Corporate information Board of Trustees Los Baños Headquarters Location/Address Members-at-large College, Los Baños 4031 Laguna Dr. Achmad Suryana Philippines Dr. Ralph Anthony Fischer Tel: (63-2) 580-5600; 845-0563 Dr. Mutsuo Iwamoto (63-49) 536-2701 to 2705 Dr. Seong-Hee Lee +1 (650) 833-6620 (USA direct) Dr. Jillian Lenne Fax: (63-2) 580-5699; 845-0606 Prof. Ruth K. Oniang’o (63-49) 536-7995 Dr. Ronald L. Phillips +1 (650) 833-6621 (USA direct) Dr. Mangala Rai Mr. Mohammed Syeduzzaman Email: irri@cgiar.org Prof. Elizabeth J. Woods Web: www.irri.org Dr. Usha Barwale Zehr Prof. Baowen Zhang IRRI Makati Office Location/Address Ex officio members 10th Floor, Suite 1009 Security Bank Center Dr. Emerlinda R. Roman 6776 Ayala Avenue, Makati City 1226 President, University of the Philippines Philippines Tel: (63-2) 856-6133; 856-6129 Mr. Arthur C. Yap Fax: (63-2) 891-1236 Secretary, Philippine Department of Agriculture Dr. Robert S. Zeigler External Auditors Director General Isla Lipana & Co. A member firm of PricewaterhouseCoopers Officers Dr. William G. Padolina Secretary to the Board Mr. Norman A. Macdonald Treasurer to the Board Audit Committee Membership The members of the Audit Committee are activities, issues, and related appointed by the Board. It assists the Board recommendations, confirming that all in fulfilling its oversight responsibilities by responsibilities outlined in the charter have reviewing and auditing, from time to time, been carried out. the accounts and financial condition as well as the management and operating systems and procedures of the Institute. The Authority Committee may undertake other duties delegated to it by the Board. The Audit Committee is authorized to commission investigations into matters For the Institute’s audit and accounts, the within its scope of responsibility. It is Committee discharges its functions in empowered to seek any information it consultation and coordination with the requires from Institute management and external auditors, the internal auditors, and staff or external parties, meet with Institute appropriate consultants of the Institute. management and staff, external auditors, or legal counsel, as necessary, and, retain The Chairperson of the Audit Committee, independent counsel, accountants, or others who is customarily appointed by the Board to advise the committee or assist in the at the time when the Board appoints conduct of an investigation. members of the Committee, presides over all meetings of the Committee. In his/her The Composition in 2008 and Designation absence or disability, the Vice Chairperson of Audit Committee shall acts as the Chairperson for that meeting. Dr. Emerlinda Roman - Chairperson Mr. M. Syeduzzaman -Vice Chairperson Dr. Ronald Phillips - Member A vacancy in the Audit Committee is filled Prof. Elizabeth Woods - Member from among other members of the Board Prof. Baowen Zhang - Member through election by the Board or election by Prof. Ruth Oniang’o - Member the remaining members of the Audit Committee. Any person so elected by the Committee serves only until the next meeting of the Board. The Audit Committee shall meet at least once a year. Special meetings may be held upon call by its Chairman or upon request of at least one member. The committee shall report to the Board, at least at the conclusion of each committee meeting about Committee Statement by the Board Chair For the year ended 31 December 2008 As IRRI nears the half-century mark, we are pleased to report that the Institute continues to meet the high standards expected by our stakeholders. Resource Mobilization The global food crisis has rekindled awareness of the importance of research to increase food production to assure future food security, especially in Asia and Africa, where most of the world’s poor are located. IRRI clearly has an important role to play. In 2008, IRRI’s revenue increased by 11% to US$37.5 million. IRRI has been successful in attracting significant new investments to further its mission and to continue in its leading role in the important task of reducing poverty through rice science. This included new restricted grants from the Asian Development Bank, ACIAR, the Bill & Melinda Gates Foundation, the Chinese Academy of Agricultural Sciences, and Germany. Financial Status IRRI’s financial position remains stable, with total assets of $71.5 million. The liquidity and long-term stability indicators remain above the CGIAR benchmarks. IRRI incurred a deficit of $3.6 million in 2008. The deficit on normal operations was $2.4 million. The remaining portion of the deficit ($1.2 million) was due to use of the reserves for identified research and management initiatives within the new Strategic Plan, such as the Knowledge Pathways Initiative, Climate Change, and Drought Frontier projects. The deficit was consistent with the Board-approved plan to reduce the reserves and was described in the Medium-Term Plan. Risk Management The Board continuously monitors the risk management system and risk mitigation measures and is satisfied with the progress made on implementing the risk management framework, which included the appointment of a full-time risk management/quality assurance coordinator. External Program and Management Review The EPMR began in 2008 and a report was issued in early 2009. IRRI welcomes the recommendations and is pleased to note that the Institute’s finances are well managed and the internal control systems are functioning well. CGIAR Award The Board would like to congratulate Dr. Edilberto Redoña, global coordinator of the International Network for Genetic Evaluation of Rice (INGER), and his team for being named the “2008 CGIAR Outstanding Scientific Support Team” at the CGIAR Annual General Meeting held in Mozambique, for their systematic efforts to collect rice varieties from all over the world and use them to create “elite breeding lines” that have improved rice production in more than 50 countries. Appreciation On behalf of the Board of Trustees, I would like to thank our partners and donors for their continued support and cooperation to fulfill IRRI’s mission. I would also like to recognize the dedication and perseverance of IRRI’s staff. ____________________ Prof. Elizabeth Woods Chair Board of Trustees International Rice Research Institute Financial statements December 31, 2008 and 2007 Management Statement of Responsibility for Financial Reporting The accompanying financial statements of the International Rice Research Institute (IRRI), for the years ended December 31, 2008 and 2007 are the responsibility of management. IRRI management also claims responsibility for the substance and objectivity of the information contained therein. Our financial reporting practices follows the “Accounting Policies and Reporting Practices Manual – Financial Guidelines Series No. 2” of the CGIAR. IRRI maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded and transactions are properly recorded and executed in accordance with management’s authorization. A system of reporting within the Institute present the management with an accurate view of the operations, enabling us to discern risks to our assets or fluctuations in the economic environment of the Institute at an early stage and at the same time providing a reliable basis for the financial statements and management reports. The Board of Trustees exercises its responsibility for these financial statements through its Finance and Audit Committee. The Committee meets regularly with management and representatives of the external auditors to review matters relating to financial reporting, internal controls, and auditing. Dr. Robert S. Zeigler Norman A. Macdonald Director General Treasurer and Director for Management Services INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 TABLE OF CONTENTS Page/s Independent Auditor’s Report 1 - 2 Statements of Financial Position 3 Statements of Activities 4 