Tilbage

The Mill was renovated and installed in November 1998 with assistance of the Senior Metal Club members from Denmark. Construction of the Mill house was financially supported by the Lolwe Foundation and the Green Foundation. Not all the receipts were received by now, but this is not an exceptional case among the NMA mills.

The mill started operation on  29.11.1998, broke down two days later, and resumed operation on 27.3.99 working till well the day of the consultancy visit (15.4.99). The turnout during 52 days of operation was not too big, but a good rainy season and crops in 1999 will dramatically change demand for the mill services.

Accounting standards:

Only an informal daily record of expenditure and income. Ngopadeo Treasurer did not collect any funds from there. Ngopadeo at the time of consultancy did not follow the Analysis book pattern per each mill project. The mill house was covered with the corrugated iron, which was not adjusted to the local unique landscape. The NGOPADEO coordinator has promised to paint the iron sheets with the green paint.

Olbalbal:

The Olbalbal mill is managed by the women group in Olbalbal being advised by Ngopadeo. The group is also running the beekeeping project. The mill arrived in April 98 and was installed locally in November 1998. The reconditioning of machine took place at Brusgaard Youth Production School in Randers. The maize mill house was constructed with support of local people in Olbalbal using a loan from NGOPADEO.

The mill has technical problems do to bad installation (vibration) and between installation and the time of visit in  April 99 worked only 19 days (13-26/2 and 8-12/4) with the following results:

The profit margin was 38,9%, which was among the highest. In the coming months the mill should have expected high demand for services due to good harvest of maize in the upper Olbalbal.

Accounting standards included as always informal records of income and expenditures per day, and nothing else. NGOPADEO treasurer have not visited the mill. What should be noted was that in none of the mills (perhaps except for Esere – which was an old mill) the staff did not receive fixed salaries but only a daily allowance for food, until the time the mills would be highly profitable.

4.     Report from the „NMA Management Workshop” and the NMA General Assembly

Participants:

BUDEA:

• Emanuel Goroi, Samunge Village Chairman
• Simon Soinda – Budea Coordinator
• Laurence Ledio – Assistant Secretary of Budea
• Nelson Bessanda – Vice Chairman
• Abraham Gibeni – Machine operator from Oldonyo Sambu

  LADO:

• Metui Ole Tipap – Exec. Secretary
• Maraswa Keritany – Treasurer
• Edward Pararia – Chairman
• Rev. Saltel Maoi – Chairman of the Board of Trustees

  SADA:

• Stephen Hillary – Chairman
• Lazaro Ole Kosyando – Exec. Secretary
• Joseph Burra – Treasurer

  NGOPADEO:

• William Ole Seki – Exec. Secretary
• Sanguyan Ole Dorrop – Chairman
• Chistopher Oloju – co-ordinator from Olbalbal
• Ngakenya Olenjiro – Machine operator from Ndiyan

  Utamaduni Cultural Association:

• Knud Erik Asak
• Tomasz Potkanski  

Visitors:

• Ruben Ole Kuney, District Commissioner in Magu,
• representatives of the Sukuma Mill groups,
• J. Nguma, the accounting trainer from FAIDA/Arusha (two days)

  Agenda of the Workshop – approved by participants on 18.04.99

18.04.99         Arrival to Bujora Cultural Centre (evening)

19.04.99         Opening session on the objectives of the training course by the Magu District Commissioner – Ruben Ole Kuney, „Food Security: Government of Tanzania policy and the role of NGOs”

Afternoon session: Case study reports from all Maize Mill Projects;

20.04.99      Morning Session: Continuation of individual Maize Mill Project reports; facilitated by William Ole Seki  
Afternoon Session: Analysis of common problems in all NGOs and mill projects  (issues + conclusions for NMA) – facilitated by Tomasz Potkanski

21.04.99        Finance and accounting management: principles of pricing, depreciation, saving, salary policies – facilitated by J.Nguma

