FY2012 Business Report
Item

Description

Actual Figures in FY2011 Actual Figures in FY2012

Procurement Management Agent Services and Procurement Agent Services on International Cooperation Operations
1. Grant Aid(1) Procurement management for grant assistancefor the food security project for underprivileged
farmers(2) Procurement management for grant assistancefor the food aid project(3) Expediting implementation of cultural grant aid

8/5

5/12

19/25

12/28

19/0
0/13

7/20
0/0

5/40

26/33

2/10

0/11

1/7

0/8

0/2

3/3

6/21

8/23

3/65

0/65

2. Technical Cooperation
1/1

2/1

(2) Related studies for projects oftechnical cooperation

Detailed planning survey (new)0

1

Check of procurement-related documents, seminars on 2
yen loan operations (new)Study for revision of procurement-related documents on 0
loan projects (new)Ex-post procurement audit under Japanese ODA Loans 0(new)
Dispatch of expert on project implementation promotion 0
for ODA Loans (new)2

3. Loan Programs(1) Check of procurement-related documents onloan projects(2) Loan examination

1
1
1

4. Business Contributing to the Promotion of the Appropriate and Efficient Implementation of International Cooperation Programs Carried
Out by International Agencies and Organizations, Foreign Governments and Other Organizations Engaged in International Cooperation
Programs of international agencies
and organizations, etc.

Programs of international agencies and organizations, etc. 1/4(new/continuing)

3/4

International Cooperation Consulting Business
—

—

—

—

Analysis of project applications for grass root cultural
1
grant aid, etc. (new)Preliminary study for cultural grant aid (new)1
Preliminary study (Grant aid for community empower17
ment, Program grant aid for environment and climatechange, Grant aid for conflict prevention and peacebuilding, Grant assistance for the food security project forunderprivileged farmers), Follow-up study for general
grant aid (new and continuing)

1

Research and Studies on International Cooperation Operations(1) Study for grass root cultural grant aid(2) Study for cultural grant aid(3) Study for grant aid

1
32

Support Program for Non-Governmental Organizations (NGOs) Working in the International Cooperation Field
Support for NGOs

Evaluating and choosing NGOs for support
and providing funds

14 NGOs

12 NGOsas needed
4 times
Japanese andEnglish editions

as needed
4 times
Japanese andEnglish editions

as needed

as needed

2 times

2 times

2/0

4/2

1

1

Education and Support Promoting International Cooperation
Public relations activities

Updating of the website
Publication of JICS REPORT
Publication of Annual Report
Publication of articles in information magazines
concerning international cooperation
Participation in international cooperation festivals

Other Activities Necessary to Achieve the Purposes of the Foundation(1) Dispatch of experts
Dispatch of experts (new/continuing)(2) Equipment procurement by the subsidy system Equipment procurement by the subsidy system
of Minister of Economy, Trade and Industryof Minister of Economy, Trade and Industry (new)47
FY2012 Business Report

Support for equipment procurement in Japan/Support
for local procurement (new/continuing)

Annual Report 2012

(1) Support for equipment procurement

Japan International Cooperation System(4) Procurement management for non-project
grant aid(5) Procurement management for emergency
grant aid(6) Procurement management for grant aid for
conflict prevention and peacebuilding(7) Procurement management for grant aid fordisaster prevention and reconstruction(8) Procurement management for grant aid forcommunity empowerment(9) Procurement management for program grant
aid for environment and climate change

Procurement management for grant assistance for the
food security project for underprivileged farmers(new/continuing)
Procurement management for grant assistance for the
food aid project (new/continuing)
Procurement management (new/continuing)
Tender assistance work (new/continuing)
Procurement management for non-project grant aid(new/continuing)
Procurement management for emergency grant aid(new/continuing)
Procurement management for grant aid for conflict
prevention and peacebuilding (new/continuing)
Procurement management for grant aid for disasterprevention and reconstruction (new/continuing)
Procurement management for grant aid for community
empowerment (new/continuing)
Procurement management for program grant aid forenvironment and climate change (new/continuing)Part 1

Principal Activities in FY2012

Part 2

Reference Materials

Description of Projects

FY2012 Balance Sheet
March 31, 2013
(Unit: yen)

Item

FY2012FY2011

Variance

455,703,978
186,314,886
400,000
18,189,410
9,470
23,736,680

273,301,737
194,645,884
0
25,579,402
0
33,942,013

182,402,241(8,330,998)
400,000(7,389,992)
9,470(10,205,333)

684,354,424

527,469,036

156,885,388

137,000,000
250,000,000
387,000,000

137,000,000
250,000,000
387,000,000

000

10,000,000
3,115,500
13,115,500

10,000,000
1,909,500
11,909,500

01,206,000
1,206,000

5,020,682
54,345,504
47,669,416
43,690,619
78,704,134
15,636,305
65,633,939
2,408,059
8,390,673
321,499,331
721,614,831
1,405,969,255

10,005,858
75,314,390
18,453,117
76,101,146
114,232,963
13,789,512
87,053,654
3,181,335
11,862,669
409,994,644
808,904,144
1,336,373,180(4,985,176)(20,968,886)
29,216,299(32,410,527)(35,528,829)
1,846,793(21,419,715)(773,276)(3,471,996)(88,495,313)(87,289,313)
69,596,075

1. Current liabilities    Accrued payments   Allowance for bonus   Suspense receipts   Deposit received   Short-term lease obligations   Income tax payable
Total current liabilities

