It is important for
savings groups / motshelo clubs to have structures in place that govern them and
run their clubs. Group discipline is very important as it promotes commitment, as
members encourage each other to diligently meet their obligations and not
default on payments.
HOW TO OPERATE YOUR GROUP SAVINGS CLUB/ MOTSHELO CLUB
SAVINGS:
Groups should stipulate the frequency of savings and the date of share-out
lump-sum savings.
CREDIT: The
group members should agree on the payback procedures and the procedure to
follow on late repayment/ default.
MANAGEMENT
COMMITTEE
Groups should have a formal agreement between existing members and know that breaking rules could have social outcomes as well as legal ones. A detailed structure is effective in the running of the group, as responsibilities for different aspects of the group savings clubs are divided among several members.
A formal
constitution helps the day to day running of the club. It helps focus on the
mandate of the club .Where it details important information such as the limited
size allowed, structure of the club, disciplinary processes, exist requirements
,beneficiary (in case a member passes away or wants to pull out of the group), contributions,
formal agreements required, fines and management of finances.
Committee members
are democratically elected through secret ballot elections every year and
re-elected annually. Committee members:
- Chairperson
- Treasurer
- Secretary
- Money counters
RECORDKEEPING
Keeping records is
important because it opens up to an effective transparent process that allows
members to know the status of their savings. Transactions between members are
recorded and counted during meetings for transparency. By doing this then clubs
make sure that the right information is captured hence reduce confusion and
conflicts among members. The records to
keep are:
- Attendance Register: which should be signed each time they is a meeting
- Savings passbook: which should records all the member’s savings and loans taken. Each member should have a passbook to record transactions
- Ledgers: should record transactions such as credit/loans, record fines and fund balances.
- Cashbook
- Financial statement
- Monitoring of the club’s bank account or mobile money if available
FINES: Reasons
for fines vary, some fine members for being late for meetings. Make sure these
reasons for fines are all agreed upon by members and included in the agreement.
The amount of the fines should be clearly stated too.