Transparency International UK Business Plan FY 2013-2014
Contents 1. Introduction 2. Research 3. Education and awareness raising 4. Advocacy & Communications 5. Business Integrity Programme 6. People Engagement 7. DSP 8. Fundraising 9. Internal re-organisation 10. TI-UK and the global movement 11. Budget
Vision TI-UK will be seen as one of the UK’s most authoritative and respected NGOs. Over the next 3 years, TI-UK will increase its own impact in tackling corruption and empower others to do so. To meet the scale of the corruption challenge in the UK and overseas, TI-UK will become more ambitious and entrepreneurial, while retaining its core values of high-quality research and balanced advocacy.
1. Introduction TI-UK has an outstanding opportunity to build on its very solid track record of research and advocacy. The environment for tackling corruption is better than ever before, with widespread public, political, media and business support. By being more ambitious and responsive, TI-UK will mobilise greater resources and step up its response to be more equal to the size of the challenge. The charity’s constrained financial situation means that some changes will happen by evolution rather than revolution, but there is no doubt that in 3-5 years TI-UK can be a very different organisation to the TI-UK of today. This business plan presents a 1-year plan for re-shaping the organisation and making it better equipped to respond to the challenges it faces. A 3-year strategy will be developed over the coming months and presented to the board for discussion and subsequent approval.
1.1 A change in tone Even in a resource-constrained environment, some fundamental aspects will be able to change. These are: Attitude. While retaining our core values of promoting high-quality research and quiet advocacy, TI-UK will o be more vocal and visible on some key issues, responding faster to emerging situations and capitalising on an external environment which is already supportive of TI and looks for a TI voice in national debates. o as a basic approach when faced with a new challenge, ask the question ‘how can we mobilise the resources to tackle this important issue?’ rather than saying ‘it is not a priority so we cannot do it’. Visibility. The Executive Director and other staff need to be visible and well-networked. This will in future be an institutional priority. Establishing a fundraising culture. We will be more entrepreneurial and opportunistic, without compromising TI-UK’s ethical criteria for accepting funds. Fundraising will be an institutional priority, and not an also-ran. Organisational effectiveness. We will make maximum use of the resources we have, which include excellent staff, a well-respected name, a strong base of supporters, some steady income streams and many offers of pro bono support. Through some relatively simple re-organisation, we can make better use of these existing resources.
1.2 The nature of the challenge We face both organisational challenges and mission-related challenges. Mission. Much of our recent work has been focussed on the Bribery Act and its immediate aftermath. Our 10-year campaign on the Bribery Act gave us credibility, visibility and a clear success. We need one or two high-profile advocacy areas to replace this. At the same time we need to answer some fundamental questions about whether to focus on the UK, or overseas, or both; and to make some choices from among the many subjects we could cover. We should seek to be proactive and not simply reactive – identifying areas in which we could stimulate substantial change and not simply adding a TI view to events as they unfurl. Organisational. The key issue is our finances. Without generating an annual surplus and building our reserve, we have very little room for manoeuvre when trying to change and little margin for error in risk-taking or in taking a pro-active approach to projects and
programmes. A secondary issue is that we need to update some basic organisational functions such as IT and HR. Finally, there is a persistent set of questions around the Defence & Security Programme – in essence, does it still sit comfortably within TI-UK given its size relative to the rest of the organisation?
1.3 Strategic themes TI-UK’s work will be based on three thematic areas, whose provisional titles are: Combatting corruption within the UK Objective: identify and reduce corruption and corruption risk within UK institutions & society. Minimising the UK’s corruption footprint overseas Objective: reduce UK’s corruption footprint globally and use resources and advantages of the UK to maximum advantage in the global fight against corruption. Curbing the UK’s corruption services industry Objective: ensure the UK does not act as a safe haven for international corruption. These will be delivered through the following mechanisms: Research Advocacy and coalition building Education and awareness raising Promoting business integrity People engagement This broadly reflects our current activities, expanded, rationalised and re-packaged. The most significant omission is a programmatic approach to engaging the UK public sector. The direction of new activities and programmes will be explored in the 3-year strategy discussions. 1.4 Overall message It is envisaged that a headline message will be developed in the course of the three-year strategy. A working assumption for the first year is that, in line with the wider TI movement, this will be:
‘An end to impunity’
2. Research Objective: Produce high-quality research as a platform for effective advocacy. Target: Deliver 8 projects currently underway and 4 policy papers; develop plan for in-house research. A reputation for high-quality research is central to TI's reputation. TI-UK has typically commissioned external research as and when project funding permitted. TI-UK’s advocacy should always be based on good evidence, but this does not only need to mean large research projects of the type conducted to date. Alongside those should sit shorter, focussed research into very topical issues, allowing TI-UK to present authoritative views in real time. In addition, we have established an excellent rack record in producing practical tools that are well-respected, and this will remain part of our research portfolio. The recruitment of a new Research Manager will allow research to be undertaken in-house for the first time. Our current business model is based in large part on project funding, and this means that an immediate priority is to deliver the required outputs for those projects – listed below. However, in the course of the year, the increase in capacity will allow us to explore and develop how research could be done differently, perhaps learning from the DSP model. In the longer term, we will aim to move from a reactive/funded approach to research, to one that is pro-active and designed in the first instance to address the areas of greatest need and impact.