22.04.99       Morning: Visit to the Sukuma Museum
Afternoon: Continuation of Discussion on Common Problems

23.04.99  NMA General Assembly: Strategy Planning and Confirmation of Decisions.

During the initial discussion each NGO identified the list of problems important for them. The following list resulted out of this exercise:

BUDEA:

1. Technical problems

2. Lack of capital for investments (donor, local, loan)

3. Lack of know-how on Accounting and Reporting

4. Lack of appropriate buildings (mill houses)

5. Wrong allocation of mills to different sites

  Internal issues:

1. Insufficient reporting from mill projects to BUDEA (lack of will)

2. Mismanagement by mill project leaders

  NGOPADEO:

1. Mills at the time of arrival were not functioning

2. Know-how – Accounts, reporting

3. Historical problems between NGO and local community over ownership

4. Poverty – how can we assist poor families

5. Competition between mills and pricing policy

6. Lack of capital for repair

  SADA:

1.  Loans to poor families from the project income

2.  Scarce grain – seasonal shortages of grain

3.  Communication with other NMA members or Piaya branch – transport

4.  Know-How on Accounting and Reporting

5.  Technical problems of machines – when arrived

  LADO:

1.  Lack of technical skills of machine operators

2.  Lack of accounting skills

3.  Seasonal marketing – lack of grain

4.  Communication – transport of fuel

5.  Fuel – expensive and not always available

6.  Low skills of maize mill project leaders

7.  Transparency: Responsibility of NMA vs. LADO in terms of ownership and management of mills

8.  Is round house construction necessary (agreement with donor)

  As a result the following list of  Common problems was identified

 –  and agreed to be discussed at the workshop:

1. Technical problems with machines;

2.  Communication an transport (motorcycle, NMA car, radio-calls)

3.  Know-how in Accounting and Reporting (main theme of discussion);

4.  Competition at the market (wrong placement of mills)

5.  Lack of capital fore investment

6.  Design of houses

7.  Expensive and not available spare parts

8.  Salaries for Maize Mill staff

9.  NMA 10% profit fee or flat fee from each project.

10.   Planning the timing and agenda for the Accounting seminar in Loliondo (17-23 May 1999) by Joseph Nguma

Case study reports from each mill were folded into the description of the performance of each Maize Mill Project (notes in hand writing – as attachment). Each subject was thoroughly discussed and decisions were reach and confirmed during the General Assembly.

J. Nguma has given a lecture on Pricing Policy, Salary Policy, presented methodological approach to calculating Break-Even Point, discussed and approved the Financial Reporting Sheets.

NMA General Assembly on the last day:

Agenda and main decisions: 

1.  Acceptance of the Agenda - done

2. Report from Executive Committee –  the Committee almost did not work, except for registering the Association in Dar Es Salaam.

3.  Change of Constitution – Samunge group excluded from membership and placed under BUDEA; fixed fee established  instead of 10% of profit; exclusion from membership after 6 months of not paying, final text to be voted again during the next meeting of the General Assembly to clear the English language problems in the text.

4.  Job descriptions for NMA Coordinator, Treasurer and Chief Technician.
   (below)

5.  Approval of a joint NMA technical servicing system under contract with SADA  

6. Division of net profit in every mill project and at NGO level (60% machine depreciation fund, 20% other local development projects, 20% NGO Administration (allowances for the NGO staff  for supervision of the projects – these are not salaries to employed staff –  this is a way of  compensating NGO leaders (elected people) for time used  for real work done under the project = 5000 Tsh for 8 hours work-day. 

