TRAINING PROGRAM OF PKSF
FOR
MICROCREDIT OPERATION

1.0 Introduction

Palli Karma-Sahayak Foundation (PKSF) is a non-profit organization set up by the Government of Bangladesh for poverty alleviation, through the provision of microcredit through its Partner Organizations (POs), presently numbering 201. PKSF’s POs include cooperatives, voluntary agencies, and non-government, semi-government and government organizations. PKSF, however, is not only a fund disbursing organization; it also provides various support for the institutional development of its POs. Furthermore, being the largest apex microcredit organization in the country, PKSF has assumed the leadership role of the microcredit sector in Bangladesh.

2.0 Objectives and Goals

PKSF is to sponsor, promote and provide various forms of assistance, including financial, institutional, advisory and training, to non-government, semi-government and government organizations, voluntary agencies and societies, local government bodies, institutions and groups of individuals undertaking activities with a view to generate income and create employment opportunities.

3.0 Programs

The three main programs and activities of PKSF are:

1. Credit programs
2. Training and institutional development programs
3. Research

4.0 Training Program

4.1 Training program of PKSF officers/staff

PKSF provides training to its officers for successful implementation of its microcredit program.
PKSF also organizes foreign exposure visits for its officers to improve their skills and share information, knowledge and experiences of the best performing organizations in different parts of the world.

4.2 Training of POs’ officials/staff

PKSF arranges training courses for its POs’ personnel covering a wide range of subjects areas on microcredit operations and management.

4.3 International training for overseas participants/ professionals

PKSF offers training courses and organizes study visits for microcredit professionals of foreign countries, international organizations and development agencies.

4.4 Training approach

Participation is a very important aspect in attaining the objectives of any learning activity. Therefore, learning through a participatory approach is highly emphasized in the training courses arranged by PKSF. Training programs implemented by PKSF are operation-based rather than theoretical.
The training courses are based on short lectures, group discussions, plenary sessions, brain storming, case studies, field visits, study circles, simulation games, experience sharing, etc.

4.5 Training courses/modules

PKSF has developed 22 training modules, of which 7 are for PKSF staff and 15 are for the staff of its POs. The modules have been prepared based on a training needs assessment conducted by experts.
In addition to classroom-based training, PKSF conducts spot training (quick, needs-based, on site) in a training-cum-workshop for the POs staff for sustainable growth and development of POs’ microcredit program.

4.6 Synopsis of the training modules/courses for PO staff

Module No. Module Name

Module 1: Financial Management (for chief executives)

Module 2: Financial Management (for accountants)

Module 3: Savings and Credit Management (for chief executives)

Module 4: Savings and Credit Management (for mid-level officers)

Module 5: Monitoring and Evaluation

Module 6: Strategic Planning

Module 7: Accounts Keeping and Financial Management

Module 8: Supervision and Monitoring

Module 9: Training of Trainers (TOT)

Module 10: Accounts Keeping

Module 11: Group Dynamics, Savings and Credit Management

Module 12: Effective Management of Income Generating Activities (IGAs)

Module 13: Good Governance and Institutionalization of its Partner Organizations

Module 14: Disaster Management

Module 15: Microenterprise

Module 1 : Financial Management
Duration : Three Days
Participants : Executives of PKSF POs

This course is designed for PO executives. The aim of this course is to improve the efficiency of participants for the management of the POs’ credit and savings program. To attain the objective, the course includes the following: (i) the definition, objective and issues of financial management; (ii) financial management and accounting; (iii) finance and risk management; (iv) types and objectives of budget; implementation of budget in the light of break-even analysis; (v) micro-planning: types and objectives, planning against demand and supply; (vi) budget and budgetary control (vii) cash flow and fund flow statement; (viii) sustainability of microcredit and savings management; (ix) auditing, objectives, types and necessity of audit management; and MIS: definition, objectives and control of MIS.

Module 2 : Financial Management
Duration : Three Days
Participants : Accountants of PKSF POs

The objective of this course is to enhance the capacity of POs’ accountants. To attain the objectives, the course includes the following contents: (i) definition, objective and issues of financial management; (ii) financial management and accountancy (iii) preparation of financial statement (iv) ratio analysis and payback period (v) budget and budgetary control (vi) cash flow/fund flow statement preparation (vii) bank reconciliation statement (viii) inventory management, current capital and fixed asset management.

