Reference Materials

Fiscal 2017 Business Report
Grant Aid-Related Operations
Item

Description

Actual Figures in Actual Figures in
FY2016FY2017
New Continuing New Continuing

1. Procurement Agent Services and Procurement Consulting Services(1) Procurement agent services for grant aid for the economic and social—
development programme(2) Procurement agent services for non-project grant aid—(3) Procurement agent services for food assistance—(4) Procurement agent services for grant aid project for procurement of goods—(5) Procurement agent services for emergency grant aid—(6) Procurement agent services for grant aid for conflict prevention and—peacebuilding(7) Procurement agent services for grant assistance for the food security project for —underprivileged farmers(8) Procurement agent services for grant aid for disaster prevention and—reconstruction(9) Procurement agent services for grant aid projects under private–public—
partnership(10) Procurement agent services for grant aid project for construction—(11) Procurement agent services for grant aid for community empowerment—(12) Procurement agent services for program grant aid for environment and—climate change(13) Procurement consulting services for cultural grant assistance—(14) Procurement consulting services for general grant aid
—

39

10

29

47

1
15
—
0

109
14
—
3

0
10
2
0

94
27
0
3

1

11

0

11

0

1

0

1

0

6

0

4

1

1

0

2

0
1

1
32

0
0

1
26

0

25

0

17

1
—

0
—

4
2

1
0

3

0

1

1

1

2

2

0

1

0

1

0

Support for procurement of equipment, support for tender of facility
construction, promotion of contract, supervision of construction
Feasibility study on equipment and facility construction, evaluation at theend of a project, procurement of equipment, supervision of construction
Dispatch of short-term procurement support staff/study/support fortechnical cooperation projects

3

0

1

4

2

0

2

0

1

1

0

1

Check and audit of procurement-related documents
Study and support on implementation of loan projects

1
3

0
3

3
3

1
4

2

7

2

8

Supply of the Equipment under the Machinery and Equipment Project for
Saudi Japanese Automobile High Institute in FY2016
Feasibility surveys and verification surveys with the private sector for
disseminating Japanese technology for the Japan International Cooperation Agency (JICA), verification surveys and monitoring studies for theJapan External Trade Organization (JETRO)

1

0

—

—

0

1

4

0

—

0

1

0

1

—

2

3

2

1

Support for local procurement for SATREPS, etc.

—

—

6

1

2. Studies and Screening on International Cooperation Operations
Study for project development of grant assistance for cultural grass roots
projects and analysis of project applications for grant assistance forcultural grass roots projects, preliminary study for cultural grant assistanceon work ratio of construction/Feasibility studies/Planning for(2) Feasibility studies/Planning for improvement of equipment Study
improvement of equipment(1) Study for cultural grant assistance(3) Screening

Grant assistance for Japanese NGO projects

Technical Cooperation-Related Operations(1) Technical Cooperation (Cooperation with consultants)(2) Study on projects, evaluation and procurement support(3) Support for local procurement/Follow-up cooperation

Loan Aid-Related Operations(1) Procurement management services for loan aid(2) Study for Japanese ODA Loans, etc.

Multilateral Aid-Related Operations
Business contributing to the promotion of the appropriate and efficient implementationof international cooperation programs carried out by international agencies and organiza- Procurement agent services, etc.
tions, foreign governments and other organizations engaged in international cooperation

Other Activities(2) Project formulation survey on SME support(3) Support for companies aiming to win project contracts
from international agencies and organizations(4) Dispatch of experts and procurement consulting staff(5) Procurement support for equipment in Public–Private
Partnerships (PPP) and the private sector

Other Projects Integral to Fulfilling the Objectives of the Foundation(1) Support for NGOs

Evaluating and choosing NGOs for support and providing funds

13 NGOs

9 NGOs5 times
2 times

5 times
1 timeEducation and Support Promoting International Cooperation
Education and support promoting international coopera- Medical Lectures for Travelers
tion
Participation in international cooperation festivals and events

