Strategic financial plan for a non-government organisation (NGO) over the next 3 years - Essay Example

Strategic Financial Plan for WVP Kenya for the next three years Overview of WVP Kenya WVP Kenya is a locally based inKenya’s Nyanza and Western province. The organization began its work in 2005 upon a small group of youth from Kenya and Europe had a meeting in Bondo district. Its purpose is to enhance the health and welfare of a section of the most susceptible youth and children living in societies that are highly affected by poverty and HIV menace. The organization has a target of seeing the society in question who feels endowed to cater for the needs of the children. In achieving this, the organization builds the potential of the society groups and operates with them as supporters in giving the youth and children with life and wellbeing chance to enhance the opportunities. The organization has been working in conjunction with the locally based NGO’s in the locality with a mutual vision which is to provide the youth and children in the Kenyan Community a just start to life. This is after the youth were not satisfied with the manner in which the majority of NGO and charities in the locality were going about in supporting susceptible children. The organization was registered in 2006 as a community based organization in Kenya and as a charity in the U.K while in 2009 it was put on authenticated as an NGO in Kenya. For each pound given to the NGO 97 % is spent in running programmes that enhance the youth and children’s life and the remaining 3 % is used to raise the next one pound. Organizational Structure The long-term partner for the organization is Wereldkinderen which has vowed to continually support the activities of the organization with a determination to promote the group in enhancing the enforcement of social group projects in more than 16 societies for the next coming 5 years. There are plans for the projects which foster the business to influence more on the children and communities. There are three more communities which the organization intends to work with and support their programmes of which Chello Foundation has promised to offer support for more 166 scholars by the onset of 2012. Scholarship program Community based programs Sports and health program Children support program Donor Chello Foundation & Private Individuals Wereldkinderen & Liberty Foundation Private individuals Churches and private individuals Duration Since January 2007 up to date Since April 2008 up to date Since 2006 up to date Since 2006 up to date Number of beneficiaries 391 but set to increase 750 also set to increase 1200 but set to increase 66 but currently set to rise Approach and Aim To equip the most disadvantaged children and youth with secondary, post-secondary and vocational education to enable them be independent in life To support the community based projects which will boast their living standards hence alleviating poverty in the communities To enhance a healthy lifestyle and health awareness with susceptible children and youth at risk. To give support to orphans and vulnerable youth to enable them be independent and live a successful life Jacquie Cheung is very handy in operating over all sites in an effort to enhance the systems of reporting which has rapidly improving the financial, operational logging and mechanisms of reporting. The organizational new compliance officer is Jonathan Barlow who has a Masters in political economy of late development from the prestigious London school of economics. He has a vast experience through his extensive travel over the Sub-Saharan nations. Significantly, Jacque who has since taken over from Jonathan as a trustee with the WVP Kenya is more than willing to work with other staff in Kenya. The organization has plans to expand their potential and capacity for the operations in Kenya where more members will be brought on board such as volunteers and staff to help in the process of expansion. Funding and Future Financing Of Different Programs Dorridge Methodist church has been instrumental in giving charities to the organization. Being one of the Trustees the church launched events in September in regard to the existing programmes where the congregation has granted immense support for the foundation. Fundraising has been one of the major sources of funds where the church raises funds from the community to buy goats and chickens for some of the community based groups to raise income for the members. The church has made it possible for every child in the church to have an egg and set a target of ?4 to a mass of which they then purchase a chicken. The current collection by the church stands at ? 300 of which according to the initiatives by the church this amount is set to rise to a high of ? 700 given the community is beginning to realize the importance of fundraising for the community. Relationship of the Organization with Donors and other Stakeholders Currently the organization runs various programs which are funded by different groups and individuals. The program which began in 2007 has 391 children benefiting from the project. The main objective of the program is to offer children with disabilities with secondary, primary and vocational schooling via family empowerment and sponsorship. Community based groups program has Wereldkinderen and Liberty Foundation as the main donors. This project began in2008 and its aim is to enrich the society by giving them social security or building the social potential of the community through grants of capital. Lastly, the organization runs another project known as sports and health living which is funded by private well-wishers. The project began in 2006 and it has had an impact on more than 1,200 children promoting their healthy co-existence and reduced the risk of the youth and children exposure to disease. Child support is also another program run by the NGO but funded by private persons where about 66 children are supported (WVP Kenya 3). The following is the 5 year sources and use of funds Source Year 1 Year 2 Year 3 Year 4 Year 5 Fundraisings ? 350 ? 400 ? 400 ?420 ? 450 Donations ? 7,305 ? 7,000 ? 5,800 ? 8,000 ? 7,000 Grants ? 150 ? 70 ? 400 ? 100 ? 300 Investments and retained income ? 200 ? 150 ? 50 ? 100 ? 50 Uses of funds The following is the proposed application of funds from the sources Scholarships ? 7,305 ? 7,000 ? 5,800 ? 8,000 ? 7,000 Sports and health ? 150 ? 70 ? 400 ? 100 ? 300 Community project ? 350 ? 400 ? 400 ? 400 ? 300 Child support ? 150 ? 100 ? 50 ? 100 ? 