116,655,086
119,450,337
014,692,656
3,607,579
80,196,895
334,602,553

102,328,933
75,973,804
2,791,936
17,345,315
3,631,429
0
202,071,417

14,326,153
43,476,533(2,791,936)(2,652,659)(23,850)
80,196,895
132,531,136

2. Fixed liabilities    Reserve for executive officers’ retirement benefits   Long-term lease obligations
Total fixed liabilities
Total liabilities 2)

3,115,500
5,197,634
8,313,134
342,915,687

1,909,500
8,805,213
10,714,713
212,786,130

1,206,000(3,607,579)(2,401,579)
130,129,557

372,000,000
372,000,000[372,000,000]
691,053,568[15,000,000][10,000,000]
1,063,053,568
1,405,969,255

372,000,000
372,000,000[372,000,000]
751,587,050[15,000,000][10,000,000]
1,123,587,050
1,336,373,180

00[0](60,533,482)[0][0](60,533,482)
69,596,075

Japan International Cooperation System Annual Report 2012

I Assets

FY2012 Balance Sheet

48

1. Current assets   Cash equivalents    Accrued revenues   Advance payments—other   Prepaid expenses    Advances paid   Suspense payments
Total current assets
2. Fixed assets(1) Endowment    Endowment in installment deposits    Endowment in investment securities  Total endowment(2) Specific assets    Accumulated assets for support to non-governmental organizations    Assets reserved for executive officers’ retirement benefits    Total specific asset(3) Other fixed assets    Vehicles and other transportation devices    Equipment attached to building    Appliances and fixtures   Software    Deposit and security moneys   Long-term prepaid expenses   Prepaid pension expenses   Investment securities   Lease assets    Total other fixed assets
Total fixed assets
Total assets 1)

II Liabilities

III Net Assets
1. Designated net assets   Contributions and subscriptions
Total designated net assets    [Amount of allotment to the endowment]
2. General net assets    [Amount of allotment to the endowment]    [Amount of allotment to specific assets]
Total net assets 1) - 2)
Total liabilities and net assets

FY2012 Statement of Net Equity Increase (Decrease)
April 1, 2012–March 31, 2013
(Unit: yen)

Item

FY2012I General Net Assets Increase or Decrease

3,022,721
3,022,721
2,666,615,135
2,334,271,008
108,225,280
140,942,200
54,174,357
29,002,290
1,719,588
1,719,588
2,671,357,444

4,449,071
4,449,071

II Designated Net Assets Increase or Decrease
1) Amount of transfer to general net assets   Amount of transfer to general net assets    Designated net assets increase or decrease for the year    Designated net assets at beginning of year    Designated net assets at end of year (J)000372,000,000
372,000,000

III Net Assets at End of Year (I) + (J)1,063,053,568(Note): Comparisons with the previous year are not available due to the first year after JICS’s transition to a general incorporated foundation.

49
FY2012 Statement of Net Equity Increase (Decrease)12,532,964
13,878,224
26,411,188(21,962,117)
20,429,018
80,962,500(60,533,482)
751,587,050
691,053,568

Annual Report 2012

2,238,136,730
390,829,579
2,628,966,309
42,391,135

Japan International Cooperation System

1. Current increase or decrease(1) Current profits
1) Profit from the management of the endowment
Interest received from the endowment
2) Profit from business activities
Profit from grant aid programs
Profit from technical cooperation programs
Profit from loan program
Profit from programs with international agencies and organizations, etc.
Profit from other commissioned projects
3) Miscellaneous profits
Miscellaneous profits
Total current profits (A)(2) Current expenses  1) Operating expenses  2) Administrative expense
Total current expenses (B)Current increase or decrease for the year (C) = (A) - (B)
2. Nonrecurring increase or decrease(1) Nonrecurring increase   1) Gain on sales of fixed assets  Total nonrecurring increase(2) Nonrecurring expenses   1) Loss on sales and retirement of noncurrent assets   2) Office size reduction expense  Total nonrecurring expenses    Nonrecurring increase or decrease for the year (D)     General net assets increase or decrease for the year before income taxes (E) = (C) + (D)    Income taxes—current (F)    General net assets increase or decrease for the year (G) = (E) - (F)    General net assets at beginning of year (H)    General net assets at end of year (I) = (G) + (H)Part 1

Principal Activities in FY2012

Part 2

Description of Projects

Reference Materials

A Brief History of JICS
1989

April

JICS (2 departments and 4 divisions) was founded and opened an office at Ichigaya Honmura-cho, Shinjuku-ku.

AugustJICS began compiling technical specifications and studies for expediting implementation of grant aid for increaseof food production.

December JICS began on-site surveys of grant aid projects.
1990

January

JICS began follow-up studies for grant aid projects.

April

JICS began procurement management services for grant aid projects.

Japan International Cooperation System Annual Report 2012

November JICS began procurement and transportation of equipment for technical cooperation.

A Brief History of JICS

50

1991

April

JICS began small-scale procurement of equipment and materials for JICA projects.

November JICS reorganized into 3 departments and 6 divisions.
1992

January

JICS began procurement and transportation of equipment for technical cooperation experts.

September JICS began dispatch of long-term grant aid researchers.
1993

October

JICS began providing services for cultural grant aid and non-project grant aid projects.

1994

February

JICS office moved to Shinjuku Mitsui Bldg., Nishi-Shinjuku, Shinjuku-ku.

April

JICS reorganized into 3 departments, 5 divisions and 5 offices.

1996

March

JICS office moved to Shinjuku Sanshin Bldg., Yoyogi, Shibuya-ku.

