AFS Network Organization: AFS Programas Interculturales Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . .

Completed by: Andres Quintero Gonzalez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EVALUATION OF 2016NH/2017SH HOSTING FEE NEGOTIATIONS IN 2015

Instructions:

After the close of the 2016NH/2017SH hosting fee negotiations, we are conducting another evaluation of negotiations. Your feedback will help to inform the deliberation of the Network Financial Arrangements Review group and will influence potential revisions to policies, calendar, or process. Therefore, your input in this evaluation is particularly important.

Hosting fee negotiations are governed by Art. 33 of Partnerships, its interpretation in the Board policy on negotiation, the calendar for negotiations, and the service level agreement (SLA). All of these documents can be found in the Finance Module of AFS Global under “Network Financial Arrangements”, “Financial Policies” and “Financial Arrangements”.

Kindly complete this questionnaire by 13 July 2015. Your input is much appreciated and will provide the basis for how we proceed in the next round.

1. Participation in Negotiations

1.1 Did you participate in hosting fee negotiations for the 2016NH/2017SH program years? yes x no

If yes, how many partner organizations did you negotiate with for sending and hosting? Less than 5 x

5 to 10

11 to 15

16 – 20

More than 20 partners

1.2 Did you participate in hosting fee negotiations for the 2015 and/or 2014 program years? yes x no

If your answer is no to both questions 1.1 and 1.2, i.e. if your hosting fees have remained the same for three years, you do not need to answer the remaining questions, unless you participated in negotiations about other Partners’ hosting fees. In that case, and if your answer is yes to either 1.1 or 1.2, please continue.

Negotiation questionnaire 2015 2

2. Goals for and Outcomes of the Negotiations

2.1 On your Hosting:

2.1.1What were your top negotiation targets as a HOSTING for your most important (highest volume) sending partners - please rank your top 5 targets from 1 to 5:

Not overcommit on my own hosting capacity _____

Raise hosting fees _3__

Maintain hosting fee level constant compared to last year _1__

Reduce hosting fees _____

Safeguard or build a negotiating position for the reciprocal discussionon my organization’s fees to be paid to partners _4__

Minimize the effort and energy spent in hosting fee negotiations _____

Avoid needing to use reserves to fund potential financial gaps,if hosting fees received fall below expectations __2__

Avoid discussion about my organization’s financial situationand being challenged on hosting cost _____

Secure best possible deal for my organization - not getting worse terms than other partners __5__

Other target _____

If you chose “other target” as one of your 5 top targets, please describe what it was:

We are not hosting but these would be our top negotiation targets

2.1.2How well did you achieve your goals (List goals from question above and rate accordingly)

Fully achieved as expected

Substantially better than expected

Somewhat better than expected

Somewhat worse than expected

Substantially worse than expected

2.1.3Please list your most important sending partners these responses refer to:

We did not have hosting fee negotiations as Hosting Partners.

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2.2 On your Sending:

2.2.1What were your top negotiation targets as a SENDER for your most important (highest volume) hosting partners overall -please rank your top 5 targets from 1 to 5:

Get firm commitment on available hosting slots __4__

Maintain hosting fee constant compared to last year _____

Reduce hosting fees __3__

Safeguard or build-up a negotiation position for the reciprocal discussionon my organization’s hosting fees and places _____

Minimize the effort and energy spent in hosting fee negotiations _____

Avoid needing to raise participant fees for my sending program __1__

Avoid needing to use reserves to fund potential financial gaps,if hosting fees to be paid rise above expectations __2__

Get transparency on the appropriateness of hosting feesin light of my partners actual financial situation _____

Secure best possible deal for my organization - not getting worse terms than other partners __5__

Other target _____

If you chose “other target” as one of your 5 top targets, please describe what it was:

2.2.2How well did you achieve your goals (List goals from question above and rate accordingly)

Fully achieved as expected

Substantially better than expected x

Somewhat better than expected

Somewhat worse than expected

Substantially worse than expected

2.2.3Please list your most important hosting partners these responses refer to:

GER (10 to 8) & BFL (4 to 2) reduced our spots and increased their fees.

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2.3 For your most important (highest volume) partners, did the agreed final fees

Stay the same as your initial proposal

Increased a bit (<5 %) x

Increased substantially (> 10%)

Were reduced a bit (< 5%)

Were reduced substantially (> 10%) ---

Please comment:

3. Negotiation Calendar for 2016NH/2017SH (looking back)

Point 5 of the Policy on Negotiations between Network Organizations requires that a calendar for negotiations be established. Based on experience and feedback in earlier years, the calendar was changed for the 2015 and 2016 negotiation rounds (please review it in the Finance Module of AFS Global under “Network Financial Arrangements”, “Financial Arrangements”). The timing of negotiations (March-May) was set as a compromise between the needs of hosting and sending partners. The idea is to make it possible to combine negotiations for hosting fees and number of hosting spots in the same time frame. A number of Partners, USA and GER in particular, have let it be known that they are not able to agree on hosting spots more than a year in advance, and USA in particular has asked Partners to agree on both spots and hosting fees later in the year.

3.1 Was the calendar appropriate from your perspective? yes x no

Please comment:

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3.2 On advice of the Network Development Committee (NDC),no allowance was made for in-person negotiations as had been the practice in prior years.After the 2016 round, do you agree that in-person meetingsare generally not necessary for these negotiations? yes x no

Please comment:

I have never participated in a in-person negotiation.

4. Negotiation Calendar Looking Forward

Going forward, we see 4 different options and would like to understand your preference:

4.1 We would like to stick with similar timing as in the negotiation round just finished (even though it means that hosting fees are not yet finalized at the time we have to calculate and publish our sending fees).

4.2 We would like to negotiate for both hosting fees and hosting slots at the same time but half a year later (i.e. so that in-person negotiations for the 2017NH/2018SH programs can be held in connection with the World Congress in October 2016, acknowledging that sending fees will have to be set and published based on assumptions and experience rather than finalized negotiations.

4.3 We would like to negotiate for both hosting fees and hosting slots at the same time but one full year earlier (i.e. so that in-person negotiations for the 2017NH/2018SH programs can be held in connection with the Network Meeting in October 2015, even though it may mean that some Partners may not be able to finalize hosting spots or fees at that time and will ask for exceptions from the rules.

4.4 We have negotiated with our Partners according independent of the calendar and don’t feel that a calendar set by AFS International is necessary at all.

For the future, we prefer: 4.1

4.2

x 4.3

4.4

We don’t like any of the 4 options and propose the following concrete alternative:

Negotiation questionnaire 2015 6

5. Service Level Agreement (SLA and Gross Margin Appendix)

To provide a framework for agreements and to ascertain that all necessary points are covered, a Hosting Service Level Agreement (SLA) has been provided for your use in the negotiations.

5.1 Did the SLA and GM Appendix prove useful in your negotiations? yes no

Improvements in the SLA you suggest:

I have not use it.

6. Any other issues not covered in this questionnaire you wish to comment on: