News & Notes 867:BCC Narrative Report – Jan '21 to March '21

News & Notes 867 24 April 2021

Entity::BCC Narrative Report: Jan ’21 - March ’21

The BCC would like to share with you a narrative report of issues addressed and decisions taken in the past 3 months, as a complement to our monthly report of income and expenses. We hope this can increase community-wide understanding of the economic issues affecting our community that fall within the BCC’s scope of work.

Corona scenario

We know many of you are concerned about the economic impact that the corona lockdown has had on our community. Given that March 31st is the end of the financial year, we are able to present to you in this report the figures for this past ‘corona’ year (20/21) compared with the previous year (19/20), and our initial impressions for the coming year (21/22).

• Income: Income to City Services reduced by 2% from 19/20 to 20/21. It is very important to understand that this figure is not a reflection of the reduction of income-generation in the corona year: at least 13% of this CS income was pending contributions from previous years, and there was a 350% increase in additional (external and internal) contributions to Auroville. At BCC we are touched that so many of these pending and additional contributions were given in such an uncertain time. Income may reduce further in 21/22, so we encourage all to continue contributing according to their capacity.

• Expenses: Services reduced their expenses and used their reserves, resulting in an 11% decrease in CS disbursements over the course of the corona year, compared to the previous year. Expenses are likely to increase in the coming year (21/22) with increased activity and reduced reserves within Services.

• Reserves: Our reserve closing balance is significantly higher at the end of 20/21 (907 lakhs) than it was in 19/20 (620 lakhs). While the trend in the past years has been a building up of reserves year by year, we are astonished about this increase during the corona year, thanks to combined efforts on both the income and expenses side, demonstrating the magic of support for Auroville. At the same time the BCC are reflecting on the conservative approach we took towards expenses in this past year, given the unpredictability of income, and what adjustments can be made in the coming year (21/22).

Below is a table comparing the income, expenditure, and reserve figures of this past year (20/21) with the previous year (19/20) in lakhs. A more detailed summary is attached to this posting on the Auronet.

	2019-20	2020-21
Reserve opening	513	620
Income (I)	2,089	2,052
Expenses (E)	1,982	1,766
I – E	107	286
Reserve closing	620	907

• Update on fundraising:
  • MERA: BCC has continued to receive funds through MERA towards the disbursement of Temporary Emergency Maintenances (approx 4 lakhs monthly). As of March 31st, 2021 the MERA account is closed. You can now make direct extra contributions to City Services.
  • FWE: BCC applied for a Foundation for World Education emergency relief grant towards the Maintenances of all those working in Auroville and Outreach schools, and was awarded approx 27 lakhs, the equivalent of a months' worth of this total Maintenance budget.
  • AVI-USA: In collaboration with the RagaMantra Trio (Nadaka, Gopika, Keshava) and Unity Pavilion, AVI-USA held a live-stream benefit concert for Auroville and raised a total amount of 17.5 Lakhs which was transferred to City Services.

• Update on Temporary Emergency Maintenances (TEMs): The BCC has continued to disburse Temporary Emergency Maintenances to 46 adults (3.5 Lakhs/month) and 19 children (Rs. 70,000/month). These have been granted (and extended) based on the recommendations of the Trustees of the activities or units in which the Aurovilians are working. The Temporary Emergency Maintenance measure was to be reviewed in March 2021, and has been extended for an additional 3 months (till June 2021). BCC is still accepting new requests for TEMs. The detailed Temporary Emergency Maintenance guidelines are available on Auronet.

• Update on Temporary Emergency Bridging Maintenance: The Temporary Emergency Bridging Maintenance measure, a temporary replacement of the Bridging Maintenance guideline, was scheduled to be reviewed in March 2021. In view of the economic situation, the Temporary Emergency Bridging Maintenance measure has been extended for an additional 3 months (till June 2021). The detailed Temporary Emergency Bridging Maintenance guidelines are available on Auronet.

