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After a relentless efforts and the co-ordination of internal audit staff I could be able to accomplish this book. Hope it would provide best elements for the new comers to gain sufficient knowledge about the organisation. Further it would initially helpful for the management trainees for capacity building, motivation, through knowledge of the organisation its mission and vision. The DC/ADC/AC/DO/CO has also been benefitted by it. More emphasis has been given to concise the subject matter which would be understandable by all. Sufficient study material has also been amassed and simplified for instant hold of the subject matter by the new comer.
INTRODUCTION Honourable chairman Mr. Khirod Chandra Malick is the founder of Bharat Integrated Social Welfare Agency. While working in the western Orissa as a Banker visualised the impact of poverty in the western Orissa. This was his turning point where he had an inner urge to start a philanthropic organisation. Thus BISWA was born with a very well defined mission & vision. It is now fully committed towards sustainable development of the people with special emphasis on women. During this period BISWA has expanded to the other states thereby acquiring a status of a prominent national level NGO. At present it has decided and planned to create one million employment opportunities by March 2011 and bring down poverty level to 20% by that time. Our chairman is a well known social worker and founder of the organisation. At first he had started his career as a banker. He could able to recognise the poverty in Orissa. Looking into the poor financial, social condition of Orissa he felt an urge to start this organisation. As a chairman of BISWA he looks all round development of the poor and downtrodden people with an emphasis to women, children and aged. Microfinance, microenterprise, micromarketing, livelihood intervention, natural resource management, health, education, water & sanitation, social security and capacity building are his noble aim of his profession. With his innovative ideas towards reducing poverty and creating sustainable income source he is recognised and appreciated by various organisation of national and international level. The organisation BISWA started from the district of Sambalpur. Today’s through it considerable efforts the organisation stands a cross road. With its integrated approach it has emerged as one of the successful organisation in social NGO sector. Through its holistic approach it has bring development by its tools of microfinance, microenterprises, micro insurance and micromarketing. Its development programme is for poverty eradication, livelihood promotion, basic health services, water & sanitation, education, social marketing, natural resource management etc. After a careful study of the organisation and its presence in eleven states of the country and aims at one million employment opportunities by 31st March 2011.
SELF HELP GROUP If we think world as a whole, most of the rural women are illiterate/semi-illiterate, landless and they are economically very poor, for which they work on daily wages basis for survival. In the year 1998 first time rural women becomes organised into groups called Self Help Group. The object of SHG is 1. To promote saving and credit activities. 2. Discussion of many issues pertaining to their socio-economic educational and health status. 3. To promote employment of group member in to production unit. 4. Promotion of income generation program in self help group. 5. Build confidence among the women group member for better decision making and it will leads to participate and contribute in general social and political matter in their respective villages including women right. SHG is group of rural poor who have volunteered to organise themselves into a group for eradication of poverty of the members. The members are agreed to save regularly. Generally a self help group is consists of 16 to 20 persons. All members of the groups should belong to family below poverty line. The group should not consist of more than one member of the same family. A person should not be a member of more than one group. The groups should be in the form of regular meeting i.e. weekly in democratic manners. They should be allowed free exchange of views, participation by the members in the decision making process. The group should able to draw up an agenda for each meeting and take up discussion as per agenda. The member should have regular saving. They should collect it from all members regularly in the group meeting. The saving collected will be group corpus fund. The group corpus funds should be used for advance loans to the members. The member in the groups meeting should take all the loaning decision through decision making process. The groups should be able to prioritise the loan application, fix repayment schedules, fix appropriate rate of interest for the loan advances. They should be able to monitor the repayment of the loan instalment for time to time. 3|Page
Nagaland. Further it is working 10 Indian states i. Bihar. Madhya Pradesh. cash book. microfinance and micro enterprises as many as 3. The organisation is registered under society registration acts XXI of 1860 and FCRA 1976.BISWA is working at all districts of Orissa. BISWA APPROACH BISWA is a community based organisation in the voluntary sector. Our BISWA started a humble community based agency and grown into a leading national level organisation. bank pass book and individual pass book. Uttar Pradesh. economic. attendance register. psychological and spiritual impact on individuals.BISWA is also exempted under section 12A and 80G -5(F) of the Indian income tax act. The goal of BISWA is to generate 1 million job opportunities by March 2011.5 lacs families has been extended credit support for entrepreneurship. help build strong cohesive communities and generate substantial productive employment opportunities by increasing availability of a wider range of services. Jharkhand and New Delhi.” BISWA VISION “Just and equitable society with greater emphasis on spirituality. Rajasthan.The groups should operate a group account preferable in their service area bank branch so as to deposit the balance amount left with the groups. BISWA MISSION “To make real and lasting social.e. The groups should maintain basic record like minute book. It is an organisation working directly with the poor and marginalised. Chhattisgarh.” 4|Page . compassion and peace of earth. Our development outreaches about 10 million people in the country. general ledger. Uttaranchal. Without intervention in social development. West Bengal.
Social development Microfinance Micro insurance Microenterprises Micromarketing Civil society network Research & innovation 1. 7. BISWA APPROACH 5|Page . SOCIAL DEVELOPMENT Our holistic organisation BISWA has entered into social development sector to empower community member educationally. 3. Our organisation is socially working in the following sector. 4. 2. socially and economically to live in harmony and peace. Diarrhoea and other water borne illness thrive where people don’t have safe water. adequate sanitation facilities. a.BISWA STRUCTURE AND PROGRAMME BISWA has extended it working in different sector for the well being of poor and downtrodden people. 1. Water & Sanitation Programme Water and sanitation means to provide safe water. 6. sanitation and hygiene. 5. Increase economic opportunities for household and communities improve school attendance especially by girls. sanitation and hygiene to the needy people. Every year 2 to 4 million people die from diarrhoea and other water related diseases. Ensuring reliable and affordable services can reduce illness and death from diarrhoea and other water borne diseases. One quarter of all childhood death is causes by unsafe water.
Dist. irrigation etc. BISWA is keeping close contact with the govt and with the help of them individual house hold latrines are provided to the needy people. To achieve above goals continuous liasioning with the panchayats.e. Deograh. Further drug distribution centre are also established. Koraput and Kalahandi have been established.2200 TSC subsidy scheme. So many Eye camps are also organised. BISWA ensures the release of subsidy from Govt. Toilet under subsidy only available to BPL families. Health care also been taken through hospital tie-up with insurance cover.integration In order to socialise and rehabilitate the leprosy cured patient Hatibadi healths home have been established. It is implementing elementary education based in the state course curriculum. Apart from this 2000 of awareness camps have been organised to reach out 100000 number of household. Individual toilets are promoted under Rs. agriculture. Education & Shelter 34 innovative schools in Sambalpur. Further it is looking after the irrigation facilities of poor villagers for cultivation. Hatibadi health home have been transformed in to a resources centre to sustain inmate and enable them to live with dignity. b. By its 150000 people has been benefited by it in Sambalpur district. It is also based on water harvesting. animal 6|Page . ground water harvesting for water autonomy. construction of 1 lacs toilet by March 2010. food preservation. Rehabilitation & Re. Further our organisation is ensuring swajaldhara. Of India. BISWA has an implementation root chart to water and sanitation mission to achieve the projected goals i. During the last quarter 636 no’s of SHG have constructed 30223 of toilets in 405 villages under our initiatives. The activities includes individual house hold latrines. extending swajaldhara . Within one month of completion of toilet construction. administration and RWSS official is required. We support the government in reaching rural household to ensure that the govt programmes are bringing the real benefit to the poor.BISWA is well known identified as the key resource centre for water and sanitation mission in western Orissa. Further 15 villages have been considered for Nirmala gram through our efforts. Health BISWA is implementing reproductive & child health programme of govt. ground water harvesting. Health camps are also been organised in different district to provide health awareness among people. block offices.
Women and children could be saved if they have access to existing treatment and prevention strategy. Despite of the fact that we known how to prevent or treat this condition. For example Jhakarbahali and Hatibadi experiment are well recognised. We are working to improve the diet of people in the developing world and ensure proper nutrition for young children. HIV/AIDS HIV/AIDS is a preventable. Many young children die from diarrhoea. It is stressing in the children to join the main stream educational institution to ensure zero drop out. Nutrition Proper nutrition improves children health and the quality of their life for years to come. Two billion people in development world suffer from diet lacking essential vitamins and mineral. A vaccine and other new prevention 7|Page . handicraft and herbal health care. Maternal. Many countries have made progress in reducing the number of new HIV infection through comprehensive prevention efforts. trafficking women. In addition to this 24 hour helpline is provided for those in need of family counselling.care. Death and disability among mother greatly effects the health well being of children. Newborn and Child Health Every year more than a half a million women die and many more suffer complication from child birth. self help and microenterprise. Nearly 10 million children die each year from related health problem. Our BISWA is working to improve access to prevention and care that can save many of these lives. Poor nutrition is an underlying cause for many of this death. pneumonia and malaria. Prevention Effort BISWA initiated in prevention in Trafficking of children and women and rehabilitation of people displaced by industrialisation. This apart BISWA have been assisting the govt of Orissa in running a Swadhar Home for destitute women in difficulties. treatable disease and millions of people are living with it. Innovation BISWA has developed a number of new approaches in the area of education. The most critical time for addressing children’s nutrition is conception through 24 month of age.
HIV weakens the immune system leading not only to AIDS but also to deadly disease such as tuberculosis. We cannot effectively fight AIDS without also fighting TB. Training need assessment BISWA & SHG 1.option are urgently needed. 6. The development of vaccine and other new prevention is critical for successfully fighting the epidemic. Sarpanch consent letter for availing subsidy 2. BISWA 3. 3. 2. especially in developing countries. Despite the proven effectiveness of existing prevention approach. Infection with HIV increases the chances of becoming infected with tuberculosis and chances that someone infected with TB will develop the active disease. INDICATORS OF DIGNIFIED LIFE 1. Good health Better hygiene Social security Sustainable livelihood Financial security Healthier environment Key player of BISWA water and sanitation programme 1. 5. they have limitation. Government Role of BISWA 1. Selection of the villages 2. SHG 2. Ensuring active involvement of the PRI member 8|Page . In fact TB is now leading cause of death among people with HIV/AIDS. 4. Selection of the potential SHG 3.
