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Session 5: Successfully managing a grant contract end to end with practical tips

Session layout

  • Budget, types, budget monitoring and control
  • Grant contract terms and condition
  • Challenges and Tips for grant management

Budget basics

    A budget is estimation of revenue and expenses over a specified future period, usually the project period for a grant.

    It is financial plan (blueprint) of the project plan. One need to budget the plan and not vice versa.

    Budget is a Planning (align with objectives)Tool, Control (within policy framework) Tool, Compliance (ceiling) Tool and Mirrors the Financial Report

    A budget covers quantitative, qualitative and cost aspects.

    The purpose of budget is to:

    • Ascertain reasonable estimation of costs for interventions/activities in a grant proposal/award.
    • Segregates costs-direct/common/indirect or OH costs
    • Cost matching/sharing (co-financing) for multi donor grant, in kind match.
    • Is a framework for donor-donee in a grant award
    • Enables course correction based on measurement of actual achievements versus estimates
    • Statement of SOF and Estimated Costs
    • Enables Recognition-activity, group, period, income, expenditure, deficit, surplus

    Pre requisites

    • Organisation structure
    • Data
    • Chart of accounts
    • Managerial support
    • Formal process for formulation

    Types of Budgets:

    Activity budget

    Activity based budget as the name suggests, covers the costs required for implementing a project activity.

     

    In ABB, one looks at resources required for completing an activity and the resources cost

    For example, if project strategy is to build capacity of civil society leaders, workshops is an activity. Workshops costs would be towards hiring resource persons, booking a venue, transportation cost, food, lodging and materials and handouts.

    Activity Budget for Conducting a Workshop

    Particular of Expense Rate per unit No of Units Total in Rs Trainer Fees @ Rs 1000 per day 3 days 3,000 Venue @ Rs 500 per day 3 days 1,500 Rental for Furniture @ Rs 500 per day 3 days 1,500 Rental for Equipment @ Rs 100 per day 3 days 300 Catering Exp for Lunch and tea two times @ 100 per person 55 persons X 3 days = 165 16,500 Conveyance paid to attendees

    @ Rs 50 per person per day

    50 attendees x 3 days = 150

    7,500 Printing of handouts @ Re 1 per page 50 pages x 50 copies = 2500 pages 2,500 Grand Total

    32,800
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