use the questionaire below to answer the question

For MFIs to be fulfill the mandate for which they came into being, which is to bring affordable financial services to the poor, the management and governance of MFI must be paramount. You have been recently contracted as a consultant to help an MFI structure an aspect of its governance framework. After the deliberations, you come to the understanding that the board needs you to help determine whether it has the requisite frame to be able to successfully execute its governance and oversight role. On the basis of this understanding, you have dispatched a questionnaire to the board of the MFI, seeking among other things, some relevant information on which areas the board is strong and can build on and which areas are weak and need improvement. In short, the board wants you to do an evaluation to facilitate their actions going forward and enhance their performance in steering the affairs of the company. Required: In no more than 15 pages, write the report detailing the practices of the board, identifying areas of strength to leverage on, red flags to address as well any issue you consider relevant in the quest to enhance board performance. (100 marks) MANAGEMENT AND GOVERNANCE OF MICROFINANCE INSTITUTIONS IN GHANA Dear Respondent, Thank you for your participation in this academic exercise. Responses provided are purely for academic purposes and will be handled with the utmost confidentiality. No firm will be identifiable in the report to be generated from the data collected. This questionnaire seeks to collect information as part of a quest to Explore the Corporate Board Settings of MFIS. Thank you once again for your support. 1. What is the name of the organization?. CIDAN CAPITAL MICROFINANCE LIMITED. 2. What is the current size of the board? (Number) FIVE (6) 3. How are new board members are chosen for the board: (Tick as applicable) a. Appointed [X] b. Recruited by board chair or executive director and voted by the board 0 c. Recruited by a committee of the board and voted by the board d. Recruited by the board and voted by the membership of the organization [X] e. Recruited by the membership and candidates selected by the board 0 f. Nominations sought from membership, more people are nominated than positions: and voted by the membership and board. 0 4. How old is the organization? FOUR (4) YEARS 5. Has your board assessed its performance in the past? Yes: NO: 1 2 4 some 6. If yes, what type of assessment instrument/tool did the board use? BUSINESS RULES AND SANCTIONS FOR MFIs and BOG GOVERNANCE FRAMEWORK Tick only one option in the range of: needs significant improvement (1), needs improvement (2), appropriate (3), very appropriate (4) 1. The Board has interpreted the mandate of the MFI appropriately. 2. The mandate of the MFI is aligned to the national socioeconomic development. X X 18. The majority of the Board's time is not spent on issues of day-to-day management 19. The Board is involved in formulating long-range strategy from the beginning of the planning cycle. 20. The Board ensures that the organization has sufficient and appropriate resources to achieve its strategic goals 21. Proposals from management are analyzed and debated vigorously before being approved by the Board. A proposal that is considered inappropriate is declined. 22. The Board has an operating plan that specifies its functions, activities and objectives. 23. The Board has reviewed its needs in terms of skills and has these skills X X 24. When appropriate the Board seeks counsel from professional advisors. X X X 25. The Chief Executive Officer's remuneration and performance is Reviewed and determined by the Board. 26. The Board determines, annually, the objectives and measurement criteria for the Chief Executive Officer. 27. Broad range of appropriate performance indicators are used to Monitor the performance of management. Reliability is not placed solely on the financial statements provided by management 29. The performance of the Chief Executive Officer is reviewed formally on an annual basis. 30. The Board has identified the groups to which it is: (a) Accountable (b) Responsible 31. The Board understands and agrees that its first duty is to the MFI 32. Board activities are conducted in an atmosphere of creative tension. 33. The Board allows diversity of opinion in its meetings, 34. The Board has procedures in place to ensure that the organization is meeting its legal responsibilities. 35. Formal review of the Board's performance has become an integral part of the culture of the Board, X X X x X 36. The Board ensures that key members of management are brought into the Board meetings so that they can X X X X 3. The Board has articulated or reviewed the desired future state of the MFI. 4. The Board has reviewed the mandate of the MFI to match changes in the environment Strategy 5. The Board has articulated the strategic thrift of the Corporation. 6. The Board has identified the Corporation's Key Performance Indicators for the plan period. 7. The Board has a mechanism for monitoring and evaluating performance against the Key performance Indicators. 8. The level of strategic planning is of sufficient quality and content. 9. The strategic plan is reflected at an operational level in the business plan. 10. The Board has developed a strategy for providing resources required for implementation of the strategy. Performance contract 11. The Board participates in identification and articulation of performance targets for the MFI's performance 12. The performance contract aids implementation of the strategic plan. Part Two: Functions of the Board 13. The Board understands, agrees, defines and disseminates its functions on an annual basis. 