ASA-Annual Report

 

 

A branch office in the field is the centre of all actions for implementing ASA’s ‘Self-reliant Development Model’. It controls efficiently the fund management activities as a part of the decentralized management approach. A branch office of ASA consists of one Branch Manager and 4 Credit Officers. The responsibility of managing 1,440 group members on an average lies in the staff of the branch office. The management of the ASA branch office reflects a model of cost-effective management system.

 

Analysis of the cost from the start of a branch office reveals that Tk. 0.32 million is required per annum for the salary of the staff, which stands at Tk. 26,667 per month. The office expenses required per month including office rent, electricity, gas, water, maintenance, stationery, entertainment, TA/DA, etc. are Tk. 4,350.

 

As compared to other NGO’s, ASA takes considerably as less time to perform any mission successfully. In the field of cost effectiveness can be achieved by ASA within only 6 months. ASA can reach the break-even point within 12 months period by adopting the means of minimizing cost.

 

Sustainable Status of the Organization

Sustainability means institutional viability. When all costs (entire operational management cost, cost of capital, loan loss provision and inflation) can be met from income of credit and savings products, the institution becomes sustainable.

Sustainable Status of the Organization - 2000

INCOME Taka (In million) EXPENDITURE Taka (In million)
Service charge 996.14 Personnel 286.95
Bank interest 42.86 Others (office expenses) 56.85
Membership fees 3.45 Financial cost 356.49
Others income * 12.03 Loan loss provision 77.80
Total income 1,054.48 Imputed Cost 73.60
Net Margin 202.79 Total Expenditure 851.69

Note: Figures are provisional.

* Other income: 1) Publication Sale, 2) Pass book sale (if lost), 3) Old newspaper sale, etc.