Triple Jump news - Monday, July 25, 2011

Improving MIS in Tajikistan

JULY,  2011 - An impact study of the work of Triple Jump Advisory Services at the Tajikistan microfinance institution (MFI) Imkonyat has shown some remarkable outcomes.

Imkonyat was started as a program of the international NGO Save the Children in 1999. In 2005 it became independent as a non-profit, founded by Public Association Sitorai Najot and later in 2009 Imkonyat Fund established the Imkonyat LLC. The MFI is based in the southern city of Kurgan-Tube in Tajikistan, with 2 main offices and 8 mobile offices and serving primarily women in rural areas by offering small loans.

When Triple Jump Advisory Services started working with Imkonyat in 2010, its Management Information Systems (MIS) did not provide timely information and the financial statements required manual intervention, and therefore were at risk of manipulation. Imkonyat did not have comprehensive written credit policies and procedures, had only basic knowledge of financial analysis to review loan applications and was weak in delinquency management and restructuring.

To help with addressing Imkonyat’s challenges, Triple Jump Advisory Services launched two parallel projects: improving the existing MIS system and enhancing the Credit Process, to ensure the MIS upgrade was successfully contributing to the efficiency and effectiveness of the organization.

Two MIS experts and a credit consultant worked closely with MFI staff for a period of eight months.  As a result of the work delivered by the Triple Jump Advisory Services consultants, a new version of  their MIS (called eStable)  has been implemented successfully and on the job trainings of head office and central branch staff has been conducted. The consultants provided the MFI with recommendations on LAN/WAN improvements, a plan for upgrading servers and user PCs and a plan for hardware-related applications licensing and installation. The MFI also received updated manuals for the branches, audit and finance departments. According to management now they have timely reports both at head office and branch level and have an improved MIS saving them time and decreased risk of manipulations.

When reviewing and mapping the credit process, the credit  consultant identified the need for certain structural and procedural improvements. Inkomyat’s management acknowledged the need for the introduction of new policies and procedures recommended by the consultant to continue the dynamic growth of Imkonyat and started implementing relevant recommendations:  they introduced a new organizational chart to bring more efficiency and improved internal control systems to the institution. The introduction of several levels to the Credit Committee instead of one and Loan officers’ specialization by loan product will contribute to higher portfolio quality, improved skills of lending staff and higher profitability. Training provided by the consultant will contribute to the quality of the loan portfolio.

To learn more, read our Impact Study.