Dave,
I wanted to make sure I painted a clear and accurate picture of how I see the situation here in Peru. With all that has being going on since we have gotten here, information could have easily been lost in transit. Ill list out each point and try to give you a better explanation.
Information
The Good
Elena has done a great job of keeping financial records, lesson material, and just about anything else you can think of. She has been very patient with us as we have been trying to get an idea of the companies for ourselves.
The Bad
Her responsibilities overlap. Ours don’t. When we add the fact that interns come and go, we end up with some of the information never getting passed, and some of the information being duplicated into different versions. This was causing frustration on both ends.
The Solution
As you know, we have started a Dropbox folder named “SEED”. We have met with Elena and decided on a English/Spanish naming scheme that everyone can understand. This should remove the need for multiple copies of the same file. Currently, You, Kati, Alessandra, Elena, and I have access to this folder. Although Alessandra and I feel that Elena hasn’t quite completely learned how to use it, she does seem to be responsive to using it as a solution.
Planning – After our Thursday meetings, Alessandra and I meet to create a “To Do” List. We then meet back with Elena later in the day to discuss any needs that she may have and create an action list for the next week for each of us. This has helped to keep us progressing but also provides an opportunity for us to share the problems we are facing and find solutions.
Projects – In one of our planning meetings with Elena we also decided on what material we felt was necessary to have on each of the companies. Here is an outline of what each “Company Folder” should look like.
- Business Plan – Plan de Negocio (Folder)
- Executive Summary
- Financials
- Other “Business Plan Materials”
- Contracts – Contratos (Folder)
- Copies of contracts signed
- Financial Reports – Reportes de Control (Folder)
- Amortization and Pay Schedule
- Disbursement Records
- Asset Lists
- Photos – Fotos (Folder)
- Photos
- Log
- Log of activity associated with a company to create a timeline of events that can been seen by different people. Naming scheme for “Log” will be (Year) – (Group) – (Project) – (Name).
Account Report-We are reviewing the report that is sent every month with Elena. The new report will be more streamlined and require less maintenance. Any feedback as to what you would like to see (or not) on these reports would be appreciated.
Lawyers – They seem to be an excuse for a lot right now. The biggest hindrance though is with the new projects. At this rate, we will get the papers before we leave but it may be to later to get the new projects started.
Projects
2008 – Huancaquito Bajo – Granja de Cuyes – Carlos Recalde
We have inventoried everything. We plan on setting an amount that he should be responsible for and then having him sell off assets. The problem we are having here is how to obligate him to do such. He has no reason to pay us back other than the loan document that He and 5 others signed. He doesn’t have enough for lawyers to go after. Alessandra and I both feel we will be lucky to be able to sell the cuyes. However, we are worried about setting a precedent for not having to make loan payments.
2008 – Huancaquito Bajo – Panaderia – Mara de la Crus Reyes
Alessandra and I have identified some accounting problems. Namely in their “Salary” amounts. In order to ‘simplify’ things, they had combined the extra bread they gave out and their salaries as one expense. Also, the records have been kept with a “what should happen” frame of mind instead of a “what IS happening” frame of mind. For example, in their financial statements, they took out a salary. In reality, they only pay themselves a portion of the actual salary amount 2x a year.
The good news is that they are making a list with ideas of what to change after they loan is paid. This will give Alessandra and I a chance to rework their business model and correct some mistakes.
Also, papers for land transfer are being drawn up and plans are being made for your visit.
2008 – Huancaquito Bajo – Yogurt
We have everything inventoried. Elena says that in the beginning of next week, we can expect to have everything valued. After that happens, we can start selling. Many of the assets have already been asked for by other businesses. Our goal is to have this taken care of by the end of the month.
2009 – Alto Moche – Mini Market - Santos Cruz
Have about a year left on the payments. This is one of the company where things are happening like they should. Everything is in order and they are well on their way to completing their loan terms.
2010 – Danper Grp 1 – Cabinas de Internet – Alejandro Torres
At least half of this business seems to be very well organized. There seems to be some miscommunication between the two partners. Elena told me that Alejandro came looking for a line of credit from Danper to use to pay his loan. What he didn’t know was that they payment had already been made by his partner. This brought up additional concerns for him about the business. We have asked for them to send us information to put together a balance sheet and cash flow. We then plan to meet with both partners and discuss ways to better communicate and answer any questions they may have.
2010 – Danper Grp 1 – Crianza de Ganado – Jose Taico
I’ve reviewed his business plan and i have some questions for him. He is coming in on Monday to speak with us again. If I can get satisfactory answers, we plan on coming up with a schedule and having him signing off on it. We have made it very clear that He will need to start paying the loan before we leave. Hopefully he is paying it with money created by the business. If not, we will be selling what we can and asking him to pay back the rest.
2010 – Taxi – Jhony El Palmo
Haven’t met him yet but he is current on his accounts. Of course you’re aware that some of the supervisors are talking about his participation in the program.
2010 – Taxi – Susana la Esperanza
Came by once but missed us. We have asked her to come in again on Monday. Current on payments.
2010 – Danper Grp 1 – Ampliacion de Bodega – Jesus Gomez
We are working on the new proposal and should have it to you in the next couple of weeks.
Internet and Shoe Sales (revise) –
We have started looking at these and will have a proposal ready by your visit.
Classes
We were all frustrated with the turn of events this afternoon. We did make a start though. Plans have been made to do an introduction on Monday. Then starting Wed we will teach the first two lessons. This will give them the weekend to get the homework for both lessons done and then we will review on Monday.
The good news is that we have quite a large group. 20 from the plant and 12 from the fields. 32 groups (64 people) should be starting the class next week.
In reference to the lesson material, it is a prime example of multiple copies. Elena was a little upset that we weren’t using the same copy of the materials that she had (we had been given several versions).The copies she has includes revisions that they made last year. We have decided on a cleaner format and are reviewing each lesson. This single copy of the lesson material should become more apparent in Dropbox over the next few weeks.
That was a lot of information but I hope it does provide some details of what we are doing. Any feedback is always appreciated.
Thanks,
Preston Dale
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