So our BISWA facilitates formation of SHG to save. BISWA APPROACH Our organisation BISWA has already extended credit worth Rs. Selection of beneficiary A SUSTAINABLE WATER SANITATION INTERVENTION 1. In consequence they are pushed to extreme poverty. 2. MICROFINANCE Microfinance is a small finance ensuring financial services at affordable interest rates for the poor and the needy at their door step. BISWA SHG earn profit from the construction work 2. The marginalised poor develop their business and manage to live a decent life.829/. poor families have enough to feed their children and send them to school. the community organiser is continues the sustained hygienic education. As per the BISWA administrative structure. At last they turn to money lender who charges 60% to 120% interest per annum or even more. ultimately leading the community to be self-reliant and live with dignity. phenyl and broom making units. So for this 90% of rural poor are deep in debt.612. Sanitation credit can be in many cases precedes/supplement or follow credit for subsidiary enterprises creation. so microfinance is a burning illustration to make viable to the poor. BISWA ensure the release of subsidy from government within one month of completion of toilet construction 2.to 31180 SHG’s with 499707 members up to September 08. Selected SHG undergo mason training 3. 92. 9|Page . resulting increasing household income and saving. 3. share and built capacity. As a result of such economic development initiatives many small business expand and become viable. This approach is very powerful in lifting communities from economic poverty. 4.3. Nearly 40% of India population lives in poverty.3. Any technical problem is mitigated through the civil engineers working in BISWA water and sanitation department. IMPACT –ECONOMIC INTERVENTION 1. As a result. Small loans for the business are provided and collected through individual member in SHG. In India we find that many are poor because of one simple reason that is lack of regular income. Subsidiary enterprises are created like the soap.
insurance for theft or fire. The percentage of poor lives insured hovers below 3%. Total SHG formed . MICROINSURANCE Micro insurance is protection of poor people and their families against specific perils like death. illness. The fact that they have little money to respond to those risks makes them even more vulnerable. death insurance.92. injury or death) our property risk (damage or loss).31180 Total Member enrolled – 499705 Total Federation Formed. According to the study the rural poor not only want insurance to be affordable. The NBFC is registered under RBI. insurance for natural disaster etc. BISWA is operating its microfinance programme at 65 districts in 11 states of India. health insurance. livestock/cattle insurance. Micro insurance require an intermediary between the customer and insurance company. Preferable this intermediary is a non government organisation (NGO) or microfinance institution.1.12. weather catastrophes etc. Poor people often live in an area prone to flooding or work in factories under very hazardous condition. but also to protect against high frequency risk such serious ill health. In India and china where organisations are estimated to serve nearly 30 million insurance clients each. such as education cost. These includes both health risk (illness.29090 Amt of Loan Disbursed – 3. disability insurance. Most remain without access to this critical financial service. accident. BISWA APPROACH 10 | P a g e .148 3.304. It is estimated that only eight million out of the world 2.BISWA has also promoted a non banking financial company (NBFC) to upscale its credit operation.829 Nu of Loan Outstanding.233 Nu of Loan Disbursed .5 billion poor are now covered by some form of micro insurance. death or disability. term life insurance. Micro insurance like regular insurance may be offered for a wide variety of risks. In principle micro insurance work like any typical insurance business. harvest failure and fire.20682 Amt of Outstanding . Micro insurance serves to cover expensive and infrequent risk such as hospitalisation. For these poor micro insurance is a form of risk management saving and credit may help people cope with minor and foreseeable financial hardship.179. That it is a group insurance that can cover thousand of customer under one contract.16.A wide variety of micro insurance product exist to address these risks including crop insurance.
1. 11 | P a g e . In manufacturing sector investment in plant & machinery does not exceed five lacs rupees in case of service sector investment in equipment does not exceed ten lacs rupee is called microenterprises. During the last few years. MICROENTERPRISES In accordance with the provision of micro small and medium enterprises development (MSMED) Act 2006. For asset with (Oriental Insurance Company) So far as on September 2008 life of 95. For health with (Oriental Health Insurance) 3. entrepreneurship and microenterprise. So that they can understand the concept of microenterprise development. Microfinance institution like our BISWA has played an active role in protecting them against such situation by providing credit support for increasing income earning opportunities. Microenterprises plays a critical role in the economic development of any economy. For life with LIC (Janashree Bima Jojana) & TATA Aig 2. Small emergencies our regular occurrences of illness and accidents.89.Poor households are especially vulnerable to risk during natural calamities. NGO have begun to play a significant role in facilitating the poor to increase their income level through micro enterprises. Objectives The principle objectives of the programme on promotion and development of microenterprises are 1. 4.339 members are also insured under ICICI Lombard and Oriental Insurance Company.257 and asset of 92. The programme is being organised to take the learning back to the community level to generate employment and fight poverty. To understand the concept of livelihood. As one of the development intervention and social security’s measure BISWA cover its client in three major micro insurance schemes.411 members have been insured under JBY (LIC) and TATA Aig health of 1. This programme is being to train the middle our higher level functionaries of different NGO. Self employment through microenterprises can play a considerable role in poverty alleviation for the millions of poor on our country.
2. BISWA APPROACH Aims at creating entrepreneurial attitude reducing income poverty and generating opportunities for self employment. To impart the knowledge among the participant about the various tools used for livelihood analysis. 4. Examine the structural characteristics of SHG that are emerging in the rural credit market. 3. To sensitize the participant on the need to analyse the business environment for proper use of the concept and tools. Besides promoting agro and forest based microenterprises three common facilities centre for the artisan have also been established. Its strategy:1. Numerous vocational training programmes including various artisans development programme have been conducted by BISWA with the joint effort of partners including the government. In order to developed local institute through promotion of SHG Skill development of artisans Formation of network among artisans Market for minority community Strengthens of small and microenterprises among minority community. 7. 5. 4. MICROMARKETING 12 | P a g e . 5. 6. business planning and feasibility analysis.2. To explore the effectiveness SHG in indentifying nurturing entrepreneurial talent among the poor and providing escorts services in micro enterprises development. delivery of credit to the needy. 3. 6. 5. BISWA is to promotion of the microenterprises development institute (BMEDI) a resource centre for development of micro enterprises. Under this programme BISWA has already optimised resource support to more than 1 lakh skilled entrepreneurs in Orissa alone. To analyse the operating system in SHG for mobilisation saving. Establish of common facility services support centre Promotion of handicraft. recovery of loan over dues and linking process with banks. To understand the relevance of marketing in promoting micro enterprise. handlooms and cottage industries. 7. identification of business ideas.
The main aim of the network is to develop capacity. Diversify in to higher value products that are linked with export global market. BISWA APPROACH Marketing of SHG product has possible with a chain of marketing outlet named Laxmipriya. About 2000 SHG’s linked with Laxmipriya outlet. 13 | P a g e . microfinance and microenterprises. 2. Achieve economies of scale through collective action for increase production and marketing. Without micromarketing the existence of microenterprise is stop ahead. process food material. good governance for pro-poor development issues and democratic accountability. and national/international market. It is not only help poor to enhance their livelihood income but also brings economic and social support in their lives. handicraft and handloom. dissemination of best practices in social sector development. dhokra. They are selling variety of items like tailor made garments. panchayatraj institution. brass and metal.Developing large scale microenterprises both in urban and rural areas and linking them with market forms to be one of the key strategies in poverty reduction programme. Individual brand by the name Laxmipriya for BISWA agro food product. leaf plate/cups etc. Odissi for BISWA household product and Shilpika for BISWA artisan’s product have been developed and registered under trade mark to promote micromarketing in local. national and international level. To achieve this goal BISWA is also planning to set up a centre for civil society studies that will work towards strengthening local democracy. Further it is promoting position relation between government and the NGO for development activities. Micromarketing is interrelated with microenterprise. information. Objectives 1. Improve the competitiveness of SHG products in the local. management abilities and good governance among the partners. 6. 3. participation. BISWA NETWORK In order to work at grass root level BISWA network has been developed. The centre is also work towards documentation. regional.
A newly formed research advisory council is guiding the BRIC to develop itself as an advanced centre of excellence on human development research innovation and extension. BISWA REASEARCH AND INNOVATIVE CENTRE The BISWA research and innovative centre (BRIC) is working to promote research. 7. 3. 5. MILLENNIUM DEVELOPMENT GOALS The millennium development goals are eight to be achieved by 2015 that respond to the world main development challenges. The eight MDGs are stated below 1. 8. The MDGs are drawn from the action and targets contained in the millennium declaration that was adopted by 189 nations and signed by 147 heads of step and government during the UN Millennium Summit in Sept 2008.7. Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS. Further 1 lakh household latrines in to be launched by the end of March 2011. 2. malaria and other diseases Ensure environmental sustainability Develop a global partnership for development BISWA APPROACH By 2011 BISWA has targeted 10 million job opportunities to the people all over India. 8. 14 | P a g e . 6. 4.Further so many innovative schools have been established to provide primary education to the children. knowledge based and innovative development issue.
Bird Eye View General Body Governing Body Manager Administrati on Secretary Chairman (Chief Functionary) 15 | P a g e .
16 | P a g e . Head Office Structure. Assistant District Coordinator. RDC Chief Manager Audit & Account Manage r HR Manager/Dep uty Manager District Manager Finance Manager Accounts Deputy Manager Manag er System Deputy Manage r Assista nt Manage r Assistant Manager District Assistant Manager District Deputy Manager Deputy Manager Assistant Manager Deputy Manag er Assista nt Manag er Area Manager Community Organiser Area Manager Community Organiser Assistant Manager Assistant Manager SINGLE WINDOW SERVICE Community Organizer The Community Organizer is the first line Person in the BISWA structure Followed by Area Coordinator.Director Operation Manager . District Coordinator. Zonal Coordinator .PRO Deputy General Manager Chief Manager Risk Managemen t Assistant General Manager Chief Manager State Manager/D eputy Manager District Chief Manager Zone Chief Manager Office Administration Chief Manag er IT Manager Internal Audit Manager.
Role of Community Organizer (CO) Community Mobilization. Promotion of Self Help Groups. Ensure “Zero” IMR/MMR among the families of the groups under him/her. Marketing linkage of the products manufactured by the SHG’s . Creating awareness among the group members as to the need of Micro Insurance and how to lodge claims. Ensuring 100% institutionalization of the child delivery among the families. The CO should ensure addressing the total need of 25 SHG’s consisting of 400 to 500 families. Identification of problem with senior citizen & information to AC/DC/ADC. Ensure installation of Individual House Hold Toilets in each house hold with water connection. Ensure to create awareness among the group members as to HIV/AIDS/Safe Sex/Small family norms/national integration/bio-fertilizer/optimal use of water/environment protection/participation in PR activities/Right to Information/Reproductive & Child Health/Iodine Salt/different schemes and program of Local Bodies/Govt. Ensure “Zero” drop out among the children of the group members. Ensure proper implementation of all the program/projects of BISWA which is being implemented in the geographical area and target group served by him/her./BISWA. HIV. Ensure to discuss individual savings and loan of each member in the weekly meetings. Conduct weekly meeting of the SHG’s. Ensuring 100% social security coverage of all the group members through different insurance scheme implemented by BISWA. monthly receipt/payment register and individual pass books. Responsibilities of CO Maintain close contact with all the house holds served by him/her. Ensure 100% literacy of all the group members and their family members. Ensure to organize health/eye camps as directed by the AC/ADC/DC. Ensuring “Zero” Child labor among the groups . Identify the people with disability. 17 | P a g e . Conduct concept meeting on Federation Promotion. mentally challenged and ensure to inform their details to the AC/ADC/DC . Each Self Help Group should consist minimum of 16 and maximum of 20 members. Ensure to maintain the Meeting/Savings/Loan ledgers of the group along with the group pass book.
Registration of the Federations . Responsibilities of the AC Attending the group meetings along with the CO and motivating the groups for Federation Promotion. Prepare and submit monthly report/MIS as per the format provided by the AC/ADC/DC/ZC/Head Office. Process Documentation of the activities happening at the group level. Area Coordinator Motivating/Guiding /Training and Follow up of the three number of Community Organizers working under him/her. Maintain the Federation Registers properly. check it and submit it to the ADC. group members. Attend the meetings when called for by AC/ADC/DC/ZC/Head Office. Provide the pre printed MIS format to the CO’s and ensure to collect the MIS on time. Interface with the PRI/other community based institutions. Ensuring 100% ON TIME LOAN COLLECTION. Assist the Asst. federation leaders . Loan Collection from the SHG’s. Ensure proper maintenance of group records. lasting and sustainable implementation of the work entrusted to the Community Organizer. To Meet all the compliances of ADC/Dc/ZC/Head Office . Ensuring to achieve the Mission/Vision/Goal/Objective of BISWA through real. Deposit of the Loan collection in the bank account of the organization and submission of the deposit slip/loan collection amount to the ADC. Conduct the Federation meetings. Local Area Planning in respect of the geographical area and target group covered by him/her. Attending the review meeting conducted by ADC/DC/ZC/Head Office as and when required. Assist the Area Coordinator to have 100% on time loan collection in respect of his/her groups. Organizing training program. District Coordinator in processing the loan application. Ensuring creation of employment opportunity among all the groups under him/her. tracking of the loan disbursed . 18 | P a g e . savings of the group savings and maintaining the quality of the groups. imparting training to the organizers . Ensuring to provide loan to all the 75 groups with the three community organizers working under him/her. Preparation of Micro Plan in the PRA method of the geographical area covered under him/her. Generate loan application as a resolution of the group based on the need of the group.
