CHAPTER 9 - RESOURCE MANAGEMENT

9.1 Introduction
9.2 Human Resources Management (HRM)
9.3 Financial Resources
9.4 Physical Resources
9.5 Management Information

9.1 Introduction

This chapter examines IPGRI's use of the resources it has in delivering the programme expected of it. It looks first at the human resources envelope and how effectively these resources are managed; it then reviews the financial resources and the accompanying financial controls in place in delivering the budgeted outputs and likewise comments on the physical facilities and the management information systems that enable resource use to be monitored.

9.2 Human Resources Management (HRM)

9.2.1 Growth in Staffing
9.2.2 Staff Profiles
9.2.3 Human Resources Management (HRM) Processes

9.2.1 Growth in Staffing

As at end-December 1996, there were 137 staff in IPGRI, including INIBAP. These included: 51 internationally recruited staff (IRS), 32 locally recruited professionals (LRP), 54 locally recruited support staff (LRS), 4 Honorary Fellows, and 9 temporary staff (mostly consultants). Six years ago IPGRI (without INIBAP) had a total of 60 staff. The growth in staffing, both past and projected, is as shown in Table 9.1:

Table 9.1: IBPGR/IPGRI Staffing 1991-2000 (including INIBAP)

Date	IRS	LRP	LRS	Total
December 1990	22	11	27	60
December 1996	51	32	54	137
2000*	68	53	73	194

* Projected staffing, including INIBAP, as per the Draft Medium-Term Plan 1998-2000.

The distribution of the current staff by department - i.e., management, PGR (headquarters and regions), SGRP and INIBAP - as well as by location and staff category is given in Table 9.2.

9.2.2 Staff Profiles

Of the 51 IRS in IPGRI as of December 1996, only 17 or one-third of the staff have been with the Centre more than 5 years. IPGRI's attractive reputation and location has enabled it to attract staff from a wide area. For example most vacancies advertised for positions in Rome receive over 70 applications for each position.

In terms of the gender mix, IPGRI is doing well. There are 11 women among the 51 IRS, which, at 22% of the total, compares favourably with most of the CGIAR Centres, including the two other Centres located in industrialized countries. In addition, a deliberate effort has been made by management to ensure that the screening and interviewing process is not biased against women. Since IPGRI's formation in 1994, most Staff Selection Panels have had a woman member as a matter of Centre policy, as have most lists of candidates interviewed. Analysis of recruitment data for 10 of the IRS positions filled since 1994 (excluding Associate Experts) shows that 3 women (including an internal candidate) were appointed.

Table 9.2: IPGRI STAFFING AS AT 31 DECEMBER 1996

DEPT	GROUP/REGION	LOCATION	REGULAR STAFF							GRAND TOTAL	EMPLOYED BY
			IRS		NAT PROFF	NAT SUPP	TOTAL	Hon Fell & Others	Temp Staff		IPGRI/INIBAP	HOST INST	OTHER	TOTAL
			STAFF	Ass. Sc.
Management	Office of the DG	Rome	3			3	6			6	6			6
	Office of the DDG - P	Rome	1		1	1	3			3	3			3
CGIAR/GR	SGRP	Rome	2			1	3			3	3			3
	IPR	Rome
HQ operations PGR - HQ	Fin & Admin	Rome	1		4	9	14		1	15	15			15
	Germplasm Maintenance	Rome	3	1	2	2	8		1	9	9			9
	Genetic Diversity	Rome	5			3	8		2	10	10			10
	Doc, Info & Public.	Rome	5	1	5	4	15		3	18	18			18
PGR - Regions	Europe	Rome	4		3	1	8		1	9	9			9
	SSA East	Nairobi	2	2	2	5	11	1		12	4	6	2	12
	SSA West	Cotonou	1		1		2			2	1	1		2
	APO (Singapore)	Singapore	3	2	1	6	12	1		13	7	6		13
	APO (China)	Beijing			2	2	4			4	0	4		4
	APO (India)	New Delhi			2	2	4			4	0	4		4
	WANA	Aleppo	2		1	2	5	1	1	7	3	4		7
	Americas	Cali	4	1	2	5	12			12	5	7		12
	Subtotal IPGRI & SGRP		36	7	26	46	115	3	9	127	93	32	2	127
INIBAP	HQ	Montpellier	3		5	3	11			11	10		1	11
	APO (Phillipines)	Los Banos	1			1	2			2	1	1		2
	LAC (Costa Rica)	Turrialba	1	1		1	3			3	2	1		3
	LAC (Honduras)	La Lima		1			1			1			1	1
	SSA (Cameroun)	Douala		1			1			1			1	1
	Transit Centre (Belgium)	Louvain			1	3	4	1		5			5	5
	Subtotal INIBAP		5	3	6	8	22	1	0	23	13	2	8	23
	TOTAL		41	10	32	54	137	4	9	150	106	34	10	150

