Publications /  Annual Report 1998

The Center’s total income dropped 5% during 1998 from $24.7 million in 1997 to $23.4 million in 1998, with total revenues comprising $22.0 million in contributions (unrestricted, $13.0 million or 56%; restricted, $9.0 million or 38%) and $1.4 million or 6% in other income.

CIP expenditures for the year matched initial projections. The operating fund increase of $450,000 was 50% more than estimated at the beginning of the year, increasing the total operating fund to $1.5 million, the equivalent of 23 days of the Center’s cash needs for its worldwide operation. The latter was possible due to savings in the operational budget, a delay in filling two international staff positions, and additional contributions pledged from Japan and the European Union. As current reserve levels are insufficient, management will continue to set aside $300,000 annually until the year 2002. At that time, the fund should total $2.7 million. The Center also increased its capital fund account by $250,000. This amount reflects a contribution of $200,000 received from Japan and $50,000 of CIP's savings allocated for construction of the Biosafety complex at CIP headquarters in Lima. Construction, now in progress, is scheduled for completion during the fourth quarter of 1999.

Cash management continues to be a challenge for CIP financial activities. By December 31, the Center had received $19.1 million (79%) of total expected cash inflow for the current year. Receipt of $5.0 million was still pending. Accounts receivable included pledged contributions of $3.6 million in 1998 and $1.4 million in 1997.

CIP management plans to strengthen its cash management by coordinating with donors to reduce the time it takes to receive contributions and to match cash inflow with cash outflow, while continuing to take advantage of its ability to borrow on short notice and on favorable terms when necessary.

CIP's total income comprises U.S. dollars (44%), Euro (22%), and other various currencies (34%). As a result, Center income is highly influenced by international financial markets. CIP’s Statement of Financial Position as of December 31, 1998, shows strong current and total assets. The liability side includes short-term commitments and provisions that are well covered by Center assets.

During 1998, investment in potato was 63% of CIP’s total income. This reflects the need to respond to the continuing growth in demand for the commodity in developing countries and in the potential impact of CIP research. Sweetpotato was 22% of Center income. Investment in potato versus sweetpotato remained at a ratio of 74:26 for the year. Investment in the lesser-known Andean roots and tubers was 3%. Asset allocations to natural resource management reached 7% of total Center income, and total investment in the Global Mountain Program was 4%. Center investment was allocated according to CGIAR categories as follows: increasing productivity, 43%; protecting the environment, 26%; conserving biodiversity, 9%; improving policies, 5%; and strengthening national programs, 17%.

The table below summarizes CIP’s finances in 1998. A complete, audited financial statement by Pricewaterhouse-Coopers is published separately, and can be requested from the Chief Financial Officer at CIP headquarters in Lima, Peru.