2.1 Strategy The research strategy will be to continue to undertake sound research as a basis for advocacy increase in-house research capacity increase oversight of research quality combine larger projects with shorter, more opportunistic research pieces, for example through using Freedom of Information requests.
2.2 Current projects There are 8 externally-funded projects that are due for delivery in the year. They are: Private sector anti-corruption tools and guidance o Bribery risk assessment methodology for companies o Small Bribes and facilitation payments – practical guidance o Bribery Typology Voluntary sector anti-corruption tools and guidance o Anti-bribery guidance for the Not-for-Profit sector o NGO anti-bribery training guide Public sector corruption research o Corruption in UK Local Government o Lobbying – a UK review Corruption in sport o Match-fixing in football - research and educational materials Each of these will be a worthwhile project in its own right, but the eclectic nature of the list perhaps illustrates that we are not taking a strategic approach to research that is linked to our advocacy priorities. This, in turn, is the result of a business model in which project funding has become important.
2.3 Policy/Research papers We are also planning four short policy and research papers in the following areas: Overseas Territories – addressing the many loopholes for corruption and money laundering, for which the UK is ultimately responsible. UK corruption law – a state of play analysis of UK law and enforcement. Development & Corruption – making a TI contribution to a current political debate. Money laundering – building on the TI-UK report of 2009 and taking into account recent developments including any G8 Summit announcements.
2.4 Research Committee Board members are from time to time involved in current research projects, but we have no formal mechanism for deciding on such involvement, or indeed for helping the Executive Director set research priorities or ensuring that TI-UK’s research is of high quality. As part of the Governance Review, the Chair is proposing that a Research Committee should be constituted to help address these issues.
2.5 TI-S research TI is probably best known in the UK for research produced by TI-S, notably the CPI. TI-S research is usually of high quality and relevance. We will explore the potential for making better use of TI-S research within the UK, as a means of reaching a wider audience.
2.6 Additional research activities TI-UK has set up an Anti-Corruption Research Network in the UK (ACRN), which is a subset of a larger group operated by TI-S. We will examine how this group can become more active and build a wider network of academics.
3. Education and awareness raising Objective: to raise awareness of the importance and impact of corruption, and provide in-depth knowledge and understanding to specific audiences Target: bring together some or all of these activities into a more coherent programme structure, with a single staff member designated as responsible for the programme. 3.1 TI-UK Events Over the past few years we have expanded the number and type of events that we offer. These include: Speaker evenings – 3 per year hosted by Norton Rose Annual lecture – in December, hosted by Clifford Chance Training courses – a free introduction to corruption open to all; public courses for which we charge, offered to NGOs and corporates Webinar - for CSF members on the CPI TLN dinners – hosted by Norton Rose, speakers John Kay and John Micklethwait Regional events – presentations of Corruption in the UK in four cities 3.2 External events We have also had a TI-UK presence or involvement at many other events; for example we have: run several joint events with other institutions including: - Wilton Park – money laundering - Kellogg Centre for the Study of Governance & Transparency – annual anticorruption conference - Sussex Centre for Corruption Research – joint conference - Leeds business event on corruption in China discussed other collaborative events including summer schools with Oxford University and Sussex University spoken extensively at external conferences, events, webinars and training courses. 3.3 Other related activities Other activities related to education and awareness raising have been: Building an Anti-Corruption Research Network in the UK Building a resource centre on our website Increasing the number of publications, and introducing a series of Policy Papers Providing free guidance tools for companies, including Adequate Procedures that has been downloaded nearly 20,000 times Providing a free online training course for companies More concerted use of social media Stakeholder meetings and public consultations involving our projects.
3.4 A coherent and coordinated approach Each of these has generally been carried out to a good standard and met its immediate objectives. However, there is clearly scope to take a more planned and strategic approach to education to make sure that we gain the maximum benefit from having such a programme – for example, ensuring they are scheduled and advertised in a coordinated way, and tested to ensure that they are meeting our core objective and not solely generating more activity. The target for the year will be to bring together some or all of these activities into a more coherent programme structure, with a single staff member designated as responsible for the programme.
4. Advocacy and Communications Objective: to achieve changes in policy and behaviour based on sound anti-corruption research Target: to develop improved networks with Parliament and government; to put in place a rolling advocacy plan with specified actions and outcomes for each advocacy area.
