International Centre for Trade and Sustainable Development Geneva

International Centre for Trade and Sustainable Development Geneva Report of the statutory auditor to the Governing Board on the financial statements 2012

Report of the statutory auditor to the Governing Board of International Centre for Trade and Sustainable Development Geneva Report of the statutory auditor on the financial statements As auditor, we have audited the accompanying financial statements of International Centre for Trade and Sustainable Development, which comprise the balance sheet, statement of revenue and expenses, statement of cash flows and notes, for the year ended 31 December 2012. Management s Responsibility The management is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The management is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, Case postale, 1211 Genève 2 Telephone: +41 58 792 91 00, Facsimile: +41 58 792 91 10, www.pwc.ch PricewaterhouseCoopers SA est membre d'un réseau mondial de sociétés juridiquement autonomes et indépendantes les unes des autres. 1

Opinion In our opinion, the financial statements for the year ended 31 December 2012 comply with Swiss law, the accounting policies disclosed in Note 2 and the association s articles of association. In addition, we confirm that an internal control system exists which has been designed for the preparation of financial statements according to the instructions of the association s Governing Board. We recommend that the financial statements submitted to you be approved. PricewaterhouseCoopers SA Philippe Tzaud Audit expert Auditor in charge Louis Massicotte Geneva, 25 March 2013 Enclosure: - Financial statements (balance sheet, statement of revenue and expenses, statement of cash flows and notes) 2

BALANCE SHEET 31 December 2012 and 2011 ASSETS Notes CHF CHF Current assets Cash and current accounts 131'005 741'709 Accounts receivable and prepayments 3 90'153 88'272 Accrued core and thematic contributions 6 2'526'710 306'900 Accrued project and programme contributions 7 151'398 163'062 Total current assets 2'899'266 1'299'943 Fixed assets IT equipment 4 2'166 0 Total fixed assets 2'166 0 TOTAL ASSETS 2'901'432 1'299'943 LIABILITIES Current liabilities Payables and accrued expenses 2'306'089 1'341'408 Deferred project and programme contributions 5 36'665 Deferred core and thematic contributions 5 593'668 0 Total current liabilities 2'899'757 1'378'073 Reserve funds Fund balance 1'675 ( 78'130) TOTAL LIABILITIES AND FUNDS 2'901'432 1'299'943

STATEMENT OF REVENUE AND EXPENSES AND FUND BALANCES FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 REVENUE Notes CHF CHF Core and Thematic Contributions 8 6'437'077 6'781'692 Project and Programme Contributions 9 1'261'435 730'367 Other income 10 24'713 181'148 Total revenue for the period 7'723'225 7'693'207 EXPENSES Personnel related costs 5'389'865 5'402'188 Dialogues 795'309 698'908 Publications and communication expenses 149'786 156'038 Research and technical services 575'081 646'120 Office rent and utilities 262'444 245'006 Professional fees 108'019 126'174 IT support 223'530 129'196 Currency exchange losses / (gains) 16'194 ( 71'122) Other general and administrative expenses 122'109 234'672 Depreciation and amortization expense 4 1'083 30'140 Total expenses for the period 7'643'420 7'597'319 Funding variation for the period 79'805 95'888 Fund balance at beginning of period ( 78'130) ( 174'018) Fund balance at end of period 1'675 ( 78'130)

STATEMENT OF CASH FLOW FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 Notes CHF CHF Cash flow from operating activities Funding variation for the period 79'806 95'888 Adjustment for depreciation and amortization 4 1'083 30'140 Operating (Deficit)/Surplus before working capital changes 80'889 126'028 Working capital changes: (Increase)/Decrease in accounts receivable and prepayments 3 ( 1'881) ( 34'889) (Increase)/Decrease in accrued core/thematic contributions 6 ( 2'219'810) 325'823 (Increase)/Decrease in accrued project/programme contributions 7 11'664 ( 163'063) Increase/(Decrease) in payables and accrued expenses 964'679 ( 420'574) Increase/(Decrease) in deferred project/programme contrb'ns 5 ( 36'665) ( 334'846) Increase/(Decrease) in deferred core/thematic contributions 5 593'668 ( 200'000) Total change in working capital ( 688'345) ( 827'547) Net cash (Used) by operations ( 607'456) ( 701'519) Cash flow from investing activities Acquisition of fixed assets 4 ( 3'248) 0 Net cash (Used) in investing activities ( 3'248) 0 Net (decrease) increase in cash and cash equivalents ( 610'704) ( 701'519) Cash at the beginning of the period 741'709 1'443'228 Cash at the end of the period 131'005 741'709

