Making decisions about conservancy finances

Anna Davis, IRDNC, August 2007

Current Status

• During 2006 – 32 conservancies earned cash income

• 5 earned N$500,000+• 12 earned between N$100,000 – 500,000• 15 earned up to N$100,000• Some single sources income• Some up to 7 different sources• 12 Conservancies independent of funding• 16 by end of 2007• Enormous challenge

Challenge

• Conservancies earning own income

• Great deal of accountability demanded by donors

• Very little decision making over grants

• Little preparation or experience re financial planning and management

• Poor decision making and management

Challenge (2)

• Key problems– Poor record keeping & accounting– Need for better reporting– Need for better planning – Expenses rising to meet rising income– Little money left for benefits or savings for

contingencies

Challenge (3)

• Need for long term planning – old financial cycle not good enough

• Need for tool to know what available, what needed

• Focus on financial management cycle not long term

• Need for tool for financial planning but also business/enterprise planning

Manage finances

Audit

Annual budget

Check books

Compile reports & present

Purpose/vision/objectives

income

Transactions

Spending

Keep financial records

Monthly

Annual

Present auditmembers

Review, evaluate,

revise

Financial Sustainability

Plan

Financial Management

cycle

Solution

• Began discussing idea – staff and conservancies

• Strategy to change way budgeting and financial planning done

• Identify expected income for year• Plan for surplus (prioritize benefits)• Plan expenditure = keep it under pressure• (HACCSIS, running costs, ent devt, savings etc)• Linked with ideas of BEL grou

Solution – what we did

• Worked with 7 pilot conservancies

• All earning cash income

• All contributing to benefits & running costs

• Introduced idea and gained support

• Implemented Sustainability Planning exercise

Solution – what we did (2)

Looked at following:

• Projected income for conservancy till 2012– Worked with experts for projections

• Actual income earned– Worked to get books up to date

• Actual expenditure to date

• Planned expenditure

• Plotted sustainability graphs

Solution what we did (3)

• Changed way looked at financial cycle and financial planning

• Changed the budgeting process– Planned income– Benefits– Operational costs– Savings and investments

Petty cash box

Cash in Expenses out

Slips & vouchers

Bank Book

Documents&records

Depositswithdrawals

Bank account

Financial Sustainability

Plan

Cash book

Annual budget

Monthly report

Annual report

Current income

Current expenses Projected expenses

Projected income

Audited financial statement

Monitoring &

support

Financial Management

system

What has worked

• Critical in budgeting process– 4 conservancies used it to plan, examine the

difference between planned income & expenditure and revise budgets

• Critical in conservancy planning– What enterprises must conservancy focus on

that year – informs the workplan

• Critical that this is monitored

1 2 3 4 5 6 7 8 9 10Income 0 30,000 80,000 180,000 200,000 240,000 300,000 380,000 400,000 450,000Expenditure 100,000 100,000 100,000 110,000 110,000 115,000 120,000 125,000 130,000 135,000Surplus -100,000 -70,000 -20,000 70,000 90,000 125,000 180,000 255,000 270,000 315,000Grant 100,000 80,000 30,000 0

Comment Hunting agreement

Craft Centre opened

Grant ends. Lodge JV signed

Zebra skins sold

Sale of Hoodia

Traversing Agreement signed

Sustainability Plan

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

1 2 3 4 5 6 7 8 9 10

Year

N$IncomeExpenditureGrant

Sustainability PlanningSummary Report

Sustainability PlanningSummary Report

0

200000

400000

600000

800000

1000000

1200000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Grant income actual Own income actual Grant income projected

Own income projected Actual running costs Actula other exp

Projected Benefits Projected op costs

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Actual Income Projected income Actual running costs

Projected Benefits Planned running costs

Future challenges

• Make plans living tool

• Use them often

• Use them for financial planningAND

• Use them for business and enterprise planning

• Monitor them often

• Revise and update

Thank You