January 24, 1997

The Panel also reviewed the age and nationality profile of the IRS staff of IPGRI, both at headquarters, in the regional offices (including INIBAP). Although a few of the staff are in their fifties or above, the large majority are mid-career professionals in their late thirties and/or forties, including those posted at the five regional offices. In terms of regional origin, a majority (46%) of the IRS are from Europe (excluding the Associate Experts who are paid by European Donors and are therefore nationals of the donor countries); with the other regions represented as follows: North America 14%, Japan and Australia 4%, and all developing countries combined only 25%. The Panel's overall impression is that the age/experience profile of IPGRI staff is not an issue for either the Centre's donors or collaborators.

However, in view of the growing availability of seasoned professionals from many developing countries (in Asia and Latin America particularly), the inevitable need to fill vacancies resulting from natural turnover, and the Centre's expansion plans resulting in additional IRS staff recruitment in the next few years, the Panel suggests that IPGRI Management make a concerted effort to employ well-qualified internationally recruited staff (not only nationally recruited professionals) from non-European regions and developing countries; and that the IPGRI Board encourage and periodically monitor the progress of such efforts.

9.2.3 Human Resources Management (HRM) Processes

9.2.3.1 Performance management
9.2.3.2 Professional development
9.2.3.3 Staff remuneration

9.2.3.1 Performance management

The introduction of an effective performance assessment and management process is a major priority at IPGRI. The current performance appraisal system, introduced some two years ago, is based on a yearly "performance agreement" between the staff member and his/her supervisor, and a mid-year and annual assessment of performance against the agreed objectives, activities and targets/milestones. Staff are then rated on a 5-point performance scale; and once the performance rating has been finalized by senior management, it is expected to be used for determining salary increases for individual staff. There is, as yet, no formal staff promotions policy.

In practice, the new system did not work as well as intended on its first application and this is a common experience with the introduction of such systems. It suffered from a lack of clear guidelines and uniform standards for determining the performance ratings for individuals, as well as difficulties in ensuring internal equity across departments and work groups. Management and selected representatives of staff are working together on a Task Force chaired by the Director, Finance & Administration to introduce the changes needed before the next performance assessment cycle starts on April 1. The recruitment of a professionally qualified head of the human resources function is also underway, and is expected to add much-needed skills. The Panel commends these efforts.

9.2.3.2 Professional development

Since many staff members at IPGRI are in mid-career and are on 3-5 year contracts (including the locally hired staff), it is natural that they are concerned about professional development opportunities. IPGRI supports, on a case-by-case basis, the professional development of staff via short-duration external training programmes, conference and seminar attendance etc.; but does not have a formal training policy (including a policy in respect of sabbaticals) to systematically guide such efforts.

9.2.3.3 Staff remuneration

Over the past few years, IPGRI's Board and management have given considerable attention to the issue of staff remuneration in an attempt to bring the salary and benefits package in line with (perceived) market conditions. A major revision of the basis for determining the cost-of-living allowance (COLA) paid to IRS was announced by the Board in 1996 and resulted in reduction of benefits to some staff by as much as 8% with the (predictable) complaints by the 30% of IRS staff affected by the change. Subsequent to this revision, a special study of IRS remuneration at CGIAR-supported Centres in developed countries has been undertaken - as has a market survey of salaries paid to locally recruited staff in Rome. While the results of these subsequent surveys are not known to the Panel, nevertheless the Panel suggests that Management continue to strive toward a salary/reward system that is fully in line with surveyed market conditions, and is perceived by staff to be fair and transparent - particularly so in light of the recent Board decision to link annual pay increases to performance assessment, as discussed above.

9.3 Financial Resources

In the five years since the last review, IPGRI's budget has doubled in real terms and for 1997 stands at US$ 21 million for the Research Agenda, inclusive of INIBAP and SGRP. The budget is projected to increase by a further 36%, in nominal terms, to US$ 28.6 million by the year 2000. A quick overview of IPGRI's financial position over the past six years is shown in Table 9.3.

From the Table it can be seen that much of IPGRI's growth since 1994 has come from Restricted Core funding - with the concomitant need to separately report on the use of such funding to such donors. The additional large jump in the Research Agenda in 1997 results not only from additional fund-raising successes, but also from the CGIAR-approved decision to reclassify Non-Agenda funded research as part of the research agenda. The management implications of this shift in funding have been discussed in Chapter 8 above, and in what follows below, the Panel is commenting on the efficacy of the financial systems and procedures (in place or planned) to control these expenditures.