14. The Board knows and understands the Corporation's beliefs, values, philosophy, mission and vision and reflects this understanding on key issues throughout the year. 15. Such beliefs, values, philosophy, mission and vision are set and are consistent with company's status 16. The Board devotes significant time and serious thought to the organization's long-term objectives and to the strategic options available to achieve them. 17. The Board has defined and communicated to management the scope and powers, roles and responsibilities to be adhered to by management to meet routine and exceptional circumstances. X X X X X participate and add value to their deliberations and work on behalf of the Board X 37. Board members evaluate their individual and overall Board performance formally on an annual basis 38. The Board ensures all conflicts of interest are (a) Declared (b) Resolved 39. Every Board member has been supplied with a letter of appointment 40. The letter of appointment defines the roles and functions of the Board and the specific role of each director. X X X X 41. Every Board member has been supplied with a Board manual and a copy of standing orders and regulations governing conduct of Board meetings. 42. Every Board member was supplied with a calendar of meetings showing dates of Board meetings, committee meetings etc and key or critical events of the Corporation. 43. Board meetings are conducted in a manner that encourages open communication, meaningful participation, and timely resolution of issues. 44. Sufficient time is provided during Board meetings for thoughtful discussion in addition to management dialogue 45. Board time is used effectively so that the Board adds value to management. 46. Formal meeting and reporting procedures have been adopted by the Board X x X X X 47. Board members receive timely and accurate minutes, advance written agendas and meeting notices; and clear and concise background material to prepare in advance of meetings. 48. All Board members are fully informed of relevant matters and there are never any surprises. Part Three: Board Meeting Management and Procedures 49. Absenteeism from Board meetings is the exception rather than the rule. X 50. Board meetings are facilitated, but not overtly influenced by the Chairperson. 51. All Board members are permitted to add items to the meeting agenda X X X X X x X X 52. All proceedings and Resolutions of the Board are recorded accurately, adequately and on a timely basis. Part Four: Board's Composition, Induction, Training. Development, and Succession 53. The selection process considers any deficiencies in the skills of current Board members 54. The composition of the Board fairly represents the diversity of stakeholders. 55. New Board members are introduced to their duties with an appropriate induction process. 56. Board members understand the extent of their relationship with management and the separation of stewardship and management. 57. Encouragement is given for Board members to continue their study of corporate governance and improve the skills they need 58. Directors understand the extent of their personal liability for the affairs of the company. 59. A succession plan is in place for the Chief Executive Officer, Board members and senior management and is reviewed regularly. 60. Directors who have not been contributing to the governance of the organization, and are uninterested in improving their performance are asked to resign. 61. Where the ethical or professional conduct of any director is called into question such director is asked to resign pending investigations. 62. Board members bind themselves to uphold honour and respect the code of Ethics of the organization on first appointment and to resign where their actions are called into question. 63. The Board has a balanced mix of Independent Non- Executive Directors 64. The roles of Chairperson of the Board and Chief Executive Officer are separated and held by different persons. 65. The Board has established and appointed committees with defined terms of reference, composition and reporting requirements. These aspects are formally recorded. 66. The committees have been established and appointed in light of: X X x IX X a) The need to increase the effectiveness of the Board by utilizing the specialized skills of Board b) Need to provide support and guidance to management c) Need to ensure effective and independent professional consideration of issues e.g. audit reports, finance issues, etc. Part Five: Information and Communication 67. Every Board member was supplied with all establishment instrument, all legal documents, mission statement, vision and strategy documents of the company on first appointment. 68. Every Board member receives a copy of the Board manual together with a letter of appointment on first appointment. 69. Every Board member receives copies of all policy documents including organization policy documents, personnel and financial manuals on first appointment and every time these are reviewed. 70. Board members are encouraged to discuss matters with members of management after gaining the approval of the Chairperson or the Chief Executive. 71. The Board receives sufficient information from management in an appropriate format as determined by the Board are x 72 The Board's information requirements communicated to management on a regular basis. 73. Requested information is received in a timely fashion. 