NGO
Another Way (Stichting Bakens Verzet), 1018 AM
01. E-course :
Diploma in Integrated Development (Dip. Int.Dev.)
Edition
01: 11 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]
15. The bank structures with
limitations imposed on the project coordinator.( At least 2 hours )
The banking structures indicated
in the Model may vary from one individual project to the another. Integrated
development projects are different from traditional development projects. Most
of the activities are carried out by the populations themselves within the
framework of a local money system set up in an early phase of project
executions. Everything is done to try to ensure that the goods and services
needed for the project structures can be provided under the local money system
set up. This means that the formal money needed for the projects is in
principle destined to cover the formal money costs of goods and services which
cannot be provided locally.
Having said that, no-one (except
the banks) profits from converting international donor funds in Euros or US$
into the formal money of the country where the project in question is taking
place, only to re-convert it back into Euros or US$ to pay for goods and
services provided from abroad. That would lead to wastage of bank costs for the
two conversions, and de facto reduction of the amount available for the project
itself.
Initial funding is therefore held
in an international Euro (or US$) bank account in the name of the NGO
responsible for project execution. Funds are transferred to a formal money
account in the currency of the country where the project is taking place (the
host country) in accordance with project requirements. These funds are used to
cover formal money requirements spent inside the host country itself.
The coordinator (or coordination
group) responsible for each project acts independently of the NGO responsible
for project execution, which acts as controller of the coordinator or the
coordinating team. The NGO responsible for
the execution of the project is
«the parliament » in relation to the project. The coordinator is
the «government » of the project.
Refer to part 07. The cooperative for project execution in the section the division of tasks of the third block solutions to the problems of the course.
The NGO cooperative responsible for project execution controls the capital accounts of the project.
Article 15 of the 05.08 Statutes of the NGO
responsible for project execution provides “The project coordinator opens and operates all executive bank
accounts including current accounts in
the name of the project during the execution phase.”
The coordinator replenishes the executive
bank accounts from time to time as
required by the project circumstances. To do this he/she applies to the NGO
responsible for project execution for transfer of funds from the capital account
(managed by the NGO) to the
executive account (managed by the
coordinator).
Once the funds have arrived in the executive account
controlled by the coordinator, the coordinator is free to run the account
without further formality, for smaller sums. For larger sums he must get the
co-signature of the Chairperson of the NGO or another person nominated by the
board of the NGO for this purpose. For large amounts, the Coordinator must
apply for the express agreement of the board of the NGO responsible for project
execution.
The activities of the project coordinator and his/her team are subject
to permanent on-going audit control as provided
in articles 17-20 of the Statutes of the NGO.
In practice, the coordinator is
given wide flexibility of manoeuvre, without formalities. On the other hand,
he/she is subjected to very strict on-going permanent control of his/her
activities.
The Board of Directors of each
NGO for project execution will organise its activities as it thinks best. In
principle, the Board formally adopts the project («passes the law » )
including the project budget. This would normally mean that the Coordinator is
authorised to spend the funds available to him/her on conditions the budget
terms are respected and that he/she answers to the permanent commission for on-going audit for his/her actions.
Look at this drawing of the bank structures.
1. Research.
On one page, explain the the members of the board of the NGO responsible
for project execution how the project banking system works.
The project coordinator’s role as
described in the statutes of the NGO as :
“Article
15 : The project coordinator is
appointed for the duration of the project and is responsible for
the execution of the project until transfer of the structures created to
the management cooperative [name of the Cooperative].
The
project coordinator records the status of inventories, accounts, and budget
documents submitted to the Board of Directors.
The
project coordinator opens and operates all executive bank accounts including
current accounts in the name of the
project during the execution phase.
The
project coordinator answers to the Board of Directors and informs the Audit
Commission of his or her activities, payments and receipts.”
Article 16 : The project coordinator’s salary is covered as a separate
item in the project budget.”
2. Opinion.
You are considering becoming project coordinator for the integrated
development project for your chosen area. On one page indicate on which
conditions you would be prepared to do it.
3. Research.
Take three important development projects in your chosen area. (If
necessary choose three projects in your country). For each one, on one page
(that means three pages for all three projects together),make a comparison
between the banking system and the limitations imposed of those responsible for
the projects on the one hand, and those foreseen for integrated development
projects on the other hand. In each case, draw your conclusion. Begin your work
with a brief introductory passage. End it with a summary of your findings.
◄ 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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