MTERNATIONAL LIVESTOCK RESEARCH INSTITUTE FINANCIAL STATEMENTS YEAR ENDED 3 1 DECEMBER 2006 ERNST &YOUNG INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 CONTENTS PAGE Board of Trustees 1 Statement of hupose of ERI 2-4 Statement by the Chairman of the Board of Trustees 5 Board statement on Risk Management 6 Statement of Management’s Responsibilities 7 Report of the Independent Auditors 8 Statement of Financial Position 9 Statemet of Activities 10 Statement of Changes in Net Assets 11 Statement of Cash Flows 12 Notes to the Financial Statements 1.3-24 Exhibit 1 Schedule of Unrestricted Grant Revenue 25 Exhibit 2 Schedule of Program Restricted Grant Revenue 26 Exhibit 3 Schedule of Project Restricted Grant Revenue 2 7-45 Exhibit 4 Schedule of Furnishings and Equipment 46 Exhibit 5 Schedule of Direct and Indirect Cost Rates 47 MTEWATlONAL LIVESTOCK RESEARCH INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 BOARD OF TRUSTEES Dr Uwe Werblow - German - Chair Dr Agnes Casiple Rola - Philippines - Vice Chair-(Retired-November 2006) Dr Fee Chon Low - Malaysia - Reappointed November 2006 Dr Carlos Sere - Uruguay - Dr. Romano Kiome - Kenya - Ex-officio (Director General) - Host Country Representative Dr Abera Deressa - Ethiopia Host Country Representative (Appointed February 2006) Dr Nthoana Tau-Mzamane - - Prof h u t Hove - South Africa Norway - Reappointed November 2004 Appointed October 2005 Dr James Dargie -- United Kingdom -Reap ointed Au ust 2005 Ms Emmy Simmons United States of America -- - Appomed October 200? Dr Modibo Traore - Mali Appointed October 2005 Dr Teruhide Fujita - Japan Retired November 2006 ................................ R Bruce Scott Secretary Nairobi .. . %. ..March 2007 1 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 STATEMENT OF PURPOSE The International Livestock Research Institute (ILRl) works at the crossroads of livestock and poverty, bringing high-quality science and capacity building .to, bear on poverty reduction and sustainable development for poor livestock keepers and their communfties, LRI works in all tropical developing regions: Afiica, Asia, Latin America and the Caribbean. WHY LIVESTOCK RESEARCH FOR THE POOR? Worldwide the roles of livestock, and the external economic and institutional context in which the livestock sector is operating is changing rapidly with important implication for the poor. By 2020, the livestock sector is projected to become the most important agricultural sub-sector worldwide, producing about 30 percent of the value of global agricultural output and directly or indirectly accounting for 80 percent of land use. Livestock in developing countries contributes about 1 1% .of total GDP. The 'livestock revolution' will double demand for animal food products in developing countries over the next 20 years. However, efforts by the poor to take advantage of this demand are hampered by inappropriate policies, scarce livestock feeds, devastating diseases, degraded land and water resources, and poor access to markets. Research by ILRI and its partners is helping.to alleviate these problems by providing livestock-based options that transform livelihoods of the poor through more environment-fiendly and market-oriented livestock enterprises. Based in Africa but working worldwide, ILRI positions its work at the dynamic interface of poverty alleviation and sustainable livestock-derived livelihoods. RESEARCH THEMES The Institute's long-term strategy provides a goal and a set of research themes and outlines ways in which ILRI will seek to enhance its responsiveness to a dynamic global environment. . With diverse partners, ILRI conducts livestock-based research and builds livestock research capacity in focussing on three major pathways out of poverty: Securing assets of the poor Improving production efficiencies in smallholder livestock systems Improving marlcet opportunities for the poor ILRI's agenda comprises five strategic research themes. The following questions are at the centre of our planning and research: 1. Targeting opportunities: How can livestock contribute to pathways out of poverty? 2. Enabling innovation: How can adoption of livestock and agriculturally related innovations be accelerated? 3. Market opportunities: How can the poor access the benefits of emerging livestock markets? 4. Biotechnology: How can livestock biotechnology best be used for development? 5. People, livestock and the environment: How can livestock livelihoods make a larger contribution to human and environmental well being? The organizational structure is built around those five themes. At the end of 2006, the first and second themes were merged as the "Targeting and Innovation Theme". 2 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 STATEMENT OF PURPOSE (continued), LOCATIONS AND STAFF ILRI's headquarten are located in Nairobi, Kenya, with a second-p&&pal 'campus in Addis Ababa, Ethiopia. In 2006, ILRI scientists were also based in partner institutions in Africa (Niger, Nigeria, Mozambique, and Mali), Asia (China, India, and Vietnam) and Latin America (Nicaragua). LRl employs about 740 staff fiom about 40 nationalities, including 83 internationally recruited staff representing some 30 disciplines. About 650 staff are nationally recruited, largely fiom Kenya and Ethiopia. An increasing number of scientists who work at ILRI are jointly appointed by a partner organization and ILRI. GOVERNANCE The Board of Trustees is composed of 12 outstanding professionals with particular expertise in the field of livestock science, agricultural research, development and corporate management. The key role of the Board is to determine ILRI's mission, to oversee the adequacy of the Institute's strategy, strategic planning and programme review processes, and to provide appropriate input iqto it. The Board ensures that plans and programmes are appropriate for carrying out ILRI's mandate, that they -are in line with CGIAR priorities and that they have high probability for impact on poverty reduction and sustainable natural resource use. LRI is one of the 15 international agricultural research centres supported by the Consultative Group on International Agricultural Research (CGIAR) which is an association of more than 60 governments and public-and private-sector institutions working to reduce poverty, hunger and environmental degradation in developing countries. The co-sponsors of the CGIAR are the World Bank, the United Nations Development Programme, the Food and Agriculture Organization of the United Nations and the International Fund for Agricultural Development FUNDING ILRI is funded by more than 50 private, public and government organizations of the North and South. Some donors support ILFU with core and programme funds whereas others finance individual research projects. In-kind support fiom national partners, particularly Kenya and Ethiopia as well as that from international collaborators is substantial and vital. This mix of generic, specific and in-kind resources is essential for the partnership research we conduct. 3 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE FTNANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 STATEMENT OF PURPOSE (continued) PARTNERSHIPS ILRI’s strategy is based on strong partnerships as an essential way of operafig and ensuring that the outputs of our research lead to development impacts. It gives us pleasure to acknowledge the donor countries and organisations that supported ILRl research in 2006 listed in exhibit 1 through 3. We could not have helped reduce world poverty through animal agriculture research without their ‘intellectual as well as financial support. Many thanks. Signed on behalf of the Board of Trustees by: Director 4 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT BY THE CHAIRMAN OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 3 1 DECEMBER 2006 With ILRl’s second External Programme and Management Review (EPMR) on top of other major challenges such as the eastern and southern Africa programme alignment process, collaboration with ICR4F on corporate services, the final stage in launching the eastern and central Africa bioscience facility and continued efforts in the field of HR reform, 2006 was an extremely busy year for the lLRl family. But it was at the same time a very successhl year. With quite some pride, the Board would like to thank all lLRl staff for their commitment and hard work. Two Board of Trustees (BOT) meetings and retreats were held in 2006 in Addis Ababa, Ethiopia, and Nairobi, Kenya. A number of board members participated in the Institute’s Annual Planning Meeting (APM) to get acquainted with the ILRI programme and research staff, to monitor ongoing work and progress and to reflect jointly with ILRl staff on strategic issues related to the Institute and the broader CGIAR agenda. In 2006, lLRl had its second External Programme and Management Review conducted under the Chairmanship of Professor Lindsay Falvey. The review was carried out in two phases and included prior attendance at the April 2006 Board meeting by the Chair and Governance expert and field visits in Africa and Asia. The Panel reviewed ILRI’s performance in four areas: 1) mission, strategy and priorities; 2) quality and relevance of the science; 3) effectiveness and efficiency of management (including governance and finance); and 4) accomplishments and impacts. The Panel found ILRl to be a strong research institute that has during the period under review developed a systems-oriented holistic research approach to better address livestock related problems that are relevant to the poor. The Panel reported that ILRI’s research structure as revised in its latest Medium- Term Plan is likely to allow the Institute to effectively respond to the challenges that the highly dynamic livestock sector in developing countries poses on poor people and the environment. The Panel also found lLRl to be a well-governed institute with responsive leadership and management. The Panel noted that: “ILRI continues to be a unique Centre that deserves specific recognition for addressing an orphan component of international agricultural research.” To read the whole report, please go to the Science Council website of the Consultative Group on International Agricultural Research (CGIAR) at: http://www.sciencecouncil .c~iar.ore;/puFULL%2O2nd%2OlLRl%~OEPM R%20Reuoi?.