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Participants 529,646
US$ 151,254,678
Nets 66,252,564

Why our distribution budgets are cost-driver based and why we publish them

Summary
Our distribution budgets are cost-driver based as this helps achieve accurate budgets and aids cost management. We publish them as we wish to share with donors how we spend funds entrusted to us.
 
Detail
Cost-driver based budgets are by their nature highly detailed. Each cost line is developed from elements that determine it. For example a ‘fuel cost’ budget line item would be calculated from the number of vehicles multiplied both by the expected litres of fuel per day and the cost of fuel per litre. Similarly an overall ‘transport cost’ would be developed from a similar approach to the expected cost of truck drivers and of vehicles, with all three items added to determine the overall transport cost.
 
 
The benefits of this form of detailed costing to the overall management of our net distributions are: 
  1. Helps with cost control and also ensures the work that needs to be done is fully costed
  2. Assists clear communication with our distribution partners and the use of templates minimises as far as possible the time the distribution partner spends on necessary administration easing as far as we can their workload
  3. Aids transparency with donors and others as to how we are spending funds entrusted to us
  4. Improves future budgeting through a close understanding of actual costs and how they break down 
In environments where there is the potential for cost management to be challenging, and this is true of the areas in which net distributions are conducted, attention to detailed budgets and following up on actual costs, and publishing them, is very important.
 
It is a strong indication to us when we build a relationship with a distribution partner, to whom we entrust many millions of dollars of nets, there is a willingness to work with cost-driver based budgets and to report on actual costs.
 
We see achieving efficient use of funds as an obligation and, given the substantial sums involved, this approach helps us to do our best to meet that obligation.