NGO
Another Way (Stichting Bakens Verzet), 1018 AM
01. E-course :
Diploma in Integrated Development (Dip. Int.Dev.)
Edition
01: 08 December, 2009
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.
[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.
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]
04. Budget organisation.
( At least 02 hours)
The budget at point 7.10 of the Model for
integrated development projects
conforms generally with requirements expressed by most donors and
financing parties. The Model example is based on the lines indicated by
Europe-Aid. (European Commission). However, the submission of a budget in the
form considered most «correct » by each donor agency is essential to the
financing of projects. Donor preferences should be studies each time, and
adaptations made where necessary to the documents provided in the Model.
Taking the innovative aspects of
integrated development projects into account, adaptation the meet the (traditional) requirements of
the aid sector proved to be extenuating. It was like trying to square a
circle.
One of the main difficulties is
that integrated development projects are about creating social, financial,
productive, and services structures which can allow people in each project area
to enjoy a good quality of life. For instance, they do not
«measure » a number of girls who begin primary studies. They create
sustainable structures enabling all girls in each project area to go to school. They are not about drilling a bore-hole and
putting a hand-pump on it. They create sustainable structures enabling everyone
in a project area to permanently benefit from a good supply of drinking water.
The typical budget is
horizontally divided into 9 groups. Groups 1-7 are in turn split up into
sub-groups. The sub-groups are in turn divided into specific budget items. The
number of items will vary from one project to another accordance to the
preferences expressed by the local populations. Usually the budget can be expected
to contain about 200 items.
The main budget groups are :
01. Human resources.
02. Travelling costs.
03. Purchase and hire of
material, vehicles, and «administrative » supplies (excluding goods
and services linked to the individual project structures planned)
04. The costs of the
administrative centre (consumables) and of general project management.
05. Various external costs such
as financial costs, insurance, audit, monitoring etc.
06. Separate costs for each of
the structures to be created.
07. Supply of formal money goods
and services, including consultants’ costs.
08. Total 1-7
09. Unforeseen, as a percentage
of total 8.
10. Total 8+9
11. Forfeit for administrative
costs.
12. Total 10 + 11
The truly operative part of the budget
is section 6. Most of groups 1-5 and 7 are expressed in formal money.
The vertical columns of the
budget are :
01 : The activity code.
02 : Activity description.
03 : The project phase or
phases for the execution of the activity.
04 : The amount contributed by
donors , financing parties.
05 : The number of hours’
work contributed by the local populations.
06 : Conversion into formal
money expressing the value of work contributed by the populations.
07 : Eventual formal money
contribution made by the NGO consortium in charge of project execution.
08 : The total of columns
4+6+7
The vertical columns (05 and 06)
of the budget are innovative.
1. Research.
Review the forms of the budgets of at least three development projects in
your project area, where possible, the budgets of projects that you have had
personal contact with. On one page, make at least four columns. The title of the first columns
in «Integrated project » , the second column is for «Local Project
1 » ,the third for «Local project 2 » the fourth
for « Local Project 3 » etc.
In the first column write in the 12 groups of items in the list above.
Next to each group list the equivalent items for the other projects. This is
about the main lines of the organisation of the budget. You do not need to go
into details about individual items.
2. Research.
On one page, note the conclusions to be drawn from the comparison you
have made.
3. Research.
Take another look at the budgets for the projects in your chosen area used
for the preceding exercises. Mark 9 vertical
columns on one page and at least 5 horizontal blocks.
The first horizontal block is for the description of the columns.
The titles for your 9 columns are :
Column 1 «Project »
Columns 2-9 the vertical columns 01-08 listed above..
The second horizontal block is called «Integrated project » ,
the third «Local Project 1 » ,the fourth «Local project 2 », the fifth
« Local Project 3 » etc.
Next to each project make a comparison amongst the projects by filling
the respective amounts in.
4. Research.
On one page, note the conclusions to be drawn from the comparisons you
have made.
5. Research.
During part 02. General
chart showing the financial structures of integrated development projects.
in this section of block 8 an analysis was
made of the direct formal money
expenditure at each of three levels.
Explain on one page why, in general, formal money is needed for groups 1-5 and
group 7 of the budget.
◄ Eighth block : Economic aspects.
◄ Eighth block : Project costs.
◄ Main index for the
Diploma in Integrated Development (Dip. Int. Dev.)
"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,
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th
annual NGO Conference, United Nations,
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