Japan International Cooperation System Annual Report 2018

(1) Project subsidy

Fiscal 2017 Business Report 23

Reference Materials

Fiscal 2017 Balance Sheet
March 31, 2018

(Unit: yen)

Item

FY2017FY2016

Variance

755,755,654
348,680,081
12,119,281
9,727,719
8,713,208
1,134,995,943

1,183,969,168
321,523,440
24,398,250
329,301
27,327,630
1,557,547,789(428,213,514)
27,156,641(12,278,969)
9,398,418(18,614,422)(422,551,846)

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

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

000

10,000,000
9,358,500
19,358,500

10,000,000
6,061,500
16,061,500

03,297,000
3,297,000

4,767,377
76,831,208
76,699,648
170,255,051
72,627,481
4,511,778
76,084,534
37,326
0481,814,403
888,172,903
2,023,168,846

8,141,239
19,973,662
35,674,276
2,622,670
150,213,355
2,707,596
78,281,023
75,81019,396,000
317,085,631
720,147,131
2,277,694,920(3,373,862)
56,857,546
41,025,372
167,632,381(77,585,874)
1,804,182(2,196,489)(38,484)(19,396,000)
164,728,772
168,025,772(254,526,074)

1. Current liabilities
Accrued payments
Allowance for bonus
Provision for head office’s restoration
Deposit received
Deposit received for the Improvement of the Petra Museum Project
Reserve for operational losses
Income tax payable
Total current liabilities

92,678,511
102,300,220
014,205,393
280,076,097
22,014,889
64,100511,339,210

116,996,394
134,310,380
44,000,000
7,975,511
430,535,259
22,014,889
50,485,600
806,318,033(24,317,883)(32,010,160)(44,000,000)
6,229,882(150,459,162)
0(50,421,500)(294,978,823)

2. Fixed liabilities
Reserve for executive officers’ retirement benefits
Total fixed liabilities
Total liabilities 2)

9,358,500
9,358,500
520,697,710

6,061,500
6,061,500
812,379,533

3,297,000
3,297,000(291,681,823)

1. Designated net assets
Contributions and subscriptions
Total designated net assets[Amount of allotment to the endowment]

372,000,000
372,000,000[372,000,000]

372,000,000
372,000,000[372,000,000]

0
0
[0]

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

1,130,471,136[15,000,000][10,000,000]
1,502,471,136
2,023,168,846

1,093,315,387[15,000,000][10,000,000]
1,465,315,387
2,277,694,920

37,155,749[0][0]37,155,749(254,526,074)

I Assets
1. Current assets
Cash equivalents
Accrued revenues
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 assets(3) Other fixed assets
Vehicles and other transportation devices
Equipment attached to building
Appliances and fixtures
SoftwareDeposit and security moneys
Long-term prepaid expenses
Prepaid pension expenses
Investment securities
Software in progress
Total other fixed assets
Total fixed assets
Total assets 1)

Japan International Cooperation System Annual Report 2018

II Liabilities

III Net Assets

24 Fiscal 2017 Balance SheetReference Materials

Fiscal 2017 Statement of Net Equity Increase (Decrease)
April 1, 2017–March 31, 2018

(Unit: yen)

Item

FY2017FY2016

Variance

2,025,211
2,025,211
2,380,328,445
1,906,702,133
95,372,714
223,208,438
121,612,533
33,432,627
5,044,124
5,044,124
2,387,397,780

1,981,321
1,981,321
2,606,371,322
2,228,373,697
43,858,550
166,188,089
108,269,427
59,681,559
2,622,313
2,622,313
2,610,974,956

43,89043,890(226,042,877)(321,671,564)
51,514,164
57,020,349
13,343,106(26,248,932)
2,421,811
2,421,811(223,577,176)

1,883,354,281
435,011,925
2,318,366,206
69,031,574

2,059,155,131
410,822,639
2,469,977,770
140,997,186(175,800,850)
24,189,286(151,611,564)(71,965,612)

