Income Generating Activities for the Underprivileged Communities mainly through Awareness and Education Program

Background

Community Development Center (CODEC) is one the partners of Stromme Foundation (SF) receiving funding since 2001 for its "Income Generating Activities for the Underprivileged Communities mainly through Awareness and Education Program" in Bagerhat district. As per the agreement, the current external evaluation carried out at end of Phase I: final year of the first 5-year funding, will help study and consider the findings and recommendations for planning of phase II of the project.

Purpose/objective

- To assess physical progress of the project and changes that have taken place in the lives of the target participants from project interventions, focusing also on the impact the project has created on the people and the area.
- To assess the significant changes in the economic and social life and the role of the women.
- To review changes in the community based people's institutions and their capacity to sustain the efforts of the project.
- Impact of the education component in terms of quality, enrolment and drop-out rate in the schools supported by the program.
- Assess the institutional, financial and personnel capacity of the executing organization and assess the sustainability of the program activities in the light of present institutional, financial and personnel capacity of CODEC.
- To identify problems, if any, in project implementation and suggest/recommend changes in the program implementation strategy for future intervention.

Methodology

The following methods and techniques were used predominately:
- Focus group discussion: Discussed with project beneficiaries who includes 'shomity' members, students, and teachers.
- Field observation: Observed 'shomity' meetings, saving and loan collection process, loan disbursement process, income generating activities being implemented by beneficiaries, water supply and sanitation activities in different villages, training sessions with beneficiaries, etc.
- Review of records: reports, books, documents including accounting system: Review of project documents, manuals, books and documents used for financial management. Observed bookkeeping, accounting system and financial reporting system. Reviewed periodic reports and financial statements
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- Interview and discussion with staff: Interviewed and discussed with volunteers, program organizers, branch managers, education officer, program officer, accounts officer and program manager.

Key findings

- The design, approach and strategy of the project were appropriate in a sense the participation of the target people was ensured throughout the lifecycle of the project.
- Group formation, member selection and institution building, etc. were done properly following participatory methods and process, such as use of PRA in need assessment, group formation, etc.
- All the interventions under the education and microfinance components were relevant and effective to address various socio-economic problems of the target people.
- The project has achieved more than hundred percent of the targets in most of the interventions. The project participants acknowledged that they immediately benefited because of project interventions in different ways e.g. build up of savings, meeting household emergencies by using savings and loans, education facilities for children, hygiene, sanitation and health facilities, etc.
- There are also some long-term impacts claimed by project participants started to generate because of awareness and other programs.
- Management of the project was good and the team spirit, commitment, and job satisfaction of the staff were high, if the small dissatisfaction is ignored because of low salary - according to staff.

Recommendations

Education
- The quality of education intervention needs improvement given the importance and impacts of this intervention.
- Stromme Foundation and CODEC should have a long-term exit plan for funding to the primary school established at Surigathi village. CODEC and School Management Committee should take initiatives for government affiliation of this school.
Micro Finance
- Detail business plan should be prepared for the microfinance component for the next 3-5 years, to form the basis of financial support to the microfinance component from SF.
- Microfinance program is operating at below the standards in the country in terms of various indicators such as members/PO, active borrowers to total member ratio, loan portfolio/PO, operating cost ratio, etc. Work should be done to reach standards in terms of efficiency, profitability and sustainability.
- Delinquency in loan repayment is on the increase. Measures should be taken to check this trend. CODEC also must prepare aging analysis on delinquent loans and loan loss provision should be determined based on aging report and provisioning should be made in each month on the outstanding portfolio at risk.
Financial management
- Branch level accounting system must be improved urgently and with a more competent Accountant in the project office capable of managing finance and accounts independently for the entire project.
- Branch offices must prepare financial statements including cash-flow statements on a monthly basis.
Management
- Performance appraisal of staff should be more rigorous and on competency based, and capacity building needs of staff should be mentioned clearly in the performance appraisal with recognition for good performance.
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- Equipment facilities of the IGA project needs attention to ensure better performance of the staff.

Comments from the organisation

The project is in a minority community area and has been difficult in respect of access and availability of resources. In spite of all odds, SF considered the project had done well in the first five-year phase. SF reviewed the recommendations of this evaluation and also the observations from the audit reports with CODEC and carefully approached the new phase of the project with expansion plan. The need of capacity building and professionalism in MF operation has been noted and SF will continue to provide these support services in the coming phase. Operational responsibility of the primary schools that SF supported to build is gradually being handed over to the community.