DRAFT RECURRENT BUDGET ORPHANAGE PROJECT 
Makeni Ecumenical Centre, AD 2000

Annual Budget for 30 Children

Item

Kwacha

US$
Food 10,800,000 3,600
School Uniforms 750,000 250
School Fees 4,830,000 1,610
Maintenance & Utilities  2,520,000 840
Staff Salaries (3 staff)* 9,000,000 3,000
Medical expenses** 7,200,000 2,400
Transport   720,000 240
Administrative expenses 600,000 200
Totals K36,420,000 US$12,140

Comments:

This budget is FOR THE FIRST YEAR OF OPERATION [AD 2000/1] ONLY.  With 24% inflation p.a. in Zambia at present, there is no way of knowing what it will be next year and thereafter. It replaces the partial and unrealistic budget previously drawn up by the committee for ten children only -- such a small number of children will not impress donors, and will greatly reduce chances of  funding by them.

*Staff salaries are presently set by the committee at between K150,000 to K300,000 (US$50-100) per month per person, inclusive of housing allowances and statutory obligations and pension funds contributions.

**Children whose parents have died of AIDS are likely to suffer from AIDS themselves -- this raises the question as to what medical expenditure MEC will face. Medical treatment is no longer free in Zambia; medicines are very expensive. This budget item may therefore well be too low. No allowance has been made for indemnity insurance, an issue that needs to be discussed before we proceed. The above amount allows K20,000 per child per calendar month (under US$10).Electricity charges are raised at least twice a year by the national electricity corporation. This item may therefore not be correct, even for 2000/1.

At present we have no definite promises from any donor towards recurrent expenditure, not even for the first year. In view of the nature of this project, we must ensure that we have funds in hand for the first 3 years of operation at least, as we can not simply close this project down due to a lack of funding.