44,6302,002,000
2,046,630

3,072,040
03,072,040(3,027,410)
2,002,000(1,025,410)

19,331,378
14,200,481
033,531,859(31,485,229)
37,546,345

261,067044,000,000
44,261,067(41,189,027)
99,808,159

19,070,311
14,200,481(44,000,000)(10,729,208)
9,703,798(62,261,814)

390,596
37,155,749
1,093,315,387
1,130,471,136

50,805,183
49,002,976
1,044,312,411
1,093,315,387(50,414,587)(11,847,227)
49,002,976
37,155,749

000372,000,000
372,000,000000372,000,000
372,000,000

0
0
0
0
0

1,502,471,136

1,465,315,387

37,155,749

I General Net Assets Increase or Decrease
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 programs
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 expenses
Total current expenses (B)Current increase or decrease for the year (C) = (A) - (B)
2. Nonrecurring increase or decrease(1) Nonrecurring increase1) Gain on sales of fixed assets
2) Reversal of provision for head office’s restoration
Total nonrecurring increase(2) Nonrecurring expenses
1) Loss on sales and retirement of noncurrent assets
2) Office transfer expenses
3) Provision for head office’s restoration
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)II Designated Net Assets Increase or Decrease

III Net Assets at End of Year (I) + (J)Japan International Cooperation System Annual Report 2018

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)Fiscal 2017 Statement of Net Equity Increase (Decrease) 25

Reference Materials

Governance System
JICS’ governance system is organized as follows.
Board of Trustees
The Board of Trustees supervises and oversees the Board of Directors, and its members
have voting rights in decisions concerning
important matters, such as the selection anddismissal of executive directors, auditors, andtrustees, as well as revisions to JICS’ Articles ofIncorporation. The Board of Trustees provides
leadership based on the broad expertise of its
members in the management and handlingof JICS’ affairs. Accordingly, members of theBoard of Trustees are highly knowledgeableof these matters and possess experience
working in diverse settings, including corporations, international organizations, independent administrative institutions, universities,
and NGOs.

Board of Directors
The Board of Directors makes decisions concerning the management of JICS’ operations.
Two outside executive directors (a memberof a corporation and a university professor,
respectively) and two auditors (an attorney atlaw, and a certified public accountant, respectively) collectively supervise the performanceof duties by JICS’ president and vice president. The president is required to convene ameeting of the Board of Directors regularly,
and report on JICS’ management and generaltasks in an effort to maintain a high degree oftransparency in organizational management.

Accounting Auditor
JICS recognizes that it must ensure strict
internal controls and compliance inconnection with its financial affairs andmanagement, since it manages funds
used for aid on behalf of the governments of recipient countries as part ofits procurement agent services. Accordingly, it has voluntarily appointed an
accounting auditor to conduct auditsof related matters.

Board of Directors/Board of Trustees
Board of Directors and Accounting Auditor
President
Vice President
Executive Director
Executive Director
Auditor
AuditorAccounting Auditor

Toru Kubo
Kazuki Takeuchi
Mutsuko Asakura
Hiroki Kato
Michio Masaki
Naoki Sou
Kiyoshi Toi

Board of Trustees

As of July 1, 2018

Chairman

Masaoki Takeuchi
Michiyo Arita
Kiyoshi Kodera

Members
Makoto Tochigi
Yoshihiro Yamaguchi
Sachiko Yamano

As of July 1, 2018

Professor, Law School at Waseda University
General Manager, Legal Department, Ajinomoto Co., Inc.
Attorney at Law, CITY-YUWA PARTNERS
Certified Public Accountant, Tax Accountant
Certified Public Accountant

President, International Development Center of Japan
Secretary General, International Cultural Institute
Former Executive Secretary of Development Committee of the World Bank and International Monetary Fund, Former Deputy Vice-Minister for International Affairs, Ministry of Finance,
Japan, Former Vice President of Japan International Cooperation Agency (JICA), Chair of theBoard of WaterAid Japan, Senior Research Associate, Overseas Development Institute (ODI)
in the UK
Journalist
Senior Executive Director, The Overseas Construction Association of Japan, Inc.
President, Japan International Cooperation Center

Japan International Cooperation System Annual Report 2018

Fiscal 2017 Meetings of the Board of Directors and the Board of Trustees
In fiscal 2017, the Board of Directors met
six times and the Board of Trustees met
once.
At Board of Directors’ meetings, management overviews, business issues, management and organizational issues and thestatus of progress regarding new businessdevelopments were reported in a timely
manner and key issues were deliberated.

