There are two levels of location for the actions to be done: at SALFA-HQ and at the health facilities.
The actions relate to:
- Good and complete collection of the needs :
- Making of a master list
- Submitting of this master list
- Feed-back about this master list
- Adoption of the master list
- Quantifying the master list
- Confronting the needs with the results of the statistics
- Issuing the trends per facility
- Issuing the diseases recorded
- Reporting the collected needs with the general trend.
- Collecting the budget from each place: SALFA-HQ and each facility.
- Making the budget for each place (SALFA-HQ, facilities)
- Collecting the budgets
- Compiling the running expenses and determining the expected cash flow
- Establishing the cash flow procedure:
- Good management of the stock
- Good management of the sales
- Good management of the running expenses
- Good management of the available cash (bank, cashier)
- Control and monitoring of the overall
- Issuing the different calendars: for the orders, for the payment (credit)
- Establishing the prices (selling price) for the master list
- Installing the system of follow up for the use of the poor fund.
Every step involves both SALFA-HQ and the facilities. This is explained by the fact that the total route passes through SALFA-HQ then goes to the facilities, finally it gets back to SALFA, enter a second cycle and so on.
b] Management Team:
The attached organigram provided in Appendix C shows in red the people in charge of executing/implementing the task and in yellow those in charge of the follow-up of the procedure and the control in general.
In addition of this, every year, SALFA proceeds to his external audit which reports are available.
The annual cost for the key persons is: $ 27,900 (not including the investment).
- Structure: rather than using the huge structure, it is better for an easy follow-up of the revolving funds that only the main components should be involved. The rest ensures monitoring and control.
The main places are: SALFA – Depot; SALFA Finances; the warehouses and the financial department of each facility.
- Organization: the funds, even converted in goods, in credits or in cash should not move out of the above indicated places. The level of control is a group of people or an elected person located out of the above indicated places.
- Key personnel:
- At SALFA-HQ: the Financial Director – the responsible of SALFA Depot
- At the facilities : the manager and his assistant
- At SALFA-HQ: the Bureau - the Managing Director (Tonia) – the SALFA Control & Audit Department
- At the facilities: the Medical Director – the SALFA Control & Audit
- The Malagasy Lutheran Church Headquarter and the Board of Directors: it is the responsibility of the Board to monitor that both the executive and the control levels do conveniently and efficiently their jobs in keeping safe the funds. The Board cannot interfere at these two levels. The Board is the final and highest level of protection for the revolving funds.
The General Secretary of the FLM is the main responsible of the departments like SALFA. He follows up in this matter of Revolving Fund and its use.
c] Financial Plan:
To begin this part, we provide below figures related to the cost for importing one 20-Ft container of medicines from IDA, Europe.
The goods (CIF Toamasina) which can be hold in one 20-Ft container differs according to what items are ordered and shipped but a range for an average value of goods for such container is between $ 80,000 and $ 120,000. This provides for the value of $ 100,000 (1) per container.
Upon its arrival, the container is cared by SALFA Transit for the clearing process. Unlike other groups, SALFA has its own transit agent; this smoothes the follow-up and the general cost for this part. In average, the average cost for this is $ 2,500 (2).This includes the handling and administrative fees at the seaport, warehousing fees, SALFA’s agent perdiem and accommodation in Toamasina.
About the tax, based on the Catalogue of Items (Code des Tarifs Douaniers) its calculation can be done; however, the final words go to the Ministry of Finances and the Customs. With the variety (range) of products, the catalogue is not complete, therefore when this one only provides for principles or general data; it is up to these two levels of authority to clear the decision. It is not easy to predict the tax (plus VAT) to be paid but an average for the last 4 containers is $ 2,500 (3).
It is good to know that the medicines are not taxed. The medical supplies and other items are.
The additional costs for the container are:
- transportation from Toamasina to Antananarivo: $ 600 (4)
- shipping expense for the dispatching (~1% of the sales) : $ 1,500 (5)
The above figures provide that there is an average of $ 7,100 ((1) + (2) + (3) + (4) + (5)) of an additional cost, therefore 7.1% of the total value of the goods in ONE 20-Ft container.
In the past, for each item SALFA applied a mark-up around 55%. Since 2003, there has been a change in the pricing process at SALFA; this has been due to the globalization which assumes more competitors with free mark-ups. Therefore since that time, each item has been priced in consideration of the local market price. For 2006, SALFA had a mark-up of 53%. This will probably decrease a little bit this year because the price competition between the different suppliers has increased. Normally, this should affect the poor.
For an easy understanding of the plan, it is good to remind here some of the above useful figures (average):
Base: One 20-Ft container shipped to Toamasina seaport, stored at SALFA, then dispatched to the forty facilities.