Programme Cooperation Agreement 2014: Final Report for the Period 01 January 2014 to 01 March 2015

8. Financial report for 2014

Financial summary

During 2014 GRID-Arendal operated with staff rates from junior level to senior experts in the range ofNOK654 toNOK 908 per hour. In order to be internationally competitive and attract external funding, the foundation has not increased the staff rates or the 13% mark-up on costs for the last six years although costs have increased. In a few cases, such as for EU and EEA externally funded projects, rates are lower than those given above. For travel and accommodation public Norwegian rates are used (“Statens Reiseregulativ”). The actual funding reported for 2014 does not equate with the total long term secured funding. Only funding to be spent on 2014 activities according to contracts, work programmes and budgets are reported as 2014 funding in this report. Beyond the MFA funding of MNOK 27.0 and the MCE funding of MNOK 4.5 in 2014, GRID-Arendal raised a total of MNOK 9.0 from UNEP and MNOK 11.4 from other external sources. This represents 39% of the total funding of MNOK 51.9 (see Table 1). Programme funding 2014

Funding for GRID-Arendal’s 2014 work programme with the Ministry of Foreign Affairs (MFA) was MNOK 27, with the Framework Agreement extending over a 14-month period ending February 2015. In addition the foundation received MNOK 4.5 core funds from the Ministry of Climate and Environment (MCE). At the beginning of 2014, 58% (or MNOK 19.3) of the budgeted external funding from UNEP and other external clientshadnot yet beencontracted.Despite these fundraising challenges, the 2014 project expenditures ended at MNOK 52.0, which was only MNOK 2.4 less than budgeted. The variance is mainly related to delayed implementation of three large projects. Figure 1 shows the amounts and sources of funds for the six thematic programme areas. Overall the foundation generated a financial surplus of MNOK 0.4 for 2014, which was MNOK 1.1 less than budgeted. The equity balance was NOK 7.3 at the end of 2014, which equals an equity ratio of 30%. The financial results have been audited by an external auditor (KPMG).

-­‐ 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

1-­‐Environmental Crime

2-­‐Transboundary Waters

3-­‐Suppor  to  ODA countries

4-­‐AdapFon  to Climate  Change

5-­‐Marine  and Coastal  Resources

6-­‐Other

CORE MCE

UNEP

External

MFA

Figure 1: Actual 2014 funding by source (MNOK)

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