~df The Board is pleased to note the continued financial health and stability and the sound and prudent management of the Institute’s financial resources. Revenue in 2006 amounted to US$3 1 million against expenditure of US35 million resulting in a deficit of US$4 million for the year 2006. This deficit had been planned to allow the Institute to hire new scientific staff and invest in new major projects such as the NEPAD sponsored Biosciences eastern and central Africa (BecA) research platform. The Institute’s undesigna*xd 1 net assets at the end of 2006 amount to US14 million (total net assets U S 2 6 million) with liquidity and operational reserve levels above the CGIAR recommended ranges. This situation allows ILRI to adopt a more forward-looking perspective in terms of financial and budget matters. On behalf of the Members of the Board I thank our investors and partners for their confidence and continued support 5 ILRI BOARD STATEMENT ON RISK MANAGEMENT ON THE FMANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 The ILN Board of Trustees is responsible for ensuring that the institute has an appropriate risk management system in place to identify, assess, manage and monitor risks faced by the Centre in achieving its objectives. ILRI faces risks as dynamic as the environment'in which ILRI operates. The risks include threats to ILRI's reputation, operations, stakeholders and finances. ILRI has had a risk management policy and strategy in place since 2004. ne' ILRI policy and practice of risk management conforms with the CGIAR principles and guidelines adopted by all CGIAR Centres. The institute manages risk by ensuring that appropriate inhstructure, controls, systems and people are in place throughout the organisation. The key practices LRI has taken up to manage risks include regular ~vironmentaslc ans, integrated planning systems, policies and clear accountabilities, use of tiansaction approval fiameworks, adequate research, financial and management reporting systems and monitoring individual performance and business processes across key areas. The effectiveness of LRI's risk management policy, strategy and implementation has. been assessed by the CGIAR's Internal Audit Unit, which is independent of ILIU business units. The ILIU Board of . Trustees reviews both the risk management system as well as major risks at each of its meetings. The Board of Trustees has reviewed ILRI's risk management policy and strategy and% satisfied that it was implemented effectively during 2006. < Board Chair: ...... .. 6 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT OF MANAGEMENT’S RESPONSIBILITIES ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 The accompanying financial statements of the International Livestock Research Institute are the responsibility of management. They have been prepared following accounting policies and practices that conform to the CGIAR Financial Guideline Series No 2 -..Accounting Policies & Reporting Practices Manual and supported by reasonable and prudent judgements-and-e stimates. The management is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the institute and of its results of activities. The management m h e r accepts responsibility for the maintenance of adequate systems of internal control including on financial .reporting and accounting control designed to provide reasonable assurance that assets.a re safeguarded and transactions are properly recorded and executed in accordance with the institute’s policies and procedures. The Board of Trustees exercises its responsibility for these financial statements through its Finance and Audit Committee. The Committees meet regularly with management, internal auditors and external auditors to review matters relating to financial reporting, internal control, and,auditing. Signed on behalf of Management by: / f l..f.......i.....f......i..... ...... Brigitte Laude Director of Human Resources, Finance and Administration 7 I Certified Public Accountan& B Phone: + 254 20 2715300 Kenya-& Towers, Upperhill Fax: + 254 20 2316271 Oil Ragaii Road E-mail: inlo@ey.cc.te P.0.& Ix 44206 Website: vr\hiv.ry.com'easiernafrica OOll l l l Nairobi GPO Kenya REPORT OF THE INDEPENDENT AUDITORS TO THE BOARD OF TRUSTEES OF INTERNATIONAL LIVESTOCK RESEARCH RJSTITUTE We have audited the financial statements on pages 9 to 24 for the year ended 31 December 2006 and have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND THE INDEPENDENT AUDITORS As stated on page 7, the management are responsible for the preparation of financial statements which . give a true and fkir View of the state of &airs of the iDstiMe and of the results of its activities for the year. Our responsibility is to express an independent opinion on the financial statements based on our audit and to report our opiniun to YOR BASIS OF OPINION We conducted our audit in accordance with International Standards on Auditing Those standards require that we plan and perfom the audit to obtain reasonable assurance that the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosmes in the fjnancial statements. It also includes assessing the accoUnting principles used and significant estimates made by the management, as well as evaluating the overall P- 'onW e believe that our audit provides a reasonable basis for our opinion. OPINION In our opinion, proper books of account have been kept and the financial statements, which are in agreement therewith, give a true and fair view of the state of the financial affairs of the institute as at 31 December 2006 and of the results of its activities for the year then ended in conformity with the requirements of the CGIAR Financial Guideline Series No 2 - Accounting Policies & Reporting Practices Manual (Mph 2004). Nairobi 3..-.t .... .\.. +__._.&. .. ... . .. 2007 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT OF FINANCIAL POSITION 3 1 DECEMBER 2006 ASSETS Note 2006 2005 US$ ‘000 US$ ‘000 Current Assets Cash and cash equivalents 3 23,344 . - 23,524 Accounts receivable & advances - . . Donors - net 4 BecA 68 1 SLP Others 3,704 5,580 Advances to partners 724 102 Other CG centres 5 394 134 Employees including project advances 565 329 Others 6 669 87 3 Inventories - net 7 849 650 Prepaid expenses 405 404 Total Current Assets 30.654 32.277 Non Current Assets Intangible Assets - net 8 I 1 26 hoperty and equipment - net 9 10,471 11,516 Investment in subsidiary . 10 1.816 1.816 Total Non-Current Assets 12.298 13.358 TOTAL ASSETS 42.952 .45.635 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Donors-net BecA SLP 1 1 2,064 1,276 Others 1 1 6,665 6,816 Other CG centres 12 416 364 Employees 13 1,354 1,789 Others 14 1,014 940 Accruals 15 1-751 I .793 Total Current Liabilities 13,264 12.978 Non Current Liabilities Accounts payable - Employees 13 3.167 1.913 Total Liabilities 16.43 1 14.891 Net Assets Unrestricted - Undesignated 16 13,641 16,804 - Designated 16 12.880 13.940 Total Net Assets 26.521 30.744 TOTAL LIABILITIES AND NET ASSETS The financial statemen p oved by the Board of Trustees on .. . =>-...March 2007. /-,. --- Certified by: ...... Carlos ere Brigitte Laude Dire9 or General Director of Human Resources, Finance and Administration 9 MTERNATIONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2006 Note Unrest i cted Restricted 2006 2005 Revenue and Gains Temporary US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 Grant Revenue (Exhibit I, I1 & 111) BecA 17 - 81 81 2,024 SLP - 252 252 593 Others 13,438 13,508 26,946 29,211 Other revenue and gains 18 3.906 3.906 2.497 Total revenue and gains 17,344 13,841 31,185 34,325 Expenses and Losses Program related expenses BecA 19 645 81 726 2,024 SLP 252 252 593 Others 1 1,560 13,508 25,068 23,012 Management and general expenses 20 10,206 10,206 7,68 1 Other losses and expenses 21 40 40 359 Sub total expenses and losses 22,451 13,841 36,292 33,669 Indirect cost recovery 22 (884) - (884) (1.21 1) Total expenses and losses 2 1,567 13,841 35,408 32,458 Net (Deficit)/ Surplus (4,223) (-1 (4,223) 1,867 Expenses by Natural Classification Personnel costs 23 1’1,427 5,498 16,925 15,361 Collabomtors/PartnershipC osts 50 2,134 2,184 2,829 Supplies and Services 6,359 5,103 1 1,462 10,746 Operational Travel 1,094 1,106 2,200 1,865 Depreciation 2,637 -- 2.637 1.657 Total 21.567 13.841 35.408 32.458 Management and general expenses are stated after deduction of non-third party income fiom the canteen, hostel and other income generating activities operated by the Institute. IO MTERNATlONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 3 1 DECEMBER 2006 Notes Undesignated Designated Total US$ ‘000 US$ ‘000 US$ ‘000 Balance at 1 January 2005 15,439 - . . . 14,599 30,038 Prior year adjustment 24 11.161) -- J1.1611 Restated balance 14,278 14,599 28,877 Net changes in investmentk Fixed 659 (659) - Assets Net Surplus for 2005 1,867 - 1.867 Balance as at 3 1 December 2005 16.804 13 .940 30,744 As previously stated as 1 January 2006 18,163 13,940 32,103 Prior year adjustment 24 11.359) -- I1.3591 As restated 16,804 13,940 30,744 Net changes in investment in Fixed 16 1,060 ( 1,060) - Assets Net result for 2006 (4,223) - (4,223) Balance as at 3 1 December 2006 16 13.64 1 12.880 26.52 I The designated net assets represent that part of net assets that has been set aside by the Board of Trustees for specific purposes, such as a reserve for the future acquisition and replacement of property and equipments, while undesignated net assets represent that part of net assets that is not set aside for any specific purpose. I 1 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 Note US$ ‘000 US$ ‘000 CASH FLOWS FROM OPERATING ACTIVITES Change in net assets Adjustments to reconcile change in net assets to net cash generated fiom operating activities: Depreciation of property and equipment 2,519 2,152 Amortisation of intangible assets 15 19 Loss/(Gain) on disposal of property and equipment (51) (59) Decrease I (increase) in assets: Accounts receivable Donors Employees Others lnventories Prepaid expenses Increase/(decrease) in liabilities: Accounts payable Donors 63 7 (3,112) Employees 819 538 Others 126 (495) Accruals 0 (112) Net cash generated fiom operating activities 1.243 -346 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment Acquisition of intangible assets Proceeds of disposal of property and equipment Net cash used in investing activities NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS At the beginning of the year 23.524 24.635 At the end of the year 3 23.344 23.524 12 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 DECEMBER 2006 1 CREATION AND STATUS OF THE INSTITUTE The International Livestock Research Institute (ILRI) was created as an international organisation by an agreement dated 21 September 1994 signed in Beme, Switzerland, by the governments of Switzerland, Denmark, Sweden, Kenya..pd Ethiopia and the United Nations Environmental Programme. On 1 January 1995, all the activities,-assets, liabilities and fund balances of the International Laboratory for Research on Animal Diseases (ILRAD) based in Nairobi, Kenya, and the International Livestock Centre for M i c a (ILCA) based in Addis Ababa, Ethiopia, were transferred to ILRI. ILRl operates under agreements entered into with the govemments of the respective host countries (Kenya and Ethiopia). Under these agreements, ILRI and its assets are not subject to any direct or indirect taxation. 