Statements of Changes in Net Assets 5 Statements of Cash Flows 6 Notes to Financial Statements 7 - 17 Schedule of Grants Revenues & Accounts Receivable/(Payable) - Donor Exhibit 1 Schedule of Restricted Agenda Funding Exhibit 2 Details of Operating Expenses Exhibit 3 Indirect Cost Rate Calculation Exhibit 4 Schedule of European Community Funding Exhibit 5 INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2008 AND 2007 (All amounts in thousand US Dollars) Notes 2008 2007 A S S E T S Current assets Cash and cash equivalents 3 28,524 21,838 Short term investments 4 2,790 2,064 Accounts receivable Donors 5 5,613 7,484 Employees 213 189 Others 6 873 992 Inventories - net 7 543 572 Prepaid expenses 89 319 Total current assets 38,645 33,458 Non-current assets Property and equipment - net 8 10,577 11,113 Long term investments 9 22,246 21,612 Total non-current assets 32,823 32,725 Total assets 71,468 66,183 LIABILITIES AND NET ASSETS Current liabilities Accounts payable Donors 10 23,602 16,732 Others 11 1,546 967 Accruals and provisions 12 8,939 7,504 Total current liabilities 34,087 25,203 Net assets Designated 37,381 40,980 Total liabilities and net assets 71,468 66,183 The accompanying notes on pages 7 to 17 are an integral part of these financial statements. (3) INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (All amounts in thousand US Dollars) 2008 Restricted Challenge Note Unrestricted Temporary Programs Total 2007 Revenues Grants (Exhibit 1) 12,671 21,801 2,796 37,268 32,389 Other revenues, net 16 257 - - 257 1,298 12,928 21,801 2,796 37,525 33,687 Operating expenses Program related (Exhibit 3) 11,479 21,480 2,796 35,755 31,911 Management and general (Exhibit 3) 6,896 321 - 7,217 7,340 18,375 21,801 2,796 42,972 39,251 Recovery of indirect costs (2,782) - - (2,782) (1,667) 15,593 21,801 2,796 40,190 37,584 Net deficit from ordinary activities (2,665) - - (2,665) (3,897) Unrealized foreign exchange translation gain (loss) ( 971) - - ( 971) 985 Net deficit (3,636) - - (3,636) (2,912) Memo items Operating expenses - by natural classification: Personnel costs 9,354 7,350 755 17,459 15,499 Supplies and services 5,835 7,998 1,023 14,856 13,674 Collaborators/Partners 14 4,035 640 4,689 4,863 Operational travel 1,021 2,069 353 3,443 2,924 Depreciation 2,151 349 25 2,525 2,291 Recovery of indirect costs (2,782) - - (2,782) (1,667) 15,593 21,801 2,796 40,190 37,584 The accompanying notes on pages 7 to 17 are an integral part of these financial statements. (4) INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (All amounts in thousands of US Dollars) Designated Vested Non-Vested Invested Fixed Unrealized Research in fixed assets Risk FOREX GRC initiative fund Total Total Note assets acquisition management translation reserve (Note 14) non-vested Net Assets Balances, January 1, 2007 9,883 4,553 2,171 5,899 10,000 10,957 33,580 43,463 Board of Trustees re-designation 14 - - 1,122 (3,364) - 2,242 - - Capital reserve replenishment (1,838) 1,838 - - - - 1,838 - Acquisition of fixed assets 3,169 (2,740) - - - - (2,740) 429 Net deficit for the year (101) - (1,885) 985 - (1,911) (2,811) (2,912) Balances, December 31, 2007 11,113 3,651 1,408 3,520 10,000 11,288 29,867 40,980 Board of Trustees re-designation 14 - - 1,706 (1,706) - - - - Capital reserve replenishment (2,525) 2,525 - - - - 2,525 - Acquisition of fixed assets 2,039 (2,002) - - - - (2,002) 37 Net deficit for the year (50) - (1,344) (971) - (1,271) (3,586) (3,636) Balances, December 31, 2008 10,577 4,174 1,770 843 10,000 10,017 26,804 37,381 The accompanying notes on pages 7 to 17 are an integral part of these financial statements. (5) INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (All amounts in thousands of US Dollars) Notes 2008 2007 Cash flows from operating activities Net deficit (3,636) (2,912) Adjustments for: Depreciation of property and equipment 8 2,525 2,291 Investment (gains) losses 183 (1,257) Net book value of disposed property and equipment 50 101 Net deficit before working capital changes (878) (1,777) (Increase) decrease in: Short term investments (726) 588 Accounts receivable 1,966 (3,177) Inventories 29 (17) Prepaid expenses 230 (140) Increase in: Accounts payable 7,449 8,857 Accruals and provisions 1,435 277 Cash generated from operations 9,505 4,611 Interest received 747 1,257 Net cash provided by operating activities 10,252 5,868 Cash flows from investing activities (Increase) decrease in long term investments (1,564) 2,126 Net movement of fixed assets/acquisition reserve 37 429 Acquisition of property and equipment 8 (2,039) (3,622) Net cash used in investing activities (3,566) (1,067) Net increase in cash and cash equivalents 6,686 4,801 Cash and cash equivalents January 1 21,838 17,037 December 31 28,524 21,838 The accompanying notes on pages 7 to 17 are an integral part of these financial statements. (6) INTERNATIONAL RICE RESEARCH INSTITUTE (A Nonstock, Not-for-Profit Organization) NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (All amounts in thousands of US Dollars unless otherwise stated) Note 1 - General International Rice Research Institute (the Institute) was established in 1960 to undertake basic research on the rice plant and applied research on all phases of rice production, management, distribution and utilization with the objective of attaining nutritive and economic advantage and benefit for the people of Asia and other major rice- growing areas. The Institute was first conferred the status of an international organization in the Philippines under Presidential Decree (PD) No. 1620. On May 19, 1995, a multi-lateral agreement recognizing the status of the Institute as an international organization was signed by representatives of 19 countries, including the Philippines (another country subsequently acceded to the Agreement). The 1995 Agreement allows the Institute to have a juridical status to more effectively pursue its international collaborative activities in rice research and training. Pursuant to the 1995 Agreement, the Institute and the Government of the Republic of the Philippines entered into a Headquarters (HQ) Agreement. The HQ Agreement was ratified by the President on May 23, 2006, was concurred by the Senate on April 28, 2008, and came into force on May 14, 2008. The Institute enjoys, among other privileges and prerogatives, the following tax exemptions: a. exemption from the payment of gift, franchise, specific, percentage, real property, exchange, import, export, documentary stamp, value-added and all other taxes provided under existing laws or ordinances. This exemption extends to goods imported and owned by the Institute, leased or used by its staff; b. exemption from payment of gift tax; all gifts, contributions and donations to the Institute are considered allowable deductions for purposes of determining the income tax of the donor; and c. exemption from payment of Philippine income tax of non-Filipino citizens serving on the Institute’s technical and scientific staff on salaries and stipends in United States (US) dollars received solely from, and by reason of, service rendered to the Institute. The Institute receives support from various donor agencies and entities primarily through the Consultative Group on International Agricultural Research (CGIAR). CGIAR is a group of donors composed of governments of various nations and international organizations and foundations. The Institute’s major facilities are located in Los Baños, Laguna, Philippines. In addition, the Institute owns an administrative office in Makati City, Philippines. As of December 31, 2008, the Institute has 976 employees (2007 - 905). The accompanying financial statements and supplementary schedules of the Institute were approved and authorized for issue by the Board of Trustees on April 16, 2009. (7) Note 2 - Significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented. Basis of financial statements The accompanying