The International Livestock Research Institute (ILRI) works to improve food and nutrition security and reduce poverty in developing countries through research for effi cient, safe and sustainable use of livestock. Co-hosted by Kenya and Ethiopia, it has regional or country offi ces and projects in East, South and Southern Asia as well as Central, East, Southern and West Africa. ilri.org CGIAR is a global research partnership for a food-secure future. Its science is carried out by 15 2018 F I N A N C I A L S T A T E M E N T S research centres in close collaboration with hundreds of partners across the globe. cgiar.org INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 FINANCIAL STATEMENTS A Laos farmer chopping fodder for her cow (photo credit: ILRI/Stevie Mann). Chicken at a new poultry research facility and art installation at the Ethiopian campus of the International Livestock Research Institute (photo credit: ILRI/Apollo Habtamu). 2018 F I N A N C I A L S T A T E M E N T S International Livestock Research Institute 2018 Financial Statements INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 1 © 2019 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. Citation: International Livestock Research Institute. 2019. ILRI 2018 Financial Statements. Nairobi, Kenya: ILRI. ISBN: 92–9146–581-0 Text by Lindsay Falvey, Jimmy Smith and Robert Nzioka. Statements prepared by chief financial officer: Robert Nzioka Editors: Peter Mativo, Anne Kibe and Paul Karaimu ILRI thanks all donors that globally support its work through their contributions to the CGIAR Trust Fund. https://www.cgiar.org/funders/ Cover photo: Goats at a farm in Mwingi, Kenya (photo credit: ILRI/Fulani Media). 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 through livestock Phone: + 251 11 617 2000 Fax: + 254 20 422 3001 Fax: + 251 11 667 6923 Email: ILRI-Kenya@cgiar.org ILRI is a CGIAR research centre Email: ILRI-Ethiopia@cgiar.org ILRI has offices in East Africa • South Asia • Southeast and East Asia • Southern Africa • West Africa 2018 F I N A N C I A L S T A T E M E N T S The International Livestock ILRI graduate fellows Gemeda Woguna and Temesgen Jembere with their livestock in Bako-Shambu, Ethiopia (photo credit: ILRI/Apollo Habtamu). Research Institute is a major partner in the Genebank Platforms and participates in the CGIAR Platforms for Big Data in Agriculture and Excellence in Breeding. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 3 2018 F I N A N C I A L S T A T E M E N T S ILRI acknowledges the countries and organizations that supported its research in 2018, which are listed in Exhibits I through II. The institute could not have advanced its mission without their intellectual as well as financial support. Contents Page Organization information 6 Statement of purpose 7 Corporate governance 9 Statement by the chair of the Board of Trustees 10 Statement of management responsibilities 18 ILRI Board statement on risk management 19 Independent auditor’s report 20 Financial statements Consolidated statement of financial position 23 Consolidated statement of activities and other comprehensive income 24 Consolidated statement of changes in net assets 25 Consolidated statement of cash flows 26 Notes to the consolidated financial statements 27-57 Exhibits Exhibit I Grant revenues and accounts receivable/payable 60 Exhibit II Grant pledges and expenses 68 Exhibit III CRP/portfolio expenditure reports 81 Exhibit IV CRP W1 and W2 funding reports 84 Exhibit V Detailed statement of activities 85 Exhibit VI Detailed statement of financial position 86 4 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S ILRI is the co-founder, A teenage girl and one of her family’s sheep at an urban farm in Bamako, Mali (photo credit: ILRI/Stevie Mann). with the African Union New Partnership for Africa’s Development (AU-NEPAD), of the Biosciences eastern and central Africa (BecA-ILRI) Hub. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 5 2018 F I N A N C I A L S T A T E M E N T S Organizational information FOR THE YEAR ENDED 31 DECEMBER 2018 Board of Trustees Lindsay Falvey Australia Chair (from November 2015, appointed April 2013) Jimmy Smith Canada Ex officio (director general, joined October 2011) Chanda Nimbkar India Appointed November 2015 Andrew Tuimur Kenya Host country representative (joined February 2016) Gebregziabher Gebreyohannes Ethiopia Host country representative (joined November 2015) Judith Lungu Zambia Appointed November 2015 Richard Golding UK Appointed April 2015 Rodney Cooke UK Appointed November 2012 (left November 2018) Suzanne Petersen UK Appointed November 2012 (left November 2018) Siew Fing Wong Malaysia Appointed November 2013 Elsa Murano USA Appointed September 2016 Jing Zhu China Appointed September 2016 Martyn Jeggo UK/Australia Appointed May 2017 Senior leadership team Jimmy Smith Canada Director general Iain Wright UK Deputy director general, Integrated Sciences Dieter Schillinger Germany Deputy director general, Biosciences Misja Brandenburg Netherlands Director, Corporate Services (left June 2018) Albin Hubscher Colombia Interim director, Corporate Services (joined July 2018) Shirley Tarawali UK Assistant director general, Planning and Partnerships Siboniso Moyo Zimbabwe Director general’s representative in Ethiopia Stella Kiwango Tanzania Director, People and Organizational Development Thomas Randolph USA Director, CGIAR Research Program on Livestock Douwehan Mignouna USA Director, BecA-ILRI Hub Advocates Auditors Oraro & Co Advocates Ernst & Young LLP ACK Garden Annex, 6th Floor Certified Public Accountants 1st Ngong Avenue Kenya Re Towers, Upper Hill, off Ragati Road PO Box 51236–00200 P. O. Box 44286–00100 Nairobi, Kenya Nairobi, Kenya Address International Livestock Research Institute International Livestock Research Institute Box 30709-00100, Nairobi 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 6 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Statement of purpose The International Livestock Research Institute (ILRI) agri-food systems based approaches, nutrition and health, envisions a world where all people have access to climate change, soils and degraded land, reducing enough food and livelihood options to fulfil their food systems waste, food safety, global stewardship of potential. ILRI’s mission is to improve food and nutritional genetic resources, and big data and information and security and to reduce poverty in developing countries communication technologies. through research for efficient, safe and sustainable use of livestock - ensuring better lives through livestock. The CGIAR Portfolio 2017-2022 is structured around two interlinked clusters of challenge-led research. The ILRI’s three strategic objectives are: first of these is the innovation in agri-food systems which 1. With partners, to develop, test, adapt and promote involves adopting an integrated, agricultural systems science–based practices that –being sustainable and approach to advancing productivity, sustainability, scalable–achieve better lives through livestock. nutrition and resilience outcomes at scale. The second cluster consists of four cross-cutting global integrating 2. With partners, to provide compelling scientific programs framed to work closely with the agri-food evidence in ways that persuade decision makers– systems programs within relevant agro-ecological from farms to boardrooms and parliaments–that systems. smarter policies and bigger livestock investments can deliver significant socio-economic, health and ILRI leads the CGIAR Research Program (CRP) on environmental dividends to both poor nations and Livestock and participates in three other CGIAR research households. programs. ILRI is also a major partner in the Genebanks platform and participates in the CGIAR Platform for Big 3. With partners, to increase capacity among ILRI’s key Data in Agriculture. stakeholders to make better use of livestock science and investments for better lives through livestock. Within ILRI, research staff work in one of ILRI’s seven research programs covering integrated sciences and ILRI is the co-founder, with the African Union New biosciences that develop and deliver science-based Partnership for Africa’s Development (AU-NEPAD), of practices, provide scientific evidence for decision-making the Biosciences eastern and central Africa (BecA-ILRI) and develop capacities of livestock-sector stakeholders. Hub on its Nairobi campus where world-class facilities for biotechnology research are in use by ILRI, other Partnership research international centres and many national partners. ILRI works with partners worldwide to achieve its mission. As a relatively small institute with a large global mandate, CGIAR partnership remains the institute’s fundamental modus ILRI is one of the 15 CGIAR research centres, a global operandi. The institute’s current strategy requires that ILRI research partnership that unites organizations engaged increases the range as well as the number of its partners. in research for a food-secure future. CGIAR research is dedicated to reducing poverty, enhancing food and Locations and staff nutrition security, and improving natural resources and ILRI is co-hosted by the governments of Kenya and ecosystem services. Ethiopia and has offices in 9 other countries in Africa (Burkina Faso, Burundi, Ghana, Mali, Mozambique, Built on a strong partnership between CGIAR’s funders Nigeria, Tanzania, Uganda and Zimbabwe); 4 offices in and 15 centres, the governance model focuses on Asia (China, India, Pakistan and Vietnam), and 2 other enabling CGIAR’s centres and partners to conduct hosting locations: Costa Rica and Scotland. In 2018, ILRI high-quality research for development based on a solid had 668 permanent staff. Most of the staff members (80%) foundation of clearly defined roles, responsibilities and are nationally recruited largely from Kenya and Ethiopia. accountabilities. Research is carried out by the 15 centres Out of the total number of permanent staff, 135 were that are members of CGIAR in close collaboration with internationally recruited staff comprising 35% female. hundreds of partner organizations, including national and An increasing number of scientists at ILRI hold joint regional research institutes, civil society organizations, appointments with other partner institutions. academia and the private sector. Governance The CGIAR Portfolio 2017-2022 builds on aspects of the The Board of Trustees (the Board) comprises 13 CGIAR Portfolio 2010-2016 to maintain momentum in outstanding professionals with particular expertise in selected areas, but puts more emphasis on integrated the fields of livestock science, agricultural research, INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 7 2018 F I N A N C I A L S T A T E M E N T S development and corporate management. The Board from the North and South. In-kind support from national serves as the governing body of the institute primarily partners, particularly Kenya and Ethiopia, as well from through its governance and oversight roles of ensuring other countries and international collaborators, is that ILRI functions to the highest standard to execute its substantial and vital. This mix of generic, specific and in- mission and deliver on its strategy. The Board ensures kind resources is essential for the partnership research ILRI that plans and programs are appropriate for carrying out conducts. ILRI’s mandate, that they are in line with CGIAR priorities, and that they are aligned with the institute’s mission. ILRI acknowledges the countries and organizations that The Board has fiduciary responsibility for ILRI’s financial supported its research in 2018, which are listed in Exhibits resources. 1 through II. The institute could not have advanced its mission without their intellectual as well as financial Funding support. ILRI is financed by CGIAR, major multilateral and bilateral donors, foundations and governments. Funding for Signed on behalf of the Board of Trustees by: the CRPs is disbursed using a three-window modality. For Window 1, funds are allocated to CRPs, payment of system costs and any other use required to achieve CGIAR’s mission. Window 2 funds are contributions designated by fund donors to one or more specific CRPs. Window 3 funds are contributions designated by the fund ______________________________ donors to individual CGIAR centres for specific pieces Jimmy Smith of work. Bilateral funds are from a large group of public, Director general governmental, foundations and private organizations 7 May 2019 In 2018, ILRI had 668 permanent staff. Most of the staff members (80%) are nationally recruited largely from Kenya and Ethiopia. Out of the total number of permanent staff, 135 were internationally recruited staff comprising 35% female. 8 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Corporate governance The basic principles and rules concerning the and safety practices of the institute. It avoids entering into organization and operation of the Board of Trustees matters that are properly the preserve of management. of ILRI are laid down in the institute’s constitution The Nominations and Governance Committee advises the and in the Board’s rules of governance. Board on its composition, functioning and governance and guides the processes for selection and recruitment of The Board comprises six committees: (a) Program the director general. Committee, (b) Finance Committee, (c) Audit and Risk Committee, (d) Human Resource Committee, The Executive Committee acts for the full Board in (e) Nominations and Governance Committee and (f) between Board meetings and on matters which the Board Executive Committee. In November 2018, responsibilities delegates to it. of the Human Resource Committee of the Board were incorporated into the full Board responsibilities, meaning Membership of the Board committees henceforth the Board will have five committees: Program, During 2018 the Program, Finance, Audit and Risk and Finance, Audit and Risk, Nominations and Governance Human Resource committees of the Board were made up and Executive. of all Board members. The Board Executive Committee consists of the Board chair, and chairs of all other Purpose of the committees committees and the director general. The Nominations The Program Committee addresses all matters regarding and Governance Committee is made up of chairs of all the conception, elaboration, implementation and committees and is chaired by the Board chair. evaluation of the institute’s programs of research, training and information. The committee provides directives Frequency of Board meetings concerning program orientation or conduct for the benefit The Board of Trustees meets twice a year in April/May and of the director general and senior management. It also in October/November. In 2018, the April meeting was advises on optimizing program implementation and held in Addis Ababa, Ethiopia, and the October meeting related matters. in Nairobi, Kenya. The Finance Committee ensures that the Board fulfils its External audit fiduciary responsibilities related to the budget preparation, ILRI’s auditors are appointed by the Board for a period of budget execution, and financial systems and management four years. The current auditors, Ernst & Young LLP, were reporting practices of the institute. The committee carries appointed in July 2015 for the first four-year term subject out its work against the backdrop of the institute’s research to performance. In November 2018, the Board approved strategies, its operating procedures, and policies as the retention of EY LLP for an additional two years, noting approved by the Board. this to be within the provisions of Financial Guideline 3 of the CGIAR. The external auditors present and discuss the The Audit and Risk Committee is responsible for annual financial audited reports with the Audit and Risk advising ILRI’s Board on all matters relating to ILRI’s Committee in the April/May Board meeting. financial reporting and procedures, internal control and audit systems, standard operating procedures, external audit appointment and functions, compliance and risk assessment and management. The committee reviews and recommends Board approval or rejection of the external audit report on the institute’s annual financial statements. _________________________ The committee may request information or commission Lindsay Falvey investigations into matters within its scope from Chair, Board of Trustees internal and external auditors, and if necessary appoint 7 May 2019 independent consultants/counsel. The Human Resource Committee provides assistance to the Board in fulfilling its responsibilities related to policies concerning the human resources and occupational health INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 9 2018 F I N A N C I A L S T A T E M E N T S Statement by the chair of the Board of Trustees ILRI’s livestock research agenda continues to address The Board has encouraged management to conceptualize many of the world’s most pressing sustainable the institute’s portfolio as a research business which will development challenges and to raise the profile of enhance resourcing in future. livestock globally. Our research contributes to both the CGIAR System Level Outcomes and to the Sustainable In 2018, ILRI engaged and supported CGIAR system- Development Goals. wide events and processes, including participation of the Board chair and director general in the CGIAR In addition to leading the Livestock CRP, ILRI delivers General Assembly in Rabat, Morocco in January. The livestock science primarily to three other CRPs including director general completed his term as a member of the Agriculture for Nutrition and Health, Climate Change System Management Board (SMB) in August 2018, and Agriculture and Food Security and Policies, Institutions the SMB held its 10th meeting in Nairobi in September, and Markets. ILRI scientists also make substantive hosted by ILRI and the World Agroforestry Centre. ILRI contributions to the platforms for Genebanks, Excellence staff were active contributors to many system events and in Breeding and Big Data. Given ILRI’s role as lead centre communities of practice throughout 2018. for the Livestock CRP, the Board exercises its responsibility through direct review of the program’s plan of work and ILRI has continued to undertake activities to raise the budget, its annual report and reports from the director profile of the livestock sector and emphasize its crucial at every Board meeting. Annually the Board receives roles in sustainable development, to some extent a report from the Livestock CRP Independent Steering countering the negative media coverage of the sector in Committee (ISC) and during 2018, the Board approved many high-income economies. In 2018, ILRI participated the appointment of the fifth member of the ISC, thus in a number of UN events including the Committee on the completing the full complement of members. Status of Women, the High Level Political Forum and the Committee on Food Security. At the latter, ILRI, along with Among ILRI’s research highlights in 2018 were the other partners hosted a side event that highlighted the publication of a high-profile literature review on the importance of livestock foods for nutrition, particularly its critical importance of livestock foods during the first critical role during the first 1,000 days of human life. The 1,000 days of life; the development of a new survey and evidence review ‘The influence of livestock-derived foods modelling tool to measure performance indicators at on nutrition during the first 1,000 days of life’ was also the farm household level in developing countries; the profiled in June at the EAT Forum at a side event https:// elaboration of a cross-national index to monitor and news.ilri.org/2018/06/07/eat-forum2018/. A microsite compare women’s empowerment through livestock; the highlighting evidence-based livestock information about development of a smartphone app to help government key development challenges was launched during 2018 agencies in Kenya survey livestock disease and accurately (www.whylivestockmatter.org). target vaccination campaigns; a continuing and enhanced emphasis on mentoring African women scientists; a In 2018, the Board held two meetings. The first, in April South-South initiative on food safety programs among in Addis Ababa, Ethiopia, and the second in late October several east Asian governments; the creation of new in Nairobi, Kenya. Adjacent to the April meeting, Board training courses on food safety and vaccinations and a members also participated in two high-profile events, the renewed and expanded program in south India to convert launch of a poultry facility in Ethiopia https://news.ilri. crop residue to animal feed. org/2018/04/26/art-and-science-bring-poultry-genetics-to- life-in-ethiopia-while-celebrating-local-diversity-in-all-its- In 2018, funding through Windows 1 and 2 constituted forms/ and a national conference of the Feed the Future about 27% (up from 21% in 2017) of the institute’s total Accelerated Value Chain Development program https:// income of USD77.7 million. With Window 3 and bilateral news.ilri.org/2018/05/16/kenyan-president-kenyatta- funding constituting the majority of resources, CRP and headlines-conference-at-ilri-nairobi-on-innovations-in- ILRI management pays attention to ensuring that projects kenyas-agricultural-sector/. Both events were graced are aligned and contributing to the CGIAR and institute by highprofile government, national and international agendas. Board and management continue to support a officials and ILRI was honoured to welcome the president multidimensional resource mobilization strategy aligned of Kenya HE Uhuru Kenyatta to the event in Nairobi. with overall CGIAR initiatives and spanning Window 1 At its April meeting, the Board invited the current chair and 2 support as well as bilateral and Window 3 funds. to extend his term (scheduled to end in April 2019) 10 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S for one year to April 2020. I was pleased to accept the evaluation of the director general’s performance invitation and am honoured to continue to serve this in accordance with the centre’s human resource vibrant institute with its essential and compelling mission policies; ‘better lives through livestock’ at this time. At the October 3. The Board of Trustees has carried out an annual meeting, Board members Suzanne Petersen and Rodney evaluation of the performance of the Board chair, the Cooke completed their terms and were congratulated Board secretary and the overall functioning of the and thanked by Board, management and staff for their Board and its committees; and outstanding contributions to the institute over a period of 4. The Board and all committees have complied with six years. The Board unanimously approved second three- their respective mandates and terms of reference. year appointments (November 2019 to November 2022) for Board members Elsa Murano and Jing Zhu. The Board is pleased to note the continued fi nancial health and stability and the sound and prudent During 2018, the Board approved the retention of ILRI’s management of the institute’s fi nancial resources. In current external auditors Ernst & Young LLP for the next 2018, ILRI had an operating budget of USD82 million. two years 2019 and 2020. It was noted that while an Revenue in 2018 amounted to USD77.7 million against additional 2 years extension would be an exception expenditure of USD77.4 million resulting in a surplus of to ILRI’s Financial Note No.13, this 6-year service USD0.3 million. The institute’s undesignated net assets term remains within the CGIAR Financial Guideline 3 at the end of 2018 amount to USD22.2 million (total net recommended rotation period of 5 to 7 years. The Board assets amount to USD34.8 million) with liquidity and also approved a revised Internal Audit Charter and new operational reserve levels above CGIAR recommended ILRI policies on data privacy and protection, insurance ranges. and anti-money laundering and anti-terrorism fi nancing. The Board remains confi dent that based on sound The Board noted that ILRI continued to maintain a fi nancial and programmatic planning, management and conservative investment strategy with investments limited implementation, the institute remains well positioned to to fi xed-term deposits and short-term call deposits with a deliver on its mission. The Board would like to thank all limited number of quality banks. Overall the institute has ILRI staff for their continued commitment and hard work. operated well within its investment policy and the Board On behalf of the members of the Board, I thank our recognizes the excellent treasury management. investors and partners for their confi dence and continued support that is allowing the institute to fulfi l its mission. I certify that, to the best of my knowledge and belief, 1. 