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies applied in the preparation of these financial statements are consistent with the Consultative Group on International Agricultural Research (CGIAR)f inancial guideline series No. 2 - Accounting Policies & Reporting Practices Manual (March 2004). These policies are summarised below. (a) . Accounting convention The financial statements are prepared under the historical cost convention and on accrual basis. @) Revenue recognition i) Grants represent support with donor-imposed conditions and could be restricted or unrestricted. Unrestricted grants are grants received which the institute may Ereely use for its mandated activities. Restricted grants are received in support of specified projects or activities mutually agreed upon between the centre and the donors. ii) Restricted grants are recognised as revenue upon the fulfilment of donor-imposed conditions. iii) Unrestricted grants are recognized upon receipt of confirmed commitment. iv) Program funds are funds provided by donors that need to be used on a certain research theme,activity or region. They are treated as restricted grants. v) Other revenues and gains are recognised as they are earned. (c) Currency translation The Institute’s financial statements are presented in United States Dollars (US$). Transactions and balances expressed in currencies other than the US dollar are treated as follows:- (i) Non US dollar grants and donations received in the year are converted to US dollars at the rates of exchange being used on the dates of receipt. Non US dollar grants and donations pledged for the year but not received by the year-end are recognised in the financial statements at the rates of exchange prevailing at the year-end except for forward contracts. 13 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 2. SIGNIFICANT ACCOUNTING POLICIES (continued) Non US dollar denominated expenditures are recorded at the prevailing rates of exchange for the month in which they are incurredandare accumulated in US dollars. Assets and liabilities that are denominated in currencies other than the US dollar are restated into US dollars at the rates of exchange prevailing at the year-end. Gains and losses arising fiom changes in exchange rates are charged or credited to the statement.of activities in the year in which they arise. Cash and Cash equivalents Cash equivalents are short term, highly liquid investments that are both (a) readily convertible to known amounts of cash and (b) so near maturity date that they present insignificant risk of changes in value. Accounts receivable Accounts receivable from donors, employees and other entities are carried at anticipated realisable .value. An allowance is made for doubtful receivables based on a review of all outstanding amounts at the year-end. Bad debts are written off during the year in which they are identified. The write off of receivables is done after all.efforts to collect have been exhausted. Property and equipment Property and equipment whose full cost exceed $1,000 and which ILRl can. use in the production or supply of goods or services or for administrative services for more than one year are capitalized and stated at acquisition cost less accumulated depreciation and accumulated impairment losses. Acquisition cost includes the direct purchase price and incidental costs such as fireight, insurance, installation and handling charges. Subsequent materia1 expenditure that extends the useful life or enhances the operating efficiency of an item of property and equipment is capitalised. The cost of normal repairs and maintenance of existing property and equipment is treated as operating expenses. Construction work-in-progress is capitalised as work progresses but depreciation starts only when the work is completed and the facility is put into use. All immovable assets canied on leasehold land donated by host countries constructed have been capitalised as assets of the Institute. ILRJ has the right to negotiate for extension of leases under the host country agreements upon the expiry of the current leases. In accordance with the host country agreements, in the event that the host country agreement is terminated or the host country does not renew a lease upon expiry, all immovable assets will be disposed of by the CGIAR (in consultation with Government of Ethiopia in Ethiopia). Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are accounted for in the Statement of Activities. 14 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL. STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2006 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (g) Depreciation & Amortization Depreciation is calculated on the straight-line basis at annual rates estimated to write off the cost of each item of property and equipment over the estimated term of its useful life. The annual rates used are: Buildings and land improvements 3% (33 years) Laboratory and scientific equipment 10% - 15 YO( 7 - 10 years) on an item basis Computers 33.33%(3 years) Office and household furniture and equipment 20% (5 years) Farm equipment 10% (1 0 years) Motor vehicles 20% (5 years) Software 33.33% (3 years) Depreciation of acquired assets start in the month the assets are placed in operation and continue until the assets has been fully depreciated or its use discontinued. Risperty and equipment acquired using project-restricted funds are fully depreciated when they are’placedi n operation under the specific benefiting projects. Depreciation charge is time-apportioned in the year of disposal of items of property and equipment. (h) Intangible assets Intangible assets of the Institute comprise acquired computer software. The cost of acquisition and installation of computer software is capitalised and amortised over the estimated useful life of the software, usually three years. (i) Asset impairment losses The carrying values of property and equipment, including intangible assets, are reviewed annually and adjusted for impairment losses where it is considered necessary. (j) Investment in subsidiary The investment in Kapiti Plains Estate Limited, a wholly owned subsidiary, is stated at cost. Consolidated financial statements are not prepared as, in the opinion of the Institute’s management; consolidated financial statements would be of no real value to the Board of Trustees in view of the insignificance of the subsidiary’s income and expenses. 15 MTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 2. SIGNIFICANT ACCOUNTING POLICIES (continued) Inventories Cost is calculated on the weighted average basis &d indudes purchase price, fieight and other incidental costs. The determination of obsolescence or expiration is based on the lower of the manufacturer’s recommendations and documented experience and knowledge of management. Excess inventory is written down wholly as soon as it is identified and the exact level of excess is determined. Staff retirement benefits The Institute’s contributions are maintained as a defined contribution plan for all categories of staff. Net assets Net assets represent the residual interest in the Institute’s assets remaining after liabilities have been deducted. All of the Institute’s net assets are unrestricted. 2006 2005 us$’ooo US$’OOO 3. CASH AND CERTIFlCATES OF DEPOSIT Institute’s cash and cash equivalents 14,703 16,408 Restricted donor advances 8,593 7,085 Interest receivable 48 -31 Total cash and cash equivalents 23.344 23.524 Comprising: Certificates of deposit 18,976 20,077 Bank balance 4,273 3,430 Cash in hand & cash in transit 95 17 23.344 2u.B 4. ACCOUNTS RECEIVABLE - DONORS Unrestricted 888 1,336 Program restricted 0 1,809 Project restricted 3.405 3.797 4,293 6,942 Less: Allowance for doubtful accounts (589) (68 1) xZ&l L2a 16 INTERNATIONAL LNESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 US%'OOO US$'OOO 5. ACCOUNTS RECEIVABLE -OTHER CG CENTRES CIFOR 2 CIMMYT 19 - CIP 55 35 I C W 126 49 ICRISAT 59 7 IFPRI 9 IITA 61 27 JRRl 18 13 IWMI 39 - - IPGRI - 2 ICARDA 1 Secretariat 6 6. ACCOUNTS RECEIVABLE & ADVANCES-OTHERS Due fiom subsidiary 342 318 MARC for IRS salaries 23 57 Consultants and Trainees 92 67 OtherS 297 544 754 986 Less: Allowance for doubtful accounts 0 (1 13) _669 873 7. INVENTORIES Engineering and maintenance parts 539 5 14 Laboratory and chemical supplies 262 283 Printing supplies 0 1 Ofice and other supplies 263 252 Livestock and feedstuff 143 14 1,207 1,064 Less: Allowance for obsolescence (358) (414) 849 650 17 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 2006 2005 US$'OOO US$'OOO 8. INTANGIBLE ASSETS - COMPUTER SOFTWARE COST At 1 January 47 1- 470 Additions 2 Transfers - - Other 0 At 31 December -43 8 -472 ACCUMULATED AMORTISATION At 1 January 445 427 Charge for the year 15 . 19 Other 0 - At 31 December 427 446 NET BOOK VALUE At 31 December 11 26 9. PROPERTY AND EQUIPMENT Balance at ~nresmtce d Restricted Other Balance at 01 /O 1/06 Additions Additions Disposals Movements 3 111 2/2006 uss '000 US$ '000 uss '000 us.