Supervisory Committee
FAQs
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To accomplish these core objectives, this committee is required to carryout the following specific tasks among others as will be specified by the AGM from time to time:
- Scrutiny of minutes of all committees and General Meetings.
- Scrutiny of members’ cheques/loan registers.
- Verify receipts and disbursement of society funds.
- Verify the assets of the society against the assets register from time to time.
- Scrutinize the acquisition and disposal of goods and services and adherence to the procurement and disposal regulations.
- Verify deductions through the check off system, cash and bank standing order remittances.
- Confirm cash regularly and reconcile it with the records.
- Check out bank accounts monthly and their reconciliation.
- Check delinquent loans among the Committee, staff and members and ensure appropriate action is taken.
- Verify society investments.
- Analyze expenses of the society.
- Check loan applications and note anomalies.
- Check balance sheets and income and expenditure statements to ensure their accuracy.
- Ensure the books of the society are kept in accordance with the internationally accepted standards.
- Make regular review of budgets against actual performance.
- Attend to member’ complaints.
- Assist the management committee in seeking to problems facing the society.
- Generally, ensure that the society is operating according to the law and working towards the achievement of the stated goals and objectives.
- Carry out any other duties as may be prescribed in the Act and the Rules.
- Encourage members to contribute their shares and savings as stipulated in the bylaws
- Review local, federal, bylaw, and internal policies for compliance
- Educate our members regarding how to meet and achieve short and long term goals and objectives
- Educate our members on available loans/credits and the possible alternative methods
- Recommend equity and savings roadmap/timeline to build liquidity and achieve their goals
Loans are types of credits that banks or SACCOs give to members or investors for future repayment of the principal amount. Our committee shall ensure that our lending policies regulate the risks and benefits on borrowing and repayment. The team shall also review the SACCO’s maturing loans (nearing completion) and ensure that GGDS in partnership with the lending institution would provide competitive loans and favorable market rates to its members. All loans shall be charged or secured against assets and/or member savings (deposits). Co-signers shall complete the online application as well. Their character shall be reviewed and analyzed for approval. The committee’s clause on the co-signers shall indicate the assets more than the requested amount by the borrower.
- Educate members to inform the committee on a timely manner their intent to seek a loan (preferably 2-6 months for long term loans)
- Advise members to provide honest information about future borrowing timelines
- A member must complete an online loan application form (short or long-term)
- Applicants must provide specific details including reasons for the loan, financial history including net worth, annual income, shares owned in the SACCO, collateral assets, etc.
- The member’s co-signer must complete an online application (at least two co-signers for higher amounts requested) depending on the type and nature of the loan.
- Ensure the member has met the minimum loan qualification of equity and share deposits (loans are based on share deposits and not equity).
Head of Committee
About the Supervisory Committee
This is the oversight committee responsible for counter checking the effectiveness of the society’s internal control systems. The goals of the committee include:
- Safeguarding the well-being of the society and it’s members by mitigating risk and loss.
- Assisting the different arms of the society perform at their best based on the policies and goals that each arm sets for itself and as approved by the AGM.
- Providing accountability and transparency on the internal operations of the society by working with the management committee to ensure that adequate checks and balances are established.
This committee is also charged with preparing and presenting reports to the management committee, the Annual General Meeting as well as to the Commissioner of Cooperatives periodically as required by the society’s constitution and applicable laws of the Republic of Kenya such as CAP490 of the Laws of Kenya.
Meetings – How we do it
- Routine meetings of the Supervisory Committee shall be held as provided for in the By-Laws and approved budget of the society.
- The Supervisory Committee should hold at least one quarterly joint meeting with the Management Committee to discuss their reports.
- Minutes of all Supervisory Committee meetings should be recorded and maintained as permanent records of the society.
- The Internal Auditor of the society may participate in the deliberations of the Supervisory Committee as an ex-official member. Where the society has no internal auditor, the accountant/bookkeeper/manager may participate in the same capacity.
- The manager or Management Committee of the society shall always make available to the Supervisory Committee all books of account and all other records of the society for inspection.
- Joint meetings are normally chaired by the chairman of the Management Committee.
Qualifications for membership – Who can be a member
The qualifications of the members are specified in the bylaws under section 57 and section 38.