Visitors Register 2. closing.Leave register 11. Movement register 10.Letter received/sent file 19 | P a g e . Loan collection register 5. Attendance Register 3. cleanness .Telephone Register 20. Inward Mail Register 8.. provide information to the DC/ZC/Head Office when called for .Money Receipt Stock & Issue Register 19. Role of Desk Officer at ADC office Maintain the following Registers/Files at the ADC Office: 1. Review Meeting Register 12.Desk Officer at ADC Office Each ADC office will be provided with one Desk Officer Duties of the Desk Officer: The Desk Officer should ensure proper opening.Stationery Register 17. Acquaintance Register 14. Assist the ADC in conducting the meetings.Charges Register 15. Sundry/Suspense Deposit Register 6.Loan application received & disposal register 21. Petty cash register 9. Manage the office in the absence of the ADC.House Rent 16.Program Register 13. training program.Bank Account Register 18. maintenance of the office and the office furniture. Dead Stock Register 4. Outward Mail Register 7.
To maintain his office properly .Baseline survey file.All the registers relating to Federations Duties of Desk Officer at ADC Office Ensure to advise the DC/ZC/HO bank deposit made at the ADC office level. Ensure to deposit any amount of cash deposit received at the ADC office level in the bank account of the Organization. Assistant District Coordinator Ensure to achieve the Mission.Group details register/file 23. Ensuring to prepare the micro plan of the geographical area through the Community Organizers and consolidate it. To ensure guide. Ensure to remain alert and advise DC/ADC/ZC/HO immediately in case of any fraud . train. Ensure promotion of three federations . Attend meeting when called for at DC/ZC/HO level. 20 | P a g e . 24. Vision. motivate. Ensure to provide the printed copies of the Monthly return to be submitted by the CO’s in the next month. Operational of the federations. Ensure registration of the Federations . Goal and Objective of BISWA To Ensure overall development of the geographical area under his/her control. Ensure to submit the hard copy of the return submitted by the CO’s to DC office. Ensure to collect/check the monthly returns from the CO. Collect the loan applications of the groups through the Area Coordinators. Ensuring process documentation of the work done in the area under his/her control. Responsibilities of ADC Review and appraise the work done by the AC and CO. conducting the meetings and empowering the Federation Members . one each under each of the AC. empower and follow up the three Area Coordinators and Nine Community Organizers working under him/her. Conducting regular meeting of the federations at ADC office. Ensure to maintain the DCB of all the 225 SHG’s under the ADC properly.22.
He will represent BISWA in all the forums/meetings/committees at the District level. Attending the Loan Committee. He should ensure to achieve the budget of the district. He should ensure to maintain good relationship with all the NGO’s/VO’s/CBO’s/Donor Agencies operating in the district. past repayment record of the groups.s to the Head Office. He should ensure implementation of all the social development projects/micro enterprise projects of the district through the respective ADC’s. He should ensure to present the district properly at the Head Office. Ensuring on time loan collection in case of any default by the AC/Group. Ensuring maintenance of DCB and providing printed MIS format to the Community Organizers through the AC. He should ensure to review the working of all the ADC’s working under him. He should ensure to maintain excellent relationship with all the district/sub-division/block level officials. Ensuring on time loan collection by the AC. He should motivate/guide/train all the staff of the district and ensure to be one of the best leader. He should ensure registration of the organization at the DLCC and ensure attendance of all the DLCC meetings. Disburse the loans sanctioned by the loan committee after ensuring proper loan documentation. He should ensure 100% on time repayment of the loans and ensure 100% performing standard portfolio. He is responsible for achievement of the Mission/Vision/Goal/Objective of BISWA. District Coordinator The District Coordinator is responsible for the functioning of the District He is responsible for the activities of the all the staff member of the District. He is responsible for building the image of the organization at the District Level. He should ensure to work out micro plan for the over all development of the district. He should visit all the ADC office at least once in a month and ensure smooth functioning. 21 | P a g e . Preparation of the list of loan applications for presentation in the loan committee. He should ensure to submit the monthly report from all the ADC offices submitted by the CO. Ensure to process the loan applications properly by meticulous verification of the savings done by the groups. He should ensure to maintain good relationship with the police authorities in the district level. He should arrange to hold the loan committee at his office once in a week or as per requirement based on the loan applications of the district. Checking of the MIS submitted by the CO’s after due checking by the AC’s. proper maintenance of the group records.
22 | P a g e . REGISTERS MAINTAINED AS PER SINGLE WINDOW SERVICE. He should ensure balancing of all the loan accounts monthly by cross checking it with the monthly returns submitted by the CO’s. He should ensure to maintain the bank account and advise ZO/HO on a day to day basis the balance outstanding in different bank accounts. He should ensure maintenance of all the book of accounts properly at the district office level. He should ensure to submit all the reports/returns/data to Head Office/Zonal Office as required.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PARTICULARS Visitors Register Attendance Register Dead Stock Register Loan Collection Register Sundry/Suspense Deposit Register Outward Mail Register Inward Mail Register Petty Cash Register Movement Register Leave Register Review Meeting Register Program Register Acquaintance Register Charges Register House Rent Register Stationary Register Bank Account Register Money Receipt Stock & Issue Register Telephone Register Loan Application received & Disposal Register Letter Received/Sent File Group Details Register/File Base line Survey File All The Register Relating to Federations ANNEXURE I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XX XXI XXII XXIII XXIV 23 | P a g e .NO.SL.
Rules 1. 2. 2. After 9:30 a. Attendance register must contain the signature of Desk Officer who prepared it. Staff & Visitors from outside coming to the ADC/District office must sign the visitor register. 24 | P a g e . Purpose of Visit Comments Signature Rules 1.m no staff is allowed to sign the attendance register . ATTENDANCE REGISTER Annexure-II As per the printed format provided by Head Office. Staff who maintain or prepared the visitor register must signed visitor register.MIS-45 Format of Visitor Register Sl. 3.No Date of Visit Name of Officials VISIT REGISTER Annexure-I Designation Officers/Dept. Attendance register must be maintain by the Desk Officer.
2. 5. If any asset is purchase then purchase price must be recorded in asset register and Xerox copy of bill must be preserved for verification. At the close of the month attendance register must be checked by the concern authority. 4.No Date Of Purchase Description of Asset H. MIS-50 ASSET REGISTER Annexure-III SL. Amount(Rs) Name of Supplier with Address Location of Use Sign of Manager (District) Remarks Rules 1. All asset must be serially number with earmarked BISWA. 3. Desk officer will be liable for any shortage of asset. Desk officer will maintain the asset register and put his signature at the end of the month. All asset at concern office must be properly maintain.4. LOAN COLLECTION REGISTER Annexure-IV Name of DistrictName of ADC- 25 | P a g e . 6.O Approval notice No. 5. All asset at concern office must be recorded in the concern office asset register. If any staff is on leave must be disclosed in the attendance register.
2.Stationary & Others. All the outgoing Mail must be recorded chronological order.No Collection Details Other collections LIC. INWARD MAIL REGISTER Annexure-VII 26 | P a g e .no Name of SHG SHG Code Loan Code Name of Organis er Nam e Of AC Due date Field Collectio n Date MR.No Date Particular Date of Adjustment L/F Debit Amount Credit Amount Balance Amount OUTWARD MAIL REGISTER Format of Outward Mail Register Annexure-VI Person to Whom it Sent with Address Purpose Mode Of Mail Signature Sl.TATA AIG.Ass ets. Date of Mail Letter No Rules 1.N o.Sl. If any important mail is received then a copy of such mail must be maintained.Health.LPC. Total Collection Bank Deposit date Name Of Bank Amount Deposited Pri Int SUSPENSE ACCOUNT LOAN REGISTER Annexure-V SL.
N o. PETTY CASH REGISTER Annexure-VIII Sl. Date Particular Of Expenses Vr.No. If any important mail is received then a copy of such mail must be maintained. All the incoming mail must be recorded chronological order. 2. Date of Mail Letter No Person to Whom Addressed Purpose Mode Of Mail Signature Rules 1. Bills/Supporting vouchers with serial number must be kept in a file. Annexure-IX Format of Movement/Monitoring Register FIELD STAFF MOVEMENT REGISTER 27 | P a g e .Format of Inward Mail Register Sl. Amount Rules 1.R.No. Petty Cash register will be Maintained by Desk Officer on daily Basis. 2.No/M.
28 | P a g e . Leave register must be maintain staff wise. no staff will be allowed to take any leave. MIS-46 LEAVE REGISTER Annexure-X Format of Leaves Register Sl . Particulars Casual leave Earned leave Due Casual leave Earned leave Availed Balance Casual leave Earned leave Rules 1. 2. Without the approval of concern authority.Sl.No. All field staff of concern office must mention the detail of their movement in the concern movement register.No Date of Visit Name of Staff Designation Purpose of Visit Time of Departure Signature of Staff Rules 1. Authorised person must check the movement register once in a week and put his initial. 2. Any staff who take any leave must give the leave application prior to the date of leave. 3. If the field staffs do not provide the information regarding their movement it means that the staffs are idle.
2. Meeting No. Signature of all Staff members present in the Review meeting. Location - 29 | P a g e .MIS-33 REVIEW MEETING REGISTER Annexure-XI Date Name of ADC Various Points of Discussion 1. 3.
All the discussion made at review meeting must be recorded in the review meeting register. Expenses under project must be verified first by Project Officer. 30 | P a g e . Review meeting Register must be maintained by the concern head authority. 2.NoteDC and ADC will review their staff as per the Head Office Review format. 2. Implementati on Status. Every staff who attends the review meeting must sign the review meeting register and after the end concern head authority must put his initial. 3. Activiti es plan /BDP Plan Activities taken/Achievem ent. concern head authority must record the discussion in his own hand writing. 4. Immediately after the meeting. Rules regarding maintenance of Review Meeting Register 1. Rules 1. No payment made under project without proper approval of Project Officer. MIS-52 PROJECT & PROGRAM REGISTER Annexure-XII Name of Project / Progra m Area of Implementati on Name of Project / Progra m Inchar ge Date of Implementati on Date of Completi on Date of reporting monthly/Quaterly/halfyearly/Ann ualy.
Voucher should be prepared with acquaintance register. CHARGES REGISTER Annexure-XIV As per the printed format provided by Head Office.3. 2. ACQUIANTANCE REGISTER Annexure-XIII As per the printed format provided by Head Office. At time of disbursement of salary the recipient signature must be ensured in the voucher and acquaintance register. 3. At the time of payment voucher must be signed by the Dc and authorised project in charge.Simulataneously the staff signed both voucher and acquaintance register. Rules regarding maintenance of Acquaintance Register 1. The staff should take his own salary rather being taking other salary altogether. HOUSE RENT REGISTER Annexure-XV Format of House Rent Register 31 | P a g e . 5. If excess salary received should be immediately deposited in the bank. 4. Voucher and acquaintance register must be prepared by the Desk Officer should sign by the Dc and Do.
At the time of payment of house rent voucher must be prepared by the desk officer of concern office and approved by the authorised person then payment is made to landlord. All the Xerox copy of cheque for house rent must be attached with the voucher. 3.Date of Payment Name of Landlord Rent For the Month Amount Cheque No Cheque in Favour Signature of Recipient Rules 1. Landlord must sign the voucher and house rent at the time of payment. STATIONARY ISSUE REGISTER Annexure-XVI Sl No Date of Issue To whom Name of stationary Issued stationary Quantity Issued Signature of Receipient STATIONARY STOCK REGISTER Opening stocks of stationary Date Quantity Stationary Received From HO/Purchased Date Quantity Stationary Issued Date Quantity Closing Balance of Stationary Date Quantity Rules 32 | P a g e . 2.