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 confl icts of interests, whether perceived or actual, and _________________________ appropriate action has been taken to manage any Lindsay Falvey such confl icts; Chair, Board of Trustees 2. The Board of Trustees has carried out an annual 7 May 2019 Operating budget Revenue in 2018 USD82m USD77.7m Expenditure Surplus USD77.4m USD0.3m Undesignated net assets Total net assets USD22.2m USD34.8m INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 11 2018 F I N A N C I A L S T A T E M E N T S Eggs in a street just outside Nghia Tan market in Hanoi, Vietnam (photo credit: ILR/Chi Nguyen). In 2018, ILRI had an operating budget of USD82 million. Revenue in 2018 amounted to USD77.7 million against expenditure of USD77.4 million resulting in a surplus of USD0.3 million. 2018 F I N A N C I A L S T A T E M E N T S Borana bull at a livestock breeders show in Kenya (photo credit: ILRI/Paul Karaimu). 2018 Financial Statements INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 13 2018 F I N A N C I A L S T A T E M E N T S Five-year financial review 2014 2015 2016 2017 2018 CGIAR USD‘000 USD‘000 USD‘000 USD‘000 USD‘000 benchmarks Income 87,033 76,734 76,181 71,729 77,759 Expenses 86,024 74,595 77,025 72,696 77,425 Surplus/ (loss) 1,009 2,140 (844) (967) 334 Assets Non-current 9,238 10,191 10,713 13,872 15,094 Current 94,845 88,311 82,420 79,904 75,898 Total assets 104,083 98,502 93,133 93,775 90,993 Net assets and liabilities Net assets 34,148 36,229 35,388 34,416 34,750 Non-current liabilities 4,818 5,200 5,220 5,550 5,763 Current liabilities 65,117 57,072 52,526 53,809 50,480 Total net assets and liabilities 104,083 98,502 93,133 93,776 90,993 Short-term stability indicator liquidity (days) 142 173 165 150 155 CGIAR min 90- 120 days Long-term stability indicator (days) 101 120 113 110 135 CGIAR min Cash management of restricted operations 17% 23% 20% 27% 27% 75-90 days Current ratio 1.4 1.5 1.6 1.5 1.5 Income and expenditure (USD millions) Total income 14 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Income by funding source (USD millions) Grants (bilateral +W3) CRP W1/W2 Other centre income Expenses by natural classification (USD millions) Personnel Supplies and services Collaborators - CGIAR Collaborators - Non-CGIAR Travel Depreciaon Cash, donor, payables and receivables (USD millions) Cash and cash equivalents Donors payables Donors receivables INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 15 2018 F I N A N C I A L S T A T E M E N T S Liquidity and adequacy of reserves (days) Capex and depreciation (USD millions) Napier grass in Nyando, Kenya (photo credit: S. Kilungu/CCAFS). 16 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S In addition to leading Chicks at a farm in western Kenya (photo credit: C. Schubert/CCAFS). the Livestock CRP, ILRI delivers livestock science primarily to three other CRPs including Agriculture for Nutrition and Health, Climate Change Agriculture and Food Security and Policies, Institutions and Markets. 2018 F I N A N C I A L S T A T E M E N T S Statement of management responsibilities Management is required to prepare consolidated fi nancial statements for each fi nancial 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 fi nancial year and of the consolidated results of activities and cash fl ows 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 fi nancial 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 fi nancial statements in accordance with International Financial Reporting Standards and for such internal controls as trustees determine are necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error. Management accepts responsibility for the annual fi nancial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards. Management is of the opinion that the fi nancial statements give a true and fair view of the state of the fi nancial affairs of the institute and its subsidiary and of its consolidated results of activities and cash fl ows. Management further accepts responsibility for the maintenance of accounting records, which may be relied upon in the preparation of fi nancial statements, as well as adequate systems of internal fi nancial control, selecting and applying appropriate accounting policies and making accounting estimates and judgments that are reasonable in the circumstances. The Board of Trustees exercises its responsibility for these fi nancial statements through its Finance, and Audit and Risk committees. The committees interact regularly with management, internal auditors and external auditors to review matters relating to fi nancial planning, fi nancial 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 going concerns for at least the next 12 months from the date of this statement. Signed on behalf of management by: _______________________ ________________________ Jimmy Smith Robert Nzioka Director general Chief fi nancial offi cer 7 May 2019 7 May 2019 18 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S ILRI Board statement on risk management The ILRI Board has 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 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 has delegated its authority to the Audit and Risk Committee (A&RC) to review and determine 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, 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 endeavors 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. The design and effectiveness of the risk management system and internal controls is subject to ongoing 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 through the A&RC. Taken together, the Board is satisfied with the attention paid by management to risk. With regard to ILRI’s 2018 Financial Statements and the effectiveness of internal controls over financial reporting, the A&RC reviewed management’s assertions in its 2018 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. The Board also remains very alert to the impact of external events, which the institute has no control over, other than to monitor and, as the occasion arises, to provide mitigation. __________________________________ Lindsay Falvey Chair, Board of Trustees 7 May 2019 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 19 2018 F I N A N C I A L S T A T E M E N T S Independent auditor’s report We have audited the accompanying financial statements information is materially inconsistent with the financial of the International Livestock Research Institute (ILRI) set statements or our knowledge obtained in the audit, or out on pages 27 to 84, which comprise the consolidated otherwise appears to be materially misstated. If, based on statement of financial position as at 31 December 2018, the work we have performed, we conclude that there is and the consolidated statement of activities, consolidated a material misstatement of this other information, we are statement of changes in net assets and consolidated required to report that fact. We have nothing to report in statement of cash flows, for the year then ended, and this regard. notes to the consolidated financial statements, including a summary of significant accounting policies. Responsibilities of management and those charged with governance for the consolidated financial statements In our opinion, the accompanying consolidated financial Management is responsible for the preparation and fair statements give a true and fair view of the consolidated presentation of the consolidated financial statements financial position of ILRI as at 31 December 2018, and in accordance with IFRS, and for such internal control its consolidated financial performance and consolidated as management determines is necessary to enable the cash flows for the year then ended in accordance with preparation of consolidated financial statements that are International Financial Reporting Standards (IFRS). free from material misstatement, whether due to fraud or error. Basis for opinion We conducted our audit in accordance with International In preparing the consolidated financial statements, Standards on Auditing (ISAs). Our responsibilities under management is responsible for assessing the institute’s those standards are further described in the Auditor’s ability to continue as a going concern, disclosing, Responsibilities for the Audit of the Consolidated as applicable, matters related to going concern and Financial Statements section of our report. We are using the going concern basis of accounting unless independent of the institute in accordance with the management either intend to liquidate the institute or to International Ethics Standards Board for Accountants’ cease operations, or have no realistic alternative but to code of ethics for professional accountants (IESBA Code). do so. Those charged with governance are responsible for We have fulfilled our other ethical responsibilities in overseeing the institute’s financial reporting processes. accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits Auditor’s responsibilities for the audit of the consolidated of consolidated financial statements in Kenya. We believe financial statements that the audit evidence we have obtained is sufficient and Our objectives are to obtain reasonable assurance about appropriate to provide a basis for our opinion. whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud Other information or error, and to issue an auditor’s report that includes The Trustees are responsible for the other information. The our opinion. Reasonable assurance is a high level of other information comprises the organization information, assurance but is not a guarantee that an audit conducted the statement of purpose, corporate governance, the in accordance with ISAs will always detect a material statement by the chair of the Board of Trustees, statement misstatement when it exists. Misstatements can arise from of management responsibilities and the ILRI Board fraud or error and are considered material if, individually statement on risk management. The other information or in the aggregate, they could reasonably be expected to does not include the consolidated financial statements influence the economic decisions of users taken on the and our auditor’s report thereon. basis of these consolidated financial statements. Our opinion on the financial statements does not cover As part of an audit in accordance with ISAs, we exercise the other information and we do not express an audit professional judgement and maintain professional opinion or any form of assurance conclusion thereon. scepticism throughout the audit. We also: In connection with our audit of the consolidated financial • Identify and assess the risks of material misstatement statements, our responsibility is to read the other of the consolidated financial statements, whether information and, in doing so, consider whether the other due to fraud or error, design and perform audit 20 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S procedures responsive to those risks, and obtain obtained up to the date of our auditor’s report. audit evidence that is sufficient and appropriate However, future events or conditions may cause the to provide a basis for our opinion. The risk of not institute to cease to continue as a going concern. detecting a material misstatement resulting from fraud is higher than for one resulting from error, as • Evaluate the overall presentation, structure and fraud may involve collusion, forgery, intentional content of the consolidated financial statements, omissions, misrepresentations, or the override of including the disclosures, and whether the internal control. consolidated financial statements represent the • Obtain an understanding of internal control relevant underlying transactions and events in a manner that to the audit in order to design audit procedures achieves fair presentation. that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the We communicate with the Trustees regarding, among effectiveness of the institute’s internal control. other matters, the planned scope and timing of the audit and significant audit findings, including any significant • Evaluate the appropriateness of accounting policies deficiencies in internal control that we identify during our used and the reasonableness of accounting estimates audit. and related disclosures made by the Trustees. The engagement partner responsible for the audit resulting • Conclude on the appropriateness of the Trustees use in this independent auditor’s report is CPA Nancy Muhoya of the going concern basis of accounting and based Practicing Certificate No. 2158. on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the institute’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 Nairobi, Kenya disclosures are inadequate, to modify our opinion. 7 May 2019 Our conclusions are based on the audit evidence Farmer herding black goats in Yunnan, China, 2005 (photo credit: ILRI/ Stevie Mann). INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 21 2018 F I N A N C I A L S T A T E M E N T S The Board would like to A sow and its piglets on a farm in Lira District, Uganda (photo credit: ILRI/Brian Kawuma). 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 fulfill its mission. 2018 F I N A N C I A L S T A T E M E N T S Consolidated statement of fi nancial position 2018 2017 Note USD’000 USD’000 Current assets Cash and cash equivalents 6 55,192 57,701 Accounts receivable 7 17,326 18,980 Prepaid expenses 8 2,901 2,611 Inventories 9 480 611 Total current assets 75,899 79,903 Non-current assets Property, plant, equipment and intangible assets 10 13,249 12,320 Biological assets 11 1,845 1,552 Total non-current assets 15,094 13,872 TOTAL ASSETS 90,993 93,775 Current liabilities Accounts payable 12 48,126 47,158 Provisions 13 283 589 Accruals 14 2,070 6,062 Total current liabilities 50,479 53,809 Non-current liabilities Long-term employee benefi ts 15 5,763 5,550 Total non-current liabilities 5,763 5,550 Net assets Undesignated 22,180 19,145 Designated 12,571 15,271 Total net assets 34,751 34,416 TOTAL NET ASSETS AND LIABILITIES 90,993 93,775 The consolidated fi nancial statements were approved by the Board of Trustees on 7 May 2019 and were signed on its behalf by: __________________________ __________________________ Jimmy Smith Robert Nzioka Director general Chief fi nancial offi cer 7 May 2019 7 May 2019 The notes and exhibits set out on pages 27 to 84 form an integral part of these consolidated fi nancial statement INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 23 2018 F I N A N C I A L S T A T E M E N T S Consolidated statement of activities and other comprehensive income 2018 2017 Note USD’000 USD’000 REVENUE Unrestricted 17 - - Window 1 and Window 2 17 20,761 15,050 Window 3 17 28,053 29,436 Bilateral 17 18,097 17,723 Other revenues and gains 18 8,009 6,438 Sale of livestock 19 250 252 Fair value gain on livestock 21 262 33 Cost of sale of livestock 20 (58) (107) TOTAL REVENUE AND GAINS 75,374 68,825 EXPENSES Research expenses 23 47,822 44,287 Collaborator expenses 24 14,806 14,264 General and administration expenses 25 9,601 8,707 Other expenses and losses 26 4,351 4,886 TOTAL OPERATING EXPENSES 76,580 72,144 Financial income 27 2,327 2,904 Financial expenses 27 (791) (552) SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES 330 (967) OTHER COMPREHENSIVE INCOME Other comprehensive income that may be reclassified to profit or loss in subsequent periods Exchange differences on translation of foreign operations 5 (4) TOTAL OTHER COMPREHENSIVE INCOME 5 (4) TOTAL SURPLUS/(DEFICIT) FOR THE YEAR 335 (971) The notes and exhibits set out on pages 27 to 84 form an integral part of these consolidated financial statements. 24 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 25 Consolidated statement of changes in net assets FOR THE YEAR ENDED 31 DECEMBER 2018 Description Undesignated Designated Designated Kapiti reserves investment replacement exchange ILRI in fixed of centre translation designated assets assets reserves reserves Total *USD’000 USD’000 USD’000 *USD’000 *USD’000 USD’000 At January 2017 20,845 10,580 3,960 2 14,542 35,387 Surplus/deficit for the year (967) - - (967) Exchange translation* - (4) (4) (4) Total comprehensive income for the year (967) - - (4) (4) (971) Centre fixed assets replacement 419 (419) (419) - Net change in investment in fixed assets (1,152) 1,152 - 1,152 - Balance as at December 2017 19,145 11,732 3,541 (2) 15,271 34,416 At January 2018 19,145 11,732 3,541 (2) 15,271 34,416 Surplus/deficit for the year 330 - - - - 330 Exchange translation - - - 5 5 5 Total comprehensive income for the year 330 - - 5 5 335 Centre fixed assets replacement 3,541 - (3,541) - (3,541) - Net change in investment in fixed assets (836) 836 - - 836 - Balance as at December 2018 22,180 12,568 (0) 2 12,570 34,751 *Exchange translation on opening reserves in subsidiary and opening balance of assets. *Undesignated reserves refer to that part of net assets that is not allocated by management for specific purposes. *Designated reserves refer to that part of net assets that has been allocated by management for specific purposes such as future acquisition of property and equipment and replacement of the institute’s assets. The notes and exhibits set out on pages 20 to 88 form an integral part of these consolidated financial statements. 2018 F I N A N C I A L S T A T E M E N T S Consolidated statement of cash flows 2018 2017 Note USD’000 USD’000 CASH FLOWS FROM OPERATING ACTIVITIES Surplus/deficit for the year 330 (971) Adjustments to reconcile surplus or deficit to net cash flows Depreciation on property and equipment and amortization of intangible assets 10 2,752 2,135 Finance income 27 (2,327) (2,904) Finance expenses 27 809 551 Fair value adjustments on biological assets 21 (262) 33 Movement in long-term employee benefits 15 697 939 Movements in provisions for bad and doubtful debts 7 (623) 237 Movements in provisions 13 (186) 581 Leave accrual 12 36 (147) Other fixed movements and exchange differences 5 (10) Decrease (increase) in assets Account receivables 7 1,654 (4,183) Prepayments 8 (290) (311) Inventories 9 132 31 Increase (decrease) in liabilities Account payables 12 932 (151) Provisions paid 13 (120) (252) Accruals 14 (3,992) 1,252 Subtotal (453) (3,164) Interest received 1,509 1,560 Net cash inflow (outflow) from operating activities 1,057 (1,604) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment 10 (3,548) (3,829) Purchase of biological assets 11 (17) - Net cash inflow (outflow) from investing activities (3,565) (3,829) Net decrease/increase in cash and cash equivalents (2,509) (5,432) Cash and cash equivalents at the beginning of the year 57,701 63,133 Cash and cash equivalent at the end of the year 6 55,192 57,701 The notes and exhibits set out on pages 27 to 84 form an integral part of these consolidated financial statements. 26 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements 1. REPORTING ENTITY ILRI’s research and the livestock agenda remains highly relevant to addressing the world’s pressing sustainable Creation and status of ILRI development challenges and the institute continues to The International Livestock Research Institute (ILRI) was deliver valuable research products and raise the profile of created as an international organization by an agreement livestock in this regard. dated 21 September 1994 signed in Berne, Switzerland, by the governments of Switzerland, Denmark, Sweden, With a better alignment between ILRI’s internal programs Kenya and Ethiopia and the United Nations Environment and the CRPs, the institute’s livestock research is well Programme. On 1 January 1995, all the activities, positioned to contribute to the CGIAR System Level assets, liabilities and fund balances of the International Outcomes and the Sustainable Development Goals. In Laboratory for Research on Animal Diseases (ILRAD) 2018, funding through Windows 1 and 2 constituted based in Nairobi, Kenya, and the International Livestock about 28% (up from 21% in 2017) of the institute’s total Centre for Africa (ILCA) based in Addis Ababa, Ethiopia, income of USD77.7 million. The Board and management were transferred to ILRI. thus continue to emphasize the importance of attracting Window 1 and 2 support and also raising bilateral ILRI operates under agreements entered into with the resources through a robust and multifaceted resource governments of the respective host countries (Kenya and mobilization strategy aligned with overall CGIAR Ethiopia). initiatives. The Government of Kenya (1974) and the Government of The financial statements of ILRI have been consolidated Ethiopia (1976) made available to ILRI leasehold land of with the financial statements of its subsidiary–Kapiti Plains approximately 70 hectares and 32 hectares, respectively. Estate Limited. ILRI is a CGIAR research centre, operating under the Subsidiary–Kapiti Plains Estate Limited name CGIAR System Organization since 1 July 2016. Kapiti Plains Estate Limited is a wholly owned subsidiary The CGIAR System Organization is a global research of ILRI purchased in 1981 and registered under the partnership for a food-secure future. The System Companies Act of Kenya. The company operates a ranch Organization advances international agricultural research that was acquired primarily to support the research needs for a food-secure future by integrating and coordinating of ILRI. The subsidiary sells surplus livestock to third the efforts of those who fund research and those who parties. The loss for the year ending 31 December 2018 do the research. The CGIAR System Organization is amounted to USD489k (2017: USD384k). At the end comprised of the System Management Board, the System of 31 December 2018, the subsidiary had a receivable Management Office, and 15 research centres. balance of USD3m (2017:2.2m) in ILRI’s books. ILRI’s livestock research agenda continues to address 2. SUMMARY OF SIGNIFICANT ACCOUNTING many of the world’s most pressing sustainable POLICIES development challenges and to raise the profile of livestock globally. Our research contributes to both the (a) Basis of preparation CGIAR System Level Outcomes and to the Sustainable The financial statements of the group (which comprises Development Goals. ILRI and its whole owned subsidiary, Kapiti Plains Estate Limited) have been prepared in accordance with CGIAR Research Programs (CRPs) International Financial Reporting Standards (IFRS) as 2018 was the second full year for ILRI’s realigned research issued by the International Accounting Standards Board programs as well as the second year of the second phase (IASB). of CGIAR research programs (CRPs). In addition to leading the Livestock CRP, ILRI delivers livestock science These financial statements for the year ended 31 primarily to three other CRPs including Agriculture for December 2018 are the second the group has prepared in Nutrition and Health, Climate Change Agriculture and accordance with IFRS. Food Security and Policies, Institutions and Markets. ILRI scientists also make substantive contributions to the The consolidated financial statements have been prepared platforms for Genebanks, Excellence in Breeding and Big on a historical cost basis, except for biological assets Data. belonging to the subsidiary which have been measured at fair value. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 27 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) (b) Basis of consolidation affects both current and future periods. The consolidated financial statements comprise the financial statements of the institute and its subsidiary, In particular, information about significant areas of Kapiti Plains Estate Limited, in which the institute holds estimation and critical judgement in applying accounting 100% of the voting rights as at 31 December 2018. policies that have the most significant effect on the amounts recognized in the financial statements are Control is achieved when the institute is exposed, or has described in Note 4. rights, to variable returns from its involvement with the investee and has the ability to affect those returns through (e) Revenue recognition its power over the investee. Specifically, the institute Grant revenue controls an investee if, and only if, the institute has: Revenue is recognized to the extent that it is probable • Power over the investee (i.e. existing rights that give that the economic benefits will flow to the group and the it the current ability to direct the relevant activities of revenue can be reliably measured, regardless of when the investee). the payment is received. Revenue is measured at the fair • Exposure, or rights, to variable returns from its value of the consideration received or receivable, taking involvement with the investee. into account contractually defined terms of payment • The ability to use its power over the investee to affect and excluding taxes or duty. The group assesses its its returns. revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The group Subsidiaries are fully consolidated from the date on has concluded that it is acting as a principal in all of its which control is transferred to the group. They are de- revenue arrangements. consolidated from the date the control ceases. Revenue is the gross inflow of economic benefits during All inter-company balances, transactions, income and the period arising in the course of the ordinary activities expenses and profits and losses resulting from inter- of a CGIAR centre, where those inflows result in increases company transactions are eliminated in full. in net assets. The major portion of a centre’s revenue is derived through the receipts of donor grants–either Where necessary, adjustments are made to the financial ‘Unrestricted’ or ‘Restricted’. statements of subsidiary to bring their accounting policies into line with those used by other members of the group. Unrestricted grant revenue arises from the unconditional transfer of cash or other assets to ILRI. Restricted grant (c) Functional and presentation currency revenue arises from a transfer of resources to ILRI in The consolidated financial statements are presented in return for past or future compliance related to the United States dollars (USD) and all values are rounded to operating activities of the institute. Unrestricted grants are the nearest thousand (USD’000 ), which is the institute’s recognized upon receipt of confirmed commitment. functional currency. Restricted grants are recognized as revenue upon (d) Use of estimates and judgments the fulfilment of donor-imposed conditions. Revenue The preparation of financial statements involves the use associated with the transaction is recognized by making of estimates and assumptions that affect the reported reference to the stage of completion of the transaction at amounts of assets and liabilities and disclosures of the reporting date. When the outcome of the transaction contingent assets and liabilities at the date of the financial cannot be estimated reliably, revenue is recognized only statements and the reported amounts of revenues and to the extent of the expenses that are recoverable. expenses during the reported period. Although these estimates are based on the management’s best knowledge When the group receives non-monetary grants, the asset of current events and actions, actual results ultimately and the grant are recorded gross at nominal amounts may differ from the estimates. and released to profit or loss over the expected useful life of the asset, based on the pattern of consumption The estimates and underlying assumptions are reviewed of the benefits of the underlying asset by equal annual on an ongoing basis. Revisions to accounting estimates instalments. When loans or similar assistance are provided are recognized in the period in which the estimate is by governments or related institutions with an interest rate revised if the revision affects only that period or in the below the current applicable market rate, the effect of this period of the revision and future periods if the revision favourable interest is regarded as a government grant. 28 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Other revenue and gains other than the USD are translated into USD at the exchange rates prevailing at the year end. Policy applicable before 1 January 2018 iv) Gains and losses arising from changes in exchange Other revenues and gains are recognized as they are rates are charged to the statement of activities in the earned. Revenue is recognized to the extent that it is year in which they arise. probable that the economic benefits will flow to the group v) On consolidation, exchange translation on opening and the revenue can be reliably measured. Revenue is reserves in the subsidiary is recognized in other measured at the fair value of the consideration receivable, comprehensive income and in the translation reserve excluding discounts, sales taxes, excise duties and similar in net assets. levies. Revenue from rendering of services is recognized when service is completed. (g) Cash and cash equivalents Cash equivalents are short-term, highly-liquid investments Policy applicable after 1 January 2018 that are both readily convertible to known amounts Revenue from contracts with customers of cash and so near maturity date that they present Other revenue and gains are recognized at an amount that insignificant risk of changes in value. reflects the consideration to which the group expects to be entitled in exchange for transferring goods or services For the purpose of the consolidated statement of cash to a customer. Revenue from service charges which is the flows, cash and cash equivalents consist of cash and only revenue from contract with customers, is recognized short-term deposits, as defined above, net of outstanding at the point in time when the services are provided to bank overdrafts as they are considered an integral part of the customer (fulfills the performance obligations) at the the group’s cash management. contractual rates. (h) Financial instruments For the years ended 31 December 2017 and 31 December 2018, the group did not have any contracts with Initial recognition and measurement customers exceeding one calendar year or any unfulfilled performance obligations under the contracts as at the year Policy applicable before 1 January 2018 end. All financial instruments are initially recognized at fair value, plus, in the case of financial assets and liabilities In adopting IFRS 15, the group took consideration of areas not at fair value through profit or loss, transaction costs mentioned in the IFRS such as: right of return, options that are directly attributable to the acquisition or issue. to acquire additional goods and services, discounts, Financial instruments are recognized when the group coupons, free services to customers, service warranties, becomes a party to the contractual arrangements. All loyalty programs and longterm advances received from regular way transactions are accounted for on settlement customers and concluded that these characteristics are not date. Regular way purchases or sales are purchases or exhibited in their contracts with their customers in light of sales of financial assets that require delivery of assets the nature of the group’s operations. within the period generally established by regulation or convention in the marketplace. (f) Currency translation The group’s financial statements are presented in USD. Policy applicable after 1 January 2018 Transactions and balances expressed in currencies other Financial assets are classified, at initial recognition, as than the USD are treated as follows: subsequently measured at amortized cost, fair value i) Non-USD grants and donations received in the through other comprehensive income (OCI), and fair year are converted to USD at the exchange rates value through profit or loss. The group has no financial prevailing on the dates of receipt. Non-USD grants instruments measured at fair value through OCI or fair and donations pledged for the year but not received value through profit or loss. by the year end are recognized in the financial statements at the exchange rates prevailing at the The classification of financial assets at initial recognition year end. depends on the financial asset’s contractual cash flow ii) Non-USD denominated expenditures are recorded at characteristics and the group’s business model for the exchange rates prevailing for the month in which managing them. With the exception of trade receivables they are incurred and are accumulated in USD. that do not contain a significant financing component or iii) Assets and liabilities denominated in currencies for which the group has applied the practical expedient, INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 29 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) the group initially measures a financial asset at its fair due from restricted grants that have been negotiated value plus, in the case of a financial asset not at fair value between the donor and a CGIAR centre. It also through profit or loss, transaction costs. Trade receivables pertains to claims from donors for expenses paid on that do not contain a significant financing component or behalf of projects in excess of cash received. for which the group has applied the practical expedient ii) Accounts receivable–partners are measured at the transaction price determined under These include advances made to other organizations IFRS 15. including CGIAR centres for carrying out research. The balance reflects balances not accounted for by In order for a financial asset to be classified and measured 31 December 2018. at amortized cost or fair value through OCI, it needs iii) Accounts receivable–other CGIAR centres to give rise to cash flows that are ‘solely payments of These include amounts not paid by CGIAR centres principal and interest (SPPI)’ on the principal amount for hosting services in ILRI’s two campuses in outstanding. This assessment is referred to as the SPPI test Ethiopia and Kenya. and is performed at an instrument level. iv) Accounts receivable–employees Accounts receivable from employees consist of The group’s business model for managing financial assets advances made to officers and employees for travel, refers to how it manages its financial assets in order to benefits, salary, loans, etc. generate cash flows. The business model determines v) Accounts receivable–others whether cash flows will result from collecting contractual Accounts receivable from others consist of advance cash flows, selling the financial assets, or both. payments to suppliers, consultants and other third Purchases or sales of financial assets that require delivery parties. of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are Financial assets at fair value through profit or loss recognized on the trade date, i.e., the date that the group The group has not designated any financial assets upon commits to purchase or sell the asset. initial recognition as at fair value through profit or loss. Subsequent measurement of financial assets Policy applicable after 1 January 2018 For purposes of subsequent measurement, all the group’s Policy applicable before 1 January 2018 financial assets are classified as financial assets at Subsequent to initial recognition, the group classifies amortized cost (debt instruments). financial assets as ‘at fair value through profit or loss’, ‘held-to-maturity investments’, ‘loans and receivables’, Financial assets at amortized cost (debt instruments) or ‘available-for-sale’. The group has no held-to-maturity, The group measures financial assets at amortized cost if available-for-sale investments and financial assets at fair both of the following conditions are met: value through profit or loss. i. the financial asset is held within a business model with the objective to hold financial assets in order to Loans and receivables collect contractual cash flows, and These include accounts receivable, cash and bank ii. the contractual terms of the financial asset give balances and balances due from related parties. These are rise on specified dates to cash flows that are solely non-derivative financial assets with fixed or determinable payments of principal and interest on the principal payments that are not quoted in an active market. They amount outstanding. are included in current assets, except for maturities greater than 12 months after the end of reporting period. Financial assets at amortized cost are subsequently Accounts receivable from donors, partners, other CGIAR measured using the effective interest (EIR) method and are centres, employees and other entities are carried at subject to impairment. Gains and losses are recognized anticipated realizable value. An allowance is made for in the statement of activities and other comprehensive doubtful receivables based on a review of all outstanding income when the asset is derecognized, modified or amounts at the year end. Bad debts are written off during impaired. the year in which they are identified as irrecoverable. The write-off of receivables is carried out after all efforts to The group’s financial assets at amortized cost includes collect have been exhausted. trade and other receivables, cash and bank balances and amounts due from related parties. i) Accounts receivable–donors Accounts receivable from donors consist of amounts 30 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Subsequent measurement of financial liabilities arrangement; and either (a) the group has transferred After initial measurement, financial liabilities are classified substantially all the risks and rewards of the asset, as financial liabilities at fair value through profit or loss, or (b) the group has neither transferred nor retained loans and borrowings, or account payables. The groups substantially all the risks and rewards of the assets, financial liabilities include trade and other payables, but has transferred control of the asset. and balances due to related parties. The group has not designated any financial liabilities as ‘at fair value through Financial liabilities profit or loss’ and does not have any loan or borrowing or A financial liability is derecognized when the obligation hold derivatives. under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another Trade and other payables from the same lender on substantially different terms, or This is the category most relevant to the group. After initial the terms of an existing liability are substantially modified, recognition, these financial liabilities are subsequently such an exchange or modification is treated as the measured at amortized cost using the effective interest derecognition of the original liability and the recognition rate (EIR) method. Gains and losses are recognized in the of a new liability. statement of activities and other comprehensive income when the liabilities are derecognized as well as through The difference in the respective carrying amounts is the EIR amortization process. Amortized cost is calculated recognized in profit or loss. by taking into account any discount or premium on acquisition and fees or costs that are an integral part of Offsetting the EIR. The EIR amortization is included as finance costs Financial assets and financial liabilities are offset and the in the statement of activities and other comprehensive net amount reported in the statement of financial position income. only when there is a currently enforceable legal right to offset the recognized amounts and there is an intention to Accounts payable represent amounts due to donors, settle on a net basis, or to realize the assets and settle the employees and others for support services and/or liability simultaneously. materials received prior to year-end but not paid for at the reporting date. Fair values The fair value of the financial assets and liabilities i) Accounts payable–donors approximate the carrying amounts shown in the Statement These include amounts payable to donors in respect of Financial Position due to short-term nature. of any unexpended funds received in advance for restricted grants. Impairment of financial assets ii) Accounts payable–partners Policy applicable before 1 January 2018 These include amounts partners have accounted for The group assesses, at each reporting date, whether there but whose payments or reimbursements have not is objective evidence that a financial asset or a group of been done by the reporting date. financial assets is impaired. An impairment exists if one or iii) Accounts payable–others more events that has occurred since the initial recognition These include all other liabilities ILRI has incurred of the asset (an incurred ‘loss event’), has an impact on and has been billed for, which remain unpaid as at the estimated future cash flows of the financial asset or the reporting date. group of financial assets that can be reliably estimated. Derecognition of financial instruments For loans and receivables carried at amortized cost, if there is objective evidence that an impairment loss Financial assets has been incurred, the amount of the loss is measured A financial asset (or, where applicable, a part of a as the difference between the assets’ carrying amount financial asset or part of a group of similar financial and the present value of estimated future cash flows. assets) is primarily derecognized when; Evidence of impairment may include indications that the • rights to receive cash flows from the asset have debtor or a group of debtors is experiencing significant expired; or financial difficulty, default or delinquency in interest or • the group has transferred its rights to receive cash capital payments and the probability that they will enter flows from the asset or has assumed an obligation bankruptcy. The carrying amount of the asset is reduced to pay the received cash flows in full without through the use of an allowance account and the amount material delay to a third party under a ‘pass-through’ of the loss is recognized in profit or loss. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 31 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) If, in a subsequent period, the amount of the impairment a loss allowance is required for credit losses expected loss for financial assets decreases and the decrease can over the remaining life of the exposure, irrespective of the be related objectively to an event occurring after the timing of the default (a lifetime ECL). impairment was recognized, the previously recognized impairment loss is reversed. Any subsequent reversal For trade receivables and contract assets, the group of an impairment loss is recognized in profit or loss, to applies a simplified approach in calculating ECLs. the extent that the carrying amount of the asset does not Therefore, the group does not track changes in credit risk, exceed the value that would have been its amortized cost but instead recognizes a loss allowance based on lifetime at the reversal date. ECLs at each reporting date. The group has established a provision matrix that is based on its historical credit loss Policy applicable after 1 January 2018 experience, adjusted for forward-looking factors specific The group recognizes an allowance for expected credit to the debtors and the economic environment. losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference The group considers a financial asset in default when between the contractual cash flows due in accordance contractual payments are 90 days past due. However, with the contract and all the cash flows that the group in certain cases, the group may also consider a expects to receive, discounted at an approximation of financial asset to be in default when internal or external the original effective interest rate. The expected cash information indicates that the group is unlikely to receive flows will include cash flows from the sale of collateral the outstanding contractual amounts in full before taking held or other credit enhancements that are integral to the into account any credit enhancements held by the group. contractual terms. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in Classification of financial instruments credit risk since initial recognition, ECLs are provided The table below sets out the group’s classification of each for credit losses that result from default events that are class of financial assets and liabilities. The amounts in the possible within the next 12 months (a 12-month ECL). table are the carrying amounts of the financial instruments For those credit exposures for which there has been a at the reporting date. significant increase in credit risk since initial recognition, Mandatorily Amortized cost measured at FVTPL Carrying amount At 31 December 2018 USD‘000 USD‘000 USD‘000 Financial assets Cash and bank balances 55,192 - 55,192 Accounts receivable 17,326 - 17,326 Total assets 72,518 - 72,518 Financial liabilities Accounts payable 46,216 - 46,216 Accruals 2,070 - 2,070 Total liabilities 48,286 - 48,286 32 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Fair value Other Held to Loans and through profit liabilities at Carrying maturity receivables or loss amortized cost amount At 31 December 2017 USD‘000 USD‘000 USD‘000 USD‘000 USD‘000 Financial assets Cash and bank balances - 57,701 - - 57,701 Accounts receivable - 18,980 - 18,980 Total assets - 76,681 - - 76,681 Financial liabilities Accounts payable - - - 44,827 44,827 Accruals - - - 6,062 6,062 Total liabilities - - - 50,889 50,889 (i) Property and equipment Gains and losses on disposal of property and equipment Property and equipment whose full cost exceeds are determined by reference to their carrying amount and USD3,000 and which ILRI has purchased using are accounted for in the Statement of Activities. unrestricted funds and can be used in the production or supply of goods or services or for administrative Depreciation is calculated on a straight-line basis at services for more than one year are capitalized and annual rates estimated to write off the cost of each item stated at acquisition cost less accumulated depreciation of property and equipment over the estimated term of its and accumulated impairment losses. Acquisition cost useful life. The annual rates used are as follows: includes the direct purchase price and incidental costs such as freight, insurance, installation and handling Farm works 5% charges. Subsequent material expenditure that extends Buildings and land improvements 3% (33 years) the useful life or enhances the operating efficiency of an Laboratory and scientific equipment 10–15% (7–10 item of property and equipment is capitalized. The cost of years) on an item normal repairs and maintenance of existing property and by item basis equipment is recognized as an operating expense in the ICT equipment 33.33% (3 years) statement of activities and other comprehensive income. Office and household furniture and 20% (5 years) equipment Any property and equipment acquired using restricted Farm equipment 10% (10 years) funds are expensed upon purchase as guided by IAS 20 Motor vehicles 20% (5 years) paragraph 20 & 21 on government grants. Depreciation of acquired assets starts in the month that Construction work in progress is capitalized as work-in- the assets are placed in operation and continues until progress but depreciation starts only when the work is the assets are fully depreciated or their use discontinued. complete and the facility is put into use. Depreciation charge is time-apportioned in the year of disposal of items of property and equipment. All immovable assets constructed or carried on leasehold land donated by host countries have been capitalized as Property and equipment acquired using project-restricted assets of the institute. ILRI has the right to negotiate for funds are fully depreciated when they are placed in extension of leases under the host country agreements operation under the specific benefiting projects. upon expiry of the current leases. In accordance with the host country agreements, in the event that the host An item of property, plant and equipment is derecognized country agreement is terminated or the host country does upon disposal or when no future economic benefits are not renew a lease upon expiry, all immovable assets expected from its use or disposal. Any gains and losses will be disposed of by CGIAR (in consultation with the on disposal of property and equipment are determined by governments of Ethiopia and Kenya). reference to their carrying amount and are accounted for in the Statement of Activities. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 33 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Operating lease rentals relating to lease land are In assessing value in use, the estimated future cash flows amortized over the term of lease. The residual values, are discounted to their present value using a pre-tax useful lives and methods of depreciation of property, plant discount rate that reflects current market assessments of and equipment are reviewed at each financial year end the time value of money and the risks specific to the asset. and adjusted prospectively, if appropriate. Impairment losses of continuing operations are (j) Intangible assets recognized in the statement of activities and other Intangible assets of the institute comprise acquired comprehensive income in those expense categories computer software. The cost of acquisition and installation consistent with the function of the impaired asset. of computer software is capitalized and amortized over the estimated useful life of the software, usually three Impairment losses recognized in prior periods are years. assessed at each reporting date for any indications that the loss has decreased or no longer exists. If such The useful lives of intangible assets are assessed as either indication exists, the group estimates the asset’s or CGU’s finite or indefinite. recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the Intangible assets with finite lives are amortized over their estimates used to determine the recoverable amount since useful economic lives, usually three years and assessed the last impairment loss was recognized. An impairment for impairment whenever there is an indication that the loss is reversed only to the extent that the asset’s carrying intangible asset may be impaired. The amortization period amount does not exceed the carrying amount that and the amortization method for an intangible asset would have been determined, net of depreciation or with a finite useful life are reviewed at least at the end amortization, if no impairment loss had been recognized. of each reporting period. Changes in the expected useful Such reversal is recognized in the statement of activities life or the expected pattern of consumption of future and other comprehensive income. economic benefits embodied in the asset are accounted for by changing the amortization period or method, as (l) Inventories appropriate, and are treated as changes in accounting Inventory is carried at the lower of cost and net realizable estimates. The amortization expense on intangible assets value. Cost is calculated on a weighted average basis and with finite lives is recognized in the statement of activities includes purchase price, freight and other incidental costs. in the expense category consistent with the function of the Net realizable value is the price at which the inventory intangible assets. can be realized in the normal course of business after allowing for the costs of the realization. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net The determination of obsolescence or expiration is based disposal proceeds and the carrying amount of the asset on the lower of the manufacturer’s recommendations and are recognized in the statement of activities when the and documented experience and knowledge of the asset is derecognized. management. The amount of write-down of inventories to net realizable value and all losses of inventories are (k) Impairment of non-financial assets recognized as an expense in the period the write-down or The group assesses at each reporting date whether there loss occurs. is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing (m) Biological assets for an asset is required, the group estimates the asset’s Biological assets comprise livestock. Livestock is stated recoverable amount. An asset’s recoverable amount is at fair value less point of sale costs. The fair value the higher of an asset’s or cash generating units (CGU’s) of livestock is determined based on market prices fair value less costs of disposal and its value in use. It is of livestock of similar age, breed and genetic merit. determined for an individual asset, unless the asset does Also, a minimum selling price is set for young stock to not generate cash inflows that are largely independent minimize depletion of future stock. Changes in fair value of those from other assets or groups of assets. Where are recognized in the statement of activities and other the carrying amount of an asset or CGU exceeds its comprehensive income. recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 34 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Employee benefits the extent that it relates to items recognized directly in i) Defined contribution plan equity or other comprehensive income, in which case it The institute’s contributions are maintained as a is recognized in equity or other comprehensive income. defined contribution plan for all categories of staff. Income tax assets and liabilities for the current period are Contributions to the defined contribution plan are measured at the amount expected to be recovered from, charged to the Statement of Activities as incurred. or paid to, the taxation authorities. ii) Short-term employee benefits Short-term employee benefits are expensed as the Current tax is the amount of income tax payable on the related service is provided. A liability is recognized taxable profit for the year determined in accordance with for amounts expected to be paid if the group has the relevant tax legislation. The current income tax charge present legal or constructive obligation to pay this is calculated on the basis of the tax rates and tax laws that amount as a result of past service provided by are enacted or substantively enacted at the reporting date. employees and obligation can be estimated reliably. iii) Termination benefits Deferred tax is provided using the liability method on Termination benefits are expensed at the end of the temporary differences between the tax bases of assets employee contracts when the group can no longer and liabilities and their carrying amounts for financial withdraw the offer of those benefits. reporting purposes at the reporting date. iv) Long-term benefits Full provision is made for severance benefits payable Deferred tax liabilities are recognized for all taxable to employees at the end of their contracts. Provisions temporary differences, except when the deferred tax are also made in respect of repatriation costs and liability arises from the initial recognition of goodwill or outstanding leave days accruing to all staff. an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects (n) Net assets neither the accounting profit nor taxable profit or loss. Net assets represent the residual interest in the institute’s assets remaining after liabilities have been deducted. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax (o) Accruals credits and unused tax losses, to the extent that it is Accruals represent liabilities to pay for goods or services probable that taxable profit will be available against that have been received or supplied but not yet invoiced which the deductible temporary differences and the carry or formally agreed with suppliers. forward of unused tax credits and unused tax losses can be utilized. (p) Provisions Provisions are recognized when the institute has (a) a The carrying amount of deferred tax assets is reviewed present legal or constructive obligation as a result of past at each reporting date and reduced to the extent that it is events, (b) it is more likely than not that an outflow of no longer probable that sufficient taxable profit will be resources will be required to settle the obligation and (c) available to allow all or part of the deferred tax asset to be a reliable estimate of the amount can be made. Provisions utilized. Unrecognized deferred tax assets are reassessed are measured at the present value of the management’s at each reporting date and are recognized to the extent best estimate of the expenditure required to settle the that it has become probable that future taxable profits will present obligation at the reporting date. allow the deferred tax asset to be recovered. (q) Tax Deferred tax assets and liabilities are measured at the tax ILRI: rates that are expected to apply in the year when the asset The governments of Kenya and Ethiopia have undertaken is realized or the liability is settled, based on tax rates (and to exempt ILRI from all local taxes including customs tax laws) that have been enacted or substantively enacted duty on goods and services received by the institute. at the reporting date. Consequently, the institute does not account for tax in its financial statements. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items Kapiti Plains Estate Limited: are recognized in correlation to the underlying transaction Current income tax either in other comprehensive income or directly in Income tax expense is recognized in the statement of equity. activities and other comprehensive income except to INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 35 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Deferred tax assets and deferred tax liabilities are offset follows, based on the lowest level input that is significant if a legally enforceable right exists to set off current to the fair value measurement as a whole: tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the Level 1 - Quoted (unadjusted) market prices in active same taxation authority. markets for identical assets or liabilities. (r) Determination of fair values Level 2 - Valuation techniques for which the lowest level Fair value is the price that would be received to sell an input that is significant to the fair value measurement is asset or paid to transfer a liability in an orderly transaction directly or indirectly observable. between market participants at the measurement date. The fair value measurement is based on the presumption Level 3 - Valuation techniques for which the lowest level that the transaction to sell the asset or transfer the liability input that is significant to the fair value measurement is takes place either: unobservable. • in the principal market for the asset or liability, or For assets and liabilities that are recognized in the financial statements at fair value on a recurring • in the absence of a principal market, in the most basis, the group determines whether transfers have advantageous market for the asset or liability. occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is The principal or the most advantageous market must be significant to the fair value measurement as a whole) at accessible by the group. the end of each reporting period. When available, the group measures the fair value of an For the purpose of fair value disclosures, the group has instrument using quoted prices in an active market for that determined classes of assets and liabilities on the basis of instrument. A market is regarded as active if quoted prices the nature, characteristics and risks of the asset or liability are readily and regularly available and represent actual and the level of the fair value hierarchy, as explained and regularly occurring market transactions on an arm’s- above. length basis. (s) New and amended standards If a market for a financial instrument is not active, then the The group applied IFRS 9 and IFRS 15 for the first group establishes fair value using a valuation technique. time. The nature and effect of the changes as a result The chosen valuation technique makes maximum use of adoption of these new accounting standards are of market inputs, relies as little as possible on estimates described below. In addition, several amendments specific to the group, incorporates all factors that market and interpretations listed below apply for the first time participants would consider in setting a price and is in 2018, but do not have an impact on the financial consistent with accepted economic methodologies for statements of the group. pricing financial instruments. • IFRIC Interpretation 22 Foreign Currency A fair value measurement of a non-financial asset takes Transactions and Advance Considerations into account a market participant’s ability to generate • Amendments to IAS 40 Transfers of Investment economic benefits by using the asset in its highest and Property best use or by selling it to another market participant that • Amendments to IFRS 2 Classification and would use the asset in its highest and best use. Measurement of Share-based Payment Transactions • Amendments to IFRS 4 Applying IFRS 9 Financial The group uses valuation techniques that are appropriate Instruments with IFRS 4 Insurance Contracts in the circumstances and for which sufficient data are • Amendments to IAS 28 Investments in Associates available to measure fair value, maximizing the use of and Joint Ventures – Clarification that measuring relevant observable inputs and minimizing the use of investees at fair value through profit or loss is an unobservable inputs. investment-by-investment choice • Amendments to IFRS 1 First-time Adoption of All assets and liabilities for which fair value is measured International Financial Reporting Standards – or disclosed in the financial statements are categorized Deletion of short-term exemptions for first-time within the fair value hierarchy. This is described, as adopters 36 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) IFRS 9 Financial Instruments receivables, either on a 12-month or lifetime basis. In July 2014, the IASB issued the final version of IFRS The group will apply the simplified approach and 9 Financial Instruments that replaces IAS 39 Financial record lifetime expected losses on all trade and other Instruments: recognition and measurement and all receivables. The group has determined that, due to previous versions of IFRS 9. IFRS 9 brings together all the insignificant value of its account receivables, the three aspects of the accounting for financial instruments loss allowance increase will be insignificant. project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual The group recognizes an allowance for expected periods beginning on or after 1 January 2018, with early credit losses (ECLs) for all debt instruments not held application permitted. Except for hedge accounting, at fair value through profit or loss. ECLs are based on retrospective application is required but providing the difference between the contractual cash flows comparative information is not compulsory. due in accordance with the contract and all the cash flows that the group expects to receive, discounted The group has adopted the new standard as per required at an approximation of the original effective interest effective date prospectively. Overall, there has been no rate. significant impact on the groups statement of financial position and equity except for the effect of applying the For trade receivables and contract assets, the group impairment requirements of IFRS 9. applies a simplified approach in calculating ECLs. Therefore, the group does not track changes in credit i) Classification and measurement risk, but instead recognizes a loss allowance based Under IFRS 9, debt instruments are subsequently on lifetime ECLs at each reporting date. The group measured at fair value through profit or loss, has established a provision matrix that is based on amortized cost, or fair value through other its historical credit loss experience, adjusted for comprehensive income(OCI). The classification is forward-looking factors specific to the debtors and based on two criteria: the group’s business model for the economic environment. managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments IFRS 15 Revenue from Contracts with Customers of principal and interest’ on the principal amount IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 outstanding. Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts The assessment of the group’s business model was with customers. IFRS 15 establishes a five-step model to made as of the date of initial application, 1 January account for revenue arising from contracts with customers 2018. The assessment of whether contractual cash and requires that revenue be recognized at an amount flows on debt instruments are solely comprised of that reflects the consideration to which an entity expects principal and interest was made based on the facts to be entitled in exchange for transferring goods or and circumstances as at the initial recognition of the services to a customer. assets. IFRS 15 requires entities to exercise judgement, The classification and measurement requirements of taking into consideration all of the relevant facts and IFRS 9 did not have a significant impact to the group. circumstances when applying each step of the model to The group did not have any financial instruments contracts with their customers. The standard also specifies measured at fair value under IAS 39. the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a Trade receivables and other non-current financial contract. In addition, the standard requires extensive assets (i.e. bank balances and other financial disclosures. assets) classified as loans and receivables as at 31 December 2017 are held to collect contractual The group adopted IFRS 15, however there was no effect cash flows and give rise to cash flows representing on its financial statements. Refer to Note 2 (e). solely payments of principal and interest. These The cumulative effect of initially applying IFRS 15 are classified and measured as debt instruments at is recognized at the date of initial application as an amortized cost beginning 1 January 2018. adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated ii) Impairment and continues to be reported under IAS 11, IAS 18 and IFRS 9 requires an entity to record expected credit related Interpretations. losses on all of its debt securities, loans and trade INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 37 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) The adoption of IFRS 15 did not have any impact on Involving the Legal Form of a Lease. IFRS 16 sets out the the revenue, liabilities, expenses, other comprehensive principles for the recognition, measurement, presentation income (OCI) or the group’s operating, investing and and disclosure of leases and requires lessees to account financing cash flows. for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS Standards issued but not yet effective 17. The standard includes two recognition exemptions The standards and interpretations that are issued, but not for lessees – leases of ‘low-value’ assets (e.g. personal yet effective, up to the date of issuance of the group’s computers) and short-term leases (i.e. a lease term of 12 financial statements are disclosed below. The group months or less). At the commencement date of a lease, a intends to adopt these standards, if applicable, when they lessee will recognize a liability to make lease payments become effective. (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the Effective for annual periods beginning on or after 1 right-of-use asset). Lessees will be required to separately January 2019. recognize the interest expense on the lease liability and • IFRS 16 Leases the depreciation expense on the right-of-use asset. • IFRIC Interpretation 23 Uncertainty over Income Tax Treatments Lessees will be also required to remeasure the lease • Prepayment Features with Negative Compensation – liability upon the occurrence of certain events (e.g. Amendments to IFRS 9 a change in the lease term, a change in future lease • Long-term Interests in Associates and Joint Ventures – payments resulting from a change in an index or rate used Amendments to IAS 28 to determine those payments). The lessee will generally • Plan Amendment, Curtailment or Settlement – recognize the amount of the remeasurement of the lease Amendments to IAS 19 liability as an adjustment to the right-of-use asset. • AIP IFRS 3 Business Combinations – Previously held Interests in a Joint Operation Lease accounting under IFRS 16 is substantially • AIP IFRS 11 Joint Arrangements – Previously held unchanged from today’s accounting under IAS 17. Interests in a Joint Operation Lessors will continue to classify all leases using the same • AIP IAS 12 Income Taxes – Income tax consequences classification principle as in IAS 17 and distinguish of payments on financial instruments classified as between two types of leases: operating and finance leases. equity IFRS 16 also requires lessees and lessors to make more • AIP IAS 23 Borrowing Costs – Borrowing Costs extensive disclosures than under IAS 17. Eligible for Capitalization IFRS 16 is effective for annual periods beginning on or Effective for annual periods beginning on or after 1 after 1 January 2019. Early application is permitted, but January 2020 not before an entity applies IFRS 15. A lessee can choose • Definition of a Business – Amendments to IFRS 3 to apply the standard using either a full retrospective or a • Definition of Material – Amendments to IAS 1 and modified retrospective approach. The standard’s transition IAS 8 provisions permit certain reliefs. This standard does not • The Conceptual Framework for Financial Reporting have a significant impact on the Consolidated Financial Statements. Effective for annual periods beginning on or after 1 January 2022. 