financial statements, expressed in US dollars, are prepared on the basis of accounting practices prescribed for international agricultural research centers (Accounting Policies and Reporting Practices Manual - Financial Guidelines No. 2 or APRPM) under the auspices of the CGIAR. These accounting policies are applied consistently in dealing with items that are considered material in relation to the financial statements. The preparation of financial statements in conformity with CGIAR’s APRPM requires the use of accounting estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal to related actual results. It also requires management to exercise its judgment in the process of applying the Institute’s accounting policies. Revenue recognition Grants are recognized as revenue upon the substantial fulfillment of the conditions attached to them, regardless of the period when it is intended to be used, or when the donor has explicitly waived the conditions. Grants are classified according to the type of restrictions attached to them. Unrestricted grants are grants received which the Institute may freely use for its mandated activities. Unrestricted grants are recognized in full in the period specified by the donor. Restricted grants are grants received in support of specified projects or activities mutually agreed upon by the Institute and donors. Revenue is recognized to the extent of expenses actually incurred. Excess of grants received over expenses, representing grants applicable to succeeding years, are shown as “Accounts payable - donors” account in the statement of financial position. Claims from donors for project expenses paid in advance are shown as Accounts receivable - donors in the statement of financial position. Grants in kind are recorded at the fair value of the assets received while cash grants are recorded at its US dollar equivalent. Expense recognition Expenses are recognized when a decrease in future economic benefit related to a decrease in an asset or an increase in a liability has arisen that can be measured reliably. Expenses are recognized on the basis of a direct association between the costs incurred and the earning of specific items of revenue. Cash and cash equivalents Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments that are both (a) readily convertible to known amounts of cash and (b) so near maturity date that they present insignificant risk of changes in value. These investments, as distinguished from short term investments, are those that are acquired with original maturities of three months or less. (8) Short term investments These consists of investments that are (a) acquired with original maturity of more than three months but not exceeding one year, and (b) those that are originally long term in nature but are currently due to mature within one year of the balance sheet date. Accounts receivable Accounts receivable are carried at gross amount less an allowance for any uncollectible amounts. Allowance for doubtful accounts is based on past experience and on a continuous review of receivable aging reports and other relevant factors. When an accounts receivable is deemed doubtful of collection, the Institute provides an allowance for doubtful debt during the year in which it is deemed doubtful. Any receivable or a portion thereof adjudged to be uncollectible is written off. The write-off is done after all efforts to collect have been exhausted. Inventories Inventories which consist of spare parts and supplies and other inventories are stated at the lower of cost or net realizable value. Cost, which includes the purchase price plus cost of freight, installation and handling charges, is determined using the moving average method. Property and equipment Property and equipment acquired prior to 1991 are carried at cost or estimated value; acquisitions starting 1991 are stated at cost. Capital expenditures with a minimum cost of US$500 or its equivalent and with an estimated life beyond one year are capitalized. The cost of an item of property and equipment comprises its purchase price and all other incidental cost in bringing the assets to its working condition for its intended use. Depreciation of all assets which are owned by the Institute is computed using the straight-line method over the estimated useful lives of the related assets, as follows: Category description Estimated life in years Physical facilities Building and improvements 60 Infrastructure Site improvements 25 Furnishing and equipment Farming Farm machinery and equipment 7-10 Shop machinery and equipment 7-10 Laboratory 5-10 Office 5-10 Auxiliary units 5-10 Vehicles 4-7 Computers 3-5 (9) Depreciation is charged from the month an asset was placed in operation and is continued until the asset has been fully depreciated or its use is discontinued. Property and equipment acquired through the use of grants restricted for a specific project are recorded as assets. Such assets are depreciated at a rate of 100% in the year of purchase. The depreciation expense is charged directly to the appropriate restricted project. Long term investments Investments are initially recorded at their acquisition cost if they are purchased and at their fair market value if they are received as grants. Investments in equity securities and debt securities are re-measured at their market value as of the reporting date. Investments acquired with the intention of keeping the same for more than a year from the acquisition date and which are not maturing within one year as of the reporting date, are classified as long term investments. Accruals Accruals represent liabilities to pay for goods or services that have been received, supplied, invoiced or formally agreed with suppliers. Provisions Provisions are recognized when the Institute has: (a) a present legal or constructive obligation as a result 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 management’s best estimate of the expenditure required to settle the present obligation at the statement of financial position date. When there are a number of similar obligations, the likelihood that an outflow will be required in the settlement is determined by considering the class of obligations taken as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Leases Leases of property where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to operations on a straight-line basis over the period of the lease. Foreign currency transactions and translations Foreign currency denominated transactions are translated to US dollars for reporting purposes at standard bookkeeping rates which approximate the exchange rates prevailing at the dates of the transactions. Exchange differences arising from (a) the settlement of foreign currency denominated monetary items at rates which are different from which they were originally booked, and (b) the translation of balances of foreign-currency denominated monetary items are credited or charged to operations during the year. (10) Contribution to provident fund The contribution to provident fund is charged to personnel costs. Recovery of indirect costs The pooling of direct and indirect costs is based on the principle of attribution and assignability. Expenditures are pooled to different resource user units (cost centers) by direct identification. Expenditures that are common to the different cost centers are allocated on the basis of resource drivers. Non-operating and non-recurring expenditures are excluded in the computation. Direct and indirect costs exclude capital expenditures but include depreciation in the case of unrestricted funded activities. For restricted grants, the indirect cost rates may include capital expenditures depending on the terms and conditions of the relevant agreements. The method of calculating the indirect cost recovery rate is prescribed in the CGIAR Financial Guidelines No. 5. Subsequent events Post-year-end events that provide additional information about the Institute’s situation at the statement of financial position date (adjusting events) are reflected in the financial statements, if any. Post-year-end events that are not adjusting events are disclosed in the notes when material. Note 3 - Cash and cash equivalents This account consists of: 2008 2007 Cash on hand and in banks 8,672 12,759 Cash equivalents 19,852 9,079 28,524 21,838 Note 4 - Short term investments This account consists of: 2008 2007 With original maturities of more than 3 months but less than one year - 28 Long term investments due to mature within one year 2,790 2,036 2,790 2,064 (11) Note 5 - Accounts receivable - donors This account consists of outstanding approved unrestricted grants and expenses for restricted and challenge programs projects which are not yet collected from or reimbursed by donors. 