80 From the schedule above the organization shows great ambitions in regard to the sources and the subsequent uses of funds for the next 5 years. It is apparent that scholarships to students have been given top priority in the budget since education builds the future of the youth and the future generation towards independence and self sustenance. Moreover, one of the most critical element that was observed in the community that is Western and Nyanza province was the high cases of school drop outs for orphans and the inability or deficiency in the manner in which resources were distributed. Notably, as one of most threatening factor regards the prevalence of HIV and poverty which has left majority of the children and youth leaving school due to lack of support, community based groups. The community based groups are meant to give total support to the groups with an aim of empowering youth and women into their autonomy. Financial Strategies WVP Kenya has various financial strategies in its quest to provide for the community. The Organization critically observes that there is an increasing concern among the African children. The African children are increasingly turning into caregivers for the parents living with HIV/AIDS. They provide essential palliative care and nursing to the parents. In most cases they also do play a fundamental duty in maintaining their households. Thus in pondering of methods or strategies of supporting this group, the staff from the local WVP Kenya in the Western Kenya which has made use of methods that is participatory which promotes people to replicate and grow the dimensions on their living which requires funding. Funds are needed in the process of producing and replicating on the images on the ground. The organization aims to involve the local people in recognizing the challenges to their health and well-being and improving the ability of the policymakers in identifying the issues. WVP-Kenya has wide experiences in regard to the major role it has in recognizing and coping with the challenges and thus its budget has been modified accordingly to cater for most demanding issues which include facilitation of the action plans. Some of the common financial strategies used in identifying the challenges in the community. Therefore, it has used some of its funds in giving about 48 young care giver children between the age of 12 and 17 with cameras that are disposable. The main aim is to reduce the costs involved in identifying the challenges by using other people or agents. The children who give care to the parents with HIV are picked by the health staff in the community to participate in the project on the foundation of the support for the sick household members. These actions are normally conducted in the Bondo district of the Nyanza province of Kenya. Reserves policy Provided that the devastating major part of the NGO’s earnings persists to be limited in general and is anticipated to be used within a period of one year or less, an official reserve policy has not been put in place. The characteristics of these donors dedication to the NGO, in which finances are allocated for up to a period of four years, implies that there is a potential in line with the future level of income and up to now the NGO has established to make good use of the resources accessible for the programs in Kenya. In the years to come, trustees are expected to continue monitoring the necessity for an official reserve policy. Risk Management Policy The NGO’s trustees take into mind the risks that affect the charity and its operations on a continuous basis, as part of its programs and procedures via their constant visits to Kenya. The trustees have an obligation to take a considerable care to ascertain that the claims mentioned of the funds are being satisfied and this is monitored through assessment of the operations and control methods and constant reporting of the Kenyan organization of WVP. in the course of the past operational year, risks related with lack of conformity to the accounting procedures and cash in the Kenyan set up have been recognized and considerable solidification of the elements and form of the control methods in Bondo Office have so far been executed inclusive of the recruitment of a compliance officer. Assessing the risks will help the NGO be ready for future development of more considerable risks recognition for the NGO inclusive of the political risk related to interruption to operation, inadequate security to new projects’ funding in support of the NGO’s success in its objectives and dependence on the NGO on fundamental members to staff. Whilst political risk might be difficult to prevent in small firms, the trustees can seek for ways of mitigating the risks by employing institutional methods and principles that minimize its dependence and distribute duties in the entire organization. Internal Financial Controls In July 2010 it was brought to notice by the field members of staff that a considerable amount of money could not be accounted for. The amount approximated to be about Ksh 300,000 went missing because of several internal procedures that could not be adhered to by the local staff. Preceding to this revelation the trustees executed numerous steps with an aim to secure the assets of the NGO and implemented a complete investigation and monitoring of the cash management procedures. In this manner the control system has so far been revamped and solidified, with the help of a compliance officer recruited to give a higher level of security and responsibility in the management of cash. Upon being directly involved in the execution of the new mechanism the trustees have developed confidence in the ability to ascertain there is no repeat of the embezzlement of money. While there was no fault was established via investigation, responsibility of staff for overlooking the former control methods has consented to correct the loss individually and as such the long-term cost to the donors which is expected to be minimal. Implementation of the Strategies In executing these strategies WVP Kenya has made it possible by facilitating the group discussion and putting the issues raised in regard to the child made images and dimensions to enable it create efficient social action strategies which revolve around the activities involved. In the long-run the implementation of the strategies is strengthened. The children are put into two youth groups where the action plans are given to WVP Kenya. Some of the strategies include; maize selling and selling of Kale, purchasing of school uniforms and poultry keeping. WVP Kenya has endowed the clubs with financial resources that is US $ 70 per every child required to execute the activities and facilitation of their development. Details in regard to project are issued, however the experiences do emphasize the development duty. It must be noted that health connected requirements and predicaments which face the groups assigned. Moreover, the pictures can be used to put into light the strategies which help in giving the members and service with the necessary financial help. Conclusion In light of the above discussion it is essential to note that WVP-Kenya has yet bigger steps to cover given the increasing number of orphans in the Western and Nyanza provinces of Kenya. For example some of the emerging issues concern the widespread poverty level in other districts of the Western and Nyanza Province. Moreover, it is also apparent that the Kenyan government might be having insufficient funds for extensive development of the infrastructure which leaves most of the residents in the region with insufficient health care. Thus to enhance the accessible services to the susceptible children and youth construction and growth of infrastructure is essential towards making it sure that the remote and marginal areas have access to efficient health care products. Nevertheless, community based groups and churches have been instrumental in promoting the dissemination of services which facilitate the completion of the pending projects which have been made possible through fundraisings and investments such as those mentioned. Work cited WVP Kenya Annual Report 2011, Financial Report, 2011, London Read More