Week 5 - 25 Sept. 2013 – Budgets

Last week we talked about planning a schedule.

Today we will talk about planning the finances of a project, which involves developing a BUDGET.

Budget  = a financial plan and a list of all planned expenses and revenue

The purpose of a budget

1.      To know how much you need to request.

2.      To know how much is available to spend.

3.      Accountability

a.       For yourself - Make sure you are not spending money on other things.

                                    Make sure you do not overspend the budget.

                                                This makes you prioritize what you need,

and makes you more efficient with what you do have.

b.      To show your sponsor how much you have spent, and that you only spend on the project.

Steps

1.      List everything involved

a.       Labor - List all personnel working on the budget

b.      Materials - List everything you need to buy

c.       Travel – will you need to go to another town for supplies?

d.      Rentals – will you need to buy land, rent a house etc?

            THIS IS WHY YOU NEEDED to figure out your tasks and schedule last week.

 

2.      Go back and fill in the costs.

3.      Create the budget in tabular form.

a.       On paper

b.      On computer – better, automatic summations

c.       Spreadsheet = A table of values arranged in rows and columns

How to figure out salary: 

money needed for each person = (monthly salary) x (# of months on project) x (% of each month spent on project). 

Accountability DURING the project

Your project manager is ultimately responsible for the budget and makes changes as the project proceeds.

She can however, delegate the task of who manages the budget.

The total amount can never change!  You get what you asked for.

One person must be in charge of the budget –

Tallying up what was spent each week

Informing workers of how much is available in each category

The project manager must take corrective action if a category is overspent.

            He can hire and fire people.

To ensure accountability from everyone working on the project –

            receipts must be acquired for EVERYTHING!

If you overspend a category -

Project manager can rearrange how much is allocated per category.

Keep track of the budget and the schedule.

Bad = half the budget spent, but only ¼ the work done.

Labor

Have a signed contract that details the salary, how often pay, etc.

If you overspend your budget, you will not be able to finish the project and the contractor will not work with you again, and will let others know not to work with you.

This is why many sponsors ask for monthly or quarterly reports.

They want to see your progress, and that you have the budget to finish the project.

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Handed back group projects

Main things – include each item that I ask for, and make it obvious.  I grade as much on following directions as content.

When a company has a lot of proposals to look at, they don’t waste time looking at incomplete proposals.

Write a budget for your group project

1.      On your sheet from last week or new sheet for each task list expenses

2.      Transfer to appropriate table on budget handout

3.      Turn in by 2pm next Thursday.

KEEP ALL HANDOUTS and HOMEWORK!  YOU WILL TYPE UP A FINAL PROJECT PLAN FROM THESE!

Week 4 - 19 Sept. 2013 PHASE 2: Write proposal - Goals, objectives, deliverables, schedule.

Review –

Project Management is ***An endeavor to accomplish a specific objective (expected result or product), which has a clearly defined start and end time, a set of tasks, and a budget.***

Phase 1 – needs identification.  1^st you need to define your goals and objectives. 

Phase 2 writing the proposal which is the written project plan – it shows how you are qualified to do the job, to fulfill the needs, and how you will use the available money, and how long it will take you.

Objective – Make a beautiful campus

Goal – Build a new AUC sign.

Tasks – Specific steps to do this

Goal - a broad statement of what you wish to accomplish.

It will be related to your need.  We need to have a beautiful campus.  Our goal is to build a new sign.

Task - a step toward accomplishing a goal.  Precise, tangible, concrete, and can be measured.  These are the things to do!

When the tasks are done, if properly planned and executed, then you will have completed your goal.

To accomplish that goal, we will do 6 tasks:

1.      Meet to plan what is on the sign

2.      Design the sign

3.      Choose a location

4.      Buy supplies

5.      Build the sign

6.      Write the final report

DO NOT INCLUDE find funding as a task!  You will submit the proposal as your step in finding funding.

Tasks must be SMART - Specific, Measurable, Attainable, Realistic, and Time-bound.

Attainable – the task is possible – it is possible for us to go to the moon.  It is possible for us to clean up all the trash in Cayes.

Realistic – The task must be possible within the time and budget that we have – it is not realistic for us to go to the moon.  It is not realistic for us to clean up all the trash in Cayes.  These are not good projects to attempt.  We can clean up all the trash at AUC!

Deliverables – What you will submit to the funding agency after you complete the project.

Most of the items will be included in the final report: actual budget expenses, pictures, manuals, etc.

How to plan a schedule

The schedule is an estimate of how long it will take to complete each step of the project.

We need to determine the time, start and end dates for the entire project, as well as each task.  This is why we need to clearly define our goals, objectives, and tasks.

1.      List each task and estimate the amount of time it will take for each.

Have someone else estimate the time too, so you will get a better estimate.  Remember – this will be going in a contract.  If you don’t get the project done within the time you say, you will hurt your chances of future work.  Working with a group of people is the best way to get a schedule together.  One person can write the initial list of tasks and time, then all should discuss it.

