Contexte

Since 2005, CIDR is supporting the institutional strengthening of Wakenya Pamoja SACCO (WPS) and the development of its products, notably through the launching of a microfinance department (MFD).

CIDR’s assistance in improving the overall Internal Control system of WPS was planned from the identification stage of the project, with an objective to put in place effective risk management measures at all levels of the Sacco’s operations. One of the means towards this was to develop a new Internal Control procedures Manual for the MFD. The MFD Internal control manual was completed in April 2007, jointly between the CIDR’s Technical advisor and WPS’ Internal auditor.

Apport

This Internal Control Manual is tailored specifically to a microfinance department which is part of the wider rural SACCO. It provides comprehensive directives on how to implement effective risk management through double checking of operations.

It can be used as a model in the context of the creation of other microfinance departments as part of larger financial institutions, such as SACCOs or Banks. It can be used for the management of operational risks in an institutional strengthening strategy.

Contenu

The Internal Control Manual of the MFD gives the purpose, instructions and expected output of a yearly internal control.

It details the methodology and procedures for the three most relevant aspects of an MFD’s internal control process : control of groups ; control of the data entered in the reports and MIS ; consistency between MIS data and data gathered through other specific control activities.