Setting up an agri-agency in Spain (investment) - ACODEA In Spain AgriCord and Agriterra want to do investments in the Spanish agri-agency ACODEA, and have ACODEA work as a franchisee of Agriterra work for a part of the Agriterra targets. This means that ACODEA in Spain recruits experts, staff assumes jobs and they also work with some customers in Latin America and arrange visits to and from that continent. 

In the period 2014-2018 ACODEA will work with a budget of 2.3 million in projects within the Agriterra program, with an ever-increasing number of experts (up to 77 in 2018) and annually organize an increasing number of delegation visits from Latin America to Spain. The forecasted budgets for missions and visits are repectively: 1,3 million euro and 700 thousand Euro. 

The costs associated with advice or project management are carried by Agriterra or AgriCord, depending who approveal of the budget of each project. This is business as usuall. Most will be visible within the program of Agriterra. The costs related to the supervision of the projects and the support from Agriterra, to the extent where they exceed the normal completion of the above tasks are divided between Agriterra and AgriCord.

Activities & special services linked to this project are not included in costs for back donors. The tariffs are therefore 0.

Financial administration
activities related to re-launch ACODEA and subsequent projects

ACODEA get a continuation using part of  Agriterra’s projects funds over the period 2014-2018
Check for details on the proposed activities annex I of the Convenio
Premises
1.	The projects (including missions, visits to Spain and transfers for projects) form part of either Agriterra’s programme with DGIS (and or in the future occasionally other donors) and AgriCord, may be in a mix, all depending on the occasion. Results on these projects can be included in the reports to the corresponding donors. 
2.	As far as possible, the activities should be implemented by ACODEA, using their administrative organization (read: contract, other documents, payments by ACODEA), Agriterra and Agricord acting as ACODEA’s back donors, transferring all related amounts to ACODEA in order for them to take care of it. 
Concrete administrative arrangements
3.	In the initial stage, ACODEA will be involved in projects in Bolivia and Peru, already well underway and hitherto implemented as Agriterra projects. In these cases, involvement of ACODEA personnel can be arranged for, as Agriterra contracting an Agripool expert, paying vacancy and DSA payment to ACODEA. DSA can be passed to the expert according to ACODEA´s vacancy policy and local fiscal possibilities. I assume this being the case with the current mission of Manuel Nogales to Ethiopia. Mission 6804  Business Planning Coaching Track 2.0 D
4.	Think of the case of the visit of Peruvian cooperatives to Spain in the summer of 2014, an visit that happened in the framework of project 13cov-6010. In this case ACODEA was the organizing party and therefore received the payments for attending the Peruvians. All arrangements, however, were done by Agriterra. In this case, in the future, it will be more appropriate, even when it is in the framework of an Agriterra of AgriCord project to make ACODEA taking charge of all related activities, transferring an amount for the actual visitors, plus the related service costs of ACODEA [Are AgriCord´s procedures and service reports adequate in these cases?]. 
5.	In projects which will be implemented as part of ACODEA´s portfolio, notably Colombia for a start, the idea is to transfer an amount based on the planning for all related activities and the contribution of ACODEA, taking this agency all charges of mission, desk work, project grants, visits to Spain and others if it is the case. For all related activities, ACODEA can charge us their labour at a tariff, or charge a percentage over projects, missions and visits. [decision needed: ACODEA will charge labour with a tariff]. In this case again, ACODEA is taking charge of all related activities, transferring an amount for the all related project costs, plus the related service costs
Funding
To make things worse from an administrative point of view, the funding of all these activities is from Agriterra and AgriCord sources. Yet, it is also foreseen that the actual re-launch of ACODEA will not be possible without an additional investment. The costs for this initial investment are calculated to be 355.000 euro over the period 2014-2018. The detail of these costs is as follows:
Extra costs for personnel of ACODEA to recruit Agripoolers 			107.734 (b)
Extra costs for services to projects 						102.680 (d)
Other costs, systems, training							  19.585 
Total 										230.000

Of these 230 thousand Euro, Agriterra will pay 105.000 out of a post on its balance (bestemmingsreserve). AgriCord pays 125.00 euro. Additionally, AgriCord pays another 125.00 to enable the involvement of Agriterra director as consultant for AgriCord to accompany this proces.

What is needed is an agreement Agriterra-AgriCord with ACODEA in order to deal with the payment of these costs, which in fact are the balance between the actual costs of ACODEA and the income on services to the projects of 309.000 euro. In the agreement, Agriterra will guarantee this income over activities, to be paid out of current back donor agreements. This amount, together with earlier mentioned 105.000, is the 414.000 euro to be mentioned in the agreement as a commitment from Agriterra.

For this matter, ACODEA needs to organize its annual accounts in two sections: 
1.	Projects (expenses accounted for by customers and services rendered by ACODEA personnel  (hours at a tariff) equals related subsidies form AgriCord and Agriterra).
2.	All real costs of ACODEA (personnel, housing, etc.) is covered  by income from services. As far as this is not covered out of the balance reserve (bestemmingsreserve),  it is taken care of from back donor subsidies..

The ultimate goal of this project is to enable the re-launch of the Spanish agri-agency ACODEA up to the point that it has a considerable portofolio of activities and an own sustained source of income based among others on a stable relation with the Spanish government