1997

July

JICS began providing services for grant aid for child health projects.

1998

January

JICS began procurement management services for grant aid for increase of food production projects.

March

JICS began providing services for emergency grant aid projects.

February

JICS established a Technical Information Center.

July

JICS reorganized into 3 departments, 1 office and 13 divisions.

October

JICS began support for NGO activities.

2001

April

JICS partially revised its Articles of Foundation.

2002

April

JICS began providing services for grant aid for research projects.

June

JICS began procurement management services for food aid projects.

March

JICS began providing services for grant aid for conflict prevention and peacebuilding projects.

April

JICS office moved to Shinjuku EAST Building, Tomihisa-cho, Shinjuku-ku.

May

JICS reorganized into 3 departments and 11 divisions.

October

JICS began providing services for grant aid for Japanese NGO projects.

1999

2003

JICS reorganized into 2 offices, 3 departments and 8 divisions.
2004

June

JICS reorganized into 3 offices, 2 departments and 3 divisions.

2006

AugustJICS began providing services for grant aid for disaster prevention and reconstruction.

December JICS began providing services for grant aid for community empowerment.
2007

January

JICS established its Office of Management Planning.

April

JICS partially revised its Articles of Foundation.

2008

October

JICS reorganized into 4 offices, 3 departments and 11 divisions.

2009

April

JICS began providing services for Program grant aid for environment and climate change.

July

JICS established Special Operations Office.

April

JICS changed the status of the foundation to general incorporated foundation (not-for-profit).

2012

JICS implemented organizational restructuring (2 offices, 5 departments and 18 divisions structure).
2013

July

JICS implemented organizational restructuring (6 offices, 4 departments and 16 divisions structure).

Board of Directors / Board of Trustees
Board of Directors As of July 1, 2013
Toru Nakatani
Toru Kubo
Minoru Ijima
Yutaka Kitani
Sumiko Yazawa
Tsuyoshi Hinokuchi
Michio Masaki
Kiyoshi Toi

Managing Director, Noble Organic Association
Advisor, Kikkoman Corporation
Managing Director, Japanese Association of International Women’s Rights
Director, Tsuyoshi Hinokuchi Tax Accountant Office
Attorney at Law, CITY-YUWA PARTNERS
Certified Public Accountant

Board of Trustees As of July 1, 2013
Shunichi Hiraki
Michiyo Arita
Yuichi Sawa

MemberMemberMemberMemberMember

Masaoki Takeuchi
Hiroko Tsuka
Makoto Tochigi
Yoshihiro Yamaguchi
Sachiko Yamano

President, The Japan Institute of Economic Feasibility Study
Secretary General, International Cultural Institute
General Manager of Economic Cooperation Office, The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
President, International Development Center of Japan
Managing Director, General Affairs Department, The Japan Foundation
A part-time lecturer Gakushuin University, Journalist
Senior Executive Director, The Overseas Construction Association of Japan, Inc.
President, Japan International Cooperation Center

Presidents since JICS was established

51

April 1989–December 1991
March 1992–March 1997
April 1997–March 2004
April 2004–August 2010
September 2010–

Chairman of the Board of Trustees since JICS was established
Fumio Watanabe
Shigeru Ishikawa
Hiroshi Matsumoto
Yoriko Meguro
Shunichi Hiraki

Honorary Advisor, Japan Airlines Corporation
Professor Emeritus, Hitotsubashi University
Director, The International House of Japan, Inc.
Professor Emeritus, Sophia University
President, The Japan Institute of Economic Feasibility Study

April 1989–March 2003
April 2003–March 2005
June 2005–June 2009
June 2009– March 2012
June 2012–

Board of Directors / Board of Trustees

Hiroshi Yokota
Shigeru Tokuhisa
Yutaka Nomura
Takahisa Sasaki
Toru Nakatani

Annual Report 2012

ChairmanMemberMemberJapan International Cooperation System

President
Vice President
Executive Director
Executive Director
Executive Director
Auditor
AuditorAccounting Auditor

Part 1

Principal Activities in FY2012

Part 2

Reference Materials

Description of Projects

Organization Chart(As of July 1, 2013)

Office of Management
Audit

Internal audit

Office of Contract
Examination

Screening services related to the administration of tenders and contracts

Office of Management
Planning

Matters relating to the formulation of management policies and the Medium-term
Operational Action Plan

Japan International Cooperation System Annual Report 2012

Personnel management, Office regulations, Personnel training, Employee remuneration
experts

Board ofTrustees

Board ofDirectors

General Affairs
Department

President

Vice
President

Organization Chart

52

Personnel Affairs Division management, Employee welfare, Occupational health, Labor union and Dispatch ofFirst Management
Department

Senior Director
GeneralSecond Management Department
Auditor Accounting
AuditorThird Management
Department

General Affairs Division

JICS Support for NGOs, Administration of the Board of Directors and the Board ofTrustees, Public relations, Administration of the organization, Document control, Legalaffairs, Internal regulations, Performance statistics, Information control and Security
measures

Finance and Accounting
Division

Items related to the budget and account settlement, Financial planning, Cash management and Facility and property management

Office of New Business
Development

Development of new businesses

Office of Quality
Management

Quality management related to the execution of services

Office of Coordination

Service-related coordination and general affairs

First Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects andProcurement agent services for Grant aid for disaster prevention and reconstruction

Second Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects andProcurement agent services for Grant aid for disaster prevention and reconstruction