The Panel reviewed the management and financial controls, including the budgeting processes, and how such information was presented to ensure itself that the growth in resource use was matched by concomitant increases in management capabilities. Additionally, the Panel met with the Internal and External Auditors ¹ to get their external perspective on the integrity and capabilities of the Centre's financial processes.

¹ At present, the international firm of KPMG is both the Internal and the External auditor.

Table 9.3: Key financial data for the period 1991 to 2000 IPGRI and INIBAP consolidated ($ '000)

		actual						est	proposed
		1991	1992	1993	1994	1995	1996	1997	1998	1999	2000
REVENUE
	Unrestricted	9,562	10,568	10,766	10,768	11,771	12,681	13,888	15,203	15,590	16,038
	Restricted	993	588	409	1,218	2,973	4,427	7,097	10,808	12,869	13,015
	Total Research Agenda	10,555	11,156	11,175	11,986	14,744	17,108	20,985	26,011	28,459	29,053
	Non Agenda	664	1,606	2,819	3,292	5,469	3,466	648	0	0	0
	Total Revenue	11,219	12,762	13,994	15,278	20,213	20,574	21,633	26,011	28,459	29,053
OPERATING EXPENSES
	Research Programmes	5,320	5,986	5,381	8,887	11,154	11,905	12,859	15,751	17,719	18,049
	Conferences and Training	499	1,052	1,352	769	1,348	685	1,116	1,247	1,386	1,407
	Information Services	1,155	1,435	1,853	2,055	2,939	2,614	2,669	3,170	3,506	3,577
	General Administration	2,014	1,777	3,877	1,996	1,952	2,181	2,650	2,720	2,824	2,910
	General Operations	1,677	2,023	1,192	1,555	2,180	2,268	2,339	2,420	2,524	2,610
	EPMR						300
	Write-off of fixed assets			65
	Capital Expenditure		320
	Total	10,665	12,593	13,655	15,327	19,573	19,953	21,633	25,308	27,959	28,553
	Surplus/(Deficit)	554	169	339	(49)	640	621	0	703	500	500
	Allocated as follows:
	Operating fund	340	1	339	(14)	233	665	0	703	500	500
	Capital fund	214	168		(35)	407	(44)	0
BALANCE SHEET ELEMENTS
	Current Assets	7,844	6,663	8,777	13,898	12,167	12,474	12,402	13,094	13,974	14,654
	Investments						214	214	214	214	214
	Fixed Assets	648	768	648	550	651	1,688	1,783	2,493	2,513	2,533
	Total Assets	8,492	7,431	9,425	14,448	12,818	14,376	14,399	15,801	16,701	17,401
	Current Liabilities	8,492	3,175	5,307	10,381	8,111	8,655	8,720	8,749	9,169	9,389
	Working Capital	(648)	3,488	3,470	3,517	4,056	3,819	3,682	4,345	4,805	5,265
	Long-term Liability	22	7				393	351	321	301	281
	Fund Balances
	Operating Fund	2,950	2,246	2,985	2,999	3,232	3,297	3,297	4,000	4,500	5,000
	Capital Fund	489	335	485	518	824	343	248	238	218	198
CASH BALANCES
	Opening balance	7,110	5,573	4,096	6,683	11,616	10,117	9,235	7,055	7,555	8,055
	Receipts	10,422	12,506	14,534	14,895	20,505	19,775	22,008	26,000	28,500	29,300
	Payments	(11,959)	(13,983)	(11,947)	(9,962)	(22,004)	(20,657)	(24,188)	(25,500)	(28,000)	(28,800)
	Closing Balance	5,573	4,096	6,683	11,616	10,117	9,235	7,055	7,555	8,055	8,555

IMPORTANT NOTES: 1. In 1991 and 1992, IBPGR - under FAO - prepared the financial statements using commitment accounting. From 1993 onwards, IPGRI prepared the financial statements using the accrual method. 2. The Cash Balances figures reflect cash receipts and disbursements of IPGRI and INIBAP combined

In short, the Panel was impressed with the integrity of the financial management of the Institute. The Centre has had, and continues to have, excellent personnel in the Finance and Administration department and the present Director has taken the lead in upgrading the budget preparation, general accounting systems, and personnel administrative capabilities (including the payroll accounting system) in the 14 months that he has been at IPGRI. Much is being done to upgrade the quality (i.e. conciseness, appropriateness, and the elimination of excessive supply) of these data and to further improve accuracy and relevance (see Section 9.5.1)

The External Auditors confirmed the above observations and issued "clean" reports and Management Letters for 1995 and 1996. There were no outstanding issues. Management has now asked KPMG to also undertake 'operational' audits to ensure that funds are being used as efficiently as possible.