7.  Approval of  NMA budget for 1999 (from May 1, - Dec 31, 1999)
   (both income, included;. Membership fees and flat fees and the expenditures side)

  NET Income per year :

1. NMA Coordinator salary @120,000 Tsh x 6 months =            720,000 Tsh

2.     Contract: SADA Technical Mills supervision

4 quarters x  (12 days @ 5000 Tsh + 15,000) =         300,000 Tsh

3.     Contract with SADA for Mills’ accounting supervision

4 quarters x (12 days @ 5000 Tsh + 15,000) =         300.000 Tsh

4. Communication costs: phone, e-mail, stamps =                       100,000 Tsh

5. NMA Annual Meeting Costs =                                              100,000 Tsh

6. NMA Board Meeting  =                                                       80,000 Tsh

                                                                          TOTAL:     1,700,000 Tsh  

NET Expenses:

1. NMA member fee from NGOs (4 x 50,000 Tsh)                 =    200,000 Tsh

2. 11 Maize Mill Project fixed fee to NMA (below)                 = 1,150,000 Tsh

3. Land Rover project surplus                                               =     350,000 Tsh

                                                                          TOTAL:                 = 1,700,000 Tsh  

8.     Approving the plan of action for NMA till December 1999: 2 seminars (accounting in Loliondo and technical in Malambo, 3 round trips by accountant and technician (under SADA contract with NMA), UCA project Coordinator Knud Erik Asad’s visit in November, before the end of the project for final assessment of the project.

  Job descriptions for the NMA employees:

NMA Coordinator:

The NMA Coordinator will implement duties given by the Executive Board of NMA. He will ensure that the NMA income is collected, kept and spent according to the budget agreed by the Board. The NMA Coordinator will on behalf of NMA take full responsibility for the NMA Land Rover and run it according to the agreement signed by the NMA Executive Director. The Coordinator will maintain contacts with all NMA activities, and will ensure that his advice is provided in time, or his action is undertaken in case of problems, so that mismanagement of projects does not occur. In necessary cases he will report to the Board for decisions. In such cases he would call for an urgent meeting of the Board and will facilitate  its organization.

The Coordinator will work as a secretary  for the NMA Board and will call board meetings according to NMA constitution and will take minutes of the meeting.  The Coordinator will provide  the UCA with a hort monthly summary report of activities/funds (by e-mail or fax).

NMA Accountant

The NMA Chief Accountant will do whatever necessary to receive from every Mill Project a monthly financial report and will have the responsibility to visit

All the NMA Maize Mills, not less often than once per quarter.

He will advise and control accounts of all NMA Mill Projects . In case his advice and comments are not being followed in practice, he will immediately report to NMA Coordinator and the Board.

The NMA Chief Accountant will keep the NMA Accounts according to the procedures agreed by NMA and present the status every quarter to the NMA coordinator.

NMA Mechanics

The NMA Mechanics will pay a visit to all maize mill projects every months. His visit will be used to take a look at the maize mill and give technical services according to the standards for the Lister engine and grinding/hammer mills. Filters, fluids, oil, etc will be replaced at the expenses of the individual NGO. However, the expenses of the visit will be paid by the NMA.

When the situation concerns the major repairs of NMA maize mills, the NMA Mechanic has to be called in.  This expenses have to be paid by the NGO itself. It is important that NMA uses its own mechanic or assign a mechanic who has been checked and accepted by the NMA Chief Mechanic.

The NMA Chief mechanic will together with the NMA coordinator and Chief Accountant is responsible for keeping the NMA spare parts store in Malambo up to date.

Approved NMA fixed fee from each project (based on capacity of the mill and the grinder – i.e., capacity to produce profit):

• Engusero Sambu        - 100,000 Tsh
• Ngarwa -                   - 100,000 Tsh
• Piyaya -                      - 150,000 Tsh
• Malambo -                  - 150,000 Tsh
• Ndiyan -                    -   75,000 Tsh
• Ilmisigio -                  -   75,000 Tsh
• Esere-                       -   75,000 Tsh
• Olbalbal-                    - 100,000 Tsh
• Samunge -                  - 100,000 Tsh
• Mdito -                       - 100,000 Tsh

• Oldonyo Sambu          - 100,000 Tsh

• Total:                     - 1,150,000 Tsh  

5. Internal Mid-Term Evaluation of the Results of the „NMA Institution Building Project”

Objectives of the Project:  

1). Generate maximum benefits from maize mill operations for community                 development purposes.

