The financial planning process and executing the finance strategy to maximize the utilization of all financial support received within the bounds of ethics and regulatory compliance.

1. ICRISAT FINANCE
PRESENTATION GPM
2019
David Johnson
Director Corporate Services

2. DRIVER
•Intense scrutiny in the light of the Historical Financial Irregularities
and the Qualification by the External Auditors of the Financial
Statements FY2017
•New External Auditor FY2018 and Introduction of IFRS (international
Standards) (2nd year)
•Operational Budget Deficits in last years and Evolving fund
mobilization and management
INNOVATIONS
•1. Revised Budget Process (IBM)
•2. Burn Rate/Utilization Management
•3. Enhanced Discipline in closing process
•4. Global Linkages and Coordination
EXECUTIVE SUMMARY
Looking forward

3. Corporate Services - FINANCE – VISION
TRANSPARENCY –
ACCURACY –
PERIODICITY –
OVERSIGHT –
Include all revenue and expenditures, all agencies
record actual transactions and flows on time
All processes will be well defined and monitored over time
Financial flows would be thoroughly monitored
F
N
A
N
C
E

4. IBM - New Budget Planning 2019 process
for a balanced organizational budget
Enhanced utilization rates for
grants/projects for stable and sustained
utilization
1
FINANCE STRATEGY 2019
UPCOMING INITIATIVES
2
3
OUTCOMES
Timely Periodic Closing process for
enhanced financial management
4 Global Linkages, L&D and other initiatives
for improved people management
Minimize budget deficits: Effective financial management
through planning, programming, monitoring and evaluation
Effective funding utilization: Optimum utilization of funds
through the year, minimizing liability of returning unused funds
1
2
3 Comprehensive Monitoring: Fixed regular book closing
calendar to ensure accurate capture of organizational
financial flows
4 Enhanced global engagement – Improve coordination, skill
diversity and reduce disruption risks due to staff exit through
job rotation

5. 1. IBM - 2019
Decision Unit
•Research Units
•Non Research
Units
Decision
Packages
•Estimates
•Activities
Evaluation
•Review of Packages
•Consultation
Approval
•Review
•Approve
• The new budget mechanism - ICRISAT Budget Management (IBM) for 2019 - aims to replace the incumbent budget process
with a forward-looking data-driven budgeting process and create a requisite policy and control framework.
• The entire financial planning process is now structured with well defined roles, specific responsibilities and timeframes
for all organization (Research and Non Research and Global).
• Extensive consultations with RPDs and unit heads have been completed. Currently, executing the implementation of IBM
across Research/Non-Research. Task team in finance in place to support.
• Positive feedback received on the methodology and what the new method of budget management can bring – Transparancy.
• Implementationplanned to conclude by beginning March 2019. (2018 Budget Planning completed in March 2018)
IBM FRAMEWORK

6. 2. Managing ‘BURN’/‘UTILIZATION’ rates
• Burn Rate/UTILISATION is the rate at which finances allocated are expended by project/delivery unit, E.g.: $1000 per month.
• Monitoring and Managing ‘Burn Rate’ is an important management metric as it provides greater visibility into delivery of project activities and
productivity/availability of pro gram/delivery unit.
• Negative Impacts of lower than expected ‘burn’ rate…NCE, PI commitments and coverage, Operational, programme management, recovery of
overhead costs……Institutional spend…
• Scientist/expert time management and utilization targets are set in the Annual Workplanning and Programme Budget , either in terms of more
activities per project or taking up new projects.
• increase overhead recovery from projects and in turn recover indirect costs such as admin costs from grants rather than ICRISAT reserves
•Periodic review of burn
rate on projects
•Increase/decrease burn
rate
Monitor
‘Burn’ Rates
•Spread recovery
across funding type
•Reduce institutional
spend
Improve Programme
Management and
Cost Recovery
•Scientist/ Expert
Time Management
• Full Cost
Coverage and
Management
Effective
Management of Staff
Input and Costs
•Financial
Management
•Progrramme
Management
Programme
Management

7. 3. PERIODIC BOOK CLOSING
• Closing Books is an important activity of finance. It impacts multiple
functions such as External Audit, actual expenditure assessment etc.
• Traditionally at ICRISAT, guidelines around book closing are not enforced
firmly. This results in closing activity extending beyond acceptable closing
period.
• Absence of firm timelines results lack of discipline in terms of booking
transactions on time and undue pressure during year close to book all
transactions.
• By implementing periodic closing process, HQ will increased control over
enforcing booking discipline by unit finance managers and securing relevant
proofs at the appropriate time from reporting.
• Months 3 and 9 provide Soft close and provide limited flexibility in terms of
recording transactions within the system.
• Months 6 and 12 are Hard close periods and there is very limited flexibility to
make any edits post recording transactions
Month 3
• Soft Close
Month 6
• Harder
Close
Month 9
• Soft Close
Month 12
• Hard Close

8. 4. Global Linkages, L&D, Initiatives
• Global Network and Linkages: Combined reporting lines for finance functions. Centralized budget reporting systems.
• Knowledge Transfer: Engage and improve competencies of workforce through organized L&D plan and other initiatives such
as Job rotation etc.
• ERP and Digital Management: Increased use and transparency of web portal for budget management. Assessments and
introduction of ERP (Enterprise Resource Planning)…OCS ?
• Recruitment, Job Rotation and Mobility: The finance staff has been executing the same set of responsibilities for years,
spanning decades in some cases.
• Learning and Development: In consultation with Human Resources, Finance team would develop L&D calendar for the
global finance team and envisage other programs such as Job rotation based on staff interests and function requirements.

9. CONCLUSION
By revisiting existing processes we aim to look at where the organization is now, where we would like to
be in three to five years’ time and how we plan to achieve our financing targets.
By executing he Finance strategy 2019 we aim to maximize the utilization of all financial support
received within the bounds of ethics and regulatory compliance.
2019 Priorities
• Revised Budget Process (IBM)
• Burn Rate/Utilization Management
• Enhanced Discipline in closing process
• Global Linkages and Coordination

10. Corporate Services: Finance – Q&A

11. Thank You