2008 2007 Unrestricted 3,191 4,169 Restricted Temporary 2,317 3,105 Challenge programs 105 210 5,613 7,484 Note 6 - Accounts receivable - others This account consists of: 2008 2007 Advances to suppliers 402 625 Others 471 367 873 992 Note 7 - Inventories This account consists of: 2008 2007 Spare parts 506 519 Supplies and other inventories 299 300 805 819 Allowance for obsolescence ( 262) (247) 543 572 (12) Note 8 - Property and equipment The details of property and equipment at December 31, 2008 and their movements during the year consist of: Physical Infrastructure Furnishing facilities and leasehold and equipment Total At January 1, 2008 Cost 123 2,146 34,859 37,128 Accumulated depreciation (30) (514) (25,471) (26,015) Net book value 93 1,632 9,388 11,113 Year ended December 31, 2008 Opening net book value 93 1,632 9,388 11,113 Cost Additions - 255 1,784 2,039 Disposal - - (616) (616) Accumulated Depreciation Depreciation expense for the year (2) (107) (2,416) (2,525) Disposal - - 566 566 Closing net book value 91 1,780 8,706 10,577 At December 31, 2008 Cost 123 2,401 36,027 38,551 Accumulated depreciation (32) (621) (27,321) (27,974) Net book value 91 1,780 8,706 10,577 The details of property and equipment at December 31, 2007 and their movements during the year consist of: Physical Infrastructure Furnishing facilities and leasehold and equipment Total At January 1, 2007 Cost 123 1,044 33,424 34,591 Accumulated depreciation (28) (251) (24,429) (24,708) Net book value 95 793 8,995 9,883 Year ended December 31, 2007 Opening net book value 95 793 8,995 9,883 Cost Additions - 1,102 2,520 3,622 Disposal - - (1,085) (1,085) Accumulated Depreciation Depreciation expense for the year (2) (263) (2,026) (2,291) Disposal - - 984 984 Closing net book value 93 1,632 9,388 11,113 At December 31, 2007 Cost 123 2,146 34,859 37,128 Accumulated depreciation (30) (514) (25,471) (26,015) Net book value 93 1,632 9,388 11,113 (13) Total assets from restricted grants amounted to US$2,657 thousand and US$2,193 thousand as of December 31, 2008 and 2007, respectively. Depreciation expense amounted to US$2,525 thousand and US$2,291 thousand in 2008 and 2007, respectively. Note 9 - Long term investments This account consists of investments with: 2008 2007 Generali Worldwide Ins. Co. - USD 11,333 8,828 ING Investment Management - USD 750 1,125 ING Investment Management - EURO 2,790 2,925 Citibank New York Long-term Investment Umbrella Portfolio - USD 4,873 5,809 UBS Bank Medium Term Investment - EURO - 2,925 UBS Bank Medium Term Investment - USD 2,500 - 22,246 21,612 The average annual interest rate on the above investments is 2% in 2008 (2007 - 4%). Note 10 - Accounts payable - donors This account consists of grants received in advance applicable to succeeding years. 2008 2007 Unrestricted 736 948 Restricted Temporary 21,735 14,490 Challenge programs 1,131 1,294 23,602 16,732 Note 11 - Accounts payable - others This account consists of: 2008 2007 Accounts payable - Other CGIAR Centers 97 322 Deferred training charges of scholars and trainees 185 236 Deferred salaries and benefits of post doctoral fellows 172 390 Funds in trust 1,092 19 1,546 967 (14) Note 12 - Accruals and provisions This account consists of: 2008 2007 Accruals Trade 2,850 1,769 Others 2,858 2,429 5,708 4,198 Provisions 3,231 3,306 8,939 7,504 Provisions consist of accumulated leave credits due to staff as of December 31, 2008 and 2007 based on current personnel policy manual, in addition to repatriation costs of internationally recruited staff. Note 13 - Nationally Recruited Staff (NRS) Provident Fund The Institute maintains a non-contributory provident fund for the benefit of its nationally recruited staff. The monthly contribution to the fund is computed at 10.5% of an employee’s monthly basic salary which is remitted to the trustee-administered funds. The fund provides for lump sum payment to qualified employees/members upon their separation from the Institute, under certain conditions. The administration of fund by a Retirement Committee is based on approved investment guidelines as contained in the Trust Agreement. Based on the latest actuarial report dated February 18, 2008, the fund is considered adequate to cover for the minimum benefits as required by Philippine Laws. The Institute is responsible for any shortfall in the fund to comply with the minimum legal requirements. Contributions to the fund amounted to about US$425 thousand and US386 thousand in 2008 and 2007, respectively. Note 14 - Net assets The movements in Research Initiative Fund are shown below: Africa Strategic and Knowledge Frontier Research Needy Development Pathways Projects Initiative Countries Office Initiative Total Balances, December 31, 2007 9,690 413 153 - 701 10,957 Board of Trustees re-designation - - 847 1,395 - 2,242 Net deficit for the year (978) (192) (489) (40) (212) (1,911) Balances, December 31, 2008 8,712 221 511 1,355 489 11,288 Expenses for the year (725) (79) - (301) (166) (1,271) Balances, December 31, 2008 7,987 142 511 1,054 323 10,017 (15) Designated On September 16, 2008, the Board of Trustees approved the re-designation of US$1,706 thousand from Reserve for Unrealized Foreign Exchange to Reserve for Risk Management. On April 18, 2007, the Board of Trustees approved the re-designation of US$2,242 thousand from the Unrealized Foreign Exchange Translation to Research Initiative Fund and on September 20, 2007, the Board of Trustees also approved the re-designation of US$1,122 thousand from the Reserve for Unrealized Foreign Exchange Translation to Reserve for Risk Management. Undesignated The Institute does not have undesignated net assets as of December 31, 2008 and 2007. Note 15 - Leases a. On September 7, 2001, the Institute renewed its lease agreement for research facilities with the University of the Philippines System (the University). The new lease agreement, which took effect on July 1, 2000, is for a period of 25 years up to June 30, 2025, and is renewable upon mutual agreement of the parties. Under the terms of the agreement, the following provisions apply: i. The Institute will pay a rental of one peso every year for the parcels of land used as sites for its laboratories, office and service buildings and housing. In addition and continuing the past practice of providing the equivalent in cash of the approximate value of agricultural products that otherwise could be grown on this land, the Institute provided a lump sum, and non reimbursable financial assistance to the University in the amount of US$375,000. ii. For the duration of the lease, the Institute will also contribute to the cost of development and maintenance of the University road network, utilities, other infrastructure, health services, sanitary landfill management, security, etc. outside the leased land, in the amount of US$12,500 per year. Upon signing of the agreement, the first 10-year payment (US$125,000) was paid as a lump-sum, and the remainder will be paid in annual installments starting from the 11th year of the lease. iii. Pursuant to the Second