Lewa Finance

In dollar terms the Lewa budget  shows an increase of 13.7% on 2005 ($2,387,781 v. $2,100,332).  The headline points are an increased in output to support a number of operations which we have not done in 2005, a significant increase in fuel prices linked with more vehicles (albeit most of them have running costs funded) and higher commodity prices as a result; the reduction to zero in our liability to the NRT and the early pay off of the long term loan.

Lewa annual budget process is based on zero-based budgeting concept. It focus at attaining it’s conservation objectives within achievable budgeted costs. The aim being to not increase cost far beyond the inflation factor. Despite such clear goal and budget parameters, its unfortunate, that our experience has taught us that conservation work must of necessity be reactive and proactive. Conservation can’t  be held up to much seminar and debate. Whether it’s flying to the north and coordinating elephant rescue operations or giving the much needed support to community insecurity incidents; one is caught in situations of whether to say "no" and live with the sad consequences or "yes" with the cost implications. This is a dilemma which Lewa’s success has created. That more and more communities are turning to us as a trustworthy and reliable partner explains our high Community Development cost.
 
Interesting outcomes are reflected by our Activity Based Budget, with 24% ($573,000) of total budget going to Community Development (conservation, schools, women credit scheme), equally important is the Rhino Conservation which also take 24% of our budget. With the dwindling number of the world population of Grevy’s Zebras, and Lewa’s increasingly significant population, 12% of the budget has been dedicated to this course.

Lewa recognises and gives credit to the global support received in conserving the world heritage in partnership with surrounding communities. Indeed, the need to generate long-term funding for biodiversity conservation is becoming more urgent than ever before. The pressure on land will create wildlife/human conflict unless community sensitisation and benefits to households can be guaranteed. We will remain forever grateful to our donor partners who have remained steadfast in their generous support to our conservation work. Lewa Wildlife Conservancy is ever positive that the financial sacrifice and investment will bear handsome dividends in the eyes of posterity. It’s a worthy cause!

ON A DIFFERENT TOPIC BUT STAYING WITH FINANCE:
A couple of years ago The Ford Foundation funded a Financial System study where one major recommendation was that Lewa needed to change its computerized accounting system or upgrade the same. Shortage of funds has occasioned some delays in implementing the same. In July, Summer Trust gave a generous and unexpected donation some of which has been set aside to undertake this important system changeover. Effective September 1, 2005 the Sage Accounting System will be replaced by Pastel Accounting system which has the capability to integrate personnel, stores, deal with multicurrency reporting and handle consolidation.  Staff training is underway and this will ensure that financial information will readily be available for decision making.

All heads of department have finalized their workplans and budgets for year 2006. The same has been consolidated and is being reviewed by the Deputy Director and Executive Director. Once the budget has been harmonized it will be forwarded to the Lewa Board of Directors for review and approval. Capital replacement plans benefited immensely this year from one off donation of £130,000 from ICAP. Most of these funds have been utilized for capital equipment and also construction of a clinic in Leparua Community area. Buildings and other heavy duty equipment continue to be postponed largely due to shortage of funds and other more pressing needs. This has a negative impact on our staff houses and repair of roads, airstrips, bridges among other projects.

On a positive note, tourism earning in the current financial year has been over 50% above budget.  Besides, we are seeing renewed and encouraging interest from both corporate and individual donors. The offshoot of Northern Rangeland Trust and the interest it has generated from non-traditional Lewa donors is a sure sign that conservation in community land is taking a new plane to a predictable secure future for wildlife in these areas. This in turn will help deflate the excessive pressure on Lewa overstretched resources.

The Conservancy will continue to be forever grateful for the tremendous goodwill and support received from local and international donors. Your generosity has only challenged us to work even harder at our mission of conserving our flora and fauna in partnership with our neighbouring communities. For all our visitors, every dollar you pay has a lasting value in terms of endangered species dwindling elsewhere that are on a steady increase here in Lewa and neighbouring community areas. You can rest assured that this global heritage will be preserved for future generations.

Isaac Njagi – Finance Manager