NGO Another Way (Stichting Bakens Verzet), 1018 AM Amsterdam, Netherlands.

 

                                                                                    01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)

 

Edition 01: 08 December, 2009

 

 

Tekstvak: Quarter 3.

 

 

 

 

Tekstvak: SECTION C : THE MODEL.

 

 

 

 

Study points : 05 points out of 18

Minimum study time : 125 hours out of 504

 

The study points are awarded upon passing the consolidated exam  for  Section C : The Model.

 

 

Block 8 : Economic aspects.

 

                            [Study points 03 out of 18]

[Minimum study time: 85 hours out of 504]

 

The study points are awarded upon passing the consolidated exam  for  Section C : The Model.

 

 

Block 8 : Economic aspects.

 

Section 1 : Project costs.[40 hours]

 

01.  General introduction. (02 hours)

02. General sketch of the financial structures.(02 hours)

03. Short budget analysis. (02 hours)

04. Budget organisation. (02 hours)

05. Description of the local contributions. (02 hours)

06. Method for calculating local contributions. (02 hours)

07. Relationship between local money and formal money.(02 hours)

08. The budget (02  hours)

09. The budget in a form requested by donors/financing parties. (02 hours )

10. Annual expenses (budgets per year). (02 hours )

11. Quarterly budgets. (02 hours )

12. Excel spreadsheets for the preparation of the budget.(02 hours )

13. The sustainability of the system.(02 hours )

14. Tenders. (02 hours )

15. The bank structures with limitations imposed on the project coordinator.(02 hours )

16. Auditing structures. (02 hours)

17. Protection of donors and financing parties.(02 hours )

 

Section 1 report :  (06 hours) .

 

 

 

Section 1 : Project costs.[40 hours]

 

03. Short budget analysis. ( At least 02 hours)

Analysis by project phases.

The figures given are indicative. The projects are integrated.  Passage between preparation, creation and operation of structures in any given project area are in practice without solution of continuity. This is because each structure set up proceeds independently at its own speed. 

SHORT ANALYSIS

Outgo

Phase

Estimate (Euro)

Total first phase

1

0

Total second phase

2

1.825.000

Total phase 3

3

2.025.000

Total phase 4

4

978.825

Total all  phases

2,3,4

4.828.825

Unforeseen 2,45% of Euro 4.828.825

2,3,4

118.125

Sub-total

2,3,4

4.946.950

Administration 1,073% approx. Of Euro 4.946.960

2,3,4

53.050

Total Euro

 

5.000.000

 

For a detailed description of each phase, refer to parts:

 

3. The first phase of execution.

4. The second phase of execution.

5. The third phase of execution.

6. Chart showing execution structures.

7. Activity plan.

 

of  section 1 justification of the order of sequence for the creation of the structures in block four the structures to be created..

Analysis by annual periods.

 

Capital  outgo (Capital)

Phase

Budget in Euros

First year

1,2 commencement 3

3.002.305

Second year

conclusion 3, 4

1.997.695

Total  Euro

 

5.000.000

 

 

For a detailed description of the annual activities see the following graphs :

 

Cost first year of execution.

Costs second year of execution.

 

The graphs are based  on the information contained in the following files :

 

Activities first year. (Excel file)

Activities second year. (Excel file)

1. Research.

 

On one page, explain to a donor why there is no budget provision for the first page.

 

2. Research.

 

From the point of view of formal money expenditure, the critical point of each project is the  formation and start-up of he local money system. On one page explain this concept to a donor. If necessary, include an explanatory diagram.

 

3. Research.

 

Working from the  Excel file  Activities first year (Column  C) make a list of  formal money expenses incurred up to the start-up of the local money system and make an analysis of the results.

 

The main phases of project activity do not coincide with annual periods. The most important formal money expenditure takes place towards the end of the first year and the early part of the second year..

 

4. Research.

 

Look at the  graphic showing quarterly expenses. Couple the information for the 4th and 5th quarters with the Excel files for activities first year and for  activities second year. On one page make a report on your observations..

5. Opinion.

 

The typical administration costs shown in the analysis above may appear unrealistic to a donor used to financing traditional projects. On one page explain to the donor why the administration  costs are so low.

 

6. Opinion.

 

The amount covering unforeseen expenses is just Euro 118,125, being 2,45%  of the total amount of each individual project. On the basis of your experience in development projects, and taking the innovative nature of projects under the Model into account, give a one-page opinion on the reserve for unexpected costs. What are the main causes of unexpected costs in traditional projects ? How are some of them reduced in integrated development projects ?

 

◄ ►

◄  Eighth block :  Economic aspects. 

◄  Eighth block :  Project costs.

◄ Main index  for the Diploma in Integrated  Development  (Dip. Int. Dev.)

◄  List of key words.

◄  List of references.

◄  Course chart.

◄  Technical aspects.

◄  Courses available.

◄ Homepage Bakens Verzet

 

"Money is not the key that opens the gates of the market but the bolt that bars them."

Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228.

 

“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.

 

 

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