered transformative and accommodative approaches in Ghana, Uganda, Tanzania, Vietnam and Ethiopia. Tools developed by ILRI’s teams to better integrate gender into international development efforts (WELI – Women’s Empowerment in Livestock Index and WELBI – Women’s Empowerment in Livestock Business Index) continue to be widely adopted by diverse actors including international NGOs and governments and the private sector. ILRI has also worked together with the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD) and the World Bank to develop a framework for Gender Responsive Livestock Development training. Gender has been specifically integrated into a feed assessment resource, G-FEAST, which is being widely adopted. Innovative approaches for the identification of superior bulls across the national dairy herd in Ethiopia has enabled such germplasm to be incorporated into the national breeding program supporting crossbreeding by smallholders. Ethiopia’s dairy sector offers immense potential to enhance nutrition, strengthen food security and boost economic growth. ILRI in collaboration with the Ethiopian government, plays a pivotal role in addressing systemic challenges in this sector through genetic improvement and feed, livestock health and productivity enhancement through sustainable practices. The Ethiopian Ministry of Agriculture, in partnership with ILRI, unveiled the National Dairy Development Strategy in December 2023 which paved the way for ILRI to sign a memorandum of understanding (MoU) with seven Ethiopian universities: Adigrat, Aksum, Raya, Mekele, Jimma, Bonga and Ambo to further dairy development. Beyond dairy in Ethiopia, ILRI’s team contributed to the development of a livestock and fisheries investment handbook for the Ministry of Agriculture, Agricultural Investment and Inputs Supply Sector, a proclamation for Commercialization of Agricultural Research, and the amendment of regulation for the establishment of Ethiopian Institute of Agricultural Research. ILRI plays a leading role in research on livestock and the environment, particularly climate change adaptation and mitigation in low- and middle-income countries (LMICs). Among the adaptation efforts are novel innovations supporting sustainable intensification and better access to climate information. Over half a million farmers and livestock keepers were reached in 2024 in Senegal, Ethiopia and Kenya. Innovations include digital interventions, agro-advisories and web-based tools. In Ethiopia the national AgData Hub is hosted by the Ministry of Agriculture, and in Kenya the AgData Hub together with KAZNET (providing demand-driven market intelligence for livestock keepers in drylands of Ethiopia and Kenya) have been integrated into the Kenya Agricultural Observatory Platform, which is managed by the Kenya Agricultural Research Organization. ILRI teams were able to implement the first use of a drone to measure ruminant methane emissions in Africa, positioning for research to evaluate the relationship between livestock system nutrient circularity and greenhouse gas (GHG) emissions along with a remote sensing component that will enable new measurement technologies. Measuring methane from ruminants is a crucial piece of the puzzle to tracking emissions in the agriculture sector to improve national GHG inventories and to measure the reductions of mitigation strategies. This is important for accurate GHG reporting and for national efforts to reduce emissions towards Nationally Determined Contributions (NDCs). The year 2024 also saw the launch of the Livestock and Climate Solutions Hub, an innovative construct to build on ILRI’s expertise in low emission, climate-smart solutions, its connections to multiple stakeholders and engagement in both climate mitigation and adaptation research. Multiple actors across research, development, government and investment have committed to engage with the institute to support a better coordinated response to these immense challenges. The Ministry of Agriculture and Livestock Development (MoALD), the Government of Nepal, and ILRI signed an MoU that marked a pivotal moment in fostering collaborative efforts aimed at elevating the agricultural and livestock sector in Nepal. The agreement provides a robust framework for taking research and development to scale, involving development agencies and the private sector and public sectors at all levels of government, contributing to better lives, better planet through livestock in Nepal. Indichick, a new genetic single nucleotide polymorphism (SNP) chip which can identify native chicken breeds to a specificity of around 97%, was launched by ILRI and the Indian Council of Agricultural Research (ICAR) in India. The SNP chip can also be used for genomic selection to improve economically important performance traits in native as well as improved chicken breeds and populations and covers the most important SNPs found in the whole genomes of native and improved exotic chicken breeds in India. Growing capacity to do research is an area in which ILRI continues to contribute to ensure that there is a sustainable pool of the next generation of livestock scientists in the Global South. In 2024, ILRI hosted 131 graduate fellows, pursuing either MSc or PhD. Of these fellow, 46% were female. 14 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 During 2024, ILRI formed new strategic partnerships with the University of California, Davis, UM6P (Mohammed VI Polytechnic University, Morocco), and the University of Queensland, Australia. A new MoU linking research with media was signed between ILRI and the Vietnam Agriculture Newspaper (VAN), the leading media company representing the agriculture sector in the country. ILRI has continued to engage and raise the profile of sustainable livestock solutions in multiple global events. The institute: ● Co-hosted ‘Pastures of plenty’ with 10 organizations at New York Climate Week, 150 in-person and virtual participants to explore climate-smart solutions.  ● Participated at the United Nations General Assembly AMR meeting focused on global health and climate resilience.  ● Engaged in UNEA-6, participating in five key events, including a side event on the publication ‘What’s cooking’, which examined the impact of novel alternatives to conventional animal products.  ● Expanded its presence at the 2024 Africa Food Systems Forum (AFSF), participating in over 19 events to integrate livestock into the broader food systems agenda.  ● Celebrated the 25th anniversary of the Vietnam-ILRI partnership, and the One Health Day 2024 on the occasion of the 50th anniversary of ILRI. The Ministry of Agriculture and Rural Development, in collaboration with ILRI, organized the One Health Scientific Conference on 16 October where experts from 10 countries gathered. The ‘One Health scientific conference: International practices and lessons learned for Vietnam,’ shared practical experiences in implementing One Health initiatives, showcasing successful One Health models from Africa, the Americas and Asia. The event fostered cross-sector and cross-regional cooperation to improve health and prevent zoonotic pandemics in Vietnam and across the Global South and built upon ILRI’s central role in Vietnam’s One Health Partnership. ● Joined the UN Convention on Biological Diversity (COP16) discussions around digital sequencing information and benefit sharing mechanisms advocating for inclusion of livestock. ILRI also held a roundtable dinner on livestock and biodiversity with GIZ, AU-IBAR, World Wide Fund for Nature (WWF) and SNV. A brief on livestock and biodiversity was shared and discussed.  ● Participated in the Borlaug Dialogue where Appolinaire Djikeng, the director general, was selected in the initial group of Top Agrifood Pioneers. In addition, ILRI co-hosted with Iowa State University a session on Unlocking sustainable livestock’s potential through science and partnership that bridge continents and generations with more than 75 participants attending. Djikeng was on a plenary panel on Advancing the field: sparking innovation in animal agriculture and Shirley Tarawali participated in a breakout event on Methane mitigation as a part of the triple win: Barriers and opportunities for private sector action in the ruminant meat and complementary protein sectors. ● Participated in a high-level forum on pastoralism, Nouakchott+10, in the Mauritanian capital on 6-8 November 2024. ILRI has collaborated significantly with the Permanent Inter-State Committee for Drought Control in the Sahel (CILSS) through strategic studies, such as intra-regional cattle trade and demand for meat in West Africa. ILRI also regularly participates in meetings of the Regional Technical Sub-Committee on Animal Health, among others. Partnered with the Tanzania Ministry of Livestock and Fisheries, the Food Action Alliance and AGRA in organizing the Poultry Futures Forum, held in Tanzania on 16–17 October. The forum marked a significant milestone in advancing the Southern African Poultry Initiative, where the institute will continue to collaborate and drive partnerships to develop and implement a multi-year, multi-stakeholder poultry action and investment plan. ILRI’s staff continue to serve in significant capacities globally, as well as to receive global accolades. Among these in 2024 were: ● Namukolo Covic joined a task force reviewing Africa’s Regional Nutritional Strategy (ARNS) (2015–2025) to develop the next 10-year strategy for 2026–2035. She was also appointed to the supervisory boards of the Netherlands Food Partnership and the University of Bonn Center for Development Research (ZEF). Covic was also appointed by the Ministry of Planning and Development to be on Ethiopia’s National Steering Committee and Technical Working Group on the Ethiopia Agricultural Sample Enumeration. 15 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 ● Namukolo Covic joined a task force reviewing Africa’s Regional Nutritional Strategy (ARNS) (2015–2025) to develop the next 10-year strategy for 2026–2035. She was also appointed to the supervisory boards of the Netherlands Food Partnership and the University of Bonn Center for Development Research (ZEF). Covic was also appointed by the Ministry of Planning and Development to be on Ethiopia’s National Steering Committee and Technical Working Group on the Ethiopia Agricultural Sample Enumeration. ● Anna Lacasta was appointed executive secretary from 2025 to 2028 for the Global African swine fever Research Alliance (GARA) Executive Committee. ● Sophia Huyer was appointed co-chair of the Gender Advisory Board, UN Commission on Science and Technology for Development. ● Appolinaire Djikeng was selected by the Scotland’s Rural College for the Meritorious Honorary Fellow award. Jean-Baka Domelevo Entfellner was appointed by the French regulatory authority for audiovisual and digital communications, to sit in the board of directors for the public company in charge with TV and radio broadcasting overseas, and comprising Radio France Internationale (RFI), France 24 and Monte Carlo Doualiya (MCD). With Board approval of ILRI’s corporate strategy, as well as its underpinning research, innovation and impact strategy, the institute has reorganized the research directorates to better align with these strategies. Directorates for research and innovation, and for partnerships and impact will work closely and across other ILRI functions to deliver to these strategies. In 2024, the Board held the two regular biannual meetings in May (Q2) in Addis Ababa, Ethiopia, and in November (Q4) in Nairobi, Kenya. Both meetings were in hybrid format. Many ILRI Board members, including myself as ILRI Board chair, engaged throughout 2024 in CGIAR-wide processes, including the Board chairs’ network. I am pleased to report that the ILRI Board, in addition to its usual business of review and approval of financial, audit and risk matters, including approval of the internal audit plan, approved: ● amendments to the ILRI constitution congruent with the CGIAR approved memorandum on unified governance, ● amendments to CGIAR governing documents (framework and charter), ● ILRI’s corporate and research, innovation and impact strategies ● new terms of reference and member profiles for the ILRI Board Audit, Finance and Risk Committee, ● revised ILRI policies on external audit and the internal audit charter, and ● a legal resolution for ILRI registration in South Sudan. The Board also endorsed the CGIAR Integrated Partnership Risk and oversight Plan. There were several changes and updates to Board membership during 2024: ● The Board chair, Elsa Murano completed her term after the Q2 meeting of 2024, and I took over in the role of ILRI Board chair. ● With the changes to ILRI’s constitution resulting from the CGIAR governance memorandum, the ILRI Board welcomed several new (and reappointed) members in 2024. These changes also meant that former System Board members Lindiwe Majele Sibanda, Hilary Wild, Alyssa Jade McDonald-Baertl, Neal Gutterson, Alice Ruhweza completed their ILRI Board terms in May 2024 and Shenggen Fan completed his term in November 2024. I would like to take this opportunity to recognize and thank these members for their contributions since 2020. ● CGIAR Integrated Partnership Board members Patrick Caron and Jessica Fanzo were appointed in November 2024 as ILRI Board members. Anne Eriksson was appointed as the IPB-AFRC member of the ILRI Board. ● It was a pleasure to welcome Li Lin Foo, Andy Peters, Cliff Lamb and Wondwossen Gebreyes as ILRI Board members in May 2024 and Maria Helena Semedo in November 2024. ● With my appointment as Board chair, Andy Peters stepped in as vice chair. 