74. The Company Secretary advises Board members regularly on matters of governance and the applicable law. X x For MFIs to be fulfill the mandate for which they came into being, which is to bring affordable financial services to the poor, the management and governance of MFI must be paramount. You have been recently contracted as a consultant to help an MFI structure an aspect of its governance framework. After the deliberations, you come to the understanding that the board needs you to help determine whether it has the requisite frame to be able to successfully execute its governance and oversight role. On the basis of this understanding, you have dispatched a questionnaire to the board of the MFI, seeking among other things, some relevant information on which areas the board is strong and can build on and which areas are weak and need improvement. In short, the board wants you to do an evaluation to facilitate their actions going forward and enhance their performance in steering the affairs of the company. Required: In no more than 15 pages, write the report detailing the practices of the board, identifying areas of strength to leverage on, red flags to address as well any issue you consider relevant in the quest to enhance board performance. (100 marks) MANAGEMENT AND GOVERNANCE OF MICROFINANCE INSTITUTIONS IN GHANA Dear Respondent, Thank you for your participation in this academic exercise. Responses provided are purely for academic purposes and will be handled with the utmost confidentiality. No firm will be identifiable in the report to be generated from the data collected. This questionnaire seeks to collect information as part of a quest to Explore the Corporate Board Settings of MFIS. Thank you once again for your support. 1. What is the name of the organization?. CIDAN CAPITAL MICROFINANCE LIMITED. 2. What is the current size of the board? (Number) FIVE (6) 3. How are new board members are chosen for the board: (Tick as applicable) a. Appointed [X] b. Recruited by board chair or executive director and voted by the board 0 c. Recruited by a committee of the board and voted by the board d. Recruited by the board and voted by the membership of the organization [X] e. Recruited by the membership and candidates selected by the board 0 f. Nominations sought from membership, more people are nominated than positions: and voted by the membership and board. 0 4. How old is the organization? FOUR (4) YEARS 5. Has your board assessed its performance in the past? Yes: NO: 1 2 4 some 6. If yes, what type of assessment instrument/tool did the board use? BUSINESS RULES AND SANCTIONS FOR MFIs and BOG GOVERNANCE FRAMEWORK Tick only one option in the range of: needs significant improvement (1), needs improvement (2), appropriate (3), very appropriate (4) 1. The Board has interpreted the mandate of the MFI appropriately. 2. The mandate of the MFI is aligned to the national socioeconomic development. X X 18. The majority of the Board's time is not spent on issues of day-to-day management 19. The Board is involved in formulating long-range strategy from the beginning of the planning cycle. 20. The Board ensures that the organization has sufficient and appropriate resources to achieve its strategic goals 21. Proposals from management are analyzed and debated vigorously before being approved by the Board. A proposal that is considered inappropriate is declined. 22. The Board has an operating plan that specifies its functions, activities and objectives. 23. The Board has reviewed its needs in terms of skills and has these skills X X 24. When appropriate the Board seeks counsel from professional advisors. X X X 25. The Chief Executive Officer's remuneration and performance is Reviewed and determined by the Board. 26. The Board determines, annually, the objectives and measurement criteria for the Chief Executive Officer. 27. Broad range of appropriate performance indicators are used to Monitor the performance of management. Reliability is not placed solely on the financial statements provided by management 29. The performance of the Chief Executive Officer is reviewed formally on an annual basis. 30. The Board has identified the groups to which it is: (a) Accountable (b) Responsible 31. The Board understands and agrees that its first duty is to the MFI 32. Board activities are conducted in an atmosphere of creative tension. 33. The Board allows diversity of opinion in its meetings, 34. The Board has procedures in place to ensure that the organization is meeting its legal responsibilities. 35. Formal review of the Board's performance has become an integral part of the culture of the Board, X X X x X 36. The Board ensures that key members of management are brought into the Board meetings so that they can X X X X 3. The Board has articulated or reviewed the desired future state of the MFI. 4. The Board has reviewed the mandate of the MFI to match changes in the environment Strategy 5. The Board has articulated the strategic thrift of the Corporation. 6. The Board has identified the Corporation's Key Performance Indicators for the plan period. 7. The Board has a mechanism for monitoring and evaluating performance against the Key performance Indicators. 8. The level of strategic planning is of sufficient quality and content. 9. The strategic plan is reflected at an operational level in the business plan. 10. The Board has developed a strategy for providing resources required for implementation of the strategy. Performance contract 11. The Board participates in identification and articulation of performance targets for the MFI's performance 12. The performance contract aids implementation of the strategic plan. Part Two: Functions of the Board 13. The Board understands, agrees, defines and disseminates its functions on an annual basis. 