2.      On a spreadsheet list months down the side, tasks across the top.  Mark in the cells when you will do each task.

3.      Include start, final report, and end.

FYI - Some tasks will over lap

FYI - Some tasks will have waiting times – you can do other tasks during this time

Homework due next week – In your groups fill out the form that describes project objectives, goals, deliverables, tasks, and schedule.

Week 3 - 12 Sept. 2013 - Determine tasks

The instructor was sick.  Students worked in groups to determine tasks for their projects.

Week 2 – 05 Sept. 2013 Identifying needs and funding sources

We reviewed homework and also had a quiz about the project life cycle.

 

Today we talked about Phase 1 - Identify needs (Chapter 2 of Gido textbook on reserve in the library).

You might see a need and know what steps can be taken to address the need.  You have an idea for a project that will solve the problem.

But, you will probably need money to do this project.  And the people giving money will want reassurance that you will do a good job.

Thus you need to write your project plan down.  This is called the project proposal.

If there is not an obvious source of funding, you can look for one.

Organizations post their needs in Request for Proposals (RFPs).  The proposal is the solution that you submit in response to a need.  The proposal is a document that contains the tasks, budget, and schedule that will solve the problem.

4 things to look at in an RFP to decide if you should read further:

1.      What kind of projects are funded

2.      Who can apply

3.      Due date – if late it won’t be read, if you hurried to write it it won’t be good.

4.      How much money is available – If you have a small project don’t apply with a group that offers only large amounts of money.  If you ask outside of their range they won’t fund it.

Where do RFPs come from?

If you are with an organization, such as AUC, who has a need and wants to pay someone to solve that need, then you can develop an RFP to distribute to other organizations or even individuals.

You can post the RFP on the internet, in newspaper, in journals.

Likewise, if you are looking for funding, look here for RFPs:

• Webpages of organizations – o   Samaritan’s Purse   o   Universities   o   Etc.
• Government websites.
• Network with people.  Often you will know an RFP is coming by word of mouth.

Remember – RFPs are from groups who want to fund projects.

Why we need to be familiar with this?   In grad school you will need to apply for research money

In your non-profit jobs you will need to apply for operating funds

We looked at Coca-Cola's website:

http://www.thecoca-colacompany.com/citizenship/application_guidelines.html

And an application form for Better World Books LEAP grant.

Internet search terms:

• big corporation names + funding, community involvement + Haiti
• organizations you know such as USAID, + Haiti + funding + specifics such as agriculture, environment
• Grants + Haiti + specifics such as agriculture, environment

RFP tells you  

(You do not have to know all these in this order, just be able to tell me a couple key ones.)

1.      Name of issuing agency

2.      Whom you are seeking – local companies? Education institutions?  Non-profits. Students, etc.

a.       And those not allowed – individuals, government agencies, etc.

3.      Statement of the problem

4.      Scope of Work (SOW) – what the contractor should do

a.       Task 1 – Create a pit on campus to bury non-burnable trash.

b.      Task 2 – Create a pit on campus to burn non-toxic burnable trash

c.       Task 3 – Create a compost pile on campus

d.      Task 4 ­- Clean up all the trash on the AUC campus and dispose of in a proper and responsible manner

5.      Requirements –

a.       Experience in trash clean up and disposal

b.      Demonstration of consideration of environmental factors in trash disposal

6.      Deliverables

a.       Progress reports submitted every month.  (for longer project quarterly may be sufficient)

b.      A plan for the pits and compost location – to be approved before digging begins

c.       Documentation of cleanup – before and after photos of the pit sites, of the garbage etc.

d.      A final report documenting the project – pit locations, dimensions, etc.

e.       Due date – date project must be completed

7.      Schedule – When the agency will choose a contractor

8.      Type of contract –

a.       fixed-cost = the customer will pay the contractor a fixed amount regardless of how much the work actually costs the contractor

b.      time and materials = the customer pays the contractor the actual costs of labor and meterials

9.      Payment amount – amount available and expected budget sizes

10.  Payment schedule –

a.       Pay one lump sum at end of project

b.      Pay a percentage as milestones are reached = 1/3 amount after plan submitted, 1/3 during, 1/3 at end etc.

11.  Proposal content (we will cover this throughout the semester)  >>>>>>

12.  How to submit – contact person

13.  Project Evaluation Criteria

RFPs will have a deadline, often 1 or 2 months.  This means from the time it is released you have 1 or 2 months to prepare the proposal.  Stay organized so that when you find an RFP it is easier to write your proposal.

Meet in groups - BRAINSTORM IDEAS FOR PROJECT

Guidelines:

1.      A project that you have been wanting to do or that means something to them will be more fun and productive.

2.      Something that benefits the community will have more support and possible funders.

3.      It has to benefit AUC.

4.      Examples – basketball court on campus, education program in an elementary school, nature walk through campus (signs and benches), new entrance sign, fence around the perimeter back by the farm, fence around the Audubon sanctuary, trash clean up & recycling (water sacs for nursery), fish pond, cafeteria, tours of the campus.

5.      Submit a sheet of paper NOW with  Member names

        Project title

        Brief description – state the problem.