$ '000 u s ' 000 uss '000 COST Physical facilities, infrastructure and leasehold improvements 27,645 216 Furnishings and equipment (Exhibit 4) 2 1,904 1,064 303 Construction work in progress 75 247 49,624 1,527 303 ACCUMULATED DEPRECIATION Physical facilities, infrastructure and leasehold improvements 17,674 850 (2) 1,108 19,630 Furnishings and equipment (Exhibit 4) 20,434 664 303 (1.876) ( 103) 19,422 -- 38,108 1,514 303 (1,878) 1,005 39,052 -- NET BOOK VALUE Physical facilities, infrastructure and leasehold improvements 9,971 (634) Furnishings and equipment (Exhibit 4) 1.470 400 Construction work in progress 75 247 11,516 13 ' 18 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 Fully dareciated assets At 31 December 2006, equipment with a cost of US$19,619,192( 2005 - US$ 18,949,655)w ere hlly depreciated. The additional depreciation charge in 2005 on these items would have been US$ 3,290,418 (2005 -US$ 2,799,657). - . .. Assets in custody At 31 December 2006, property and equipment with a cumulative cost of US$ 302,447 (2005 - US$ 631,413), which were acquired using project-restricted funds, have been fully depreciated upon purchase in conformity with the CGIAR Financial Guidelines. These assets were still in the Institute’s use as at that date. Write-off The high depreciation charge in 2006 is due to an adjustment of $1,108,675 to rectify a difference between the assets register and the general ledger. This difference arose at the point of installation of the fixed assets register. 10. INVESTMENT IN SUBSIDIARY This represents the cost of investment in Kapiti Plains Estate Limited, a ranch that was acquired for the purposes of securing adequate supplies of disease-he livestock to the Institute. The subsidiary’s loss before taxation for the year ended 31 December 2006 amounted to US$ 88,561 (2005: profit before taxation of US$ 68,571) while its nets assets amounted to.US$ 2,899,728 (2005: US$ 2,826,431). The financial statements of Kapiti Plains Estate Limited are prepared in Kenyan Shillings. This currency has appreciated against the US Dollar in 2006. . Consolidated financial statements are not prepared as, in the opinion of the Institute’s management consolidated financial statements would be of no real value to the Board of Trustees in view of the insignificance of the subsidiary’s income and expenses. 2006 2005 US$’0 00 US$ ,0 00 11. ACCOUNTS PAYABLE - DONORS Unrestricted ’ 548 1,007 Programme Restricted 2,569 1,275 Project restricted 5,612 5,810 8.729 8.092 19 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2006 12. ACCOUNTS PAYABLE -OTHER CG CENTRES 2006 2005 US$'OOO US$'OOO CIAT 185 CIMMYT 18 - ICRAF 48 19 ICRISAT 112 118 IFPRI 1 49 IITA 30 142 IWMI 22 36 416 13. ACCOUNTS PAYABLE -EMPLOYEES Balance at beginning of the year 3,702 1,744 Provision during the year 819 1,958 Disbursements during the year Balance at end of the year Comprising: Staff personal accounts 307 37 5 Provision for severance benefits 1,99 1 1,359 Provision for repatriation costs . 1,477 1,147 Provision for accrued leave 746 82 1 Balance at end of the year 4321 3,702 Less: amount payable within one year I1.789) Amount payable after one year 14. ACCOUNTS PAYABLE - OTHERS Due to suppliers 536 437 Consultants & trainees 72 - Sundry payables 406 502 Funds-in-trust 1 1.014 940 20 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL. STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 200 2006 2005 us$’ooo US$ ’000 15. ACCRUALS . - .-. . Project expenses and commitments 864 1,225 General supplies and services 887 568 1.751 1.793 16. NETASSETS Undesignated Designated Total US%‘ 000 US$ ‘000 US$ ‘000 Balance at 1 January 2006(Restated) 16,804 13,940 30,744 Depreciation charge for the year 1,514 (1,514) - Amortisation for the year 15 (15) - Acquisition of property equipment (1,527) 1,527 - Acquisition of intangible assets - - Other Movements I .OS8 I1 .OS81 - Total 1,060 (1,060) - Changes in net asset during the year (4.223) (4.223) Balance as 3 1 December 2006 13.641 12.880 26.521 17. GRANT REVENUE (Exhibits 1,2 and 3) Advance Donor Total Donor Advance donations receivable receipts 2006 receivables Adjustmenls donations Revenue Revenue 1/1/06 s 1/1/06 US$ ‘000 31/12/06 2006 31/12/06 for 2006 for 2005 uss ‘000 uss ‘000 uss ‘000 US% ‘000 uss ‘000 uss ‘000 uss ‘000 Unrestricted 1,007 (1,336) 13,427 888 (548) 13,438 14,822 . Program 1,364 (1,810) 4,009 restricted Project 5,721 -13.019 3.405 -133 (5.61 2) 12,869 14.098 restricted A.222 21 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL. STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 2006 2005 us$'ooo us$'ooo 18. OTHER REVENUE AND SUPPORT Interest income ... .. - 948 584 Rent income 687 68 1 Catering income 299 202 Gain on disposal of equipment 95 60 Service income 1,466 970 Foreign exchange gains - net: -Realised -Unrealised Service income is fiom services rendered by the laboratory, administrative units to external entities other than rental of facilities and catering income. 19. PROGRAM RELATED EXPENSES Personnel costs (note 21) 12,318 10,853 . CollaboratordPartnershipc osts 2,184 2,829 Supplies and services 9,105 9,694 Operatio~Tl ravel 1,862 1,560 Depreciation & Amortization 577 693 26.046 25.629 20. MANAGEMENT AND GENERAL EXPENSES Personnel costs (note 21) 4,607 4,508 CoIlaboratordPartndp costs - - Supplies and services 3,20 1 . 1,904 Operational Travel 338 305 Depreciation & Amortization 2.060 964 10.206 z68L 21. OTHER EXPENSES AND LOSSES Bank charges 40 39 Foreign exchange loss-net: -Realised - 121 -Unrealised -- 199 22. INDIRECT COSTS RECOVERY Indirect costs recovery represents the portion of project restricted income allocated by donors through the grant agreements to support general institutional overhead costs. The recoveries supplement the Institute's unrestricted funding 22 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 2006 2005 US$ ‘000 US$ ‘000 23. PERSONNEL COSTS Management and general operations Salaries and allowances 3,447 3,463 Pension contributions 427 428 Medical and life insurance 289 32 1 Relocation and leave expenses 366 287 Other personnel costs 78 9 4.607 4.508 Program related activities Salaries and allowances 9,258 8,445 Pension contributions 1,097 968 Medical and life insurance 707 586 Relocation and leave expenses 1,211 663 Other personnel costs 45 191 12,318 10,853 Total personnel costs 16.925 15.361 The average number of staff during the year was 740 (2005 - 73 1). 24. PRIOR YEAR ADJUSTMENT The prior year adjustment relates to provision for severance benefits for Nationally Recruited Staff. During the year, the institute adopted a new policy for accruing severance benefits in line with the requirements of the International Accounting Standard No. 19 on Employee Benefits. 25. CONTINGENT LIABILITY Following a tax assessment by the the Kenya Revenue Authority in December 2006, the Institute has been requested to pay US$784,485 (KShs 54,796,335)r elated to income tax on overseas pension contribution for Nationally Recruited Staff (NRS) and stipends for Research Fellows. The Institute’s view is that the assessment contradicts the Host Country Agreement (HCA) signed between the Institute and the Government of Kenya represented by.the Ministry of Foreign Affairs that explicitly exempts the Nationally Recruited Staff or the Institute from paying income tax to overseas pension plans. The Institute is working closely with the Ministry of Foreign Affairs and is of the opinion that this matter will be resolved in accordance with the provisions of the Host Country Agreement and as a result, no provision has been made in the financial statements with regard to the income tax . The case has also been made to the Kenya Revenue Authority that stipends are not taxable and a positive outcome is also expected by the Institute. 23 INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 3 1 DECEMBER 2006 26. COMPARATIVES Where necessary, the comparative figures have been adjusted to conform to changes in presentation in the current year. In particular, the comparatives figures for account receivables, account payables donors, other revenue and support, indirect cost recovery, piofjrihif elated expenses and expenses by natural classification have been adjusted to conform to changes in presentation in the current year. 27. CURRENCY These financial statements are presented in United States Dollar Thousands (US$‘ 000). 24 Donations in advance Receivable Total Receipts Receivable (Advance) Revenue for Revenue for Donor as at 1/1/06 as at 1/1/06 2006 31/12/06 3 111 2/06 2006 2005 Australia - (1 88,625) 188,625 191,250 Canada (934,058) 934,058 1,853,595 China - 89,843 (89,843) 89,84 1 89,841 89,843 Denmark (493,703) 493,703 438,436 Finland 403,905 (403,905) 443,406 443,407 403,905 France (95,645) 95,645' Germany (346,509) 346,509 387,986 Ireland' (920,929) 920,929 852,619 India' 37,500 (75,000) 37,500 37,500 Italy'' (255 ,6 12 ) 255,612 Japan 73,003 (73,003) - I 73,003 Korea (50,000) 50,000 50,000 Netherlands (343,500) (343,500) 687,000 726,027 Norway' - (1,392,847) 1,392,847 1,560,032 Philippines - 3,804, Sweden (463,480) (1,054,764) (547,969) 970,275 1,032,740 Switzerland (823,167) 823,167 828,159 United Kingdom ( 1,462,146) 1,462,146 1,3 18 ,084 USAID' 73 1,250 (3,123,250) 2,392iOOO 2,925,000 World Bank (200,000) (1,300,000) 355,000 - 1,855i,OOO 2,050,000 (1,006,980) 1,335,501 (13,426,506) 888,247 (547,969) 13,438,264 14,821,983 25 SchecIule 0.f: Program Restricted G ra11t R e v e n u e j t~he ):ear c / l i M 5 I l h ~ ~ / , i b.?s/)*Oc i-.