Operations

Basic Training on Conservation Trust FundsCape Town, South Africa March 31 – April 2, 2009

Standard Operational Procedures

• An operational manual defines financial and administrative procedures for the day-to-day operations of a CTF

• Based on the CTF’s by-laws and accounting and labor laws in the host country

• Ensures consistent performance of a CTF.

Operational Manual

Full fledged document

Defines staff roles and responsibilities

Sets a uniform of standards for staff and project selection

Should allow for modification as needed

CTF Staff Composition should have

An Executive Director with support staff

Clearly defined staff roles and expectations

Key Documents

Strategic Plan

Annual Work Plan

Operating Budget

Technical and Financial Reports

Administrative Costs

For most CTFs, administrative costs range from 10-20% of their total annual budget

Donors often include a limit on administrative costs as a condition in their grant agreement

Important to define what costs are considered administrative costs

Accounting and Auditing

Most donors require an independent annual audit by an internationally recognized accounting firm

Case Study: Caucasus Protected Areas Fund

Regional Fund (Armenia, Azerbaijan, Georgia)

Area includes 80 protected areas

All operational duties handled by Fund Director

Maintaining low administrative costs is a priority

Case Study: The Brazilian Biodiversity Fund

Country-specific Fund (Brazil)

Supports 60 protected areas

Operational duties are handled by a staff of 65 (77 with ARPA)

Administrative costs = 15 % (2007)

Questions

What happens when a CTF is not given a passing grade by an independent auditor?

Why is it important for to maintain low administrative costs?