CGIAR Financial Concepts and Terminology

The Research Agenda. The research agenda Comprises the bulk of CGIAR Center projects and activities. Components may be executed by one or more Centers, and/or jointly with NARS, AROs, and NGOs. The Technical Advisory Committee (TAC) develops the Agenda in collaboration with Centers and recommends appropriate work programs for CGIAR financing. Projects included in the Agenda must meet four criteria. They must:

• be aimed at producing research or research-related (including training) international public goods;
• be of high priority in terms of accomplishing the CGIAR's goals and objectives;
• have acceptable probabilities of success; and,
• have no alternative producers or sources of supply with suitable costs or reliability.

Non-Agenda is activity which a Center is qualified to undertake because of experience, location, size, or other factors, but which does not meet all of the criteria for inclusion in the Agenda.

Financing the Agenda. Once endorsed by the Group, the Agenda is eligible for Member financing, including the World Bank. The financial requirements are approved on the understanding of their being the minimum needed to implement the Agenda. All Centers and partners should seek to maximize financing, and there is no disincentive to do so. Mechanisms to ensure that the Agenda is fully financed, have evolved from earlier unsuccessful attempts to "guarantee" full financing solely using World Bank funds. Recently, changes have been made in the financing arrangements whereby Members, instead of the World Bank alone, can act to collectively fill financial gaps arising in the course of the year. Most Members now channel all their support to the Agenda. This is likely to lead to a more competitive search for resources, but also higher overall funding.

Financing modalities. Centers are primarily financed by annual grants provided by CGIAR Members. A modest contribution is also available from Centers' annual miscellaneous income (which includes contributions from ad hoc sources/donors who are not CGIAR Members). The nature of financing does not determine whether a project is part of the Agenda. Member financing may be directed to the CGIAR, Centers, programs and projects with different degrees of specificity:

• to the CGIAR with flexibility regarding their allocation based on CGIAR priorities,
• to Centers without any restrictions (with or without attribution requirements), and
• targeted to specific Center project/sub-project/activity as defined in a contractual agreement.

All Members are expected to contribute to the full cost of operations including a proportionate share of administrative costs. The World Bank contribution is always made available as general CGIAR support. All Members are encouraged to provide their support in a similar manner. Members disburse contributions based on their financial procedures, directly to Centers throughout the year. The CGIAR Secretariat provides disbursement services, through the World Bank, to Members who prefer to make a single disbursement to the CGIAR.

CGIAR Agenda Matrix. The distribution of financial resources is presented as the CGIAR Agenda matrix, with Centers comprising the rows and CGIAR activities the columns. Activities (presently 19 in number) are aggregated into groups -- the five CGIAR undertakings. The matrix is constructed by fully allocating Center projects, the main Center unit of activity with objectives, outcomes and milestones, to the CGIAR activities. (A CGIAR project portfolio of about 300 projects, with common definitions and concepts used by all Centers, is in effect for 1997). The CGIAR has identified several thematic areas as systemwide programs to respond to specific challenges and to foster collaboration among Centers and deepen it with other partners. These are presented in a supplementary matrix.

Implementation. Centers often implement the Agenda in a partnership mode -- i.e. joint ventures with advanced institutions, NGO's, and NARS. The joint venture may involve shared tasks at different points on the research continuum, i.e. upstream laboratory-based research as well as applied field-level experimentation. Funding of such joint ventures is financing for the CGIAR Research Agenda.

Setting the Agenda (MTM - May). At the Mid-Term Meeting, TAC proposes the research agenda for the following year based on interaction with the Centers. The Center proposals are based on the research directions agreed upon during a tri-ennial consideration of Center Medium Term Plans. (effective 1998 financial year) The Group debates TAC's recommendations, taking into consideration advice from the Finance Committee on funding prospects. The Group endorses the proposed Research Agenda and the financial allocations, with or without modification. Following MTM, the Centers and the CGIAR Secretariat solicits overall financing indications from Members.

Preparation of Financing Plans (June - September). Centers prepare their individual financing plans for the following year based on specific financing information solicited through bilateral contacts with Members and past trends. World Bank funding is included on a percentage basis of funding secured by Centers-9 percent in 1997 and 12 percent in 1998.

Confirmation of Program Content (mid-September) Centers indicate to TAC and the CGIAR Secretariat the changes in the research agenda allocations resulting from interactions with individual Members, and their implications to the program content of the Research Agenda. TAC reviews the program content and highlights any significant changes for action by the Group at ICW.

Review of Financing Plans (end-September - October) Following the confirmation of program content by TAC, the Finance Committee reviews Center financing plans, including the contribution of the World Bank, for consistency and feasibility, based on funding information solicited by the CGIAR Secretariat.

Approval of the Research Agenda and Financing Plan (ICW - October). At ICW, the Group considers the finalized Research Agenda and financing plan for the following year, leading to the Group's approval of its financing and implementation.

Disbursement and Implementation (January - December). Following approval by the Group at ICW (in the previous year) of the Research Agenda and financing plan, Centers commence implementation of the Agenda on January 1 of the current year, and Members disburse funds to the Centers. Of the World Bank funds, half are distributed in January. The remaining half are disbursed in June, following a review at the MTM by the Finance Committee of updated Center financing plans.

Accountability (Yead End). At the end of the current year, Centers prepare financial statements showing the use of funds received in support of the Research Agenda. As well, Centers confirm the use of funds provided by the World Bank and refund any overcommitted funds to the Bank.