26 Governance SystemReference Materials

Organization Chart(As of June 1, 2018)

Audit Office
Management
Planning Office

Formulation of management policies and information planning

Compliance and Risk
Management Office

Board ofTrustees

Vice President(Responsible
for General
Affairs)

Human Resources
Division

General Affairs
Department

General Affairs
Division
Finance andAccounting Division

Board ofDirectors President
First Management
Department

Auditor Accounting
AuditorVice President(Responsiblefor Business
Management)

Senior Director
GeneralSecond Management Department

New Business
Development Office

Development of new businesses relating to Public–Private
Partnerships (PPP) and the private sector

Business Planning
OfficeGeneral coordination for planning, drafting of proposals, recommendations and development relating to international cooperation

Coordination OfficeService-related coordination and general affairs
Quality management related to the execution of services and screening services related to the administration of tenders and contracts

Country AssistanceDivision 1

Procurement agent services, mainly for facility construction,materials and equipment procurement in East Asia, Southeast Asiaand Oceania

Country AssistanceDivision 2

Procurement agent services, mainly for facility construction, materials and equipment procurement in the Mekong region

Country AssistanceDivision 3

Procurement agent services, mainly for facility construction,materials and equipment procurement in the Middle East andSouthwest Asia

Country AssistanceDivision 5

Procurement agent services, mainly for facility construction, materials and equipment procurement in Latin America, Eastern Europe
and Central Asia

Country AssistanceDivision 6

Procurement agent services, mainly for facility construction, materials and equipment procurement in Africa

Technical Support
Division

Technical operations including equipment item surveys and drawing
up of specifications

Third Management
Department

Second Project
Loan Aid (ODA Loan)-related operations
Management Division
for technical cooperation and procurement, Screening services
Third Project Manage- Support
related to Grant Assistance for Japanese NGO Projects and Studies andment Division
procurement consulting services for cultural grant assistance projects

Japan International Cooperation System Annual Report 2018with international agencies and organizationsFirst Project Manage- Programs
Procurement agent services, for Grant Aid Project under Public–
ment Division
Private Partnership

Organization Chart 27

Reference Materials

Compliance
1. JICS’ Compliance Policy
JICS carries out procurement and other related activities for international cooperation projects. Accordingly, in addition to its employees, JICS’ stakeholders include the government and citizens
of Japan, governments and citizens of countries that receive aid
through such projects, as well as organizations offering tenders,and contractors such as suppliers, construction companies, andconsultants. JICS understands that its ability to act in the interestsof these stakeholders is integral to its mission.
JICS’ procurement activities are equivalent to public procurement, and, therefore, must be conducted fairly and appropriately
while ensuring transparency. Therefore, JICS has established acompliance system for the purpose of maintaining a high level oftrust among its stakeholders.

2. Compliance System

JICS has set up the following system for promoting compliance.

(1) Compliance Committee(5) Internal reporting system

Chaired by JICS’ president, the Compliance Committee is responsible for strengthening compliance, responding to any case of abreach of compliance, and examining measures for preventing
the recurrence of such cases.

JICS has established an internal reporting system for the purposeof preventing violations of laws or regulations, and for dealing
with any such violations that occur. The system provides contact
points for reporting information, including a reporting line andaccess to auditors, legal advisors, and lawyers from outside JICS.

(2) Compliance and Risk Management OfficeThis office takes steps for enhancing compliance in JICS’ organizations and analyzes risks throughout these organizations in orderto improve risk management.

