NGO
Another Way (Stichting Bakens Verzet), 1018 AM
01. E-course :
Diploma in Integrated Development (Dip. Int.Dev.)
Edition
01: 09 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]
09. The budget in a form
requested by donors/financing parties. (02 hours )
The Model provides a version pf the budget in a version often indicated by donors .
Warning. Each donor and funding
party has its own system and formula for the preparation of project budgets.
The typical budget provided in
the Model has to be adapted to meet the requirements of individual donors and
financing parties. These requirements can change over time. It is common sense
practice to check to make sure that the version in question is the most recent
one.
The required budget often has to
be split up for each year of project execution. An example is given in the version often indicated by donors
presented above. This has a set of columns for the whole project ; and
separate sets of columns for each of the executive years. They may also want to
link the activities to project phases,
and to know who is responsible for the execution of each operation.
This form of budgeting is due to
the budgetary requirements often imposed
on financing agencies. They have to be able to divide their obligations
by calendar years. This form of division is not natural to integrated
development projects. The planned social, financial, productive and service
structures take form each at its own rhythm. This can vary from project to
project, from well-commission to commission, and from tank-commission to
tank-commission.
Since budgets for integrated
development projects are quite complex, the requirements of donors and funding
parties are usually met by :
The
budget in its standard form , showing the total amounts for each budget
item.
A separate budget for the first
year’s activities.
A separate budget for the
second year’s activities.
The contents of the annual
budgets are analysed separately in the next part 10. Annual expenditure (annual
budgets ) of this section 1 Project costs.
In addition, an year
by year activity plan showing who is involved with which activity, and
when, is also often required.
The material presented here is
based on the requirement of Europe Aid.
In part 04. How the budget is organised
the main budget groups (the horizontal blocks) and the vertical columns were
examined. A comparison was made between a typical integrated development
project budget and budgets of other projects carried out in your project area.
Choose the five most important
donors for projects in your country. Obtain a copy of the budget of one of the projects for each donor which has a
period of execution of two or more years.
1. Research.
Make a template of the typical form of the budget for integrated
development projects. Make five copies of it.
2. Research.
Adapt one copy of the template to the specific requirements of each of
the five donors or financing parties. Accompany each template with one page containing your notes
(your commentary) of the
differences(eventually) encountered.. Note :this exercise is about
the form of the budgets. You do not need to worry about the budget amounts..
Carefully conserve the results of
your work for future use.
◄ 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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