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STRATEGIC PLAN
LCUNA
DEC. 16, 2013
1
TABLE OF CONTENTS
SECTION 1 1 1.0 EXECUTIVE SUMMARY 2 1.1 INTRODUCTION 2 1.2 ORGANIZATIONAL STRUCTURE 4 1.3 LCUNA VISION 4 1.4 LCUNA MISSION 4 1.5 CORE VALUES 4 1.6 CORPORATE GOALS/OBJECTIVE 4
SECTION 2 3
2.0 SITUATIONAL ASSESSMENT 5 2.1 GOVERNANCE 5 2.2 ORGANIZATION 5 2.3 SUMMARY OF THE THREE YEARS STRATEGIC PLAN 7
2.4 KEY ISSUES 9
SECTION 3 7
3.0 APPENDIX 11 3.1 ORGANIZATIONAL STRUCTURE 11
2
1.0 EXECUTIVE SUMMARY
The Liberian Credit Union movement started far back as 1966 in Maryland County,
Liberia with the able sponsorship of Father Ted Hayden and Bishop Boniface Dallieh. In
1969, LCUNA was officially established and accredited in 1973 by the division of
marketing and planning, Ministry of Agriculture. Prior to the war in 1990, LCUNA had
68 registered credit unions with a membership of 24,000. LCUNA total assets by then
were estimated to be more than 1.3 million United States dollars. The credit union
Movement became one of the vibrant, competitive and well accepted non-banking
financial institutions in Liberia and used to be one of the strongest in the West Africa
Region. Since its establishment LCUNA had received massive financial and technical
support from several partners including the Dutch Bishop, Rabobank and Konrad
Adeneuer Foundation as its main partner for several years prior to the war. The ten years
war brought a massive destruction to the credit union system. Apart from the lost of
human lives, most of the office buildings, records and other assets of the credit union
were all lost including that of the National Association (LCUNA).
LCUNA has also immensely benefitted from the Government of Liberia through the
Central Bank of Liberia, cooperative Development Agency, as well as ACDI/VOCA and
Lone star during its reorganizing process. The image LCUNA built previously was wiped
off through the civil war in the country which caused Credit Unions in Liberia to lose all
their savings and investments with various banks.
1.1 INTRODUCTION
After the war, three (3) successive leadership and managements have attempted to revive
LCUNA and the credit unions but to no avail due to lack of human and financial
resources to propel the revitalization process. The current Board and Management team
is made up of a nine member Board headed by Mr. Biyie Saye as the Chairman and Mr.
Yarkpazuo M,Gbusiwoi as the Managing Director. LCUNA has a skeleton staff with
almost all except, the Managing Director and his deputy are all working as volunteers
with no fixed income. The Managing Director and his deputy are being supported by The
World Council of Credit Unions (WOCCU) with part of their salaries. In addition to that
LCUNA own office is still not habitable, it will require a major renovation work due to
the extent of destruction during the war. Currently LCUNA is sharing offices with
WOCCU rented building.
LCUNA had a vision and mission statement but had no resources to pursue its mission
except that the WOCCU project has donated a vehicle to facilitate their field work.
Among the challenges faced by the Apex include lack of internally generated funds. The
only source of funds is the affiliation fees paid by newly formed credit unions who wish
to join LCUNA.
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All the volunteering staff of LCUNA including the Managing Director is new to the
credit union system and lacked the knowledge and understanding of how a viable credit
union should be. The Central Bank of Liberia (CBL) has introduced a financial loan
through its Loan Extension and Availability Facility (LEAF) to primary credit unions to
be repaid in the period of three years at an interest rate of three percent (3%). The criteria
were for groups to organize themselves into credit unions and affiliate with LCUNA
before they could access a loan. This action had motivated a lot of citizens to put
themselves together in the form of savings clubs to enhance their accessibility to the
facility. This has generated about 300 savings clubs which are seen as credit unions.
LCUNA is currently financially handicapped to effectively convert these savings clubs
into credit unions, supervise and audit these savings clubs and credit unions with few and
untrained staff.
After the war, it was required by all co-operatives to re-register with the Co-operative
Development Agency (CDA) under the Ministry of Agriculture even though they were
registered before the war broke out. The bye-law which could facilitate the registration
process is 80% complete.
Relationship between LCUNA leadership and the WOCCU Advisor who is The Chief of
Party to the WOCCU Project in Liberia is cordial. The objectives of this Project are to
organize four financially sound, efficient and viable credit unions in the country. We had
the opportunity to visit two of such credit unions centers in the Paynesville Market and
Buchanan. With few months of their establishment, they seem to be doing very well. The
project is also required to build a new office for the National Association with an amount
of $40,000. However, it is the responsibility of the LCUNA leadership and Management
to acquire a land for that purpose. The land acquisition for the building project has
become a challenge to LCUNA due to lack of funds and suitable location.
