CIP’s total revenues
in 2002 were US$18.72 million, 2 percent
lower than the 2001 revenues. Total revenues
included US$8.36 million of unrestricted
donations and US$10.36 million of restricted
donations. At the end of 2002, US$4 million
(21 percent of total revenues) had not
been received.
CIP’s donations are received in
US dollars (40 percent, or US$7.54 million),
euros (19 percent, or US$3.46 million),
Swiss francs (12 percent, or US$2.20 million),
yen (4 percent, or US$0.71 million), and
various other currencies (25 percent).
In 2002, the US dollar depreciated against
the major currencies creating an exchange
gain of US$0.32 million.
In response to the continuing drop in
revenues, CIP underwent a downsizing exercise.
In addition, the Center took measures
to improve the operational efficiency,
to closely monitor expenditures, and to
raise efforts in fund raising. |
The financial results reduced
the operating reserve from US$2.1 million
in 2001 to US$1.8 million in 2002. In
order to better align financial reserves
to potential risks, the account accruals
and provisions was redefined and a new
target of US$0.95 million was established,
in order for it to serve as a contingency
reserve. The contingency reserve would
cover unexpected risks that reduce revenues
or increase expenses, such as donor cancellations,
exchange rate losses, unplanned staff
relocations, etc. The new definition made
it possible to reallocate US$0.35 million
from the account accruals and provisions
to the operating fund.
The statement below summarizes CIP’s
financial position as of December 2002.
A copy of the complete audited financial
statements may be requested from the office
of the Deputy Director General for Corporate
Development at CIP headquarters in Lima,
Peru. |
These actions were fundamental
to reduce significantly the expected deficit
to US$0.6 million.
Accumulated expenditures reached US$19.3
million in 2002, 8 percent below the total
budget for the year. Expense reductions
were possible in all categories, especially
in those expense lines funded by unrestricted
donations. Total savings achieved compared
to the budget were US$1.3 million, which
compensated falling budgeted revenues.
New project donation approvals increased
substantially. During the year, donation
approvals, excluding earmarked funding,
reached US$10.8 million, 23 percent above
the previous year and three times those
approved in 1999. The backlog of projects
pending approval from donors was fairly
stable at US$19.5 million.
In addition, austere and prudent policies
made it possible to reduce indirect costs
from 14 percent in 2001 to 13 percent
in 2002. It is expected that in the future,
indirect costs will continue to decline
as the center expands its research program. |
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