Association for the Development of Pakistan

[Khurram Jamali]

Financial Statements as provided to Jazib

[Khurram Jamali]

Provided to Jazib by AJB

[Jazib Zahir]

Status of requested documents:

0. Scanned copy of original NPO registration certificate
Received

1. Audited Financials (e.g., Balance Sheet, Income Statement, and Cash Flow Statement)
Received

2. Donor list, including donation amounts, for the past 5 years.
Don't have a breakdown by donor though the primary donors were mentioned in the original form

3. List of employees in form of organizational chart
Don't have, but have personally met several of them and thus have some idea

4. Student list for last 5 years, with clear indication of those students that have received job placement
Received

5. Information about the AJB Complex
a. Financial information about complex - cost projections and available financing
b. Implementation plan for complex (construction timeline, program development for new facilities, expected student body size)

Don't have a complete project plan but total amounts and timelines and objectives are stated in given brochure

6. Current list of Board of Directors and contact information (there are two different lists on the website, and we'd like the most up-to-date information so that we can arrange potential interviews)

This is listed out in the brochure they have given me

[Isfandiyar Shaheen]

Dear All,
We had the third AJB Trust Project Call today. Based on available information at this stage, we have not been able to reach a conclusive decision regarding funding this project. Following observations and concerns were raised during the call:
1. ADP’s investment contribution of 800,000 represents 2.7% of the total cost associated with expansion plans
2. Computer lab is entirely dependent on the school supporting it, hence investment in computer lab cannot be treated strictly on a stand-alone basis
3. Sustainability remains a key question because operations are almost entirely dependent on grants and donations
4. Given operations started in 1997, 37 graduates to date appears low
5. Donor list and likelihood of sustainable donations remains an open issue
6. Project is not dependent on an ADP investment; Management believes ADP’s envisioned investment amount can be raised from other donors
7. Given student strength of 100, Salaries/Wages of ~ PKR 5.3 million/year and Transportation charges of PKR 3.5 million/year seem very high
o Salaries and Transportation combined is 63% of Operating Costs (ex D&A)
8. Salaries increased 15.5% YoY 2009-10 and Transportation costs increased 38% in the same period; changes in student and staff headcount remains to be established, irrespective these increases appear very high
9. A provision of PKR 2.5 million has been expensed due to Certificates of Investment, investing in such instruments seems surprising for an NGO with an asset base of PKR 28 million

Next Steps and Key Questions:

1. Obtain financial statements (with notes) for 2006-08 and understand variation in donations, grants, salaries/wages and transportation costs on a YoY basis
2. Obtain key operating drivers including
o Number of students
o Number of teachers
o Number of administrators
o Drivers of transportation charges (fuel quotas, fleet of vehicles etc)
3. Understand organizational structure and break-up of Salaries and Wages
4. Identify donor base (recurring donors in particular)
5. Conduct interviews with the largest recurring donors to establish affiliation “depth” with AJB Trust

I have input financial data in a spreadsheet (but can't upload it, Jazib/Khurram I'll e mail, can you please upload?); we will develop this analysis further as information becomes available. In the meantime please review the above and share your comments / questions / concerns.

[Khurram Jamali]

Isfandiyar, thanks for the comprehensive update for the entire team.

Let's work towards tying up all lose end over the next two weeks. Naveed and natasha, if you have any important questions before you vote, please share them at the earliest.

In the meantime, Isfandiyar, I have attached your excel file as well.

Thanks,

Khurram

[Isfandiyar Shaheen]

Financials I received did not have the 2008 numbers, I have updated the Income Statement for 2006/7.

[Jazib Zahir]

Just to provide some additional information gleaned from my last visit, would help in making a reality check on data:

1. Total cost per child per month for the institute is Rs. 13,000. They try to recover 1,850 through tuition which is rarely implemented.

2. There are 21 teachers across all the classes (school is till metric). Salaries range from Rs. 5,000 to 50,000.

3. There are 19 administrative staff members (4 directly with the school rest with the institute which is the front end for managing the school). Salaries range from 3,800 to 60,000

4. Combining all the salaries, the average comes out to Rs. 11,000 per month per staff member in the latest financial year.

5. Transport system to bring in and return students every day is outsourced. They pay Rs. 325,000 per month per vehicle. A total of 6 vehicles are involved. That fits with the total costs they gave us for 2008-09 though it's gone up by quite a bit in the most recent year. They say they have students in all corners of Lahore and their transport has to cover all of them.

6. Phase I of construction of new complex started in December 09 and is projected to conclude in June 2011. They have enough funds for the primary campus though they are looking to raise money for the affiliated facilities.

7. Here are the regular donors. I haven't contacted them at this point though perhaps Isfandiyar can give it a shot if he has time before the call and this can add value:

PWTD: 35847861-5
pwtd786@hotmail.com
Mr. Zafar: 03214516911
Dr. Saqib Amjad
Dr. Bajwa

Ittefaq Foundation: 02135041330
COO Syed Baqir: 35711671
Shafqat Bokhari: 35710555

8. There was the point Isfandiyar raised about the provision on investment that I didn't discuss with them while I was focused on the other points. I'm also not completely sure on what to ask them about it. Perhaps Isfandiyar could phone Mr. Nizami and check with him about that? He's been quite responsive to me by phone so that would be the best way to get a quick response from him.