14. The Board knows and understands the Corporation's beliefs, values, philosophy, mission and vision and reflects this understanding on key issues throughout the year. 15. Such beliefs, values, philosophy, mission and vision are set and are consistent with company's status 16. The Board devotes significant time and serious thought to the organization's long-term objectives and to the strategic options available to achieve them. 17. The Board has defined and communicated to management the scope and powers, roles and responsibilities to be adhered to by management to meet routine and exceptional circumstances. X X X X X participate and add value to their deliberations and work on behalf of the Board X 37. Board members evaluate their individual and overall Board performance formally on an annual basis 38. The Board ensures all conflicts of interest are (a) Declared (b) Resolved 39. Every Board member has been supplied with a letter of appointment 40. The letter of appointment defines the roles and functions of the Board and the specific role of each director. X X X X 41. Every Board member has been supplied with a Board manual and a copy of standing orders and regulations governing conduct of Board meetings. 42. Every Board member was supplied with a calendar of meetings showing dates of Board meetings, committee meetings etc and key or critical events of the Corporation. 43. Board meetings are conducted in a manner that encourages open communication, meaningful participation, and timely resolution of issues. 44. Sufficient time is provided during Board meetings for thoughtful discussion in addition to management dialogue 45. Board time is used effectively so that the Board adds value to management. 46. Formal meeting and reporting procedures have been adopted by the Board X x X X X 47. Board members receive timely and accurate minutes, advance written agendas and meeting notices; and clear and concise background material to prepare in advance of meetings. 48. All Board members are fully informed of relevant matters and there are never any surprises. Part Three: Board Meeting Management and Procedures 49. Absenteeism from Board meetings is the exception rather than the rule. X 50. Board meetings are facilitated, but not overtly influenced by the Chairperson. 51. All Board members are permitted to add items to the meeting agenda X X X X X x X X 52. All proceedings and Resolutions of the Board are recorded accurately, adequately and on a timely basis. Part Four: Board's Composition, Induction, Training. Development, and Succession 53. The selection process considers any deficiencies in the skills of current Board members 54. The composition of the Board fairly represents the diversity of stakeholders. 55. New Board members are introduced to their duties with an appropriate induction process. 56. Board members understand the extent of their relationship with management and the separation of stewardship and management. 57. Encouragement is given for Board members to continue their study of corporate governance and improve the skills they need 58. Directors understand the extent of their personal liability for the affairs of the company. 59. A succession plan is in place for the Chief Executive Officer, Board members and senior management and is reviewed regularly. 60. Directors who have not been contributing to the governance of the organization, and are uninterested in improving their performance are asked to resign. 61. Where the ethical or professional conduct of any director is called into question such director is asked to resign pending investigations. 62. Board members bind themselves to uphold honour and respect the code of Ethics of the organization on first appointment and to resign where their actions are called into question. 63. The Board has a balanced mix of Independent Non- Executive Directors 64. The roles of Chairperson of the Board and Chief Executive Officer are separated and held by different persons. 65. The Board has established and appointed committees with defined terms of reference, composition and reporting requirements. These aspects are formally recorded. 66. The committees have been established and appointed in light of: X X x IX X a) The need to increase the effectiveness of the Board by utilizing the specialized skills of Board b) Need to provide support and guidance to management c) Need to ensure effective and independent professional consideration of issues e.g. audit reports, finance issues, etc. Part Five: Information and Communication 67. Every Board member was supplied with all establishment instrument, all legal documents, mission statement, vision and strategy documents of the company on first appointment. 68. Every Board member receives a copy of the Board manual together with a letter of appointment on first appointment. 69. Every Board member receives copies of all policy documents including organization policy documents, personnel and financial manuals on first appointment and every time these are reviewed. 70. Board members are encouraged to discuss matters with members of management after gaining the approval of the Chairperson or the Chief Executive. 71. The Board receives sufficient information from management in an appropriate format as determined by the Board are x 72 The Board's information requirements communicated to management on a regular basis. 73. Requested information is received in a timely fashion. 74. The Company Secretary advises Board members regularly on matters of governance and the applicable law. X x