This page allows you to enter the Loan Fund details and specifications. For instance money can be given for a specific purpose or group of persons like the youth call it " The youth fund". This then becomes an external fund which will be entered under the funds page and when highlighted under the same page and the contributions page is clicked, it will be the fund available for more transactions to be added. You will be able to see the funds movement of a particular fund in the Fund utilization report. Each fund can then be tracked on its own.
How to add a new Loan Revolving Fund
To get here, go to menu System/Configuration/Funds/Loan Revolving Fund. The loan revolving funds page is displayed and looks as follows:
Operational Expenses: Some donors may particularly take interest in certain operational expenses of an institution e.g. "Capacity building" and would not want the fund’s expenses mixed with other organisation expenses. This special account can be set up by the organization to track this Fund. This fund will have its own: Fund name, donor name, start and closing date, fund code, General Ledger account, and currency.
How to create an Operation expenses fund
Click on the operation expenses and a screen like one below appears:
Enter the Fund name e.g Capacity building, The donor name e.g "DANIDA", The start date e.g 01/01/2015, The closing date e.g "31/11/2018", The fund code will be generated , Select the General Ledger account e.g "321020" this GL should have been defined in the Chart of accounts, select the Branch where this fund will be implemented from e,g "KA" and specify the currency of this fund.You can also specify the Cheque suspense account in needs be and click on the Add button to create the fund.
You now can make a deposit for the fund by highlighting the fund and clicking on the Contribution page
This will be manual entries / transactions.
Name of Fund: Enter a name of Fund in the text box provided, e.g., "World Bank Grant".
Donors's Name: Select the donor from the drop-down list, e.g., "Internal Funding". The list of donors should have been set by you at Support Files\Funding,Donors. You can also add a new donor at this point by clicking of the New Donor command button.
Note: If you are using the Loan Performer Accounting module you will be able to get all the Financial reports filtered by the Donor.
Starting Date: This date is a compulsory entry and it should precede any transaction for the particular fund, e.g., "01/01/2001".
Closing Date: This is an optional field and if specified denotes that date after which the disbursements as well as contributions will not be possible to this fund. The fund is re-opened when you delete the closing date and press the Modify button.
GL Account: If you want all fund transactions to be booked into General Ledger you should mark the Book to GL check-box (the accounting module of Loan Performer should be activated, i.e. the start of financial year should be entered at System/Configuration/Accounting menu).
If the option Book to GL is chosen, you must indicate to which GL account the fund transactions should be booked. With each fund comes a separate general ledger account. It should be an account of either group 2 (Liability), in case of borrowed funds, or group 3 (Equity), in case of a grant. Click on the arrow next to the "GL Account" Chart of Accounts GL accounts from your drop-down box. You will see the list of . Highlight the one associated with the fund that you are entering.
If you don't find any appropriate account, click on the “New GL Account“ button. You will get to the "Chart of Accounts" screen, where, following the procedure of adding a GL account to the Chart of Accounts, you will create a new account for booking of the fund transactions. On completion, press the "Return" button.
The "GL Account" combo box on the "Loan Revolving Funds" screen will be updated with the newly created account. Please note that the accounts shown in this box are not header accounts and you can not use the same account for two different funds.
It is also possible to use Loan Performer without a loan revolving fund. This is useful in case of credit unions, where the source of funds is of no importance. Just to allow loan entries, key in a fictitious fund name, uncheck the option Book to GL" and choose the option "Never" under "Always check on availability of funds at". Don't enter any contributions.
Choose the Branch by clicking on the arrow next to the drop-down window and highlighting the appropriate branch code. Unless you are using a centralized method of data administration (data from all branches maintained in one database), your branch code will appear on the screen by default.
Next you have to configure the way Loan Performer will check the availability of funds. By default the option "Never" is chosen.
Always check availability of funds:
At loan Application: It means that Loan Performer will check at loan application stage the respective funds for availability or adequacy of funds. In the event that the funds are not available or insufficient, then the process will not proceed.
At loan application and disbursement: It means that at entry of an application Loan Performer will check the respective funds for availability or adequacy of funds. In the event that the funds are not available or insufficient, then the process will not proceed. Again Loan Performer will check at loan disbursement the respective funds for availability or adequacy of funds. In the event that the funds are not available or insufficient, Loan performer will not allow you to proceed with the disbursement.
Never: It means that Loan Performer will process all loan applications and loan disbursements without checking whether there are adequate funds available. When this option is selected, and disbursement are done against it when funds are insufficient the fund will run down to negatives.
Draws from Shares and/or savings: Your organization may use client's shares and/or savings as loan funds. If this is the case, you can set the percentage of shares or savings balances that are available for lending.
The system will pick the percentage set for savings, Shares and Time deposit and adds it to the available amount in the fund.
Please note that it means the % of the total shares and savings balances of all of your clients.
To save a new fund with all it's settings, press the Add button. If you have entered all the data correctly, you will get the message that the fund is saved and it had been assigned a certain number as a Fund Code. This number serves as an identity of the fund and once saved cannot be changed anymore. If you work with Monitoring Reports then at the point of setting targets the code, entered into a particular cell of the Excel targets file, will indicate that these targets are set for the fund identified by this code. The fund code is also used when the loan importation is done.
It is possible to modify or delete funds. The deletion is only possible if there were no loans disbursed from the fund and the fund had no contributions.