Items wise stationary stock register is to be maintained. 4./ Dr Vr.No. 3. Desk officer is responsible to maintain the Bank Register on daily basis. Rules 1. BANK REGISTER Annexure-XVII Name of Bank Amount Remarks Sl . In particular column details of deposit must be mentioned like collection deposit. Desk officer will maintain the stationary register and put his signature at the end of the month . etc.No. 5.1. No stationary items will be purchase from outside without approval. 2. Desk officer will be liable for any shortage of stationary items. Date of Deposit Particulars Counterfoil No. excess salary deposit. 2. MONEY RECEIPT STOCK AND ISSUED REGISTER Annexure-XVIII Format of Money Receipt Stock and Issued Register Money Receipt Issue Register 33 | P a g e . Without approval of DC/ADC no stationary item should be issued.
TELEPHONE REGISTER Format of Telephone Register Annexure-XIX 34 | P a g e . 2. 3.No Date of Opening no’s Serial Rec/Issu of MR Books.No Date of Issue Name of the Staff to whom MR issued No’s of MR Books issued Serial Number of MR Book Issued Designation to Whom Issued Signature of Recipient Signature of Authorised Person Money Receipt Stock Register Sl. (Qty) Serial Number of MR Book Issued Closing no’s of MR Books. After completion and submission of such given money receipt then only another money receipt book will be issued. One money receipt book is issued to one Ac only. (Qty) Serial Number of MR Book received MR Book issued. Unused Money Receipt Book must be kept in safe custody of Desk Officer as Money Receipt is equal to Money. No money receipt book will be given without signature of recipient and approval of authorised person.Sl. (Qty) Serial Number of MR Book Rules 1. Number e (Qty) of MR Book MR Book Received From HO/DC.
Date of Incoming /Outgoing Calls Person Who Received Call Person to Whom Call is Made Incoming Calls Ph No Outgoing Calls Ph No Purpose Rules 1. FORMAT OF LOAN APPLICATION RECEIVED REGISTER Annexure-XX Sl. 2. Date of NO Applicati . Any call received or made must be recorded in the telephone register along with purpose. on Name of SHG Gr No Type of loan(General/M E) Loa n Cycl e Amou nt applie d Date of Loan committe e Date of Sanction ed Amount Sanction ed Remarks disbursed/reject ed LOAN DISBURSEMENT REGISTER Sl No Name of SHG Nos Of member Nos of Loanee Staff Present at the time of disbursement Date of sanction Amount sanctioned Purpose of loan Date of disburseme nt Amount disburse d Rate of interes t Repayme nt Period 35 | P a g e . No authorised person will allowed using the office telephone.
Annexure-XXI LETTER RECEIVED/SENT FILE All letter received and send will be kept in two separate file for future references. GROUP DETAILS REGISTER/ FILE Annexure-XXII GROUP DETAIL REGISTER Name of SHG Code Number Address Sex Total Member Date of Formation Name of Federation Name of Bank Account Number Name of Village Name of Gram Panchyat Name of Co Name of Ac Name of ADC office Name of District Office Name of President Name of Secretary Status 36 | P a g e .
Sl No Name of SHG Member Name of Husband/ Father Age APL/ BPL No s of Family Members Child (M/F) Signature of SHG Member BASE LINE SURVEY FILE Annexure-XXIII ALL THE REGISTER RELATING TO FEDERATIONS Annexure-XXIV LOAN COLLECTION REGISTER MAINTAINED BY AC: DATE:- SL NO DATE OF COLLECTIO N NAME OF SHG GROUP WITH CODE NUMBER NAME OF THE CO MR. NO. PRINCIPA L INTEREST OTHERS COLLECTIO N TOTAL COLLECTIO N DETAIL OF BANK DEPOSIT NAME OF DATE OF BANK & A/C DEPOSIT NUMBER AMOUN T 37 | P a g e .
bank deposit and utilisation sheet must be ensured by the desk officer before posting to loan collection register.Signature of ADC/DC/DO 1. LOAN DETAIL REGISTER MAINTAINED BY AC NAME OF THE GROUP WITH CODE LOAN CODE NUMBER ADDRESS Name of the President: Name of the Secretary : Name of the Community Organiser: Name of the AC: Name of ADC: Name of the bank: Total Loan Amount: Date of Disbursement: Rate of interest : Term period of loan: Monthly demand: Purposes of loan: 38 | P a g e . Proper verification of money receipt. 2. Each and every day loan collection register must be closed by the desk officer.
LEVEL Name of A.:Name of Desk Officer :Address of A.Account Number: Name of the Federation: Date of Formation: D Due Date emand Princip al Intere st Date of Collecti on Collection Princip Intere al st Over Due Princip Intere al st Detail of Insurance Cumulative Over Due Principa Intere l st Outst anding Principal Interest Will be calculated on day basis. Office :Number of Ac :Name of District :Name of District Coordinator :Name of Attendant :Number of Co :39 | P a g e .C.D. Out of total collection first deduct the interest.D.C.D. then balance will be deducted from principal Calculation of interest per day = Outstanding Principal * Rate of Interest/100*1/365 days Calculation of days for interest will be present date of collection minus last date of collection AUDIT PROGRAMME AT A.C.
:Number of Non Loanee S.:Total Loan Outstanding :Comment 40 | P a g e .G :Sl NoName of Register 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Attendance Register Movement Register Leave Register Visitor Register Review Meeting Register Asset Register Stationary Register Money Receipt Issued & Stock Register Telephone Register Inward & Outward Mail Register Letter Despatch Register Letter Received Register Group Detail Register Staff Profile Register Day Book Cash Book Cheque Register Acquaintance Register Loan Ledger Loan Collection Register General Ledger (2) Suspense Register Sundry Deposit Register House Rent Register Programme/Project Register Petty Cash Book Yes No N/ A Audit Period :Number of Loanee S.G.H.G.H.H.Date of Audit :Number of S.
keyboard covered to protect them when not in use ? 6 Do branch vehicle carry only employees and management committee member ? 7 Are the vehicle cleaned regularly and in good condition ? 8 Are major defects to vehicles or motorbikes repaired immediately ? Yes No N/A Comment Yes No N/A Comment 41 | P a g e . equipment and machines well protected and in good condition? 3 Are the branch motorbikes and keys left at the branch overnight? 4 Do all the fixed assets have a fixed asset number clearly written on them in indelible ink? 5 Are all computer.27 28 29 30 Bank Account Register Charges Register Laxmipriya Register All Federation Register BUILDING AND PREMISES 1 Is the branch easy to locate ? 2 Is the gate locked overnight with adequate security personnel on site? FIXED ASSET 1 Do the fixed assets correspond with what is listed in the branch’s printed inventory? (Computer. Printer) 2 Apart from normal wear & tear. are the furniture. printer.
9 Are repair bills for vehicles and motorbikes reasonable. is the number of staff currently appropriate ? If not. which individual require attention. taking into account the age of the machine ? STAFF DISCIPLINE. which position should be reduced or augmented ? Do you consider all staff to be well trained in performing their job function ? If no.MORALE.RESIGNATION AND TRAINING 1 List staff actually seen during this audit by title and number of individuals in that role: Title Name of Person Assistant District Coordinator Desk Officer Area Coordinator Community Organiser Number of Person 2 3 4 5 6 7 Does the total number of staff actually seen agree with Head Office record for staff for the branch ? In your opinion. and what type of training do you recommended ? Is the branch’s on-the-job training adequate ? Are all staff utilized to their full capacity ? Do the performance evaluations on file accurately reflect individuals Yes Total number of staff seen :No N/A Comment 42 | P a g e .
are there any operational weakness at this branch ? If so. what are they and how could they be addressed ? FRAUDS AND FORGERIES 1 Have there been any fraud and forgeries at the branch ? If so. as well as the branch manager.employees performance ? Do Ac report to village meeting on time ? PAY ROLL 1 Does the total monthly debit listed on master pay roll voucher agree with the monthly debited to the staff emolument account ? 8 SICK AND ANNUAL LEAVE RECORD 1 Are all staff sick and annual leave absence recorded ? 2 Does the branch maintain a leave roster ? 3 Is the staff leave roster kept up-todate ? MEDICAL COVERAGE 1 Are all staff medical claims recorded ? 2 Are sufficient detail of an employee’s family—spouse’s full name.number of children. were they reported to Head Offices? 43 | P a g e .COO at Head Office.marriage and birth certificates included with all medical claims register ? 3 Does CEO. sign all medical claims reimbursement ? OPERATIONAL WEAKNESS 1 In your opinion.
Blood Donation Camp 4. Other Activity Signature of Asst.OTHER OBSERVATION 1 Who are the new competitors in the area ? CHECK ON MAJOR BALANCE SHEET HEADING 1 Number of Loans (Clients) Last This Audit Audit Loans (Assets) Saving (Liabilities) Loan Collection 2 Operating Revenue Less : Operating Cost Operating Surplus 3 Frauds And Forgeries Provision for Bad & Doubtful Debt Amount Last Audit Amount This Audit Variance Budgeted Actual Achievement (%) Variance Loan Amount Last Audit This Audit Variance SOCIAL ACTIVITY UNDERTAKEN BY ASSISTANT DISTRICT COORDINATOR 1. Health Camp 2. District Coordinator Signature of Internal Auditor 44 | P a g e . Eye Camp 3.
PART . Office Name of District Office Name of Organiser Name of Area Coordinator Name of S.D. President : : : : : : : : : 45 | P a g e .H.I Name of Self Helf Group Group Number Sex Total Member Date of Formation Status Total Loanee Member Name of Federation Name of Bank : : : : : : : : : SHG AUDIT SHEET Date of Visit SHG Code Number Name of Village Name of Grampanchayat Name of A.G.C.
H.Account Number Detail of Group Member Sl N o 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 : Name of S. Secretary Loan Repayment Detail Savin g Per Memb er Loan Amount s Loan Outstan ding : Intere st Amou nt Name of Self Help Group Member Date of Collecti on Principa l Amount O/s Princip al MR No 46 | P a g e .G.
1 7 1 8 1 9 2 0
Total Saving,Loan & Loan Outstanding Total Collectio n
Receipt & Payment Account Amou Amou Other Receipt Side nts Payment Side nts Collection By Margin Money Deposit at Particu Amou To Total Savings BISWA lar nt By Federation Deposit at To Loan Received From BISWA BISWA Life Ins To Principal Received From Health Members By Loan Paid to Members Ins To Interest Received From Asset Members By Principal Paid to BISWA Ins To Interest Received on Internal L.P.Char Loan By Interest Paid to BISWA ge To Principal Received on Internal Stamp Loan By Internal Loan to Members Pap To Margin Money Refund from Stationa BISWA By Cash At Bank ry To Federation Dept. Refund from BISWA By Cash In Hand Total To Others By Others Date Total Receipt Total Payment Mr No Federation Deposit As Per District Office Loan Detail Margin Money Detail Ledger 47 | P a g e
Total Collection Princip Interes al t
Total Difference Principa Interes l t
REGISTER MAINTAIN AT S.H.G. LEVEL 1. Meeting Register 2. Saving Register
3. Loan Ledger
48 | P a g e
4. Receipt and Payment Book 5. Bank Pass Book 6. Individual Pass Book
PART - III
49 | P a g e
Reasons behind delinquency 1.People lost business external factors 16. Policies 50 | P a g e .Govt. A loan in arrear is a loan which payment is past due.c. Signature of Secretary 9.Overlapping of MFIs 15.Multiple loan at SHG level 13. Delinquent payment in arrear is loan payment which is past due. Repeat loan is not on time 7.Lack of good governance 12. Delinquency occurs when loan payment is one day late. measure the percentage of a loan portfolio at risk./A.Signature of President Signature of Organiser/A. Credit policies at partner level not properly defined 3.c. Partners not getting loan at the time of requirement 6.Migration 17.Poor loan appraisal 11.d.Low absorbing capacity of the client 14. It is also referred to arrear or late payment. Proper utilisation of loan 10. Capacity building support should be provided 8. Loan diversion 4. Need assessment at the grass root level is not proper 9. Lack of proper monitoring at partners level 2. Tenure of loan at institutional level 5. DELINQUENCY MANAGEMENT What is Delinquency? Signature of Internal Auditor The situation is that occurs when loan payment are past due.