3. FINANCIAL RISK MANAGEMENT OBJECTIVES • IFRS 17 Insurance Contracts AND POLICIES Deferred effective date Managing financial risk is one aspect of the risk • Amendments to IFRS 10 and IAS 28: Sale or management practice of ILRI, which considers all its Contribution of Assets between an Investor and its operations. The institute’s activities expose it to a variety of Associate or Joint Venture financial risks, including market risks, (foreign currency risk, interest risk, funding risks, and inflation risk) and IFRS 16 Leases credit risk. IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases, IFRIC 4 Determining Whether an Arrangement Risk management is carried out by the management of Contains a Lease, SIC-15 Operating Leases – Incentives the institute supported by the Internal Audit Unit under and SIC-27 Evaluating the Substance of Transactions policies approved by the Board of Trustees. A key element 38 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) of the institute’s risk management program is minimizing Shilling, British Pound and the Euro. potential adverse effects on its financial performance. The finance function identifies, evaluates and hedges financial Foreign exchange risk arises from future transactions and risks. The various categories of risks are described below; recognized assets and liabilities. Investment decisions are also guided by the foreseeable conditions of foreign i) Market risk exchange markets and a conservative investment policy. a. Foreign currency risk Foreign currency risk is the risk that the fair value or future The following table demonstrates the sensitivity to a cash flows of a financial instrument will fluctuate because reasonably possible change in the Kenya Shilling (KES), of changes in foreign exchange rates. Ethiopian Birr (ETB), Euro and British Pound (GBP) exchange rate, with all other variables held constant, of The organization is exposed to foreign exchange risk the group’s profit before tax and the group’s surplus. The arising from various currency exposures, primarily with group’s exposure to foreign currency changes for all other respect to the Kenya Shilling, Ethiopian Birr, Uganda currencies is not material. Currency Increase/decrease Effect on surplus/deficit Effect on surplus/deficit in exchange rate pre-tax/equity pre-tax/equity 2018 USD’000 2017 ’USD’000 KES 5% 68 67 -5% (68) (67) ETB 5% 17 21 -5% (17) (21) GBP 5% 30 51 -5% (30) (51) EUR 5% 55 60 -5% (55) (60) b. Interest rate risk ii) Credit risk Interest rate risk is the risk that the fair value or future Credit risk is the risk that a counterparty will cause a cash flows of a financial instrument will fluctuate because financial loss to the institute by failing to discharge of changes in market interest rates. Interest rate risk to a contractual obligation. This risk is managed in the the group is the risk of changes in market interest rates following four ways: reducing the overall return or increasing the cost of (i) avoiding contracts with donors on a reimbursable finance to the group. All the institute’s interest bearing basis; financial instruments are measured at amortized cost and (ii) minimizing advances to suppliers; have a fixed interest rate hence there is no interest rate (iii) strict management of employee advances; and risk. (iv) stringent due diligence processes for bank selection and regular tenders for local banks and other c. Funding risk suppliers. ILRI manages funding risk through financial planning systems, a conservative investment policy and its resource The amount that best represents the group’s maximum mobilization strategy. exposure to credit risk related to receivables at 31 December 2018 is made up of donor receivables, partner d. Inflation risk receivables, employee receivables, hosted institute Inflation risk is managed through conservative budgeting receivables and other receivables as shown in the tables and a conservative investment policy. below. Donor receivables Description 2018 2017 USD’000 USD’000 Receivables < 6 months 3,336 4,987 Receivables > 6 months <= 12 months 3,305 2,789 Receivables > 12 months <= 24 months 1,654 1,596 Receivables over 24 months 449 817 Impaired (700) (1,049) Total 8,044 9,140 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 39 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Partner receivables Description 2018 2017 USD’000 USD’000 Receivables < 6 months 3,292 2,151 Receivables > 6 months <= 12 months 1,003 849 Receivables > 12 months <= 24 months 631 1,024 Receivables over 24 months 418 647 Impaired ( 511) (785) Total 2,962 3,886 Employee receivables Description 2018 2017 USD’000 USD’000 Receivables < 6 months 455 474 Receivables > 6 months <= 12 months 2 18 Receivables > 12 months <= 24 months 157 121 Receivables over 24 months - 28 Impaired (32) (32) Total 582 609 Hosted institutes receivables Description 2018 2017 USD’000 USD’000 Receivables < 6 months 3,570 3,652 Receivables > 6 months <= 12 months 824 57 Receivables > 12 months <= 24 months - 267 Receivables over 24 months - (0) Total 4,394 3,976 Other receivables Description 2018 2017 USD’000 USD’000 Receivables < 6 months 699 341 Receivables > 6 months <= 12 months - 589 Receivables > 12 months <= 24 months 525 284 Receivables over 24 months 118 156 Total 1,342 1,370 40 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) To determine the debtors that should be impaired, the management team pursues debtors that have been outstanding for 90 days. They gather information on debtor’s ability for debts repayment and intentions towards debt settlement. Based on the information obtained, the receivables are impaired as per policy. Set out below is the information about the credit risk exposure on the group’s trade receivables on donors and partners using a provision matrix. Donor receivables Days past due At 31 December 2018 Current 7-12 months 13-24 months over 24 months Total USD’000 USD’000 USD’000 USD’000 USD’000 Expected credit loss rate 0% 3% 10% 100% Gross amount 3,746 2,900 1,649 449 8,744 Expected credit loss - (87) (164) (449) (700) Donor receivables Days past due At 31 December 2017 Current 7-12 months 13-24 months over 24 months Total USD’000 USD’000 USD’000 USD’000 USD’000 Expected credit loss rate 0% 3% 10% 100% Gross amount 5,377 2,400 1,595 817 10,189 Expected credit loss - (72) (160) (817) (1,049) Partner receivables Days past due At 31 December 2018 Current 7-12 months 13-24 months over 24 months Total USD’000 USD’000 USD’000 USD’000 USD’000 Expected credit loss rate 0% 3% 10% 100% Gross amount 1,420 1,003 631 418 3,473 Expected credit loss - (30) (63) (418) (511) Days past due At 31 December 2017 Current 7-12 months 13-24 months over 24 months Total USD’000 USD’000 USD’000 USD’000 USD’000 Expected credit loss rate 0% 3% 10% 100% Gross amount 1,830 1,171 1,023 647 4,671 Expected credit loss - (35) (102) (647) (785) Credit risk from balances with banks and financial institutions is managed by the group’s treasury department in accordance with the group’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the group’s Board of Trustees on an annual basis, and may be updated throughout the year subject to approval of the investment committee. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make payments. The group invests only on short-term fixed and call deposits hence is not exposed to credit risk. The amount that best represents the group’s maximum exposure to credit risk related to other financial asset is indicated below. INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 41 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Credit risk analysis–other financial assets Description 2018 2017 USD’000 USD’000 Certificates of deposits 46,537 47,011 Current bank balances 8,540 10,549 Total 55,077 57,560 v) Liquidity risk Effective cash flow and working capital management is carried out to ensure that there is a balance between operational and investment requirements. Eighty per cent (80%) of cash in bank is investment in short-term deposits and 20% is kept on call deposits for funding day-to-day cash requirements. ILRI maintains a conservative investment strategy with investments limited to fixed-term deposits and short-term call deposits with a limited number of quality banks. To mitigate against political risk, our deposits are spread across several banks and in different countries mainly United States of America, European Union, Kenya and Ethiopia. The table below analyses the institute’s financial liabilities that will be settled on a net basis into relevant maturity groupings based on the remaining period at reporting date to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant. Partner receivables Financial institution Currency Amount Investment Maturity Investment ’000 date date period–days CBA bank USD 12,500 17-Dec-18 17-Jun-19 182 Credit Suisse AG USD 3,500 3-Oct-18 3-Apr-19 182 NIC bank USD 13,000 18-Nov-18 18-May-19 181 Credit Suisse AG USD 2,000 29-Nov-18 29-May-19 181 Stanbic bank USD 7,811 11-Sep-18 10-Mar-19 180 Citibank USD 4,000 24-Dec-18 14-Jan-19 21 Citibank USD 3,000 24-Dec-18 7-Jan-19 14 Stanbic bank KES 726 1-Dec-18 open - Total 46,537 Certificates of deposits–2017 Financial institution Currency Amount Investment Maturity Investment ’000 date date period–days CBA bank USD 8,500 3-Aug-17 5-Feb-18 186 CBA bank USD 4,000 15-Dec-17 15-Jun-18 182 NIC bank USD 15,000 17-Nov-17 17-May-18 181 Stanbic bank USD 6,545 18-Sep-17 5-Mar-18 168 Citibank USD 10,000 15-Dec-17 16-Jan-18 32 Citibank USD 2,000 15-Dec-17 5-Jan-18 21 NIC bank KES 966 20-Dec-17 open - Total 47,011 42 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Current account bank balances Description 2018 2017 USD’000 USD’000 Bank balances in USD 5,416 7,940 Bank balances in EUR 635 1,254 Bank balances in GBP 436 280 Bank balances in others 2,053 1,075 Total 8,540 10,549 The bulk of the donor payables amounting to USD29.6 million represent funds received in advance to be spent within the next year. The table below summarizes the maturity profile of the group’s financial assets and liabilities based on contractual undiscounted receipts and payments. All liabilities are due on demand. Description 2018 2017 USD’000 USD’000 Accounts receivable 17,326 18,980 Bank balances and deposits 55,192 57,701 Total financial assets 72,518 76,681 Accounts payable 46,216 44,828 Accruals 2,070 6,062 Total financial liabilities 48,286 50,890 Liquidity gap 24,232 25,650 4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY At each reporting date, the institute reviews the SOURCES OF ESTIMATION UNCERTAINTY carrying amount of its assets to determine whether there is any indication that these assets have suffered In the process of applying the institute’s and its an impairment loss. If any such indication exists, subsidiary’s accounting policies, management has the recoverable amount of the asset is estimated in made estimates and assumptions that affect the reported order to determine the extent of impairment. Refer to amounts of assets and liabilities within current and future Notes 9 and 10. financial years. Estimates and judgements are continually evaluated and are based on historical experience and Property and equipment other factors including expectations of future events that Critical estimates are made in determining the are believed to be reasonable under the circumstances. useful lives and residual values to property and equipment based on the intended use of the assets The critical areas of accounting estimates and judgements and the economic lives of those assets. Subsequent in relation to the preparation of these financial statements changes in circumstances or prospective utilization are as set out below: of the assets concerned could result in the actual useful lives or residual values differing from initial i. Critical judgements in applying accounting policies estimates. Refer to Note 10 for the carrying amount. There are no critical judgments, apart from those involving estimations (see below) that management Although management believes the estimates has made in the process of applying the institute’s and assumptions used in the preparation of these accounting policies and that have significant consolidated financial statements were appropriate effect on the amounts recognized in the financial in the circumstances, actual results could differ from statements. those estimates and assumptions. ii. Key sources of estimation uncertainty Impairment of non-financial assets INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 43 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 5. INVESTMENT IN SUBSIDIARY – KAPITI statements of Kapiti Plains Estate Limited are prepared This represents the cost of investment in Kapiti Plains in Kenya Shillings. Although the subsidiary has been Estate Limited (Kapiti), a ranch that was acquired for making losses, tax returns are filed annually. The loss purposes of securing adequate supplies of disease-free for the year ending 31 December 2018 amounted to livestock to the institute for research. Kapiti is a wholly USD489k (2017: USD384k). At the end of 31 December owned subsidiary of ILRI and operates as an experimental 2018, the subsidiary had a receivable balance of USD3m farm. (2017:2.2m) in ILRI’s books. The Consolidated Statement of Activities includes the subsidiary’s results for the year as The subsidiary’s net assets at 31 December 2018 summarized on Note 19-22. amounted to USD526k, (2017: USD42k). The financial 6. CASH AND CASH EQUIVALENTS Description 2018 2017 USD’000 USD’000 Certificates of deposits 46,537 47,011 Bank balances 8,540 10,549 Cash in hand and cash in transit 115 141 Total 55,192 57,701 A farmer harvesting fodder in East Africa (photo credit: eadairy). 44 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 7. ACCOUNTS RECEIVABLES Description 2018 2017 USD’000 USD’000 Donors Restricted W3 1,465 1,715 Restricted bilateral 6,629 7,689 Window 1& 2 650 785 Subtotal donors 8,744 10,189 Less: Provision for doubtful debts (700) (1,049) Total 8,044 9,140 Partners National Agricultural Research Stations 1,019 2,231 Universities 426 913 International non-governmental organizations 1,289 754 CGIAR centres 739 773 subtotal partners 3,473 4,671 Less: Provision for doubtful debts (511) (785) Total 2,962 3,886 Hosted CGIAR centres Center for International Forestry Research (CIFOR) 33 116 International Maize and Wheat Improvement Center (CIMMYT) 116 506 International Rice Research Institute (IRRI) 64 9 International Center for Agricultural Research in the Dry Areas (ICARDA) 130 115 World Agroforestry Centre (ICRAF) 137 176 International Center for Tropical Agriculture (CIAT) 105 19 International Institute of Tropical Agriculture (IITA) - 238 International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) 207 82 International Water Management Institute (IWMI) 122 91 Bioversity International (IPGRI) 44 128 International Food Policy Research Institute (IFPRI) 370 344 International Potato Center (CIP) 61 121 Subtotal CGIAR centres 1,389 1,945 Hosted non-CGIAR centres 2,768 1,965 University and research organizations 237 66 Total 4,395 3,976 Employees Loans 25 33 Staff advances 589 608 Subtotal employees 614 641 Less: Provision for doubtful debts (32) (32) Total 582 609 Other account receivables 1,343 1,369 Net total accounts receivables 17,326 18,980 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 45 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) The provisions for doubtful debts developed as follows: Movement on doubtful debts for donors Description 2018 2017 USD’000 USD’000 At the beginning of the year (1,049) (1,372) Arising during the year (733) (712) Write-offs 1,082 1,035 Unused amounts reversed - - Total (700) (1,049) Movement on doubtful debts for partners Description 2018 2017 USD’000 USD’000 At the beginning of the year (785) (596) Arising during the year (163) (523) Write-offs 437 334 Unused amounts reversed - - Total (511) (785) 8. PREPAID EXPENSES Description 2018 2017 USD’000 USD’000 Prepaid expenses* 2,901 2,611 Total 2,901 2,611 *Prepaid expenses relate to commercial supplies and consumables for different departments. 9. INVENTORIES Description 2018 2017 USD’000 USD’000 Engineering and maintenance parts 66 64 Laboratory and chemical supplies 265 344 Fuel and lubricants 13 51 Stationery/office supplies 68 81 Other supplies 93 96 Subtotal 505 636 Less: Provision as at 1 January and 31 December (25) (25) Total 480 611 46 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 10. PROPERTY PLANT, EQUIPMENT AND INTANGIBLE ASSETS–2018 Description Balance as at Additions Balance as at 1 Jan 2018 Unrestricted Restricted Disposals 31 Dec 2018 USD’000 USD’000 USD’000 USD’000 USD’000 Physical facilities, infrastructure 37,843 3,864 1 (3) 41,705 and leasehold improvements Furnishings and equipment 34,117 1,441 1,402 (1,851) 35,109 Intangible assets (software) 392 - - (34) 357 Work in progress** 3,668 (3,160) - - 508 Total cost of fixed assets 76,020 2,145 1,403 (1,888) 77,681 ACCUMULATED DEPRECIATION Physical facilities, infrastructure 32,804 418 1 (136) 33,087 and leasehold improvements Furnishings and equipment 30,514 921 1,402 (1,855) 30,983 Intangible assets (software) 364 10 - (35) 339 Work in progress - - - - - Total accumulated depreciation 63,682 1,349 1,403 (2,026) 64,410 NET CARRYING AMOUNT Physical facilities, infrastructure and 5,039 3,446 - 133 8,618 leasehold improvements Furnishings and equipment 3,603 520 - 3 4,126 Intangible assets (software) 28 (10) - - 18 Work in progress 3,668 (3,160) - - 508 Other movements - 136 - (136) - Exchange translation (18) (3) - - (21) Total net carrying amount 12,320 930 - - 13,249 ** The balance at the beginning of year 2018 for work in progress (USD3,668) comprised projects such as residential housing project, milking plant, Swing 1 and 2 and Lab 3 renovations which were initiated in 2017. These projects were finalized and capitalized in 2018. The balance of USD508k at the end of 2018 is made up of ongoing capital projects such as residential houses in Addis, water treatment project and renovation of the Vercoe auditorium. Accumulated depreciation USD 64.4m Net carrying Cost amount USD 77.7m USD 13.2m INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 47 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Property plant, equipment and intangible assets–2017 Description Balance as at Additions Balance as at 1 Jan 2017 Unrestricted Restricted Disposals 31 Dec 2017 USD’000 USD’000 USD’000 USD’000 USD’000 Physical facilities, infrastructure 36,928 915 - - 37,843 and leasehold improvements Furnishings and equipment 33,336 1,125 525 (869) 34,117 Intangible assets (software) 362 30 - - 392 Work in progress 2,434 1,234 (0) - 3,668 Total cost of fixed assets 73,060 3,304 525 (869) 76,020 ACCUMULATED DEPRECIATION Physical facilities, infrastructure and 32,294 510 - - 32,804 leasehold improvements Furnishings and equipment 29,675 1,098 525 (784) 30,514 Intangible assets (software) 362 2 - - 364 Work in progress - - - - - Total accumulated depreciation 62,331 1,610 525 (784) 63,682 NET CARRYING AMOUNT Physical facilities, infrastructure and 4,634 405 - - 5,039 leasehold improvements Furnishings and equipment 3,662 26 - (85) 3,603 Intangible assets (software) (0) 28 - - 28 Work in progress 2,434 1,234 (0) - 3,668 Exchange translation (16) (2) - - (18) Total net carrying amount 10,714 1,691 (0) (85) 12,320 Accumulated depreciation USD63.7m Net carrying Cost amount USD76.0m USD12.3m 48 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) Expensed restricted project assets 2018 Description Cost as at Additions Disposals during Balance as at 1 Jan 2018 during the year the year 31 Dec 2018 USD’000 USD’000 USD’000 USD’000 Physical facilities, infrastructure and 46 1 - 47 leasehold improvements Furnishings and equipment 4,119 1,402 (125) 5,396 Work in progress 4 - - 4 Total 4,169 1,403 (125) 5,447 Expensed restricted project assets 2017 Description Cost as at Additions Disposals during Balance as at 1 Jan 2018 during the year the year 31 Dec 2018 USD’000 USD’000 USD’000 USD’000 Physical facilities, infrastructure and 46 - - 46 leasehold improvements Furnishings and equipment 3,637 525 (44) 4,119 Work in progress 4 - - 4 Total 3,687 525 (44) 4,169 Property and equipment, which have been written-off to the statement of activities and other comprehensive income in the year of purchase are shown in the financial statements at nominal value. If these assets had not been written-off in the year of purchase, the carrying amount as at 31 December 2018 (where depreciation is calculated to eliminate the cost of the assets over their estimated useful lives at the rate indicated) would have been as follows. Description Depreciation Carrying amount % year 2018 USD’000 Physical facilities, infrastructure and leasehold improvements 3 41 Furnishings and equipment 10-15 3,292 Work in progress 0 - Total 3,333 As at 31 December 2018, property and equipment with the below costs were fully depreciated but still in use. Description 2018 2017 USD’000 USD’000 Land and buildings 28,636 21,600 Motor vehicles 2,039 2,782 Total 30,675 24,382 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 49 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 11. BIOLOGICAL ASSETS Description 2018 2017 USD’000 USD’000 Fair value at the beginning of the year 1,552 1,547 Exchange difference 15 (28) Increases due to purchases 17 - Fair value adjustment attributed to births 263 259 Fair value adjustment attributable to price changes 81 (26) Fair value adjustment attributed to growth 207 59 Fair value adjustment attributed to sales (203) (203) Fair value adjustment attributed to death and other decrements (87) (56) Fair value at the end of the year 1,845 1,552 The biological assets relate to livestock held at Kapiti Plains Estate Limited, which continues to breed and keep livestock, primarily to support the research needs of ILRI, which is the principal shareholder, and sells surplus livestock to third parties. All the biological assets described above are categorized as consumable biological assets since they are held for research and/or sale rather than to bear produce. All the biological assets are mature biological assets. There are no biological assets whose title is restricted or pledged as security. Additionally, there are no commitments for development or acquisition of biological assets. To manage financial risks, the group has in place policies to ensure that credit is only extended in limited instances and in those instances it is only extended to customers with an established credit history. There are no non-financial measures or estimates of the physical quantities of the group’s biological assets at the end of the period. Significant assumptions made in the estimate of fair values. • The expected market price of livestock will remain constant based on the average price for the last one year. • The market price for each animal can be reliably determined. Fair value hierarchy The fair value of livestock of 2018, USD1.85 million (2017–USD1.55 million), has been categorized as level 2 fair values based on inputs to the valuation technique used. Type Valuation Significant Interrelationship technique unobservable between unobservable inputs inputs and fair values Livestock comprise of Market comparison technique, fair values are Not applicable Not applicable cattle, goats and sheep based on market prices of livestock of similar age, weight and market values 50 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 12. ACCOUNTS PAYABLES Description 2018 2017 USD’000 USD’000 Donors Unrestricted W3 - 41 Restricted W3 16,008 19,283 Restricted bilateral 5,005 5,735 Window 1 and 2 8,570 8,448 Subtotal donors 29,584 33,507 Partners National Agricultural Research Stations 360 443 Universities 97 141 International non-governmental organizations 201 51 CGIAR centres 2,986 1,381 Total 3,644 2,016 Hosted CGIAR centres International Centre for agricultural Research in the Dry Areas (ICARDA) - 135 International Institute of Tropical Agriculture (IITA) 130 197 International Food Policy Research Institute (IFPRI) 0 763 International Water Management Institute (IWMI) 35 90 International Centre for Tropical Agriculture (CIAT) - 50 International Rice Research Institute (IRRI) - 14 International Maize and Wheat Improvement Center (CIMMYT) 100 317 International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) 30 373 Bioversity International (IPGRI) 474 141 International Potato Center (CIP) 223 832 Center for International Forestry Research (CIFOR) 25 78 CGIAR System Ooffice - - World Agroforestry Center (WAC) 218 102 Subtotal CGIAR centres 1,235 3,092 Hosted non-CGIAR centres 3,524 1,289 Total 4,759 4,381 Employees Accrued leave 1,472 1,508 Travel expenses and other payables 438 823 Total 1,910 2,331 Trade creditors 3,578 1,373 CGIAR cost sharing percentage 577 665 University and research organizations 1,102 836 Other account payables 2,973 2,049 Total 20,332 15,255 Total accounts payable 48,126 47,158 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 51 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 13. PROVISIONS Description 2018 2017 USD’000 USD’000 At the beginning of the year 589 260 Arising during the year 403 841 Utilized (120) (252) Unused amounts reversed (589) (260) Total 283 589 Movement on general provisions is computed as a percentage (2.5%) of donor and partner receivables excluding CRPs. Exclusion of CRP balances is based on the understanding that they are funded from the CGIAR Fund and possibility of default is minimal. 