16 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 ILRI management continues to ensure that Window 3 and bilateral resources, which constitute most of the funding, are aligned and contribute to the CGIAR Research and Innovation Strategy. ILRI has a broad resource mobilization strategy that aligns resources with CGIAR objectives. I certify that, to the best of my knowledge and belief, that, i. all members of the Board of Trustees, and any centre staff as may be required under the centre’s policies, have made a signed declaration of conflicts of interests, whether perceived or actual, and appropriate action has been taken to manage any such conflicts, ii. the Board of Trustees has carried out an annual evaluation of the director general’s performance in accordance with the centre’s human resource policies, iii. the Board of Trustees has carried out an annual evaluation of the performance of the Board chair, the Board secretary and the overall functioning of the Board and its committees; and the Board and all committees have complied with their respective mandates and terms of reference. The Board is pleased to note the continued financial health and stability and the sound and prudent management of the institute’s financial resources. In 2024, ILRI had an operating budget of USD 103.3 million. Revenue in 2024 amounted to USD 96.6 million against expenditure of USD 92.3 million resulting in a surplus of USD 4.3 million. The Board remains confident that based on sound financial and programmatic planning, management and implementation, the institute remains well positioned to deliver on its mission. The Board would like to thank all ILRI staff for their continued commitment and hard work. On behalf of the members of the Board, I thank our investors and partners for their confidence and continued support that is allowing the institute to fulfil its mission. _________________________ Martyn Jeggo Chair, Board of Trustees 15 April 2025 17 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 STATEMENT OF MANAGEMENT RESPONSIBILITIES Management is required to prepare consolidated financial statements for each financial year, which give a true and fair view of the state of affairs of the institute and its subsidiary as at the end of the financial year and of the consolidated results of activities and cash flows of the institute and its subsidiary for that year. Management is also required to ensure that the institute keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the institute and its subsidiary. They are also responsible for safeguarding the assets of the institute and its subsidiary. Management is responsible for the preparation and fair presentation of these financial statements in accordance with IFRS Accounting Standards and for such internal controls as trustees determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with IFRS. Management is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the institute and its subsidiary and of its consolidated results of activities and cash flows. Management further accepts responsibility for the maintenance of accounting records, which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control, selecting and applying appropriate accounting policies and making accounting estimates and judgments that are reasonable in the circumstances. The Board of Trustees exercised its responsibility for these financial statements through the Finance and CGIAR Audit, Finance and Risk committees. The committees interact regularly with management, internal auditors and external auditors to review matters relating to financial planning, financial reporting, risk management, internal control and auditing. Nothing has come to the attention of management to indicate that the institute and its subsidiary will not remain a going concern for at least the next 12 months from the date of this statement. Signed on behalf of management by: _______________________ ________________________ Appolinaire Djikeng Robert Nzioka Director general Chief financial officer 15 April 2025 15 April 2025 18 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 ILRI BOARD STATEMENT ON RISK MANAGEMENT The ILRI Board has an overall responsibility for overseeing the institute’s internal control and risk management systems and for reviewing their adequacy and effectiveness in alignment with CGIAR principles and guidelines adopted by all CGIAR centres. This process lends support to the role of management in implementing the various policies on risk and control, which have been approved by the Board. Under an Enterprise Risk Management (ERM) approach, the goal is not to control or avoid all risk, but rather to take advantage of opportunities, while reducing or mitigating threats within the institute’s risk’s appetite. The institute’s risk appetite approach is to minimize its exposure to reputational, operational and financial risk, whilst recognizing, accepting and encouraging an appropriate degree of risk in pursuit of its mission and objectives. It recognizes that its appetite for risk varies according to the activity undertaken, and that its acceptance of risk is subject always to ensuring that potential benefits and risks are fully understood before developments are authorized, and that sensible measures to mitigate risk are established. The Board receives recommendations from the Audit, Finance and Risk Committee (AFRC) based on its review and determination of the levels of different categories of risk, whilst management and unit/program heads are delegated the responsibility to manage risks related to their respective units/programs. The process requires the unit/program heads to identify and assess the relevant risks in terms of likelihood and magnitude of impact (each on a four-point scale), as well as to identify and evaluate the adequacy and effectiveness of applying the mechanisms in place to manage and mitigate these risks and how these change over time. Key risks, which include strategic, programmatic, operational, financial, reputational, and staff and stakeholder risks that are inherent in the nature of the institute’s activities are identified and assessed at unit and program level, then deliberated at the Institute Management Committee and significant risks are communicated to the Board at their scheduled meetings. The institute endeavours to manage risk by ensuring that mitigation actions are undertaken, which include making sure appropriate infrastructure, controls, systems and people are in place throughout the institute. Key practices employed in managing risks and opportunities include business environmental scans, clear policies and accountabilities, transaction approval frameworks, financial and management reporting, and the monitoring of metrics designed to highlight positive or negative performance of individuals and business processes across a broad range of key performance areas. ILRI’s Emergency Preparedness Plan remains in place, including (i) a Crisis Management Team, (ii) Crisis Response Teams on its Kenya and Ethiopia campuses and iii) Task force(s) that are constituted as needs arise. These interlocking committees worked seamlessly to develop and communicate guidelines to ILRI staff around the world and those of the centres ILRI hosts in Kenya and Ethiopia. ILRI regularly updates its supporting crisis management and risk management plans to guide the multiple mitigation and business continuity processes. The