December 31, 2012 Note 1 - Organization The Founding Statutes of the International Centre for Trade and Sustainable Development (hereinafter called "Centre") were adopted on June 20,1996. The Centre is constituted in Geneva as an Association under Article 60 of the Swiss Civil Code. The goal of the Centre is to contribute to the achievement of sustainable development in its economic, environmental, social, and political dimensions. The Centre s objectives are to: a) Contribute to a better understanding of development and environment concerns in the trade policy process; b) Enable participation in trade policy making, with special attention to the needs of those who are formally excluded or excluded, de-facto, for reasons of funding, geography or political conditions, including NGOs, other civil society organizations, developing country participants, and other key actors; c) Stimulate the interest of NGOs and other key actors in trade and sustainable development; d) Bridge the gap in information and communication between the NGO and trade policy communities. Note 2 - Basis of presentation and significant accounting policies These financial statements have been prepared by applying the following significant accounting policies on a consistent basis: a. Historical cost basis These financial statements have been prepared under the historical cost convention. b. Accruals basis Expenses are accrued in the period when the associated benefits are received. c. Revenue recognition - contributions Core and thematic contributions refer to donations that have not been earmarked for a specific project or programme. Core and thematic contributions are recorded as revenue in the period to which they contractually relate, regardless of when received.

December 31, 2012 Note 2 - Accounting policies (continued) Project and programme contributions refer to donations that the donor stipulates should fund a particular project or programme of the Centre and are recognized as revenue over the period to which they contractually relate. Project and programme revenues are periodically recognized in relation to the estimated percentage of completion of the project or programme. d. Revenue recognition - other Revenue from the sale of publications is recorded when the publications are dispatched to the customer. Revenue from the sale of services is recorded in the period during which they are provided. e. Fixed assets - tangible assets Tangible assets exceeding the amount of CHF 1,000, are recorded at cost and are depreciated on a straight-line basis over the useful economic life of the asset. Smaller capital assets and IT Software assets are expensed when acquired. f. Taxes At the present time, no Swiss income or capital taxes are levied against the Centre and, accordingly, no provision for such taxes has been recorded. The Centre was exempt from Swiss income and capital taxes during the period ending 31 December 2012. The Centre is not a Value Added Tax ( VAT ) registrant in Switzerland and is therefore not entitled to recover VAT on purchased goods and services. g. Foreign exchange differences Transactions denominated in currencies other than the Swiss Franc are translated into Swiss Francs at the rate of exchange at the date of the transaction. Any differences arising upon the settlement of transactions in foreign currencies are recorded as foreign exchange gains or losses in the Statement of Revenue and Expenses. Period end balances for assets and liabilities held in foreign currencies are converted to Swiss Francs at the market rate. Any differences are recorded in the financial statements as gains or losses in the Statement of Revenue and Expenses and Fund Balances.

December 31, 2012 Note 3 - Accounts Receivable and Prepayments CHF CHF Staff loans receivable 77'925 37'041 Bridges Publications Sarl 11'217 40'890 Other receivables and prepayments 1'011 10'341 90'153 88'272 Note 4 - Fixed assets Office IT equipment furniture Total CHF CHF CHF Cost At beginning of the period 388'666 210'028 598'694 Acquisitions during the period 3'248 3'248 Cost at end of period 391'914 210'028 601'942 Depreciation At beginning of the period 388'666 210'028 598'694 Charge for the period 1'083 1'083 Accumulated depreciation 389'749 210'028 599'777 Net Book Value 2'166 0 2'166

December 31, 2012 and 2011 Note 5 - Deferred Revenue Core and thematic contributions (Balance Sheet) CHF CHF Government of the Netherlands (DGIS) 593'668 0 593'668 0 Programme and Project Contributions Government of Brazil (Permanent Mission to WTO) 0 25'000 Government of Taiwan (Permanent Mission to WTO) 0 11'665 0 36'665 593'668 36'665 Note 6 - Accrued Core and thematic contributions (Balance Sheet) CHF CHF Government of United Kingdom (UK) (DFID) 2'526'710 0 Government of Finland (Ministry of Foreign Affairs) 0 306'900 2'526'710 306'900 Note 7 - Accrued Project and programme contributions (Balance Sheet) CHF CHF Government of Switzerland (SECO) 50'000 115'250 Global Green Growth Initiative 46'090 0 United Nations Environmental Programme 55'308 0 Government of Switzerland (FOEN) 0 10'000 Deutche Gesellschaft für Technische Zusammenarbeit (GiZ) 0 8'617 German NGO Forum Environment and Development 0 24'620 COP17 Durban Symposium 0 4'575 151'398 163'062

December 31, 2012 and 2011 Note 8 - Core and thematic contributions (Income statement) Core and thematic contributions recognised during the period include the following : CHF CHF Government of the Netherlands (DGIS) 1'187'335 1'198'439 Government of United Kingdom (UK) (DFID) 0 2'390'234 Government of Finland (Ministry of Foreign Affairs) 296'275 0 Government of Denmark (Ministry of Foreign Affairs) 563'357 580'820 Government of Sweden (SIDA) 1'863'400 2'147'400 Government of Norway (Ministry of Foreign Affairs) 0 157'899 Accrued Core and thematic contributions (See Note 6) 2'526'710 306'900 6'437'077 6'781'692