• Service Budgets in the Corona Scenario: The BCC has not invited any new budget requests in this past financial year (20/21) as the economic situation is so uncertain. This is an on-going measure in 21/22.
  • The reinstating of reduced recurring budgets during the corona year (20/21) is assessed on a case-by-case basis with in-person meetings between BCC members and Service managers.
  • The BCC and FAMC agreed to create an additional 20 FT City Services Maintenances in the new financial year (21/22), to be allocated across the 120 Services under the City Services budget. You’re welcome to contact us for a meeting.

Maintenances & wages

• Wages increase: The BCC and FAMC recommend that the wages of all employees earning less than Rs. 20,000/month be increased by 6% in accordance with government guidelines in 21/22.

• Future Maintenance increase: The BCC in consultation with the FAMC would like to increase the Maintenance amounts this financial year. This is typically done in September, following the receipt of unit balance sheets. BCC will await these figures in order to determine whether, and by how much, the Maintenance budget can be increased. The Maintenance budget is the largest component of the overall City Services budget (1 crore/month).

• Newly allocated Maintenances: As published at the time of the Selection Process, the BCC allocated 2 additional Maintenances to the existing FAMC budget (3 Maintenances, used entirely for FAMC administration), given that none of the previous FAMC members were receiving a Maintenance for their FAMC work. These have now been allocated to new members.

Non-recurring budget requests

• Fencing of new land (Jan): Rs. 5 lakhs was disbursed to the Land Board for the fencing of newly purchased land. BCC recommended to Land Board, FAMC and Working Committee that in future the cost of fencing be included in the funding budget for purchase.

• Auroville Electrical Service: The BCC have been granting AVES non-recurring budgets on request for maintenance of our existing electrical infrastructure, totalling approximately 4 lakhs/year. This year AVES proposed and BCC agreed to increase their regular budget by this amount, to be used exclusively towards such maintenance expenses.

• Selection Process (Jan): Rs. 90,524 was disbursed to the RAS and Auroville Council to cover the expenses of the Selection Process.

• Matrimandir events (Feb): Rs. 36,000 was granted towards the celebrations held at Matrimandir for the Mother’s Birthday (Feb 21) and Auroville’s Birthday (Feb 28).

• Youth Centre 25th anniversary (Feb): Rs. 15,000 was granted for the community event held at Youth Centre at the occasion of its 25th anniversary, on Feb 21, 2021.

• Performing Arts: At the beginning of this ‘corona’ financial year, given the lockdown restrictions and economic impact, the annual budgets usually disbursed towards performances (Rs. 3 lakh) were not disbursed. On a case-by-case basis, BCC granted Rs. 15,000 for the Genius Brothers’ Show, and Rs. 15,000 was granted for the Auroville Theatre Group performance EQUUS, both in March.

• Fencing requests: The BCC has received a few funding requests from individuals for fencing. The BCC would like to clarify that funds for fencing are only allocated if there is encroachment, or threat of encroachment, in consultation with the Land Board, and that the Land Board should be approached first for funds towards fencing.

Community-at-large issues

• Update on Solar Energy Pool & Average Pooled Electricity Cost Proposals: A subgroup of the BCC (Mahi,

Margarita, Suryamayi) have been studying these proposals presented by Auroville Consulting and AVES in consultation with other actors in the energy field: Varuna and Sunlit Future, as well as Divya and Otto of the loan group and investment committee.

• Auroville Board of Services (ABS): BCC members have regularly been attending the “All Services” meetings hosted by the Auroville Board of Services to build understanding and connection with the Services sector and the new ABS core team. A follow-up meeting between BCC and ABS was postponed due to an internal ABS process. BCC feels it is very important to have a collaborative relationship with the Services and hopes an effective body and channel for this can be established. In the absence of this BCC is left to handle difficult situations involving the functioning of services which is not our purpose and responsibility as per our mandate (see following section on management of Services).

Management of Services

• PTDC welcoming new members: In December 2020, the BCC discussed with PTDC manager Anandi the situation of exceptional demand for the service – the few hundred community members who are on a long-pending waiting list to become members (and others who may not have added themselves to the list). Anandi explained that to welcome new members required a change of operations in PTDC with a fresh afternoon delivery of fruits & vegetables and re-stocking of shelves, and an increase in operational hours for the service. To make this possible, she felt two additional team members would be required, and asked that the BCC commit to providing up to two additional Maintenances if needed before she began recruiting and preparing the operational changes. In January 2021, BCC communicated to PTDC that we would agree to this. As of March 2021, PTDC began to welcome new members, and has not yet requested any additional Maintenance amount.