(3) Audits by auditors, accounting auditor andtax accountants

Auditors are responsible for auditing the performance of duties
by the Board of Directors and executive directors, while the accounting auditor and tax accountants are consigned to conduct
external audits of financial and accounting records. In addition tochecking financial statements and confirming whether internal
controls are in place and being followed, the accounting auditor
also inspects bank accounts (in which funds for aid have been
deposited) being administered by JICS on behalf of governmentsof countries receiving assistance as part of its procurement agent
services.

(6) Whistleblower system for reporting irregularities
concerning tender or other matters

JICS has established a whistleblower system for the purpose of
ensuring that procurement procedures, including those involving
tender executed by JICS, are conducted impartially, and that contracts made with other parties are properly executed.

(7) JICS Code of Conduct

We conduct ourselves in accordance with the following 10
standards as organizational principles.
 Behaving in accordance with our responsibilities as a public
service corporation
 Providing high-quality services
 Strictly observing laws and rules Exercising due consideration for local conditions
 Practicing information disclosure Managing information appropriately
 Respecting human rights
 Acting resolutely in response to anti-social groups Working to protect the environment
Creating a safe and satisfying workplace environment(4) Audit Office

The Audit Office is responsible for internal auditing under the
direct supervision of the president. From its standpoint as anindependent body, the office conducts audits to determine
whether operations are carried out appropriately and efficiently,
and reports the results to the president.

Compliance System

Board of Trustees

 Strengthening of compliance;
establishment of system andrules; education and training

Compliance Committee

ReportingBoard of Directors
President
Accounting
Auditor

Auditors

Japan International Cooperation System Annual Report 2018

Liaison point
for contactfrom external
parties

Vice President

Director of Audit OfficeCompliance and Risk Management OfficeCompliance officers from each division

Reporting

ReportingInternal liaison points

Attorney at law
Reporting/Consulting Response when irregularities
occur; studies; consideration of
response policies and measures
to prevent recurrence

Whistleblower system for reporting
irregularities concerning tender orother matters(Compliance officers in each division,harassment officers)
Instructions

Education/Information sharing

Employees/Parties providing information

Reporting/Consulting

Bidding enterprises/
Contractors

3. Measures for Protecting Personal Information
JICS recognizes that it has a social responsibility to handle personal information in an appropriate manner. Accordingly, it hasestablished a basic policy on personal information protection
along with related rules. In recognition of these measures, JICS
received accreditation under the PrivacyMark system in Japan onJune 17, 2011. (The accreditation was renewed for the third timeon June 17, 2017.)

28 Compliance

JICS is certified as an entity
authorized to use the“PrivacyMark” logo, and issubject to laws in Japan.
Education on protecting personal information

Outline of JICS
Name of Organization:
Japan International Cooperation System (JICS)
Head Office:5th Floor, Harumi Center Building, 5-24, Harumi 2-chome,
Chuo-ku, Tokyo 104-0053, Japan
Main Contact Information and Website:
Tel: +81-3-6630-7870
Fax: +81-3-3534-6811
E-mail: jics@jics.or.jp
URL: https://www.jics.or.jp/jics_html-e/index.php
President:
Toru Kubo
Date of Establishment:
April 12, 1989
Endowment:¥387 million
Number of Employees:
159 (as of August 1, 2018)

 Project Offices (7 countries)

Afghanistan
Pakistan
MyanmarSenegalMali
Burkina Faso
Madagascar

Japan International Cooperation System
Annual Report 2018

Editorial assistance: Five Cs, Inc.
Printed in Japan©2018 Japan International Cooperation System

Japan International Cooperation System Annual Report 2018

Published November 7, 2018 (English edition)
Compiled and published by Japan International Cooperation System
5th Floor, Harumi Center Building, 5-24, Harumi 2-chome, Chuo-ku,
Tokyo 104-0053, Japan
Tel: +81-3-6630-7870
https://www.jics.or.jp/jics_html-e/index.php

29