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Albin Hubscher

Report Corporate Services CIAT Board Meeting #63 Nairobi, Kenya , 13 May 2011. Albin Hubscher. Index. Decisions BoT 62 Financial Result 2010 Financial Outlook 2011 Progress report - Corporate Services Area OCS – One Corporate System (ERP). 1. Decisions last BoT.

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Albin Hubscher

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  1. Report Corporate Services CIAT Board Meeting #63 Nairobi, Kenya, 13 May2011 Albin Hubscher

  2. Index Decisions BoT 62 Financial Result 2010 Financial Outlook 2011 Progress report - Corporate Services Area OCS – One Corporate System (ERP)

  3. 1. Decisions last BoT • Budget 2011 Approved with revenues of $ 58.2 M, expenses $67.2 M, cost recovery $10.4 M and net surplus of $1.5 M • Salary increases for 2011 • IRS salary adjustments:Global consumer prices index = 1.87% * 75% = 1.4% (average between Europe and US) • NRS salary adjustments in Colombia:IPC (local consumer price index) + 1% as negotiated with CIAT Union = 3.17 +1 = 4.17% • NRS salary adjustment elsewhereInflation

  4. 2. Financial Result 2010

  5. Statement of Financial Position 2010 (expressed in thousands of U.S. dollars)

  6. Statement of Activity 2010 (expressed in thousands of U.S. dollars) Variance % 27% 20% 177% 50%

  7. Expenses by Natural Classification (expressed in thousands of U.S. dollars) Variance % 20% 19% 23% 41% (17%) 20% 20%

  8. Reasons for Exceeding Financial Forecast At November 2010 BOT , we estimated a surplus of $3.6 million • Opportunity to cash in on bond investments - $1.9 million • Higher budget execution in Nov. and Dec. additional recovery - $0.3 million • Delay in execution of Ag Ministry funds - $0.3 million Resulted in a final surplus of $6.1 million in 2010

  9. Total Research Execution 2008 – 2010 (Unrestricted + Restricted)

  10. Cost Recovery 2010 (expressed in thousands of U.S. dollars)

  11. Days of Operating Reserves

  12. 3. Financial Outlook 2011 as of March

  13. Total Research Execution (Unrestricted + Restricted as of March)

  14. Restricted Execution vs Budget by RA As of March 31 / 2011(expressed in million USD) CC&CB Other

  15. Unrestricted Execution by RAAs of March 31 / 2011(expressed in million USD) CC&CB

  16. Self Generated Income As of March 31 / 2011 (expressed in thousand USD)

  17. Unrestricted IncomeAs of March (expressed in thousand USD)

  18. Monthly Operating ResultAs of March 31 / 2011(expressed in million USD) • Low project execution results in lower cost recovery • Lower unrestricted funds results in research over commitment

  19. Current Unrestricted/CRP Funding (expressed in million USD) 19

  20. Actions to Reach Budget Target • Concentrate on CRP’s with mayor CIAT participation • Stability Funding plan • Active donor contact • Non traditional fundraising focus • Restrict or time hiring of new staff • Control or delay expenses • Maximise other income

  21. Cash or Equivalent Available 2011 Vs 2010 (expressed in thousands of U.S. dollars)

  22. CostRecovery 2011 (expressed in millions of U.S. dollars)

  23. Future CIAT Funding Sources • New CGIAR • Fund (World Bank as Trustee) Fund Council decisions • Window 1 (system costs and possibly CRP’s • Window 2 (for CRP’s only) Donor decision • Window 3 (donor support to center) • Bilateral (from donors to centers directly) CGIAR donors • Restricted (for CRP and Non-CRP activity) • Unrestricted (unlikely, will go through window 3)Non – CGIAR donor • Restricted (for CRP and Non-CRP activity) • Unrestricted (to center i.e. infrastructure) • Earned or self-generated income 23

  24. 2011 Upsides & Downsides • Upsides: • Increased donations from Australia and Belgium ($0.3 m) • Strengthening of foreign currencies against the USD • Downsides: • No unrestricted contribution from EC ($1.2m) • Exchange rate year end forecast = $1,750 COP/USD • Cash weaknesses due to the delay in disbursements from Fund/Donors • Researchers time dedicated to developing CRPs • 2% System costs for bilateral – unbudgeted • Unrestricted over commitment - $1.9 m against budget

  25. 4. Progress Report and Goals Corporate Services Area

  26. Highlights - 2010 • Increased days of reserves with self generated funds • Conducted Corporate Services Survey • Implemented Web based Performance Evaluation system • Successful transfer of Employee Welfare Fund to Creciat • Completed budgeting process of 11 CRP’s and established program and operating structure for CCAFS • Consolidation of Africa Corporate Services • Established new travel services - Carlson Wagonlit Tour • Established center wide Wi-Fi access at HQ • Implemented New Corporate Identity • Negotiated lines of credit for almost $20 million

  27. CIAT Social Responsibility 2010 • A total of US$ 180,000 invested in CIAT Social Welfare Activities befitting employees as follows: • 69% education, 27% sports, cultural and health events, 2% communications, 2% Psychology and solidarity support • 350 employees and family members received Capacity Building • 250 employees and family members participated in Training Classes to improve human values • 450 participants in “Learning to be good parents” and “Financial responsibility” classes • 2000 participants in sports and cultural activities • 1320 health services extended to families and members • Multiple support provided for Social, Calamity and Funeral services

  28. Challenges 2011 • Contract a new HR Head • Incorporate CCAFS into CIAT • Start planning for implementation of OCS • Continue infrastructure improvements • Achieve surplus of $1.5 million – days of reserve • Outsource payroll • Replace the phone system • Implement financial control mechanisms in Africa 28

  29. OCS – One Corporate System OCS = ERP (Enterprise Resource Planning) Update

  30. Structure and Limitations Central Processing Project Management Back Office incl. Finance Report Generation Document Management Regional Helpdesk Human Resources • Same Charter of accounts • No customization

  31. Current Status – Center Commitments • Implementing in 2011: commitment letter signedCIP, IRRI, WorldFish • Implementing in 2012: commitment letter under development ICARDA, Bioversity, Africa Rice • Intend to change but after 2012: commitment letter neededCIAT, ICRAF, ILRI, Consortium • Undecided:CIFOR, CIMMYT, ICRISAT, IITA, IMWI • Declined: IFPRI

  32. Current Status – System Platform Agresso Business World, Unit4 Business Software • Not US non profit compliant • Questions about the project management module • Very few users – DFID • Up-front payment required now for acquisition and certain licenses – all part. Centers • Hosting decision is pending CIAT’s Oracle platform and Project Manager developed in-house works

  33. OCS Implementation Costs(expressed in Thousand USD) CIAT Participation Cost – Up-front payment 2011  Approx. $ 35,000 2012  Approx. $150,000 without planning costs

  34. Current Implementation Plan

  35. Thank you!

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