Module 3 : Savings and Credit Management
Duration : Three Days
Participants : Executives of PKSF POs

The aim of this course is to enhance the efficiency of participants for credit and savings management of their respective organizations. To attain this, the course includes the following: (i) the concepts of savings and credit management; (ii) income generating activities; small initiatives in microenterprise development, (iv) credit planning (v) assessment of viable project feasibility (vi) savings management and loan disbursement procedures; (vii) credit implementation and realization; (viii) debt at risk and bad-debt; (ix) ways and means of self-reliance through credit activities;(x) types of savings and credit and the calculation procedure of interest rates; (xi) MES and MIS in credit activities; (xii) savings and credit functions and savings and credit manual.

Module 4 : Savings and Credit Management
Duration : Five Days
Participants : Mid-level Officers of PKSF POs

The objective of this course is to improve the knowledge and skills for savings and credit management of mid-level officers of POs. To attain the objective, the course includes the following: (i) different forms and sources of credit and savings; (ii) identification and selection of borrowers and entrepreneurs; (iii) identification of viable income generating activities (IGAs) and enterprises and techniques of feasibility study; (iv) marketing, technical and financial aspects; (v) break-even analysis; time value of money, compounding and discounting; (vi) capital budgeting techniques; (vii) risk and sensitivity analysis; (viii) service charge and savings management in different methodologies and related procedures; (ix) types of savings and credit; calculation procedure of interest rates; (x) loan proposal analysis, processing and selection; (xi) loan sanction; loan disbursement procedure and fixation of installment repayments; (xii) necessity of credit and savings passbooks, usage procedures and problems; (xiii) MIS for savings and credit activities, credit operation, repayment collection and loan default.

Module 5 : Monitoring and Evaluation
Duration : Three Days
Participants : Executive Directors of PKSF POs

This course is designed to familiarize PO chief executives with the tools and techniques of monitoring and supervision. The course includes the following: (i) the basic concepts of management; (ii) functions of management and project management; (iii) concept of supervision, monitoring and evaluation and its application in project management; (iv) project designing through logical framework analysis; (vi) methods and techniques of monitoring and evaluation; types and processes of evaluation; (vii) reporting techniques for monitoring and evaluation; (viii) indicators of monitoring and evaluation; (ix) action plan; Gantt chart and its application for monitoring and evaluation.

Module 6 : Strategic Planning
Duration : Four Days
Participants : Executives of PKSF POs

This course will help participants to acquire the basic knowledge techniques and skill for strategic management and planning. The course includes the following contents: (i) evolution of planning and strategic planning; (ii) need for planning and commitment of the authority, outside help and outline of an appropriate plan; (iii) process of organization planning, preparation of an organization’s profile, mission statement of the organization; (iv) strategic assessment of organization, assessments of the opportunities and threats of the organization; (v) selection of approaches for strategic planning, assessment of program strategies of organization; (vi) developing of a programming strategy, goals and organizational strategies; (vii) developing and defining of a planning format, and the follow-up of strategic planning.

Module 7 : Accounts Keeping and Financial Management
Duration : Three Days
Participants : Mid-level Officers of PKSF POs

The objective of this course is to improve the efficiency of accountants for the management of accounts keeping and financial activities of POs. To attain the objective, the course concentrates on the following: (i) necessary procedures of accounts keeping and financial management; (ii) procedures of accounts keeping; (iii) documents/papers of transactions; (iv) debit, credit and journal vouchers – their preparations, books of accounts and records; (v) financial statements-trial balance, income and expenditure statements, balance sheet preparation exercises; (vi) cash flow and fund flow analysis; (vii) ascertaining financial position; ratio analysis, feasibility analysis and choice of investment and payback period; (viii) forecasting and planning of budget, definition, objectives, categories and preparation of budget, budgetary control, etc; (ix) capital budget and revenue budget preparation, bank reconciliation statement preparation and interest rate calculation.

Module 8 : Supervision and Monitoring
Duration : Three Days
Participants : Mid-level Officers of PKSF POs

The prime objective of this course is to provide participants with practical knowledge, tools and techniques for monitoring and supervision. To attain the objective, the following topics have been included in the course: (i) concepts and objectives of supervision and monitoring; (ii) differences between supervision and monitoring; (iii) role of supervision and monitoring for analyzing microcredit activities/projects; (iv) role of a manager in using monitoring and supervision as a tool for management; (v) supervision and monitoring in relation to identification of the objectives of microcredit project planning; (vi) types of leadership-supervision and monitoring, role of coordination and communications in microcredit project management; (vii) different aspects of performance appraisal, tools and techniques of supervision and monitoring in microcredit project management; (viii) collection and analysis of data and production of information for monitoring and supervision; (ix) pre-requisites for supervision and monitoring and identification of indicators and characteristics of supervision and monitoring; (x) evaluation process of supervision and monitoring; (xi) planning stages, implementation of Gantt chart and its impact on supervision and monitoring.

