41 / 88
41
10.1.3 Expenditures versus funding 2010-11
In 2011, income was generated from 126 projects and/
or individual contracts, compared to 143 in 2010, reflect-
ing a strategy of rationalisation. As of 31 December 2011,
GRID-Arendal’s work programme encompassed 88 active
projects.
In 2010 a funding reserve of MNOK 7.4 was carried over
from the previous year and distributed as shown in Ta-
ble 3. The funding reserve is calculated as payments from
external sources less the cost of completed or committed
work, and thereby represents the balance of funds avail-
able for delivering committed activities under the work
programme. In 2011 GRID-Arendal’s funding reserve was
28% lower than the previous year (i.e. from MNOK 7.4 in
2010 to MNOK 5.3 in 2011).
85
Total project expenditures
for the period (MNOK 95.3) exceeded the available fund-
ing (MNOK 86.5) by 9%, or MNOK 8.8. This shortfall is
covered by a combination of the funding reserve and an
allocation from GRID-Arendal´s equity reserve.
As stated in the 2010 MoFA report, the entire project port-
folio over the period 2006-2010 was reconciled during
2010. Completed projects were closed and, where neces-
sary, losses were recorded. A total of MNOK 3.8 was real-
located from the GRID-Arendal accumulated surplus from
2009-2010 to cover the verified shortfall.
A subsequent internal financial audit covering a longer pe-
riod (2007-2011) confirmed that the funds applied to the
verified shortfall were generated on the basis of the finan-
cial results reported for the period 2007-2009. Further, the
audit revealed that a certain proportion of the financial re-
sults during this period were recorded in error, which has
resulted in a proportional write down of GRID-Arendal’s
equity (ref. external audit dated 7 February 2012 Annex 3).
PROGRAMME 2008-09 TO 2011 Transfer 2010
(MoFA report
2008-09)
Adjustment
Actual Funding
2010/2011
Expenditure
2010/2011
Variance
(transfer into
2012)
MARINE ENVIRONMENT: A.
UNEP Shelf Programme
-291
-4
19,945
19,859
-209
MARINE ENVIRONMENT: B.
Management of the Marine
Environment
1,250
311
12,245
13,745
60
MARINE ENVIRONMENT: C.
Data Management, Visualization
and Tools
133
7
4,222
4,362
0
POLAR AND CRYOSPHERE
3,382
1,331
17,324
22,401
-364
ENVIRONMENTAL ASSESS-
MENTS AND INFORMATION
2,361
1,888
32,202
33,789
2,661
OTHER PROJECTS
536
-37
568
1,101
-34
TOTAL
7,372
3,496
86,505
95,257
2,116
85. The largest reserves are in the Environmental Assessments and
Information Programme, where projects are either funded biennially,
start up is delayed and awaiting matching external funding, or funding
has been paid in advance but the project activities have not yet com-
menced.
86. For 2012 the financial situation is reported by four divisions: – Ma-
rine, Polar and Cryosphere, Capacity Building and Assessments, and
Communication and Outreach.
87. The largest projects with secured external funding are Himalayan
Climate Change Impact and Adaption Assessment (HICIA), Many
Strong Voices, Interpol, Fredskorpset, UArctic, Deep Sea Minerals, Cas-
pian Information Centre, UNEP MAP.
10.2
Budget 2012
86
10.2.1 Projected funding
The Board-approved funding budget of MNOK 58.1 for
2012, distributed by programme area, appears in Fig-
ure 6 below. Secured external funding (i.e. contracted)
totals approximately MNOK 14.0.
87
The budget includes
MNOK 4.5 MoE core funding, MNOK 20.0 MoFA funding,
MNOK 6.7 UNEP funding and MNOK 27.0 other external
funding. In the event MoFA funding of MNOK 20.0 and
core funding from MoE of MNOK 4.5 is secured for 2012,
three-quarters of the total projected funding required for
2012 activities will have been obtained.
Table 3: Expenditure versus funding 2010-2011 and impact on funding reserves (KNOK)