Poor MIS 24. 2.Skilled and experienced staff 19. 51 | P a g e . timely data Relevant detail for level of use(BOD. Current Ratio-Probably the best known liquidity ratio is the current ratio.MGMT. Borrower selection 2. 4.Individual V/s Group lending 22.Poor investment opportunity at client level KEYS ELEMENT OF DELINQUENCY PROMOTION Understand the cause of problem before developing a solution. accurate. the quotient of current assets and current liabilities. Programme image and philosophy METHODOLOGY 1.Dependency on one source 21.Conceptual clarity on MF 23. 3.STAFF) Relevant and timely dissemination Cost effective 10.18.HR Policies 25. Loan size terms 3.RATIO ANALYSIS 1. BN 1. Current assets and current liabilities are commonly defined as falling due within a year from the balance sheet date. Prevention is better than cure 2. Incentives INFORMATION SYSTEM 1. Reliable.Consumption loan is more 20.
Purchased Fund Ratio-The purchased fund ratio measures the amount of commercial short-term funding relation to the total balance sheet volume. Total Deposit Ratio= Total Customer Deposit/Total Assets 4. Core Deposit Ratio-As the last of many more conceivable ratios on the liability side.One of more sophisticated liquidity ratios commonly tracked by financial institutions is the net non-core funding dependence. It is defined as: Purchased Fund Ratio= (Short term Borrowing + Purchased Fund)/Total Assets 5. regardless of seasonal swings Core Deposit Ratio= Core Deposit/Total Assets 6. Net Non-Core Funding Dependency. Capacity Ratio-The cash position indicators compare vault cash and demand deposit at other banks including the central bank to the total asset of the institution. we will introduce a refinement to the total deposit ratio above. Net Non-Core Funding Dependency= (Non Core Liabilities – Short Term Investment)/Net Loans 52 | P a g e . Loan to Deposit Ratio-Many bank and bank analyst monitor loan to deposit ratio as a general measure of liquidity: Loan Deposit Ratio= Net Loans/Total Deposits 7. Total Deposit Ratio-Such a large scale of retail deposits would be evidenced by high total deposit ratio. The core deposit ratio eliminates the volatile portion of the deposit mass and emphasize the stable which the institution can rely on.Current Ratio= Current Asset/Current Liabilities 2. Capacity Ratio= Net Loans/Total Assets 3.
from the supply side. Regions under Divisions. for example. For MFIs however.8. Savings mobilization takes place as a source of funding for the Revolving Loan Fund (RLF). Board members are not shareholders. surprisingly there is rarely mention of a ratio that compares cash assets to customer deposits. this is often the key question: how much cash should not hold against saving deposits? Many MFI such as Rural Bank of Panabo (RBP) in the Philppines explicitly track this kind of reserve ratio and define liquidity rules on this basis. Reserve Ratio-Although there is no shortage of different liquidity indicator in the commercial banking literate. decentralized process of service delivery technology. Again. which creates opportunities for fraud. distinct characteristics of MFIs in Bangladesh are not.for profit organizations. Though the average individual loan size in the MCP is small. the number of transactions is high. A basic reserve ratio could be defined as: Reserve Ratio= Cash Assets/Customer Deposits Internal Control System to Minimize Fraud and Forgery Designing Internal Control System For Mfis 1. Social collateral replaces material collateral through an intangible micro-network of mutual accountabilities. mandates a 20 % cash reserves on all customer deposits.free small loans to them with the objective of creating selfemployment for poverty alleviation. Although they have a Central Head Office. the MCP is operated at the grass root level through Branches. MFIs through microcredit programs (MCPs) mobilize poor and distressed target people and extend collateral. On the demand side the MFIs offer collateral-free loans. A distinct characteristic of MFIs is its informal. RBP. At the field level. they do not have financial stakes. the amount of cash handling is also high. The most important asset in MFIs is the portfolio. and the liability is the savings deposit taken from the poor MCP members. INTRODUCTION Microfinance Institutions (MFIs) are informal financial service providers and are not under any regulatory framework like the formal sector. MFIs can partially 53 | P a g e . For better administration Branches are organized under Regions and if necessary.
Broadly. the dormant attribute is “internal control” to minimize risk management. program performance and compliance of the code of norms/conducts by competent management. local network as local value guardian for ensuring “standard”.0 SELF-REGULATION “The basic concept of self-regulation is the “internal good governance” on the basis of: shared values and principles. Strategic monitoring of financial performance standards. 2. Specific requirements are: a) b) c) d) e) f) g) h) A strong and capable board of directors that establishes sound program interventions. It will keep the MFIs on the track to achieve a sustainable MFI corporate culture.”1 Selfregulation is expected to be ingrained within the MFIs integrated management system to ensure sound and organized growth on a sustainable basis. Developing standard accounting system that is transparent and acceptable universally An intensive and extensive internal audit function to confirm that the approved policies are followed and procedures are effective. Development of effective mechanism for saver’s protection Efficient management and an effective Management Information System (MIS). Governance and Accountability are essential elements for self. Development of effective financial and operational performance standard. 1 54 | P a g e . shared standards among MFIs.compensate for structural shortcomings by practicing self regulation through effective internal control system linked to sound risk management strategies. High quality external auditing by competent auditors experienced in microcredit as an objective check on internal control systems to protect against fraud and mismanagement. financial and risk management policies and ensures management accountability for effectively implementing these policies. And.regulated integrated management system.
improves client service. reviewed. Risk management is the process of assessment of relative risk and ensuring that controls are present and effective. the right control in the right place and commensurate to the risk They must function consistently as planned throughout the period (that is. loan portfolio. the cost of implementing the control should not exceed the benefits derived).0 INTERNAL CONTROL It is a set of integrated methods and procedures translated into regular and periodic activities that preserves safety of asset (e. (I) systems of accountability along with prevention of errors and irregularities. 2. ensures reliability of financial information and staff adherence to management policies and guidelines.g. It ensures. 55 | P a g e . Governance Risk Management Risk: a) Operating Risk. It must satisfy three basic criteria: They must be appropriate (that is. To minimize the risk factor MFIs should link internal control to risk management. and (ii) systems of detecting errors and irregularities. Risk management of MFIs has different dimensions as follows: 1. 4. be complied with carefully by all employees involved and not bypassed when key personnel are away or the workload is heavy). cash and other physical assets etc). b) Financial Risk: (i) Portfolio Risk.0 RISK MANAGEMENT FOR MFIs Risk is intrinsic in MFIs mode of operation for providing financial services.3. Management must ensure that a proper internal control structure is instituted. It covers prevention of potential problems and the early detection of actual problems when they occur. and updated to keep it effective. They must be cost effective (that is.
(ii) (iii) Liquidity Risk and Interest Risk Risk Manageme nt Governance Risk Management Risk Operating Risk Financial Risk Portfolio Risk Interest Risk Liquidity Risk 4.1 Governance Risk 56 | P a g e .
2. 57 | P a g e . can help to develop a good system of internal control to mitigate management risk of MFIs. so that results can be related to individuals. in competent. Well defined. Clear and transparent operational guidelines and policies. and controlling) directed at an MFI's resources (human. self-reliant and sustainable organization. internal control to management risks refers to both administrative control and accounting control. Appropriate recruitment and rewardpunishment systems are of utmost importance in these regards. organizing. such as: organograms.Governance is a process by which Board Members. through management. sincerity with good reputation should be the basis for selection of board members. Responsibility means tracking actions as far down in the organization as is feasible.2 Management Risk Management plays a key role behind the success or failure of MFIs through a set of activities (including planning and decision making. functions of different sections. and reliability. clear procedures and documentation of board meetings are essential. responsibility. inefficiency. It means having fieldworkers/supervisors sign MIS report. 4. accountant’s initial cash book/general ledger. staff responsibilities. leading.. The entire operational system deserves surveillance by management to see if it is working as prescribed and if changes are warranted.1 Operating Risk Operating risk refers to the risk of losses or unexpected expenses associated with fraud. physical. and information) for a cost-effective. In its broadest sense. Management risk can be broadly divided into two categories as follows: 4. guide an MFI in fulfilling its corporate mission while protecting the MFI’s assets. experience. errors and unforeseen contingencies. financial. As board members do not have a material stake. and field-workers sign savings/loan pass books and group attendance-registers etc. accounts-keeping formats etc. interests. and duties commensurate with their abilities. commitment. Steps for reduction of operating risks are: Reliable Personnel with Clear Responsibilities: Individuals must be given authority.
To ensure accountability. Documents should also be kept in lockers. Loan amount being shared between borrower and staff. guards. DC must confirm the outstanding balance. 58 | P a g e . New loan granted to hide arrears. Where most frauds and forgeries occur & its remedy: 1.Representative from Head Office must present during disbursement of loan.ADC are advised to maintain properly the group detail register. 3.ADC are advised to make critical appraisal of loan application. Physical Safeguards: Access to resources and records is to be limited to authorized individuals who are accountable for their custody or use. New loan taken to pay other loan. 2.Before Sitting of loan committee. Loan amount collected from groups for personal use with the intent to pay them later. Create false group and misappropriate by employee. POs should take special precaution for preserving cash in vaults.Once collection is not made during any month from any loanee group then ADC & AC are advised to visit the same group for collection. Losses of cash. and records are minimized by safes. 5. 4. 6. locks. and restricted access to assets. Rotation of Duties: To avoid risk key people handling cash or inventories should have job rotations. the resources are to be periodically compared with the recorded amounts. if there any in DC office & Head Office. inventories. Loan distributed by proxy-ADC must present at time of loan disbursement to avoid proxy.Communication : Regular co-ordination meetings to be held frequently at the central as well as at the field level with a view to having a clear analysis of the problems that arise in the course of implementation of the programs.
2. and portfolio risk management guards against potential losses resulting from the poor quality of the organization’s loan portfolio assets. 4.7. Program placement 2. Sound Governance 8. DC & Staff from Head Office are advised to make visit to all groups.2. 8. Regular Internal supervision (degree of supervision on both field workers and samiti member borrowers). 7. Generally.2 Interest Rate Risk 59 | P a g e . Skill of field workers (including Branch managers) 5. Accuracy of MIS report 10. Capability of Chief Executive 9.2 Financial Risk Asset and liability management refers to the financial risk management of an MFI.2. any action to increase the expected returns of an MFI will also increase its risk structure. Sanity management 3. Multiple loans to the Individual group members. The major categories of asset and liability management risk that an MFI needs to consider are: 4.Offsite monitoring tools for analyzing MIS reports with particular focus on loan portfolio quality. The following factors are directly related to maintaining the desired quality of loan portfolio.1 Portfolio Risk The primary revenue-earning asset of a micro credit organization is its portfolio. 1.2. Loan disbursement and recovery system 4. 6.ADC are advised to make critical analysis of loan application.2. Thefts of SHG saving by staff. Incentive base for management staff and employees. 4.ADC.
selecting borrowers. It must be monitored and adapted to fit the circumstances. It is not merely producing and distributing policy manuals and forms. An MFI is in a liquid position if it is able to meet its current obligations as they become due. if demands for funds are readily met while balancing the need to earn revenue. bill payments. mobilizing savings. The separation of tasks not 60 | P a g e . 5. not an end in itself. liquidity management includes the management of not only cash but also other short term assets and short term liabilities. recycling loan. and so on). Internal control is geared to the achievement of objectives in one or more separate but overlapping categories.0 TOOLS FOR EFFECTIVE INTERNAL CONTROL Internal control is a process. Microfinance management may be defined as “an operational system of microfinance services that starts from organizing groups. It is a means to an end. processing. In fact.3 Liquidity Risk Liquidity management and cash flow management are often used interchangeably. recording.In designing effective internal control system for MFIs the following criteria needs attention: 5. and / or have relatively long term loans (of greater than one year).Interest rate risk arises when interest rates on assets and interest rates on liabilities (which fund the assets) are mismatched. In MFIs assets are frequently short-term (loans. This can be avoided through a budgetary practice.1 Segregation of Duties Key duties and responsibilities in authorizing. 4. This results in a funds gap. and debt repayment. Interest rate risk is primarily of concern to MFIs that mobilize deposits. Internal control systems are fundamental to the success and survival of MFIs. preventing defaulters and defalcation as well keeping systematic records and reports towards the end of poverty alleviation ”. it is monitoring people at every level of the organization. It is a moving target. Internal control is affected by people. and reviewing transactions and events should be separated among individuals. while liabilities are frequently long term (concessional loans). disbursing microcredit. Gap positions will have to be managed effectively to maintain (or achieve) financial sustainability. collecting repayment. term deposits.