4.1 Background To date, TI-UK’s advocacy has been undertaken on a slightly ad hoc basis. At its best it has been spectacularly successful – notably in the award-winning campaign for the Bribery Act. However, we need to take a more consistent and coordinated approach to make the best use of our contacts and resources and ensure we have better follow through on key advocacy positions. In particular, we need to be better networked in Parliament and government, as many of our proposed policy changes will require support in those quarters. We start from a good position, in that TI has a reputation for being reasonable and nonconfrontational and basing its views on sound research. Without losing this, we will where necessary be more visible and assertive in future. 4.1 Key areas A key focus at present is working, both on our own account and in coalition with others, towards a good outcome at the G8 Summit in June. We have helped to shape the agenda and will push hard for outcomes such as the UK’s signing up to EITI and transparency over beneficial ownership. We currently have a range of advocacy objectives relating to UK politics and institutions. We will wrap these up into a ‘Scorecard’ giving the government a rating on how well it is performing. A consistent advocacy objective will be to strengthen the role of the government’s AntiCorruption Champion. 4.2 Staffing One of the new staff positions to be created will be an Advocacy Manager, who will manage a junior Communications Officer. We may also appoint more Senior Advisers who are subject experts. The new Research Manager will also be deployed as a technical expert where necessary, for example in drafting responses to consultations. 4.3 Networking and visibility A key part of getting across advocacy messages is meeting the right people and gaining a reputation for being an organisation that is active and influential. Greater networking and higher visibility of TI-UK senior staff will be an institutional priority in future. 4.4 Parliament We will take a more coordinated approach to parliamentary engagement, through existing contacts such as Advisory Council members and the APPG on Corruption. We will consider using an expert consultant on parliamentary engagement. We are making a small financial contribution towards the cost of employing the APPG coordinator, through Bond. 4.5 Party conferences We will attend the party conferences and aim to hold a joint event at each with other related NGOs. 4.6 Government departments We will improve our networking and contacts with key government departments, both by engaging the directly and through involvement in networks where we are likely to meet them – for example, increasing our involvement with Bond as a means of raising visibility with DFID.
4.7 Coalitions We will continue to work in coalition with other organisations in order to gain the support of others in fulfilling our mission. Key coalition partners currently include: Bond Anti-Corruption Group Global Poverty Project UK Democracy Group OGP working group We will explore the potential of creating or joining other coalitions during the year. 4.8 Communications Communications is an important function in all of our work, but plays a particularly important role in advocacy. The role of the Comms function is three-fold: a) to help get our message across as effectively as possible b) to reach the people most necessary if we are to effect change c) to mobilise a larger body of support behind our key messages. The new Comms Officer will concentrate initially on four key areas:
Media: positioning TI-UK as an authoritative commentator on the issues of the day through faster and more opportunistic responses; maintaining and developing good media links. Social media: scale up use of social media, including ED’s use of twitter and other social networks. Website: undertake review of website format, content and search engine optimisation Publications: present information as effectively as possible using high-quality publication style, for example investing in good design.
5. Business Integrity Programme Objective: work with the business community to ensure that companies operate to best practice anti-corruption standards. Target: create a new Business Integrity Programme from disparate units and activities; meet or exceed revenue targets in the financial plan; 5.1 Why do we work with business? TI-UK has a long-standing commitment to working with companies to help them address the corruption challenges they face. Our approach is principled but pragmatic – for example, taking a zero tolerance approach to bribery while recognising that companies need guidance and support to implement such a policy throughout their operations. Overall, the TI movement has a long track record of working with companies; TI is the guardian of the Business Principles for Countering Bribery, and engaging the private sector is one of the core strands of the 2010-2015 strategy. Chapters vary greatly in their interest and willingness to work with companies; some, like TI India, have an equivalent to the CSF; others, like TI Malaysia, offer consultancy services. TI-UK's CSF Membership Principles state: Transparency International UK works in partnership with companies that wish to attain the highest standards of integrity and share the vision of the Transparency International movement: a world in which government, politics, business, civil society and the daily lives of people are free of corruption. We also typically tell companies that: We help companies to ensure that their own operations and activities are free of corruption, through accessing TI's global expertise. We work together with companies, governments and other partners to raise global standards, promote integrity, challenge corruption and create an economic environment in which clean businesses can compete on a level playing field. 5.2 A strategic approach to business Over the years TI-UK has developed three separate activities in working with companies: Publication of best practice tools and guidance Corporate Supporters Forum Training & Advisory Services It is proposed that we merge these into a single programme called the Business Integrity Programme. This will enable us to build on the work of TAS and take a more strategic approach to our corporate relationships. The objectives of this will be: To be better at fulfilling our mission in working with companies through have a substantial influence on their behaviour To change the relationship from one in which they are corporate supporters – ie supporting TI through a donation – to one in which they are partners in a programme to promote integrity in their own businesses To allow us to enter partnerships with companies that are more substantial and productive for both TI and the company To provide a more consistent and effective service to companies, ensuring that we maintain our CSF members and increase revenues from this source. The consequence is that TAS in its current form would cease to exist. Since its creation two and a half years ago, TAS has produced some high-quality work that feeds very well into the mission of TI-UK. It has also become clear that much of the TAS clientele lies within the existing Corporate Supporters Forum. However, TAS was created with the expectation was that a) it would generate a surplus that would subsidise the core activities of TI-UK b) it would grow to a
