Attending ADM? These are the questions you must ask as a member

Most Saccos hold their Annual Delegates Meetings (ADMs) within the first four months of the year. As a delegate of a Sacco, it’s important to attend and participate in the ADM to stay informed about the financial and operational performance of the organization.

To make the most of your ADM attendance, it’s a good idea to come prepared with questions to ask the Board of Directors and management.

According to the chairman of the newly rebranded Nafasi Sacco (Formerly Nafaka Sacco) Raymond Mwarey, the ADM provides an opportunity for delegates to hold the Sacco’s leadership accountable and to ensure that the organization is on track to meet its goals.

He said the chairman’s report is an important tool for a Sacco to communicate with stakeholders and ensure transparency, accountability, and effective decision-making.

He said for delegates, it is important to understand Return on Investment (ROI) because it provides a simple and straightforward way to evaluate the financial performance of a particular investment, project, or business venture.

“By knowing the ROI, delegates can compare different investment options and make informed decisions about where to allocate resources, time, and effort. Additionally, ROI can be a useful tool for measuring the success of ongoing investments and making changes to improve financial performance over time,” said the chairman.

Here are some questions that delegates might consider asking at their next or upcoming Sacco ADM:

Financial performance

How has the Sacco performed financially over the past year? What was the total income and expenses for the past year and how does it compare to previous years? What was the return on investment for members over the past year? How is the Sacco managing its risk, including credit risk, interest rate risk, and liquidity risk?

Loan performance

What is the loan portfolio size and how has it changed over the past year? What was the loan loss experience for the past year and how does it compare to previous years? How is the Sacco managing loan delinquencies and ensuring that members repay their loans? What steps is the Sacco taking to improve loan portfolio quality and performance?

Membership and growth

How many members does the Sacco have and how has membership grown over the past year? What is the Sacco doing to attract new members and retain existing ones? What services does the Sacco offer to its members and how can these be improved?

Investment and capital management

What investments has the Sacco made over the past year and how have these investments performed? How is the Sacco managing its capital to ensure that it has enough to meet its obligations and support future growth? What is the Sacco’s dividend policy and how has it been implemented over the past year?

Governance and operations

What steps is the Sacco taking to improve governance and ensure that it is operating in a transparent and accountable manner? How is the Sacco complying with regulations and laws related to Saccos? How are decisions made and how are members involved in decision-making? What is the Sacco’s strategy for the future and how is it being implemented?

Technology and innovation

How is the Sacco using technology to improve its operations and services to members? What steps is the Sacco taking to keep up with advancements in technology and ensure that it remains competitive? How is the Sacco ensuring the security of its members’ data and protecting against cyber threats?

Other matters

Are there any other important topics or issues that the Board of Directors or management team would like to discuss with the members? Are there any questions or concerns from members that have not been addressed?

By asking these questions, a delegate can gain a better understanding of the Sacco’s performance and operations and make informed decisions.

By participating in the ADM, delegates can contribute to the success of the Sacco and ensure that it remains a valuable resource for the members.

By David Kipkorir

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