Consolidated Renewal of Lease Contract between the University and the Institute, the latter shall execute documents necessary to facilitate the transfer of ownership of the buildings and permanent improvements to the former upon termination of the lease. Further, in Section 2 of Article XV of the Institute’s Charter, all the physical plant, equipment and other assets shall become the property of the University in case the Institute is terminated for any reason. As stated in both documents, the transfer of ownership shall not cover other assets such as the Institute’s Gene Bank and Genetic Resources, which have been assigned in trust to the Institute. Other assets donated to the Institute shall be subjected to other conditions in respect of their disposition upon dissolution of the Institute. iv. In support of any expansion of the agricultural research program of the Institute and the University, the Philippine Government authorized the University to acquire, by negotiated sale or by expropriation, private agricultural property under PD No. 457. b. The Institute signed a lease contract with Hewlett Packard (HP) for a seat management agreement involving the lease of computers and other bundled services. The lease covers 4 phases, each phase effective for 3 years. The first phase started in October 2004, the last phase will end in October 2009. The minimum lease payment under this contract is US$25,618 per month. (16) c. The Institute also leases land and other properties from third parties for project experimental sites with periods ranging from one to five years. The leases mentioned above are accounted for as operating lease. Note 16 - Other revenues, net This account consists of: 2008 2007 Investment gain (loss) ( 183) 1,257 Self-sustaining activities (91) 39 Miscellaneous, including realized gain (loss) on foreign exchange 531 2 257 1,298 Note 17 - Indirect cost recovery rate The indirect cost recovery rate computed as per the CGIAR Financial Guideline No. 5 is 16.63% and 20.38% in 2008 and 2007, respectively. The computation of indirect cost recovery rate is shown on Exhibit 4. (17) Exhibit 1 Page 1 of 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANTS REVENUES & ACCOUNTS RECEIVABLE/(PAYABLE) - DONOR FOR THE YEAR ENDED DECEMBER 31, 2008 With comparative figures for the year ended December 31, 2007 (In thousands of US$) 2008 Total Funds Accounts Advance 2007 Donors Available Receivable Payment Grant Grant Unrestricted Australia 1,387 (726) 661 566 Bangladesh 100 100 100 Canada 313 1,019 1,332 1,026 China 140 140 140 France 102 102 161 Germany 537 537 388 India 150 150 150 Japan 1,152 1,152 844 Korea 150 150 150 Norway 382 382 334 Philippines 101 101 100 Portugal 0 200 Sweden 516 516 555 Switzerland 583 583 531 Thailand 40 40 40 Turkey 10 (10) 0 United Kingdom 2,070 2,070 2,431 United States of America 2,250 750 3,000 2,700 Vietnam (15) 30 15 15 Worldbank 1,640 1,640 1,800 Total 10,216 3,191 (736) 12,671 1 2,231 Restricted 5 Prime 484 484 Aquifer Limited 30 30 166 Asian Development Bank (ADB) 438 556 994 1,081 Australia 1,006 (316) 690 547 Bangladesh 32 3 35 Belgium 0 Bill & Melinda Gates Foundation 19,154 (13,449) 5,705 189 Brazil 20 (20) 0 Canada 97 (32) 65 174 China 92 (62) 30 14 Consultative Group on International Agricultural Research (CGIAR) Centers and Secretariat 0 Bioversity 80 (44) 36 CGIAR/System-wide Genetic Resources Programme (SGRP)/Special Program on Impact-Assesstment (SPIA) 248 (93) 155 15 International Center Agricultural Research in the Dry Areas (ICARDA) 81 2 83 Centro Internacional de Agricultura Tropical (International Center for Tropical Agriculture)/Information and Communication Technology Knowledge Management Initiative (ICT-KM) 33 (4) 29 4 International Fund for Agricultural Research (IFAR) 18 (7) 11 3 International Food Policy Research 0 Institute (IFPRI) 28 (17) 11 Exhibit 1 Page 2 of 2 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF GRANTS REVENUES & ACCOUNTS RECEIVABLE/(PAYABLE) - DONOR FOR THE YEAR ENDED DECEMBER 31, 2008 With comparative figures for the year ended December 31, 2007 (In thousands of US$) 2008 Total Funds Accounts Advance 2007 Donors Available Receivable Payment Grant Grant European Commission 494 1,258 1,752 3,564 Food and Agricultural Organization of 0 the United Nations (FAO) 38 13 51 20 France 266 (15) 251 240 Foundation for Advanced Studies on 0 Agricultural Development (FASID) 20 2 22 48 Gatsby Foundation 160 (160) 0 Germany 865 (316) 549 469 Global Crop Diversity Trust (GCDT) 51 277 328 234 Grand Challenges in Global Health through Albert - Ludwigs University of Freiburg 373 110 483 139 Hybrid Rice Research & Development Consortium (HRDC) 407 (89) 318 International Atomic Energy Association (IAEA) 34 (17) 17 17 India 500 (56) 444 500 International Fund for Agricultural Development (IFAD) 1,613 (245) 1,368 596 International Fertilizer Association (IFA)/ International Plant Nutrition Institute (IPNI)/International Potash Institute (IPI) 134 (13) 121 61 Iran 246 (81) 165 92 Japan 4,167 (607) 3,560 2,660 Korea 1,202 (527) 675 741 Malaysia 54 (36) 18 44 Mexico (10) 10 10 Monsanto Fund 47 Nunhems BV 23 6 29 26 Plan International Cambodia 10 (3) 7 42 Philippines 77 77 33 Portugal 150 (92) 58 Rockefeller Foundation (RF) 4,167 (4,051) 116 616 Switzerland 812 (60) 752 1,214 United Kingdom 55 3 58 - United States of America (USA) 2,871 (903) 1,968 741 Worldbank 270 (74) 196 321 Others 406 (346) 60 95 Subtotal 41,219 2,317 (21,735) 21,801 1 4,763 2,317 (21,735) 21,801 Challenge Programs Water and Food 815 105 920 3,099 Generation 2,618 (1,124) 1,494 1,456 Harvest Plus 389 (7) 382 839 Subtotal 3,822 105 (1,131) 2,796 5 ,394 Total Restricted Grants 45,041 2,422 (22,866) 24,597 2 0,157 Total Grants 55,257 5,613 (23,602) 37,268 3 2,388 EXHIBIT 2 Page 1 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total A. Temporary 5 Prime Donation of Molecular Biology Products 01/01/08 - 31/12/08 484 - 484 484 Aquifer Limited Re-invigorating the Mozambique Rice Industry through a Novel Public-Private Sector Partnership 27/04/07 - 26/04/09 395 166 30 196 Asian Development Bank (ADB) Development and Dissemination of Water-Saving Rice Technologies in South Asia 01/01/06 - 30/12/09 1,000 390 259 649 Bringing about Sustainable Rice Production in Asia by Reducing Preventable Pre- and Post-harvest Losses 01/10/08 - 30/09/10 2,000 - 58 58 Improving Poor Farmers' Livelihood Through Post-Harvest Technology 11/07/05 - 31/12/08 750 496 234 730 Improving Poor Farmers' Livelihood Through Rice Information Technology 19/11/04 - 19/11/08 1,000 571 249 820 Enhancing Farmers' Income and Livelihoods Through Integrated Crop and Resource Management in the Rice-Wheat System in South Asia 01/01/05 - 31/12/08 849 655 194 849 Total 5 ,599 2,112 994 3,106 Australia Finetuning the Happy Seeder Technology for the Adoption in Northwest India 01/10/07 - 30/09/10 149 18 46 64 Impact of Migration and/or Off-farm Employment on Roles of Women and Appropriate Technologies in Asian and Australian Mixed Farming Systems 01/07/04 - 31/03/08 383 353 30 383 Improving Rice Productivity in South and Southeast Sulawesi 01/03/08 - 28/02/11 448 - 133 133 Implementation of Rodent Management in Intensive Irrigated Rice Production Systems in Indonesia and Vietnam 01/04/06 - 30/09/09 90 36 40 76 Further Development of ICIS 01/07/06 - 30/06/08 31 15 16 31 Fertilization-Independent Formation of Embryo, Endosperm and Pericarp for Apomictic Hybrid Rice 01/07/03 - 30/06/08 1,182 1,032 150 1,182 Scoping Study to Identify Research and Implementation Issues Related to Management of the Brown Planthopper/Virus Problem in Rice in Vietnam 01/05/07 - 31/01/08 94 69 25 94 Sustainable Instensification of Rice-Maize Production Systems in Bangladesh 01/07/08 - 30/06/13 1,220 - 71 71 Molecular Marker Technologies for Faster Wheat Breeding in India 26/06/08 - 30/11/09 24 - 14 14 Developing Molecular Markers to Enable Selection Against