Module 9 : Training of Trainers (TOT)
Duration : Seven Days
Participants : Mid-level Officers of PKSF POs

The prime objective of this course is to equip participants with the method and techniques of participatory training. This course includes the following: (i) traditional and participatory learning and training concept, genesis of participatory training; (ii) principles of adult literacy; (iii) method and technique of training needs assessments (TNA); (iv) methods and techniques of participatory training; (v) training delivery and presentation; (vi) exercises to familiarize participants with various methods and techniques; (vii) communication techniques in training presentation; (viii) training materials; (ix) identification of training courses; (x) developing training curriculum, modules and session plans; (xi) the role of course facilitator and the presentation of individuals.

Module 10 : Accounts Keeping
Duration : Five Days
Participants : Accountants of PKSF POs

This course deals with the issues relevant to accounting procedures for transactions related to microcredit activities as follows: (i) concept of accounts keeping and accountancy, necessity and meaning of accountancy and process and procedures of accountancy; (ii) definition of economic transactions and characteristics; (iii) debit-credit calculations and classifications; (iv) accounts cycle-money receipt, vouchers, bill vouchers, journal vouchers, double column cash book keeping, journal and procedure of entry into journal book; (v) general ledger entry procedure, subsidiary ledger entry procedure; (vi) the tackling of advance and overdue problems; (vii) loan sanction, disbursement, repayment, collection and deposit to banks, entry and recording, bank statement profile preparation; (viii) depreciation of fixed assets, bad-debt provisioning, savings accounts keeping, entry of transactions of branch offices into head office accounts; (ix) preparation of trial balance, differentiation between revenue and capital expenditure, financial transactions-statement and balance sheet preparation; financial statement calculation procedure and preparation; (x) definition and types of budget, its necessity and preparation procedure, and introduction to audit and auditing.

Module 11 : Group Dynamics, Savings and Credit Management
Duration : Three Days
Participants : Field Workers of PKSF POs

The course aims at providing participants with knowledge and technique of the study of rural poverty and analysis of rural society. To attain the objective, the course includes the following: (i) analysis of rural society; (ii) group formation and group dynamism; (iii) developing communication skills; (iv) group savings, its management and policy; (v) microcredit; necessity and selection of borrowers; (vi) microcredit; loan sanction and disbursement – utilization of loan and recovery procedure; (vii) appraisal of loan project/proposal; (viii) management of savings and credit accounts and the evaluation of group activity by the field worker.

Module 12 : Effective Management of Income Generating Activities (IGAs)
Duration : Three Days
Participants : Mid-level Officers of PKSF POs

The objective of this course is to improve the efficiency of POs mid-level officers to manage income generating activities effecting. The course concentrates on the following: (i) income generating activities; characteristics and objectives of IGAs; (ii) feasibility study; necessity and areas; (iii) market: market information and market viability; (iv) financial appraisal and expenditure statement analysis; (iv) break-even point analysis; (v) examination of technical feasibility; (vi) environmental and socio-cultural viability analysis; (iv) identification and undertaking of sustainable and appropriate income generation activities; (vi) awareness building for microenterprise development; (vii) quality control and marketing; project preparation and presentation.

Module 13 : Good Governance and Institutionalization of Partner Organizations
Duration : Two Days
Participants : Chief Executives of PKSF POs

The course is designed for the chief executives of PKSF’s partner organizations to provide them with knowledge and skills for an in-depth analysis of good governance and institutionalization of their organizations. To attain this, the course concentrates on the following: (i) concept, definition of good governance; (ii) indicators of good governance; (iii) process of implementation of good governance; (iv) necessity of good governance for the POs; (v) ideal characteristics and features of an effective governing body; (vi) principles of an effective governing body for the establishment of good governance; (vii) operations procedures/principles and action plan for POs.

Module 14 : Disaster Management
Duration : Two Days
Participants : Chief Executives of PKSF POs

The course aims at providing participants with in-depth knowledge, information and analytical tools for disaster management. To attain this, the course concentrates on the following: (i) concepts of disasters; (ii) different types of disasters in Bangladesh; (iii) necessity of disaster management for sustainable development and eradication of poverty; (iv) measures taken to control disasters by the government, POs etc.