Third Construction
Management Division

Procurement agent services for Grant aid for community empowerment projects,
Procurement agent services for Grant aid for disaster prevention and reconstruction and
Procurement agent services for Program grant aid for environment and climate changeFirst Procurement
Management Division

Procurement agent services for Grant assistance for the food security project forunderprivileged farmers (2KR) and Procurement agent services for Grant assistance forthe food aid project (KR)Second Procurement
Management Division

Procurement agent services for Grant assistance for the food security project forunderprivileged farmers (2KR) and Procurement agent services for Grant assistance forthe food aid project (KR)Third Procurement
Management Division

Procurement agent services for Non-project grant aid, Studies and procurement
management services for Cultural grant aid projects and Procurement agent services for
Grant aid for disaster prevention and reconstruction

First Special ProjectManagement Division

Procurement agent services for Program grant aid for environment and climate change
and Procurement agent services for Non-project grant aid

Second Special ProjectManagement Division

Procurement agent services for Program grant aid for environment and climate change
and Procurement agent services for Non-project grant aid

First Country AssistanceDivision

Projects in specific region

Second Country
Assistance Division

Projects in specific region

International
Organization Division

Programs with international agencies and organizations, etc.

Grant and Loan Cooperation Support Division

Support of procurement by ODA loans

Technical Cooperation
Support Division

Support for technical cooperation and procurement and Screening services related toGrant Assistance for Japanese NGO Projects

The Articles of Incorporation ofJapan International Cooperation System (JICS)
Chapter 1. General Provisions
Article 1 (Name)	This corporation is called Japan International Cooperation System (JICS)(hereinafter referred to as the “Foundation”).

Article 2 (Offices)	The Foundation shall locate its principal office in Shinjuku-ku, Tokyo,
Japan.

Chapter 2. Purposes and Business	The purposes of the Foundation are to perform the procurement andmanagement services in the field of international cooperation businessin order to contribute to international peace and stabilization.

Article 4 (Business)

Article 5 (Kinds of Assets)1	The Assets of the Foundation shall consist of endowment and otherassets.
2	The endowment shall consist of assets which the Board of Directors
resolved as endowment.
3 Other assets shall be assets other than endowment.

Article 6 (Management, Investment and Disposal of Assets)1	The President shall manage and invest the assets of the Foundation
with the care of good manager to accomplish the purposes of theFoundation, and its management and investment methods shall be determined by the Rules of Management and Investment of Assets whichshall be decided by the resolution of Board of Directors.
2	Should unavoidable circumstances arise, part of the endowment may
be disposed of or removed with the prior approval of the Board of
Directors and the Board of Trustees.

Article 7 (Business Year)	The business year of the Foundation shall commence on April 1 every
year and end on March 31 of the following year.

Article 8 (Business Plan and Income and Expenditure Budget)1	The President shall prepare the business plan and the income andexpenditure budget of the Foundation and they must be approved by
the Board of Directors no later than the day immediately preceding thecommencement date of each business year. The same shall apply inthe event of any changes thereto.
2	Documents described in the preceding paragraph must be kept in theprincipal office until the end of applicable business year.

Article 9 (Business Report and Settlement of Accounts)

1	With respect to the business report and the settlement of accounts, thePresident shall prepare the documents set forth below after the end ofeach business year, which shall be audited by the Auditors, followed by
the audit of Items (3) to (5) by the Accounting Auditors. Upon completion of audit, all of these documents must be approved by the Board of
Directors.
(1) Business report;(2) Detailed statement on the business report;(3) Balance sheet;

Chapter 4. Trustees
Article 11 (Quorum)

The Foundation shall have five to eleven Trustees.

Article 12 (Election and Dismissal of Trustees)1	In accordance with the provisions of Articles 179 to 195 of Act on General Incorporated Associations and General Incorporated Foundations,
Trustees shall be elected and dismissed by the Board of Trustees.
2 Trustees shall meet all of the following requirements:(1) Total number of Trustees who fall under any of the following conditions shall not exceed one-third of total number of Trustees.
		 a.	Trustee and its spouse or relatives within the third degree of lineal
kinship;		 b. Trustee and person who are in de facto marriage with the Trustee;		 c. Employee of Trustee;		 d.	Person who does not fall under b or c and who makes a living byreceiving payments or other assets from the Trustee; or		 e. Spouse of the person who falls under c or d.
		 f.	Relative who is within the third degree of lineal kinship and whoshares a livelihood with the person who falls under any of theconditions under b through d.
(2) Total number of Trustees who holds any of the following positionsin the organization identical to the Foundation (except for publicservice corporation) shall not exceed one-third of total number ofTrustees.
		 a. Executive Director
		 b. Employee
		 c.	Director other than Executive Director (representative or administrator of the organization that is not a juristic person if suchorganization prescribes any representative or administrator) or
member who performs the business		 d.	Staff (except the member of the Diet and member of assembly of
local authority) of the following organizations:			 a National agency
b Local authorityc Independent administrative agency as provided in Paragraph 1
of Article 2 of Act on General Rules for Independent Administrative Agency
d National university corporation as provided in Paragraph 1 of
Article 2 of National University Corporation Act or inter-university research institute corporation as provided in Paragraph 3 ofArticle 2 of National University Corporation Act
e Local independent administrative agency as provided in
Paragraph 1 of Article 2 of Local Independent Administrative
Agency Act
f Public corporation or semi-governmental corporation

Article 13 (Term of Office of Trustees)1	The term of office of Trustees shall be until the end of the annual meeting of Board of Trustees for the final business year out of the businessyears which end within four years from the time of their election.
2	The term of office of the Trustee, who is elected as an alternate of theTrustee who resigned before the expiration of his/her term of office,shall be the remaining term of office of such resigned Trustee.
3	In case total number of Trustees falls below the quorum prescribed in
Article 11, Trustees shall have their rights and obligations as Trustee
even after their resignation or expiration of their term of office until theirsuccessor assumes office.