For example. persons who authorize transactions should not have control over the related asset. The accountant/store clerk. and the cashier should not have access to ledger accounts such as the individual records of micro-credit clientele. Independent performance of various phases will help ensure control over errors.g. should keep inventory records. a person with custody of assets should not have access to programming or any input records. The entire accounting function should be separated from operating departments so that objective. not by the cashier or field workers. not store keeper. loan outstanding) should be written off as uncorrectable. Similarly. All transactions will require approval and authorization by a responsible official. Nor should an individual who handles cash receipts have the authority to indicate which accounts receivable (e. In a computerized system. This extremely important and often neglected element can be subdivided into four parts: Separation of operational responsibility from record keeping responsibility. The limits of 61 | P a g e . but also limits the chances for fraud that would require the collusion of two or more persons. For instance.only helps ensure accurate compilation of data. cash and other ledgers should be kept by accountant. Separation of the authorization of transactions from the custody of related assets: To the extent feasible. Separation of the custody of assets from accounting: This practice reduces temptation and fraud. For example. 5. an individual who handles programming or input records should not have access to tempting assets. the bookkeeper should not handle cash. Separation of duties within the accounting function: An employee should not be able to record a transaction from its origin to its ultimate posting in a ledger.2 Authorization and Execution of Transactions and Events Transactions and significant events are to be authorized and executed only by persons acting within the scope of their authority. independent records may be kept either by other operating people or by clerks. the same individual should not authorize the payment of a supplier’s invoice and also sign the check in payment of the bill.
etc). rate of service charge. savings instruments. To this end pre-numbered source documents and registers should be in practice to ensure recording. controls should fulfill their intended purpose in actual application. and tamper-proof recording is the aim. Transactions and significant events are to be promptly recorded and properly classified e. Another example is the need for approval from the board of directors/executive committee regarding expenditures for capital assets in excess of limits specified in the budget. To be effective. 5. daily/travel allowance. rather than the branch manager.4 Monitoring and Supervision Competent supervision is to be provided to ensure that internal control objectives are achieved. A set of controls designed to operate in a manual environment may not be effective in an automated environment. 62 | P a g e . the controls selected should provide the coverage they are supposed to provide and operate when intended. For example. interest free loan given from disaster management fund). General authorization must be given in written form. Immediate.e. and so forth.g. 5.3 Documentation The internal control structure and all transactions and significant events are to be clearly documented. controls should be designed to derive maximum benefit with minimum effort. As for efficiency. It often sets definite limits on loan ceiling. There may also be complete prohibitions (against taking extra fees or any facility from microcredit borrowers. Authorization can be either general or specific. the chief executive. loan proposals along with group resolutions and savings-loan collection-sheet to journals and ledgers. Controls tested for effectiveness and efficiency should be those in actual operations and should be evaluated over time to ensure that they are continually used.delegation of approving authority and financial power limits should be clearly defined and who approves what should also be defined specifically. Specific authorization usually means that a superior manager must permit (typically in writing) any particular deviations from the limits set by general authorization. complete. may have to approve any distress loan (i. Therefore. and the documentation is to be readily available for examination.
MIS is one of the most critical but least understood elements of a successful MFI. A good information system can transform an organization. field staff. executive management. In the supervision of MCP’s aspects of considerations are: • • • • • • • • • • Use of loan outside the proposed IGA/ unproductive activity Hidden Overdue Violation of Traditional Micro Credit Culture False Vouching False Disbursement Fictitious Cash in Hand Social motivation to recover the default loan Find out the causes of defalcation of loan SWOT analysis for default loan recovery Insufficient MIS. and ineffective operations. Good information provided in a useful form on a timely basis empowers all the stakeholders in the institution.5 Management Information System (MIS) and Accounting Information System (AIS) The starting point in developing an MIS is to determine what information the MFI needs to perform well. inefficient. responsive action on all findings of irregular. branch managers. the credit department. the accounting department. Aspects that need to be considered are: • • • • • Adequate MIS formats Correct and proper use of the MIS formats Hierarchy in Reporting System Ageing of delinquent loan Double Entry and Accrual Accounting System 63 | P a g e . The AIS is one of the two parts of an MFI’s MIS. investors. regulators. board members.to participate meaningfully in the institution. clients.donors. AIS and poor record keeping 5. That means defining the needs of different users of information. other institutions. and all other staff. uneconomical.Operations staff / managers are to continually monitor their savings and loan operations through field visits and take prompt.
The objectives of this letter are : To identify any weaknesses in the internal control. To suggest adequate accounting control To suggest improvements in existing internal controls. as these will vary a great deal between MFI’s and even through time for the same entities. • Ensuring adherence to laws.6 Create Debt Management Reserve (DMR) Proper recording of default loan recovered Internal audit Internal auditing is an independent appraisal function established within MFI’s which examines and evaluates its activities as a service to the organization. regulations. and 5. This is at times called the“Weakness Letter”. and management directives.7 The Management Letter External Auditing gives scope to evaluate internal controls system of MFIs which is reported through the Management Letter. Responsibilities might include: • Evaluating the effectiveness of internal controls • Ensuring the reliability and integrity of financial management system of record keeping and reporting • Ensuring safeguard of assets • Promoting orderly. but frequently neglected for financial reasons. economical.• • 5. and effective operations and quality products and services consistent with the organization's mission. It is unwise to be dogmatic about the detailed responsibilities of internal auditors. 6. Internal auditing is essential for ensuring the operation and appropriateness of controls (therefore essential for good management).0 STEPS FOR DESIGNING INTERNAL CONTROL SYSTEM 64 | P a g e . efficient.
ADC will verify the document and process the loan with Community Organizers at the SHG and send to District Coordinator DC.Once an MFI’s management identifies its sources of risk. for example. Step 1: Define and describe the objective of the internal control system in the operative context of the MFI by using the performance standards benchmark. Step 2: Describe the system: list services offered. Loan document will be generated by Community Organizer at SHG Level by SHG resolution. include a flow chart of operations. AC will submit the Resolution to the Assistant District Coordinator (ADC). 2. 3. detail organizational structure and procedures. collections. Step 4: Create an annual work plan to implement the internal control system delegating assignments among staff. Step 3: Determine tasks that need crosschecks or verifications to prevent error or fraud. and specify staff positions and responsibilities. 4. Step 5: Organize the internal control system so that each step is linked with some detailed control documents that are cross-checked by an assigned person or team. 65 | P a g e . There are five basic steps in the design of an internal control system. and separate them. LOAN DISBURSEMENT PROCESS 1. it can design measures for an effective system of internal controls. Particular attention should be paid to the guidelines for inspection and internal auditing. provide a chart of accounts. The Resolution will be sent to the Area Coordinator (AC) by the Organizers. payments and recording of such transactions.
The loan committee will send only the recommendation to Head Office for disbursement. My Suggestion-Before sending the document to head office each document should be verified . 9. proofs. After sorting the completed documents DC will convey the District loan committee which should always be held on only Saturdays. recommended and signed by the loan committee as per the findings. grade of the organization or if any special case is there for consideration in favour or against the SHG. 6. the documents will be sent to the Chairman at Head Office for consideration and approval. Manager – Internal Audit iv. Asst. The Loan Cheque will be issued from HO in the name of ADC only. DC will verify the documents and the documents which are complete in all respect should only be accepted and incomplete one should be sent back to ADC for completion. The documents which are incomplete in any form should never be sent by ADC to District Coordinator (DC) to put up before district loan committee (DLC) for consideration. District Loan Committee (DLC) should always be consist of i. Chief Manager – Risk Management iii. In case of the loan application asking loan above Rs. KYC. General Manager 66 | P a g e . At the Head Office Level. Representative of Chief Manager – Risk Management What will happen if District coordinator is either absent for any reason or not appointed? 8. Representative of Zonal Office – ZC/Manager Administration iv. 7. Asst. In case of loan up to Rupees one lakh for one SHG. 11. a representative of the District Loan Committee (DLC) has to remain present along with ADC and CO and finally endorse the process. Representative of Manager – Internal Audit v.5.A Loan Committee is there known as Head office loan committee (HOLC) consists of i. Deputy General Manager ii. 12. At the time of disbursement of loan to SHG. District Coordinator ii. Incomplete loan documents should never come to HOLC for approval. District Coordinator iii. it will be sanctioned by the loan committee at district level. 10.100000/-( Rupees One lakh) only.
The original documents will return to DC office. Therefore HOLC should consist of • • • • • Deputy General Manager Chief Manager – Risk Management Manager – Internal Audit Asst. My Suggestion:. District Coordinator vii. Asst.After the loan sanctioned it is put up for approval for Chairman’s approval.PM to 4. provided by IT Department or generated by Computer. 14. ZC and ADC from DLC should not come to head office as HOLC. 13.30 PM for sanctioning of loan more than Rs.100000/-.After the approval by Chairman the document with approval letter will go to accounts for the cheque in the name of ADC.All the Loan Documents will be the custody of District Coordinator 15.The Document will be computerized as per the Serial No.Sanction Register to be maintained by the District Coordinator 16. General Manager Chief Manager -Insurance This committee should meet every day at 3. Insurance papers will be sent to Insurance Department along with the required bank draft. District Coordinator vi. 67 | P a g e . On the check list of loan document there will be mention of the transactions at various points and will be retained at concern tables and departments. Zonal Manager/ – Manager Administration My suggestion: . Whoever is receiving a document will have to give the receipt of same.As we have clear recommendation comes with the endorsement from the District Loan Committee (DLC) the field members such as DC.30.v.
2. 68 | P a g e . After verifying age . Voter ID card. Whether loanee member separately pay their insurance amount or take extra loan for insurance or premium amount will be deducted from the loan amount.find out the premium amount as per the present age of loanee member. Verify the date of meeting to avail loan.Loan Document check list • • • • • • • • • • • • • Loan Application BISWA form no 1 BISWA form no 2 Resolution from SHGs Detail Business Plan Individual loan requirement SHG grading sheet KYC – Individual Photo of each member. Proposed Loan amount. Photocopy of Savings passbook Photo copy of previous loan closing detail Insurance forms and detail documents as per the requirement Federation transaction detail Recommendation sheet (for official use) Procedure followed at the verification of loan document. Verify the Recent passport size photographs of loanee member. • • • • Verify the Voter ID/KYC and find out the age of the loanee member on the date of loan application. • Verify the resolution copy generated from SHG group 1.
Saving & other charges. Whether the resolution is properly made by the group by giving details of Proposed loan. Verify the insurance premium amount according to age. 7. 6. 4. Details of resolution for Internal lending. Insurance. Compare the signature of each loanee member in resolution copy and in the loan documents.3. 5. • Verify the age of the member as per the Voter ID or KYC. BUDGETS AND BUDGETARY CONTROL 69 | P a g e . Verify the Saving amount.