design and effectiveness of the risk management system and internal controls is subject to continuous review by the institute’s Internal Audit Unit, which is independent of the business and research units, and which reports on the results of its audits directly to the director general and to the Board. Taken together, the Board is satisfied with the attention paid by management to risk. Regarding ILRI’s 2024 financial statements and the effectiveness of internal controls over financial reporting, the CGIAR Audit, Finance and Risk Committee reviewed management’s assertions in its 2024 Management Letter (provided to the external auditors) and Management’s Statement of Responsibility for Financial Reporting included as part of the annual financial statement and its assertions that internal controls are adequate. _________________________________ Martyn Jeggo Chair, Board of Trustees 15 April 2025 19 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 A goat on a farm in Ghana’s Upper West Region, which has suffered failed rains and rising temperatures. Credit: ©2010CIAT/NeilPalmer 20 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 FIVE-YEAR FINANCIAL REVIEW December 2024 Management Accounts   2020 US$ ‘000’ 2021 US$ ‘000’ 2022 US$ ‘000’ 2023 US$ ‘000’ 2024 US$ ‘000’ CGIAR Benchmarks Income 76,257 97,042 84,084 82,809 96,653   Expenses 75,483 94,574 83,259 80,194 92,317   Surplus/ (Loss) 774 2,467 825 2,615 4,336   Assets             Non-current 21,807 23,917 23,517 21,985 22,387   Current 84,500 79,919 70,086 62,293 76,224   Total Assets 106,308 103,836 93,603 84,278 98,611   Net Assets & Liabilities             Net Assets 35,627 38,094 38,919 42,151 45,734   Non-current Liabilities 6,172 6,295 6,642 3,034 2,928   Current Liabilities 64,509 59,447 48,042 39,093 49,948   Total Net Assets & Liabilities 106,308 103,836 93,603 84,278 98,610   Short term stability Indicator liquidity (days) 125 104 111 123 125 CG Min 90- 120 days Long term stability Indicator (days) 99 67 71 91 102 CG Min 75-90 days Expenses per day 160 196 198 188 210   Working capital 19,992 20,472 22,044 23,200 26,276 - Gross operating expediture 75,483 94,574 83,256 80,194 92,334   _less Depreciation (including prjct assets) (2,297) (2,300) (1,975) (2,002) (1,794)   _less collaboration (14,660) (20,602) (8,965) (10,256) (14,052)   Net Operating expenditure 58,526 71,672 72,319 68,762 76,488 - Undesignated Net Assets 15,859 13,157 14,090 17,160 21,427   Cash mgt of restricted operations 0.178 0.542 0.362 0.357 0.599   Current ratio 1.3 1.3 1.5 1.6 1.53   Indirect cost % 17% 17% 17% 17% 17%   21 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 0.77 2.40 1 3 4 - 20 40 60 80 100 120 2020 2021 2022 2023 2024 U S $ m ill io ns Financial performance summary Income Expenses Surplus/ (Loss) 16 13 14 17 21 20 22 22 21 24 - 5 10 15 20 25 30 2020 2021 2022 2023 2024 US D m ill io ns Net Assets Undesignated Reserves Net book value of fixed assets 22 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 36 38 39 38 37 8 14 2 1 0 7 7 7 9 14 22 32 30 26 35 1 2 4 4 5 2 2 2 2 2 - 10 20 30 40 50 60 70 80 90 100 2020 2021 2022 2023 2024 US D m ill io ns Expenses by natural classification Personnel Collaborators - CG Collaborators -Non CG Supplies and Services Travel Depreciation - 1.0 2.0 3.0 4.0 5.0 6.0 2020 2021 2022 2023 2024 US D m illi on s CAPEX vs Depreciation CAPEX Restricted CAPEX Unrestricted Depreciation 23 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 - 10 20 30 40 50 60 70 2020 2021 2022 2023 2024 U SD m ill io ns Cash, donor payables & receivable Cash and cash equivalents Donors Payables Donor Receivables 25 32 32 31 36 21 16 17 9 9 24 40 24 30 37 7 8 11 12 15 - 20 40 60 80 100 120 2020 2021 2022 2023 2024 US D m ill io ns Funding by source Grants (Bilateral) Grant Window 3 W1/W2 Other center income 24 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Cow looks out from her stall in a village in central Malawi. (photo credit: ILRI/Stevie Mann 25 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Independent Auditor’s report to the trustees of International Livestock Research Institute (ILRI) REPORT ON THE AUDIT OF THE GROUP FINANCIAL STATEMENTS Our opinion We have audited the accompanying financial statements of International Livestock Research Institute (ILRI) (the ‘institute’) and its subsidiary (together, ‘the Group’) set out on pages 24 to 87 which comprise the consolidated statement of financial position at 31 December 2024, the consolidated statement of activities and other comprehensive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the year then ended and the notes to the financial statements, comprising material accounting policies and other explanatory information. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group as at 31 December 2024, and of the Group’s financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of ILRI in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Kenya. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of trustees for the financial statements The trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will 26 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We are also required to: ● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ● Obtain an understanding of internal control relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. ● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. ● Conclude on the appropriateness of the trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. ● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. ● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements. ● We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. CPA Stephen Ochieng’ Norbert’s, Practising Number P/1819 Engagement partner responsible for the audit  For and on behalf of PricewaterhouseCoopers LLP Certified Public Accountants  Nairobi ______________2025 Independent Auditor’s report to the trustees of International Livestock Research Institute (ILRI)- Continued 27 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 CONSOLIDATED STATEMENT OF FINANCIAL POSITION     As at December     2024 2023   Notes USD ‘000 USD ‘000 Current assets   Cash and cash equivalents 5 45,254 41,295 Listed corporate bonds 6 5,602 5,654 Account receivables 7 24,110 14,199 Prepaid expenses 8 889 663 Inventories 9 369 482 Total current assets   76,224 62,293 Non-current assets   Property, plant and equipment 10 21,106 21,126 Biological assets 11 1,281 859 Total non-current assets   22,387 21,985 TOTAL ASSETS   98,611 84,278 Current liabilities   Accounts payable 12 47,759 37,776 Provisions 13 1,019 325 Accruals 14 1,170 992 Total current liabilities   49,948 39,093 Non-current liabilities   Long term Employee benefits 15 2,928 3,034 Total non-current liabilities   2,928 3,034 Net assets   Undesignated 21,427 17,160 Designated 24,309 24,991 Total net assets   45,735 42,151 TOTAL NET ASSETS AND LIABILITIES   98,611 84,278 The notes set out on pages 24 to 85 form an integral part of these consolidated financial statements. The