Microfinance Operations Manual - Part 4: Roles & Job Descriptions

Chapter 1 – Introduction Part 4: Definitions, Roles & Responsibilities, Document Control

1.15 Definitions

1.15.1 Purpose

The purpose of this section is to establish common definitions and terminology to ensure consistency in interpretation and implementation of the Microfinance Operations Manual. Unless otherwise specified, the following definitions shall apply throughout this Manual.

1.15.2 Key Definitions

Board of Trustees The highest governing body of Prothik Agrajatra Foundation responsible for strategic direction, policy approval, oversight, and institutional governance.

Executive Director (ED) The Chief Executive Officer of the Foundation responsible for implementing Board- approved policies, managing day-to-day operations, and ensuring regulatory compliance.

Microfinance Programme The collective financial services and related activities implemented by the Foundation, including microcredit, savings (where legally permitted), financial literacy, enterprise development support, and client services.

Branch Office A local operational office authorized to provide approved microfinance services within its

designated service area.

Client An individual who has applied for or received any financial service from the Foundation.

Member A person formally admitted into the Foundation’s microfinance programme after meeting the eligibility criteria and completing the membership process.

Borrower A member whose loan application has been approved and who has received financing

from the Foundation.

Loan A sum of money provided by the Foundation under agreed terms and conditions for approved productive or other authorized purposes.

Savings Money deposited by members under savings products that are legally permitted and approved by the Foundation’s policies and applicable regulatory requirements.

Loan Application The prescribed form completed by a prospective borrower requesting financial assistance

from the Foundation.

Credit Appraisal The process of evaluating an applicant’s identity, business activity, repayment capacity, financial condition, and overall creditworthiness before loan approval.

Loan Agreement The legally binding contract executed between the Foundation and the borrower specifying the rights and obligations of both parties.

Loan Disbursement The formal release of approved loan funds to a borrower after completion of all required

documentation and approvals.

Loan Recovery The systematic collection of loan installments according to the approved repayment

schedule.

Portfolio at Risk (PAR) The outstanding balance of loans with overdue installments, monitored as a key portfolio quality indicator according to the Foundation’s methodology.

Delinquent Loan A loan for which one or more scheduled repayments have not been received by the due

date.

Write-off The accounting recognition that a loan is unlikely to be recovered, carried out in accordance with the Foundation’s approved policy. A write-off does not automatically extinguish the borrower’s legal obligation unless otherwise decided by the Foundation.

Internal Control Policies, procedures, and organizational measures designed to safeguard assets, ensure accurate reporting, improve operational efficiency, and promote compliance.

Internal Audit An independent assurance function established to evaluate governance, risk management, internal controls, and operational effectiveness.

Compliance Adherence to applicable laws, regulations, internal policies, approved procedures, and

ethical standards.

Conflict of Interest A situation where an individual’s personal interests may improperly influence or appear to influence official duties or decision-making.

Fraud Any intentional act involving deception, misrepresentation, theft, or abuse of authority for personal or organizational gain.

Risk The possibility that an event or circumstance may adversely affect the Foundation’s objectives, operations, financial condition, reputation, or legal compliance.

Standard Operating Procedure (SOP) A documented step-by-step process approved by the Foundation to ensure consistent execution of operational activities.

1.16 Roles and Responsibilities

1.16.1 General Principle

Clear assignment of authority and responsibility is essential to effective governance, accountability, operational efficiency, and internal control. Each employee shall understand their responsibilities and perform assigned duties in

accordance with this Manual.

1.16.2 Board of Trustees

The Board shall:

• Approve organizational policies and strategic plans.
• Approve annual budgets.
• Approve major financial decisions.
• Appoint and evaluate the Executive Director.
• Ensure regulatory compliance.
• Review organizational performance.
• Oversee risk management.
• Ensure sound governance.
• Monitor financial sustainability.
• Protect the Foundation’s mission and assets.

1.16.3 Executive Director

The Executive Director shall:

• Lead the Foundation.
• Implement Board-approved policies.
• Ensure effective programme management.
• Supervise senior management.
• Represent the Foundation externally.
• Approve operational decisions within delegated authority.
• Ensure regulatory compliance.
• Promote organizational integrity.

