Programme Cooperation Agreement 2012 – 2013

11 Financial report

11.1 Summary The biennium 2012-13 began with an overall satisfactory funding situation where 85% of the budgeted funding for 2012 was secured with mostly larger, long-term pro- grammes and projects. The efforts to build up larger GEF programmes caused challenges in the coordination of our overall programme implementation due to delayed approvals. Therefore GRID-Arendal had to invest more resources in the prepa- ration phases of the GEF projects than originally planned. These costs cannot be covered by the GEF project fund- ing for the implementation phase in 2014. However these GEF projects remain a key long-term strategic direction for GRID-Arendal raising its international profile, institu- tional knowledge and level of support to UNEP and key partners. There was a discrepancy in actual funding versus planned funding of –MNOK 22.7 determined in major part by the type of GEF funding that is required to flow through GRID- Arendal (Table 3). GRID-Arendal intends to better define and account for this type of “flow-through funding” as it prepares its future work plans and budgets.

Despite these fundraising challenges and other challenges related to the large fluctuations in the Norwegian currency both years, the foundation was flexible in the operations and able to keep the administration costs low at the same time. Therefore the biennium generated a financial sur- plus of MNOK 0.4 and the foundations equity amounted to MNOK 8.5, which is an equity ratio of 54% (2013 finan- cials not yet audited). 11.2 Programme funding 2012-13 The actual funding reported for the biennium 2012-13 does not equal the total long-term secured funding. Only funding to be spent on 2012-13 activities according to con- tracts, work programmes and budgets are reported as the biennium funding. Beyond the MFA funding of MNOK 40.0 and the core funding of MNOK 9.0 from the Ministry of Environ- ment (MoE), GRID-Arendal raised a total of MNOK 10.4 from UNEP and MNOK 48.3 from other external sources in 2012 and 2013, representing 55% of total funding of MNOK 107.7 for the biennium (up from 41% for the bien- nium 2010-11). Capacity Building and Assessment and Polar and Cryosphere collectively raised MNOK 35.7 leveraged (external) funding (UNEP and external sources). This equals 67% of total funding (up from 54% for the pe- riod 2010-11). The corresponding ratio for the Marine Programme is lower due to the stipulation that funding allocated to the Shelf Programme (Marine A) may not be lever- aged. Nevertheless, external funding for the Marine Programme equals 42% of total Marine funding. This includes the Shelf Programme where the external funding is only at 9% for the period.

Figure 1: Actual funding 2012-13 versus budget (MNOK)

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