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Required MIS Reports


									   Management Information System for
  Community Based Financial Institutions

• The MIS Software should be able to
  manage multi level requirements:

• SHG Level - MIS & FA

• Federation Level - MIS & FA

• Apex Level - MIS & FA
   Management Information System for
community based financial institutions contd..
• The software should be able to generate the
  reports separately at each level as well as
  consolidated reports.
• Trial balance
• Financial statements (Income and Expenditure balance
  sheet etc)
• Cash flow statements
• Portfolio reports - aging analysis
• Demand collection balance reports
• Ratios - trend analysis
    Issues related to adaptation by CBFIs
• Needs are very different from one MFI to another
• Changes in the needs of information as business changes
  and new opportunities arise
• Development of such software is complex and costly
• MFIs are not ready to adopt changes as per software and
  are afraid of disclosing the financial data
• Ambitious requirements of MFIs
• The multi sector project implementation of NGOs
• Availability of accurate data
• NGO staff find setting the data very laborious
• Lack of combined skills in mF, accounting and computers
  in NGO-MFI staff.
• Data entry and maintenance of accounts done by different
       Issues with software providers
•   Could not provide on site technical support
•   Inadequate training to staff
•   Techniques for trouble shooting
•   Communication gaps between implementers and providers
•   Not able to handle the required customization due to
    complexity of diverse products and lending methodologies
•   Could not generate required reports
•   Lack of timely support, HR constraints and monitoring
•   Could not provide quality services
•   Operational issues
•   Could not provide Handholding support
 Precautions while choosing a software
• Choose a provider who is available closer to the
  operational area
• Negotiate for separate costs of installation and
• Differentiate between customization of software and
  handholding support
• Tie the support in a time-frame of delivery inclusive of
  customization and hand holding
• Release payment on the basis of performance and
  satisfaction of implementers
• Post installation support
• Ask for a User friendly manual
Precautions while implementing the software

• Regular check should be undertaken from time to time of
  the data entry and its quality
• Regular follow up
• Storage and backup of data
• Simultaneously maintain the manual system for 6 months
• Backup and continuity systems
• Continuous flow of information
• Regular check of financial reports and analysis for making
  it online and making improvements if required.
 Issues related to limited budget to support
                 the software
• Installation of the software is supported by the donor but
  not the post installation support.
• The support costs involve more than 60% of the software
• Maintenance of hardware and software costs
• Could not hire skilled HR in view of budget constraints
     Measures undertaken to overcome the data
           collection/entry difficulties
• A prescribed format was developed to collect the initial data
  and for regular transactions
• Internal audit team identified from amongst the NGO staff
  to conduct audits of all the SHGs and MACS to arrive at
  closing balances
• To make collection of information easier the Book keepers
  and community organizers have been trained on SHG audit
  and filling the formats.
• NGO staffing structure was modified to ensure continuous
  information flow and to establish monitoring systems at all
• Staff JDs issued which clarifies the roles and
                                  Organizational structure


                                                     Project Coordinator
                                                     Overall Supervision

                  Training Coordinator                                                  MIS Coordinators
Provides and develops required CB trainings and materials             Provides Trainings on book keeping and financial Mgt.
     on SHG Management and MACS Managenmet                              conducts audit, consolidates the project level MIS

                                                 Mandal/Cluster Coordinators
                              Monitor the community organizers, provide CB and conduct audit
                                     Collects the consoldiated MIS from the Organizers
                                    submit verified and accurate MIS to MIS Coordinator

                                                     Community Organizers
                                              Facilitate the C and D grade groups
                                               and verifies the books of accounts
                                   collects the MIS from the bookkeepers and consolidates

                                                         Book keepers
                                               Writes books and collects the MIS
                                      in the prescribed format for on onward submission
                                                   from 20 to 30 SHGs each
      Usage and analysis of MIS
• In an NGO, the management often has very little
  time and skills to understand the usage of analysis
  of MIS Data for decisions.
• The culture of financial management is difficult to
• Though the management understands its
  relevance, its reluctance for hands-on analysis
  keeps it away from proper use of MIS.
• Sharing of data analysis to SHGs/Federations
 Measures taken to overcome usage of
     MIS and analysis by CBFIs
• Trainings on book keeping, financial management and
  delinquency management were provided to MIS
  coordinators, PCs, TCs and other coordinators.
• Advance level trainings in financial management,
  delinquency management, risk management and
  interest rate setting were given to the Coordinators and
  CEOs of the NGO-MFIs.
• Currently, all the reports are being routed through the
  CEOs to understand its relevance and proper use of
   Sample Reports generated
through software package being
   used by one of the CASHE

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