The potential for credit union development in Liberia is very high. Banks are located in
few regional capitals in the country. Most of the financial institutions have pulled out of
some districts and counties. Microfinance institutions are very few and the unbanked
population is very high. The National Association (LCUNA) would need both financial
and technical support to turn their dreams into reality.
LCUNA has not been audited for some years now and the records kept by the Accounts
Department is inadequate to access the Assets and liabilities of the institution.
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1.2 ORGANIZATIONAL STRUCTURE
This is provided in the appendix-1 attached.
1.3 VISION STATEMENT
LCUNA exists to become a premier financial co-operative service provider in Liberia, by
providing competitive products and services to its members leading to sustainable
improvement in the lives of the people through strong and committed staff to create a
credible image in the country.
1.4 MISSION STATEMENT
LCUNA is a Financial Co-operative Organization. It seeks to create sustainable and
quality financial and technical services by providing valuable products and services to its
members and promote the Credit Union concept in order to make ‘Credit Union’
acceptable to all.
1.5 CORE VALUES
Transparency, accountability and honesty
a. Non political and non discriminatory
b. Democracy
c. Build trust and confidence
1.6 CORPORATE GOALS/OBJECTIVES
LCUNA progress towards its mission under the broad objectives of developing itself into
a sustainable financial institution and to create an enabling environment for credit union
operations of its affiliate members
5
2.0 SITUATIONAL ASSESSMENT
2.1 GOVERNANCE
LCUNA is governed by a Board of Directors of nine persons that was democratically
elected at its first post war Annual General Assembly on May 2, 2012 in the City of
Zwedru, Grand Geddeh County. The Board of Directors appointed a management
through the guidance supports of CDA and CBL. However the component of the LCUNA
BOD is not directly representatives from the various credit unions BOD
2.2 ORGANIZATION
The credit union system is one of the oldest Micro-finance institutions in Liberia. The
growth of the system before the war was unprecedented. However the war ended the ever
growing credit union system and the system has since suffered from lack of personnel,
finance and trust by members etc. LCUNA is currently faced with issues of re registration
since the old registration before the war had to be renewed
.
The outreach in the country is equally extensive as credit unions are found throughout the
nook and cranny of the country. Credit unions by their set up and operations are well-
placed to provide custom-made financial services to their members both rural and urban.
As at November, 2012 LCUNA has approximately 300 primary credit unions and study
groups around the country. Majority of these credit unions are yet to meet the full
requirements of a credit union standard. The number of employees working in its
headquarters in Red-light,
Paynesville was fourteen (14). There were no sub branches or county representatives in
operational areas. LCUNA has two major divisions. Thus:
A. Administration and Finance
General Accounts
B. Operations (Program/Plan and Training)
Education and Training
The Computer Services (MIS)
The General Field Services
Audit services
The Liberia credit union National Association (LCUNA) is the apex body of the credit
union system. As the umbrella body LCUNA is responsible for the promotion and
development of credit unions in Liberia. LCUNA intends to do this through education
and Training, Monitoring and Supervision, Audits, as well as Risk Management and
Central Finance Services. LCUNA also represents societies both at the National and
International Levels.
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Currently LCUNA is into formation and promotion of credit unions. LCUNA does this
through a rented apartment as its Head office in Monrovia. LCUNA aspires to create
county representatives to augment its work.
Total credit union membership stood at 67,641 with 39,605 males representing 58.55%
and 28,036 female representing 41.45%. Deposits (savings and shares) mobilised stood at
LD165, 969,320 (US$ 207,461.65) with about 300 credit unions and savings clubs
The major strength of LCUNA includes:
Competent and qualified management team
Ability to reach to the primary members in remotest area in the country
Potential of holding a capital base growth
Willing and committed staff
Ability to mobilize members
LCUNA has envisaged the urgent need to identify and train the management teams of
both the apex body and its primary members to contemporary acceptable best practices of
credit union activities. The WOCCU program had so far created four (4) regional blocks
representing four model credit unions with branches under each region.
Consequently LCUNA has adopted the Bottom-up Approach of determining annual
activities and has as well extended the planning scope to cover a period of three years i.e.