Module 15 : Microenterprise
Duration : Three Days
Participants : Chief Project Coordinator/Mid-level Officers of PKSF POs

This course is specially designed for the mid level officers of POs to improve their knowledge and efficiency for implementing microenterprise programs. To achieve this, the course focuses on the following: (i) concept of micro enterprise; (ii) comparative discussion on microenterprise between PKSF and other MFIs in Bangladesh; (iii) characteristics/features of microenterprises and microentrepreneurs; (iv) differentiation between microenterprises and IGAs; selection of microenterprises; orientation of borrowers about Microenterprise and loan application/proposal procedure; (v) feasibility assessment of application/proposal; (vi) financial feasibility study; market demand assessment; (vii) analysis of the structures of income and expenditures; (viii) cash flow analysis; income and payback period analysis; (ix) concept of working capital; (x) general method for the assessment of current capital; (xi) identification of the timeframe of loan disbursement and realization of current capital; (xii) concept of fixed asset; (xiii) environmental assessment of microenterprise; (xiv) project implementation plan; (xv) infrastructure development; human resources recruitment and development; (xvi) plan for collecting raw materials; (xvii) production and selling plan; (xviii) microenterprise MIS and accounts keeping management of POs; (xix) microenterprise accounts keeping management of borrowers; (xx) supervision and monitoring of microenterprises.

4.7 Synopsis of the Modules/Courses for PKSF Officers

Module No. Module Name

Module 1: Financial Management (for Deputy General Managers and Assistant General Managers)

Module 2: Microcredit Management

Module 3: Budget and Auditing

Module 4: Selection of Income Generating Activities and Management

Module 5: Strategic Planning

Module 6: Monitoring and Evaluation

Module 7: Financial Management (for Managers, Deputy Managers and Assistant Managers)

Module 1 : Financial Management
Duration : Five Days
Participants : Deputy General Managers and Assistant General Managers of PKSF

This course is designed for top-level officers of PKSF. The course focuses on the following issues/areas of financial management: (i) objectives, functions, and relations between financial management and accounting; (ii) accounts keeping: books and accounts of POs and preparation of documents/papers for financial transactions; (iii) necessity of financial statements – trial balance, income expenditure statement and balance sheets; (iv) financial management of PKSF; (v) bank reconciliation statement – objectives, necessity and preparation; (vi) ratio analysis to ascertain the financial health of POs; (vii) audit – objectives, necessity and classification; (viii) preparation and implementation of audit plan; (ix) audit and management reports – features, objectives, types, and preparation procedures; (ix) supervision and performance evaluation; (x) funding and risk analysis; importance, identification of sources of risks, analysis of risks; (xi) cash and fund flow statement – objectives and procedures; (xii) planning at local level, objectives, types of POs’ budgets and budgetary control.

Module 2 : Microcredit Management
Duration : Five Days
Participants : Managers, Deputy Managers and Assistant Managers of PKSF

This course is designed to provide PKSF officers with knowledge and skill for in-depth analysis of microcredit programs in Bangladesh. It includes the following issues/areas: (i) the microcredit programs in Bangladesh; (ii) selection of microcredit programs; (iii) income generating activities and microenterprises – differences and linkages; (vi) procedures/ techniques for preparing a microcredit plan; (vii) appraisal of microcredit activities/projects; (v) risk and sensitivity analysis (vi) savings management; (vii) process of credit distribution; (viii) proper use of credit and realization of credit; (ix) management of bad debts and doubtful loans; loan loss provisioning; (ix) service charge management; sustainability and viability of credit program (x) types of interest and calculation of interest rates; (xi) MIS – monitoring and evaluation of microcredit programs, and the elements of a manual.

Module 3 : Budget and Audit
Duration : Five Days
Participants : Managers, Deputy Managers and Assistant Managers of PKSF

The objective of this course is to improve the efficiency of participants in budgeting and auditing of POs’ microcredit programs. The course concentrates on the following: (i) the preparation of financial planning: objectives and elements; (ii) budget definition, features and categories; (ii) budgetary control – capital budget and revenue budget, and barriers to the implementation of budgets; (iii) cash flow – definition, importance and stages; (iv) introduction to audit – definition, objectives and functions of audit; differences between audit and accounting; qualities, rights and responsibilities of an auditor; classification and nature of audits – their advantages and disadvantages; (iv) vouching, depreciation of assets, auditing for reserves and provision, auditing following PKSF guidelines; (v) preparation and presentation of audit reports, audit objections and replies; (vi) internal control – internal check and internal audit and the detection of errors.

