Governance

PMK stresses on good governance. The organization is being governed, managed and administered by a numbers of bodies and committees as per its constitution. The constitution is approved by Social Service Department. It has two kinds of council viz. General Council (GC) and the Executive Committee (EC). Any person interested in the promotion of and engaged in any voluntary activities having objectives for poverty alleviation and/or empowering women is eligible to become a member of the General Council. The size of the General Council is 21, where two beneficiaries/clients are also represented. GC approves budgets, annual reports future action plans and also the appointment of Auditor.

On the other hand, the EC has 7 members elected from GC. Every three years, the General Council members elect the EC by direct votes. The EC comprises a chairman, a vice-chairman, a general secretary, treasurer and three other members. The EC is solely responsible for framing policies and guidelines for running PMK. The Chief Executive Officer is the Head of PMK.

 

Internal Control System

PMK has been regularly publishing its annual reports and conducting audited its accounts by external auditor. The reports are delivered to different stakeholders to keep them updated about PMK activities. As per requirement of the government, the NGOs need to submit the audited accounts of any programs or objects.

The internal control system includes use of MIS for decision-making, formalizing accounting systems, internal auditing and regular internal supervision and pursuance of budgetary practices. PMK has internal audit department with skilled auditors. Internal audit is conducted routinely as well as based on urgency of action. Audit reports are forwarded to Chief Executive.

Based on the auditor’s report corrective measures and necessary actions are adopted. Every six month, there is a follow-up action in this respect. In doing cash management, PMK estimates demand for money from its branches and carries out cash planning.

PMK prepares MIS report based on information coming from branches in the field. MIS is computerized and the information system is using software. The head office is fully computerized. The organization has accounts Unit. The unit follows generally accepted accounting principles and maintains cashbook, all kinds of ledgers and passbook, The Unit regularly produces financial statements. Financial performance is also assessed based on financial ratio analysis. The statements are usually done monthly for PKSF which has been funding its microfinance program for a long time. These are also prepared annually. The accounting staffs prepare budget and business plan for the organization and carry on operations as per the business plan.

An amount of maximum BDT 400000 can be kept in the branch and any money exceeding this limit, has to be sent to the head office. Head office keeps the money in the general account. Financial statement has to be provided to Executive Committee every three months. Any one either the treasurer or the accountant can jointly sign cheques with the Chief Executive up to BDT 300000. PMK uses the instruments viz: cheques, cheque issue register, money requisition from, cash withdraw register, voucher approval, etc. Cheques are issued after voucher approval. At branch level, the Branch Manager signs cheques with a Field Officer.

Monitoring is meticulously carried out by staff of internal monitoring department at the field level to monitor the accuracy of the savings and credit information as well as other discipline of the organization. At the field level, clients’ passbooks are tallied with ledgers and collection sheets every three months.

Board/Executive Committee Meetings

In 2014-15, three board meetings were held during the reporting year. The dates Include 03-12-2014, 01-04-15 and 25-06-2015. The meetings reviewed the progress of overall PMK’s activities, adopted a number of decisions and provided Important guidelines. Some notable decisions are that include change in the constitution, opening up new branches and automation of more branches.

Annual General Meeting (AGM)

The 15th annual general meeting was held on 13-12-2014. The meeting reviewed the activities of the organization, approved the annual report and the budget. The agenda included the following :

·         Review of last meeting and its approval.

·         Draft annual report submission and discussion.

·         Audited report submission and discussion.

·         Appointment of Auditor.

·         Draft budget submission and discussion.