8. - Documentation and bookkeeping
The group has to maintain various books. In this section, I have
attempted to give some explanation on each of the books, the process
of maintaining them and also specimen formats of the books. These
formats are almost identical to the ones used in Samlaut district
CBR project. It is important to note that these formats and books
are suggestions only and may need more improvement on the bookkeeping
systems.
We have seen that the secretary is responsible for maintaining
all books of the group. It is important that s/he is thoroughly
trained in understanding and writing each of these books. Before
that, however, the staffs, especially the CBR worker and the SHG
auditor-trainer, need to be familiar with these systems for they
could be able to facilitate the groups smoothly. Short notes on
each of the books are given below.
8a - Minutes book
Minute book is the bible of the SHGs. It contains all the decisions
taken including financial transactions by the group. It contains
all rules and regulations made by the group. All the rules have
to be written in the first part of the minute book. A few pages
in the beginning of the book are left blank so that any new rules
or amendments could be added. The minute book can also be used to
maintain attendance records of members. For each meeting names are
called out and attendance marked in a separate section in the book.
8b - Cash ledger/book
The group records all its financial transactions in a cash ledger.
Every single riel that comes in and goes out of the group should
be entered in the cash ledger.
The Cash lager format introduced by the Samlaut SHG and the experience
of fieldwork in the last several years with international agencies,
it is unlike the common double entry cashbook. This is because the
groups have known and fixed sources of receipts and payments. However,
double entry cashbook can also be introduced. The columnar cashbook
helps in seeing totals of the monthly transaction in a simple way.
At the end of each transaction meeting, the secretary has to make
a trial balance, preferably on the same page so that the transactions
are tallied before the termination of the meeting. Any closing balance
is kept with the treasurer, unless the group decides otherwise.
In the end the office bearers have to sign the cashbook to authorize
and approve the day's transaction.
8c - Savings ledger
The saving ledger is a support document used to record the savings
particulars of individual members. These records are maintained
separately for each member. A few pages are devoted in the ledger
for each of the members. The format given separately is used for
this purpose.
Normally in the SHGs members are allowed to withdraw saving as
and when they feel like it. The group works based on a collective
spirit, which requires equal participation from all members. The
group may become demoralized if some members withdraw their savings
and yet want to benefit from the group. If a member is leaving the
group, however, it should return all the saving of the member.
Further the group should also decide on giving interest on saving
in such cases. This has to be given from the group's earning from
the interest charged on loans. Groups may decide to give interest
on saving whether the member is leaving the group or not. In such
cases groups may compute interest on saving at the end of each year
and add it to their savings, so that the entire amount remains in
the group until the member wishes to withdraw it. Alternatively
it can also be given to the members at the end of each year.
8d - Loan ledger
The loan ledger is used to record the loan details. As in the savings
book, a few pages are devoted to each member to record their loan
transactions. At the time of issuing the loan, the secretary should
take the signature of the member whom borrowing the loan, which
is a kind of a moral guarantee for the loan received. The secretary
should be careful in recording the date and the amount so that it
does not create confusion at a later date.
It is easy to maintain this record when there is only one loan
at a time. Normally the group issues one loan to a member at a given
point of time. Unless the member has repaid the loan completely,
a fresh loan is not issued. However, if there are two loans being
repaid simultaneously, the recorder can either use the loan code
number to denote which loan is repaid, or make enough space between
loans so that the repayments can be recorded separately.
If penal interest is imposed on the defaulting members a separate
column may be added in the ledger. Overdue in the context of SHGs
in Samlaut is considered as loan outstanding after the last date
of total repayment. For reasons of simplicity we do not consider
late payments of the installments, within the loan repayment schedule.
However, it should be noted that overdue normally takes into consideration
the overdue installments as well.
The exact purpose of the loan should be recorded and it should
not be written in general terms. For example, a loan for fertilizer
should not be written as agriculture, but as fertilizer. There may
also be cases where members borrow one loan for two purposes. It
is better to write both, but the main purpose should always be the
first purpose written in the book.