14. ACCRUALS Description 2018 2017 USD’000 USD’000 Consultants’ costs 10 176 Commercial suppliers 1,660 3,865 Project expenses 323 1,992 Other accruals 77 29 Total 2,070 6,062 15. EMPLOYEE LONG-TERM PAYABLE Severance pay Repatriation costs Total Description USD’000 USD’000 USD’000 As at January 2018 3,148 2,403 5,551 Arising during the year 587 110 697 Utilized (272) (213) (485) AS AT 31 DECEMBER 2018 3,463 2,300 5,763 Severance pay Repatriation costs Total Description USD’000 USD’000 USD’000 As at January 2017 2,908 2,312 5,220 Arising during the year 691 248 939 Utilized (451) (158) (609) AS AT 31 DECEMBER 2017 3,148 2,402 5,550 52 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 16. RELATED PARTY TRANSACTIONS The group’s related parties include its fully owned subsidiary, key management personnel and their related parties. Compensation paid to key management personnel comprises the members of Board of Trustees and members of the Institute Management Committee who have authority and responsibility for planning, oversight directing and controlling the activities of the group. Unless otherwise stated, none of the transactions with related parties incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash. The following transactions have been entered into between the group and related parties for the relevant financial year: Description 2018 2017 USD’000 USD’000 Kapiti Plains Estate Limited Sales - - Purchases 40 28 Key management personnel compensation Salaries and other short-term employment benefits 2,069 2,115 Post-employment benefits 254 236 Honorarium 84 52 Total 2,407 2,403 The table below shows outstanding balances from the related parties. Description 2018 2017 USD’000 USD’000 Kapiti Plains Estate Limited Receivable balance 3,007 2,278 Key management personnel compensation Receivable /(payable) balance (6) 2 Total 3,001 2,280 17. GRANT REVENUE Description 2018 2017 USD’000 USD’000 Window 1 and Window 2 (grant schedules) 20,761 15,050 Window 3 (grant schedules) 28,053 29,436 Bilateral (grant schedules) 18,097 17,723 Total 66,911 62,209 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 53 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 18. OTHER REVENUE AND GAINS Description 2018 2017 USD’000 USD’000 Revenue from contracts with customers 7,906 - Housing and conferencing - 2,393 Research support income - 1,118 Gain/loss on disposal of stock and equipment 103 48 Office hosting and service income - 2,879 Total 8,009 6,438 REVENUE FROM CONTRACTS WITH CUSTOMERS Description 2018 2017 USD’000 USD’000 Housing and conferencing 4,130 - Research support income 729 - Office hosting and service income 3,047 - Total 7,906 - 19. SALES OF LIVESTOCK Description 2018 2017 USD’000 USD’000 Cattle 171 183 Sheep 31 20 *Others 48 49 Total 250 252 *This relates to sickly and/or young cattle or sheep. 20. COST OF SALES Description 2018 2017 USD’000 USD’000 Labour wages and rations 8 6 Veterinary expenses 50 101 Total 58 107 54 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 21. FAIR VALUE (LOSS) GAIN ON LIVESTOCK Description 2018 2017 USD’000 USD’000 Gain attributed to births 264 259 Gain /(loss) attributable to price changes 81 (26) Gain attributed to growth 207 59 Decrease attributed to sales (203) (203) Loss attributed to death and other decrements (87) (56) Fair value (loss) gain on biological assets 262 33 22. KAPITI PLAINS ESTATE EXPENSES Description 2018 2017 USD’000 USD’000 Personnel expenses 334 306 Supplies and services 597 191 Depreciation 45 29 Travel 10 38 Total 986 564 23. RESEARCH EXPENSES Description 2018 2017 USD’000 USD’000 Unrestricted expenses 2,597 3,478 Restricted portfolio 37,279 31,013 Restricted non-portfolio 7,946 9,796 Total 47,822 44,287 24. COLLABORATOR EXPENSES Description 2018 2017 USD’000 USD’000 CGIAR collaborator expenses 7,119 7,218 Non-CGIAR collaborator expenses 7,687 7,046 Total 14,806 14,264 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 55 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 25. GENERAL AND ADMINISTRATION EXPENSES Description 2018 2017 USD’000 USD’000 Personnel costs 4,046 3,529 Supplies and services 4,022 3,981 Operational travel 600 346 Depreciation and amortization 17 3 Cost sharing percentage 916 848 Total 9,601 8,707 26. OTHER EXPENSES AND LOSSES Description 2018 2017 USD’000 USD’000 Engineering and facilities costs 2,570 1,766 Business unit costs 104 499 Research facility units costs 1,677 2,621 Total 4,351 4,886 27. FINANCIAL INCOME AND EXPENSES Description 2018 2017 USD’000 USD’000 Interest income 1,509 1,560 Foreign exchange gain 818 1,344 Total financial income 2,327 2,904 Financial expenses Foreign exchange losses 791 552 Total financial expenses 791 552 56 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Notes to the consolidated financial statements (cont’d) 28. EXPENSES BY FUNCTION Description 2018 2017 Unrestricted Restricted Totals Unrestricted Restricted Totals Portfolio Non- Portfolio Non- USD Portfolio Non- Portfolio Non- USD USD portfolio USD portfolio ’000 USD portfolio USD portfolio ’000 ’000 USD’000 ’000 USD ’000 USD’000 000 USD’000 ’000 Personnel - 10,237 17,208 3,600 31,045 8,583 15,735 6,082 30,400 CGIAR - - 7,120 (1) 7,119 6,979 239 7,218 collaborators Non-CGIAR - 426 6,650 611 7,687 6,532 514 7,046 collaborators Supplies and 34 4,286 15,907 3,688 23,915 3,859 12,230 5,826 21,915 services Operational travel - 795 2,711 433 3,939 625 2,159 379 3,163 Depreciation - 1,349 1,295 108 2,752 1,610 314 211 2,135 Cost sharing 28 61 712 115 916 631 217 848 percentage Indirect costs 553 (7,305) 5,578 1,174 - (7,638) 6,144 1,494 - Total 614 9,849 57,181 9,728 77,372 - 7,010 50,724 14,962 72,696 29. PERSONNEL COSTS Description 2018 2017 USD’000 USD’000 Salaries and allowances 23,962 23,262 Contributions to defined contribution plan 2,706 2,698 Medical and life insurance 1,989 1,954 Relocation and leave expenses 1,110 1,415 Other personnel costs 1,278 1,071 Total 31,045 30,400 30. COMPUTATION OF INDIRECT COST RATE Description 2018 2017 USD’000 USD’000 General and administration expenses 9,601 8,707 Research expenses (excluding all collaborator expenses) 47,822 44,287 Non-CGIAR collaborator expenses 7,687 7,046 Total cost excluding CGIAR collaborator expenses 55,509 51,333 ILRI indirect cost rate 17% 17% INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 57 2018 F I N A N C I A L S T A T E M E N T S 2018 F I N A N C I A L S T A T E M E N T S A woman milks a cow in Nyandarua, Kenya (photo credit: eadiary). 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Revenue code pledge funds receivable Accounts Current Prior available payable year year CGI001 CGIAR System Office 170 105 - 15 91 64 CGI002 CGIAR System Office 108 39 11 - 49 61 CG1200 International Institute of Tropical Agriculture (IITA) 8,655 57 - 57 - - CG3700 CGIAR System Office 66,010 3,108 - 3,108 - - CG4000 International Food Policy Research Institute (IFPRI) - 3 - 3 - - CG7000 International Center for Tropical Agriculture (CIAT) 33,594 35 - 35 - - CRP001 CGIAR System Office 28,052 18,480 - 4,624 13,856 9,705 CRP002 International Center for Tropical Agriculture (CIAT) 3,490 1,671 193 - 1,864 1,543 CRP003 International Food Policy Research Institute (IFPRI) 5,822 3,583 - 619 2,964 2,131 CRP004 International Food Policy Research Institute (IFPRI) 809 146 213 - 359 382 CRP005 International Center for Tropical Agriculture (CIAT) 315 273 15 - 288 30 CRP008 Global Crop Diversity Trust 2,052 771 218 - 989 1,045 GEN002 Global Crop Diversity Trust 756 411 - 109 301 89 A: RESTRICTED CRPs–WINDOW 1 and 2 149,833 28,682 650 8,570 20,761 15,0510 ACI020 Australian Centre for International Agricultural 2,066 - 2 2 - - 242 Research (ACIAR) ACI021 Australian Centre for International Agricultural 4,123 198 - 198 - 359 Research (ACIAR) ACI027 Australian Centre for International Agricultural 1,568 256 - 24 232 4 Research (ACIAR) AUT005 Austrian Development Agency 641 43 - 44 (2) 86 AUT006 Austrian Development Agency 560 288 - 171 117 54 BMG012 Bill & Melinda Gates Foundation (BMGF) 12,000 1,853 20 - 1,873 1,988 BMG013 Bill & Melinda Gates Foundation (BMGF) 11,000 3,969 - 2,088 1,881 2,771 BMG018 Bill & Melinda Gates Foundation (BMGF) 9,130 6,287 - 4,162 2,124 1,643 BMG019 Bill & Melinda Gates Foundation (BMGF) 588 369 - 207 162 121 BMG021 Bill & Melinda Gates Foundation (BMGF) 4,088 1,659 - 1,086 573 701 BMG022 Bill & Melinda Gates Foundation (BMGF) 714 658 24 - 682 39 BMG023 Bill & Melinda Gates Foundation (BMGF) 3,541 1,064 - 1,044 20 - CHN001 China 940 306 - 131 175 81 ICA005 Indian Council of Agricultural Research (ICAR) 1,380 919 - 153 767 513 IFA023 International Fund for Agricultural Development (IFAD) 942 71 - 0 71 133 IFA024 International Fund for Agricultural Development (IFAD) 1,400 (6) - 0 (6) 665 IFA026 International Fund for Agricultural Development (IFAD) 2,000 864 - 195 669 586 IFA027 International Fund for Agricultural Development (IFAD) 3,761 (507) 1,419 - 913 967 MEX001 Government of Mexico 294 217 - 217 - 1 USA071 United States Agency for International Development 10,016 0 - 0 - - (USAID) USA072 United States Agency for International Development 4,381 4 - 4 - - (USAID) USA075 United States Agency for International Development 323 155 - 155 - 44 (USAID) USA080 United States Agency for International Development 1,000 101 - 87 13 449 (USAID) 60 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year USA081 United States Agency for International Development 27,637 10,061 - 1,141 8,920 9,449 (USAID) USA083 United States Agency for International Development 6,500 2,274 - 695 1,579 1,367 (USAID) USA085 United States Agency for International Development 9,630 2,274 - 913 1,361 1,096 (USAID) USA087 United States Agency for International Development 599 523 - 114 409 77 (USAID) B: RESTRICTED CRPs –WINDOW 3 120,823 33,898 1,465 12,829 22,533 23,436 BMG010 Bill & Melinda Gates Foundation (BMGF) 300 4 - 4 - - BMG014 Bill & Melinda Gates Foundation (BMGF) 12,850 5,691 - 2,234 3,458 3,955 BMG015 Bill & Melinda Gates Foundation (BMGF) 9,750 1,947 - 303 1,644 1,301 BMG017 Bill & Melinda Gates Foundation (BMGF) 1,440 52 - 43 9 73 BMG020 Bill & Melinda Gates Foundation (BMGF) 687 651 - 392 259 392 GSA001 Republic of South Africa 236 125 - 67 58 61 PRP001 Portugal 438 162 - 112 51 13 USA077 United States Agency for International Development 500 0 - 0 - 78 (USAID) USA086 United States Agency for International Development 1,074 68 - 27 41 126 (USAID) C: RESTRICTED OTHER –WINDOW 3 27,275 8,700 - 3,182 5,520 5,999 ACI016 Australian Centre for International Agricultural 141 - - - - Research (ACIAR) ACI026 Australian Centre for International Agricultural 55 - - - - 56 Research (ACIAR) ARS001 Assam Rural Infrastructure and Agricultural Services 1,428 128 - 58 71 - (ARIAS) Society of the Government of Assam AUI001 African Union Inter-African Bureau for African 279 0 - 0 - - Resources AUI002 African Union-Interafrican Bureau for African 908 (73) 111 - 37 114 Resources CAB003 GSMA Mobile for Development Foundation 1,187 - - - - 222 channelled through CAB International UK CAR001 CARE International 290 - 174 - 174 - CIA006 International Center for Tropical Agriculture (CIAT) 78 - - - - 24 CIA007 International Center for Tropical Agriculture (CIAT) 488 57 47 - 104 298 CIA008 International Center for Tropical Agriculture (CIAT) 336 104 - 28 76 186 CIA009 International Center for Tropical Agriculture (CIAT) 96 0 - 0 - 40 CIA010 International Center for Tropical Agriculture (CIAT) 156 - - - - 154 CIA011 International Center for Tropical Agriculture (CIAT) 101 (2) - 0 (2) 104 CIA012 International Center for Tropical Agriculture (CIAT) 209 63 - 38 26 - CIA014 International Center for Tropical Agriculture (CIAT) 420 84 65 - 149 - CIA015 International Center for Tropical Agriculture (CIAT) 66 30 35 - 65 - INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 61 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year CIL002 The Permanent Interstate Committee for Drought 60 - 54 - 54 - Control in the Sahel CIM005 International Maize and Wheat Improvement Center 4,532 293 - 40 253 702 (CIMMYT) CIM006 International Maize and Wheat Improvement Center 100 6 - 6 - - (CIMMYT) CIM008 International Maize and Wheat Improvement Center 703 201 89 - 290 139 (CIMMYT) CIM010 International Maize and Wheat Improvement Center 80 1 - 1 - 36 (CIMMYT) CRD001 US Civilian Research and Development 28 0 - 0 - 27 Foundation (CRDF) CSI006 Commonwealth Scientific and Industrial Research 300 145 - 35 111 55 Organisation (CSIRO) CTA001 Technical Centre for Agricultural and Rural 385 49 16 - 65 92 Cooperation (CTA) EMU002 Emory University 86 32 10 - 42 25 EUR015 European Community (EC) 132 0 - 0 - - EUR016 European Community (EC) 118 46 19 - 65 26 EUR017 European Community (EC) 300 16 28 - 44 75 EUR019 European Community (EC) 183 151 - 48 103 2 FAN001 The Food, Agriculture and Natural Resources Policy 399 139 - 3 136 152 Analysis Network FAO048 Food and Agriculture Organization of the United 62 (8) 30 - 22 - Nations (FAO) FAO049 Food and Agriculture Organization of the United 170 (57) 57 - - 207 Nations (FAO) FAO052 Food and Agriculture Organization of the United 95 54 42 - 96 - Nations (FAO) FAO053 Food and Agriculture Organization of the United 22 6 10 - 17 - Nations (FAO) FAO054 Food and Agriculture Organization of the United 28 - 23 - 23 - Nations (FAO) FCD001 Frontier Counties Development Council 13 14 - - 14 - FIN004 Ministry of Foreign Affairs Finland 161 1 - 1 - - FIN005 Ministry of Foreign Affairs Finland 146 79 4 - 82 57 FIN006 Ministry of Foreign Affairs Finland 147 116 3 - 119 27 GAN001 Global Alliance for Improved Nutrition (GAIN) 55 45 - 23 22 - GAV002 Global Alliance for Livestock Veterinary Medicines 300 74 - 48 26 103 (GALVmed) GAV003 Global Alliance for Livestock Veterinary Medicines 463 25 - - 25 252 (GALVmed) GAV005 Global Alliance for Livestock Veterinary Medicines 100 16 - 0 16 84 (GALVmed) 62 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year GAV006 Global Alliance for Livestock Veterinary Medicines 30 11 10 - 21 19 (GALVmed) GAV007 Global Alliance for Livestock Veterinary Medicines 1,065 405 - 364 41 - (GALVmed) GAV008 Global Alliance for Livestock Veterinary Medicines 152 61 - 34 27 - (GALVmed) GEF007 United Nations-UNEP-GEF/UNOPS/UNEP-Depi 1,983 14 - 11 3 - GIZ003 Deutsche Gesellschaft für Internationale 1,614 48 - 48 - - Zusammenarbeit (GIZ) GIZ005 Deutsche Gesellschaft für Internationale 1,555 58 - 58 - - Zusammenarbeit (GIZ) GIZ008 Deutsche Gesellschaft für Internationale 300 49 - 49 - - Zusammenarbeit (GIZ) GIZ009 Deutsche Gesellschaft für Internationale 1,655 62 - 54 8 441 Zusammenarbeit (GIZ) GIZ011 Deutsche Gesellschaft für Internationale 90 1 - 1 - 5 Zusammenarbeit (GIZ) GIZ012 Deutsche Gesellschaft für Internationale 1,347 270 10 - 280 251 Zusammenarbeit (GIZ) GIZ014 Deutsche Gesellschaft für Internationale 850 (19) 19 - - 275 Zusammenarbeit (GIZ) GIZ015 Deutsche Gesellschaft für Internationale 112 24 0 - 24 75 Zusammenarbeit (GIZ) GIZ016 Deutsche Gesellschaft für Internationale 296 10 - 10 - - Zusammenarbeit (GIZ) GIZ017 Deutsche Gesellschaft für Internationale 611 10 299 - 310 299 Zusammenarbeit (GIZ) GIZ018 Deutsche Gesellschaft für Internationale 183 5 89 - 94 90 Zusammenarbeit (GIZ) GIZ019 Deutsche Gesellschaft für Internationale 120 58 - 44 14 - Zusammenarbeit (GIZ) GIZ020 Deutsche Gesellschaft für Internationale 7,221 748 - 510 238 - Zusammenarbeit (GIZ) GIZ021 Deutsche Gesellschaft für Internationale 397 183 - 183 - - Zusammenarbeit (GIZ) HEI005 Heifer International Project 1,536 216 12 - 228 269 ICA004 International Center for Agricultural Research in 351 44 0 - 44 156 the Dry Areas (ICARDA) ICR008 World Agroforesty Centre (ICRAF) 717 320 40 - 359 194 ICS017 International Crop Research Institute for the 200 - - - - 42 Semi-Arid Tropics (ICRISAT)/ Government of Karnataka ICS022 International Crop Research Institute for the 126 - - - - 53 Semi-Arid Tropics (ICRISAT) ICS023 International Crop Research Institute for the 821 100 47 - 147 64 Semi-Arid Tropics (ICRISAT) INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 63 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year ICS024 International Crop Research Institute for the 219 121 - 52 69 77 Semi-Arid Tropics (ICRISAT) ICS026 International Crop Research Institute for the 51 25 - 12 13 - Semi-Arid Tropics (ICRISAT) IDA001 Integrated Development Authority of the 270 24 14 - 37 165 Liptako-Gourma Region (ALG) IDR018 International Development Research Centre (IDRC) 496 295 - 74 221 64 IDR019 International Development Research Centre (IDRC) 629 390 - 81 310 2 IFA025 International Fund for Agricultural Development (IFAD) 60 11 - 11 - - IFP035 International Food Policy Research Institute (IFPRI) 110 - - - - 10 IFP036 International Food Policy Research Institute (IFPRI) 18 (9) 9 - - - IFP037 International Food Policy Research Institute (IFPRI) 80 11 1 - 12 66 IFP038 International Food Policy Research Institute (IFPRI) 2,500 226 228 - 454 474 IIE003 International Initiative for Impact Evaluation 75 4 - 4 - 75 IIE004 International Initiative for Impact Evaluation 430 86 - 44 41 - IIT020 International Institute of Tropical Agriculture (IITA) 282 19 - 19 - - IIT021 International Institute of Tropical Agriculture (IITA) 374 0 - 0 - 3 IIT024 International Institute of Tropical Agriculture (IITA) 150 2 - 2 - - IIT025 International Institute of Tropical Agriculture (IITA) 120 14 - 14 - - IIT026 International Institute of Tropical Agriculture (IITA) 167 0 - 0 - 0 IIT027 International Institute of Tropical Agriculture (IITA) 365 122 - 31 91 30 IIT028 International Institute of Tropical Agriculture (IITA) 162 46 6 - 52 128 IIT029 International Institute of Tropical Agriculture (IITA) 38 2 - 2 - 36 IIT030 International Institute of Tropical Agriculture (IITA) 237 60 44 - 104 2 IIT031 International Institute of Tropical Agriculture (IITA) 280 75 2 - 76 28 ILC002 International Land Coalition 915 603 68 - 671 387 IRE005 Ireland Embassy 836 96 - 96 - 41 IRE006 Ireland Embassy 2,050 61 - 61 - 202 IWM015 International Water Management Institute (IWMI) 980 (51) 51 - - 80 IWM017 International Water Management Institute (IWMI) 699 0 - 0 - - JCV002 National Science Foundation (NSF) 111 0 - 0 - - 1 KFT001 Kifiya Financial Technology 200 (169) 169 - - 36 KMT001 Kenya Markets Trust 40 - - - - 37 KOR009 Rural Development Administration–Korea 480 5 - 5 - - KOR017 Rural Development Administration–Korea 120 3 - 3 - 0 KOR018 Rural Development Administration–Korea 120 0 - 0 - - KOR019 Rural Development Administration–Korea 350 130 - 61 69 73 KOR020 Rural Development Administration–Korea 50 48 - 22 26 2 LOL001 Land O’Lakes International Development Fund 159 25 26 - 51 34 LTG001 Global Crop Diversity Trust 974 48 332 - 380 158 LUN002 Lund University 232 286 - 74 213 13 MCK002 The McKnight Foundation 75 40 - 30 10 - NFN001 Niji Foods Nigeria Limited 36 (5) 0 - (4) 13 NWO001 Netherlands Organisation for Scientific Research 13 11 - 4 7 - ODI002 Overseas Development Institute (ODI) 1,140 98 236 - 333 96 64 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year OFI001 OPEC Fund for International Development (OFID)–Austria 150 - 0 0 - - 127 PAT001 PATH 11 8 - 8 - 3 PHF001 Public Health Foundation of India 355 201 1 - 201 111 RCI002 Resource Conflict Institute 75 (38) 38 - - 19 RCI003 Resource Conflict Institute 47 37 2 - 39 - RTI001 Research Triangle Institute 1,288 77 165 - 243 - RUC002 The Regents of the University of California 107 34 19 - 52 29 RUC003 The Regents of the University of California 1,162 307 572 - 879 223 SAG001 Livestock and Fisheries Department, Government of Sindh 1,295 217 206 - 423 68 SEI001 Stockholm Environment Institute 180 40 23 - 63 33 SIR001 STAR-IDAZ International Research Consortium 10 (0) 0 - - 11 on Animal Health SOA001 SOAS University of London 101 - 31 - 31 - SRT004 Navajbai Ratan Tata Trust (NRTT) 218 7 17 - 24 5 SRT005 Navajbai Ratan Tata Trust (NRTT) 249 4 7 - 11 11 SRT006 Navajbai Ratan Tata Trust (NRTT) 174 25 - 0 25 10 TEN003 Terra Nuova 436 100 41 - 142 182 TEX012 Texas A&M AgriLife Research 1,087 125 39 - 164 305 TEX013 Texas A&M AgriLife Research 111 7 15 - 22 21 TNS001 TechnoServe 36 12 - 0 12 24 UCN001 University of Copenhagen 43 0 - 0 0 - UNE002 University of New England 488 2 - 2 - - UOE003 University of Edinburgh 453 (13) 13 - - 0 UOE006 University of Edinburgh 8,127 654 761 - 1,415 785 UOE007 University of Edinburgh 170 116 - 86 31 52 UOF001 University of Florida 1,528 130 188 - 319 140 UOF002 University of Florida 1,105 133 107 - 240 92 UOF003 University of Florida 125 41 51 - 91 6 UOF004 University of Florida 775 73 47 - 119 17 UOF005 University of Florida 150 - 13 - 13 - UOF007 University of Florida 52 - 6 - 6 - UOL001 Biotechnology and Biological Sciences Research 1,524 599 - 116 483 339 Council (BBSRC) UOL002 University of Liverpool 1,484 126 48 - 174 - UON001 University of Nottingham 29 1 - 1 - 31 UON002 University of Nottingham 335 171 - 85 86 - UOX001 University of Oxford 450 139 23 - 162 - UPP001 Uppsala University 262 20 22 - 42 - USA073 United States Agency for International 1,124 - - - - 243 Development (USAID) WAN002 Wageningen University 2,392 501 - 76 425 499 WAN004 Wageningen University 49 24 - 6 18 1 WAN005 Wageningen University 76 - 74 - 74 - WAS001 West African Science Service Center on Climate 137 39 - 39 - - Change and Adapted Land Use INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 65 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year WBA030 World Bank 200 0 - 0 - - WBA034 World Bank 7 - - - - 7 WBA036 World Bank 36 36 - 1 35 - WBA037 World Bank 20 2 19 - 21 - WEL013 Wellcome Trust 27 1 - 1 - - WFP001 World Food Programme 173 37 - 0 37 136 WFP002 World Food Programme 170 170 1 - 171 - WRI002 World Resources Institute (WRI) 21 - - - - 21 WSU001 Washington State University 250 73 34 - 108 9 WVM001 World Vision International–Myanmar (WVM) 32 21 - 6 15 - WYG001 WYG International Limited 244 52 20 - 73 73 D: RESTRICTED CRPs–BILATERAL 84,578 11,577 5,131 2,822 13,887 11,457 ACD001 ACDI/VOCA 335 - 7 - 7 - ASA021 Association for Strength ening Agricultural Research 200 0 - 0 - - in Eastern and Central Africa (ASARECA) BBS004 Biotechnology and Biological Sciences Research 468 17 - 17 - - Council (BBSRC) BBS005 University of Cambridge 349 118 47 - 165 51 BEC001 Various donors 1,644 1,163 - 838 325 584 BEC002 Various donors 824 11 - 10 1 9 CID006 Canadian International Development Agency (CIDA) 19,324 346 615 - 269 1,155 COM001 Common Market for Eastern and Southern 20 0 - 0 - 21 Africa (COMESA) CRS001 Catholic Relief Services–United States Conference 120 43 6 - 49 57 of Catholic Bishops (CRS) CSI005 Commonwealth Scientific and Industrial 2,255 6 - 6 - 503 Research Organisation (CSIRO) DRE001 The Federal Democratic Republic of Ethiopia, 351 - - - - 332 Ministry of Federal and Pastoral Development Affairs, Pastoral Community Development Project DRE002 The Federal Democratic Republic of Ethiopia, 386 0 - 0 - 386 Ministry of Federal and Pastoral Development Affairs, Pastoral Community Development Project DTR001 Defense Threat Reduction Agency/J4C 1,246 723 - 417 307 160 EMU003 Emory University 68 3 6 - 3 55 EUR018 European Community (EC) 776 321 - 153 168 80 FAO050 Food and Agriculture Organization of the 137 - - - - 136 United Nations (FAO) FAO051 Food and Agriculture Organization of the 33 1 7 - 6 27 United Nations (FAO) GAV004 Global Alliance for Livestock Veterinary Medicines 58 2 2 - - 48 (GALVMED) GUL001 Gulu University 100 41 - 0 41 33 IAE001 International Atomic Energy Agency (IAEA) 51 10 - 10 - - ICR006 World Agroforestry Center (WAC) 464 27 2 - 29 109 66 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit I Grant revenues and accounts receivable/payable FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Donor Grant Total Accounts Rev e nue code pledge funds receivable Accounts Current Prior available payable year year ICR007 World Agroforestry Center (WAC) 301 44 0 - 44 87 ICS025 International Crop Research Institute for the Semi-Arid 120 90 - 8 82 - Tropics (ICRISAT) IDR017 International Development Research Centre (IDRC) 30 - - - - 1 IFP027 International Food Policy Research Institute (IFPRI) 2,362 (129) 129 - - 62 IFP029 International Food Policy Research Institute (IFPRI) 450 115 62 - 177 153 IFP039 International Food Policy Research Institute (IFPRI) 30 18 12 - 30 - IFP040 International Food Policy Research Institute (IFPRI) 26 - - - - 26 IFP041 International Food Policy Research Institute (IFPRI) 31 - 28 - 28 - IIT032 International Institute of Tropical Agriculture (IITA) 2,674 332 7 - 339 - IIT033 International Institute of Tropical Agriculture (IITA) 31 - 21 - 21 - IWM016 International Water Management Institute (IWMI) 136 - - - - 6 KAR002 Kenya Agricultural & Livestock Research 177 0 - - 0 30 Organization (KALRO) KSU001 Kansas State University 998 372 - 33 338 310 LUN001 Lund University 11 - - - - 12 MLF001 Ministry of Livestock and Fisheries (MoL&F)–Ethiopia 316 267 - 2 265 49 MLF002 Ministry of Livestock and Fisheries (MoL&F)–Ethiopia 177 124 53 - 177 - MON001 Monash University 20 (0) 13 - 13 0 NMA001 The Nelson Mandela African Institution of Science and Technology (NM-AIST) 246 102 - 38 64 78 SID003 Swedish International Development Cooperation Agency (SIDA) 5,556 (1) 1 - - 576 SID006 Swedish International Development Cooperation Agency (SIDA) 5,494 1,241 - 628 614 236 SNV002 SNV-Netherland Development Organisation 2,073 90 37 - 127 79 SRT003 Navajbai Ratan Tata Trust (NRTT) 998 (71) 71 - - - UOE004 University of Exeter 249 1 - 1 - 91 WBA032 World Bank 1,280 173 337 - 510 563 WBA033 World Bank 12 0 - 0 - 12 WBA035 World Bank 225 (35) 35 - - 245 WEL015 Wellcome Trust 433 37 - 24 13 0 E: RESTRICTED OTHER–BILATERAL 53,661 4,897 1,497 2,184 4,211 6,266 Totals 436,172 87,751 8,743 29,584 66,911 62,209 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 67 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses A: RESTRICTED CRPs–WINDOW 1 and 2 CGI001 CGIAR gender postdoctoral fellow–social Livestock 01/01/2016 01/12/2018 170 65 90 155 CGI002 CGIAR gender postdoctoral fellowship Livestock 01/01/2016 31/12/2018 108 69 49 119 CRP001 CGIAR Research Program on Livestock Agri-Food Livestock 01/01/2017 31/12/2022 28,052 9,705 13,856 19,723 Systems CRP002 CGIAR Research Program on Climate Change CCAFS 01/01/2017 31/12/2022 3,490 1,543 1,864 3,407 Agriculture and Food Security (CCAFS) CRP003 CGIAR Research Program on Agriculture for A4NH 01/01/2017 31/12/2022 5,822 2,132 2,964 5,094 Nutrition and Health (A4NH) CRP004 CGIAR Research Program on Policies, Institutions PIM 01/01/2017 31/12/2022 809 382 359 741 and Markets (PIM) CRP005 CGIAR Platform for Big Data in Agriculture Big Data 01/01/2017 31/12/2022 315 30 288 319 CRP008 CGIAR Platform on Genebanks Genebanks 01/01/2017 31/12/2022 2,052 1,045 989 2,034 GEN002 Genebank support–2011 funds Genebanks 01/01/2011 31/12/2018 756 385 301 686 SUBTOTAL A 41,574 15,356 20,761 32,278 B: RESTRICTED CRPs–WINDOW 3 Australian Centre for International Agricultural Research (ACIAR) ACI027 Safe Pork–Market Based Approaches to Improving A4NH 16/10/2017 15/10/2022 1,568 4 232 236 the Safety of Pork in Vietnam ACIAR subtotal 1,568 4 232 236 Austrian Development Agency AUT005 Increasing the Productivity of Dual-purpose Cattle Livestock 01/07/2013 28/02/2019 641 564 - 2 562 in Nicaragua AUT006 Sustainable intensification of the Pig Value Chain in Uganda for Improved Rural Livelihoods and Livestock 01/07/2017 31/07/2020 560 54 117 171 Food security ADA subtotal 1,201 618 115 733 Bill & Melinda Gates Foundation (BMGF) BMG012 Improved Vaccines for the Control of East Coast Livestock 01/09/2013 30/11/2018 12,000 10,164 1,872 12,037 Fever in Cattle in Africa BMG013 African Chicken Genetic Gains Program (ACGG) Livestock 05/11/2014 31/10/2019 11,000 6,112 1,881 7,993 BMG018 Platform for African Dairy Genetic Gains (ADGG) Livestock 26/10/2015 31/10/2019 9,130 2,785 2,124 4,909 BMG019 A Novel Intervention to Protect Cattle against Livestock 04/03/2016 31/03/2019 588 212 162 375 East Coast Fever through Pre-infection with a Related Species BMG021 MoreMilk: Making the Most of Milk A4NH 08/11/2016 30/09/2021 4,088 706 573 1,280 BMG022 Technical Assistance for Development of the Bihar Livestock 26/11/2017 30/11/2018 714 39 681 721 Livestock Master Plan (Bihar LMP) BMG023 Urban Food Markets in Africa–incentivizing A4NH 22/10/2018 31/10/2022 3,541 - 20 food safety BMGF subtotal 41,062 20,019 7,315 27,314 China CHN001 Support to Han Jianlin activities in China Livestock 17/05/2004 31/12/2019 940 472 175 647 China subtotal 940 472 175 647 68 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Indian Council of Agricultural Research (ICAR) ICA005 ILRI-ICAR funds A4NH 01/01/2016 31/12/2018 1,380 532 766 1,298 ICAR subtotal 1,380 532 766 1,298 International Fund for Agricultural Development (IFAD) IFA023 Innovative Beef Value Chain Development Livestock 01/02/2013 31/07/2018 942 866 71 937 Schemes in Southern Africa IFA024 Improved Productivity through Crop/livestock Livestock 16/02/2015 16/02/2018 1,400 1,387 - 6 1,381 Intervention in Burundi and the Eastern Democratic Republic of Congo IFA026 Greening Livestock: Incentive-based CCAFS 31/03/2016 31/03/2019 2,000 652 669 1,321 Interventions for Reducing the Climate Impact of Livestock in East Africa IFA027 Improved Productivity through Crop/livestock Livestock 24/06/2016 31/01/2020 3,761 1,010 912 1,923 Interventions in Eastern DR Congo and Burundi under Program Putting Research into Use for Nutrition, Sustainable Agriculture and Resilience (PRUNSAR) IFAD subtotal 8,103 3,915 1,647 5,562 United States Agency for International Development (USAID) USA080 Scaling up the Delivery of ITM in Tanzania Livestock 08/07/2015 31/12/2018 1,000 884 13 898 through Facilitation of ITM Delivery Value Chain USA081 FtF AVCD Program management office Livestock 01/10/2015 31/12/2020 27,637 17,149 8,920 26,069 USA083 Feed the Future Mali Livestock Technology Scaling Livestock 01/01/2016 31/12/2019 6,500 2,675 1,579 4,254 Program (FTF-MLTS) USA085 Africa RISING Ethiopia Livestock 10/01/2016 30/09/2021 9,630 1,457 1,361 2,818 USA087 Developing Optimum Vaccination Strategies for A4NH 01/02/2017 01/02/2019 599 77 409 486 Rift Valley Fever (RVF) USAID subtotal 45,367 22,242 12,282 34,525 SUBTOTAL B 99,621 47,802 22,533 70,315 C: RESTRICTED OTHER–WINDOW 3 Bill & Melinda Gates Foundation (BMGF) BMG014 PEARL: Program support to BecA Non-portfolio 07/11/2014 31/12/2018 12,850 7,678 3,458 11,136 BMG015 IGSS: Integrated Genotyping Service and Support Non-portfolio 07/11/2014 31/12/2019 9,750 4,836 1,644 6,480 BMG017 Livestock Development Planning Support to Non-portfolio 27/10/2015 30/06/2018 1,440 1,373 9 1,381 Tanzania: Tanzania Livestock Master Plan (LMP) BMG020 Global Livestock Advocacy for Development Non-portfolio 18/08/2016 31/10/2019 687 429 259 688 (GLAD) BMGF subtotal 24,727 14,316 5,369 19,685 Republic of South Africa GSA001 South Africa funds for SA region Non-portfolio 02/01/2015 31/12/2018 236 178 58 236 RSA subtotal 236 178 58 236 Portugal PRP001 Portugal funds Non-portfolio 01/01/2009 31/12/2019 438 327 51 378 Portugal subtotal 438 327 51 378 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 69 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses United States Agency for International Development (USAID) USA086 Africa RISING–Program-level Communication Non-portfolio 01/10/2016 30/09/2021 1,074 136 41 177 USAID subtotal 1,074 136 41 177 SUBTOTAL C 26,476 14,957 5,520 20,476 D: RESTRICTED CRPs–BILATERAL Assam Rural Infrastructure and Agricultural Services (ARIAS) Society of the Government of Assam ARS001 Assam Agribusiness and Rural Transformation A4NH 16/03/2018 15/03/2023 1,428 - 71 71 Project (APART) ARIASs 1,428 - 71 71 African Union-Interafrican Bureau for African Resources (AU-IBAR) AUI002 Strengthening the Capacity of African Countries to Livestock 22/07/2015 31/03/2018 908 324 37 362 Conservation and Sustainable Utilization of African Animal Genetic Resources AU-IBAR subtotal 908 324 37 362 CARE International CAR001 Implementation of Harande Program in Mali PIM 01/12/2017 31/12/2018 290 - 174 174 CARE subtotal 290 - 174 174 International Center for Tropical Agriculture (CIAT) CIA007 Climate Services for Africa CCAFS 01/10/2015 31/01/2019 488 360 104 464 CIA008 Climate Services for Agriculture: Empowering CCAFS 01/01/2016 30/09/2019 336 195 76 271 Farmers to Manage Risk and Adapt to a Changing Climate in Rwanda CIA011 Gap funding Forage Selection and Breeding Livestock 01/01/2017 31/12/2017 101 104 - 2 101 Activities Feeds and Forage Flagship Livestock CRP CIA012 Improved Forage Grasses: Making the Case for Their Livestock 01/05/2018 28/02/2021 209 - 26 26 integration into Humid-to Sub-humid livestock production systems in Kenya and Ethiopia CIA014 Climate-smart Dairy Systems in East Africa Livestock 01/11/2017 01/04/2021 420 - 149 149 through Improved Forage and Feeding Strategies: Enhancing productivity and adaptive capacity while mitigating greenhouse gas emissions. CIA015 Adaptation to Climate Change in Agricultural Livestock 01/11/2017 31/03/2019 66 - 65 65 Development in Africa CIAT subtotal 1,621 659 418 1,076 The Permanent Interstate Committee for Drought Control in the Sahel CIL002 Comparative Analysis of the Options ‘Export of Livestock 01/05/2018 31/12/2018 60 - 54 54 Livestock’ versus ‘Export of Refrigerated Carcasses’ from Sahelian Countries to the Coastal Countries of West Africa CIL subtotal 60 - 54 54 International Maize and Wheat Improvement Center (CIMMYT) CIM005 Agricultural Innovation Program Livestock 01/03/2013 31/03/2019 4,532 4,239 253 4,492 CIM008 SIMLESA 2 Dr code-CSE/2009/024 Livestock 01/07/2014 30/05/2019 703 305 290 595 CIMMYT subtotal 5,235 4,544 542 5,087 70 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Commonwealth Scientific and Industrial Research Organisation (CSIRO) CSI006 Supporting Evidence-Based Interventions to Livestock 01/07/2017 31/03/2020 300 55 111 165 Achieve Agricultural Development (SEBI) Live GAPS2 Project CSIRO subtotal 300 55 111 165 Technical Centre for Agricultural and Rural Cooperation (CTA) CTA001 Resilience in Livestock Value Chains in Eastern Livestock 04/08/2017 31/12/2019 385 92 65 157 Africa CLI-MARK CTA subtotal 385 92 65 157 Emory University EMU002 Women’s Empowerment in Agriculture–IMMANA Livestock 01/09/2015 31/12/2018 86 44 42 86 Project Emory subtotal 86 44 42 86 European Commission (EC) EUR016 Bridging Biobanking and Biomedical Research Livestock 01/07/2015 30/09/2018 118 48 65 113 across Europe and Africa – B3Africa (‘action’) EUR017 Linking Biodiversity, Ecosystem Functions and A4NH 01/09/2015 30/09/2019 300 170 44 214 Services in the Great Serengeti-Mara Ecosystem (GSME)–Drivers of Change, Causalities and Sustainable Management Strategies EUR019 Supporting EU African Cooperation on Research Livestock 01/03/2017 28/02/2020 183 2 103 105 Infrastructures for Food Security and Greenhouse Gas Observations EC subtotal 602 219 212 431 Food and Agriculture Organization of the United Nations (FAO) FAO048 Gender and Livestock Training Workshop Livestock 21/12/2016 31/10/2018 62 22 22 FAO052 Research on ‘Household Dynamics in Pastoral PIM 29/11/2017 28/02/2019 95 - 96 96 Communities and Implications for Drought Interventions including Targeting’ FAO053 Assessment of the Socio-economic Impact of the Livestock 22/12/2017 30/11/2018 22 - 17 17 PPR and support to the participation of few experts to attend the PPR GEP Global Research and Expertise Network (PPR GEP GREN) FAO054 A Regional Training Workshop and Capacity Livestock 02/11/2018 31/12/2018 28 - 23 23 Building on Proven Livestock Technology Use, Uptake and Adoption for Producers, Processors, Marketers and their Associations in Eastern Africa FAO subtotal 207 - 158 158 The Food, Agriculture and Natural Resources Policy Analysis Network FAN001 African Chicken Genetic Gains–Agriculture to Livestock 01/09/2016 30/11/2018 399 152 136 288 Nutrition Interventions FAN subtotal 399 152 136 288 Frontier Counties Development Council FCD001 Carry out Participatory Mapping and GIS Data Layer Livestock 01/02/2018 30/04/2018 13 - 14 14 Development of Rangeland Resources in Tana River FCD subtotal 13 - 14 14 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 71 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Ministry of Foreign Affairs Finland FIN005 Improving Food Security in West and East Africa Livestock 12/07/2016 30/09/2018 146 60 82 143 through Capacity Building in Research and Information Dissemination–Food Africa II FIN006 Improving Food Security in West and East Africa A4NH 12/07/2016 30/06/2018 147 27 119 146 through Capacity Building in Research and Information Dissemination – FoodAfrica II Finland subtotal 293 87 202 289 Global Alliance for Improved Nutrition (GAIN) GAN001 Food Safety Landscape Assessments in Tanzania Livestock 13/08/2018 31/01/2019 55 - 22 22 GAIN subtotal 55 - 22 22 Global Alliance for Livestock Veterinary Medicines (GALVmed) GAV002 BEN-1 Vaccine Evaluation CBPP Immunological Livestock 02/09/2015 31/08/2018 300 232 26 259 Studies GAV003 Development of a Novel and Robust Live Livestock 07/09/2015 09/05/2018 463 439 25 463 Vaccine for Contagious Caprine Pleuropneumonia (CCPP) GAV005 A Comprehensive Study of the Production Effects Livestock 01/01/2017 31/03/2018 100 84 16 100 of ECF-ITM in Tanzania GAV006 Porcine Cysticercosis Market Scoping Study A4NH 24/10/2017 15/12/2018 30 19 21 40 in Uganda GAV007 Towards a Subunit Vaccine for African Swine Livestock 30/11/2018 31/05/2022 1,065 - 41 41 Fever (ASF) GAV008 Development of a Live Vaccine for Contagious Livestock 01/08/2018 30/04/2019 152 - 27 27 Caprine Pleuropneumonia GALVMED subtotal 2,110 774 155 930 United Nations-UNEP-GEF/UNOPS/UNEP-DEPI GEF007 Development and Application of Livestock 01/03/2009 30/06/2016 1,983 1,792 3 1,795 Decision-Support Tools to Conserve and Sustainably Use Genetic Diversity in Indigenous Livestock and Wild Relatives UNEP subtotal 1,983 1,792 3 1,795 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GIZ009 Development of an Improved Vaccine for Livestock 01/04/2014 31/12/2017 1,655 1,340 8 1,348 Progressive Control of Contagious Bovine Pleuropneumonia GIZ012 In Situ Assessment of GHG Emissions from Two CCAFS 01/03/2015 31/12/2018 1,347 1,051 280 1,330 Livestock Systems in East Africa–Determining current status and quantifying mitigation options GIZ015 Enhanced Understanding of Zoonotic Pathogens Livestock 01/02/2016 31/01/2018 112 87 24 111 in Camels Livestock Systems–The case of MERS-CoV and Hepatitis E GIZ017 International Agricultural Research – attributed Genebanks 01/01/2017 31/03/2019 611 299 310 609 funds 2017 72 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses GIZ018 Crop Trust Long-term Grant (LTG) from Germany Genebanks 01/01/2017 31/12/2018 183 90 94 184 as a contribution to the Genetic Resources Collections of ILRI GIZ019 Safer Indigenous Pork and Healthier Ethnic A4NH 01/01/2018 31/12/2019 120 - 14 14 Minorities in Vietnam through Better Management of Parasitic Pig-borne Diseases GIZ020 Programme for Climate-Smart Livestock CCAFS 01/10/2018 30/06/2022 7,221 - 238 238 Systems (PCSL) GIZ subtotal 11,248 2,868 967 3,835 Heifer International Project HEI005 East Africa Dairy Development (EADD Phase II) Livestock 08/11/2013 31/12/2018 1,536 1,313 228 1,541 Heifer subtotal 1,536 1,313 228 1,541 International Center for Agricultural Research in the Dry Areas (ICARDA) ICA004 Improving the Performance of Pro-Poor value Livestock 13/04/2015 12/04/2018 351 307 44 351 chains of Sheep and Goats for Enhanced Livelihoods, Food and Nutrition Security in Ethiopia ICARDA subtotal 351 307 44 351 World Agroforestry Centre (ICRAF) ICR008 Restoration of Degraded Lands for Food Livestock 24/05/2016 30/09/2019 717 194 359 553 Security and Poverty Reduction in East Africa and the Sahel–Taking Successes in Land Restoration (PRUNSAR). ICRAF subtotal 717 194 359 553 International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) ICS023 Improved Livelihoods through Sustainable Livestock 23/02/2017 22/08/2020 821 64 147 211 Intensification and Diversification of Market Oriented Crop-Livestock Systems in Southern Malawi ICS024 Africa RISING: Sustainable Intensification of Key Livestock 01/05/2017 31/05/2019 219 77 69 146 Farming Systems in the Sudano-Sahelian Zone of West Africa ICS026 Enabling Value Chains to Create Sustainable Livestock 26/01/2018 30/09/2020 51 - 13 13 Income for Vulnerable People in Crop-Livestock Systems of Burkina Faso and Niger ICRISAT subtotal 1,091 141 230 371 The Integrated Development Authority of the Liptako-Gourma Region (ALG) IDA001 Feasibility Study of the Five-year Program for Non-portfolio 02/02/2017 30/09/2017 270 165 37 203 Livestock Development in the Member States of Lpitako-Gourma IDRC subtotal 270 165 37 203 International Development Research Centre (IDRC) IDR018 Engineering of African Swine Fever Virus Using Livestock 01/07/2017 01/10/2019 496 64 221 285 Synthetic Biology to Accelerate Vaccine IDR019 Custom Design of Multi-component Nanoparticle Livestock 15/06/2017 15/06/2019 629 2 310 311 Vaccines for East Coast Fever IDRC subtotal 1,125 65 531 596 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 73 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses International Food Policy Research Institute (IFPRI) IFP037 Provide methodological support on the livestock Livestock 16/08/2016 30/09/2018 80 66 12 78 add-on module for the Gender, Agriculture, and Assets Project–Phase 2 (GAAP2) IFP038 Regional Strategic Analysis and Knowledge Livestock 01/01/2017 31/12/2021 2,500 474 454 928 Support Systems (ReSAKSS) Phase II IFPRI subtotal 2,580 540 466 1,006 International Initiative for Impact Evaluation IIE004 Creating Informed Demand and Impacts through Livestock 01/03/2018 01/05/2022 430 - 41 41 Innovative and Cost-Effective Extension IIE subtotal 430 - 41 41 International Institute of Tropical Agriculture (IITA) IIT027 Intensification of Integrated Crop-livestock Systems Livestock 01/04/2016 31/03/2019 365 200 91 291 in Northern Ghana for Sustainable Increase in Smallholder Farm Productivity IIT028 Transforming Key Production Systems: Maize Livestock 01/11/2016 30/09/2018 162 128 52 180 Mixed East and Southern Africa IIT030 Tuendelee Pamoja II Project Livestock 01/10/2016 30/09/2019 237 2 104 106 IIT031 Facilitating Value Addition and Processing in Livestock 28/09/2017 31/12/2019 280 28 76 104 the Context of the Cassava, Maize, Banana, Vegetable and Livestock Value Chains (PRODEMA) – Activities to support the Milk Value Chain IITA subtotal 1,044 358 323 681 The International Land Coalition ILC002 NES Formulation Livestock 01/08/2016 31/12/2019 915 468 671 1,139 ILC subtotal 915 468 671 1,139 Rural Development Administration–Korea KOR019 Development of New Forage Genetic Resources Livestock 01/12/2015 31/12/2020 350 143 69 213 and their Utilization KOR020 Experimental Metadata Generation for Sharing Livestock 01/01/2017 31/12/2018 50 2 26 28 Genome and Metagenome Data in Korean and African Chicken Korea subtotal 400 146 95 241 Global Crop Diversity Trust LTG001 Long-term Funding of Ex situ Collections of Genebanks 01/01/2011 31/12/2018 974 927 380 1,307 Germplasm GCDT subtotal 974 927 380 1,307 Land O’Lakes International Development Fund LOL001 Land O’Lakes International Development Fund Livestock 12/07/2016 30/09/2018 159 54 51 105 LOL subtotal 159 54 51 105 74 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Lund University LUN002 Nurturing a Network of Policy Analysts for Livestock 01/10/2017 31/10/2018 232 13 213 225 Enhanced Development and Food and Nutrition Security in Kenya LUN subtotal 232 13 213 225 The McKnight Foundation MCK002 Nurturing a Network of Policy Analysts for Livestock 01/04/2018 01/03/2020 75 - 10 10 Enhanced Development and Food and Nutrition Security in Kenya McKnight Foundation subtotal 75 - 10 10 Niji Foods Nigeria Limited NFN001 Establishment of a Commodity Scaling Partnership Livestock 01/09/2016 30/11/2017 36 13 - 4 9 between ILRI and Niji NFN subtotal 36 13 - 4 9 Netherlands Organisation for Scientific Research (NWO) NWO001 Women in Business: Chicken Seed Dissemination Livestock 01/09/2018 01/12/2018 13 - 7 7 in Ethiopia and Tanzania NWO subtotal 13 - 7 7 Overseas Development Institute (ODI) ODI002 Feed and Fodder Production in Different Livestock 15/04/2017 14/04/2020 1,140 96 333 430 Agro-climatic zones and its Utilization for Livestock of Odisha ODI subtotal 1,140 96 333 430 Public Health Foundation of India PHF001 Promoting Health, Livelihood, and Sustainable A4NH 09/05/2014 30/06/2018 355 144 201 345 Livestock Systems PHF subtotal 355 144 201 345 Resource Conflict Institute RCI003 Implementation of Participatory Rangelands Livestock 28/03/2018 28/02/2019 47 - 39 39 Management Project RCI subtotal 47 - 39 39 Research Triangle Institute RTI001 Kenya Feed the Future Crops and Dairy Markets Livestock 21/10/2017 20/09/2022 1,288 - 243 243 Systems Development Activity RTI subtotal 