December 31, 2012 and 2011 Note 9 - Project and programme contribution revenues (Income statement) Project and programme contributions recognized during the period include the following: CHF CHF Major Project & Programme Contributions Government of Denmark (Ministry of Foreign Affairs) 484'521 Government of Norway (Ministry of Foreign Affairs) 326'300 167'250 810'821 167'250 Minor Project & Programme Contributions United Nations Environmental Programme 72'598 0 Government Of The Netherland (DGIR) 42'740 0 World Trade Organization 39'453 7'360 Government Of Brazil (Permanent Mission to WTO) 25'000 0 Global Green Growth Initiative 23'948 0 Government Of Switzerland (FOEN) 15'000 0 JA Solar 14'854 0 Government Of Taiwan ( Permanent Mission to WTO) 11'665 12'735 Indiana University 9'501 0 International Lawyers and Economists Against Poverty (ILEAP) 8'821 0 University College Of Oxford 7'958 0 World Intellectual Property Organization 5'000 0 Centre for Policy Dialogue (CPD) 4'008 0 COP 17 Durban Symposium 3'788 0 International Institute for Sustainable Development 3'000 0 IDDR Foundation 2'461 0 Latin American Network 2'339 0 International Trade Centre 2'000 0 Swedish Standards Institute 2'000 0 Global Campaign4climate Action 1'000 0 National Foreign Trade Council Foundation 1'329 0 Inter-American Development Bank 754 81'240 World Health Organization 0 7'400 Deutche Gesellschaft Für Technische Zusammenarbeit (Giz) 0 88'797 Government of South Africa (Department of Trade and Industry) 0 22'130 OXFAM/NOVIB 0 122'070 Columbia University 0 11'361 Meridian Institute 0 46'962 Minor Project & Programme Contributions 299'216 400'055 Accrued contributions (See Note 7) 151'398 163'062 1'261'435 730'367

December 31, 2012 and 2011 Note 10 - Other sundry income CHF CHF Interest 475 1'567 Bridges Publications Sarl 0 48'385 Miscellaneous Income 24'026 40'423 Cop 17 Durban Symposium 0 23'852 Income Consultancy Fees 0 19'110 Government of South Korea/ Ministry of Foreign Affairs & Trade 0 9'060 United Nations Environmental Programme 0 8'415 International Food Policy Research Institute 0 5'000 Graduate Institute of International and Development Studies 0 5'000 Beijing University 0 4'530 Indiana University 0 3'148 World Intellectual Property Organization 0 3'000 Commission for Environmental Cooperation of North America 0 2'864 International Institute for Sustainable Development 0 2'500 Subscriptions for ICTSD Publications 212 2'172 National Foreign Trade Council Foundation 0 1'827 Commonwealth Secretariat 0 297 Other sundry income 24'713 181'148

December 31, 2012 Note 11- Core and Thematic Funding by Outcome 2012 TOTAL Outcome 1 Outcome 2 Outcome 3 Outcome 4 Outcome 5 Outcome 6 Outcome 7 Global Governance Framework Food Security and Sustainable Livelihoods LDCs and Structural Transformation Innovation, Technology and IPRs Trade and Climate Change Environment and Natural Resources ICTSD Global Initiative Thematic CHF CHF CHF CHF CHF CHF CHF CHF Government of United Kingdom (UK) (DFID) 2'526'710 413'677 618'557 514'038 147'446 216'840 240'289 375'862 Government of Sweden (SIDA) 1'863'400 253'713 338'671 346'528 187'704 180'853 176'081 379'849 Government of the Netherlands (DGIS) 1'187'335 161'663 215'797 220'804 69'287 225'607 112'196 181'981 Government of Denmark (Ministry of Foreign Affairs) 563'357 76'704 157'299 104'765 32'875 54'677 53'234 83'803 Government of Finland (Ministry of Foreign Affairs) 296'275 40'340 53'536 202'400 Total Thematic contributions by Outcome 6'437'077 946'097 1'383'859 1'388'535 437'312 677'978 581'800 1'021'495 Major Project & Programme Contributions Government of Denmark (Ministry of Foreign Affairs) 484'521 484'521 Government of Norway (Ministry of Foreign Affairs) 326'300 326'300 810'821 0 0 0 0 810'821 0 0 Minor Project & Programme Contributions 450'614 92'740 0 30'337 7'958 75'826 138'706 105'047 Total Project & Programme Contributions 1'261'435 92'740 0 30'337 7'958 886'647 138'706 105'047 Other sundry income 24'713 1'861 5'323 2'542 761 2'014 1'753 10'459 Total Core,Thematic and Project contributions 7'723'225 1'040'698 1'389'182 1'421'414 446'031 1'566'639 722'259 1'137'002