Definition of Supervisory Committee
The Supervisory Committee is the Internal Auditor of the Society. Its role is complementary to that of the Management Committee which is mainly to ensure that there is an effective control system in the Society.
The supervisory committee shall be elected by the members during Annual General meeting and shall consist (3) members. No member who seeks to be elected into the Board shall be eligible for election into the Supervisory Committee during the same meeting. Members of the Supervisory Committee shall hold office for three (3) years with 1/3 retiring each year on rotational,and is eligible for re-election. At least one member of Supervisory Committee MUST have knowledge in accounting, auditing or financial Management.
Who Can be a Supervisory Committee Member?
- Must be a member of the K-NADS.
- Must be Over 18 years.
- Cannot be A leader of another SACCO.
- Has no criminal record.
- Diploma course.
- Good communication skills.
- Does not hold political office at any level.
- The status of account MUST be up to date.
- Should not be a defaulter
Duties of the Supervisory Committee.
- Check out bank account monthly and their reconciliation.
- Check balance sheets and income and expenditure statements to ensure their accuracy.
- Ensure the books of Society are kept in accordance with the generally accepted accounting standards.
- Ensure that records are maintained properly, honestly and accurately
- Make regular review of the budget.
- Prepare and present reports to the Board on quarterly and during Annual General Meeting.
- Presents the quarterly reports to the Ministry of Co-operatives regarding the SACCO managements accounts.
- Cooperate with the Board in seeking solutions to problems facing the Society.
- Review minutes of all Committee.
- Evaluate new policies and changes to existing policies in terms of their effects on the quality of service to members and the overall safety of funds.
- Safeguard Member Assets.
- Protect against internal embezzlement of funds.
- Ensure that the Management Committee adequately acts on any observations and notes raised by the external auditor.
- Make sure that policies are established according to law and carried out faithfully
- Check to see that proper internal controls are in place.
- Ensure that members receive the best possible service.
- Cooperate with Regulatory Agencies.
- Overseeing overall committee objectives and give reports on performance for each.
- Counter checking, the effectiveness of the society’s internal control systems by Carrying out investigations as may be necessary for the well-being of society and members in general and verifying the accuracy of the transactions of the society.
- Checking if cash and bank accounts are reconciled in good time.
- Establishing whether the management of the society use managerial tools i.e. budgets, trial balances, economic reports, long term plans and any other tools and thereafter making necessary recommendations to the committee.
- Preparation and presentation of periodic reports to the committee during joint meeting.
- Verify society investments and analyze the expenses of the Sacco.
- Ensure that the society is operating according to the law and working towards the achievement of the stated goals and objectives.
- Carry out any other duties as may be prescribed in the Act and the Rules
Meetings of the Supervisory Committee
- The Supervisory Committee should meet once a month.
- The Supervisory Committee should hold at least quarterly joint meeting with the Management Committee to discuss their reports.
- Minutes of all Supervisory Committee meetings should be recorded and maintained as permanent records of the society for future reference.
- The Accountant of the society shall at all times make available to the Supervisory Committee all books of account and all other records of the society for inspection.Accountant must be in the meeting subject to invitation.
- Joint meetings are normally chaired by the chairperson of the Management Committee.