How to achieve the budget? 70 | P a g e . What to do? b. When to do? c. C. a. The budgets are divided into various responsibility centres(ADC/AC wise). The budgeted figure and actual figure are recorded. Planning is the basic managerial function. D. The objects are set by preparing budgets. It helps in determining the course of action followed for achieving organisational goal. How to do? 2. Budgetary control involves the following: A. B. It is decision in advance. Actual figure are recorded. Control is the process of checking whether the plan are being effect performed or not and then taking corrective measures for the failure.1.
b. Elimination of wastes and increasing in profitability.a. c. Allocation of budgets ADC & AC wise: 1. Motivation. Proper communication. Existing group identification & solve their problems. To coordinate the activities of various departments. To operate various cost centre and departments with efficiency and economy. Fixation of responsibility of various individuals of the organisation. d. 71 | P a g e . Delegation of authority. Budgets education. Tools for achieving budgets targets: Classifying the objectives.
Daily report to Head office. 4. ANNUAL BUDGET Bharat Integrated Social Welfare Agency (BISWA) 72 | P a g e . Proper education to the down lines. Have discussion with down line staff at least once in a week. Motivation to all employees. 8. Proper maintenance of records. Month wise plan & process for loan disbursement to existing group. Collection day and month wise has to be maintained.2. Create new groups as per budgets. 3. 5. 9. 6. 7.
Name of DistrictSl No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Up To Mar09 APR MAY JUN JUL Particulars No of SHGs No of Members Average Members per SHG No Of loan Disbursement Amount Disbursement Average loan size No of loan O/S Amount O/S Average loan O/S Interest Income 20% Interest Spread at 6 % Expenditure Assets Expenditure Training/Capacity building Internal Audit TARGET ACHIEVE TARGET ACHIEVE TARGET ACHIEVE TARGET ACHIEVE 73 | P a g e .
4.17 18 19 20 21 22 15 ZO Expenses HO Expenses Management Expenses Fund Mobilization Provision . 2. NO 1. PARTICULARS PREVIOU S MONTH TARGET PREVIOUS MONTH ACHIEVEME NT TARGET FOR THE NEXT MONTH DATEPLACE- Self-help group SHG visited by ADC No’s Of SHG having Bank A/C No’s Of SHG conducting 74 | P a g e .5% on loan O/S Total Expenses Net profit - REVIEW MEETINGS MINUTES FOR THE MONTHNAME OF DISTRICTPLACENAME OF ADCMICRO FINANCE SL. 3.
No’s of loan sanctioned. 12. 14. 9. No’s Of loan documents Generated Amount of loan documents generated.5. 10. No’s Of Loanee SHG RLF Advance received from April to march. 15. No’s Of SHG for whom gradation is done. Amount of loan Sanctioned. 7. 8. 6. 13. No’s Of Group meetings No’s Of SHG completed 6 Months & eligible for loan. Due For The Month 75 | P a g e . Saving No’s Of SHG maintaining required Registers. 11.
Overdue For The Month Collection For The Month Overdue Collection For The Month *Note* Point To Discuss No of KYC in respect of new groups obtained Groups detail register maintain with signature of groups member (Yes/No) Loan detail register maintain by AC(Yes/No) Loan Collection register maintain by AC(Yes/No) SHG broken/Left out during last month No of SHG whose balance agree Remarks 76 | P a g e .
with ADC/DC office records No of SHG whose balance disagree with ADC/DC office records Step taken for reconciliation SHG code is allotted to all groups Is there any discrepancies in SHG Code Business Plan For The Next Month Name of Staff Plac e No Of Existin g SHG’s Target For Formati on Eligib le For Loan Targ et For Loan No Of Loan ee SHG’ s Loan Outst andin g Recov ery Social Activit ies DOAttenda nt AC-1 77 | P a g e .
Name of Employe e Date of joinin g Call For Explanation Date Reaso n Suspension Dismissed Re-Instate Transfer Date Reaso n Date Reaso n Date Reaso n Date Reason ADC DO AC-1 78 | P a g e .CO-1 CO-2 CO-3 CO-4 AC-2 CO-1 CO-2 CO-3 CO-4 AC-3 CO-1 CO-2 CO-3 CO-4 HUMAN RESOURCE DEPT.
CO-1 CO-2 CO-3 Co-4 AC-2 CO-1 CO-2 CO-3 Co-4 AC-3 CO-1 CO-2 CO-3 Co-4 *Note* • Staff problem • Suggestion • Recommendation Office Administration Point To Discuss Remarks Salary Status Acquaintance Register Submission House Rent Detail Office Asset Status 79 | P a g e .
Detail of Staff Leave Motorcycle on Loan Office Vehicle Status Stationary Status Staff Loan Status Cycle Staff Loan Status Sewing Machine Staff Loan Status Insurance Claim Deposited in HO Claim Settled Claim Pending At HO Claim Pending At DC/ADC Renewal of Policy Date Nos of Doc Renewed No of Docume nt Amt No of Docume nt Amt No of Docume nt Amt No of Docume nt Amt Project Point To Discuss Remarks 80 | P a g e .
Remarks Sanitation Selection of Village with Address Selection of SHG Sarpanch Consent Received or Not Availing Microfinance Name Amt of of SHG Loan No of Latrine Fixed No of Latrine Achieved Laxmipriya Status 81 | P a g e .RDC Point To Discuss Documentation/Success story Base Line Survey Any other survey as per the need of RDC Dept.
Fresh indent Sl. Date of indent Name of the Item Quantity Amount. Signature Note * This format is meant for review purpose. Information & Technology 82 | P a g e .No.Rs.Opening Stock In (Rs) Amt of Stock Recd In (Rs) Amt of Stock Issued In (Rs) Closing Balance Outstanding Balance Amt of Stock In (Rs) Opening O/s Amt Closing Balance Paid O/s Balance Point to be discussed.
Point To Discuss Whether the computer is functioning properly? Whether the software system is operated? Whether Mail ID is allotted? Whether Internet Connection is available? Whether report of all SHG’s is provided to IT as per format for allotment of code numbers? Any support needed: New cartridge/stabilizer Remarks Health Points To Discuss Remarks CBD Centre Health Camp Blood Donation Camp Eye Camp Risk Department 83 | P a g e .
Point To Discuss Fraud Staff Non Performing Staff High Risk Groups Over Due Groups Any Other Discussion Remarks KAS FOUNDATION DETAILS AC & ADC WISE Name of AC Total Nos of Group Alloted Nos of Group Identified Nos of Group Not Identified Nos of Group Converted Into BISWA Nos of Group Eligible For Loan Total Outstanding AC Wise Total Collection For the Month AC Wise AC 1 AC 2 AC 3 Total/ ADC Discussion 84 | P a g e .
Furniture & fixture etc. transfer and have some exchange rate is called an Asset. For example. Equity: It refers to total claim against the business. touch. Expenses: That part of capital assets which is already used in the business and utility is already destroyed is called Expenses.Cash. outsider clam-Liability. It may be owner claim. Expenditure: Any capital assets purchase during one accounting period is called Expenditure. 85 | P a g e . Investment. Plant & Machinery.ACCOUNTING TRAINING PROGRAMME Accounting Concept Asset: (Property) anything of use to future operations of the business and belongs to the business in other words those things which can be seen. Land & building.Capital.
Cash Payment) -Inflow and outflow of goods. Gain: By investing capital.Direct Expenses -Indirect Expense Direct Expenses: All manufacturing expenses which are part of cost of production are called Direct Expenses. Indirect Expenses are again divided into four categories . Revenue Expenses: Those expenses which are recurring in nature or expenses which are regular in nature are called Revenue Expenses.Capital Expenses .Cash received.Sales. labour to particular business and the return which a business expects is called Gain. Indirect Expenses: Those expenses which are indirectly related to the product or services. It Includes -Economic activity (Purchases.Office Expenses -Selling & Distribution Expenses -Financial Expenses -Repair & Depreciation Transaction: Any exchange (dealing) of goods and services for cash or on credit by the business. It may starts from 1st Jan to 31st Dec or 1st Apr to 31st Mar or Diwali to Diwali etc. Capital Expenses: Those expenses which are non-recurring in nature or expenses which are not regular in nature are called Capital Expenses. anything which is realized in term of cash is called Income.Loss: If realisable value of an asset is Zero is called Loss. Accounting Period: An accounting period is consists of twelve month. -Transfer value between two parties. CLASSIFICATION OF ACCOUNT 86 | P a g e . Expenses are divided into category two parts . Revenue Expenses are again divided into category two parts.Revenue Expenses. Income: By sale of services.
Rules of Personal Account -“Dr” the Receiver -“Cr” the Giver Real Account: Accounts relates to property.Accounts are of two types -Personal Account -Impersonal Account. transfer and have some exchange value. *Note* : Date . seen. incomes. profit etc. Safiq Ahmed brought in the business as his capital. 2-Ascertaind what is the nature of accounts involved and accordingly applies the principle of double entry system. artificial persons and representative persons. touch and transfer like expenses. 87 | P a g e . assets of a business in other words those which can be touch. 4-Record the ledger folio number and voucher number. Particular. losses. TRANSACTION FOR PASSING JOURNAL ENTRY 1. gains. Rules of Nominal Account-“Dr” All expenses & losses -“Cr” All gains & incomes JOURNAL Precisely it is the books of prime entry which means Day Book. 3-Record the date of transaction. Personal Account: It relates to a natural persons. STEPS OF JOUNALISING 1-Ascertain what accounts are involved in a transaction. Rules of Real Account-“Dr” What comes in? -“Cr” What goes out Nominal Account: Those thing which cannot be seen. Folio Number must be recorded with evidence.
3.2.Returned goods to Zahir Abbas being inferior in quality. Sold goods for cash 9. 13. 6.Received from Iqbal Kasim cash on account. 15. 10. Bought goods from Zahir Abbas. 4. Paid Imran Khan for purchase of filing cabinet. 18. 14. 19. Sold goods to Majid Khan. 17. Bought filing cabinet for office use from Imran Khan. Made cash purchases of goods. 8. 16.Paid to Sadiq Mohammad on account.Majid Khan pays us on account cash. 88 | P a g e . Purchased goods from Sadiq Ahmed.Zahir Abbas received from us cash.Iqbal Kasim buys goods from us. 11.Shafiq Ahmed drew from office for personal use. 20. Returned goods to Sadiq Mohammad being not equal to sample. 5.Paid for wages.Made cash purchase of goods.Paid for office cleaning. 7.Majid Khan return us goods. 12.
Bought new furniture for office use.Bought of furniture.Received cash from Kanti Lal 27. 26.Bought of Shadi Lal goods. 32. 28.Bought of goods. 23.Sold goods to Ganpat Bai. 22.Paid for office rent. 30.Received rent for a portion of the shop sublet.Sold good to Binod. 31. 34.Paid rent for godown. 39.Goods sold to Bharat stores. 38. 89 | P a g e .Bought goods from General Trading Co. 37.Paid for insurance premium 25.Paid for office salaries.Rent due to landlord.Cash sales. 33.Goods returned to Shadi Lal. 29. 35. 24.Purchased one type writer 36.Paid for stationary.21.
LEDGER 90 | P a g e .Goods sold to Swatantra stores. 49. 53.A on cost of machinery.Gave away for charitable purpose goods & cash. 54. 43.Paid for advertisement.Motilal starts business with cash & building. 44. 56. 50. 55. 51.Incurred a loan from Bank.Paid for purchase of land & building. 48. 46. 45.Paid for sundry expenses.Received cheque of SBI from Ram Nath.Paid for electricity bill.Purchased goods from Raj trader.Goods lost by fire.Salary Outstanding for the month of December 2007.Received interest from investment. 42. 52. 47.Sold goods to Ram Nath.Received from Swatantra stores. 41.Issued cheque of SBI in favour of Madan Lal for purchase of goods.40.Provides depreciation on machinery @ 10 P.
