Financial strategies and plans ppt alt caritas switzerland

Financial strategies and
plans
An example of Caritas Switzerland
Hans Krummenacher-Wüest

1


Topic areas
What are the particular issues and
financial demands related to Caritas
Switzerland?  Particularities
What are the responses and solutions to
these particularities?
 Suggested solutions
Your questions, suggestions; discussion.
Hans Krummenacher, Berlin 8.5.2008

2


Financial strategies and plans (example of Caritas Switzerland)

Particularities

Hans Krummenacher, Berlin 8.5.2008

3


Particularities (1/4): financial mechanism

Financier

Relief
Organization
Free Earfunds marked
funds

Primary Task I
(Optik HW)

Benefit of
recipient

 Zielkonflikte
Primary Task II
(Optik Fi)

4
Hans Krummenacher, Berlin 8.5.2008


Particularities (2/4): earmarking and
scarcity  Activity fields portfolio matrix

5
Hans Krummenacher, Berlin 8.5.2008


Particularities (3/4): receipts and outgoings are

out of sync
What typically happens
when there is a disaster

CHF
Income

Expenses
31.12.05
Hans Krummenacher, Berlin 8.5.2008

31.12.06

31.12.07

Zeit
6


Particularities (4/4):

administrative overheads

CaCH im
2005: 6.0 %
2006: 6.5 %

7

Hans Krummenacher, Berlin 8.5.2008

Quelle: ZEWO, 11.2005


Particularities: summary (1/2)
1. Funding does not come via the physical
beneficiaries.
2. Funds are earmarked. It is not possible to fund
development of new business ventures (stars)
using profitable ones (cash cows) – assuming
they exist. Cross-subsidy only possible using
spare funds, of which there is a scarcity.

Hans Krummenacher, Berlin 8.5.2008

8


Particularities: summary (2/2)
3. Fund flows (receipts and outgoings) are
completely out of sync time-wise –
especially where donations are
concerned.
4. Not only is the efficiency of the service
provision of interest, but also the nature of
the overheads – especially administrative.

Hans Krummenacher, Berlin 8.5.2008

9

Financial strategies and plans (example of Caritas Switzerland)

SUGGESTED SOLUTIONS:
► Couple strategy and financial planning
► Measure target achievement and deviations; discuss remedial
action
► Establish profit centres (cost centres)
► Key data

Hans Krummenacher, Berlin 8.5.2008

10


Suggested solutions(I/III)
 Plan, do, check, act
►Split strategy into separate activities and
allocate price tags (long-term planning and budgeting)
►Measure target achievement
►Analyse and interpret deviations;
discuss
►Take remedial action
Hans Krummenacher, Berlin 8.5.2008

11


Caritas Switzerland’s planning and

financial controlling process
Contepts

Mission statement/
Constitution

Strategy

Activities planning

Planning
of the year

Workforce planning

Detailed
planning

Budget

Regulations
Medium-term
financial planning

At least
every 5
years

ManagementReview
Workforce situation

Financia statement
Key figures

Hans Krummenacher, Berlin 8.5.2008

MidtermReview

Annually
Quelle: Folie von Jürg Krummenacher, 2008


Medium-term financial planning
(budget plus 3 years)

Hans Krummenacher, Berlin 8.5.2008

13


Long-term planning (approximate)

Hans Krummenacher, Berlin 8.5.2008

14


Long-term planning = target for a
single organisational unit

Hans Krummenacher, Berlin 8.5.2008

15


Deviation analysis

A

J ahres rec hnungen
Beträge in CHF 1,000,000.00

Total Spenden/Legate/Opfer
Beiträge: - Dritter
- Staat
Total Beiträge

IZA
Bu02

IST 02



Bu03

Plan04

Plan05

Plan06

8.4

9.4

1.0

11.9

11.9

11.9

11.9

31.2
13.1
44.4

26.6
9.5
36.1

-4.7
-3.6
-8.3

19.4
9.7
29.0

19.4
9.7
29.0

19.4
9.7
29.0

19.4
9.7
29.0

0.0
0.1
-

0.0
0.1
-

0.0
-

-0.0
0.1

-0.0
0.1

-0.0
0.0

0.0
-0.0
0.0

0.0
-0.0
0.0

0.0
-0.0
0.0

Übrige Beiträge
Dienstleistungen
Verkaufserlöse + Ertr. Aus Projekten (MIG)
Vermögenserfolg (neu ink l. Marchz.!)
 Aufwertungen/Buchgewinne
Abzug MWSt
Total Verschiedene Erträge
-

Total Ertrag

52.7

45.5

-7.2

40.9

40.9

40.9

40.9

Direkter Projektaufwand
Personalaufwand (I)
Werbung (I)
Restlicher Aufwand (I)
Direkte Projektkosten