  2). Reach sustainability of operation for the maize mills under the NMA service system.

  3). Operate efficient technical and financial business administration in the management of NMA. 

Status of implementation of the objectives:

  General:

None of the NMA capacity building project objectives was not achieved by the time of this consultancy mission. Unless there will be a dramatic increase of own self-motivation/commitment on the part of each NGO leaders and the leaders of NMA, these objectives will not be achieved by the end of the project. Lack of commitment exemplified by lack of appropriate action at the time of need  seems to be the major reason for delay in the process of implementing the project and achieving objectives. Another issue is why there is insufficient commitment. The potential answer is complicated and points to a number of reasons: (a) lack of technical knowledge and experience in running NGO and performing its technical/accountancy activities, (b) lack of time on behalf of NGO leaders who perform these duties as volunteers, while having to sustain families – i.e., having to work for money, (c) objective local socio-economic and ecological problems which constrain activities of network-type of organizations like NMA, i.e., physical distance between projects and NGO headquarter, as well as between NGOs themselves, (d) lack of tradition for cooperation between modern type NGOs.

  Although objectives are still far from being achieved but a number of secondary arguments and developments should be taken into account to have the full picture of positive and negative experiences of the UCA project:

  1) 16 key NGO leaders from four organizations forming NMA are fully aware of the shortcomings of their performance – as it was openly discussed during the Bujora „NMA management workshop”. Above issues were discussed in details between each other. Through this fact we were able to increase general consciousness of the NGO leaders, who are otherwise the elite of  modern, highly educated Maasai leaders in the Ngorongoro District. They are the future of the District. In short future they may assume key leadership positions in the local and regional government in the District. Long discussions and careful building of consciousness of  ethics of civil service or voluntary work, with modern, but simple management principles is an important contribution to the success of Maasai survival in the Ngorongoro District. This project gives the forum for constructive dialogue between UCA and Maasai NGOs forming NMA, and between the Maasai NGOs themselves.

  Specifics:

  Ad. 1) Generate maximum benefits from maize mill operations for community                 development purposes

  This objective by the time of consultancy mission  was not achieved. In none of the NGOs nor projects, with one exception for Malambo (SADA), the net profit was not calculated and divided according to NMA agreements. In Malambo, though, the net profit after deduction of  NMA share was distributed to local community as a series of loans to poor people, bus has never been returned (people died, are sick, fled away in fear of Somali raiders);

  Ad.2) Reach sustainability of operation for the maize mills under the NMA service system.

  The experience of all 11 NMA Maize Mill projects was that a proper technical service would have significantly reduced technical problems they have experienced. Therefore they have approved a concept of  joint  NMA technical services, performed on a quarterly basis by SADA technician, on the NMA contract, free of charge from the side of individual projects (except for accommodation). They have pre-paid this service through NMA member fees. If during the regular check-up technician finds symptoms of major technical problem and major spare parts would be needed, the total costs would be covered by the project. It is yet to be verified how this service works in practice, as it has only been decided during the General Assembly in Bujora.

  Ad 3). Operate efficient technical and financial business administration in the management of NMA.

  So far, this objective is far from being implemented. The basis accounting and reporting standards and procedures were agreed already in  December 1996, and never implemented, except for good work of NMA Treasurer, Joseph Burra, who run the NMA accounts properly but did not receive any membership fees except for Malambo and Mdito mills.

  Other  elements important for assessment of the value of the seminar/project:

  Throughout the six days discussions in Bujora, and through the practical implementation of the project, leaders of  four NGOs were exposed to:

• - discussion on the role of voluntary work in NGOs

• - discussion on the good business rules for paying per-diem/allowances for elected officials

• - thorough discussion regarding good business practice in NGO leadership responsibility, including financial responsibility and reporting requirements

• - All the 16 NGO leaders are professionally much better prepared to conduct and account for activities and they are technically better prepared to play in future a role of  elected local government/community or NGO leaders.