Centro Internacional de la Papa
International Potato Center
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Publications / Annual Report 2001
Financial report
CIP’s total revenues in 2001 were US$19.0 million (18 percent less than the 2000 revenues of US$23.3 million). This revenue comprises US$9.0 million of unrestricted donations and US$10 million of restricted donations. At the end of 2001, US$3.3 million (17 percent of total revenues) had not been received. The allocation of CIP's funds to its research activities is shown below.
The main reasons for the lower revenues in 2001 were a sharp fall in unrestricted donations and exchange rate losses. CIP’s donations are received in US dollars (41 percent), euros (23 percent) and various other currencies (36 percent), making revenues sensitive to exchange rate volatility in international financial markets. During 2001 there was a rise in the value of the US dollar against other international currencies, especially the Japanese yen and the euro, and a consequent fall in these currencies in US dollar terms.
In response to the drop in income, CIP restructured its budget, monitored expenses closely and made a major effort to obtain new donations. Despite these actions, the budget deficit reached US$1 million, and as a result the financial operating reserve was reduced from US$3.1 million to US$2.1 million. At the end of 2001 the cash position stood at US$4.9 million.
Liquidity problems, largely due to delays in the receipt of contributions, have been a challenge during previous years. Prudent liquidity policies, however, have made it possible to operate in an uncertain environment. CIP is currently exploring with multinational banks new options that will allow more flexibility in liquidity management.
The budget review and the prudent financial policies adopted during the year made it possible to reduce the percentage of indirect costs from 16 percent in 2000 to 14 percent in 2001. As a result of new austerity measures to be implemented during 2002, it is expected that indirect costs will continue to decline.
The statement below summarizes CIP’s finances in 2001. A copy of the complete audited financial statement may be requested from the office of the Deputy Director General for Corporate Development at CIP headquarters in Lima, Peru.
The main reasons for the lower revenues in 2001 were a sharp fall in unrestricted donations and exchange rate losses. CIP’s donations are received in US dollars (41 percent), euros (23 percent) and various other currencies (36 percent), making revenues sensitive to exchange rate volatility in international financial markets. During 2001 there was a rise in the value of the US dollar against other international currencies, especially the Japanese yen and the euro, and a consequent fall in these currencies in US dollar terms.
In response to the drop in income, CIP restructured its budget, monitored expenses closely and made a major effort to obtain new donations. Despite these actions, the budget deficit reached US$1 million, and as a result the financial operating reserve was reduced from US$3.1 million to US$2.1 million. At the end of 2001 the cash position stood at US$4.9 million.
Liquidity problems, largely due to delays in the receipt of contributions, have been a challenge during previous years. Prudent liquidity policies, however, have made it possible to operate in an uncertain environment. CIP is currently exploring with multinational banks new options that will allow more flexibility in liquidity management.
The budget review and the prudent financial policies adopted during the year made it possible to reduce the percentage of indirect costs from 16 percent in 2000 to 14 percent in 2001. As a result of new austerity measures to be implemented during 2002, it is expected that indirect costs will continue to decline.
The statement below summarizes CIP’s finances in 2001. A copy of the complete audited financial statement may be requested from the office of the Deputy Director General for Corporate Development at CIP headquarters in Lima, Peru.