Chalk in Rice 01/05/07 - 30/04/12 750 35 165 200 Total 4,371 1,558 690 2,248 Bangladesh Enhancing MAS Capacity for Salt-Stress Rice Breeding in Bangladesh 31/03/08-30/04/09 40 - 35 35 Bill & Melinda Gates Foundation Stress-tolerant Rice for Poor Farmers in Africa and South Asia 01/11/07 - 31/10/10 19,897 189 5,097 5,286 Cereal System Initiative for South Asia (CSISA) 01/12/08 - 31/11/11 19,954 - 161 161 Creating the Second Green Revolution by Supercharging Photosynthesis: C4-rice 15/10/08 - 31/10/11 11,017 - 447 447 Total 50,868 189 5,705 5,894 Canada Programmatic Alignment Among IRRI, The Africa Rice Center and CIAT with Focus on Centers' Activities in Africa 21/03/07 - 31/12/08 253 156 65 221 China Development of Disease-resistant, Cold-tolerant Rice Variety in South China Throughout Genomic Tools 05/02/07 - 04/02/09 26 14 10 24 China IRRI Collaboration 01/01/08 - 31/12/09 80 - 20 20 “Green Super Rice” for the Resource-Poor of Africa and Asia 11/01/08 - 31/10/11 4,633 - 0 0 Total 4,739 14 30 44 Consultative Group on International Agricultural Research (CGIAR Centers & Secretariat) Bioversity System-wide Improvement of Location Data Quality 01/01/07 - 31/12/09 103 13 36 49 System-wide Improvement of Location Data Quality Phase 2 01/10/08 - 31/12/09 34 Total 137 13 36 49 CGIAR/SGRP/SPIA Collective Action for the Rehabilitation of Global Public Goods in the CGIAR Genetic System: Phase 2 01/01/07 - 31/12/09 337 252 64 316 GPG2 Compile, Review and Update Standard Operating Procedures 01/03/08-30/11/08 4 4 4 Development and Implementation of Risk Management Procedures for Individual Genebanks and for Collections in Common 31/10/07-31/05/09 84 62 62 Reducing and Managing the Loss of Genetic Integrity of Conserved Germplasm 01/01/07 - 31/12/09 457 20 25 45 Total 882 272 155 427 EXHIBIT 2 Page 2 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total ICARDA Establishment of the Global Crop Registers for Rice and Wheat 01/01/08-31/12/09 90 83 83 CIAT-ICT/KM Centro Internacional de Agricultura Tropical (CIAT) Information and Communications Technology- Knowledge Management Initiative (ICT KM) - Good Practices for Managing Research Data 01/10/07 - 31/12/08 20 1 19 20 ICT KM-Knowledge Management Harmonizing Research Output in the Northern Uplands of Lao PDR 01/08/07-31/01/09 20 10 10 Total 40 1 29 30 International Fund for Agricultural Research (IFAR) Transferring Sativa Knowledge to Glaberrima to Enable the Evaluation of Quality in Africa Rice 01/06/08-31/07/09 11 - 4 4 Pyramiding Genes for Resistance to Bacterial Blight and Blast in Bangladesh Rice Cultivars Using Marker Assisted Selection 21/05/07 - 20/05/10 11 4 7 11 Total 22 4 11 15 International Food Policy Research Institute (IFPRI) Scoping the Potential Future for Rice in Asia: Exploring Alternative Strategies and Policies 01/04/07 - 31/12/08 25 - 6 6 Supporting Strategic Investment Choices In Agricultural Technology Development 01/06/07 - 31/12/08 25 - 5 5 Total 50 - 11 11 European Commission Eagles Food Forum 01/07/07 - 30/11/08 56 56 56 Raising Productivity in Rainfed Environments 01/01/08 - 31/12/08 698 698 698 Sustaining Productivity in Intensive Rice-Based Systems 01/01/08 - 31/12/08 635 635 635 Coordinating NGO Interventions for Improving Small and Marginal Farmer's Households, Livelihood and Food Security in Bangladesh 01/07/04 - 31/08/09 1,800 902 290 1,192 Assessing Large-Scale Environment Risk with Tested Methods - Extension (ALARM TTC) 01/02/07 - 31/01/09 39 14 15 29 Metabolomic Technology Applications For Plants, Health And Outreach 01/10/06 - 30/09/08 199 36 58 94 Total 3,427 952 1,752 2,704 Food and Agriculture Organization of the United Nations (FAO) What has been the Role of Crop Management Technologies in Rapid Rice Yield Growth in the Philippines 16/11/07 - 01/12/08 51 0 51 51 France IRRI/France Collaborative Project 01/01/07 - 31/12/07 240 240 240 Increasing Water Saving in Irrigated Rice in Central Luzon 01/01/08 - 28/02/09 7 5 5 Diversity of Adaptative Traits to Water and Thermal Stress in Rice (Oryza sativa L.): High Throughput Phenotyping for Association Mapping 01/01/08 -31/12/10 59 - 6 6 Total 306 - 251 251 Foundation for Advanced Studies on Agricultural Development (FASID) IRRI Water Saving Technology Project ( A Survey to be Done in China) 01/05/07 - 10/03/08 65 48 17 65 IRRI Loop Survey - Research on Agricultural Transformation in Central Luzon and Laguna 15/05/08 - 15/12/08 5 0 5 5 Total 70 48 22 70 Gatsby Foundation Collections of Landraces and Wild Species of Oryza in Kenya, Mozambique, Tanzania and Uganda (in collaboration with WARDA) 01/05/07 - 30/04/10 160 - - - Germany Nutrient Management in Aerobic Rice Systems 01/07/05 - 30/09/08 207 138 40 178 Enhancing and Stabilizing the Productivity of Salt-Affected Areas by Incorporating Genes for Tolerance of Abiotic Stresses in Rice 01/01/08 - 31/12/10 1,184 - 206 206 From Genes to Farmers' Fields: Enhancing and Stabilizing Productivity of Rice in Submergence Prone Environments 01/01/04 - 31/12/08 1,297 999 298 1,297 Rice and Global Climate Change: Candidate Genes for Preventing Heat and Drought-Induced Yield Losses Due to Spikelet Sterility 01/11/08-31/10/10 77 2 2 Transcriptome Profiling of Hybrid Rice 01/12/07 - 30/11/09 87 3 3 Total 2,852 1,137 549 1,686 Global Crop Diversity Trust (GCDT) Development of a Global Strategy for the Ex Situ Conservation of Rice 01/04/06 - 28/02/08 60 52 8 60 Heat-Tolerant Rice to Combat Global Warming 01/01/08 - 31/12/09 30 - 20 20 Long-term Funding of the Ex Situ Collection of Rice Germplasm Held by IRRI 01/11/06 - 31/10/11 700 400 300 700 Total 790 452 328 780 EXHIBIT 2 Page 3 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total Grand Challenges in Global Health through Albert - Ludwig's University of Freiburg Engineering Rice for High Beta-Carotene, Vitamin E and Enhanced Iron and Zinc Bioavailability 28/09/05 - 27/09/10 1,213 306 483 789 Hybrid Rice Research & Development Consortium (HRDC) Hybrid Rice Research & Development Consortium 01/02-08 - 31/12/09 423 318 318 International Atomic Energy Association (IAEA) Dissecting Drought Tolerance Mechanisms in Rice Through Gain of Function Deletion Mutants 15/06/06 - 14/06/07 21 8 13 21 Selection of Greater Agronomic Water-Use Efficiency in Wheat and Rice Using Carbon Isotope Discrimination 15/11/03 - 14/06/09 40 14 4 18 Total 61 22 17 39 India IRRI/India Collaborative Project 01/01/08 - 31/12/08 400 - 400 400 IRRI Rice Wheat Consortium 01/04/07 - 31/12/08 100 - 44 44 Total 500 - 444 444 International Fund for Agricultural Development (IFAD) Managing Rice Landscapes in the Marginal Uplands for Household Food Security and Environmental Sustainability 26/07/05 - 31/03/09 1,190 589 306 895 Accelerating Agricultural Technology Adoption to Enhance Rural Livelihoods in Disadvantaged Districts of India 16/05/07 - 30/06/10 1,000 74 363 437 Reducing Risks from Arsenic Contamination for Poor People 31/10/08 - 31/12/10 200 1 1 Alleviating Poverty Through Improving Rice Production in East and Southern Africa 20/09/07 - 30/09/10 1,500 50 698 748 Total 3,890 713 1,368 2,081 International Fertilizer Association (IFA)/International Plant Nutrition Institute (IPNI)/ International Potash Institute (IPI) The Irrigated Rice Research Consortium Phase III-Site Specific Nutrient Management 01/01/05 - 31/12/08 432 297 121 418 Iran IRRI-Iran Collaborative Project 01/01/99 - 31/12/09 1,331 1,085 165 1,250 Japan Development of Integrated Rice Cultivation System Under Water Saving Conditions 09/08/05 - 08/08/10 1,661 830 303 1,133 Raising Productivity in Rainfed Environments 01/01/08 - 31/12/08 410 410 410 Sustaining Productivity in Intensive Rice-Based Systems 01/01/08 - 31/12/08 270 270 270 East and Southern Africa: Rice for Rural Incomes 01/01/08 - 31/12/08 66 66 66 Rice and Human Health 01/01/08 - 31/12/08 25 25 25 Rice Genetic Diversity and Discovery 01/01/08 - 31/12/08 333 333 333 Information and Communication: Convening