2014 to 2016 under the theme “revitalization and modernization.” The revitalization
process started in June 16th
-17th
, 2011 in Ganta City, Nimba County; and on May 2, 2012
in the City of Zwedru, Grand Geddeh County where the first general assembly of
LCUNA was held. A new Board of Directors and an Interim Management Team were
been instituted after three successive management teams had failed. The new
management team commenced work on January 1, 2013. This process cannot be
successful without setting up standards of operation procedures (SOP). The operations of
LCUNA have come to a standstill after the civil war and have over the years operated on
ad-hoc bases without a strategic and an Annual Business Plans.
It is for these reasons that the Irish League of Credit Unions Foundation through the West
African Credit Union Programme Against Poverty (WACUPP) identified LCUNA
among three other nations (Ghana, Gambia, Sierra Leone) to receive support to manage
the credit unions in the country. The consultants’ mission is to conduct an institutional
introspection of LCUNA with the objective of developing strategic and business plans
and training needs assessment to set the basis for reviving the credit unions in the
country.
Some major areas to be considered under the three year period are shown in the table
below:
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2.3 SUMMARY OF THE THREE YEARS STRATEGIC PLAN
Although LCUNA claims to have 300 credit unions dotted throughout the country,
discussions during the planning session revealed that more than 80% of that number are
savings clubs. Management sees the conversion of these savings clubs to credit unions as
an easy task but from experience and discussions during the course of the planning it
would be very difficult for LCUNA to effectively convert and manage 300 study groups/
credit union with the current skeleton staff who are all volunteers. Almost all the staff
are new and have no idea of how a viable credit union should be. The best approach is to
start with a limited number as indicated below and increase gradually as they continue to
acquire more experience in getting clear picture on the type of credit unions they want to
develop in Liberia.
YEAR 1
Year one of the Strategic Plan will concentrate on the revitalization processes. These
include the capacity building of LCUNA staff to meet the task ahead and the
development of model policies including legalization of the status of LCUNA and at least
30 selected credit unions. LCUNA should move to its new premises constructed by the
WOCCU Project.
YEAR 2
Once a proper foundation is laid out in the first year (2014), year two will look at
building the capacity of credit unions and increasing the number of registered credit
unions to at least 50. During year two, an acceptable accounting and reporting systems
will be in place. All registered credit union would have the required policies in place.
YEAR3
Capacity building of credit unions will continue and the introduction of the Central
Finance Facility and the Risk Management Insurance will take place. In year three the
number of registered credit union should be increased to at least 80 and all of them
should be audited.
YEAR 1 2014 YEAR 2 2015 YEAR 3 2016
INSTITUTIONAL
STRENGTHENING OF LCUNA
INSTITUTIONAL
STTRENGTHENING OF
CREDIT UNIONS
GROWTH ANAD
DEVELOPMENT
Capacity building of LCUNA Staff
– Training in Accounting,
Auditing, Credit Management,
Financial Management and
Governance
Training of credit unions in :
Accounting, Credit
Management, Financial
Management, Governance and
Leadership Training
Repeat training for new
credit unions
8
Completion with LCUNA draft
byelaws and registering with the
Co-operative Development Agency
CDA
Developing Model Byelaws for
credit unions and ensuring that at
least 30 savings clubs meet the
criteria for registering with CDA
Registration of credit unions
increase from at least 30 to 50
Registered credit unions
increase from at least 50 to
80
Developing Model Policies for
Credit unions:
Loans, Savings, Shares and
Financial Policies
At least 50 credit union
operated with written policies
Develop criteria for credit union
operations.
And Minimum Performance
Standards for Credit unions. This
requires that savings clubs or study
groups meet certain minimum
criteria before registration and
being accepted for affiliation with
LCUNA
20 more credit unions meet
criteria for registration and
affiliation with CDA and
LCUNA respectively
30 more credit unions meet
criteria for registration and
affiliation with CDA and
LCUNA respectively
GORVENANCE: Provide job
descriptions for all staff and
personnel policies
Assist credit union to write job
descriptions for staff
New credit unions have job
descriptions for staff
Ensure that at least 30 credit
unions are audited
Number of audited credit
unions increased to 50
Number of credit unions
increase to 80
Develop reporting format and
ensure that Management of
LCUNA reports to the Board at
least quarterly
LCUNA Management reports
to Board quarterly
LCUNA Management
reports to Board quarterly
Ensure that at least 30 credit
unions report monthly to their
Board and LCUNA
50 credit unions report to their
respective Board and LCUNA
monthly
80 credit unions report to
their respective Board and
LCUNA monthly
Introduce fee for services ie.