size when it could be spun off into a separate entity. It is clear that this strategy is not succeeding as planned. At the same time, the CSF is an untapped resource: TI-UK could give more to members, and some members will want more from TI-UK, including the types of service that TAS currently offers. The synergies between the CSF and TAS have become clearer over time, as the CSF and TAS client bases have increasingly overlapped. For example, it is makes sense that there should be a single relationship manager for each company. A number of changes will be introduced with immediate effect. These include: There will be new CSF membership benefits, including free training courses and a logo Additional membership tiers will be introduced, including a facility for companies to be global members of TI The CSF subscription will be increased – it has been unchanged since 2004 - and VAT will be applied Formalising various CSF procedures including the due diligence on joining and TI-UK's response when a company has been found to breach the Membership Principles Re-branding the activities as the Business Integrity Programme. The current Managing Director of TAS will become the Director of the Business Integrity Programme. At present, his contract is based on a fixed salary, payable if TAS receives sufficient income, and a bonus, based on the year-end surplus. From April, this arrangement will be changed so that he becomes a full-time staff member with a regular salary and no bonus, other than a payment which is due under the old arrangement. The new arrangement is subject to performance targets being met, and will be reviewed after 6 months. 5.3 Product development An important component of the new Business Integrity Programme will be product development, whether in the form or training course, practical tools or other products. This will include surveying the current CSF members and asking what they would like as CSF members and what additional services or products might interest them. A significant project currently under discussion is a Corporate Benchmark, in which TI-UK would undertake a comprehensive anti-corruption procedures benchmarking exercise for between 12 and 24 companies. Each company would pay between £12.5 and £25k depending on their level of involvement. 5.4 Staffing If the activities of the programme expand, there will clearly be a need to scale up the staff resources. This will happen in two ways: One or more junior researchers being recruited One or more senior consultants being recruited; Peter Wilkinson is currently contracted as our first such consultant and works 2-3 days per week One or more mid-level consultants being activated from the current TAS list as an when necessary –for example on a project like the GAVI whistleblowing review 5.5 Working with the wider movement on business integrity TI-S has withdrawn from its work in developing private sector tools, and is now focussing its private sector work almost entirely on the financial services sector. It has also scaled back its fundraising and relationship management capacity with regard to the private sector. This presents an opportunity for TI-UK and other national chapters to take on some of this work on behalf of the TI movement. We will explore with TI-S the potential for TI-UK to become a movement-wide Centre of Excellence with regard to private sector tools and engagement
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to coordinate a Business Integrity network with other chapters that work with the private sector to manage global corporate partnerships where the company concerned is based in the UK.
5.6 Working with investors Institutional investors provide an excellent mechansim for influencing companies through their power as shareholders. We have had a productive partnership with the UN Principles for Responsible Investment as well as individual brokers and asset owners, including Chevreux and Citigroup. There is clearly scope to develop this further. We will explore the potential for additional work with the investor community, both for TI-UK, and the wider TI movement.
6. People Engagement Objective: tbc after strategy day Target: tbc after strategy day
6.1 Background Greater involvement of people in TI’s work is a global priority for the movement, and will also be for TI-UK. Before designing a UK-specific programme, some fundamental questions need to be addressed, including: What are we aiming to achieve through people engagement? How widely are we hoping to engage – thousands or millions? Do we have a target audience? What resources can we allocate to this? How does this rate as a priority compared to other areas of work? What mechanism(s) would we use for people engagement?
6.2 Options for people Engagement There are several options for how this might happen in the UK, including: Building our membership Developing a separate and wider supporter base Activities in universities and/or business schools Activities in schools A UK ALAC or reporting hotline Greater use of social media and new technologies Use of citizen auditors Regional events Participation in the TI-S Time to Wake Up campaign Advertising Mass-mobilisation events such as marches or petitions Involvement of celebrities.
6.3 Need for strategic choices Whichever route or routes are chosen will have a substantial impact on the tone of the organisation and what resources are required. For example, a mass-mobilisation petition requires a different set of skill and investment to an ALAC. This subject will therefore be on the agenda for the 3-year strategy discussion, after which a decision will be made on objectives and targets.
