Programme Cooperation Agreement 2010 – 2011

Figure 6: Board-approved 2012bBudget by programme

10.2.2Projected expenditures

• The annual budget process has been strengthened , inter alia by the introduction of updated criteria (and corresponding staff training) on leveraging, develop- ment impact, and stricter compliance with standard project management guidelines; • Staff charge-out rates (the cost per hour of staff ) are unchanged and have not been significantly increased since 2007; and • As the Communications and Outreach Programme provides cross-support to the other units, the applica- ble staff rates internally are discounted. Further, core communications tasks are charged at a lower rate than external project work in other units.

Figure 7 below displays the distribution of MNOK 54.4 in projected income for 2012, including the estimated sur- plus of MNOK 2.2. It is calculated that, of this amount, a ‘Contribution Margin’ of MNOK 13.0 will be generated to finance fixed overhead costs, which are estimated to MNOK 10.8. Furthermore, it should be noted that: • With the goal of greater resource efficiency in mind, GRID-Arendal’s budgeting and planning systems have been improved inter alia through the introduc- tion of updated tools and procedures;

Figure 7: 2012 Board-approved project expenditures, contribution margin & surplus by programme

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