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Funds Available to Cover Future Commitments

The Institute for Public Policy Research (IPPR) has implemented a robust system to manage liquidity risk and ensure sufficient funds to cover future commitments, maintaining a stable financial footing.

Liquidity Risk Management

According to a recent report, the IPPR has no significant interest-bearing assets. This means that its income and operating cash flows are not dependent on market interest rates, providing the organization with a level of financial stability and allowing it to focus on its core activities without worrying about fluctuations in interest rates.

Credit Risk Management

The IPPR has implemented a strategy to limit exposure to any one counterparty by only depositing cash with major banks that have high-quality credit standing. This approach helps mitigate credit risk and ensures the organization’s financial stability.

Foreign Exchange Risk

The IPPR is exposed to currency fluctuations due to its foreign donors and various currency exposures, primarily in US dollars and euros. However, the organization has not reported any significant losses or gains from foreign exchange transactions in recent years.

Financial Performance

The IPPR’s financial statements for the year ended February 28, 2011, show a surplus of N$462,064, which is a significant improvement over the previous year’s surplus of N$36,825. The organization’s income statement reveals a diverse range of funding sources, including grants from international donors such as:

Ford Foundation
South African Institute of International Affairs (SAIIA)
Canadian High Commission

Expenses

The IPPR’s expenses are also diversified, with major expenditures going towards:

Administrative costs
Project expenses
Travel costs

The organization has reported a reduction in administrative costs compared to the previous year, which is expected to result in increased efficiency and effectiveness.

Conclusion

Overall, the IPPR’s financial reports suggest that the organization has made significant progress in managing its finances and ensuring that it has sufficient funds to cover future commitments.