53
The Articles of Incorporation of Japan International Cooperation System (JICS)

Chapter 3. Assets and Accounting

The Foundation may not distribute any surplus.

Annual Report 20121	The Foundation shall conduct the following businesses in order to accomplish the purpose described in the preceding article:(1) Procurement services in the field of international cooperation business;(2) Management services in the field of international cooperation business;(3) Consultancy services in the field of international cooperation business;(4) Research and studies in the field of international cooperation business;(5) Support to NGO, etc. relating to international cooperation activities;(6) Dissemination and enlightenment of knowledge concerning international cooperation activities; and(7) Other businesses necessary to achieve the purpose of the Foundation.
2	Business described in the preceding paragraph shall be conducted inJapan and abroad.

Article 10 (Restrictions on Disposal of Surplus)

Japan International Cooperation System

Article 3 (Purposes)(4) Profit-and-loss statement (statement of net worth); and(5) Detailed statement on the balance sheet and profit-and-loss statement (statement of net worth)2	Out of the approved documents described in the preceding paragraph,
Items (1), (3) and (4) must be reported to the annual meeting of Boardof Trustees; provided, however, that in the case any of such documents
does not fall under any of the requirements described in Article 48 of
Enforcement Regulation of Act on General Incorporated Associationsand General Incorporated Foundations applied mutatis mutandis pursuant to Article 64 of said Enforcement Regulation of Act, documents
excluding Item (1) must be approved by the annual meeting of Board ofTrustees instead of reporting to the annual meeting of Board of Trustees.
3	Documents described in Paragraph 1 and following documents shall be
kept in the principal office for five years. Articles of Incorporation shallalso be kept in the principal office at all times.
(1) Audit report; and(2) Financial audit reportPart 1

Principal Activities in FY2012

Part 2

Description of Projects

Article 14 (Remuneration, etc. to Trustees)	Trustees may receive remuneration, etc. calculated by criteria of payment of the remuneration, etc. determined separately by the Board ofTrustees.

Chapter 5. Board of Trustees
Article 15 (Structure)

The Board of Trustees shall consist of all of the Trustees.

Japan International Cooperation System Annual Report 2012

Article 16 (Rights)

The Articles of Incorporation of Japan International Cooperation System (JICS)

54

The Board of Trustees shall resolve the following matters:(1) Election and dismissal of Executive Directors, Auditors and Accounting Auditors;(2) Remuneration, etc. of Executive Directors and Auditors;(3) Criteria for payment of remuneration, etc. to Trustee;(4) Approval of the balance sheet and profit-and-loss statement (statement of net worth);(5) Changes to these Articles of Incorporation;(6) Disposal of residual assets;(7) Approval of disposal or removal of endowment; and(8) Other matters prescribed in law or these Articles of Incorporation asa matter which must be resolved by the Board of Trustees.

Article 17 (Convening of Meetings)

	The Board of Trustees shall hold the annual meetings in June every year.
Should the needs arise, the Board of Trustees shall hold the extraordinary meeting.

Article 18 (Convocation)

1	Unless otherwise prescribed in law, the Board of Trustees meetings shallbe convened by the President pursuant to the resolution of the Board of
Directors.
2	Trustees are entitled to request the convocation of the Board of Trustees
meeting by indicating the purpose and reason for convening the Boardof Trustees meeting to the President.

Article 19 (Resolution)

1	The resolution of the Board of Trustees shall be adopted with the attendance of majority of Trustees and with the votes of majority of Trustees
present excluding the Trustees who have a special interest in the resolution.
2	Notwithstanding the provision of the preceding paragraph, following resolution shall be adopted by the votes of two-thirds or more of
the Trustees excluding the Trustees who have a special interest in the
resolution:(1) Dismissal of an Auditor;(2) Criteria for payment of remuneration to a Trustee;(3) Changes to these Articles of Incorporation; and(4) Other matters prescribed in law.
3	With respect to the resolution for proposal on the election of Executive
Director or Auditor, the resolution described in Paragraph 1 is required
for each candidate. In case the number of candidates for Executive
Director or Auditor exceeds the quorum prescribed in Article 21, theExecutive Director or the Auditor will be elected from among the candidates who have obtained a majority of votes in the order of candidates
with the most number of votes until it reaches the quorum.

Reference Materials

3	The total number of Executive Directors having a relative who is also
an Executive Director shall not exceed one-third of the total number of
Executive Directors.

Article 23 (Duties and Rights of Executive Directors)

1	The Executive Directors constitute the Board of Directors and shall carryout the duties pursuant to the law and these Articles of Incorporation.
2	The President shall represent the Foundation and carry out the duties pursuant to the law and these Articles of Incorporation. The Vice
Presidents shall respectively carry out the duties determined separatelyby the Board of Directors.
3	The President and the Vice Presidents shall report the progress of theirperformance of their duties to the Board of Directors at least twice eachbusiness year with more than 4-month interval between each report.

Article 24 (Duties and Rights of Auditors)

1	The Auditors shall audit the Executive Directors’ performance of theirduties and make an Audit Report pursuant to the law.
2	The Auditors may request the Executive Directors and the employees
for a business report and may conduct investigation on the businessand financial condition of the Foundation at any time.

