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09 May, 2010

Proposal Preparation of Shrimp Farming 03 – Financial Proposal

Financial proposal is a proposals document which containing on a description of the cost needs to be issued in activities implementation in accordance with the technical proposal document.



Unlike the technical proposal, a financial proposal substantially is simpler because it only contains a costs requirements and it’s more in the formulation and calculation of cost allocation. As noted in previous discussions, a financial proposal must be based on cost reasonableness principle, which means its preparation is based on reasonable prices that prevail in certain areas and at certain times.

In general, the financial proposal document consists of:
  1. Letter of financial submission from the proposed activities that mentions a proposed total costs to implement the proposed activities.

  2. Summary / recap of total costs which necessary in implementation of proposed activities.

  3. Break-down of costs allocation based on stage sand type of activities will undertaken.
While as substance, the financial proposal describes the used costs allocation for:
  1. Remuneration and operational allowances (mobilization / demobilization, transportation, communication, etc.) of personnel involved in the proposed activities were based on the time allocation of personnel involvement.

  2. Cost of activities implementation i.e. procurement, coordination, administration, reporting and other activities as listed in the technical proposal.
A financial proposal is presented in tabulated form (except item no.1) which also contains a budget allocations for the implementation of activities during the period of time specified. Some items that need to be included in preparing the tabulation of cost allocation is as follows:
  1. Description of cost allocation. In this item, list the substances used in allocation of costs (remuneration, personnel allowances, procurement, administration, etc.) are described according to their respective sub-items that are necessary.

  2. Unit. This item describes the unit of budget allocation items, for example, for remuneration allocations (salary / wages), its unit is the person-days(PD) or person-month (PM)

  3. Quantity. This item describes a needed amount for each item of activities in the activities implementation.

  4. Unit price. This item describes the amount of price for each unit (item no.2) obtained based on the price prevailing at a location and at a certain time period

  5. Total price. This item was obtained by multiplying the quantity (item no 3) by unit price (item no.4).
The basic principles that need to be understood in the formulation of a financialt proposal is: perform price survey at location of the proposed activities. This needs to be done because between one region to another would differ in price. Additionally, a cost proposal to be prepared carefully especially in the counting process mathematically. Do not let the financial proposals that have been prepared only lead to the implementers of activities at a disadvantage, so that it can cause a decrease in quality of produced work.



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  1. Proposal Preparation of Shrimp Farming 02 – Technical Proposal
  2. Proposal Preparation of Shrimp Farming 01 - Basic Understanding
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  4. Shrimp Culture Area Development - (4)- Shrimp Culture Technically Approach
  5. Shrimp Culture Area Development - (3) - Area Approach (Micro)
  6. Shrimp Culture Area Development - (2) - Area Approach (Macro) - Water Resources
  7. Shrimp Culture Area Development - (1) - Area Approach (Macro) - Land
  8. Arrangement of Partnership on Shrimp Culture Development Program - Logical Frame Work
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  10. PPartnership System Concept on Shrimp Culture - (1) - Background

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