consolidated financial statements were approved by the Board of Trustees on 15 April 2025 and were signed on its behalf by: __________________________ ___________________________ Appolinaire Djikeng Robert Nzioka Director general Chief financial officer 15 April 2025 15 April 2025 28 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 CONSOLIDATED STATEMENT OF ACTIVITIES AND OTHER COMPREHENSIVE INCOME     For the year ended 31 December     2024 2023   Notes USD ‘000 USD ‘000 REVENUE   Window 1 & 2 17 36,598 30,413 Window 3 17 8,754 8,654 Bilateral 17 36,311 31,315 Other revenues and gains 18 10,488 9,722 Sale of livestock 19 56 302 Fair value (loss) gain on livestock 21 261 (779) TOTAL REVENUE AND GAINS   92,468 79,627   COST OF SALES   Cost of sale of livestock 20 (94) (234) TOTAL COST OF SALES   (94) (234)   EXPENSES   Research expenses 23 58,268 54,429 Collaborator expenses 24 14,052 10,256 General and administration expenses 25 12,181 10,908 Other expenses and losses 26 2,539 686 Expected credit loss 3 3,989 1,486 TOTAL OPERATING EXPENSES   91,029 77,765   Financial income 27 4,186 3,182 Financial expenses 27 (1,195) (2,195) SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES 4,336 2,615   OTHER COMPREHENSIVE INCOME   Exchange differences on translation of subsidiary 28 (753) 617 TOTAL OTHER COMPREHENSIVE INCOME   (753) 617   TOTAL SURPLUS/(DEFICIT) FOR THE YEAR   3,583 3,232 The notes set out on pages 24 to 85 form an integral part of these consolidated financial statements. 29 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 C O N SO LI D A T ED S TA T EM EN T O F C H A N G ES I N N ET A SS ET S D es cr ip tio n U nd es ig na te d* * re se rv e U SD ‘0 00 D es ig na te d in ve st m en t i n fix ed a ss et s U SD ‘0 00 Ka pi ti re se rv e U SD ‘0 00 Ka pi ti ex ch an ge tr an sl at io n re se rv e* U SD ‘0 00 IL RI de si gn at ed re se rv es * ** U SD ‘0 00 To ta l U SD ‘0 00 At J an ua ry 2 02 4 17 ,1 60 2 1, 12 7 3 ,0 00 86 4 2 4, 99 1 4 2, 15 1 Su rp lu s/ (d efi ci t) fo r t he y ea r 4 ,3 36 - - - - 4, 3 36 O th er c om pr eh en siv e in co m e - - - (7 53 ) (7 53 ) (7 53 ) To ta l c om pr eh en siv e in co m e fo r t he y ea r 4 ,3 36 - - (7 53 ) (7 53 ) 3, 58 3 Ad di tio na l c ap ita l t o su bs id ia ry - - - - - - N et c ha ng e in in ve st m en t i n fix ed a ss et s (6 9) 6 9 - - 6 9 - Ba la nc e as a t D ec em be r 2 02 4 21 ,4 27 2 1, 19 6 3 ,0 00 1 11 2 4, 30 7 4 5, 73 4 At J an ua ry 2 02 3 14 ,0 90 2 1, 58 2 3 ,0 00 24 7 2 4, 82 9 3 8, 91 9 Su rp lu s/ (d efi ci t) fo r t he y ea r 2 ,6 15 - - - - 2, 61 5 Ex ch an ge tr an sla tio n - - - 61 7 6 17 6 17 To ta l c om pr eh en siv e in co m e fo r t he y ea r 2 ,6 15 - - 61 7 6 17 3, 23 2 Ad di tio na l c ap ita l t o su bs id ia ry - - - - - N et c ha ng e in in ve st m en t i n fix ed a ss et s 45 5 (4 55 ) - - (4 55 ) - Ba la nc e as a t D ec em be r 2 02 3 17 ,1 60 2 1, 12 7 3 ,0 00 86 4 2 4, 99 1 4 2, 15 1 *E xc ha ng e tra ns la tio n on o pe ni ng re se rv es in su bs id ia ry a nd o pe ni ng b al an ce o f a ss et s. ** Un de sig na te d re se rv es re fe r t o th at p ar t o f n et a ss et s t ha t i s n ot a llo ca te d by m an ag em en t f or sp ec ifi c pu rp os es . ** *D es ig na te d re se rv es re fe r t o th at p ar t o f n et a ss et s t ha t h av e be en a llo ca te d by m an ag em en t f or sp ec ifi c p ur po se s s uc h as fu tu re a cq ui sit io n of p ro pe rty a nd e qu ip m en t a nd re pl ac em en t o f t he in st itu te ’s as se ts . Th e no te s s et o ut o n pa ge s 2 4 to 8 5 fo rm a n in te gr al p ar t o f t he se c on so lid at ed fi na nc ia l s ta te m en ts . 30 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 CONSOLIDATED STATEMENT OF CASH FLOWS     For the year ended 31 December     2024 2023   Notes USD ‘000 USD ‘000 CASH FLOWS FROM OPERATING ACTIVITIES:   Surplus/(deficit) for the year 4,336 2,615 Adjustments to reconcile surplus or deficit to net cash flows Depreciation on property and equipment and amortization of intangible assets 10 1,797 2,002 Fair value adjustments on biological assets 21 (261) 1,079 Exchange differences on subsidiary (753) 617 Gain on disposal of fixed assets (450) (278) Loss on valuation of investments 16 90 Amortization of corporate bonds (113) (117) Decrease/ (increase) in assets;     Account receivables 7 (9,911) 6,187 Prepayments 8 (226) 47 Inventories 9 113 (124) Increase/ (decrease) in liabilities; Account payables 12 9,983 (8,963) Provisions 13 696 (119) Accruals 14 178 133 Long-term employee benefits 15 (106) (3,608) Subtotal   5,299 (439) Net cash inflow/(outflow) from operating activities   5,299 (439) CASH FLOWS FROM INVESTING ACTIVITIES     Purchase of bonds 6 (3,579) (229) Acquisition of property and equipment 10 (1,883) (1,547) Purchase of biological assets 11 (1) (2) Proceeds from sale of assets 450 281 Proceeds from sale of bonds 3,673 471 Net cash (outflow) from investing activities   (1,340) (1,026) Net increase/(decrease) in cash and cash equivalents 3,959 (6,069) Cash and cash equivalents at the beginning of the year 41,295 48,829 Cash and cash equivalents at the end of the year 45,254 41,295 The notes set out on pages 24 to 85 form an integral part of these consolidated financial statements. 31 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Cattle in Ethiopia’s Upper Ghibe Valley picture credit: ILRI/ Stevie Mann 32 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. REPORTING ENTITY Creation and status of ILRI The International Livestock Research Institute (ILRI) was created as an international organization by an agreement dated 21 September 1994 signed in Berne, Switzerland, by the governments of Switzerland, Denmark, Sweden, Kenya and Ethiopia and the United Nations Environment Programme. On 1 January 1995, all the activities, assets, liabilities and fund balances of the International Laboratory for Research on Animal Diseases (ILRAD) based in Nairobi, Kenya, and the International Livestock Centre for Africa (ILCA) based in Addis Ababa, Ethiopia, were transferred to ILRI. ILRI operates under agreements entered into with the governments of the respective host countries (Kenya and Ethiopia). The Government of Kenya (1974) and the Government of Ethiopia (1976) made available to ILRI leasehold land of approximately 70 hectares and 32 hectares, respectively. ILRI is a CGIAR research centre, operating under the name CGIAR Integrated partnership. The CGIAR Integrated partnership is a global research partnership for a food-secure future. The CGIAR Integrated partnership advances international agricultural research for a food-secure future by integrating and coordinating the efforts of those who fund research and those who do the research. The CGIAR Integrated partnership is comprised of the System Management Board, the System Management Office and 15 research centres ILRI’s livestock research agenda continues to address many of the world’s most pressing sustainable development challenges and to raise the profile of livestock globally. Our research contributes to