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Transition to the (new) Business Model

Explore the transition to CIFOR's 2017 business model, financial stability, funding sources, and strategies. Learn about changes, challenges, and expectations in readying for the future environment.

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Transition to the (new) Business Model

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  1. Transition to the (new) Business Model Annual Meeting Bogor, 26 September 2016

  2. Outline • CIFOR Funding Transition • A view outside CIFOR • Transition to 2017 • Changes, challenges, expectation and readying for the future

  3. Remember this from last AM?

  4. Transition to 2017..

  5. Transition to 2017.. a different perspective

  6. A view outside CIFOR

  7. Evolution of CGIAR Funding 2011-15 Source: CGIAR 2015 Financial Report

  8. Center Performance 2015 Source: CGIAR 2015 Financial Report

  9. Indirect Costs 2015 Source: CGIAR 2015 Financial Report

  10. Center Financial Stability 2015 (adequacy of reserve in days) Source: CGIAR 2015 Financial Report CIFOR: Unadjusted for deficit in 2014-15

  11. Center Liquidity 2015(working capital in days) Source: CGIAR 2015 Financial Report

  12. Transition to CIFOR 2017

  13. The Transition Transition to 2017 (first cut) USD 37.7m revenue, W1/2: 7.1m FY 2012 USD 33.8m revenue, W1/2: USD 14.9 W1/2 and W3/B cover RS costs

  14. CIFOR Revenue Forecast 2017 USD 37.7m funding forecast • By distribution • By Source of Funding OH recovery is 9% and RS is 3%

  15. RS Costs 2017 (1st estimate) RS costs are USD 5.57m Our global presence alone costs USD 2.47m IT and Systems support costs another USD 0.8m RS recovery from W3/B is only USD 1.3m

  16. IU Costs (1st estimate) IU costs are USD 5.67m

  17. The Transition: some key changes • We are already raising 64% more W3/B than in 2012 • We can only charge up to the audited OH to W1/2 • We are at present charging way beyond that • Research Support costs will need to be covered by W3/B • There are not enough funds for co-financing • Uncollected CSP will have to be financed by Center funds

  18. The Transition: what we need to do • Fund raise : a constant and strong pipeline • a combination of big and small proposals/projects • Guidelines to assist with proposal budgeting • Staff time budgeted adequately against grants OH recovery from W3/B may remain around 10%, thus: • Be creative in converting some of our costs (RS and Indirect) into direct • Find ways to charge CSP as a direct cost • Provide adequate time to assist preparing and reviewing proposal • Budget and promise to deliver only what is possible within financial limitations of the grant • Deliver on our commitments

  19. The Transition: what to expect • Compliance matters will take front seat e.g. Financial Accounting guidelines in EU International Co-operation and Development projects (PAGODA guidelines) US NICRA • Donor conditionality will likely drive how we spend the funds we receive; almost all funds we now receive are with restrictions • Review and understand donor guidelines: • What are eligible costs and financial reporting requirements • What are staff cost accounting requirements • What are requirements to account for indirect costs • Additional audits (internal and external) • Review and implement audit / 7 pillar recommendations • Financial Reporting • Timely financial reporting and invoicing • Monitor AR and follow up of receivables

  20. Ready(ing) for the transition • A new Strategy 2016-2025 linking to the SDGs • A new org structure • The RDP team being strengthened • Operational policies, procedures • Key business processes (myCIFOR) • RDP • PMC • HR • Travel • Event Management • Reporting • Etc.

  21. Thank You!

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