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For IWMI, years 2000-2003 experienced a
spurt in its activities and funding when IWMI grew in size and
also repositioned itself as a key player on the global stage. We
now are in the process of consolidation. Apart from the healthy
growth rate and consolidation of advances of recent years, this
also means a continuous change process to keep pace with the rapidly
changing external world. Activities in Ghana and Ethiopia continue
to increase, with Nairobi office shifted to Ethiopia in 2006. New
projects have come on stream in South Africa, Ghana and India,
particularly.
The period 2000-2003 was the period of rapid growth for IWMI that
registered an average annual increase of 35% in its funding. The
period 2004-2005 has been a period of relative consolidation, with
an increase in funding for core IWMI activities by 7% in 2004,
14% in 2005 and projected increase of 9% in 2006. In 2005, IMWI
recorded total revenues of $30.09 million, an increase of 30% over
2004, including $5.6 million for non-IWMI implemented CPWF funding
(and consequently a total of $24.5 million for “core-IWMI”).
The revenue included $8.42 million of unrestricted grants, $1.97
million in program restricted grants, and $19.71 million of restricted
grants and other revenue. The unrestricted funding increased by
10% over 2004.
Expenses grew at a similar rate with
the income to accommodate the growth and expansion. IWMI’s
overhead as a percentage of total costs remained at 18% in 2005
as compared 23% for 2001 and 29% for 2000. This is by and large
the result of relatively low increase in support function cost
in comparison to the increase in operations that more than trebled
in the past years.
IWMI’s total reserves at the end of 2005 are $4.6 million,
up from $4.2 million in 2004, mainly due to a net surplus of $0.4
million in 2005 The reserves are projected to increase to $5.1
million at the end of 2006. IWMI’s financial position is
stable and continues to improve.
CGIAR has developed four parameters to measure financial health
of the centers. These are - Long term financial stability (recommended
range 75-90 days), short term solvency (recommended range 90-120
days), Efficiency of Operations (Indirect cost to Direct cost)
and Cash Management on restricted operations ratio. IWMI’s
short term solvency ratio is 96 days and long term financial stability
ratio is 71 days at the end of 2005, projected to increase to 75
days at the end of 2006. The efficiency of operations ratio is
22% as on 2005, projected to be at the same level in 2006 and the
cash management on restricted operations is 25%. Most of these
ratios are within the acceptable range and IWMI is committed to
ensure the adherence to these levels in future as well.
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