7. Defence & Security Programme (DSP) plan prepared by the DSP team; fuller details on all items below are available on request TI-DSP’s plan for April 2013 to March 2014 is on the same strategic path as we are on at present. The top activities are the following:
7.1 Campaigns The Indices: Continue to actively follow up the two Indices GI: parliamentary defence committee report being launched (June) CI: Good practice report being launched (June) Push for lots more Chapter follow-up events (e.g. Georgia, Mexico, Colombia, Malaysia, Taiwan, India, etc.) Find separate funding for the two Indices Prepare the ground for the 2014 repeats Afghanistan: The new ‘Afghan Traction study’ will be one of the major tools for advocacy with international forces and national militaries. It is going to be an extensive report, based on close to 100 interviews, on why and how corruption failed to get traction. The aim with - and the interest of - development departments and agencies is to develop a large-scale, multi-agency approach to this subject. Corruption, Peacekeeping and the UN. We will launch a major new report on this topic in mid year. A global new defence sector integrity initiative, like EITI, supported by both industry and government ATT follow-up on implementation requirements, now that the treaty is signed Develop a new campaign on whistleblowing in the defence sector for 2014 launch. Develop our media presence to attain a tenfold increase in reach
7.2 Capacity Building Work in 20 countries: Ukraine, 9 Balkan nations, Georgia, Kenya, Lebanon, Croatia, Hungary, Honduras, Afghanistan, Saudi Arabia, Turkey, West Africa An Africanised ‘Handbook’ A Handbook on how militaries and peacekeeping forces can recognise and address corruption Developing a structured approach to building civil society capacity to tackle defence corruption Proposals for separate funding of such work
7.3 Research Publish research reports of on-going research: single source procurement; cybersecurity and corruption; impact of scandals on anti-corruption legislation (with George Washington University); corruption in intelligence agencies; New research on creating a police anti-corruption Index Preparation for a major conference on defence sector anti-corruption Proposals for funding our research
8. Fundraising Objective: provide sufficient resources for expansion of TI-UK’s activities and thereby provide greater mission impact. Target: generate a surplus of at least £25,000 in FY 13/14
8.1 Background The positive view of TI-UK’s fundraising is that we have over the past four years broken even at a time when many charities are struggling, and at the same time been able to afford three additional full-time staff. The fundraising was almost exclusively done by the Director of External Affairs, with around 20% of his time allocated to raising new funds and around 60% to servicing existing donors and delivering programmes required under those donations. However, this needs to change. Energetic, visible and high-impact charities are better at attracting funds. TI-UK should aim to be seen in this light, but above all needs a more assertive fundraising culture – in which fundraising is seen as a high priority, approached systematically and resourced effectively. The strategy for the first year is: To create a fundraising culture To move from break-even scenarios into a surplus in the region of £25k minimum. To generate sufficient proposals and activity that a best-case scenario would generate a surplus of £80k. The focus of fundraising will be to generate unrestricted funds where possible to enable the organisation to choose where to invest in programme activities.
8.2 Target TI-UK should aim to produce a sufficient annual surplus both to consolidate its reserves and invest for the future. The immediate target is to generate a surplus of £25,000, which will help to repair the balance sheet deficit caused by the deficit in FY12/13. A stretch target is to generate a surplus of £80,000, which would enable us to invest in additional staff in the next financial year. We therefore need to generate sufficient fundraising activity to achieve such a target.
8.3 Generating a surplus A one-year plan is presented here of activities that will be undertaken in order to achieve a target surplus of £25-80k. Fuller details are in the financial plan. A longer-term plan will be outlined in the course of developing the 3-year strategy The plan outlined here rests on the assumption that in the short term, the most likely growth in funds is income from corporates. There is no natural limit to this – for example, we could recruit 10 new CSF members rather than 3 with more active marketing, or could convert one CSF member into a large corporate partner. However, conservative estimates have been put in the budget until our new strategy has a proven track record. The key fundraising activities for the year will be: Corporate Supporters Forum – increase income through raising subscription fee and introducing new joining fee and membership tiers. New Business Integrity Programme – increase income over TAS predecessor through crossmarketing to CSF members and introducing new products; explore opportunities for largescale corporate partnerships; seek to increase number of members.
Trusts – generate at least 10 proposals by end Q2; seek renewal and increase to Joffe donation. Transparency Leaders Network – recruit 5 new members through autumn and post-annual lecture dinners. DFID: seek agreement with TI-S to share in the PPA with DFID which generates £2.8 million in unrestricted funding annually to TI-S; consider an AMM resolution if necessary.
9. Internal re-organisation Objective: ensure that TI-UK's resource allocation and internal organisation makes most effective use of resources Target:complete all major aspects of re-organisation by end June 2013.