both the CGIAR System Level Outcomes and to the Sustainable Development Goals. CGIAR Research Initiatives The CGIAR Research Initiatives started in 2022 after the CGIAR Research Programs (CRPs) came to an end at the end of 2021. ILRI research contributes to the CGIAR Research and Innovation Strategy to 2030 through CGIAR Research Initiatives which integrate CGIAR research centre capacities to deliver development outcomes and impacts and through its bilateral research projects. ILRI scientists led three such Initiatives (Livestock, Climate, and Systems Resilience (LCSR); Sustainable Animal Productivity for Livelihoods, Nutrition and Gender inclusion (SAPLING) and Protecting Human Health through a One Health Approach) and ILRI participated and contributed livestock science to 14 others. ILRI hosts the CGIAR platform on Gender Equality, Youth and Social Inclusion, and the CGIAR Antimicrobial Resistance (AMR) Hub. With a better alignment between ILRI’s internal programs, the CGIAR GENDER Impact platform and the AMR Hub, the institute’s livestock research is well positioned to contribute to the CGIAR System Level Outcomes and the Sustainable Development Goals. In 2024, funding through Window 1 and Window 2 constituted about 38% (2023: 36%) of the institute’s total income of USD96.6 million. The financial statements of ILRI have been consolidated with the financial statements of its subsidiary–Kapiti Plains Estate Limited. Subsidiary—Kapiti Plains Estate Limited Kapiti Plains Estate Limited is a wholly owned subsidiary of ILRI purchased in 1981 and registered under the Companies Act of Kenya. The company operates a ranch that was acquired primarily to support the research needs of ILRI. The subsidiary sells surplus livestock to third parties. After making losses for several years, Kapiti has reported a net gain in 2024 for the year ended 31 December 2024 amounting to USD 148 thousands, (2023 loss was: USD 3.15 million). In 2024, Kapiti had a gain due to the strong performance of the Kenya Shilling currency translations against the United States dollars. At the end of 31 December 2024, the subsidiary had a debt balance of USD 7.076 million (2023: USD 6.04 million) in ILRI’s books. Management is working on income diversification as well as cost reduction strategies to help in reducing the loss and creating a financially sustainable Kapiti. 33 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The financial statements of ‘the Group (which comprises ILRI and its wholly owned subsidiary, Kapiti Plains Estate Limited) have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared on a historical cost basis, except where otherwise stated in the accounting policies below. The consolidated statement of activities and other comprehensive income refers to the consolidated statement of profit and loss and other comprehensive income in the context of IAS 1. (b) Basis of consolidation The consolidated financial statements comprise the financial statements of the institute and its subsidiary, Kapiti Plains Estate Limited, in which the institute holds 100% of the voting rights as at 31 December 2024. Control is achieved when the institute is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the institute controls an investee if, and only if, the institute has: Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee). Exposure, or rights, to variable returns from its involvement with the investee. The ability to use its power over the investee to affect its returns. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases. All inter-company balances, transactions, income and expenses, and profits and losses resulting from inter-company transactions are eliminated in full. Where necessary, adjustments are made to the financial statements of the subsidiary to bring their accounting policies into line with those used by other members of the Group. (c) Functional and presentation currency The consolidated financial statements are presented in United States dollars (USD) and all values are rounded to the nearest thousand (USD ’000), which is the Group’s functional currency. (d) Use of estimates and judgments The preparation of financial statements involves the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Although these estimates are based on the management’s best knowledge of current events and actions, actual results ultimately may differ from the estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Information about significant areas of estimation and critical judgement in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are described in Note 4. Revenue recognition Grant revenue The Group recognizes revenue when performance obligations have been settled, the amount of revenue can be reliably measured, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group’s activities as described below. The Group bases its 34 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 estimates on historical results, taking into consideration the type of donor, the type of transaction, and the specifics of each arrangement. Unrestricted grant revenue arises from the unconditional transfer of cash or other assets to ILRI. Restricted grant revenue arises from a transfer of resources to ILRI in return for past or future compliance related to the operating activities of the institute. Unrestricted grants are recognized upon receipt of confirmed commitment. Restricted grants are recognized as revenue upon the fulfilment of donor-imposed conditions. Revenue associated with the transaction is recognized by referring to the stage of completion of the transaction at the reporting date. When the outcome of the transaction cannot be estimated reliably, revenue is recognized only to the extent of the expenses that are recoverable. When the Group receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and released to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the benefits of the underlying asset by equal annual installments. When loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as a government grant. Other revenue and gains Revenue from contracts with customers Other revenue and gains are recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Revenue from service charges, which is the only revenue from contracts with customers, is recognized at the point in time when the services are provided to the customer (fulfils the performance obligations) at the contractual rates. For the year ended 31 December 2024, the Group did not have any contracts with customers exceeding one calendar year or any unfulfilled performance obligations under the contracts as at the year end. Interest income Interest income is recognized on a time proportion basis using the effective interest method. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). Interest income is presented as finance income where it is earned from financial assets that are held for cash management purposes. Any other interest income is included in the other income. (e) Currency translation The Group’s financial statements are presented in USD. Transactions and balances expressed in currencies other than the USD are treated as follows: Non-USD grants and donations received in the year are converted to USD at the exchange rates prevailing on the dates of receipt. Non-USD grants and donations pledged for the year but not received by the year end are recognized in the financial statements at the exchange rates prevailing at the year end. i) Non-USD denominated expenditures are recorded at the exchange rates prevailing for the month in which they are incurred and are accumulated in USD. ii) Assets and liabilities denominated in currencies other than the USD are translated into USD at the exchange rates prevailing at the year end. iii) Gains and losses arising from changes in exchange rates are charged to the statement of activities in the year in which they arise. On consolidation, exchange translation on opening reserves in the subsidiary is recognized in other comprehensive income and in the translation reserve in net assets. (f) Cash and cash equivalents. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near maturity date that they present insignificant risk of changes in value. 35 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 For the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. (g) Financial instruments Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss (FVTPL). The Group has no financial instruments measured at fair value through OCI or FVTPL. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. Apart from trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value, through profit or loss transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. For a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets to generate cash flow. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date (i.e., the date that the Group commits to purchase or sell the asset). Subsequent measurement of financial assets For the purposes of subsequent measurement, all the Group’s financial assets are classified as financial assets at amortized cost (debt instruments). Financial assets at amortized cost (debt instruments) The Group measures financial assets at amortized cost if both of the following conditions are met: i) the financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows, and ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognized in the statement of activities and other comprehensive income when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost includes trade and other receivables, cash and bank balances, corporate bonds and amounts due from related parties. Subsequent measurement of financial liabilities After initial measurement, financial liabilities are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or account payables. The Group’s financial liabilities include trade and other payables and balances due to related parties. The Group has not designated any financial liabilities as ‘at fair value through profit or loss’ and does not have any loan or borrowing or hold derivatives. Trade and other payables This is the category most relevant to the Group. After initial recognition, these financial liabilities are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in 36 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 the statement of activities and other comprehensive income when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of activities and other comprehensive income. Accounts payable represent amounts due to donors, employees, and others for support services and/or materials received prior to year-end but not paid for at the reporting date. i) Accounts payable donors These include amounts payable to donors in respect of any unexpended funds received in advance for restricted grants. ii) Accounts payable partners These include amounts partners have accounted for but whose payments or reimbursements have not been made by the reporting date. iii) Accounts payable others These include all other liabilities ILRI has incurred and has been billed for, which remain unpaid as at the reporting date. Derecognition of financial instruments Financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when: • rights to receive cash flows from the asset have expired; or the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the assets but has transferred control of the asset. Financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in profit or loss. Offsetting Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position only when there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liability simultaneously. Fair values The fair value of the financial assets and liabilities approximate the carrying amounts shown in the statement of financial position due to their short-term nature. Impairment of financial assets The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in 37 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Group considers a financial asset in default when contractual payments are 90 days past the due date. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Classification of financial instruments The table below sets out the Group’s classification of each class of financial assets and liabilities. The amounts in the table are the carrying amounts of the financial instruments at the reporting date.   Amortized cost Mandatorily measured at FVTPL Carrying amount At 31 December 2024 USD ‘000 USD ‘000 USD ‘000 Financial assets       Cash and bank balances 45,254 - 45,254 Listed corporate bonds 5,602 - 5,602 Accounts receivable 24,110 - 24,110 Total assets 74,966 - 74,966 Financial liabilities       Accounts payable 47,759 - 47,759 Accruals 1,170 - 1,170 Total liabilities 48,929 - 48,929   Amortized cost Mandatorily measured at FVTPL Carrying amount At 31 December 2023 USD ‘000 USD ‘000 USD ‘000 Financial assets       Cash and bank balances 41,295 - 41,295 Listed corporate bonds 5,654 - 5,654 Accounts receivable 14,199 - 14,199 Total assets 61,148 - 61,148 Financial liabilities   Accounts payable 37,776 - 37,776 Accruals 992 - 992 Total liabilities 38,768 - 38,768 (h) Property and equipment Property and equipment whose full cost exceeds USD3,000 and which ILRI has purchased using unrestricted funds and can be used in the production or supply of goods or services or for administrative services for more than one year are capitalized and stated at acquisition cost less accumulated depreciation and accumulated impairment losses. Acquisition cost includes the direct purchase price and incidental costs such as freight, insurance, installation, and handling charges. Subsequent material expenditure that extends the useful life or enhances the operating efficiency of an item of property and equipment is capitalized. The cost of normal repairs and maintenance of existing property and equipment is recognized as an operating expense in the statement of activities and other comprehensive income. 