OFMPC Monitoring 3 September 28, 2009

1. OFMPC Monitoring 3 September 28, 2009

2. CBS, CBLand DQ Agreements

3. DQ Champion Team

4. PD Agreements

5. CBL and CBS Monitoring • 20 AOs from the Main Branch (11), Villaba (6) and San Isidro (3) submitted the assignments. • Only the AOs from Villaba submitted color-coded bookkeeping system forms. • Only the Main Branch submitted client rating forms. • Most AOs were not able to submit the total number of forms required. • There were new AOs hired handling new clients. • There were AOs reassigned to handle clients in other branches.

6. Character and Capacity Based Lending

7. Character and Capacity Based Lending Loan Application Form • AO used edited loan application form for new borrowers which does not include surname, given name, middle initial, address, center name, years in the community, number of household members, number of children in school, and number of school-aged children not in school. • Common items left unanswered were the center name, savings, organization, date of application, CDO name/sign, loan amount approved, date approved • Name of client is included in household members with source of income.

8. Character and Capacity Based Lending • “Fair,” “stable,” “growing” were among the vague descriptions of business growth and market conditions. • Instruction to encircle or mark “yes” or “no” items were not encircled or marked. • Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant. • The proper way of erasing data was not observed. • There was no probing on some answers, i.e., reason why the receipt was not shown, or kind of business of household members listed as businessman by occupation.

9. Character and Capacity Based Lending Client Rating System

10. Character and Capacity Based Lending Credit and Background Investigation • Name and position of the barangay official and the date of interview were not indicated. • There was no useful information recorded on the supplier/creditor interview. AO answered “none” in all items except for the date of interview. • AO did not follow instruction to interview a barangay official on the second part of the CI/BI. A non-barangay official was interviewed as character reference. • “Good” were among the vague answers in the assessment of character. • The character reference answered “yes” on the item asking if applicant is reliable or unreliable.

11. Character and Capacity Based Lending Cashflow • The conversion used was not encircled. • The computation of income and expenses was not completed. • There were errors in computations. • Some items were missed such as raw materials used and other expenses related to the business.

12. Character and Capacity Based Lending Cashflow • Computation of debt capacity analysis was not completed. • The proper way of erasing data was not observed.

13. Color-Coded Bookkeeping System

14. Color-Coded Bookkeeping System Subsidiary Ledger • The date of release and maturity date were not included in the subsidiary ledger form as well as the penalty, tapal and service charge columns. • The balance forwarded should be written on the first row below the date and not on the same cell.

15. Color-Coded Bookkeeping System Subsidiary Ledger • AOs entered “yes” on items with prompt payments and entered “N” on items with delayed payments. • The most recent transactions have no delayed/missed entries and no AO signature per transaction. • There were out-of-place entries or markings on the delayed/missed and signature columns. 

16. Color-Coded Bookkeeping System PAR Report • Some items were left blank instead of entering “0” or “-” to indicate none Outreach Report • Client loans entered are ongoing instead of completed loan cycles.

17. Color-Coded Bookkeeping System Repayment Behaviour Tracking System • Client loans entered are ongoing instead of completed loan cycles.