Q1 2008 interim Memorandum of Understanding

Whereas

The Board of Directors and Management of Life in Africa Foundation (a Ugandan company limited by guarantee) has encouraged it's community members at LiA Kireka and LiA Gulu to independently register as local Community Based Organizations, and

Whereas

Life in Africa Foundation (Uganda) has also encouraged the establishment of Life in Africa USA, a non-profit making organization based in the State of Washington,

It is hereby agreed that the 4 organizational entities (Life in Africa Foundation, LiA Kireka, LiA Gulu and Life in Africa USA) shall work together during Q1-2008 as the Life in Africa WE Network under the following operational guidelines:

  1. This Q1-2008 interim agreement shall be temporary, pending
  1. resolution of and agreement on all outstanding issues related to the re-allocation of Life in Africa Foundation community assets, summarized at http://lifeinafrica.com/network/ financesplit_feb08.htm, including detailed CBO revision/confirmation of all figures and verification by Life in Africa Foundation.
  2. completion of the official CBO registration process, and creation of organizational bank accounts by each CBO.
  3. continued joint development of Life in Africa program guidelines and complete CBO documents, policies and procedures,
  4. review by legal counsel in Uganda and the USA, and
  5. a revised Memorandum of Understanding governing 2008 WE Network operations and 2009 planning procedures, to be be signed in Uganda between representatives of all 4 entities concerned no later than 31 March 2008.
  1. During the Q1-2008 interim period that is covered by this agreement, Life in Africa USA shall transfer funds for CBO LiA 4 Kids program activities, to be disbursed and monitored locally by LiA Foundation and reported on in detail by appointed CBO members, according to draft program guidelines noted at the following publicly viewable pages:
  1. School Fees 2008: http://www.ned.com/group/lia-usa /ws/schoolfees2008_disbursals/
  2. Life4Kids Lunch Club: http://www.ned.com/group/lia-usa /ws/life4kidsclub_disbursals/
  3. Community School Fees fund for Gulu: http://www.ned.com/group/lia-usa /ws/extraordinary_disbursals/
  1. During the Q1 2008 interim period which this agreement covers, LiA Kireka and LiA Gulu will endeavor to collect all outstanding micro-loans from members for the purpose of:
  1. Both CBOs repaying to Life in Africa Foundation the full outstanding portfolio of Kiva loans remaining, by no later than 31 March 2008.
  2. LiA Kireka repaying all borrowed Onet group loan funds to LiA Gulu
  3. LiA Gulu converting previously donated Omidyar.net loan funds to Loan Guarantee Funds on deposit with Life in Africa Foundation, as prescribed for CBO member participation in the MicroSuccess Community Loan Guarantee program detailed at http://lifeinafrica.com/programs /microsuccess.htm
  4. Both CBOs preparing members for Q2-2008 enrollment in the MicroSuccess credit rating and guarantee system detailed in draft form at http://lifeinafrica.com/programs /microsuccess.htm, at levels appropriate to each borrower's history to date.
  1. For the purpose of receiving disbursals of program funds and operational support during the Q1 2008 interim period covered by this agreement, and/or prior to completion of each CBO's locally official registration and creation of an organization-owned bank account, 3 members of each CBO governing board have opened joint accounts in temporary stewardship of CBO funds as follows:

All bank records on these accounts shall be made freely available to the Life in Africa Chief Accountant, and all balances in these accounts will be transferred to CBO owned accounts no later than 31 March 2008.

  1. Each CBO will receive an operational assistance package from Life in Africa Foundation / USA that includes:
  1. An operational start up loan at 10% per annum from a private lender arranged through Life in Africa Foundation for a total amount of shs 7,500,000 per CBO. The loan is to be disbursed by Life in Africa Foundation to each CBO in 2 tranches of shs3,500,000 in early February, and shs4,000,000 upon signature of the 2008 Life in Africa WE Network MoU, on or before 31 March 2008. Loan repayments from each CBO of shs 562,000 per month shall begin on 1 May 2008 and continue monthly for 15 months through 1 July 2009. All interest paid shall be earned by Life in Africa Foundation; 100% of the loan capital must be returned to the lender by Life in Africa Foundation no later than 15 July 2008.
  2. 12 months of financial support from Life in Africa USA (disbursed monthly) for each LiA CBO to hire a (required) Community Administrator that meets the job description requirements listed at http://lifeinafrica.com/jobs/com munityadmin.htm
  3. Ongoing technical capacity building in program planning, online reporting and financial accounting from Life in Africa Foundation staff, for a minimum of 10 onsite staff days per month at each CBO.
  4. Operational allowances of 10 - 20% built into all LiA USA/Foundation draft program fund disbursal guidelines.

Drafted in Gulu, this 4th day of February 2008.

Electronically signed for agreement:

Evvy Bryning for Life in Africa USA

Grace Ayaa for Life in Africa Foundation

Ovola George and Akena Micheal for LiA Gulu

Ndelo Peter and Jesca Wassa for LiA Kireka