Article 25 (Duties and Rights of Accounting Auditor)

1	The Accounting Auditor shall audit the balance sheet, profit-and-loss
statement (statement of net worth) and detailed statement of each ofsuch documents and shall make an Accounting Audit Report pursuant
to the law.
2	Accounting Auditor may view and copy the following items and may request the Executive Directors and the employees to report any mattersrelating to accounting:(1) Accounting book or related information prepared in writing if it isprepared in writing; and(2) Accounting book or related information in electronic record prepared by method prescribed in the law if it is prepared in electronic
record.

Article 26 (Term of Office of Directors and Accounting Auditor)

1	The term of office of Executive Director shall continue until the closingof annual meeting of the Board of Trustees for the final business year
out of the business years that end within two years of his/her appointment.
2	The term of office of Auditor shall continue until the closing of the annual meeting of Board of Trustees for the final business year out of thebusiness years that end within four years of his/her appointment.
3	The term of office of Executive Director or Auditor elected as an alternate shall continue until the end of the term of office of his/her predecessor.
4	In case where the number of Executive Directors or Auditors falls below
the quorum stipulated in Article 21, an Executive Director or Auditor
shall continue to have his/her rights and obligations as Executive Director or Auditor even after his/her resignation or expiration of his/her termof office until his/her successor assumes office.
5	The term of office of Accounting Auditor shall continue until the closingof the annual meeting of Board of Trustees for the final business yearthat ends within one year of his/her appointment; provided, however,that such Accounting Auditor shall be deemed re-elected if the resolution which decides otherwise is not adopted at such annual meeting ofBoard of Trustees.

Article 27 (Dismissal of Directors and Accounting Auditor)

Article 21 (Appointment of Directors)

1	If any of the following applies to a Director, such Director may be dismissed by a resolution of the Board of Trustees:(1) Breach of his/her duties or failure to conduct his/her duties(2) Difficulty in, or inability to cope with, the performance of his/herduties due to mental or physical disability
2	If any of the following applies to an Accounting Auditor, such Accounting Auditor may be dismissed by a resolution of the Board of Trustees:(1) Breach of his/her duties or failure to conduct his/her duties(2)Misconduct which is inappropriate for Accounting Auditor(3) Difficulty in, or inability to cope with, the execution of his/her duties
due to mental or physical disability
3	The Auditor may dismiss the Accounting Auditor with the approval of
all Auditors in case any of the items under Items (1) to (3) of preceding
paragraph applies. In case of dismissal, the Auditor shall report such fact
and reason for dismissal to the first Board of Trustees meeting held after
the dismissal.

Article 22 (Election of Directors and Accounting Auditors)

Article 28 (Remuneration, etc. to Directors and Accounting
Auditor)

Article 20 (Minutes)

Minutes of the Board of Trustees shall be made as stipulated by law.

Chapter 6. Directors and Accounting Auditors1	The Foundation shall have the following Directors:
Executive Directors Between three and seven.
Auditors
No more than two.
2 One of the Executive Directors shall become the President.
3	Out of the Executive Directors other than the Executive Director who
becomes the President, no more than three Executive Directors shallbecome the Vice Presidents.
4 The Foundation shall appoint an Accounting Auditor.
1	The Executive Directors, the Auditors and the Accounting Auditors shallbe elected by the Board of Trustees.
2	The President and the Vice Presidents shall be elected by the resolutionof Board of Directors from among the Executive Directors.

1	Remuneration, etc. may be paid to Directors and Auditors in theamount calculated pursuant to the standards for payment of remuneration, etc. to be separately decided by the Board of Trustees within the
total amount to be separately decided by the Board of Trustees.
2	Remuneration, etc. to Accounting Auditor shall be decided by the Boardof Directors by a majority of votes of Auditors.

Article 29 (Exemption from Liability or Limitation of Liability)

Chapter 7. Board of Directors
Article 30 (Structure, etc.)

The Board of Directors shall consist of all of the Executive Directors.

Article 31 (Authority)

Article 32 (Convocation)

1 The Board of Directors shall be convened by the President.
2	If the post of President is vacant or the President is involved in an accident, each of the Directors shall convene the meeting on behalf of the
President.
1	Resolution of the Board of Directors shall be adopted with the attendance of majority of Executive Directors and with the votes of majorityof Executive Directors present excluding those having a special interestin the resolution.
2	Notwithstanding the preceding paragraph, the resolution of the Boardof Directors shall be deemed to have been adopted if the requirements
as stipulated in Article 96 of the Act on General Incorporated Associations and General Incorporated Foundations as applied mutatis mutandis pursuant to Article 197 of such Act have been fulfilled.

Article 34 (Minutes)

1 Minutes of the Board of Directors shall be made as stipulated in the law.
2	The President and the Auditors present at the Board of Directors meeting shall sign their names and affix their seals on such minutes.

Chapter 8. Advisor
Article 35 (Advisor)

1 The Foundation may have Advisors not exceeding five persons.
2	The Board of Directors shall appoint the Advisors from among academic
experts, etc. after deciding on their term of office.
3	The Advisors shall work without any remuneration; provided, however,that Advisors are entitled to receive any expenses which are necessary
to perform their duties.
4	The Advisors may provide advices and comments in response torequests from the President.