Training, Book-keeping, Auditing
etc
Rates for fees are publishes
and at least 50 credit unions
have paid willingly
At least all the 80 credit
unions pay for services
Ensure that at least all the 30 credit
unions pay dues by the established
rates
At least 50 credit unions pay
dues to LCUNA
At least 80 credit unions pay
dues to LCUNA
9
Complete new LCUNA Office
Premises to be constructed with
funds from the WOCCU Project
Re-roof the old LCUNA
premises in Paynesville
WACUPP Meeting in Monrovia Promote Exchange visits with
sister countries
Acquire Accounting
Software for Credit Unions
Ensure that LCUNA is audited
annually
Ensure that LCUNA is
audited annually
Ensure that LCUNA is
audited annually
2.4 KEY RESULT AREAS
HUMAN RESOURCE
ACTIVITY CURRENT SITUATION YEAR
1
YEAR
2
YEAR
3
1.capacity building at all levels 1.Lack of capacity building at all levels
2.Engage staff from 2015 2.Inadequate staff
3.audit conducted on credit unions 3.No audit conducted on credit unions
4.superve CUs 4.Lack of supervision
5.Design clear job description for
staff
5.Absence of clear job description for
staff
6. Set CUs records up 6.Poor records keeping by primary
societies
7.Prepare financial report monthly
for BoD attention
7.No financial report to show evidence of
existence
8.Conduct Training Needs
Assessment
8.No Training Needs Assessment plan in
place
9.Elect supervisory committee for
LCUNA
9.LCUNA has no supervisory committee
in place
10.Pay staff monthly 10. Staffs are not paid however
transportation is given to operate. The
Managing Director and his Deputy are
paid by WOCCU while the staff are on
allowances
FINANCIAL RESOURCE
ACTIVITY CURRENT SITUATION YEAR
1
YEAR
2
YEAR
3
1.Source for financial support 1.Lack of financial resources
(Nonpayment of dues by primary credit
unions, introduction of fees for services)
2.Obtain constant power supply for the
office through national grade
2.Operational difficulties e.g. lack of
power supply through national grade
10
3.Renovation of LCUNA house 3.LCUNA house is currently inhabitable
4.Construction of LCUNA office
complex under WOCCU programme
4.Construction of LCUNA office
complex under WOCCU programme
5.Logistical support 5.Lack of logistical support-no
photocopier, printer. Has about 3 laptops
provided by WOCCU but cannot connect
to an LCD projector for training
MARKETING AND DEVELOPMENT
ACTIVITY CURRENT SITUATION YEA
R 1
YE
AR
2
YEAR
3
1.Poor image 1.Lack of trust by members
2.Dvelop operating bye-law for
LCUNA as an apex
2.No operating bye-law for LCUNA as
an apex
3.Register LCUNA by law under
CDA
3.Unregistered apex by law under CDA
4.Register affiliated CUs by law with
CDA
4.over 70% of affiliated CUs not
registered by law with CDA
5.Develop model bye-laws for
primary societies
5.No operating model bye-laws for
primary societies
6.Design criteria for credit union
operations
6.No criteria for credit union operations
(Most Primary societies have no
governance structure in place
7.Transform/graduate the savings
clubs into credit unions clubs)
7. The supposed credit unions are
actually savings clubs
8.develop policies for both LCUNA
and primary societies
8.No policies for both LCUNA and
primary societies
9.Development of new product and
services (Risk management, central
finance facility.
9. Has no product for the members
(intends to introduce the following Risk
management and central finance facility.
10.Collection of Data from primary
societies
10. Do not have accurate data on credit
unions
11.Develop strategies for sound
marketing plan
11.Lack of sound marketing plan to roll
on the unbanked into the credit union
12. Develop Accounting System for
LCUNA and Credit Unions
No accounting system is in place for
both institutions.
12.Development of accounting
software for LCUNA and primary
societies
12. The apex body and CUs operate
without a specific software tailored to
needs of CUs hence the need for an
accounting software for LCUNA and
primary societies
11
3.0
GENERAL ASSEMBLY
BOARD OF DIRECTORS
MANAGING DIRECTOR
SPECIAL PROJECTS/WOCCU/ILLUF
DMD/PROGRAM, PLAN & TRAINING DMD/ADM. & FINANCE*
IT DE[ARTMENT* TRAINING* Adm. Management*
OFFICER
FIELD Coordinator*
ASST. ACCOUNTANT
SECRETARY*
OFFICER
ACCOUNTANT* AUDITOR
SECURITY* DRIVER RECEPTIONIST*
OFFICER OFFICER
SUPERVISORY COMMITTEE
JANITOR
RMO* CFF O*
12
Paynesville Street P.O. Box 2428, Monrovia,
DEC. 16, 2013
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