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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 persons 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 support • 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 customization • 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 cost. • 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 levels • Staff JDs issued which clarifies the roles and responsibilities Organizational structure CEO 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 achieve. • 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 analysis. Sample Reports generated through software package being used by one of the CASHE partner
"Required MIS Reports"