a Global Rice Research Community 01/01/08 - 31/12/08 38 38 38 Upland Rice Variety Selection Techniques 07/10/08 - 17/11/08 24 - 24 24 Collaborative Research on Socioeconomic Constraints to Adoption of Technology and Farmer's Response 01/04/05 - 31/03/10 81 61 16 77 Socioeconomic Survey in the Bohol Irrigation System, Philippines 03/11/08 - 30/03/09 14 - 2 2 Transformation of Lowland Rice and Evaluation of Transformed Rice for Environmental Stress Tolerance 21/05/07 - 29/02/08 302 138 164 302 Transformation of Lowland Rice and Evaluation of Transformed Rice for Environmental Stress Tolerance - Year 2 01/05/08 - 27/02/09 333 106 106 Development of Breeding Materials for Rice Blast Resistance-Phenotypic Evaluation and Marker Assisted Selection to Develop Near-Isogenic Lines for Blast Resistance 11/12/07 - 25/02/08 13 3 10 13 Implementation Plans to Disseminate Submergence Tolerant Varieties and Associated New Production Practices to Southeast Asia 19/03/07 - 31/03/09 4,236 1,238 1,793 3,031 Total 7,806 2,270 3,560 5,830 Korea Korea Support to IRRI's Program 01/01/08 - 31/12/08 50 - 50 50 Wide Hybridization and Gene Introgression for Rice Improvement/Broadening Gene Pool of Rice: Wild Species Introgression and Marker Assisted Selection 01/07/03 - 31/08/09 240 191 25 216 Functional Genomics Approach to Identification of Broad-Spectrum Resistance Genes Against Rice Blast Disease in Korean Germplasm 01/07/03 - 31/08/09 240 177 12 189 Cooperative Funding for Korea-IRRI Collaborative Projects 01/01/99 - 31/12/08 525 342 28 370 Germplasm Utilization and Value-Added Project 01/01/01 - 31/12/08 310 198 27 225 IRRI Korea Office 17/11/01 - 31/12/08 1 ,786 1,492 273 1,765 Major Characteristics Evaluation of Early Maturing Japonica Rice (MEJR) 01/12/06 - 30/11/08 41 33 8 41 EXHIBIT 2 Page 4 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total Development of Submergence Tolerant Japonica Rice Variety 01/04/08-31/03/11 30 - 4 4 Breeding for Micronutrient-Enriched Japonica Rice for Improving Human Health 01/04/05 - 31/03/08 140 124 16 140 Identification of Resistance Genes for Biotic Stresses in Rice Through the Location/Expression Candidate Association Approach 01/01/06 - 31/12/08 90 61 29 90 Korean Seed Multiplication Project 01/07/91 - 31/12/08 404 337 53 390 Temperate Rice Research Consortium 08/02/07 - 31/12/08 402 88 150 238 Total 4,258 3,043 675 3,718 Malaysia The Impact of Rice Production on Environmental Sustainability 01/09/05 - 30/09/08 90 36 14 50 Genetic Enhancement for High Quality Rice 01/01/06 - 31/12/08 110 40 4 44 Total 200 76 18 94 Nunhems BV Further Development of International Crop Information Systems (ICIS) in Collaboration with Nunhems - Phase II 01/04/06 - 31/03/10 80 38 29 67 Plan International Cambodia Poverty Reduction Options Validated in Drought Environments Phase II 01/05/07 - 29/02/08 27 11 0 11 Poverty Reduction Options Validated in Drought Environments Phase III 02/05/08-28/02/09 20 - 7 7 Total 47 11 7 18 Philippines Implementation of the 2009-2010 Rice Self-Sufficiency Plan (RSSP) of the GMA Rice Program 09/07/08 - 31/12/08 46 0 46 46 Hybrid Nucleus and Breeder Seed Production 16/01/04 - 15/01/08 25 21 4 25 Improving Knowledge Exchange and Decision Making Among Rice Stakeholders Through ICT- based Technology Promotion and Delivery Systems 01/01/06 - 30/06/09 73 27 27 54 Total 144 48 77 125 Portugal Village-Level Market-Driven Rice Intensification 01/01/08-31/12/08 150 - 58 58 Total Rockefeller Foundation (RF) Developing and Disseminating Resilient and Productive Rice Varieties for Drought-Prone Environments in India 01/03/05 - 28/02/09 610 476 92 568 Introgression of Genes for Drought Tolerance from Oryza Glaberrima into Indica Rice 01/04/05 - 31/03/08 76 67 9 76 Pathway Dissection and Candidate Gene Identification for Drought Tolerance in Rice by a Forward Genetics Approach 01/03/05 - 28/02/08 582 567 15 582 Total 1,268 1,110 116 1,226 Switzerland The Irrigated Rice Research Consortium - Phase III Management Team 01/01/05 - 28/02/09 1,470 1,019 372 1,391 Productivity Workgroup 01/01/05 - 28/02/09 402 296 102 398 Water Saving Workgroup 01/01/05 - 28/02/09 356 226 118 344 Labor Productivity Workgroup 01/01/05 - 28/02/09 356 273 75 348 Post Production Workgroup 01/01/05 - 28/02/09 353 257 85 342 Total 2,937 2,071 752 2,823 United Kingdom Poverty Alleviation Through Rice Innovation Systems 01/03/08-01/02/11 586 - 57 57 Characterizing Genetic and Soil Induced Variation inArsenic Uptake, Translocation and Metabolism in Rice to Mitigate Arsenic Contamination in Asia 01/01/08-31/12/10 23 - 0 0 Philippine Rice Security Under Climate Change: Building an Evidence Base to Inform Govenmental Policy Options 01/05/08-31/03/09 9 - 1 1 Total 618 0 58 58 United States of America Development of Rice Biotechnology Products for Asia: Technical and Pre-regulatory Components 01/01/05 - 30/09/09 2,580 982 748 1,730 East and Southern Africa: Rice for Rural Incomes 01/01/08 - 31/12/08 250 250 250 The Development of Adapted Germplasm for India with High Levels of Pro Vitamins Carotenoids 01/01/05 - 31/12/09 385 59 214 273 Modeling the Impacts of BT Transgene Flow on Lepidopteran Food Web Structure and Stability on Wild Rice in Vietnam (Led by CLRRI - Under Program for Biosafety System BBI) 01/01/07 - 30/09/09 128 26 64 90 Ecological Based Participatory IPM for Southeast Asia (Led by Clemson University - IPM-CRSP) 01/10/05 - 30/09/09 49 34 12 46 Advanced Breeding and Deployment of Abiotic Stress Tolerant Rice & Wheat and Expansion of Hybrid Rice 01/10/07 - 30/04/09 150 3 107 110 Famine Fund-Accelerating Adoption of Resource Conserving Technologies in South Asia Under the Umbrella of Cereal System Initiative for South Asia 01/08/08-30/09/11 2,131 133 133 Revitalizing The Rice-Wheat Cropping Systems Of The Indo-Gangetic Plains: Adaptation And Adoption Of Resource-Conserving Technologies In India, Bangladesh And Nepal (Component 1 Of The Global Development Alliance) 01/10/07 - 30/04/09 475 75 364 439 Enabling Open Access to IRRI-Assisted Theses and Dissertations Funding Proposal 30/09/06 - 30/06/08 8 8 0 8 Tilling and Ecotilling Resources of Japonica and Indica Rice 01/04/04 - 30/04/08 90 59 31 90 Georeferencing of Germplasm Resources Information Network - Georeference Project 01/08/07 - 31/12/08 45 45 45 Total 6,291 1,246 1,968 3,214 EXHIBIT 2 Page 5 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total World Bank Rice Wheat Consortium - SWEPS 270 - 196 196 Others 1,769 81 60 141 Bayer - Development of ICIS 01/01/07 - 31/12/09 53 18 21 39 Cornell University -Durable Resistance in Wheat 01/02/08 - 31/01/11 623 27 27 Scientifiic Know-how and Exchange Program between IRRI & Pioneer Hi-Bred International, Inc. (DuPont) 16/07/08 - 15/07/11 744 - 0 0 Rice Wheat Consontium - Reserve Funds 01/01/08 - 31/12/08 266 JBIC - Mozambique Survey 07/09/07 - 15/04/08 19 19 0 19 GRIPS - Mozambique Survey 01/08/07 - 15/02/08 22 22 0 22 National Graduate Institute for Policy Studies (GRIPS) - Mozambique Survey 01/08/07 - 15/02/08 22 22 0 22 FOSS - Improving the Capacity of Indica Rice-Breeding Programs to Measure the Traits of Physical Quality of Grain 01/01/08 - 31/12/10 20 0 12 12 Subtotal 1 09,154 19,491 21,801 41,292 B. Challenge Program Water and Food Theme I Leadership 01/11/02 - 31/12/08 299 - 243 243 Managing Water and Land Resources for Sustainable Livelihoods at the Interface Between Fresh and Saline Water Environments in Vietnam and Bangladesh 01/06/04 - 30/06/08 803 721 82 803 Development of Technologies to Harness the Productivity of Salt-Affected Areas of the Indo- Gangetic & Nile River Basins (PN#7) 15/06/04 - 31/12/08 1,353 1,051 302 1,353 Exploring the Relevance and Feasibility Approaches for Producing Environmental Services through Changes in Agricultural Practices 01/04/07 - 31/12/08 24 1 16 17 Developing a System of Temperate and Tropical Aerobic Rice (STAR) in Asia 01/10/04 - 31/03/08 848 755 91 846 Rice Landscape