• Pour Tous Water: In December 2020, the BCC published the recommendation that Pour Tous Water be registered with accountable executives under an Auroville Trust, following an assessment of the service (see previous BCC report and the BCC Auronet page for details). As of January 2021, the BCC shared the full assessment and its accompanying recommendations with Service Trust trustees, who agreed to explore registering PTW within their trust. BCC had subsequent meetings with Service Trust, potential new executives, and the existing PTW team. The Service Trust is now taking care of the registration process and the appointing of executives. Until this process is completed, the BCC is continuing to oversee the PTW accounts in collaboration with the potential new executives.

• Solar Kitchen (ongoing topic): Funding for the Solar Kitchen is still an ongoing issue. SK is still running at a loss most months. The situation has improved a little bit with the official opening of high schools (Future School, Last School and NESS) which received tiffins for January to March. The subgroup of BCC-FAMC changed with the change in FAMC members. The new subgroup consists of Inge, Mahi, Rathinam (BCC) and Marc (FAMC). SK reserves are now finished. The subgroup is now focusing on long-term solutions to make SK financially viable as the world situation with Covid 19 is not likely to end soon. BCC has supported SK with funds for urgently needed infrastructure repairs.

• Visitors Centre Parking/Access to Matrimandir: The subgroup assigned to work with VC Parking/Access to MM in December 2020 failed to collaborate correctly with VC Parking/Access to MM team. Access to MM received a regular budget to cover wages of employees. Any additional bills incurred had to be approved by the subgroup before disbursement. There was a time-lag for this of about 2 months. In mid-March the subgroup (Mahi and Margarita) with a few additional BCC members met with the VC Parking/Access to MM team to try to come to a better understanding. BCC members felt the meeting went well, but the VC Parking/Access to MM team felt differently. An internal follow-up meeting with a new subgroup of BCC members Enrica, Rathinam, Hans, Mahi and Danny took place, followed by a BCC representative (Danny) meeting with Peter and Nicole. Collaboration is going smoother with this new support group. The month of April will be used to collectively agree on a recurring budget for the 2021-22 financial year, and past misunderstandings will be checked in depth after May ‘21.

• Savi: BCC members Enrica and Inge met 2 times with the Savi team Sara, Manojkumar, Pranshula, Saranya, Sivakumar, and Dhanya as executive of LEAD. Sara is leaving the team from April’21 onwards. It is a need to reflect on the experience during the past year and explore the future of this very important service together. Savi is the entry door for volunteers to get in contact with Auroville. The next meeting is scheduled for mid April’21.

• Bharat Nivas: BCC members Enrica and Inge met with the Bharat Nivas (BN) team Deepti, Shankar, and Devasmita to look into the financial situation of BN and see how to take it forward. The City Services budget gives financial support only to the Auditorium. The Government of India has informed Auroville that no more funds will be allocated for the maintenance of the BN compound. They need to be self-sustained from the income generated through the 2 guesthouses and the hosting of activities in the assets created from Government of India funds for this purpose. We have come to some conclusions and will see how it will evolve in the next year.

• ACARAT: The BCC proposed to the FAMC that the funds and assets database project ACARAT, developed with GOI funds by the previous FAMC team, be registered as a City Service activity with an on-going City Services budget as this represents a valuable community resource.

• AV Ambulance: The Ambulance team requested that the BCC approve a separate budget from Santé for AV Ambulance for more autonomous operations, and to increase it. The request was for an additional 2 FT Maintenances and an increase of their regular budget from Rs. 11,000/month to Rs. 30,000/month. A subgroup of BCC (Rathinam & Danny) met with both teams at the end of March. Santé was in agreement with an independent budget for the ambulance, and details of working together and flow of information between the two teams with this new arrangement was also clarified. The subgroup also discussed the new budgetary requests with the Ambulance team. The separate budget request and its components were added to the BCC agenda for approval for April 1, 2021.