9.1 Staff The previous role of Director of External Affairs will be replaced by the following positions: Research Manager, reporting to the Executive Director and responsible for managing existing research projects and generating in-house research. Communications Officer, reporting to the Advocacy Manager, and responsible for social media, the website, press enquiries and some aspects of events. The current Communications Manager will become an Advocacy Manager, responsible for a more strategic approach to communications and advocacy. The current Managing Director of Training & Advisory Services will become head of a new Business Integrity Programme, and move from a profit-share contract to become a member of the full-time staff. Senior Advisers will be appointed in several areas to provide additional capacity at senior level. The first of these to be appointed is Jeremy Carver. Discussions are being held with others, including Laurence Cockcroft and Tony Parton, who is due to retire from PwC in June and has represented the company for a number of years on the Business Principles for Countering Bribery Steering Committee. Interns will continue to be used and we will aim to use them more productively using the DSP model. Subject to negotiations with the landlord we will create space for additional interns.
9.2 HR We do not have an HR function per se. However, there are a number of changes and improvements that will be made. Key changes will be: Introduction of an annual staff appraisal system Introduction of performance objectives for all staff Creation of a training budget Creating a staff handbook.
9.3 Finance department To date, TI-UK has been using a part-time accountant working off-site for one day per month. The finance department is under-resourced, resulting in poor systems, management information being available long after it is needed, and patchy management of key areas such as cashflow. Among the changes to be made are: Employing an accountant for one day per week, who is physically in the office Increasing accounting capabilities by training other staff on QuickBooks; this will free up the accountant to do more work on planning and forecasting rather than data entry Creating a procedures manual Aiming to close the monthly accounts within three weeks of the month end Re-forecasting monthly after Q1 Giving all staff members budget categories and sign-off limits, creating personal responsibility for tracking expenditure Improved credit control, including maintaining a rolling cashflow forecast.
9.3 Monitoring & Evaluation A challenge for all TI chapters is in demonstrating the impact of their work. TI-UK does not have well-developed mechanisms for monitoring and evaluation. M&E systems will be developed in the course of the year, in particular seeking to learn from the DSP MEKANIC model. A starting point is that, as will be clear from this business plan, activities will be conceived in a more programmatic structure.
9.4 Office space Our current office space is reasonably expensive. Since we pay on a per desk basis, each new staff member, including interns, costs an additional ÂŁ5,000 pa. However, it is flexible as we can scale up and down at short notice. During the year we will examine options for rent reductions in our current space or moving to more cost effective space.
9.5 IT We have had a number of IT problems over the past year. Our IT provision depends on a single service provider who is a sole operator, and our reliance on in-house servers gives little flexibility when a problem arises. During the year we will examine what other IT options are available, and change our approach if we can find a better solution.
9.6 Governance A number of governance changes are being proposed to the board. These will make the charity more fit for purpose, but will also require a greater input of staff time and resource, both to make changes and in on-going implementation. Jan Lanigan, Company Secretary, has agreed to increase her involvement to one day per month in order to provide some additional support.
10. TI-UK and the global movement Objective: to engage more fully with the TI movement, learning from other chapters, sharing TIUK’s experience and knowledge and feeding TI-UK’s views into TI-wide policies and debates Target: form strong bi-lateral relationships with two chapters; participate actively in three movement-wide initiatives (MDGs, OGP, Financial Integrity); enter discussions with TI-S about TIUK acting as a centre of excellence
10.1 Background The TI movement has around 100 chapters of varying size and capacity. TI-S acts as the coordinator of movement-wide policy discussions on key issues such as the MDGs, and there has been a recent trend towards developing multi-chapter projects hosted by a chapter which acts as a centre of excellence. Historically, TI-UK has had a patchy involvement in these initiatives. In future, it will be considered a strategic priority for TI-UK to be actively involved in movement-wide activities and in learning from and supporting other chapters. Overall, we will take a more strategic and coordinated approaach to our relationship to other chapters, TI-S and the movement as a whole.
10.2 TI debates and issue-specific working groups We have joined the mailing lists for a number of TI-wide groups, including those listed below. MDGs G20 UNCAC coalition OECD Financial Integrity Mining While our capacity is still limited, we will take a more active role in three of these: MDGs, Financial Integrity and OGP. Thereafter, we will aim to become involved in a wider range of groups.
10.3 Discussion forums In addition to policy-related discussions, there is a network of other discussions that take place. TI-UK will participate in the following: Sharek council – supervising the TI intranet. Chapter heads telcon: TI Germany has recently initiated a monthly telcon between EU chapter heads, in which TI-UK will participate. Regional meetings: we will aim to have at least one TI-UK representative at each regional meeting, with the maximum possible representation at the AMM within the available budget.
