Automation of SACCOs - FSD Kenya
Automation of SACCOs - FSD Kenya
Automation of SACCOs - FSD Kenya
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64 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS<br />
Credit, collateral, and<br />
collection<br />
The system provides basic credit scoring and <strong>of</strong>fers an optional comprehensive credit<br />
scoring module that builds on “the 5Cs <strong>of</strong> credit”: character, capital, capacity to pay,<br />
conditions, and collateral.<br />
The feature providing automatic<br />
provisions for delinquent loans<br />
has been removed. But the vendor<br />
said it can be reintroduced without<br />
major effort.<br />
The system can attach collateral<br />
to loans but valuation and<br />
depreciation needs to be done<br />
outside the system or in an<br />
additional collateral module.<br />
If the SACCO does not have the<br />
collateral module, the collateral<br />
associated with the loan is not<br />
considered during the appraisal<br />
The credit scoring module is not<br />
included in the core <strong>of</strong>fering.<br />
FinSacco <strong>of</strong>fers reporting on<br />
delinquency. If further functionality<br />
is required the SACCO has to<br />
acquire the debt management<br />
module.<br />
Collection tasks are not supported<br />
by the system.<br />
Accounting and<br />
Strengths Weaknesses / For further<br />
finance<br />
investigation<br />
General accounting The system provides a security feature by not allowing cash transactions to be posted<br />
until reconciled.<br />
The system can operate several CoA formats in parallel and the CoA is fully<br />
customisable. A custom CoA can be imported from Excel and then populated with<br />
raw data accordingly.<br />
Products and transactions are assigned to sub-ledgers to facilitate automated posting<br />
and reporting.<br />
Every teller has their own GL account to facilitate reconciliation.<br />
The system <strong>of</strong>fers a report with all posted transactions that facilitates audit and<br />
reconciliation.<br />
Specific control accounts are used for key topics like arrears.<br />
Fixed assets The core application does not <strong>of</strong>fer an asset registry. The user needs to use Excel or so<br />
and then post journal entries manually.<br />
Planning It is possible to generate a cash flow forecast report based on current accounts<br />
receivable and payable.<br />
Treasury and cash<br />
management<br />
Comprehensive fixed asset,<br />
inventory, and fleet management<br />
modules are only provided through<br />
additional modules.<br />
The core FinSacco application can<br />
only track investments as any other<br />
accounts receivable.