If you are conducting a
larger project that involves a series of tasks over
time, then it is acceptable to rely on
a schedule of payments, deposited
in your bank at agreed times. Again,
however, make sure these payments
are guaranteed and contracted in
writing before you start your project.
It’s not what you want to hear, but it
really is the best way. Unless you are
100% sure of your funds, this is the
only way to avoid getting stung.
Financial management is also a
matter of keeping and demanding
receipts and evidence of expenditure from everyone on your team.
This can be very hard when you are
dealing with small amounts, but it is
still very necessary. Small amounts
add up to large ones and if you have
unidentified gaps in your expenditure no one will take you seriously.
It is often wise to appoint one team
member to be the treasurer to look
after the accounts. However, as project manager you should always be
acutely aware of your finances and
the exact state of your balance sheet
from one day to the next.
Having the money at the right time to pay the bills
is the biggest challenge faced by every businessperson and project
and old. The way you will handle your cash flow will depend on
the size and
time span of your project. If you are completing a small project,
main objective, digging a well for example, then the main piece
of advice is
this: Do not start your project until all the money you need is
in the bank.
Stick to your morals.You are the
future! If you don’t kill corruption,who
will? Encourage all your team members
to join you on the moral high ground. Holding up positive
values today makes
people more likely to do so tomorrow.
Once our generation become Ministers
and senior officers in companies and
public institutions, the positive values
we learn on these projects will become
the norm and we will finally be able to
break this appalling cycle of corruption.
Not sure what a balance sheet should look like? Your balance
sheet should show the amount of money in the bank (in credit) set against
the amount of money you have to pay out (the debit) . If your finances are
healthy the resulting number should always be a plus!
A.Fixed Assets -
Tangible assets:Items bought for the project that still have a value;give
a rough idea
of their value on the second hand market.
B.Current Assets -
1)Debtors:outstanding bills and invoices
that you still have to pay.
2) Cash in bank:any money that you still
have left in the bank.
3) Creditors:any money owed to you.
C.Net Current Assets -
This is what you have (2) + what people
owe you (3) less what you owe others(1)
D.Net Assets -
Your net current assets (C) + your fixed
E .Plans for Disposal
At the end of a project,your balance sheet should show zero net
assets.If you have been able to save funds during the project by,
for example,getting materials donated, you have to explain to the
sponsor what you are going to do with it or they may ask for the
balance back.So use it to expand or continue your project.
Be Aware. Don’t be naïve or in denial about what goes
on.If you are
aware of corruption,then it is easier
to take steps to avoid it.
Avoid Gifts. Don’t give or receive
gifts as it is impossible to draw a
firm line between a gift and a bribe.
The giving or receiving of any gift
could compromise your position.
Know your context.Be aware of
clan/tribe structures and how