The Internal Auditors are half-way through a two-year, Board-approved cycle of internal reviews of IPGRI's operations for compliance with established procedures. They have issued their Phase One Report. While the report makes a number of recommendations for further improvements that, as reported to the Board in BOT8, are being, or already have been, implemented, nevertheless, importantly the Report confirmed compliance with established procedures. Phase Two is now commencing.

9.4 Physical Resources

IPGRI's current headquarters facilities are just adequate for its needs. Negotiations to enable IPGRI to lease new office space at a proposed scientific complex at Maccarese - close to Rome's Fiumicino Airport - have been ongoing for some time. These negotiations are by no means finalized and may yet collapse. Should the Maccarese proposal fall through, a new site search process may prove necessary, or, alternatively, the current lease arrangements will need to be re-negotiated to provide added space, since there can be little expansion within the currently leased space. A move out of the present facilities could substantially reduce the unit costs for space, and provide room for expansion.

IPGRI's office facilities in its field locations are said to be quite satisfactory: some involve space-sharing agreements with other CGIAR Centres (IITA, ICARDA, ICRAF, ICRISAT, and CIAT) and others have been set up with host governments in France, Belgium, Malaysia, China, India, and the Philippines.

IPGRI appears to be well served by computing facilities and the staff charged with the responsibilities for maintaining the hardware and software and with keeping staff current on latest developments are themselves competent and providing good service levels to the Institute.

Given its unique mandate, and modus operandi, IPGRI has not had to invest in major capital items as other Centres have done. Its total fixed asset base, this year, is around U$ 1.7 million - U$ 1 million of which represents the value of the new INIBAP office facilities in Montpellier, and the rest is office furniture and computing equipment. There are no asset management issues at the Centre.

IPGRI's current HQ office facilities cover two floors of an office building in Rome. The facilities are clean and well maintained. The physical layout whereby Senior Management and the Finance & Administration Department are housed on the first floor, and the 'operations' staff are located on the floor above, does not encourage an easy flow of communications between operational staff and senior management - a matter that IPGRI may want to carefully review as it lays out its offices in a new location. For this, the Panel encourages management to consult the extensive body of knowledge now available on the linkages between physical office layouts and the efficiencies of communications - including proximity studies, types of partitioning, and other sound attenuation ideas, and office size/hierarchical ranking studies - to significantly upgrade the efficiency and effectiveness of any new IPGRI facility.

9.5 Management Information

9.5.1 Financial Information
9.5.2 Non-Financial Information

9.5.1 Financial Information

The Panel notes that financial information provided staff is timely and accurate. The introduction of the upgraded (Windows-based) accounting package is expected, when completed, to enable Finance & Administration to provide much improved, disaggregated financial data on each of the 20 projects (and the individual activities that comprise each project) that comprise IPGRI's total project portfolio. Part of this disaggregation involves, appropriately, improved allocation of staff time and 'overhead' costs to each of the 20 major projects so that project managers can get a more accurate picture of the real 'costs' of their individual projects, by activity, and Senior Management can better gauge the cost-benefit characteristics of the project set. Once fully implemented, this project-management data will be available by mid-month following the end of the reporting period. As mentioned in Chapter 5 above, the potential integration of INIBAP's financial data and reporting requirements into IPGRI's central accounting package will also save staff time, and improve accuracy.

Information on budget vs. actual expenditures both by project and by object of expenditure is available to those tasked with managing the various components of IPGRI's total activities. Once installed, the Windows-based version of the present DOS-based Accounting system will provide a much-needed capability to generate management reports that are not only timely and accurate, but also concise, and appropriately summarized to the needs of the managers concerned.

It is noted that the designated leader of the Audit & Operations Review Task Group of the Board receives a concise overview of the Institute's financial status each month, but that this information is not routinely passed to all Members of the Board. With the increasing emphasis on the requirement that Boards take their fiduciary responsibilities more seriously, the Panel suggests that the full Board should have monthly access to, and be able to ask questions on, this vital information.

9.5.2 Non-Financial Information

The introduction of operational audits by KPMG - as discussed above - will add a new and important dimension to the financial reporting already in place, since such audits examine whether there are fundamentally better, more efficient, less costly, or more productive ways of going about the Institute's regular business activities. The Panel understands from staff that an early focus of attention of these audits will be the travel functions at both HQ and Regional offices.

Management is currently developing a reporting system for the many Letters of Agreement-based Contracts that addresses issues of quality and 'outputs' so that Project, and Activity Managers can equate quality and outputs to financial inputs and determine progress against planned activity levels. With over 200 LOA-based contracts now being concluded annually, this initiative is strongly endorsed by the Panel.

The Panel notes the ongoing initiatives in many areas of IPGRI's financial, human resource, and other management reporting operations and commends Management for its efforts in these important areas.

It therefore concludes that Donors can be assured that there are adequate financial and other managerial processes in place to assure them that their funds are being adequately managed and efficiently utilized.