1.16.4 Head of Microfinance Programme

The Head of Microfinance shall:

• Develop operational plans.
• Supervise branch operations.
• Monitor portfolio performance.
• Review operational reports.
• Recommend policy improvements.
• Ensure service quality.
• Coordinate staff training.
• Strengthen operational efficiency.

1.16.5 Finance Manager

The Finance Manager shall:

• Maintain accounting records.
• Prepare financial statements.
• Monitor cash management.
• Supervise budgeting.
• Ensure financial compliance.
• Coordinate audits.
• Maintain financial controls.

1.16.6 Internal Auditor

The Internal Auditor shall:

• Conduct independent audits.
• Review internal controls.
• Assess policy compliance.
• Investigate irregularities.
• Recommend corrective actions.
• Report significant findings to the appropriate governance authority.

1.16.7 Branch Manager

The Branch Manager shall:

• Manage branch operations.
• Supervise staff.
• Ensure portfolio quality.
• Verify documentation.
• Monitor cash.
• Ensure timely reporting.
• Handle client complaints.
• Maintain branch records.
• Promote ethical conduct.

1.16.8 Field Officer / Credit Officer

Field Officers shall:

• Identify eligible clients.
• Conduct household and business assessments.
• Verify applicant information.
• Facilitate group meetings (where applicable).
• Process loan applications.
• Monitor loan utilization.
• Collect repayments.
• Promote savings products (where applicable).
• Educate clients on financial discipline.
• Report operational issues promptly.

1.16.9 All Employees

Every employee shall:

• Follow approved policies.
• Protect confidential information.
• Treat clients respectfully.
• Avoid conflicts of interest.
• Maintain accurate records.
• Report misconduct.
• Participate in training.
• Support organizational objectives.

1.17 Document Control

1.17.1 Purpose

Document control ensures that organizational policies, manuals, forms, procedures, and operational documents remain accurate, current, authorized, and properly safeguarded.

1.17.2 Document Classification

Organizational documents may be classified as:

Policy Documents Board-approved organizational policies.

Operations Manuals Detailed operational procedures. Standard Operating Procedures (SOPs) Step-by-step operational instructions.

Forms and Registers

Approved operational forms.

Financial Records Accounting and financial documentation.

Personnel Records Employee-related documentation.

Regulatory Records Reports submitted to regulatory authorities.

1.17.3 Document Ownership

Each document shall have:

• Document Owner
• Version Number

• Effective Date
• Review Date
• Approval Authority
• Distribution List

1.17.4 Version Control

Every controlled document shall include:

• Version Number
• Revision Date
• Description of Changes
• Approved By
• Effective Date

Obsolete versions shall be archived and clearly marked to prevent unintended use.

1.17.5 Document Approval

Documents shall be approved by the appropriate authority before issuance. Typical approval authorities include:

• Board of Trustees (major policies)
• Executive Director (operational procedures)
• Department Heads (departmental guidelines)

No unauthorized document shall be used for official operations.

1.17.6 Distribution

Controlled documents shall be distributed only to authorized personnel through approved

channels. Electronic versions shall be maintained in secure systems with appropriate access

controls.

1.17.7 Confidentiality

Confidential documents shall not be disclosed without proper authorization.

Employees shall protect:

• Client information.
• Financial information.
• Personnel records.
• Strategic plans.
• Audit reports.
• Passwords and system credentials.

1.17.8 Record Retention

Operational records shall be retained for the period required by applicable law, regulatory requirements, organizational policy, or contractual obligations. Records shall remain complete, accessible, secure, and protected from unauthorized

alteration or destruction.

1.17.9 Electronic Document Management

Where electronic systems are used, the Foundation shall ensure:

• Regular data backups.
• User access controls.
• Audit trails where appropriate.
• Cybersecurity safeguards.
• Disaster recovery arrangements.
• Secure storage of electronic records.

1.17.10 Document Review

All major policies and operational manuals shall be reviewed periodically, and additionally whenever there are significant changes in:

• Applicable laws or regulations.
• Organizational structure.
• Operational processes.
• Technology.
• Risk environment.
• Strategic direction.

Approved revisions shall replace previous versions and be communicated to all relevant

personnel.

End of Chapter 1 – Part 4