Module 4 : Selection of Income Generating Activities and Management
Duration : Three Days
Participants : Managers, Deputy Managers and Assistant Managers of PKSF

The objective of this course is to enable participants to understand the causes of rural poverty and the structure of the rural economy of Bangladesh. The course includes the following: (i) poverty analysis – the definition and concept of poverty, (ii) causes of rural poverty; (iii) characteristics of entrepreneurs at the micro level (iv) introduction to income generating activities; problems and prospects of income generating activities; (v) appraisal of income generating activities, group selection for income generating activities and techniques of identifying entrepreneurs; (vi) technical feasibility analysis of income generating activities (vii) market and financial appraisal of income generating activities; (viii) break-even analysis – risks and uncertainties in income generating activities and analysis of expenditure structure of income generating activities.

Module 5 : Strategic Planning
Duration : Five Days
Participants : Deputy General Managers, Assistant General Managers, and Managers of PKSF

This is a comprehensive course designed for PKSF top-level officers. The course aims at providing the participants with an in-depth analysis of strategic planning. The course includes the following areas: (i) evolution of planning and strategic planning; the need for strategic planning and commitment of the authority; (ii) outside help, outline of an appropriate planning process; (iii) organizational planning; (iv) preparation of an organization’s profile, comparative advantages, mission statement of the organization; (v) strategic assessment of the organization, assessment of SWOT of the organization; (vi) critical issues for the future of an organization and the selection of approaches for strategic planning; (vii) developing program goals and strategies; (viii) assessing programming change and organizational strategies; organization and program matrices; (ix) selection and presentation of a planning format; (x) presentation of a draft plan and refinement; (xi) the implementation and follow-up of strategic planning.

Module 6 : Monitoring and Evaluation
Duration : Five Days
Participants : Deputy General Managers and Assistant General Managers of PKSF

The prime objective of this course is to provide participants with practical knowledge, tools and techniques for monitoring and supervision to improve their managerial capacity. The course focuses on the following: (i) concept of monitoring and evaluation and effective management policy of an organization; (ii) project management, project monitoring and evaluation; (iii) directions of monitoring and evaluation and differences between the two; (iv) project design; logical framework method, project design through logical framework (exercises) etc; (v) methods and procedures of monitoring (vii) evaluation – types and techniques, indicators and index for monitoring and evaluation (viii) monitoring and evaluation of POs (ix) work plan and monitoring; Gantt chart and its use in work plans and monitoring.

Module 7 : Financial Management
Duration : Seven Days
Participants : Managers, Deputy Managers and Assistant Managers of PKSF

The course contents of the Financial Management Module for Managers, Deputy Managers and Assistant Managers are similar to those of module: Financial Management for Deputy General Managers and Assistant General Managers of PKSF.

Training Facilities for Rent
Currently, the newly-built 5-storey training complex attached to the PKSF main building has the facilities to accommodate three training courses simultaneously, one residential and two non-residential. The residential facilities can accommodate up to 28 participants at one time. The capacity for non-residential training is up to 40 persons at a time. Accommodation, as well as the modern training facilities (audio visual equipment, multimedia projector, overhead projector, direct projector, slide projector, TV, video camera, VCR, still and digital camera, etc.) are used to conduct the training effectively.
Auditorium and Conference Room: There is an auditorium with modern facilities designed for conference/ workshops and other programs for 250+ participants at PKSF. Conference room-1 attached to the auditorium with a capacity of 80 participants also can be used for conducting seminars and meeting. Conference room-2 has a capacity of 60 participants and there are sufficient modern facilities for conducting seminars/workshops/meetings. These venues are supported by an uninterrupted power supply round the clock.
Computer Lab: A computer lab, consisting of 12 of the latest Compaq Pentium IV computers and a multimedia projector, has been established in PKSF. This will facilitate training on basic computer packages (such as MS Word, MS Excel, MS PowerPoint and Access), PO MIS Software and others like SPSS, etc. to both PKSF and POs personnel. By using these facilities, the participants can learn relevant applications of computers and technology.
Library: PKSF has a library specialized on poverty alleviation and microcredit so that PKSF staff members can keep themselves updated about the latest development in these areas. Besides the staff, researchers and scholars interested in poverty alleviation and microcredit can also use PKSF library.

A. Class Room Rent (Per Day)

B. Training Equipment Rent (Per Day)

C. Hostel or Dormitory Rent (PerDay)

Note: Excluding all Taxes.
10% service charge will be added on accommodation/hostel/ dormitory cost.
AC = Air Conditioned.

Contact Address:
Manager, Training
PKSF Bhaban
Plot: E-4/B, Agargaon Administrative Area
Sher-e-Bangla Nagar, haka- 1207, Bangladesh
PABX: 88-02-9126240-3, 9140056-9; Fax: 88-02-9126244
Email: pksf@pksf-bd.org; Web-site: www.pksf-bd.org