8e - Reconciliation of books accounts
One important aspect of bookkeeping is reconciliation of books
of accounts, that is, all the various books of accounts must tally
with each other at any given point of time. For example if the minute
book says that in a particular meeting the group saved a total of
50,000riels, then the same should be reflected in the cash book
as well as in the saving book. Further, the individual passbooks
of members must also tally with the savings record in the saving
book.
If the records do not tally, it indicates that there is either
a wrong transaction or bookkeeping system. The group has to rectify
the differences immediately by tracing the error. Reconciliation
of the books is important, as this would avoid any possible conflicts
arising in the group as a result of disagreements on transactions.
8f - Computerization of SHG data
If the agency wishes to computerize its data to aid analysis, it
should take such decision before starting the groups. This helps
in determining some of the formats from the viewpoint of analysis.
In Bavel SHGs for example, when I was working with one of the project
in an IO agency, the staff did not seriously consider the possibility
of computerizing the group data. However, when finally it wants
to computerize the data a member level, it found that the serial
numbers had changed and this posed considerable problem while feeding
data.
Before deciding on the program the agency should determine what
kind of analysis it wants to make and at what level it needs analysis.
Based on this plan it can consult some computer data analyst and
decide on a suitable program. For example CVD is using File maker-Pro
program for its analysis. However, it is not certain yet whether
it is fully effective, since the computerization is not yet completed.
8g - Baseline survey of SHG members
It may be very useful to collect some information on the social
and economic situation of the members when they joint the group.
This helps in a comparative analysis at a later date, to understand
the impact of the SHGs on the lives of the members. Information
on the family composition, housing condition, occupation, sources
of income for the family, detail land holding, crop grown and yields,
animal owned, and other important assets, skills possessed by any
family member and its uses, educational status of the family members,
and so on.
A format can be developed and the staff can train the group (secretary)
to record this information on each member. This record may be documented
in one of the group books like, for example the saving ledger. Using
the same formats after a couple years, information on each of the
member and recollected again to the same member. A comparative analysis
can be made to understand if there is any positive change, and to
what extend the group has been instrumental in bringing about this
change.
9. A Note on Meetings in SHGs
Process of meeting:
As mentioned earlier, we know that meetings form the backbone of
SHGs. If the meetings are not effective, then the group is not a
strong group. If at all the various characteristics of the groups
are to be seen in the groups, and if at all the elements of the
concept have to be internalized in the groups meeting have to be
effective. If the meetings are weak, the group is sure to come to
an end very soon. Therefore, the staff should take facilitation
of meetings seriously and help the group to learn conducting its
meeting effectively. The entire member should get ample chance to
participate in the meetings. It is important that the atmosphere
in the meetings I conductive for participation of the weakest in
the group. It should not be threatening experience to them Personal
empowerment is greatly achieved through regular and effective meetings.
Some important elements of the meetings need to be considered carefully
by the CBR staff to make the meetings more effective. I identified
them as the following.
Meeting Place: It is better to choose a place, which is quieter,
which is protected from rain and heat, and offers enough privacy
for members to feel free to express themselves. It is always good
to hold meetings in place, which are common to all rather than in
the house of the leader, as this may have negative implications.
In order to facilitate meetings take place effectively, the members
should, as far as the place permit, sit in a circle, so that they
all face each other. This helps during discussion by allowing every
member a chance to speak and also to listen by looking at the speakers.
Facilitator's role: In the beginning of each meeting, the facilitator
(chairperson) invites agenda points from the members and the secretary
write down the same. The facilitator takes up each point and facilitates
discussion. Once a decision is taken, s/he moves on to the next
agenda. S/He should take care that all the members participate effectively
in the meeting and decision are agreed by all.
S/He should especially be careful to ensure that the less vocal
and passive members participate in the meeting discussions, without
making them self-conscious. At the end, the secretary reads the
minutes, verbatim, to the group. S/He makes necessary corrections
as required by the members.
When finishing the reading and correction all members have to sign
on the minutes and the facilitator concludes the meeting. Until
then no member should be allowed to leave the meting, except under
emergencies.
