|
SAVINGS
RELATED |
| PROMOTE |
DISCOURAGE |
| 1.
The savings habit must be encouraged as
a value in itself, and not just as a means
of increasing the CMG fund position. |
1.
The practice of equal savings by all members
each month regardless of the
fact that some members may at times
be in a position to save more has
to be reviewed. (The fear in many CMGs
is that members saving more will
gradually dominate decision making,
particularly with regard to fund utilisation. |
| 2.
Regular monthly savings must be insisted
upon in the case of all CMG members. |
2.
Several CMGs make a distinction between
members savings and contributions
to the common fund. While
contributions are non-refundable, the
practice of withholding
savings of members leaving
CMGs (either voluntarily or forcibly)
should be discouraged at all cost.
(There are instances where such
a decision has resulted in a drop in
savings among other members who fear
the same consequences). |
| 3.
There may be seasonal variations in the
amount saved per member. Many CMGs
take such seasonal variations into
account in fixing the minimum monthly
savings expected from members.
The practice of fixing a minimum
amount to be saved each month
is good. |
3.
Even if MYRADA is approached to make
contributions to the CMGs for various
purposes money to pay interest
on members savings or incentives/
dividends to members, should
never come from MYRADA but be
generated by the CMG itelf, through
efficient fund management. |
| 4.
All CMGs must have a policy on how to manage
the savings of members who : (a)
leave the group voluntarily (b) are asked
to leave for some reason.
5. All CMGs must
maintain individual savings
registers in the CMG and individual
pass books given to members.
6. Payment of interest to members on
savings
is not a widespread practice but
one that is worth considering and promoting.
7. Many CMGs permit
their members to save
in the CMG for a particular purpose
- eg., weekly savings to build up
the necessary amount to pay a bank
loan installment when it falls due.
When the amount is taken by the
member, it is not as a loan but as a
withdrawal of savings. Such practices
may be encouraged as they add
a further dimension to the role of CMGs
in meeting members need. |
|
|
BOOK-KEEPING
RELATED |
| PROMOTE |
DISCOURAGE |
| 1.
All CMGs must be trained to keep certain
basic books and documents
as detailed in the next section
of these guidelines. |
1.
The practice of keeping CMG books
with MYRADA staff or in the
MYRADA office should be discouraged. |
| 2.
All books must be kept upto date, with
transactions being recorded as
soon as they occur. |
2.
Money for purchase of books & stationery
may come from MYRADA
at the initial instance but
this cannot be a permanent arrangement. |
| 3.
All CMGs must close the books by the
end of each calendar year. |
3.
MYRADA staff may definitely have
to assist the CMGs in maintaining
their books and documents
but to take on the role of
writing up the books on a permanent
basis is not the job of MYRADA. |
| 4.
CMGs must be helped to evolve their
own (appropriate) mechanisms for
book-keeping. This may either
take the form of trianing some
among themselves or seeking the
assistance of some other literate
members of the community
on a voluntary or paid basis.
|
4.
If a CMG retains a person on an honorarium/wage
basis to keep accounts,
the wage will have to be generated
by the CMG and not expected
from MYRADA. |
| AUDIT
RELATED |
| PROMOTE |
DISCOURAGE |
| 1.
CMG Accounts must be audited at
least twice a year. |
1.
Disposal of CMG-owned assets cannot be
undertaken without the approval of
members and appropriate documents. |
| 2.
CMG Auditors must ensure that concerned
staff and CMG representatives
are present at the time
of audit. |
2.
Members who have purchased assets with
CMG assistance cannot dispose off
the same while loan instalments are
still due, without adequate reasons
that have the approval of other
members. |
| 3.
Audit report must be presented to the
CMG in the language in which it can
be understood by members. |
3.
A single CMG accountant cannot be responsible
for more than 30-35 CMGs
if the project expects a good performance
from the concerned staff. |
| 4.
Audit reports should be taken note of
for immediate and appropriate follow
up action. A regular, recorded system
should be established by the Project
Officer to follow up audit remarks.
5. CMG Auditors shold not only
scrutinise
and tally books but also take
up the task of asset verification.
6. Insurance of
assets and settlement of
claims, etc. have to be verified by CMG
auditors. |
|
| TRAINING
RELATED |
| PROMOTE |
DISCOURAGE |
| 1.
Training needs of CMGs should be periodically
assessed by the Project staff
and appropriate training given. |
1.
The practice of paying com-pensatory wages
for CMG members attending
training programmes should be
firmly discouraged. Instead, if necessary,
a contribution can be made
to the CMG common fund. |
| 2.
Project staff in general and CMG accountants
in particular must pay attention
to training CMGs in maintaining
their own books and documents
3. The project must
pay attention to staff
training needs in so far as the staff
are expected to perform the various
functions listed above and foster
the development of healthy CMGs.
4. Many CMGs have
the practice of collecting
fines from members who miss
attending training programmes. This
is a healthy practice. |
|