10.4 EU-wide projects We have recently participated in the EU-wide NIS study, with funding obtained by TI-S from the European Commission. On the same basis, we will participate in two new projects over the next 18 months on match-fixing in football and on political lobbying. These projects allow our work to be placed in a comparative European context, which can be advantageous for our advocacy work; and they are partially funded y the EU and, although low margin, enable us to undertake projects that would not otherwise happen. We will indicate to T-S our strong interest in participating in other EU-wide projects.
10.5 UK fundraising for chapters There is clearly scope to raise funds from the UK that can be transferred to other chapters. To date, such fundraising has been directed to wards raising funds for TI-S. As and when we have the fundraising capacity, we will explore options for unlocking UK funding for other chapters.
10.6 e-learning Our e-learning course, Doing Business Without Bribery, has been adapted by TI New Zealand with funding from the NZ SFO. We are in discussion with the e-learning company and a number of chapters about translating the course and customizing it for their local markets.
10.7 Bi-lateral links There are obvious synergies with several chapters in the nature of our work. We will seek to build stronger bi-lateral links with a small number of other chapters. This will start TI Russia, whose executive Director has often expressed concern at the links between London and corruption in Russia, and who will be delivering our annual lecture in December.
10.8 Diaspora communities Diaspora communities, and in particular those with a critical mass in London, might provide an obvious link between TI-UK and other chapters. As and when we form bi-lateral relationships with other chapters, we will explore the options for working with relevant diaspora communities. 10.9 Centre of excellence There are several options for TI-UK to become a centre of excellence which we will explore with TI-S. These include: A new sector-specific initiative such as Oil & Gas or Pharma and Healthcare The Private sector: o Developing private sector tools o Business integrity – coordinating work across all chapters engaging business o Training & advisory services.
10.10 Hosting chapter visits We will allocate desk space and issue an open invitation to any member of the TI movement worldwide visiting the UK and wishing to make use of office facilities. Over time, this may lead to a more formal chapter exchange programme following the example set by DSP.
11. Budget Objective: to manage the organization’s financial resources such that the objectives and targets of the business plan can be met. Target: deliver the activities outlined in the business plan on schedule and within budget. 11.1 Philosophy A revised budget is attached as Annex I. The philosophy that underpins this is: A surplus is important to create room for investment and expansion. We will no longer operate to break-even budgets. An unrestricted surplus is more important than gross revenues. We will concentrate on impact and not simply growth for its own sake. There will be greater ownership and accountability by individuals for both revenues and expenditure, with a nominated person being accountable for each budget line. Clarity in presentation aids financial management. The budget has been extensively reworked presentationally. We need a framework for growth. In anticipation of being a larger organization over the next three years, a budget framework has been put in place that can scale up. For example, although a very small allocation has been made for HR, it has been dis-aggregated into a separate cost centre. 11.2 Variances from January 2013 budget The major changes from the version approved by the board in January 2013 are: Surplus Has moved to a surplus of £25k from break even. Income. CSF subscription is raised from £6k to £7.5k. This is the most important change in assumption on revenues. The plan assumes some but not all CSF members will pay the higher fee. We will know by end April how many have agreed to do so, and there is a fall-back position outlined should up to 10 hold out for the lower amount. An item has been added for VAT at £5k, recoverable as we will charge VAT on the CSF subscription. Probably very conservative. Other revenue streams are as per previously-approved budget. Expenditure Staff: a) assumes Director of External Affairs is replaced by Research Manager (June) and Comms Officer (July). Decision on Comms Officer to be taken at end Q1 once we know more about the fundraising strategy, specifically the Business integrity Programme and increased CSF subscription. The Comms Officer contract will initially be to be to the year end on the same basis. b) Small increase in costs of finance function and Company Secretary. Pension. Assumption is of a 3% pension for all TI-UK core staff. Board approval is sought specifically for the introduction of a pension arrangement for TI-UK employees. Some small increases to various budget lines to pay for activities that have been explained in the narrative plan. Some new lines added for the first time eg training. Restricted funds. There will be some adjustments to this as some multi-year projects will need funds carried forward. This will not affect the bottom line. Presentational changes - all designed to enhance readability and accountability More items included in unrestricted income to dis-aggregate certain categories (eg taking Gift Aid out of Miscellaneous and giving it a separate line). Restricted project overhead recovery is now shown as unrestricted project income not a deduction from overhead costs. Each line of income and expenditure is allocated to a single responsible person. New categories of expenditure Governance, Finance, HR - to disaggregate bundled costs and provide a structure more suitable for when we expand.