38 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Construction work in progress is capitalized as work in progress but depreciation starts only when the work is complete, and the facility is put into use. All immovable assets constructed or carried on leasehold land donated by host countries have been capitalized as assets of the institute. ILRI has the right to negotiate for extension of leases under the host country agreements upon expiry of the current leases. In accordance with the host country agreements, if the host country agreement is terminated, or the host country does not renew a lease upon expiry, all immovable assets will be disposed of by CGIAR (in consultation with the governments of Ethiopia and Kenya). Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are accounted for in the Statement of Activities. Buildings and land improvements 3% (33 years) Farm works 5% (20 years) Farm equipment 10% (10 years) Laboratory and scientific equipment 10–15% (7–10 years) on an item-by-item basis Office and household furniture and equipment 20% (5 years) Motor vehicles 20% (5 years) ICT equipment 33.33% (3 years) Depreciation is calculated on a straight-line basis at annual rates estimated to write off the cost of each item of property and equipment over the estimated term of its useful life. The annual rates used are as follows: Depreciation of acquired assets starts in the month that the assets are placed in operation and continues until the assets are fully depreciated or their use discontinued. Depreciation charge is time-apportioned in the year of disposal of items of property and equipment. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are accounted for in the Statement of Activities. Operating lease rentals relating to lease land are amortized over the term of lease. The residual values, useful lives, and methods of depreciation of property, plant, and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. (i) Intangible assets The intangible assets of the institute comprise acquired computer software. The cost of acquisition and installation of computer software is capitalized and amortized over the estimated useful life of the software, usually three years. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their useful economic lives, usually three years, and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of activities in the expense category consistent with the function of the intangible assets. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of activities when the asset is derecognized. (j) Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the 39 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre- tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognized in the statement of activities and other comprehensive income in those expense categories consistent with the function of the impaired asset. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognized. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Such reversal is recognized in the statement of activities and other comprehensive income. (k) Inventories Inventory is carried at the lower of cost and net realizable value. Cost is calculated on a weighted average basis and includes purchase price, freight and other incidental costs. Net realizable value is the price at which the inventory can be realized in the normal course of business after allowing for the costs of the realization The determination of obsolescence or expiration is based on the lower of the manufacturer’s recommendations and documented experience and knowledge of the management. The amount of write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write- down or loss occurs. (l) Biological assets Biological assets comprise livestock. Livestock is stated at fair value less point of sale costs. The fair value of livestock is determined based on market prices of livestock of similar age, breed and genetic merit. Also, a minimum selling price is set for young stock to minimize depletion of future stock. Changes in fair value are recognized in the statement of activities and other comprehensive income. (m) Employee benefits i) Defined contribution plan The institute’s contributions are maintained as a defined contribution plan for all categories of staff. Contributions to the defined contribution plan are charged to the statement of activities as incurred. ii) Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognized for amounts expected to be paid if the Group has present legal or constructive obligation to pay this amount as a result of past service provided by employees and obligation can be estimated reliably. iii) Termination benefits Termination benefits are expensed at the end of the employee contracts when the Group can no longer withdraw the offer of those benefits. iv) Long-term benefits Full provision is made for benefits payable to employees at the end of their contracts. Provisions are also made in respect of repatriation costs and outstanding leave days accruing to all staff. 40 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 Cattle trek home along a dry riverbed in Pacassa Village, Tete Province, Mozambique photo credit: ILRI/Mann. 41 International Livestock Research Institute (ILRI) ILRI Board statement on risk management For the year ended 31 December 2024 (n) Net assets Net assets represent the residual interest in the institute’s assets remaining after liabilities have been deducted. (o) Accruals Accruals represent liabilities to pay for goods or services that have been received or supplied but not yet invoiced or formally agreed with suppliers. (p) Provisions Provisions are recognized when the institute has (a) a present legal or constructive obligation because of past events, (b) it is more likely than not that an outflow of resources will be required to settle the obligation and (c) a reliable estimate of the amount can be made. Provisions are measured at the present value of the management’s best estimate of the expenditure required to settle the present obligation at the reporting date. (q) Tax ILRI: The governments of Kenya and Ethiopia have undertaken to exempt ILRI from all local taxes including customs duty on goods and services received by the institute. Consequently, the institute does not account for tax in its financial statements. Kapiti Plains Estate Limited Current income tax Income tax expense is recognized in the statement of activities and other comprehensive income except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized in equity or other comprehensive income. Income tax assets and liabilities for the current period are measured at the amount expected to be recovered from, or paid to, the taxation authorities. Current tax is the amount of income tax payable on the taxable profit for the year determined in accordance with the relevant tax legislation. The current income tax charge is calculated on the basis of the tax rates and tax laws that are enacted or substantively enacted at the reporting date. Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences, except when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized, or the liability is settle