Chapter 9. Amendment to Articles of Incorporation
and Dissolution of the Foundation
Article 36 (Amendment to Articles of Incorporation)

1	Amendment to these Articles of Incorporation may be made with theapproval of Board of Trustees.
2	The preceding paragraph shall also apply to Articles 3, 4 and 12 of these
Articles of Incorporation.

Article 37 (Dissolution)

	The Foundation shall be dissolved if the Foundation is unable to achieve
its purposes due to loss of endowment or for other reasons prescribedin the law.

Chapter 10. Method of Public Notice
Article 39 (Method of Public Notice)1	Public notices by the Foundation shall be made through electronic
public notice.
2	In case that public notice cannot be made electronically due to accidents and other unavoidable reasons, public notice shall be made byplacing such notice in the official gazette.

Supplementary Provision1	These Articles of Incorporation shall come into force on the date ofregistration of establishment of a public incorporated organization as
defined in Paragraph 1 of Article 106 of the Act on Arrangements ofRelevant Acts Accompanying the Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations andPublic Interest Incorporated Foundations as applied mutatis mutandis
pursuant to Paragraph 1 of Article 121 of such Act.
2	Notwithstanding the provisions of Article 7 of the Act on Arrangementsof Relevant Acts Accompanying the Enforcement of the Act on General
Incorporated Associations and General Incorporated Foundations andthe Act on Authorization of Public Interest Incorporated Associations
and Public Interest Incorporated Foundations, in the event that theregistration for the dissolution of special civil law corporation and theestablishment of general incorporated association or general incorporated foundation take place as provided in Paragraph 1 of Article 106 ofsuch Act as applied mutatis mutandis pursuant to Paragraph 1 of Article
121 of such Act, the date immediately preceding the date of registration
for dissolution shall be the final date of the business year and the dateof registration for establishment shall be the starting date of the business year.
3	The first President of the Foundation shall be Toru Nakatani, the first Vice
President shall be Toshiyuki Ezuka and the first Accounting Auditor shallbe Kiyoshi Toi.
4	The first Trustees shall be the following:Michiyo Arita, Hajime Suzuki, Masaoki Takeuchi, Makoto Tochigi
Tetsuya Nakao, Shunichi Hiraki, Kenichi Yanagisawa and Sachiko Yamano
5	The Executive Directors and Auditors who come into office on the dateof registration shall be the following:
Executive Director: Toru Nakatani, Toshiyuki Ezuka, Yutaka Kitani, Minoru
Ijima and Sumiko Yazawa
Auditor: Tsuyoshi Hinokuchi and Michio Masaki

55
The Articles of Incorporation of Japan International Cooperation System (JICS)

Article 33 (Resolution)

	The residual assets of the Foundation in case of liquidation of theFoundation shall be donated to the juridical person provided in Item 17of Article 5 of the Act on General Incorporated Associations and General
Incorporated Foundations, national government or local authority.

Annual Report 2012

The Board of Directors shall perform the following duties:(1) Decision on the performance of work of the Foundation(2) Supervision over the Executive Directors’ performance of their duties(3) Selection and dismissal of the President and Vice Presidents

Article 38 (Disposal of Residual Assets)

Japan International Cooperation System

1	The Foundation may exempt the liability of Executive Directors andAccounting Auditors under Paragraph 1 of Article 111 of the Act onGeneral Incorporated Associations and General Incorporated Foundations as applied mutatis mutandis pursuant to Paragraph 1 of Article
198 of such Act with the resolution of the Board of Directors pursuant
to Paragraph 1 of Article 114 of such Act as applied mutatis mutandis
pursuant to Article 198 of such Act up to the amount obtained by subtracting the minimum liability amount prescribed in the law from theamount of liability of such Executive Directors and Accounting Auditors.
2	The Foundation may enter into contracts with Outside Directors andAccounting Auditor which limit the liability of the Outside Directors
under Paragraph 1 of Article 111 of the Act on General Incorporated
Associations and General Incorporated Foundations as applied mutatis
mutandis pursuant to Article 198 of such Act with the resolution ofBoard of Directors pursuant to Paragraph 1 of Article 115 of such Act asapplied mutatis mutandis pursuant to Article 198 of such Act; provided,
however, that the limitation of liability based on the contracts shall be
the minimum liability amount prescribed in the law.

Part 1

Principal Activities in FY2012

Part 2

Description of Projects

Reference Materials

ComplianceJapan International Cooperation System Annual Report 2012

JICS’ Compliance Policy

Compliance

56

JICS implements procurement and other operations in the international cooperation field to aim to contribute to peace and stabilization of the international society.
These operations encompass a wide range of stakeholders, including the Government of Japan, Japanese citizens, recipient governments, the citizens of recipient countries, tenderers, contractors (suppliers, construction companies, consultants, etc.), and employees. It
may be said that JICS’ mission hinges on how well it is able to help
stakeholders benefit from these operations.
JICS’ procurement operations are equivalent to public procurement and must be performed in an appropriate manner ensuringtransparency and fairness. From this perspective, compliance is not
only the cornerstone of JICS’ organization and operations but may

also be seen as something that leads to increased benefits for stakeholders, and thus ranks as one of JICS’ most important issues.
To strengthen compliance, we place the fulfillment of the JICS
Vision (please refer to “Mission, Vision and Value” on the inside front
cover of this report) as our primary objective. At the same time, in
accordance with the JICS Code of Conduct, we are building systems
to ensure a high level of fairness and transparency in the executionof our operations, implementing training programs with the goal ofpromoting consciousness change and skills enhancement among all
employees, and conducting appropriate organizational administration. In addition, we are working to ensure proper implementation ofprojects in accordance with guidelines related to operational execution.