Annex I Revised budget TRANSPARENCY INTERNATIONAL (UK) LIMITED BUDGET 2013/14 15/04/2013 UNRESTRICTED FUNDS
Budget
Budget
2013/14
Holder
ÂŁk KPI - Unrestricted Reserves Unrestricted reserves at 1 April 2013 b/fwd Movement on unrestricted reserves Total Unrestricted Reserves carried forward @ 31.3.14
121 25 146
Unrestricted Cash (Inc.TAS) Unrestricted Income Individual Member Donations
6
KZ
Company Member Donations
6
KZ
Trusts
Transparency Leaders Network (TLN)
16
RB KZ (renewals) PvV (new) KZ (renewals) RB (new)
Project Overhead Recoveries - corporate
14
RB
5
RB
Project Overhead Recoveries - government
17
RB
TI -S Share of GCTI
20
RB
Miscellaneous Donations
3
KZ
Gift Aid
4
CSF Donations
Project Overhead Recoveries - trust
VAT recovery Support Services to DSP Transfer to unrestricted funds from Business Integrity Programme
40 225
5 20
CV
6 386
Unrestricted Expenditure Employment Costs
229
RB
Rent & Accomodation
27
KZ
IT Support
15
RB
Marketing & Communications
30
RD
Office Administration
28
KZ
Human Resources
5.5
RB/KZ
Finance
6
RB/KZ/CV
Governance
12
RB
Depreciation
4
CV
Contingency
5
RB
361 Transfer net income (costs) from projects Unrestricted Surplus/(Deficit)
25
RESTRICTED PROJECT FUNDS Summary of Restricted & Designated Income Restricted reserves b/fwd 1 April 2013 (DSP) Income
12
CV
1027
Income - DSP
754
MP
Income - Business Integrity Programme less CSF subs
172
PvV
Income - Projects Corp
30
RB
Income - Projects Trust
11
Income - Projects Govt
60
Expenditure
RB 0
RB
-1022
Expenditure - DSP
-754
MP
Expenditure - Business Integrity Programme
-167
PvV
Expenditure - Projects Corp
-30
RB
Expenditure - Projects Trust
-11
RB
Expenditure - Projects Govt
-60
Transfer to unrestricted from TAS
-6
Total Restricted reserves carried forward 31.3.14(DSP&TAS)
18
Unrestricted and Restricted Funds Summary Total funds b/fwd 1 April 2013 Total Income - Unrestricted & Restricted Total Expenditure - Unrestricted & Restricted Total funds carried forward 31.3.14
133 1352 -1321 164
RB 0
CV
Enlarged Version of the above Budget for ease of reading TRANSPARENCY INTERNATIONAL (UK) LIMITED BUDGET 2013/14 15/04/2013 UNRESTRICTED FUNDS
Budget 2013/14 ÂŁk
Budget Holder
KPI - Unrestricted Reserves Unrestricted reserves at 1 April 2013 b/fwd Movement on unrestricted reserves Total Unrestricted Reserves carried forward @ 31.3.14
121 25 146
Unrestricted Cash (Inc.TAS) Unrestricted Income Individual Member Donations Company Member Donations Trusts CSF Donations Transparency Leaders Network (TLN) Project Overhead Recoveries - corporate Project Overhead Recoveries - trust Project Overhead Recoveries - government TI -S Share of GCTI Miscellaneous Donations Gift Aid VAT recovery Support Services to DSP Transfer to unrestricted funds from Business Integrity Programme
6 6 40 225 16 14 5 17 20 3 4 5 20 6
KZ KZ RB KZ (renewals) PvV (new) KZ (renewals) RB (new) RB RB RB RB KZ
CV
386 Unrestricted Expenditure Employment Costs Rent & Accomodation IT Support Marketing & Communications Office Administration Human Resources Finance Governance Depreciation Contingency
229 27 15 30 28 5.5 6 12 4 5 361
Unrestricted Surplus/(Deficit)
25
RB KZ RB RD KZ RB/KZ RB/KZ/CV RB CV RB
RESTRICTED PROJECT FUNDS Summary of Restricted & Designated Income Restricted reserves b/fwd 1 April 2013 (DSP) Income Income - DSP Income - Business Integrity Programme less CSF subs Income - Projects Corp Income - Projects Trust Income - Projects Govt Expenditure Expenditure - DSP Expenditure - Business Integrity Programme Expenditure - Projects Corp Expenditure - Projects Trust Expenditure - Projects Govt Transfer to unrestricted from TAS Total Restricted reserves carried forward 31.3.14(DSP&TAS)
12 1027 754 172 30 11 60 -1022 -754 -167 -30 -11 -60 -6 18
Unrestricted and Restricted Funds Summary Total funds b/fwd 1 April 2013 Total Income - Unrestricted & Restricted Total Expenditure - Unrestricted & Restricted Total funds carried forward 31.3.14
133 1352 -1321 164
CV
0
MP PvV RB RB RB
0
MP PvV RB RB RB CV