-53.7
-2.2

-44.6
-2.3

-0.0
-56.0

-0.0
-46.9

9.1
-0.0

-0.0
9.1

-42.4
-1.8
-0.0
-44.2

-41.0
-1.8
-0.0
-42.8

-39.0
-1.8
-0.0
-40.8

-37.0
-1.8
-0.0
-38.8

Personalaufwand (II)
Restlicher Aufwand (II)
Indirekte Projektkosten

-4.3
-0.5
-4.8

8.5%
-

0.1
-0.0
0.0

-3.86
-0.4
-4.3
9.7%
-

-3.81
-0.4
-4.2
9.9%
-

-3.76
-0.4
-4.2
10.3%
-

-3.76
-0.4
-4.2
10.8%
-

-

-

-

-

in % (früher Projektbegleitkosten)

Verrechenbare Kosten
Nicht verrechenbare Kosten
Total Aufwand Betriebe
 Investitionen/Rückstellungen

-

-4.2
-0.5
-4.7
10.1% 
-

-

Berlin
Zuk Krummenacher,
ünfti ge di ver.
Ei 8.5.2008

nspar./M ehrertr.
 Hans

Total Aufwand

16

-60.8

-51.6

9.1

-48.5

-47.0

-45.0

-43.0


Financial strategies and plans (example of Caritas Switzerland)

SUGGESTED SOLUTIONS:
► Couple strategy and financial planning
► Measure target achievement and deviations; discuss remedial
action
► Establish profit centres (cost centres)
► Key data

Hans Krummenacher, Berlin 8.5.2008

17


Suggested solutions(II/III)
►Establish profit/cost centres (= comparing
receipts and outgoings per field of activity)

►Establish fund accounting

Hans Krummenacher, Berlin 8.5.2008

18


Each field of activity has a
different funding mix…

Hans Krummenacher, Berlin 8.5.2008

19


… so planning for each business
area should also be separate
Caritas Switzerland head office: organisation chart
Director*

Jürg
Jürg Krummenacher
Krummenacher
*Executive
Management

Staff Function
Caritas Net

Board and
Director’s Office

Sonja
Sonja Kaufmann
Kaufmann

Paul
Paul Amstad
Amstad
Ann-Katrin Wieser

Operations:

Fairtrade
Fairtrade
Clothing
Clothing Centre
Centre

Conceptual

Studies*

International
Cooperation*

Social Services
and Migration
Switzerland*

Communication*

Personnel
and Quality
Management*

Finance &
Administration*

Carlo
Carlo Knöpfel
Knöpfel

Norbert
Norbert Kieliger
Kieliger

Barbara
Barbara Walther
Walther

Odilo
Odilo Noti

Albert
Albert Schnyder
Schnyder

Hans
Hans Krummenacher
Krummenacher

- Social policy
- Migration policy
- Development
policy
Hans Krummenacher, Berlin 8.5.2008

- Africa
- Asia / Middle East /
North Africa
- Europe / CIS
- Latin America
- Emergency Aid
- Services
- Secretariat

- Service EmergeAid
in Switzerland
- Social engagement
- Integration and social

projects
- Legal advice service
- Fribourg
- Central Switzerland
- Secretariat

- Information
- Fundraising and
Marketing
- Service Education
- Service
Communication
Caritas Net
- Secretariat

- Staff Services
- Staff Development
- Salary Office and
Staff Controlling
- Service Evaluation and
Quality Management
- Secretariat

- Controlling
- Data Processing
- Accounting
- Technical Services
- Secretariat
August
20 2007

Planning dates = targets for
organizational unit “activities abroad”

Fund accounting
Hans Krummenacher, Berlin 8.5.2008

21


Funds = “work baskets”
Balance
sheet
1.1.

Profit and loss account
(periode)
Income/
earnings

Balance
sheet
31.12.

cost/
expense
Point in time
Hans Krummenacher, Berlin 8.5.2008

t (timeline)

Point in time
22


Mobilisation of earmarked funds
 Corporate accounting
with
 profit centre accounting.
 Funds mobilised only if
for an earmarked
purpose.

23
Hans Krummenacher, Berlin 8.5.2008


Fund accounting
 Funding pots – to be administered
temporarily on a trust basis …
 … before the funds can be mobilised for
an earmarked purpose (Funding Regulations 1.1.2005)

Hans Krummenacher, Berlin 8.5.2008

24


Mobilisation of earmarked funds

IZA:

SAM

+ 13.9 Mio.

Partial statement:

- 0.2 Mio.

Caritas
general
Small

- 1.5 Mio.

business- 0.2 Mio.

Total

+ 12.1 Mio.

Hans Krummenacher, Berlin 8.5.2008

25