P2P-NextFinances

P2P-Next Finances

Summary:

• Take Personnel, Equipment, Travel and Indirect Costs (EC: Overhead - 60%) - all of which EC call Innovation. Add Management. Take 75% of the whole lot and you've got the EC contribution/grant to the project budget.
• Kendra Foundation has to raise the other 25%. That's 15349.38 EUR = 12213.10 GBP = 24225.90 USD per year. See the note on currency below.

Funding over next 4 years:

• Innovation: 240840.00 EUR
• Management: 4750.00 EUR
• Total: 245590.00 EUR
• EC contribution: 184192.50.00 EUR
• Kendra contribution: 61397.50 EUR

Sponsorship:

• Kendra Foundation is currently seeking sponsors (big and small) to help raise the 25%. Also, there is a need to raise funds beyond the 25% for tasks not covered in P2P-Next - such as overhauling the website and promoting Kendra Initiative.
• Companies and individuals can pay single sums or set up standing orders to cover the whole or part of the 4 year period.
• Please note Kendra Foundation is a company limited by guarantee. There are no shares. It is not possible to issue share options. This kind of company is therefor suited to non-profit organisations. For more specific information see the [Memorandum and Articles of Association].

The exchange rate (Grant Transfer Exchange Rate) is correct as of 20 February 2008 - the date when we received 32441.50 EUR into the Kendra Foundation bank account.

P2P-Next Projected Budget For Kendra Foundation
	4 Years	4 Years	20 February 2008	Per Annum	Per Annum
	EUR	GBP	Exchange Rate	EUR	GBP
Personnel	135525.00	100818.29	0.74390919	33881.25	25204.57
Equipment	3000.00	2231.73	0.74390919	750.00	557.93
Travel	12000.00	8926.91	0.74390919	3000.00	2231.73
Indirect Costs / Overhead (60%)	90315.00	67186.16	0.74390919	22578.75	16796.54
Subtotal	240840.00	179163.09	0.74390919	60210.00	44790.77
Management	4750.00	3533.57	0.74390919	1187.50	883.39
Total Project Costs	245590.00	182696.66	0.74390919	61397.50	45674.16
EC Total Funding (75% Project Costs)	184192.50	137022.49	0.74390919	46048.13	34255.62
EC Personnel (75% Personnal Costs)	101643.75	75613.72	0.74390919	25410.94	18903.43
Sponsorship needed (25% Project Costs)	61397.50	45674.16	0.74390919	15349.38	11418.54
Total Man Months	19.50
Average Man Month Rate	6950.00	5170.17	0.74390919	83400.00	62042.03
Overhead Remaining	28917.50	21511.99	0.74390919	7229.38	5378.00
Total Pay (Per Person)	67762.50	50409.15	0.74390919	16940.63	12602.29
Total Employers National Insurance (Estimate)	13552.50	10081.83	0.74390919	3388.13	2520.46
Total Days	351.00			87.75
Total Days Per Person	175.50			43.88
Total Hours (7 Hour Days)	2457.00			614.25
Total Hours Per Person	1228.50			307.13
Hourly Rate	55.16	41.03	0.74390919
Hours Per Person Per Month	25.59

Currency And Exchange Rates:

• Currency conversions are a nightmare to keep track of when one is trying to make projections. The total budget set by the EC is in EUR. Kendra Foundation gets paid in advance every 6 months. When the cash hits the bank account it gets converted into GBP at what we call the "Grant Transfer Exchange Rate". From that point on the whole budget needs to be re-calibrated for the next 6 month period. So, salaries will change by a small amount to keep track of this.
• For reporting to European Commission need to use the official EUR/GBP Exchange Rates.
  • [Euro Foreign Exchange Reference Rates]
  • http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-gbp.en.html
  • http://www.ecb.int/stats/exchange/eurofxref/html/gbp.xml
• Use the rate at for the date of the report and not the date of the transaction.

VAT

• http://www.hmrc.gov.uk/VAT/managing/international/esl/country-codes.htm

Work Packages:

• Total man months: 19.50
• WP2: 1 MM
• WP3: 2 MM
• WP5: 13.5 MM
• WP9: 3 MM
• Total = 19.5 MM

Budget Options - financial categories for spending allocation - donators are given the option of where they want their funding to go:

• P2P-Next Personnel
• P2P-Next Equipment
• P2P-Next Travel
• P2P-Next Management
• P2P-Next Overhead
• Kendra Personnel
• Kendra Equipment
• Kendra Travel
• Kendra Management
• Kendra General
• Kendra Website

Expenses:

• If the expense is paid for by company Debit Card then there is nothing to reimburse to the employee.
• Expenses (either Debit Card or Cash) need to be accounted for in 3 currencies:
  • XXX (the originating currency) if other than EUR or GBP.
  • GBP for UK tax reports.
  • EUR for EC FP7 project reports.
• For Debit Card expenses:
  • In EUR: Bank converts to GBP value.
  • In GBP: Kendra calculates EUR value using last Grant Transfer Exchange Rate.
  • In XXX: Bank converts to GBP value. Kendra calculates EUR value using last Grant Transfer Exchange Rate.
• For Cash expenses:
  • In EUR: Kendra calculates GBP value using last Grant Transfer Exchange Rate.
  • In GBP: Kendra calculates EUR value using last Grant Transfer Exchange Rate.
  • In XXX: Kendra calculates GBP value using exchange rate on day of transaction. Kendra calculates EUR value using last Grant Transfer Exchange Rate.
• Grant Transfer Exchange Rate is the exchange rate that was used to covert the EU funds from EUR to GBP.
  • Grant deposits will take place every 6 months. There will be a new Grant Transfer Exchange Rate every 6 months.
• For UK tax purposes all employee expenses (either Debit Card or Cash) need to be P11D reported and, as they will be wholly business expenses, a section 336 should be filled out for tax exemption.
  • Expenses need to be accounted for and reported at the time that the employee incurs the expense from both UK tax and EC FP7 project perspectives - and not when the employee gets reimbursed.
• All paper receipts are fixed on A4 sheets and kept. These are scanned and archived online and linked from financial database. Electronic receipts are PDFed and similarly archived and linked from financial database.

General information for Kendra Web:

• Multi currency - for tax accounting we need GBP. For EU reporting we need EUR. And if we get funding from KDI we'll probably need to report in USD.
• Multi bank account - for now we have current, savings and PayPal?. But could see us going to an EUR or USD account if required.
• Need to book out future projected expenses so we can make cash flow forecasts.
• Grab in RDF exchange rate information from EU website for example: http://www.ecb.int/stats/exchange/eurofxref/html/gbp.xml
• Need to show current and future funding on the website.