Making decisions about conservancy finances

1. Making decisions about conservancy finances Anna Davis, IRDNC, August 2007

2. 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

3. 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

4. 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

5. 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

6. Manage finances Purpose/vision/ objectives Financial Sustainability Plan Present audit members Review, evaluate, revise Annual budget Audit Financial Management cycle income Transactions Check books Compile reports & present Spending Keep financial records Annual Monthly

7. 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

8. 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

9. 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

10. 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

11. Current income Projected income Financial Sustainability Plan Current expenses Projected expenses Annual budget Petty cash box Bank account Monitoring & support Deposits withdrawals Cash in Expenses out Documents& records Slips & vouchers Cash book Bank Book Monthly report Financial Management system Audited financial statement Annual report

12. 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

13. Sustainability Planning Summary Report

16. Future challenges • Make plans living tool • Use them often • Use them for financial planning AND • Use them for business and enterprise planning • Monitor them often • Revise and update

17. Thank You