JICS Code of Conduct
Based on the precepts of the JICS Mission, Vision and Value, we
pledge to act in accordance with the ten principles shown below,
with the goal of promoting higher-quality international cooperation.
1. Behaving in accordance with our responsibilities as a public
service corporation
We will act responsibly based on awareness of our role as an organization involved in international cooperation, to meet society’s
expectations toward us as a public-service corporation.
2. Providing high-quality services
We will endeavor to provide high-quality services in a timely andeffective manner that are valuable in the implementation of international cooperation and which ensure the satisfaction and trust of
stakeholders.
3. Strictly observing laws and rules
We will strictly observe all relevant laws, internal rules, societal norms
and international rules. Furthermore, we will act according to social
common sense and will not engage in inappropriate conduct. We
will report to or consult the responsible person specified in the rule
upon discovering or committing any violation of laws, rules etc.
4. Exercising due consideration for local conditions
In our overseas activities, we will observe local laws and exercise
due consideration for local conditions, including traditions, customs,
culture and the environment.
5. Practicing information disclosure
To ensure greater transparency in the management of our operations, we will maintain a proactive stance toward information

disclosure covering such areas as details of our projects and ouradministrative situation.
6. Managing information appropriately
We will strictly manage all information in our possession, including
personal information, through compliance with laws and relevant
rules concerning the protection of personal information, the implementation of information security measures and strict adherence toconfidentiality obligations.
7. Respecting human rights
We will respect human rights in all circumstances and will not discriminate on the basis of sex, age, nationality, race, ethnicity, beliefs,
religion, social status or physical disability.
8. Acting resolutely in response to anti-social groups
We will adopt a resolute stance toward anti-social groups or organizations that threaten social order or safety.
9. Working to protect the environment
Based on awareness that addressing environmental problems is an
important part of our mission, we will undertake proactive efforts on
our own initiative that contribute to environmental protection.
10. Creating a safe and satisfying workplace environment
To maintain orderly workplaces and enable officers and employees
to work to the best of their abilities, we will strive to build safe andsatisfying workplaces. To ensure the safety of officers and employees,
both in Japan and abroad, we will develop a crisis management
system and strive to achieve safe management at all times.

Compliance-related Measures
To fulfill the JICS Code of Conduct shown above, as an organization
JICS has formulated the following provisions and is building up its
compliance systems.
P JICS promotes compliance through the activities of the Compliance Committee as well as through the establishment of working
groups as deemed necessary to deal with specific key issues.
P We have established the Office of Management Audit, which undertakes internal audits. In addition, external audits are conductedby certified public accountants and certified tax accountants.
P We have established the Office of Contract Examination, which examines the adequacy of procurement-related procedures (tenders,
contract administration, etc.).
P We established a whistleblower system with the goal of preventing the occurrence of legal violations as well as facilitating appropriate responses to reports of compliance violations.

P To ensure orderliness and discipline in a fair workplace, JICS has
implemented measures to prevent and eliminate harassment behavior, has assigned counseling staffs internally and implements
educational programs for employees.
P In response to overseas travel alerts released by the Ministry ofForeign Affairs, JICS holds safety countermeasure meetings to consider and confirm the safety and adequacy of overseas operational
travel by employees and to deliberate on safety countermeasuresand provides safety countermeasure briefings for employees.
P JICS has established the Health Committee, which works to ensure
employee safety and health in the workplace and implements activities aimed at maintaining a comfortable working environment.

Personal Information Protection Measures
JICS clearly specifies its personal information protection policy, thetypes of personal information it is obligated to protect, and theactions it takes that are necessary for the protection of personal
information. With the goal of ensuring that administrative systems
comply with these policies, JICS has formulated a set of basic regulations for the protection of personal information. In relation to these
personal information protection measures, on June 17, 2011, JICS
received accreditation under the PrivacyMark System administeredby the Japan Institute for Promotion of Digital Economy andCommunity (JIPDEC). Privacy Mark accreditation was renewed on June 17, 2013. On an
organization-wide basis, JICS will continue
to handle personal information in an appropriate manner, while at the same time working to further increase awareness amongits employees of issues related to personal
information protection.

Outline of JICS

Name of Organization:
Japan International Cooperation System (JICS)
Head Office: Shinjuku EAST Building, 10-5, Tomihisa-cho, Shinjuku-ku,
Tokyo 162-0067, JAPANMain Contact Information and Website:
Tel: +81-3-5369-6960
Fax: +81-3-5369-6961
E-mail: jics@jics.or.jp
URL: http://www.jics.or.jp/jics_html-e/index.html
President:
Toru Nakatani
Vice President:
Toru Kubo
Date of Establishment: April 12, 1989
Endowment:¥387 million
Number of Employees:
169 (as of July 1, 2013)
P Project Offices (16 offices)

Afghanistan
Nepal
Palestine
SenegalMali
Burkina Faso
Ghana
Benin
Cameroon
UgandaLesothoMozambique

Djibouti
Ethiopia
MalawiJapan International Cooperation System
Annual Report 2012
Published November 13, 2013 (English Edition)
Compiled and published by Japan International Cooperation System
Shinjuku EAST Building, 10-5, Tomihisa-cho, Shinjuku-ku, Tokyo 162-0067, JAPAN
Tel: +81-3-5369-6960
http://www.jics.or.jp/jics_html-e/index.html
Editorial assistance: Five Cs, Inc.
Printed in Japan©2013 Japan International Cooperation System

Haiti

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