CIP’s total income in 2000 was US$23.9 million (12% more than the 1999 income of US$21.4 million). This income comprises unrestricted funds (US$11.4 million), restricted funds (US$9.9 million), a special allocation from the CGIAR Finance Committee to help cope with the lost EC funds in 1999 (US$0.8 million), and proceeds from the sale of the CIP aircraft (US$1.8 million). At the end of 2000, US$3.5 million of this expected income had not yet been received. The allocation of CIP’s total 2000 income to its research activities is shown in Table 1.

Table 1.  Allocation of income to CIP activities, 1999 and 2000

CIP activities	1999		2000
	US$ millions	%	US$ millions	%
Potato	11.4	53	11.2	47
Sweetpotato	7.5	35	7.4	30
Andean roots and tubers	0.9	4	0.9	4
Natural resource management (including CONDESAN)	1.1	5	1.3	5
Global Mountain Program	0.4	2	0.2	1
Global Initiative on Late Blight (GILB)	0.1	1	0.1	1
Urban and peri-urban agriculture (SIUPA)	0	0	0.2	1
Financial operating reserve	0	0	2.6	11
Total income	21.4	100	23.9	100

 

Over the past decade CIP has made efforts to maintain a financial operating reserve. From a deficit of US$3.0 million in 1991, the reserve grew to a positive balance of US$1.5 million in 1998 (Figure 1). The EC’s decision not to disburse the US$1.9 million pledged for 1999 forced CIP to use US$1.3 million of its reserve to help finance its activities. As a result, the reserve was reduced to US$0.2 million by the end of 1999.

During 2000 the US$0.8 million received from the CGIAR Finance Committee and the US$1.8 million proceeds from the sale of CIP’s aircraft, together with savings achieved during the year (US$0.2 million) were allocated to CIP’s reserve account. By the end of 2000, therefore, the operating reserve stood at US$3.0 million (equivalent to 46 days of the Center’s cash needs).

Nevertheless, the amount receivable by the end of the year (see Statement of financial position, page 43) is an indication that CIP needs to continue keeping in place a cautious cash control program. CIP’s management plans to continue strengthening the cash management program during 2001.

During 2000 CIP finalized the implementation of the revised CGIAR financial guidelines recommending that a Center’s infrastructure and facilities, which would revert to the host-country government in the event that the Center ceases operations, should be deducted from the capital account. This implementation is reflected in the reduction (compared with 1999) in the ‘Property and equipment’ account in the Statement of financial position.

The new biosafety greenhouse, part of the new biodiversity complex, became functional late in 2000. Funding for this building – US$0.25 million for construction and US$0.15 million for equipment – was provided, as restricted contributions, by the Government of Japan. Construction of the genebank building, also part of the biodiversity complex, began in April 2000, but because of cash-flow limitations work had to be deferred. We now expect to complete construction during the first quarter of 2001. The total investment is estimated as US$1.5 million (US$0.6 million for construction and US$0.9 million for equipment).

During 2000 CIP completed the integration of its corporate databases. The CIP financial information system CIPFIS (a project-based integrated budgeting, accounting, costing and cash management system) is now linked with the databases of Administration (purchasing and inventory) and Research (germplasm acquisition and distribution, and the workflow system). Several other small applications, such as payroll, are also linked into the integrated system. The databases making up this integrated system are installed at CIP’s headquarters in Lima and are accessible from regional offices.

The integrated system offers a full range of data entry, editing and reporting facilities. It is a powerful and effective tool for decision-making, and it improves efficiency and reduces costs. During 2001 we plan to extend the system to incorporate information required for the physical management of assets and for our strategic capital investment plan (CIP fixed assets management system).

Figure 1. Financial reserve, 1991–2000

The Statement of financial position summarizes CIP’s finances in 2000. A copy of the complete financial statement, audited by PriceWaterhouseCoopers, may be requested from the Chief Financial Officer at CIP headquarters in Lima, Peru.

Statement of financial position
Year ending 31 December 2000 (compared with 1999)

	(US$000)
	2000	1999
Assets
Current assets
Cash and cash equivalent	5,407	8,392
Securities	70	57
Accounts receivable
Donors	3,572	1,170
Employees	268	200
Others	323	426
Inventories	571	607
Advances	399	302
Prepaid expenses	167	25
Total current assets	10,777	11,179
Property and equipment, net	3,355	10,501
Total assets	14,132	21,680

 

Statement of financial position
Year ending 31 December 2000 (compared with 1999)

	(US$000)
	2000	1999
Liabilities and net assets
Current liabilities
Accounts payable
Donors	689	3,262
Others	4,483	4,831
Accruals	1,781	1,030
Total current liabilities	6,953	9,123
Net assets
Appropriated	4,109	12,356
Unappropriated	3,070	201
Total net assets	7,179	12,557
Total liabilities and net assets	14,132	21,680

 

A model of the new biodiversity complex at CIP's headquarters in Lima, Peru