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Training Manual: The Basics of Financing Agriculture

Training Manual: The Basics of Financing Agriculture. Module 6.3 | Roles & Responsibilities of the Board of Directors . Acknowledgement.

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Training Manual: The Basics of Financing Agriculture

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  1. Training Manual: The Basics of Financing Agriculture Module 6.3 | Roles & Responsibilities of the Board of Directors Module 6.3 Roles & Responsibilities of the Board of Directors

  2. Acknowledgement The Agriculture Finance Training Manual is part of AgriFin’s Agriculture Finance Training Tools. The Manual was developed by InternationaleProjekt Consult (ICP) GmbHas part of AgriFin’s technical advisory project for Cameroon Cooperative Credit Union League (CamCCUL). Termsof Use Content from this manual may be used freely and copied accurately into other formats without prior permission, provided that proper attribution is given to the sources, and that content is not used for commercial purposes. Module 6.3 Roles & Responsibilities of the Board of Directors

  3. Session Overview Module 6.3 Roles & Responsibilities of the Board of Directors

  4. 1. Overview • Discuss and decide on an agricultural strategy with the manager(s) of the CU and the agricultural loan officers • Conduct internal control actions (e.g. loan file spot checks, surprise visits, etc.) • Ensure that all procedures and manuals are followed • Be present in CCs/BoDsto approve or disapprove agricultural loans • In specific cases, conduct recovery activities as well as marketing activities • Support and help the managers and loan officers Module 6.3 Roles & Responsibilities of the Board of Directors

  5. 2. Internal Controls • Once or twice a month, go to the CU and choose 5 random loan files to check • Have all necessary documents been provided? • Is the analysis complete? • Is the decision reasonable? • Once a month, visit 1 or 2 premises of financed members (for loans disbursed in the previous month) • Is the store really there? • Are the references provided in the analysis correct? • Once a month, visit 1 to 2 financed members (for loans disbursed in the previous month) • Check that funds are being used for stated loan purpose • Ask the member to describe his/her experience Module 6.3 Roles & Responsibilities of the Board of Directors

  6. 3. Review of lending process management • At every meeting, remind staff of the importance of respecting procedures • Speak up in CU meeting to explain to all members what the procedures are about • Make the CU’ staff aware of their responsibility to help detect breaches in procedures • Explain to the managers (and staff) that this is not due to a lack of confidence, but everybody is just doing their job. • Ask CamCCUL for help in case you see refresher sessions are needed (to managers, LOs, or even BoD members on subject areas in which they display weaknesses). Module 6.3 Roles & Responsibilities of the Board of Directors

  7. 4. Approval of agricultural loans • Choose a specific day per week on which CCs/BoDs will take place. • Be prepared to hold ad-hoc CCs/BoDs if manager requests them. • Use the CC/BoD to do some short coaching sessions and be prepared to answer questions. Module 6.3 Roles & Responsibilities of the Board of Directors

  8. 5. Recovery Activities • At weekly meetings, ask staff if they would like your help with marketing or recovery activities • Ask for a briefing before you start the recovery activity (e.g. outstanding amount, reason for default, proposed solutions, etc.) • You need to set a good example for your LOs during these situations! • Discuss future steps with your LOs and follow up on these recovery or marketing activities • Ask for an impact analysis on recovery and marketing activities (e.g. how many people were canvassed? How much money was recovered?) Module 6.3 Roles & Responsibilities of the Board of Directors

  9. 6. Support • Decide on specific times to discuss issues with which your loan officers might need help • Always have an open door so that LOs can walk in to ask questions. Be accessible! • Defend your LOs in front of difficult or rude members Module 6.3 Roles & Responsibilities of the Board of Directors

  10. For more resources please visit AgriFin’s website www.AgriFin.org We welcome your feedback to help us further refine these training materials. Please contact us at agrifin@worldbank.org. Module 1.1 Introduction to the Agriculture Sector

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