( ~ . ' ~ ~ ~ . ~ ~r!t/ozlh~:~c . - ~ ~ : S :Es ' I1 i b.it 3 Donations in Total Exchange Receivable Donations in advance as Receivable receipts and other as at advance as at Revenue for Revenue for Donor Program at 1/1/06 as at 1/1/06 2006 adjustments 31/12/06 3 1/ 12/06 2006 2005 Systemwide Livestock program ( SLP) Canada Programme Funds 830,733 - 376,270 (1,201,856) 5,147 184,408 Switzerland Programme Funds 267,043 - 363,681 (623,115) 7,609 207,400 World bank SLP Coordination 177,933 - 300,000 (238,716) 239,217 201,190 Sub-total, SLP 1,275,709 - 1,039,951 - (2,063,687) 251,973 592,998 Aid to Africa Partnership and Communication 3,500 I - 3,500 - European Community(EC) Improving market opportunities 613,029 616,879 (3,850) 613,029 Biotechnology 976,990 985,075 (8,085) 97 6 ,9 90 Sub-total, EC 1,590,019 1,601,954 (1 1,935) - 1,590,019 France Market opportunities 59,895 7 1,22 1 ( 1 1,326) 59,895 Livestock Health 59,895 71,221 (1 1,326) 59,895 Targeting Research and Development Opportunities 129,488 Sub-total, France 119,790 142,442 (22,652) - - 249,278 Japan Improving Disease Control 100,000 100,000 - I00,000 India' Greenhouse gases 35,000 (35,000) Genetic disease Resistant 25,000 (25,000) Epidemiology 40,000 (40,000) Sub-total, India - - 100,000 (1 00,000) Ireland' Animal Genetic Resources 88,271 101,277 13,352 (72,280) 130,620 375,322 Italy'* Policy analysis for improving productivity and sustainability of crop livestock systems 191,709 - I 191,709 Improving market opportunities 191,709 19 1,709 Sub-total, Italy 383,418 - - 383,418 - Norway' SubSahara Africa Challenge Programme 327,729 (327,729) - USAID' USAID Linkage activities 208,000 (5,970) 202,030 Sub-total, OTHERS 88,271 1,809,809 2,968,320 ' (21,235) (505,979) 719 ,568 2,314,619 TOTAL 1,363,980 1,809,809 4,008,271 (21,23 5) - (2,569,666) 971,541 2,907,617 26 Grant title Start date End date US$ for 2006 for 2005 A.U_ST_R~A _LIA_N ~CE NTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH (ACIAR) Sustainable Endoparasite Control for Small Ruminants in SE Asia Jul-98 Dec-06 849,102 28,739 29,557 Managing the rumen ecosystem to improve utilization of thornless acacias Jan-99 Jan-06 539,333 2,738 1,686 South to South Workshop (NDDB) Jan-Ol Dec-05 16,480 5,409 Trade Liberalisation workshop May-02 Sep-06 17,857 1,388 Development of a knowledge systems for selection of forage for farming systems in the tropics JuI-02 JuI-06 56,85 1 546 29,181 Improving the quality of pearl millet residues for livestock Apr-04 Dec-08 162,420 15,531 10,622 ACIAR Sub-total 1,642,043 48,942 76,455 AFRICAN UNIONIINTER-AFRICAN BUREAU OF ANIMAL RESOURCES (AUABAR) Environment Monitoring and Management Component Jan-01 Dec-06 673,624 2,176 Training Workshops on GIS databases Mar-05 Dec-06 40,452 15,414 FITCA - Ethiopia training May-02 Jun-05 30,943 366 CBPP- PACE Contagious bovine PleuroPnemonia Oct-01 Oct-04 89,734 AUABAR Sub-total ' 834,753 17,590 366 AFRICA DEVELOPMENT BANK ( ADB) Implementation of livestock warning systems ( LEWS) subcomponent SepO5 Sep-09 , 1,923,073 395,554 34,42 1 AsDB Sub-total . 1,923,073 395,554 34,421 ASIAN DEVELOPMENT BANK ( AsDB) Increasing Productivity of crop livestock in Asia-Phase 11 Jan-02 Dec-05 1,000,000 61,127 LAO Livestock Sector Review May-02 Jun-06 26,500 8,900 AsPB Sub-total 1,026,500 ; 8,900 61,127 CENTRE REGIONAL AGFUIYMET Agrhymet-Icrisat Climate Change Fakara subgrant to ILRI through ISC JuI-03 NOV-05 23,191 ' 18,624 Project Climate Change in Tahoua subgrant to ILRI by Agrhymet Mar-04 Nov-05 15,455 . 4,688 AGR Sub-total 38,646 23,312 27 Grant title Start date End date US$ for 2006 for 2005 ASSOCIATION FOR STRENGTHENING AGRICULTURAL RESEARCH IN EASTERN AND CENTRAL AFRICA ( ASARECA) Comprehensive Study of the Dairy Sector of Assam Dec'O5 Feb'O7 221,576 82,524 Comprehensive Study of the Dairy Sector of Assam (Rupee Budget- ICRISAT) Dec'OS Feb'07 1 18,094 107,465 Rationalisation and Harmonization of Dairy policies, regulations and standards Aug-03 Dec-04 1 1,600 I 1,434 Exploiting genetic differences of indigenous East African cattle breeds to enhance vaccination responses Jun-05 May-07 78,360 47,093 Rationalisation and Harmonization of Dairy policies, regulations and standards Mar-05 Dec-06 64,900 47,297 25,676 Support to A-AARNET for CGS Funding Stream Sep-05 Jun-07 787,663 68,114 Provision of Scientific Partnership Services for A-AARNET Mar-05 Jun-07 1,009,278 393,868 190,309 Exploiting Markets for Dairy and Meat Products: Quality and Safety Nov'O5 Jun'07 1 17.844 33.258 ASARECA Sub-total 2,409,315 779,619 227,419 AUSTRIA Indigenous selection criteria and genetic diversity in African longhored cattle Oct-03 Feb-07 853,881 124,461 246,536 AUSTRIA Sub-total 853,881 124,461 246,536 BELGIUM Control of Vector borne diseases in livestock through development of improved vaccines and diagnostic tools Jan-0 1 Dec-06 155.39 1 63,369 Trade offs between poverty alleviation and wildlife conservation Oct-02 Dec-06 1,936,092 497,729 489,163 Dr Jan Naessens Secondment costs (Extension) Jan'06 Dec'O8 460,000 123,057 117,558 Belgium Sub-total 2,551,483 620,786 ,670,090 BioEARN EAST AFRICA Joint appointment of Dr J Hanson Jan-02 Dec-05 3 12,654 6.002 Healing Wounds Oct-05 Dec-06 9,000 2,408 5,592 Bioversity Sub-total 321,654 2,408 11,594 BHUTAN Bhutanese Sheep Genotyping Jan-03 Dec-05 6,000 3,024 Bhutan Sub-total 6,000 - 3,024 CAB1 INTERNATIONAL CAB1 Workshop May-04 May-05 3,000 I.6_ 5- CAB1 Workshop Nov-05 Dec-05 4,700 4,700 CAB1 Sub-total 7,700 4,865 28 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 CAPITAL OF LIVESTOCK PROGRAMME EXPERIENCES IN INDIA ( CALPI) Capitalisation on livestock programme experiences India(CALP1) Study on traditional milk markets in India Apr-05 Feb-06 29,322 1 1,076 3,616 CALPI Sub-total 29,322 11,076 3,616 ~ ~~ CARE Economic Analysis of data set SPO Jan-02 Feb-05 8,000 162 CARE Sub-total 8,000 - 162 CANADIAN FOOD INSPECTION AGENCY Controlling foot and mouth disease (FMD) in endemic settings; a technology road map workshop Nov-06 Dec-06 10,000 5,274 CFA Sub-total 10,000 5,274 - COMMON FUND FOR COMMODITIES ( CFC) Enhancing Beef Productivity, Quality, Safety and Trade in Central Africa Jan-02 Dec-06 3,247,873 6 I 1.399 740,179 CFC Sub-total 3,247,873 61 1,399 740,179 CONSULTATIVE GROUP ON INTERNATIONAL AGRICULTURAL RESEARCH ( CGIAR) FAR Capacity building fellowship Jul-03 Dec-06 20,000 7,260 Improving food security through community-based selection and development of Jul-03 Dec-06 10,000 4,O IO Improving food security through community based selection &development Jan-05 Dec-06 10,000 6,188 958 SDP Award Jan-05 Dec-05 10,000 3,576 6,424 Enterprise Security and Business Continuity (ESBC) - workshop Dec-05 Dec-06 49,000 57,089 ILRUICRAF Alignment Support Dec-06 Dec-09 944,500 85 1 Eastern and Central Africa Medium Term Plan Jun-05 Dec-06 197,000 102,056 88, I 78 CGIAR Sub-total 1,240,500 177,020 99,570 CHINA ( CHN) Molecular characterization of the genetic diversity of the chicken major Jan-05 Dec-06 40,Oab 40.000 CHN Sub-total 40,000 - 40,000 INTERNATIONAL CENTER FOR TROPICAL AGRICULTURE (CIATI Strategy for mainstreaming gender sensitive research in ILRI Dec-05 Dec-06 10,000 9,032 CIAT Sub-total 10,000 9,032 CANADA (CIDA) Interchange Canada Jan-04 Jun-06 390,000 52,587 124,858 Centre for excellence in biosciences for Africa ( BecA) Apr-04 Mar-06 3,660,118 80,728 2,023,608 Improvement of productivity and market success of Ethiopian farmers( IPMS) Apr-04 Mar-IO 15,853,659 1,717,144 1,405,407 CIDA Sub-total 19,903,777 1,850,459 3,553,873 29 Grant Expenditure/ Expenditure1 amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 COMART FOUNDATION ( CMF) Ghibe valley community-managed sustainable credit options animal health impact Jan-04 Dec-06 243,195 43,659 7,950 COMART Sub-total 243,195 43,659 7,950 COLORADO STATE UNIVERSITY (CSU) CRSP funds for Integrated modelling and assessment of Balancing Food Security, Conservation and Ecosystem Integrity Jan-01 Sep-06 140,000 1,664 Data collection Analysis and publication of research on the complexity framework and analysis Jan-04 Sep-06 48,000 16,840 27,300 PRIMES Fellowship support for Joe Ogutu Feb-06 May-06 14,750 14,750 CSU Sub-total 202,750 31,590 28,964 CORNELL UNIVERSITY Pastoralism and Poverty Reduction in East Africa: A Policy Research Conference Aug-06 Oct-06 25,000 25,000 Cornell Univ. Sub-total 25,000 25,000 COOPERAZIONE INTERNATIONALE ( COOPr) Drought response program in Arid lands of Kenya Oct-04 Marl06 72,855 3,485 57,632 COOP1 Sub-total 72,855 3,485 57,632 CENTRE TECHNIQUE DE COOPERATION ACRlCOLE ET RURALE (CTA) Co Seminar on sustainable crop livestock production for improved livelihoods and natural resource management in WA lul-0 I Dec-05 38,095 28,5 I I Fellowship for the fourth all Africa conference on animal agriculture May-05 Nov-OS 19,032 14,098 CTA Siib-total 57,127 42,609 CENTER FOR TROPICAL VETERINARY MEDICINE - UNIVERSITY OF EDINBURGH ( CTVM) CTVM Collaboration Jan-OS Dec-06 5,616 4,814 1,150 CTV Sub-total 5,616 4,814 1,150 DANISH INTERNATIONAL DEVELOPMENT AGENCY( DANIDA) Examining Efficiency production under intensification of SHD in Uganda Jan-0 I Apr-06 594,308 49,219 120,609 Integrated Crop Livestock production in West Africa Jan-01 Dec-06 378,3 13 3,579 6 1,543 DANIDA Seconded scientist Jan-04 Mar-06 274,856 27,780 1 19,465 Bangladesh Fodder for Dairy Project Jan-06 Dec-06 5,448 I 1,063 Danida Sub-total 1,252,925 91,641 301,617 30 Grant Expenditurel Expenditurel amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 DEPARTMENT FOR INTERNATIONAL DEVELOPMENT @FID), UK Assessment of diversity of the Genetic Resources in Goat & Sheep in SSA Apr-98 Mar-05 159.73 I 1 1,599 R & D support to SHD sector in Kenya Jun-97 Apr-07 199,913 Development of seasonal nutritional & resource management strategies for SD systems Apr-00 Mar-06 64,02 1 17,123 568 CPP - Maize and Fodder Apr-01 Mar-05 1 18,993 482 Feed strategies Jan-01 Dec-05 1,078 Manure Management - Collection storage abd compositing strategies to enhance organic fertilizer quality Jan-99 Dec-05 263,004 9,242 2,356 Mapping Poverty and Livestock Jan-Ol Dee05 98,673 1,559 ECF Vaccines Jan-06 Dec-06 214,036 2 14,036 Development of FFS methodology for Small Holder Dairy Apr-0 1 Mar-05 428,768 94,026 Diagnostic of endoparasitic diseases Sleeping sickness - yearly 2,306 Uganda Apr-00 Dec-05 13,433 47,387 Farmers perceptions yearly 547 Epidemiological and Economic Evaluation of Cross Border Disease Control in Southern Africa ‘(FMD) Sep-0 1 Apr-05 70,813 584 Design of vaccination programme Jan-02 Oct-05 15,326 95 Demand and supply side changes in the livestock sector 908 Vector Genomics - Welburn Jan-02 Dec-06 14,412 18 LPP Priority Country poverty mapping Sep-02 Mar-06 90,000 3,637 37,466 Enhancing Livelihood of poor Livestock Keepers through Increasing use of Fodder Oct-02 Dec-06 2,122,347 490,578 807,421 Evaluation of costs and benefits of foot and mouth diseases in southern Africa Jan-04 Feb-05 25,379 4,322 Improving food security through community based management of typanotolerant cattle in Aug-04 Aug-05 14,324 3,503 Katie Downie - GF Costs yearly .- 5,763 Development of a Dairy Toolbox Oct-03 Mar-06 195,695 35,597 75,060 Evaluation of effects of plant diseases on the yield and nutritive value of crop residues dairy production on the Deccan Plateau in India Apr-04 Jan-06 26,696 1 1,479 6,104 Global Alliance for Livestock Vaccines ( GALV) - Phase 1 NOV-04 Dec-06 572,328 9,375 403,l 17 Process and Partnership for pro-poor policy change Dec-04 JuI-06 240,223 53,967 I3 1.053 Assess Priority Animal Health Constraints to poverty alleviation Feb-05 Mar-06 209,85 9 13,540 29,199 Assessing the burden of cyticercosis, with relevance to both human health and livestock production economics, on smallholder communities in western Kenya Jun-05 Mar-06 36,000 26,236 8,922 Mapping Climate vulnerability and poverty in Africa JuI-05 Jan-06 176,022 I I8,46 1 47,43 I Ghibe Valley Project Phase 2 - Community based management of Trypanotolerant NOV-05 Nov-06 15,439 8,096 Development of a rapid and simple serological test for surveys of human infective trypanosome in the livestock and animal reservoir Jan-06 Dec-06 38,595 35,373 DFID Sub-total 5,224,117 1,046,758 1,922,769 31 Grant Expenditure.' Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 Stichting Dienst Landbouwkundig Onderzoek @LO) Title Refresher course Aug-05 Dec-05 30,216 20,360 DLO Sub-total 30,216 20,360 DESERT MARGIN PROGRAMMEETF ( DMP) Desertification project in West Africa Feb-02 Dec-06 50,000 18,772 DMP Sub-total 50,000 18,772 EISELEEN FOUNDATION Conference on Role Biotechnology in animal agriculture to address poverty in Africa: opportunities and challenges Mar-05 Nov-05 12,600 12,106 EIS, Sub-total 12,600 - 12,106 EUROPEAN DEVELOPMENT FUND ( EDF) Epidemiology and Disease Control Apr-00 Apr-05 482,404 3 1,440 EUlASARECA Networks May-04 Jun-07 1,223,010 3,197 184,481 EU/ASARECA Networks Feb-04 Mar-OS 107,143 76,385 EDF Sub-total 1,812,557 3,197 292,306 EMPRESA BRASILEIRIA DE PESQUISA AGROPECUARIA (EMBRAPA) Funding for specialized consultancy services and training for technicians from Brazil Agricultural Research System Jan-04 Dec-06 19,036 4,840 EMBRAPA Sub-total 19,036 4,840 INIA, SPAIN Development of new diagnostic assays and epidemiological surveillance of viral pathogens of livestock in Sub-saharan Africa Jan-04 Mar-07 600,OdO 3 10,605 1 15,227 INIA- Spain Sub-total 600,000 310,605 115 ,227 1 Ethiopian Agricultural Research Organization Graduate fellows support - Tesfaye Alemu Jul-02 Dee05 24,460 8,005 Evaluation of the meat production potential of some Ethiopian goat breeds under different nutritional management (Graduate fellows support - Ameha Sebsibe) Sep-03 Aug-05 10,184 3,549 Agricultural biotechnology 366 Graduate fellow support - Abebe Mekoya 18,083 ETH Sub-total 34,644 366 29,637 FARM AFRICA Assessment of the genetic diversity in Ethiopian Goat populations Feb-04 Mar-05 13,511 7,694 FAA Sub-total 13,511 7,694 32 Schedule of :Pc.ojec.f:. Rcstrkkd C; raat Revenue,f br 1Jw -yerrr endd 31 .L)ecei/tbc.r2 !)!/ii-.C!ii.i.~!12(~h~l-1:-rlai;:Ss .Exhibit 3 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 F_ OO_ D A~ ND AGRICULTURAL ORGANIZATION OF THE UNITED NATIONS ( FAO) Farm Power and Implements for Sustainable Livelihoods - Workshops Oct-0 1 Feb-OS 40,000 1,318 FA0 MZB Biodiversity Jun-02 Dec-06 13,000 7, I66 3,881 Pathways out of poverty Jun-03 Dec-05 50,000 1,380 Study of effects and influence of international and national dairy sector development and livelihood opportunities Apr-07 Dec-05 57,694 2 1,850 Support of an evaluation on the impact of WTO rules and SPS regulations on different strata of livestock producers and poor consumers Oct-04 Dec-OS 95,800 196 Development of a common methodology and guidelines to be applied in applieation of a rapid assessment by the five Post Harvest Food Losses National consultants Feb-04 Dec-06 9,792 8,850 863 Pathways into and out of poverty in Peru Aug-04 Jun-06 40,000 1,963 21,287 Contract farming in pig production in Northern Vietnam to promote the equitable intensification of smallholder market-oriented livestock production JuI-05 Mar-07 99,856 3 1,059 32,058 Fellowship award for training of molecular genetics for Africa Naqvi Sep-05 NOV-05 13,740 13,741 GEF Medium sized project " Novel form of livestock and wildlife integration adjacent to protected areas in Africa - Tanzania" Sep-OS Sep-07 70,000 22,007 FA0 Workshop on Future of Livestock Sector in Developing Countries to 2030 Feb'06 Ju1'06 1 1,300 1 1.288 Assessing the Contribution of Livestock to the Livelihoods of Households and Communities in selected SADC member countries (Lesotho, Malawi & Zambia) Mar-06 Sep-06 78,000 78,000 Developing global, one Kilometre resolution GIS maps of livestock production systems Nov'O6 OCt'07 40,000 FA0 Sub-total 619,182 160,333 96,574 FOUNDATION FOR ADVANCE STUDIES ON INTERNATIONAL DEVELOPMENT ( FASID) Research on poverty, Environment and Agricultural Technologies (REPEAT) Mar-04 Dec-06 121,510 975 800 Community & Household level Studies in Ethiopia Jan'06 Marl06 20,468 20,468 FASID Sub-total 141,978 21,443 800 FRANCE Congo Pain yearly 1.009 Research on Paludism & other associated transmissible diseases in the developing countries JuI-01 Jun-06 56,420 6,048 8,2 16 France Sub-total 56,420 6,048 9,225 GATSBY FOUNDATION Gatsby Bioscience Wkshop Jun-05 JuI-06 6,220 19,252 Generation Challenge Fellowship 2006 (S. Trushar) Jul-06 Jun-07 150,000 5,669 Gatsby Sub-total 150,000 11,889 19,252 33 Scherlule of :Project 'Restricted Grant I i~en lw, i i ,zrhe Yeirr endd l; I .Dsc:e?rJibt:.r2 ii!i!i-.(.''!ii.l..c./~clv-.IhSh i h x .E.siiil>if3 Grant Expenditure1 Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 GLOBAL ENVIRONMENT FACILITY ( GEF) Land Use Change Analysis as an approach for investigating Biodiversity Loss and Land Degradation Dec-00 Dec-07 77 1,000 19,854 38,546 Development & application of decision support tools to conserve & sustainable use of Genetic diversity in Indigenous livestock & wild relatives Oct-03 Jun-07 450,000 31,876 114,932 GEF Sub-total 1,221,000 51,730 153,478 NATIONAL GRADUATE INSTITUTE FOR POLICY STUDIES (GRI) Clean and analyze household survey of the 'Research on Poverty Environment and Agricultural Technology' project Jm'M Feb'06 14,797 12,799 . GRI'Sub-total 14,797 12,799 - GESELLSCHAFT FUR TECHNISCHE ZUSAMMENARBEIT (GTZ) ,G ERMANY ILRI - BMZ project on trypanocide resistance in WA Mar-02 Nov-06 1,211,210 76,804 63,740 Post Doc - Integration of multipurpose trees in mixed crop-livestock watershed systems for feed production and soil conservation ( Kai Sander) Jan-04 Dec-06 288,133 888 69,362 Post Doc Enhancing Beef Productivity, Quality, Safety and Trade in Central America - Euro 320525 Jan-04 JuI-07 793,203 149,210 164,276 Improving the livelihoods of poor livestock keepers in Africa through community based management of indigenous farm genetic resources Mar-04 Sep-07 1,025,765 264,5 1 1 113,641 Improving the value of maize as a livestock feed and to enhance the livelihoods of maize livestock farmers in East Africa Mar-05 Feb-08 1,385,395 256,169 113,318 The Fourth Participatory Poverty Assessment (PPA IV) in Kenya JuI-05 Sep-06 30,049 6,739 17,405 Support for the fourth all Africa conference on animal agriculture Oct-05 Dec-05 17,657 17,657 Virtual library on the status, sustainable use and conservation of AnGr in developing countries on compact disk ( CD-ROM) Aug-05 Mar-07 14,9 f9 3,456 Tran regional Analysis Jan-04 Dec-06 20,000 8,935 2,698 Framework for feed resources assessment yearly 40,000 1 12,860 38,43 1 Trans-regional Analysis of C-L Systems Jan-04 Dec-06 20,obo 3,141 Impact assessment of dual purposes cowpea yearly 5,000 1,336 1,489 Interact of policy and Scale Jan-04 Dec-06 20,000 9,204 684 Development of new diagnostic tools for contagious bovine pleuro-pneumonia Jul-06 Jun-08 24,890 5,452 Preventing and Containing Trypanocide Resistance in the Cotton Zone of West Africa Sept'06 Aug'09 1,347,536 33 Training course on rapid detection of Asian influenza virus for veterinary and medical laboratory staff from African countries Oct'06 May07 645,325 2 17,773 GTZ Sub-total 6,889,082 1,116,511 602,701 34 Grant Expenditure1 Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 HEIFER INTERNATIONAL, USA Collaborative proposal writing Workshop NOV-05 NOV-05 2,000 215 HE1 Sub-total 2,000 215 HUMAN SCIENCES RESEARCH COUNCIL (HSRC) SOCIAL COHESION AND INTEGRATION RESEARCH PROGRAM, SOUTH AFRICA AGI Conference Nov-04 May-05 69,416 62,715 HSR Sub-total 69,416 62,715 INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA), AUSTRIA IAEA Student training Jun-02 Dec-07 2,783 16,473 >Student Training Dec-04 Dec-07 60,000 11,427 6,790 60,000 14 210 23,263 INTER - COOPERATION - PAKISTAN (IC), Community based resource management project in introducing farmer fields schools for livestock May-05 Mar-06 11,921 14,724 3,382 IC Sub-total 11,921 14,724 3,382 INDIAN COUNCIL OF AGRICULTURAL RESEARCH (ICAR) Impact of Trade Policy Reforms and Food Safety Standards on Processed Food Exports from India Sep-06 Sep-08 24,422 17,440 ;24,422 17 440 INTERNATIONAL CROP RESEARCH INSTITUTE FOR SEMI-ARID TROPICS (ICRISAT) ICRISAT Workshop Jan-03 Dec-05 8,500 6,860 Disease Resistance Jan-04 Dec-04 6,909 515 Desert Margins programme with GEF Focal areas on Biological diversity with relevance to climate change and reduction of land degradation in the desert margins area Feb-02 Dec-07 525,000 91,033 90,795 Improved livelihoods in the sahel through development of household level of bioeconomic decision support systems Mar-04 Dec-08 135,542 36,642 49,266 Improved livelihoods in the sahel through development of household level of bio economic decision support systems May-05 Dec-05 1,200 1,200 Development of options for donors, and NGOs in relief and recovery programmes designed to strengthen crop-livestock systems in the context of drought Apr-04 May-06 17,448 4,686 Installation & Implementation of the ICRISAT LlMS at BecA facility & IITA-Ibadan under the GCP Jan-06 Dec-06 5,133 2,495 Desert Margins programme with GEF Focal areas on Biological diversity with relevance to climate change and reduction of land degradation in the desert margins area Feb-02 Dec-07 175,000 30,595 30,962 ICs Sub-total 874,732 16545 1 179,598 35 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 INTERNATIONAL DEVELOPMENT RESEARCH CENTRE (IDRC), CANADA Improving benefits of Urban and Peri Urban Livestock Production through management of Associated Human ans Environmental risks in Nigeria Jan-04 May-06 449,600 299,553 Workshop on Integrated water and land management Research NOV-02 NOV-05 9,625 1,033 Crop-Livestock integration for sustainable natural resources management in sub-humid and highlands zones of west and central Africa Jan-04 Jun-06 3 18,060 12 1,262 101,093 Gender roles in urban dairy production in Ethiopia: Enhancing market oriented production systems May04 May06 15,417 3,872 5,371 Changing diets and their implications for water, land, and livelihoods Jul-06 JuI-07 15,000 14,999 HDRC Sub-total 807,702 140,133 407,050 INTERNATIONAL MIND FOR AGRICULTURAL DEVELOPMENT (IFAD) Programme for small ruminant health improved livelihood and market opportunities for poor farmers in near East and North Africa region (NENA) Jan-04 Jun-07 1,100,000 404, I3 1 222,39 1 Addressing Key Constraints to the Sustainable delivery & Adoption of immunization against each coast fever for poor livestock keepers in East Africa Jan-02 Dec-06 . 