In the initial phase of the group, CBR staff facilitates the group
meetings. However, the group should elect a facilitator for every
meeting. Alternatively, the group may decide to ask the group representative
to chair all the meetings during his/her term office.
The CBR staff should slowly and gradually train the group members
of the role of facilitation, so that over a period of time, s/he
can sit back and observe the group facilitating its own meetings.
While facilitating meetings, the staff has to inculcate values of
collective and democratic functioning in the group.
Members' role in meeting: Members should be punctual for all meetings.
They should not expect the group leader or staff to inform them
about the regular meetings, every time the meeting is held. They
should actively participate in the meetings and take responsibility
fir the decisions taken in the group. If they have and reservations
about decision being taken, they should express it and allow the
group to look at the issue from their point of view.
Members should come to the meetings in a sober state. While they
are in the meeting they should desist from smoking. During the meetings
only one member should talk at a time. While other is talking, all
the members should listen. Until an agenda is discussed and decided,
the members should not move on to the next agenda. In every way
the members should cooperate with the chairperson to facilitate
the meeting effectively. They should listen to the secretary when
he/she read out the minutes and makes necessary suggestions. In
the end all members including the office bearers should sign the
minutes book.
Process of book keeping-the secretary's role: As soon as the meeting
starts, the secretary marks attendance. S/He then opens the minute
book and makes necessary entries about the date of the meeting,
meeting number, number of participants and person chairing the meeting..etc.
As the chairperson draw agenda for the members, the secretary writes
down the agenda points. S/He read out the points one-by-one for
the group to take up for discussions. S/he records the important
points of discussion and finally when all members have agreed on
a certain decision, the secretary using the same words summarized
for the group by the facilitator (chairperson), records the decision.
In the end when all points have been discussed the secretary reads
out all that s/he has written to the group. S/he incorporates correction
if any, as pointed by the members.
During the financial meetings, normally the minimal agenda would
be savings, repayments, and issuing fresh loans. For this purpose
the secretary should keep open, in addition to minute book, the
cashbook, savings ledger and loan ledger. It is easy if the agenda
starts with saving, move on to repayment, and finally ended with
payment of loans and other expenditures. The secretary has to keep
the cashbook open during all these points. The secretary must fill
up the cashbook first and then make the same entries in the support
document, like the saving book and the loan ledger. Each point is
covered one-by-one, and each point is covered member by member.
Since there are many books to be written it is normal that the
meeting becomes time consuming. In order to avoid more writing work
to be done by a person, some other literate members of the group
can assist the secretary by writing some of the books. The secretary
should, however, write the minute book and the cashbook, since the
other documents are support documents. On the other hand if there
are no member who can assist the secretary, then the secretary may
consider writing the minute book and the cashbook in the meeting.
He can finish writing the saving book, the loan ledger and the individual
passbook referring to the cashbook. However, this is not highly
advisable, since this practice may erode the transparency of transactions
and also become a source of possible conflict.
The CBR project may even think of rationalizing on the number of
records maintained. Considerable thought has gone into this stage
and presently the above are the minimum records that we think the
groups should maintain.
Cashier or Treasurer's role in meeting: The role of the treasurer
is to handle all cash transactions of the group. All monetary transactions
happen in the group meetings. The treasurer should not accept any
receipts or make any payments outside group meetings. During meetings
s/he receives savings, principle, interest and any other payments
such as fines and WCA from CBR project. S/He totals all the money,
including any previous balance, remaining with him/her and informs
the group about the total. Before lending and other payments are
started, s/he consults with the group that s/he is going to make
the payments.
To avoid confusion and to be doubly sure, the treasure may count
the money first, as per the recorded decision, and hands over the
amount to the group representative. The group representative counts
the money once again and finally makes the payments, whether it
is a loan or an expenditure or repayment of the WCA to the project.
By the end s/he makes sure that the actual closing balance is the
same as the recorded cash balance.
The treasurer, should under no circumstance, make use of the cash
in hand for his/her personal use. Further it is better for the treasurer
to produce the cash balance in every meeting so that the group knows
that the money is being kept safely.