2. 12.All receipt of Cheque/Cash and all payment of 91 | P a g e . All expenses. When loan is disbursed. When loan amount is received with interest or instalment is recovered. 8. Cheque received from HO (BISWA) and deposited into bank. Cheque received from HO (BISWA) for petty expenses. Cash withdrawn from bank. 6. Cash received from HO (BISWA) for petty expenses. 5. Cash withdrawn from bank for disbursement of loan.Cash withdrawn from bank. 3.RECORDING OF FINANCIAL TRANSACTION Book • • • • • • of account required for recording financial transaction : Day Book Cash Book Bank Account Loan Ledger Interest Ledger BISWA General Account Day Book: Means where all the transaction are recorded in chronological order. Cheque received from HO (BISWA) for salary. 7. 4. 10.Payment of salary. 9. 11. Format of Day Book Date Particula r Ch/Vo/Mr No Amount Date Particul ar Ch/ Vo/Mr No Amoun t Signature of Desk Officer Transaction Signature of Authority 1.
Cash Book 3.Printing & Stationary Account 11. House Rent Account 9. BISWA General Account 7.Various Project Account 13. Bank Account 4. receipt. Salary Account 10. sales and closing balance.Cash recd and Cash payment. “BISWA” Related Account 1. Loan Ledger 5. purchase. Suspense Ledger 6. “T” Form Dr Comes In Goods Accounts Goes Out Cr Date Particular L/F Amount Date Particular L/F Amount Date Particular L/F Running Balance Form “Dr” Amount “Cr’ Amount Balance Amount *Note* For each transaction date. For example: . Ledger account is prepared to find out the immediate information regarding particular items like opening balance. Individual Asset Account 8.Log Book 92 | P a g e . folio and amount must be recorded with evidence.Cash Book: Means where all cash transaction are recorded. payment. Day Book 2. particular.Telephone Account 12.
5. And folio no. Cheque received from HO (BISWA) for petty expenses. Cash withdrawn from bank. 7. Cash withdrawn from bank. When loan is disbursed. 6. Petty cash expenses. voucher no. Cheque received from HO (BISWA) and deposited into bank.Cash withdrawn from bank.JOURNAL RELATED TO BISWA 1. All payment of cash will be “Cr” with date. voucher no. 2. Cash received from HO (BISWA) for petty expenses. When instalment becomes due. Cash withdrawn from bank for disbursement of loan. 8.Cheque received from HO (BISWA) for salary. 3. Journal entry: Cash account Dr To Bank account 93 | P a g e . 9. 12. 4. Transaction relating to Cash 1. When loan amount is received with interest or instalment is recovered. 11. All receipt of cash will be “Dr” with date. CASH BOOK It is convenient to have a separate cash book to record the day to day cash transaction and to determine the daily cash balance. And folio no.Payment of salary. • • • Cash book is real account in nature. 10.
) through Mahesh Patel) Interest Rs. Cash received from BISWA. Salary or other any expenditure incurred & payment is made in cash. SHG Loan account Dr To Cash account (Being cash paid to SHG for loan through) “Dr” Date ‘T’ Form of Cash Book L/F Amount Dat Particular “Cr” L/F Amount 94 | P a g e Particular . ) 4. Cash paid to SHG for disbursement of Loan. Cash received against collection. Journal entry: Cash account Dr To BISWA General Account (Being cash received from BISWA Ho through Mahesh Patel for the purpose of 3.(Being cash withdrawn from UTI bank by encashment of cheque bearing Cheque no2. Journal entry BISWA General Account To Cash account (Being cash paid to Mahesh Patel for salary for the month of April 08 passed by authority) 5. Journal entry: Cash account Dr To SHG loan account To Interest account (Being cash received from Ac against loan collection from SHG Principal Rs.
BANK Separate bank account must be prepared to determine the bank balance in daily basis. Transaction relating to Bank 95 | P a g e . Voucher number must be given. 2. • Bank account is real account in nature. cheque number. therefore care must be taken. Cash withdrawn from bank. cheque number. 3. name of bank and counter foil. Mr No. For receipt and payment. and name of bank with the counter foil. 4. separate “Dr” and “Cr” voucher must be prepared. • Contra transaction will be recorded in both cash and bank account. • All receipt of cheque and draft will be recorded in “Dr” side with date.e Date Particular Running Balance Form L/F “Dr” “Cr” Amount Amount Balance *Note* 1. For example: Cash deposited into bank. must be recorded. Once payment is made. • All payment of cheque and draft will be recorded in “Cr” side of the bank account with date. paid seal must be used on the face of the voucher and paid seal must be used in the evidence.
Journal entry: Bank account Dr To Cash account (Being cash deposited into bank through.. Cash withdrawn from bank..... Journal entry: Bank account Dr To Cheque account (Being cheque deposited into bank through) 3.... Journal entry: Cash account Dr To Bank account (Being cash withdrawn from bank through ...) 96 | P a g e ............. Cash deposited into bank. Cheque received from BISWA..........) 4....................... Journal entry: Cheque account Dr To BISWA General Account (Being cheque recd from BISWA against.............. Cheque deposited into bank.................1.bearing cheque no) 2.............
Original copy of money receipt will be handed over to the member of SHG. BANK RECONCILIATION STATEMENT 97 | P a g e . Bank counter foil must be maintained. 2. 2. All the above work must be done by the Desk Officer of concern ADC Office. ‘Xerox’ copy of cheque or draft must be maintained. RECONCILIATION OF MONEY RECEIPT WITH BANK DEPOSIT 1. Third copy of money receipt will be verified by ADC/DC with bank counter foil and utilisation sheet and transfer the same to Loan Collection Register. Second copy of money receipt sent to HO with utilisation sheet within 7 days of received of money receipt.“Dr” Date Particular L/F ‘T’ Form of Bank Book Amount Dat Particular e “Cr” L/F Amount Date Particular Running Balance Form L/F “Dr” “Cr” Amount Amount Balance *Note* 1. *Note* 1. 3.
Cheque issue but not yet presented for payment. 3. 2. Any error committed by bank. Why the difference in pass book and bank column of cash book is occurred:1. . How Bank Reconciliation Statement is Prepared *Note* -We may take balance as per bank pass book or we may take balance as per bank column of cash book as starting point of our verification. Direct payment made by bank. . Interest allowed by bank. Particulars Balance as per Cash book ADD: All the items which increases the pass book balance LESS: All the items which decreases the pass book balance Add (+) XXX XXX Less (-) XXX 98 | P a g e . Interest charged by bank. Bank Reconciliation statement as on . Cheque deposited into bank but not yet cleared. 5.Bank reconciliation statement is prepared to find out the difference between pass book and bank column of the cash book. 7. 4. Directly deposited into bank by customer. 6.
. Pass Book Date Particular Withdrawals “Dr” Deposit “Cr” “Dr” or “Cr” Amount Balance Amount Bank Account 99 | P a g e . .Bank Reconciliation statement as on . Particulars Balance as per Pass book ADD: All the items which increases the cash book balance LESS: All the items which decreases the cash book balance Add (+) XXX XXX Less (-) XXX *Note*As an asset we must compare each and every transaction of both cash book and pass book and find out the difference.
Grou p Nam e Date of Formatio n Weekly meetings held on Saving s up to Last month Saving s during the month Savin g up to the End of this Mont h Loan outstanding as on Amount Overdue Amount Due Total Due Amount Recovered 1s t 2n d 3r d 4t h 5t h The end of previous month Up to previous month for the month Up to the month During the month 100 | P a g e .“Dr” “Cr” Date Bank Account Particular L/F Amount Date Particular L/F Amount DEMAND COLLECTION BALANCING Sl . No.
1 2 3 4 5 6 7 (5+6) Principa l 8 8a In t 8b Principa l 9 9a In t 9b Principa l 10 10a In t Principa l 11A (9a+10 a) Int 11B (9b+1 0b) Principa l 12 12a Int 12 b 101 | P a g e .
total loan taken. 2. 102 | P a g e . All the loanee groups visit and verification. Transfers all loanee groups detail into excel sheet and hard copy. • • Loanee groups self audit and find loanee groups position like name of groups. area coordinator and community organiser wise. Transfer of data to excel sheet. 3. date wise repayment schedule. *Note* Before transferring the data to the excel sheet this is the responsibility of Deputy Manager Accounts and ADC to physically verify the money receipt and bank counter foil. date of loan taken.INTERNAL CONTROL SYSTEM IS TO BE ADOPTED BY ADC TO FORGERY AND TO GET TRANSPARANCY Various steps are as follows:- MINIMISE FRAUD & 1. Advantages of excel sheet:• To get immediate information regarding loanee groups. Meeting with all the staffs of ADC Office.
Cancelled and unutilised money receipt can be ascertained. On due date if any groups fails to repay the loan then ADC can immediately proceed to the concern groups for collection. Community Organiser and Area Coordinator wise collection during a particular month. How many times a particular Area Coordinator engaged in collection and how rest time used by him/her. In one month the number of collection with a number of groups. To find money receipt not yet deposited. • • • • • • • *Note* for entering date in collection excel sheet format date formula must be adopted.• • • Total collection with principal and interest from the groups during a particular month. ADC will immediately move to those groups which fail to make repayment. It can be ascertain from which groups less collection is collected and nil collection is made. Sorting of money receipt can be done. Date and Day wise collection. Bank detail will be known. 103 | P a g e . Comparison of monthly target versus their actual achievement.
4. Monthly action plan. Daily action plan for community organiser For the month ofName of ADCName of ACName of COSl N o Name of SHG Day of Meeting Date of Meetin g Time of Meetin g 1st meeting Day of Meetin g Date of Meeting Time of Meetin g 2nd meetin g Day of Meeti ng Date of Meeti ng Time of Meeti ng 3rd meeti ng Day of Meeti ng Date of Meeti ng Time of Meeti ng 4th meeti ng Point To Be Discuss ed As Per Single Windo w System
1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4
104 | P a g e
1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5
Target for the month1. Formation of new groups 2. Target for sale of Laxmipriya products
Signature of ADC
Signature of AC
Signature of CO
105 | P a g e
Daily action plan for Area Coordinator For the month ofName of ADCName of AC-
106 | P a g e
Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Name of SHG visited/collect ed Loan collectio n Training to Training to Organiser Group Member Identification of group saving and records Base line survey/ local area planning Target for the month1. Overdue collection 107 | P a g e . Total no’s of groups formation 2.
Signature of ADC Signature of AC Daily monthly plan for ADC For the month ofName of ADC- 108 | P a g e .
Tahasild ar .SDO.BDO.Sarpanch.Date No’s of overdue/non -loanee group visited No’s of loan document processes No’s of No’s of documen documen t t rejected approved Meeting with govt.Ward Member etc. Training to staff to achieve mission & vision Micro-planning for local area and project & programme undertaken 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 109 | P a g e . official in her/his area like bank.
Signature of ADC AD C AC CO1 CO 2 CO 3 CO 4 110 | P a g e .
Where most of the fraud and forgery are committed. b.Representative from head office must present during disbursement of loan.ADC must present at the time of loan disbursement to avoid proxy.Once collection is not made during any month from any loanee group then ADC and Area Coordinator are advised to visit the same group for collection. 111 | P a g e • . name of group. Loan amount collected from groups for personal use with the intent to pay them later. Loan amount being shared between borrower and staff. In the action plan it should be consist of time and date of loan collection. • • Loan distributed by proxy. time and point to be discussed in the meeting as per Single Window System. 5.a. time and date of group visit and monitoring of community organiser. Then the Area Coordinator will prepare the monthly action plan community organiser wise in front of ADC. The ADC will prepare monthly action plan of Area Coordinator in front of Area Coordinator. The action plan should consist of the detail of meeting conducted & date.
Before sitting loan committee.• New loan taken granted to hide arrear. • • 112 | P a g e . DM must confirm the outstanding balance. Create false group and misappropriate by employee.ADC are advised to maintain properly the group detail register.ADC are advised to make critical appraisal of loan application. New loan taken to pay other loan.
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