94,400 16 905 Diffusion of New Tsetse Control Technologies for improved Livestock Health and productivity in . . Smallholder Indigenous Communities in sub-Sahara Africa Oct-02 NOV-05 1,258,000 209,559 Decision support for Trypanosomiasis control in Uganda Dec-02 Dec-06 97,04 1 3,648 35,216 Sustainable Endoparasite Control for Small Ruminants in SE Asia Sep-04 Dec-06 98,000 36,824 19,162 Smallholder Dairy commercialisation project : targeting activities Dec-04 Feb-05 20,250 . 20,126 124 IFAD Sub-total 2,667,691 464,745 487,357 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE (IFPRI) Poverty Mapping workshop May02 Dec-06 36,890 108 Uganda Dairy Analysis Nov-02 Dec-06 21,169 1,177 5,96 1 ILRI-IFPRI collaboration : Agricultural growth and investment strategies in Ethiopia Jun-04 Apr-06 17,889 9,272 4,490 IFPRI - ILRI Alive project Apr-04 Dec-06 10,399 6,294 ' Development and production of a SAKSS -ECA Demonstrator CD on Poverty & Hunger Apr-05 Jun-06 30,000 993 20,989 Completion of a ward boundary digital map ( Shapefile ) for Tanzania Mar-05 JuI-06 10,000 . 81 9,763 Nov-05 Se -06 30,000 2,569 IFPRI Sub-total 156,347 20,494 41,203 INTERNATIONAL INSTITUTE OF TROPICAL AGRICULTURE (IITA) Research for development, especially in the mutually interesting area of crop-livestock interactions and integration of farming systems in sub-Sahara Africa Oct-03 Sep-08 204,365 96,267 16,416 IITA Sub-total 204,365 96,267 16,416 36 Grant Expenditure1 Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 INTERNATIONAL RICE RESEARCH INSTITUTE URN) Increasing water use emciency for food production through better livestock management: The Nile Basin May-04 Aug-06 5,400 1,962 3,438 . IRRI Sub-total 5,400 1,962 3,438 INSTITUTE FOR GEO-INFORMATION, SCIENCE AND EARTH OBSERVATION (ITC) Spectroscopy and dynamics GIS modelling of earth surface processes for nature conservation ' Sep-05 Sep-05 37,129 36,492 ITC Sub-total 37,129 - 36,492 INTERNATIONAL WATER MANAGEMENT INSTITUTE (IWMI) Community based Irrigation Management in Ethiopia: Strategies to enhance Human health, livestock Feb-04 Jan-OS 185,700 63,642 Investment in agricultural water management in sub-Saharan Africa: Diagnosis of trends and opportunities Jan-04 Dec-06 80,000 5,676 3,913 Increasing water use efficiency for food production through better livestock management: The Nile Basin Jun-04 Jun-08 9 64 ,4 54 140,332 1 13,533 Consortium of spatial information: Meta data inventory and online meta data server 9,300 1,726 2,696 Ensuring Health and Food Safety from Rapidly Expanding Wastewater Irrigation in South Asia. Jun-05 Jun-08 12 1,661 17341 IWMI Sub-total 1,361,115 165,275 183,784 JAPAN Trypanosoma Evansi Infection -Dr. Honda's Research yearly 45,000 2,400 Development of the guidelines for producing a Rural assessment and monitoring tool yearly 2,057 718 Funds to support Yoshihara Kazuhiro yearly 8,205 284 Rural Assessment through a baseline survey and community of Southern Kenya Nov'04 Dec'06 50,000 2,450 45,939 Visiting Scientists - Susumu Abe Jan-06 Mar-06 3,000 3,000 Visiting Scientists - Ms Hiromi Hosono Jan-06 Mar-06 3,000 803 Visiting Scientists - Kimiko Iiyama Jan-06 Mar-06 3,001) 34 I Japan Sub-total 104,000 19,256 46,941 KENYA AGRICULTURAL RESEARCH INSTITUTE (KARI) I KARI ALRI Workplan for PHD training support JuI-02 Dec-06 33,644 3,530 798 Research Fellow - Harun Maina JuI-02 Dec-06 15,324 3,781 KARI /ILRI Workplan for PHD training support Jul-02 Dec-06 35,856 9,369 Research Fellow - Nyamori yearly 830 KARIIILRI Biotechnology Support Project May-04 Dec-06 I00,000 21,630 35,573 Conference on Role of Biotechnology in animal agriculture to address poverty in Africa: Opportunities and challenges Aug-05 Dec-05 658 657 Training account Jan-06 Dec-06 7,29 I 20,462 7,230 A genomic approach to improved trypanotolerance in cattle Aug-03 JuI-06 100,828 55,596 16,46 1 Kenya Sub-total 257,755 140,855 70,918 37 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 KENYA Fourth Participatory Poverty Assessment (PPA IV) JuI-05 Jun-06 253,17 1 213,504 30,333 Study of Marketing, Processing and value adding of camel milk and meat products in the ASAL region of Kenya Feb-06 Dec-07 120,000 24,O 18 373,171 237,522 30,333 KOREA Scientific collaboration Jan-02 JuI-07 160,000 45,809 28,874 Visiting Scientists Jan-05 Dec-05 1,800 Implement of feed eficiency and reduction of pollutants excretion by eliminating anti-nutritional factors in . tropical feed resources yearly 20,000 45,03 1 30,725 RDA Seconded Scientist yearly 20,000 510 9,206 RDA Seconded Scientist yearly 20,000 15,411 Korea Sub-total 220,000 106,761 70,605 LAND O'LAKES INC Kenya Diary Development program Jan-02 Dec-06 500,000 I4 1,67 1 97,794 Train Land O'Lakes personnel, technicians, and cooperative members in processing of a range of dairy products and to prepare technical documents in milk collection and dairy processing Aug-06 Feb-07 3,000 3,000 Land O'Lakes Inc. Sub-total 503,000 144,671 97,794 LIMBURGS UNIVERSITAIR CENTRUM (LUC) ILRi -LUC Workshop: Current trends and recent advances in applied biometry Jun-04 Dec-05 27,000 8,382 LUC Sub-total 27,000 - 8,382 MAKERERE UNIVERSITY Visiting scientist - Makerere University May-04 Dec-06 19,200 1,085 5,746 Mak Sub-total 19,2d0 1,085 5,746 MICHIGAN STATE UNIVERSITY Climate and Land Use Workshop - MSU Sep-0 I Oct-06 2,800 2,064 An integrated analysis of regional land climate interactions Sep-03 Feb-07 155,735 27,872 60,330 MSU Proposal Development Workshop Feb'06 Feb'06 5,000 2,005 Mr. Boubacar Dembele's short term training cost on techniques for feed evaluation as a visiting Technical Associate May'06 Jun'O7 10,475 9,244 MSU Sub-total 174,010 41,185 60,330 38 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 PARTNERSHIPS FOR AFRICA'S DEVELOPMENT Research Study on the Interface between Human Health and Agriculture on the BecA platform Oct'06 Dec'06 25,000 8,927 NEPAD Sub-total 25,000 8,927 NATIONAL GRADUATE INSTITUTE FOR POLICY STUDIES ( GRI) Panel data analysis of diary production and marketing Feb-05 Mar-05 12,905 12,905 12,905 12,905 NATURAL ENVIRONMENTAL RESEARCH COUNCIL (NER) Evaluation of recombinant tick vaccines for control of tick infestation and pathogen transmission blocking JuI-04 NOV-06 13,320 3,479 NER Sub-total 13,320 3,479 - NETHERLANDS Systems Prototyping and Impact Assessment for sustainable alternatives in mixed farming systems in high potential areas of East Afiica ' Jan-00 Dec-05 370,850 13,349 Policies for sustainable Land Management in the East African Highlands - Phase I1 (ILRI-IFPRI) Oct-00 Dec-06 42,196 22,793 Dutch APO: Spatial Modelling- Jeannette van de Steeg Apr-04 Apr-06 234,116. 29,822 73,067 Dutch APO: Ecology- Sandra van Dijk Apr-04 Apr-06 23 1,686 58,123 65,167 Dutch APO: Crop Livestock Systems- Esther van Hoeve Apr-04 Apr-06 21 9,82 1 24,670 51,21 I Dutch APO: Epidemiology- Stella Clara Massawe Mar-04 Mar-06 204,OO 1 8,654 75,8 15 Dutch APO: Social Economic and policy research- Jan-04 Dec-06 133,009 89,724 63,025 Ecoregional Project Jan-04 JuI-05 636,400 137,096 NER Sub-total NETHERLANDS FOUNDATION FOR THE ADVANCEMENT OF TROPICAL RESEARCH (WOTRO) Student support Jan-00 Dec-05 4,461 3,382 Breeding Objectives and Breeding strategies for small ruminants in the tropics JuI-03 JuI-05 75,660 21.410 Characterization and Conservation of indigenous animal genetic resources Sep-04 Aug-07 77,308 11,35 I I6,OO I Exchange sustainable use and conservation of farm animal genetic resources Mar-05 Sep-06 2 1,600 2,507 19 WOT Sub-total 178,909 13,858 40,812 NORWEGIAN SCHOOL OF VETERINARY SCIENCE Chicken genetic sampling Jan-05 Dec-05 I5.000 6,547 NOR Sub-total 15,000 6,547 39 Grant Expenditure1 Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 NATURAL RESEARCH INSTITUTE (NRT) Primas Extrapolate: a prototype policy screening technology targeting tools for livestock keepers in the tropics Jun-04 NOV-06 1 1,840 3,729 3,384 Primas Extrapolate: a prototype policy screening technology targeting tools for livestock keepers in the tropics Apr-05 Dec-05 98,362 10,299 25,150 Family portrait of Maasai Pastoralist Apr-04 Feb-05 35,714 35,156 NRI Sub-total 145,916 14,028 63,690 OROMIYA AGRICULTURAL DEVELOPMENT BUREAU (OADB) Characterization of Indigenous Ruminant Livestock Population in Oromia Regional State of Ethiopia Aug-00 Dec-06 77,558 2,846 OADB Sub-total 77,558 2,846 OPEC FUND FOR INTERNATIONAL DEVELOPMENT (OFID), AUSTRIA Sustainability of smallholder diary systems on the tropics through increased feed supply Jan-0 I May-06 70,000 384 16,144 Expansion of Trade in small ruminants and meat in the Near east and North Africa region: Opportunities and constraints for small scale producers JuI-05 Jun-06 100,000 64,323 35,577 OPEC Sub-total 170,000 64,707 51,721 PHILIPPINES Rural Enterprise Development Feb-04 Dec-06 73,800 10,187 PHL Sub-total 73,800 10,187 ROCKEFELLER FOUNDATION Intellectual property management unit - grant Mar-00 Apr-OS 706,750 138,267 Utilization of the Kenya Poverty mapping results to explore interactions between poverty and natural resources management Sep-03 Oct-06 252,000 61,528 70,062 Plant Biodiversity yearly 2,300 3,211 Producing a technical report with results of the Uganda high resolution poverty mapping analysis Mar-04 May-05 6 1,OQO 3037 1 supporting the Bioinformatics Capacity under BeCA from Rockefeller foundation JuI-05 Jun-06 150,000 87,109 17,671 Develop training resources for effective teaching of biometry at universities in sub-Saharan Africa JuI-05 Jun-06 70,000 5 1,904 23,002 Demonstrating how poverty maps can be used more effectively to design and target pro-poor interventions across different sectors. Dec-05 Nov-07 250,000 123,870 Developing Opportunities for Poverty Reduction through Spatial Analysis of Poverty: Making the Linkages for better Implementation of National Strategies and Plans in East Africa Dec-06 NOV-08 220,000 ROC Sub-total 1,709,750 326,71 I 282,784 40 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 ROTHAMSTED RESEARCH Develop training resources for effective teaching of biometry at universities in sub-Saharan Africa Jul-05 Sep-05 18,000 11,961 ROR Sub-total 18,000 - 11,961 SCANAGRI, DENMARK