Management for Raising Water Productivity, Conserving Resources, and Improving Livelihoods in Upper Catchments of the Mekong and Red River Basins (PN#11) 01/11/05 - 31/10/09 910 343 186 529 Total 4,237 2,871 920 3,791 Generation GCP Support to SP Leader 2 01/01/07 - 31/12/08 94 71 23 94 Drought Tolerant Rice Cultivars for North China and South/Southeast Asia by Highly Efficient Pyramiding of QTLs from Diverse Origins 01/01/05 - 31/12/08 317 187 130 317 Implementation of Web Services Technology in the Generation Challenge Programme Consortium 01/01/08 - 31/12/08 5 5 5 Genotyping Services Asante Ghana 07/03/08 - 06/03/09 12 3 3 Development of CP Domain Models and Ontology 01/01/08- 31/12/08 28 28 28 Provision of Genotyping Support Services 07/03/08 - 06/03/09 12 9 9 Determination of a Common Genetic Basis for Tissue Growth Rate Under Water-Limited Conditions Across Plant Organs and Genomes 01/01/05 - 15/10/08 182 116 66 182 Validation of Drought-Response/Resistance Pathway Genes by Phenotypic Analysis of Mutants - Year 1 01/08/08 - 31/07/09 65 46 19 65 Validation of Drought-Response/Resistance Pathway Genes by Phenotypic Analysis of Mutants - Year 2 01/08/07 - 31/07/08 66 58 58 Speeding the Development of Salt Tolerant Rice Varieties Through Marker Assisted Selection and Their Dissemination in Salt Affected Areas of Bangladesh 01/01/08- 31/12/08 129 129 129 Connecting Performance Under Drought With Genotypes Through Phenotype Associations 01/01/08- 31/12/08 114 101 101 Transcriptome Analysis of Near-Isogenic Rice Lines to Identify Expression Signatures and Gene Combinations Conferring Stress Tolerance 01/01/08- 31/12/08 73 73 73 Population Development to Underpin Gene Discovery and Allele Validation in Rice: The Multiparent Advanced Generation Inter-Crosses (MAGIC) 01/01/08- 31/12/08 56 56 56 Application and Validation of the Major QTL Phosphate Uptake 1 (Pup1) 01/01/08 - 31/12/08 81 52 52 Targeted Discovery of Superior Disease QTL Alleles in the Maize and Rice Genomes 01/01/05 - 31/12/08 145 114 16 130 Quality Management and Data Quality Improvement 01/01/08 - 30/06/09 46 27 27 Development of Tools and Technology to Increase the Functionality of the GCP Information Platform 01/01/08 - 31/12/08 81 81 81 Revitalizing Marginal Lands: Discovery Of Genes For Tolerance Of Saline And Phosphorus- Deficient Soils To Enhance And Sustain Productivity 01/01/05 - 30/06/08 900 790 110 900 Identifying Genes Responsible for Failure of Grain Formation in Rice and Wheat Under Drought 01/01/05 - 30/06/09 900 735 79 814 Large Scale Phylogenomic Analyses to Gene Function Prediction for GCP Crops 01/01/08 - 31/12/08 97 0 78 78 High Performance Computing Facilities for the GCP Platform 01/01/08 - 31/12/08 5 0 5 5 Drought from Different Perspective: Improved Tolerance through Phosphorous Acquisition 01/11/08 - 31/10/11 900 0 13 13 Detecting and Fine-Mapping QTLs with Major Effects on Rice Yield under Drought Stress for Deployment via Marker Aided Breeding 01/08/07-31/07/09 599 43 173 216 Developing and Disseminating Resilient and Productive Rice Varieties for Drought-Prone Environments in India 01/03/05 - 28/02/09 120 84 14 98 Pathway Dissection and Candidate Gene Identification for Drought Tolerance in Rice by a Forward Genetics Approach 01/03/05 - 28/02/08 120 101 19 120 Targeting Drought-Avoidance Root Traits to Enhance Rice Productivity Under Water-Limited Environments 01/11/08 - 31/10/11 900 0 2 2 EXHIBIT 2 Page 6 of 6 INTERNATIONAL RICE RESEARCH INSTITUTE SCHEDULE OF RESTRICTED AGENDA FUNDING FOR THE YEAR ENDED 31 DECEMBER 2008 (In US$ thousands) Grant Period Grant EXPENDITURES Donor & Program/Project (DD/MM/YY) Pledged Prior Years 2008 Total Data Analysis Support for Existing Projects in SP2 with Emphasis on Integrating Results from Microarray and Mapping Experiments 01/01/07 - 31/12/08 20 18 2 20 Data Analysis Support for Existing Projects in SP2 with Emphasis on Integrating Results from Microarray and Mapping Experiments 01/01/08 - 31/12/08 48 48 48 High Performance Computing Facilities for the GenerationCP 01/01/07 - 31/10/08 15 9 6 15 Creation and Maintenance of Templates for GenerationCP Data Storage in Repositories 01/01/07 - 31/10/08 29 18 11 29 Application and Development of Web Services Technology 01/01/07 - 31/10/08 8 6 2 8 Application and Development of Web Services Technology 01/01/07 - 31/12/08 49 44 5 49 Development of an Integrated GCP Platform 01/01/08 - 31/12/08 51 51 51 Total 6,509 2,382 1,494 3,876 Harvest Plus Biofortified Crops for Improved Human Nutrition 01/01/03-31/12/08 2,203 1,664 296 1,960 Assessing the Potential of Bio-fortification to Address Micronutrient Malnutrition in Rice-Based Cropping Systems of South & Southeast Asia 26/04/04-31/12/08 280 232 48 280 Developing Biofortified Iron-Dense for India 01/07/05-31/12/08 96 58 38 96 Total 2,579 1,954 382 2,336 Subtotal 13,325 7,207 2,796 10,003 Grand Total 122,479 26,698 24,597 51,295 EXHIBIT 3 INTERNATIONAL RICE RESEARCH INSTITUTE DETAILS OF OPERATING EXPENSES FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 (In thousands of US$) Program Related Management and General Research Research General Programs Support Operations Sub-total Management Administration Sub-total Total 2007 Unrestricted Personnel costs 4,313 706 1,968 6,987 2,367 2,367 9,354 8,649 Supplies & services 1,888 374 46 2,308 1,142 2,385 3,527 5,835 7,271 Collaborator/Partners 14 14 14 269 Operational travel 358 78 84 520 333 168 501 1,021 1,066 Depreciation 921 237 492 1,650 85 416 501 2,151 1,838 Total operating expenses 7,494 1,395 2,590 11,479 3,927 2,969 6,896 18,375 19,093 Recovery of indirect cost (2,782) (2,782) (2,782) (1,667) Subtotal 7,494 1,395 2,590 11,479 3,927 187 4,114 15,593 17,426 Restricted Temporary Personnel costs 7,245 90 7,335 15 15 7,350 6,092 Supplies & services 7,527 107 81 7,715 17 266 283 7,998 5,100 Collaborator/Partners 4,035 4,035 4,035 1,771 Operational travel 1,963 36 47 2,046 23 23 2,069 1,392 Depreciation 349 349 349 410 Subtotal 21,119 233 128 21,480 55 266 321 21,801 14,765 Challenge Programs Personnel costs 755 755 - 755 758 Supplies & services 1,023 1,023 - 1,023 1,303 Collaborator/Partners 640 640 - 640 2,823 Operational travel 353 353 - 353 466 Depreciation 25 25 - 25 43 Subtotal 2,796 2,796 - - - 2,796 5,393 Total Restricted 23,915 233 128 24,276 55 266 321 24,597 20,158 Grand total 31,409 1,628 2,718 35,755 3,982 453 4,435 40,190 37,584 Personnel costs 12,313 796 1,968 15,077 2,382 0 2,382 17,459 15,499 Supplies & services 10,438 481 127 11,046 1,159 2,651 3,810 14,856 13,674 Collaborator/Partners 4,689 0 0 4,689 0 0 0 4,689 4,863 Operational travel 2,674 114 131 2,919 356 168 524 3,443 2,924 Depreciation 1,295 237 492 2,024 85 416 501 2,525 2,291 Sub-total 31,409 1,628 2,718 35,755 3,982 3,235 7,217 42,972 39,251 Recovery of indirect cost (2,782) (2,782) (2,782) (1,667) Grand total 31,409 1,628 2,718 35,755 3,982 453 4,435 40,190 37,584 Exhibit 4 INTERNATIONAL RICE RESEARCH INSTITUTE INDIRECT COST CALCULATION FOR THE YEARS ENDED DECEMBER 31 2008 2007 Direct Operating Expenses Research 32,340 27,708 Research support 3,168 3,721 Operations 1,733 1,460 Subtotal 37,241 32,889 Less: Overhead recovery 2,782 1,667 Total 34,459 31,222 Indirect Operating Expenses Management 3,218 3,263 Common sustenance services 2,513 3,099 Total 5,731 6,362 Total Operating Expenses 40,190 37,584 Cost Ratios Direct/Total 85.74% 83.07% Indirect/Total 14.26% 16.93% Indirect/Direct 16.63% 20.38% Exhibit 5 INTERNATIONAL RICE RESEARCH INSTITUTE EUROPEAN COMMUNITY FUNDING STATEMENT OF EXPENDITURES FOR THE YEAR ENDED 31 DECEMBER 2008 (In thousands) Grant period Grant pledged Expenditures (2008) Budget balance Programme In EUR In USD In EUR In USD In EUR In USD Raising Productivity in Rainfed Environments 01/01/08 - 31/12/08 501 6 98 501 698 - - Sustaining Productivity in Intensive Rice-Based Systems 01/01/08 - 31/12/08 455 6 35 455 635 - - Total 956 1 ,333 956 1,333 - -