1,288 - 243 243 The Regents of the University of California RUC002 Geospatial and Farming Systems Consortium Livestock 05/01/2017 30/04/2019 107 29 52 82 RUC003 Advancing Index Insurance Livestock 15/06/2017 30/04/2019 1,162 223 879 1,102 RUC subtotal 1,269 253 931 1,184 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 75 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Terra Nuova TEN003 Provision of Livestock Investment and Vocational Livestock 03/03/2016 31/12/2018 436 304 142 446 Education Program (LIVES) Somalia Terra Nuova subtotal 436 304 142 446 Texas A&M AgriLife Research TEX012 Feed the Future Innovation Lab on Small-Scale Livestock 01/11/2013 30/11/2018 1,087 933 164 1,097 Irrigation in Ethiopia, Tanzania, and Ghana (ILSSI) TEX013 Evaluation of the Relationship between Livestock 01/10/2015 15/09/2019 111 42 22 64 Sustainably Intensified Production Systems and Farm Family Nutrition Texas subtotal 1,199 975 186 1,161 Technoserve TNS001 The Innovations in Outcome Measurement Livestock 19/06/2017 31/12/2018 36 24 12 37 (IOM) Project TNS subtotal 36 24 12 37 Livestock & Fisheries Department, Government of Sindh SAG001 Sindh Agricultural Growth Project (Livestock Livestock 15/09/2017 15/09/2019 1,295 68 423 491 Component) SAG subtotal 1,295 68 423 491 Stockholm Environment Institute SEI001 Research and Learning for Sustainable Livestock 05/05/2017 31/12/2019 180 33 63 95 Intensification of Smallholder Livestock Value Chains in Burkina Faso, Ethiopia and Tanzania. SEI subtotal 180 33 63 95 SOAS University of London SOA001 Market Intervention for Nutritional Livestock 03/03/2018 31/05/2020 101 - 31 31 Improvement (MINI) SOAS subtotal 101 - 31 31 Navajbai Ratan Tata Trust (NRTT) SRT004 TATA-ILRI Partnership on Enhancing Sustainable Livestock 01/01/2015 31/01/2019 218 39 24 63 Livelihoods of Marginal Communities through Targeted Livestock Research–HIMMOTTHAN SRT005 TATA-ILRI Partnership on Enhancing Sustainable Livestock 01/04/2015 31/01/2019 249 54 11 65 Livelihoods of Marginal Communities through Targeted Livestock Research–INEIDA SRT006 TATA-ILRI Partnership on Enhancing Sustainable Livestock 01/04/2015 31/01/2019 174 34 25 59 Livelihoods of Marginal Communities through Targeted Livestock Research–Navajbai Ratan Tata Trust NRTT subtotal 641 126 60 186 76 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses University of Edinburgh UOE007 Poultry genomic work under CTLGH Livestock 01/10/2015 31/12/2018 170 54 31 84 UOE006 Genomic Tools to Improve the Productivity, Livestock 07/10/2015 31/03/2022 8,127 1,357 1,415 2,772 Efficiency, Resilience and Health of Tropical Livestock Owned by Poor Smallholder Farmers UOE subtotal 8,297 1,411 1,446 2,857 University of Florida (UF) UOF001 Livestock Systems innovation Lab (LSIL) Livestock 01/03/2016 30/09/2020 1,528 190 319 508 UOF002 Enhancing Milk Quality and Consumption for Livestock 01/01/2017 31/12/2019 1,105 92 240 333 Improved Income and Nutrition in Rwanda UOF003 Improving Handling Practices and Microbiological A4NH 01/11/2016 31/12/2018 125 6 91 98 Safety of Milk and Milk Products in Borana Pastoral Communities, Ethiopia UOF004 Feed the Future Innovation Lab for Livestock Systems A4NH 20/07/2017 19/07/2020 775 17 119 136 UOF005 Assessment of Aflatoxin-related Health Risks for A4NH 07/08/2018 31/07/2019 150 - 13 13 Milk Consumers in Rural and Peri-Urban Areas in Burkina Faso UOF007 EQUIP–Strengthening Smallholder Livestock Livestock 01/01/2018 31/12/2021 52 - 6 6 Systems for the Future in Burkina Faso UoF subtotal 3,735 305 789 1,094 Biotechnology and Biological Sciences Research Council (BBSRC) UOL001 Zoonoses in Livestock in Kenya (ZooLINK) A4NH 01/08/2015 30/12/2019 1,524 640 483 1,123 BBSRC subtotal 1,524 640 483 1,123 University of Copenhagen UCN001 Health and Antibiotics in Vietnamese Pig Production A4NH 01/02/2018 31/01/2020 43 - 0 0 UCN subtotal 43 - 0 0 University of Liverpool UOL002 One Health Regional Network for the Horn of Africa A4NH 01/10/2017 31/12/2021 1,484 - 174 174 UOL subtotal 1,484 - 174 174 University of Nottingham UON002 Understanding the Pathogen, Livestock, Environment Livestock 06/01/2017 30/11/2020 335 - 86 86 Interactions involving Bluetongue Virus UON subtotal 335 - 86 86 University of Oxford UOX001 Advanced Development of a Safe and Effective Livestock 01/01/2018 31/08/2019 450 - 162 162 Rift Valley Fever Vaccine for Livestock UOX subtotal 450 - 162 162 Uppsala University UPP001 Metropolitan Mosquito and SEA Rabies Project A4NH 01/01/2018 31/12/2021 262 - 42 42 Uppsala University subtotal 262 - 42 42 Wageningen University WAN002 Putting Nitrogen Fixation to Work for Smallholder Livestock 01/01/2014 30/06/2019 2,392 1,863 425 2,289 Farmers in Africa Phase II WAN004 Improving Village Chicken Protection to Elevate Livestock 01/04/2015 31/03/2019 49 1 18 19 Livelihoods of Poor People in Ethiopia INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 77 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses WAN005 Piloting MDD-W as a Nutrition Sensitive Indicator Livestock 01/03/2018 28/02/2019 76 - 74 74 for the Food Security and Nutrition Action in Chad WAN subtotal 2,518 1,864 518 2,382 World Bank WBA036 African Food Safety Capacity Building A4NH 01/12/2017 30/09/2018 36 - 35 35 WBA037 Pastoral Household Survey Database Sharing Livestock 22/10/2018 24/12/2018 20 - 21 21 and Analytical Support to the World Bank World Bank subtotal 56 - 56 56 World Food Programme WFP001 WFPs Satellite Index Insurance for Pastoralists in Livestock 04/02/2017 31/03/2018 173 136 37 173 Ethiopia (SIIPE) WFP002 An Innovative EO-based Drought Model for African Livestock 30/05/2018 31/12/2018 170 - 171 171 Pastoral areas to Improve Sovereign Disaster Risk Management Under African Risk Capacity (ARC) WFP subtotal 343 136 208 344 Washington State University WSU001 Identifying Anthrax Hotspots and Associated A4NH 01/06/2017 31/05/2020 250 9 108 116 Ecological Factors in Kenya WSU subtotal 250 9 108 116 World Vision International (Myanmar) WVM001 Tanintharyi Region Rural Income and Livelihoods Livestock 15/10/2017 15/01/2019 32 - 15 15 Development WVI subtotal 32 - 15 15 WYG International Limited WYG001 DFID Sustainable Agricultural Intensification Livestock 01/12/2016 31/12/2019 244 73 73 146 Research and Learning in Africa (SAIRLA) WYG subtotal 244 73 73 146 SUBTOTAL D 66,728 22,776 13,887 36,662 E: RESTRICTED OTHER–BILATERAL ACDI/VOCA ACD001 Improving Animal Feed Policy and Regulatory Non-portfolio 01/09/2018 31/08/2020 335 - 7 7 Environment in Ethiopia ACDI/VOCA subtotal 335 - 7 7 Various donors BEC001 BecA Asset Replacement Fund Non-portfolio 01/01/2014 31/12/2020 1,644 584 325 910 BEC002 BecA support funds Non-portfolio 01/09/2014 31/12/2020 824 9 1 10 BEC subtotal 2,468 593 326 920 Biotechnology and Biological Sciences Research Council (BBSRC) BBS005 Targeting Virus Transmission in a Vital Crop for Non-portfolio 01/05/2017 30/04/2019 349 51 165 215 African Food Security BBSRC subtotal 349 51 165 215 Canadian International Development Agency (CIDA) CID006 Livestock and Irrigation Value Chain for Ethiopia Non-portfolio 01/04/2012 31/03/2018 19,324 15,939 269 16,208 Smallholders (LIVES) CIDA subtotal 19,324 15,939 269 16,208 78 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Catholic Relief Services–United States Conference of Catholic Bishops (CRS) CRS001 Consulting Service Agreement for the Goat Value Non-portfolio 16/01/2017 28/02/2019 120 57 49 106 Chain work as part of ZALiP CRS subtotal 120 57 49 106 Defense Threat Reduction Agency/J4C DTR001 Africa Swine Fever Virus Genome Sequencing to Non-portfolio 07/07/2016 06/07/2019 1,246 168 307 475 Underpin Control DTR subtotal 1,246 168 307 475 Emory University EMU003 The Drivers of Diet Change and Food Choice Non-portfolio 01/08/2016 31/10/2018 68 55 3 58 among Tanzanian Pastoralists Transition Emory subtotal 68 55 3 58 European Community (EC) EUR018 BecA-ILRI Hub and SIDA partnership for agricultural Non-portfolio 01/06/2017 31/05/2022 776 80 168 247 research and biosciences Capacity Building EC subtotal 776 80 168 247 Food and Agriculture Organization of the United Nations (FAO) FAO051 A workshop on identifying investment Non-portfolio 30/10/2017 15/01/2018 33 27 6 33 opportunities in Eastern Africa-region FAO subtotal 33 27 6 33 Gulu University GUL001 Development and Validation of New Diagnostic Non-portfolio 15/05/2016 14/05/2018 100 49 41 90 Tools for Detection and Characteristics of Sweet Potato Viruses in East Africa Using Next Generation Sequencing Gulu subtotal 100 49 41 90 World Agroforestry Centre (ICRAF) ICR007 Drylands Restoration Non-portfolio 01/04/2015 31/01/2018 301 246 44 290 ICR006 Local Governance and Adapting to Climate Change Non-portfolio 01/01/2015 31/08/2019 464 423 29 452 ICRAF subtotal 765 669 73 742 International Crop Research Institute for the Semi-Arid Tropics (ICRISAT) ICS025 Scaling-up of Bhoosamrudhi Program in Bidar, Non-portfolio 01/04/2017 31/03/2019 120 - 82 82 Dharwad, Udupi and Chikkaballapur districts in Karnataka (Bhoosamrudhi Phase II) ICRISAT subtotal 120 - 82 82 International Food Policy Research Institute (IFPRI) IFP029 SNV–IFPRI Project on Evidence-based Advocacy Non-portfolio 01/07/2016 31/12/2017 450 185 177 362 IFP039 Evidence Products in Advocacy Efforts Non-portfolio 01/05/2017 15/08/2018 30 - 30 30 IFP041 Evidence Products in Advocacy Efforts Non-portfolio 01/12/2017 30/09/2018 31 - 28 28 IFPRI subtotal 511 185 235 421 International Institute Of Tropical Agriculture (IITA) IIT032 TAAT Small Livestock Compact Non-portfolio 01/11/2017 01/10/2020 2,674 - 339 339 IIT033 An international symposium for cavy production Non-portfolio 01/07/2018 31/12/2019 31 - 21 21 IITA subtotal 2,705 - 360 360 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 79 2018 F I N A N C I A L S T A T E M E N T S Exhibit II Grant pledges and expenses FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Grant Grant title CRP/non- Start End Grant Prior year’s Expenses Total portfolio date date pledge Expenses 2018 Expenses Kansas State University (KSU) KSU001 Sustainable Intensification through Better Livestock 01/10/2015 15/09/2019 998 379 338 718 Integration of Crop and Livestock Productions Systems for Improved Food Security and Environ- -mental Benefits in Sahelian Zone in Burkina Faso KSU subtotal 998 379 338 718 Kenya Agricultural & Livestock Research Organization (KALRO) KAR002 Bovine Pleuropneumonia–Phase2 Non-portfolio 20/05/2015 17/03/2018 177 141 0 141 KALRO subtotal 177 141 0 141 Ministry of Livestock and Fisheries (MoL&F) MLF001 Baseline Survey for Drought Resilience and Non-portfolio 01/09/2017 30/10/2018 316 49 265 314 Sustainable Livelihood Program MLF002 Baseline Survey for Drought Resilience and Non-portfolio 01/02/2018 31/12/2019 177 - 177 177 Sustainable Livelihood Program MLF subtotal 493 49 442 491 Monash University MON001 Comparative Assessment of Livestock Sector Non-portfolio 23/03/2017 23/03/2019 20 0 13 13 Reforms in Pakistan over the Past Three Decades MU subtotal 20 0 13 13 The Nelson Mandela African Institution of Science and Technology (NM-AIST) NMA001 Global Health, Emerging Infectious Diseases and Non-portfolio 20/04/2016 19/11/2018 246 101 64 165 Food Safety Implication of Bushmeat Consumption in Tanzania NM-AIST subtotal 246 101 64 165 Swedish International Development Cooperation (SIDA) SID006 BecA ILRI Hub and SIDA Partnership for Agricultural Non-portfolio 30/06/2017 30/06/2022 5,494 236 614 849 Research and Biosciences Capacity Building SIDA subtotal 5,494 236 614 849 SNV-Netherlands Development Organization SNV002 Red Meat Value Chain Development in Maputo Non-portfolio 01/01/2013 31/12/2019 2,073 239 127 366 and Limpompo Corridors (Prosul Project) SNV subtotal 2,073 239 127 366 Wellcome Trust WEL015 Afrique One–African Science Partnership for Non-portfolio 01/07/2016 30/06/2021 433 0 13 13 Intervention Research Excellence (Afrique One-ASPIRE) Wellcome Trust subtotal 433 0 13 13 World Bank WBA032 Kenya Livestock Insurance Program Non-portfolio 04/10/2016 31/08/2019 1,280 762 510 1,272 World Bank subtotal 1,280 762 510 1,272 SUBTOTAL E 40,132 19,780 4,211 23,991 GRAND TOTAL 274,530 120,670 66,911 183,723 80 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit III CRP/portfolio expenditure reports FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) CGIAR Research Program on Livestock–Participating centre Natural classification *Window Window 3 Bilateral Centre Total 1 and 2 funding funds funding Personnel 4,876 3,643 4,237 - 12,756 Collaboration costs–CGIAR centres - 3,578 24 - 3,602 Collaboration costs–partners 594 4,630 816 - 6,040 Supplies and services 3,249 3,858 3,505 34 10,646 Operational travel 272 840 746 - 1,858 Depreciation 37 1,117 11 - 1,165 Cost sharing percentage 85 474 67 23 650 Subtotal of direct costs 9,113 18,140 9,406 57 36,716 Indirect costs 1,613 1,724 1,195 542 5,074 Total–all costs 10,726 19,864 10,601 599 41,790 Note: *The W1/2 expenses include the gender postdoctoral expenses (CGI001 and CGI002 grants) CGIAR Research Program on Climate Change Agriculture and Food Security (CCAFS) Natural classification Window Window 3 Bilateral Centre Total 1 and 2 funding funds funding Personnel 767 100 293 - 1,160 Collaboration costs–CGIAR centres - 150 - - 150 Collaboration costs–partners 75 - 155 - 229 Supplies and services 561 298 141 10 1,011 Operational travel 204 54 20 - 278 Depreciation - - - - - Cost sharing percentage - 19 5 5 29 Subtotal of direct costs 1,606 621 614 15 2,857 Indirect costs 258 47 83 - 389 Total–all costs 1,864 669 698 15 3,246 CGIAR Research on Agriculture Program for Nutrition and Health (A4NH) Natural classification Window Window 3 Bilateral Centre Total 1 and 2 funding funds funding Personnel 862 768 623 - 2,253 Collaboration costs–CGIAR centres - 99 - - 99 Collaboration costs–partners 191 130 42 - 363 Supplies and services 1,150 625 597 - 2,372 Operational travel 329 91 62 - 482 Depreciation 13 - 13 - 25 Cost sharing percentage 19 53 11 - 83 Subtotal of direct costs 2,564 1,766 1,348 - 5,678 Indirect costs 399 234 186 - 819 Total–all costs 2,964 2,000 1,534 - 6,497 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 81 2018 F I N A N C I A L S T A T E M E N T S Exhibit III CRP/portfolio expenditure reports FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) CGIAR Research Program on Policies, Institutions and Markets (PIM) Natural classification Window Window 3 Bilateral Centre Total 1 & 2 funding funds funding Personnel 138 - 102 - 239 Collaboration costs–CGIAR centres - - - - - Collaboration costs–partners - - - - - Supplies and services 116 - 127 - 242 Operational travel 46 - 16 - 62 Depreciation - - - - - Cost sharing percentage - - 3 - 3 Subtotal of direct costs 300 - 248 - 548 Indirect costs 59 - 22 - 81 Total–all costs 359 - 270 - 629 CGIAR Platform on Big Data in Agriculture Natural classification Window Window 3 Bilateral Centre Total 1 & 2 funding funds funding Personnel 110 - - - 110 Collaboration costs–CGIAR centres - - - - - Collaboration costs–partners - Supplies and services 130 - - - 130 Operational travel 10 - - - 10 Depreciation - - - - - Cost sharing percentage - - - - - Subtotal of direct costs 251 - - - 251 Indirect costs 38 - - - 38 Total–all costs 288 - - - 288 CGIAR Platform on Genebanks Natural classification *Window Window 3 Bilateral Centre Total 1 & 2 funding funds funding Personnel 398 - 291 - 689 Collaboration costs–CGIAR centres - - - - - Collaboration costs–partners 17 - - - 17 Supplies and services 620 - 344 - 964 Operational travel 4 - 15 - 19 Depreciation 30 - 75 - 105 Cost sharing percentage - - 8 - 8 Subtotal of direct costs 1,069 - 733 - 1,802 Indirect costs 221 - 52 - 273 Total–all costs 1,290 - 785 - 2,075 *W1/W2 expenditure includes 2011 Genebank Support Funds (GEN002) 82 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S Exhibit III CRP/portfolio expenditure reports FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) CGIAR Research Program on Livestock–Lead centre Natural classification *Window Window 3 Bilateral Centre Total 1 & 2 funding funds funding Personnel 4,876 3,643 4,237 - 12,756 Collaboration Costs–CGIAR centres 3,270 3,578 24 - 6,871 Collaboration costs–partners 594 4,631 816 - 6,040 Supplies and services 3,249 3,859 3,505 34 10,646 Operational travel 272 840 746 - 1,858 Depreciation 37 1,117 11 - 1,165 Cost sharing percentage 85 474 67 23 650 Subtotal of direct costs 12,383 18,141 9,406 57 39,986 Indirect costs 1,613 1,724 1,195 542 5,074 Total–all costs 13,996 19,864 10,601 599 45,060 Note: *The W1/2 expenses include the gender postdoctoral expenses (CGI001 & CGI002 grants) Pork sampling in Da Bac District, Hoa Binh Province, Vietnam (photo credit: ILRI/Chi Nguyen). INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 83 2018 F I N A N C I A L S T A T E M E N T S Exhibit IV CRP W1 and W2 funding reports FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) CGIAR Research Program on Climate Change Agriculture and Food Security (CCAFS) Window 1 and 2 Opening balance (383) Add: cash receipts from lead centre 2,077 Less: disbursements (1,863) Closing balance (171) CGIAR Research Program on Agriculture for Nutrition and Health (A4NH) Window 1 and 2 Opening balance 784 Add: cash receipts from lead centre 2,917 Less: disbursements (2,963) Closing balance 738 CGIAR Research Program on Policies, Institutions and Markets (PIM) Window 1 and 2 Opening balance (381) Add: cash receipts from lead centre 515 Less: disbursements (359) Closing balance (225) CGIAR Platform on Big Data in Agriculture Window 1 and 2 Opening balance 78 Add: cash receipts from lead centre 196 Less: disbursements (288) Closing balance (15) CGIAR Platform on Genebanks Window 1 and 2 Opening balance (121) Add: cash receipts from lead centre 811 Less: disbursements (1,290) Closing balance (601) CGIAR Research Program on Livestock Description Window 1 and 2 Opening balance held by lead centre 6,520 Add: cash receipts from lead centre 15,472 Less: disbursements ILRI–lead centre (10,017) CIAT (1,593) ICARDA (1’652) SLU (594) (13,856) Closing balance held by lead centre 8,136 Note: *Income and expenditure for the gender postdoctoral agreements (CGI001 and CGI002 grants) is excluded in the report because it is not part of the PIA. 84 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 F I N A N C I A L S T A T E M E N T S INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 85 Exhibit V Detailed statement of activities FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) 2018 2017 Unrestricted Restricted Total Unrestricted Restricted Total Notes Non- Non- Non- Grand Total Non- Non- Non- Grand Total Portfolio portfolio Portfolio portfolio Portfolio portfolio USD Portfolio portfolio Portfolio portfolio Portfolio portfolio USD USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 ‘000 Revenue and gains Grant revenue (exhibit I and II) Window 1 and 2 17 - - 20,761 - 20,761 - 20,761 - - 15,051 - 15,051 - 15,051 Window 3 17 - - 22,533 5,520 22,533 5,520 28,053 - - 22,968 6,468 22,968 6,468 29,436 Bilateral 17 - - 13,887 4,211 13,887 4,211 18,097 - - 12,335 5,387 12,335 5,387 17,723 Total grant revenue - - 57,181 9,730 57,181 9,730 66,911 - - 50,354 11,855 50,354 11,855 62,209 Other revenues and gains 18 - 7,908 - - - 7,908 7,908 - 6,438 - - - 6,438 6,438 Sale of livestock 19 - 250 - - - 250 250 - 252 - - - 252 252 Fair value (loss) gain on livestock 21 - 261 - - - 261 261 - 33 - - - 33 33 Cost of sale of livestock 20 - (58) - - - (58) (58) - (107) - - - (107) (107) TOTAL REVENUE AND GAINS - 8,362 57,181 9,730 57,181 18,092 75,274 - 6,616 50,354 11,855 50,354 18,472 68,825 Expenses and losses Research expenses 23 614 1,983 37,279 7,947 37,893 9,929 47,822 343 3,637 30,700 9,608 31,043 13,245 44,287 CGIAR collaborator expenses 24 - - 7,120 (1) 7,120 (1) 7,119 - - 6,979 239 6,979 239 7,218 Non-CGIAR collaborator expenses 24 - 426 6,650 611 6,650 1,036 7,687 - - 6,532 514 6,532 514 7,046 General and administration expenses 25 - 2,296 6,131 1,174 6,131 3,469 9,601 - 1,069 6,144 1,494 6,144 2,564 8,707 Other expenses and losses 26 - 4,352 - - - 4,352 4,352 - 4,886 - - - 4,886 4,886 TOTAL EXPENSES AND LOSSES 614 9,055 57,181 9,730 57,795 18,785 76,581 343 9,592 50,354 11,855 50,697 21,447 72,144 Operating surplus/deficit (614) (693) - - (614) (693) (1,307) (343) (2,975) - - (343) (2,975) (3,319) Non-operating 9,847 Gain on sale of asset(s) - 101 - - - 101 101 - - - - - - - Finance income - 2,327 - - - 2,327 2,327 - 2,904 - - - 2,904 2,904 Total non-operating income - 2,428 - - - 2,428 2,428 - 2,904 - - - 2,904 2,904 Loss on sale of asset(s) - Finance expenses - (791) - - - (791) (791) - (552) - (552) (552) Total non-operating expenses - (791) - - - (791) (791) - (552) - - - (552) (552) Non-operating surplus/deficit - 1,637 - - - 1,637 1,637 - 2,352 - - - 2,352 2,352 SURPLUS / DEFICIT FOR THE YEAR (614) 944 - - (614) 944 330 (343) (624) - - (343) (624) (967) OTHER COMPREHENSIVE INCOME Exchange differences on translation or foreign operations - 5 - - - 5 5 - (4) - - - (4) (4) Subtotal other comprehensive income - 5 - - - 5 5 - (4) - - - (4) (4) TOTAL COMPREHENSIVE SURPLUS/DEFICIT FOR THE YEAR (614) 949 - - (614) 949 335 (343) (628) - - (343) (628) (971) 2018 F I N A N C I A L S T A T E M E N T S Exhibit VI Detailed statement of financial position FOR THE YEAR ENDED 31 DECEMBER 2018 (USD‘000) Notes Consolidated 2018 Consolidated 2017 USD’000 USD’000 Assets Current assets Cash and cash equivalents 6 55,192 57,701 Short-term investments Accounts receivable Donors 7 8,044 9,140 Advances to partners 7 2,962 3,886 Other CGIAR centres 7 1,389 1,945 Employees 7 582 609 Others 7 4,349 3,400 Inventories–net 9 480 611 Prepaid expenses 8 2,901 2,611 Total current assets 75,899 79,904 Non-current assets Prepaid operating lease - - Property and equipment–net 10 13,249 12,319 Long-term investments - Biological assets 11 1,845 1,552 Intangible assets - - Other non-current assets - Total non-current assets 15,094 13,872 TOTAL ASSETS 90,993 93,775 Liabilities and net assets Current liabilities Accounts payable Donors 12 29,584 33,507 Advances to partners 12 3,644 2,016 Other CGIAR centres 12 1,235 3,092 Employees 12 1,910 2,331 Others 12 11,753 6,212 Provisions 13 283 589 Accruals 14 2,070 6,062 Total current liabilities 50,479 53,809 Non-current liabilities Account payables–employees 15 5,763 5,550 Total liabilities 56,242 59,360 Net assets Undesignated 22,180 19,145 Designated 12,571 15,271 Total unrestricted net assets 34,751 34,416 Temporary net assets–other comprehensive income - - IFRS conversion - - Restricted net assets - - Total net assets 34,751 34,416 TOTAL LIABILITIES AND NET ASSETS 90,993 93,775 86 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE A Laos farmer chopping fodder for her cow (photo credit: ILRI/Stevie Mann). Chicken at a new poultry research facility and art installation at the Ethiopian campus of the International Livestock Research Institute (photo credit: ILRI/Apollo Habtamu). The International Livestock Research Institute (ILRI) works to improve food and nutrition security and reduce poverty in developing countries through research for effi cient, safe and sustainable use of livestock. Co-hosted by Kenya and Ethiopia, it has regional or country offi ces and projects in East, South and Southern Asia as well as Central, East, Southern and West Africa. ilri.org CGIAR is a global research partnership for a food-secure future. Its science is carried out by 15 2018 F I N A N C I A L S T A T E M E N T S research centres in close collaboration with hundreds of partners across the globe. cgiar.org INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE 2018 FINANCIAL STATEMENTS