Services of Getrude Buyu to SCANAGRI Apr-04 May06 10,732 10,532 20 1 SCA Sub-total 10,732 10,532 201 SWISS AGENCY FOR DEVELOPMENT AND COOPERATION Reducing the risk to the poor of zoonotic diseases Feb-06 Dec-07 3 17,209 70,307 SDC Sub-total 317,209 70,307 - STRENGTHENING INFORMATION SECTOR TRAINING ENTERPRISE (SITE) 5Feb-05 Jan-06 48,944 123 25,582 SIT Sub-total 48,944 123 25,582 SASAKAWA GLOBAL 2000 Integration of Water Harvesting Technologies and Small Scale Dairy Production to Improve the livelihoods of Crop-Livestock Producers in Ethiopia Jul-04 Dec-06 88,000 26,425 22,364 SSG Sub-total 8,000 26,425 22,364 STRATEGIC INITIATIVE ON URBAN AND PERI-URBAN AGRICULTURE (SUIPA) Dairy Activities SUIPAICIP Jul-04 Dec-06 27,000 4,592 7,178 SUIPA Sub-total 27,000 4,592 7,178 SWEDEN Harnessing genetic variation in trypanotolerance of Ethiopian cattle breeds to improve household welfare in tsetse infested areas of Ghibe (PhD student) Apr-04 Dec-06 29,883 7,110 12,166 Collaborative Research Project between SLU, Uppsala and ILRI Jun-05 Dec-07 15,395 11,471 Sweden Sub-total 45,238 18,581 12,166 SWITZERLAND New Sustainable concepts for efficient smallholder dairy nutrition Jan-00 Dec-05 20,000 1,183 Developing Optimised Cattle Breeding Schemes, with a special focus on trypanotolerance, based on the demands and opportunities of poor livestock keepers NOV-04 Oct-06 30,000 56 I 16,81 I Animal source foods and nutrition during early life; an evolution of the possible link between livestock keeping and nutritional status of young children in resource poor areas Jul-04 Jun-07 135,768 42,500 39,736 Developing optimised cattle breeding schemes with a special focus on trypanotolerance based on the demands and opportunities of poor livestock keepers Sep-04 Aug-06 87,820 47,532 24,699 ZIL Sub-total 273,588 90,593 82,429 41 Grant Expenditure1 Expenditure./ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 SYRACUSE UNIVERSITY, USA Determinants of cattle prices in pastoral cattle markets of Southern Kenya Sep-04 Dec-06 8,336 1,600 6,724 SYR Sub-total 8,336 1,600 6,724 TERRA NUOVA Improvement and diversification of Somalia Livestock Trade and Marketing Feb-05 Jan-08 206,707 94,04 1 562 TEN Sub-total 206,707 94,041 562 TEXAS A&M UNIVERSITY (TAMU) Ethiopian Meat Export Study Ped05 Dec'06 45,000 11,250 TAMU Sub-total 45,000 11,250 - THE NATIONAL VETERINARY INSTITUTE ( SVA), SWEDEN Novel.approach and technologies to reduce the impact of nematode parasitism on the livelihoods of small- holder farmers of sheep and goats in Africa JuI-05 Jun-08 329,958 106,334 54,947 329,958 106,334 54,947 UNIVERSITY OF FLORIDA Carbon- Household Model Jul-02 Sep-07 135,000 20,130 17,588 UFL Sub-total 135,000 20,130 17,588 UNIVERSITY OF GLASCOW University of Glasgow Apr-03 Dec-06 1 1,629 3,272 UGL Sub-total 11,629 3,272 - UNIVERSITY OF CUELPH Ecosystems and Livelihoods Workshop Jul-06 Sep-06 15,481 15,816 CUE Sub-total 15,481 15,816 UNIVERSITY OF HOHENHElM Sustainable land use and rural development in mountainous regions of south East Asia: Efficiency of small holder animal husbandry Jan-04 Dec-05 1 7,62 1 13,700 UOH Sub-total 17,621 13,700 UNIVERSITY OF NAIROBI Univ. of Nairobi - ARF finds Sep-01 Dec-06 8,978 2,285 636 Univ. of Nairobi - ARF funds Jun-04 Dec-06 429 229 52 UON Sub-total 9,407 2,514 688 42 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 UNIVERSITY OF NAGOYA Trial of the efficacy of Ascofuranone in the treatment of trypanosomiasis in goats yearly 90,000 3 1,362 5,497 NAG Sub-total 90,000 31,362 5,497 UNIVERSITY OF NOTTINGHAM Mapping Genes for resistance to gastro intestinal nematodes Oct-01 Sep-05 399,111 6,272 UON Sub-total 399,111 - 6,272 UNIVERSITY OF MARYLAND Genetic diversity of Human and cattle populations from E Africa Jun-04 Dec-05 20,000 7,393 Msr Sub-total 20,000 - 7,393 US NATIONAL SCIENCE FOUNDATION Scale Biocomplexity Oct-01 Sep-06 36,000 1,967 13,971 Sources of Heterogeneity in Grasslands: Responses of Wildlife to people on Savanna Landscape Aug-04 JuI-07 309,430 141,342 1 13,033 Decision Making in Rangelands Systems: An Integrated Ecosystem -Agent -Based Modelling Approach to Resilience and Changes ( DREAMER) Sep-05 Aug-08 49,000 1 1,480 Research Fellowship for Mara Goldman Sep-05 Jun'09 2,400 1,002 US NSF Sub-total 396,830 155,791 127,004 UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) TARGET/TAF Funds: Improving livelihoods of smallholder livestock producers through Peri-urban production in West Africa Jul-02 Oct-05 600,000 97,146 Animal disease ( the activity) JuI-02 May-05 200,000 39,749 Strategic analysis knowledge support systems (SAKSS) node in Eastern & Central Africa May-04 Dec-09 900,000 175,02 1 137,834 Environment & Social management Framework for Tsetse Control in Afiica Jan-05 Dec-06 245,106 140,038 70,628 USA Sub-total lY945,1Q6 315,059 345,357 UNITED STATES DEPARTMENT OF AGRICULTURE Farming systems Mar-0 1 Dec-06 45.000 2,663 196 Strengthened teaching and research on sheep and goat NOV-01 N~v-06 84,454 1,490 Tick vaccines Nov-04 Sep-06 120,000 53,624 3,434 Identify and test additional tick antigens for use in transaction basetiland or subunit vaccines Aug'06 JuI-07 60,000 5,600 Evaluation of the induction of bovine cytotoxic T cell responses by recombinant live attenuated Listeria monocytogenes Oct'06 Oct'07 19,873 5 Managing Greenhouse gas emissions from ruminant livestock systems in the developing world JuI-02 JuI-05 105,000 2,256 Improving vaccine efficacy by directed priming of CD4 and CD8 T Lymphocytes Sep-06 Aug-08 50,000 SO USDA Sub-total 484,327 63,432 5,886 43 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 VIRTUAL ACADEMY FOR SEMI-ARID TROPICS (VASAT) A Virtual Academy for the Semi-Arid Tropics Apr-04 Mar-07 15,000 6,612 7,599 VASAT Sub-total 15,000 6,612 7,599 VETERINAIRES SANS FRONTIERES Vaccine Stabilate Diluents Preparation for ECF Immunizations in Tanzania Jan-06 Dec'06 15,000 19,000 East Coast Fever component of the food security and livelihood improvement program, Equatorial West of the Nile Aug-05 Apr-06 24,690 9,449 12,441 Development of monitoring and evaluation tools for Livestock development activities in Pastoral production systems. Nov'O5 Oct'O6 161,938 60,376 68, I87 VSF-B Sub-total 201,628 88,825 80,628 VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY (SAREM) Enhance and Promote Mali's capacity to contribute to stakeholder empowerment through knowledge based sustainable agriculture and natural resource management systems Apr-05 Apr-06 5,730 300 5,215 SAREM Sub-total 5,730 300 5,215 UNIVERSITY OF WARWICK Tz - ECF Field studies 10,992 15 58 WAR Sub-total 10,992 15 58 World Agroforestry Centre (ICRAF) Gender and diversity Jan-02 Dec-06 35,000 8,079 16,070 Pastoralism Potential Impacts of Conservation Agriculture in the Lake Victoria Basin Jun-06 Dec-06 126,821 48,4 19 ICRAF Sub-total 161,82i 56,498 16,070 WORLD BANK Rehabilitating CGIAR Global Public Goods Assets (Gene bank) Mar-04 Dec-06 1,191,500 492, I96 296,967 Information and communication Technology I Global Public Goods (ICTIGPG Nov-04 Feb-07 725,400 100,549 143,993 Improving the effectiveness of Action to Reduce Poverty and Vulnerability of Pastoralists Dec-04 Jun-06 100,000 38,214 61,786 ILRIIFARA ALIVE project Sep-05 Dec-06 200,000 68,812 13,682 Pastoralism and Poverty Reduction in East Afiica: A Policy Research Conference Jun-06 Jun-06 30,000 30,082 ILRI-World Bank Workshop on World Development Report 2008, Agriculture for Development. Nov'O6 Nov'O6 50,000 31,739 WB Sub-total 2,296,900 761,592 516,428 44 Grant Expenditure/ Expenditure/ amount revenue revenue Grant title Start date End date US$ for 2006 for 2005 WELLCOME TRUST Functional genomics Sep-02 Aug-07 1,560,000 382,922 361,325 The reconstruction of recombinant inbred lines from a murine heterogeneous stock Apr-05 Mar-08 258,9 14 93,562 17,743 An integrated approach for the development of sustainable methods to control theileriosis Apr-05 Mar-1 0 133,840 55,483 1,090 Bovine Tuberculosis in the developing world Apr-05 Apr-10 473,102 58,574 A genomics approach to understanding the immunopathology of contagious bovine pleuropneumonia (CBPP) Jun-05 May- 10 1,274,290 246,4 12 20,734 Infection dynamics and disease burden of East African cattle Oct-06 Jan-12 1,496,111 209 WEL Sub-total 5,196,257 ,837,162 400,892 WORLD WILDLIFE FUND (WWF) WWF Workshop 2002 Jan-02 Dec-05 10,000 828 ' WWF Sub-total 10 ,000 - 828 GRANT TOTAL 80,151,333 12,868,498 14,097,949 45 Balance at Unrestricted Restricted Other Balance at 1/1/2006 additions additions Disposals movements 12/31/2006 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000, US$ '000 COST Laboratory & Scientific Equipment 9,822 109 0 -361 -9 9,561 Office & Housing furniture & Eqmt 1,313 243 18 -79 2 1,497 Computers 4,300 280 156 -865 -16 3,855 Motor vehicles 3,33 1 416 129 -352 -2 3,522 Farm Equipment 3,139 16 0 -258 0 2,897 21,905 1,064 303 -1,915 -25 21,332 ACCUMULATED DEPRECIATION Laboratory & Scientific Equipment 9,329 167 0 -354 -85 9,057 Office & Housing furniture & Eqmt 1,154 76 18 -78 0 1,170 Computers 3,804 296 156 -838 6 3,424 Motor vehicles 3,116 88 129 -349 -1 2,983 Farm Equipment 3,03 1 37 0 -257 -23 2,788 20,434 664 303 -1,876 -10 3 19,422 NET BOOK VALUE Laboratory & Scientific Equipment 493 -58 0 -7 76 504 Office & Housing furniture & Eqmt 159 167 0 -1 2 327 Computers 496 -16 0 -27 722 43 I Motor vehicles 215 328 0 -3 : -1 539 Farm Equipment 108 -2 1 0 -1 l 23 109 1,471 400 0 -39 ' 78 1,910 46 SCHEDULE OF DIRECT AND INDIRECT COST RATES for the year ended 31 December 2006 Currency - US Dollar ( thousands) -2005 Direct Operating Expenses Research 22,864 24,546 Research Support 3,181 2,443 sub-total 26,045 26,989 less: Overhead recovery ' 884 (1,211) total 25,161 25,773 Indirect Operating Expenses Management 2,326 2,195 Operations 1,591 Common Sustenance Services 1.539 2,07 1 total 5,456 4,263 Total Operating Expenses 30.617 30.047 Cost Ratios Direct/Total 82% 86% IndirectlTotal 18% 14?4 IndirectlDirect 22% 17%) 'The deduction of the overhead recovery does not result in a NET amount but rather it results in the correct gross amount of the direct costs. This is because the project costs (nomially reported as direct project costs) include an amount of indirect costs that a donor of restricted projects allows a Center to recover. As this is not a real direct cost i t should be removed. This is always the amount shown as recovery in the Statement of Activity (SOA). 47