• N&N: Julie Plot, second editor of N&N, resigned in February. Thank you, Julie!

Meetings with other groups

• Farm Group: A subgroup of the BCC (Inge, Hans, Karthic) had two follow-up meetings with the new Farm Group Coordination Team, and FoodLink, to reflect together on new ways for BCC to support the farms in providing sustenance for the community. We appreciated the building up of an inspiring, collaborative energy field!

• Auroville Board of Services (ABS): BCC members have regularly been attending the “All Services” meetings hosted by the Auroville Board of Services to build understanding and connection with the Services sector and the new ABS core team.

• Funds and Assets Management Committee (FAMC): The BCC has established regular joint meetings with the new FAMC, following the collaborative relationship built up with the previous FAMC, whom we thank! The main topic of discussion between the two groups has been the budget projections, how to increase income and facilitate donations. The new FAMC has also appointed two BCC liaison members (Angelo and Stephan), additionally some FAMC members regularly attend BCC budget subgroup meetings.

• Auroville Council: BCC members attended a joint meeting of Working Groups organised by the Auroville Council regarding Auroville’s population growth and related development needs.

BCC Finance

• PTPS contribution to City Services: In March 2021, Kala & Kumar of PTPS transferred Rs. 12,259,139 (approx 1.2 crore) to City Services as outstanding contributions. For the past many years this service was functioning as a commercial unit, earning large profits every year. However, as it was supposed to be a service, no contribution schedule was generated, and it had contributed almost nothing to City Services. The amount transferred represented 33% of profits from PTPS for the years 2007 - 2020, in line with the minimum that all commercial entities are expected to contribute to the collective account.

• In-Kind Contributions: In March 2021, the BCC approved a new method for calculating in-kind contributions within the schedule of contributions. What are in-kind contributions? Some units have always given their products (cheese, bread, probiotics etc.) in-kind within Auroville (to schools, Solar Kitchen, community events etc.), mostly on a regular basis. This is a significant practice for making the in-kind economy of Auroville a reality. While these products are given freely to the receivers, these in-kind contributions are distinct from donations because of how they are shown in the City Services Schedule of Contributions. The cost price of these items is included in the expenses of the unit and deducted from the overall contributions due to City Services. The BCC Finance team noted that in-kind contributions were being shown as part of units’ expenses, but not as part of their incomes (the cost-price amounts) in their balance sheets, and this was not correct. The new calculation rectifies this inconsistency by adding the in-kind contribution amount to the net profit before calculating the minimum of 33% of profits due. For most units contributing in-kind, this does not add anything to the overall due amount as they always give above the minimum requirement.

Internal BCC team updates

• In January 2021 the Appeal Body for the HRT appeal reported that the initial decision of BCC to close and merge the HRT with BCC was valid (for details of the appeal, please contact the Auroville Council). All HRT tasks have been taken up by the existing BCC office team. They can be reached at bcc.care (at) auroville.org.in. In February 2021, the BCC welcomed Karthic Dixit, a banker and Savi volunteer for the past two years, as a consultant to support BCC with accounting and budgeting processes (with a trial period of 3 months). Thank you Karthic!

• In February 2021, Eli (Newcomer working at Unity Fund) offered to support the BCC office ½ time to replace Bitna in generating the monthly and annual reports of City Services. Thank you Eli, and Unity Fund!

• In March 2021, the BCC invited Eli and Sheida, two accountants working in BCC office and BCC Finance, to additionally take up the role of in-house accounting for City Services (services registered directly under BCC and not a Trust). This was agreed to pending the registration of their accounting activity, AuroAccounting, under Kattida Kalai Trust.

• In March 2021, two BCC members resigned. Christine Besson resigned due to her existing workload at Financial Service. Margarita Correa resigned to serve the idea of “Prosperity” in a different way. Both offered to remain involved with BCC as Resource Persons. Thank you, Christine and Margarita, for your service!

• In March 2021, the FAMC put a call out to the community to fill the vacant BCC memberships, with input from current members regarding the profiles (skills & qualities) needed to optimally complete the team. We look forward to welcoming new members!

~ Budget Coordination Committee (BCC)