Intern Report on System Analysis & Design (NGO in Bangladesh)

Metropolitan University, Bangladesh
7th Floor, Al-Hamra Shopping City, ZindaBazar,
Sylhet, Bangladesh
Submitted To
Mr. Choudhury M. Mukammel Wahid
Head
Department of CSE
Metropolitan University
Submitted By
Sadia Tasnim
Program: CSE
ID: 101-115-007
Internship Report
On
SYSTEM ANALYSIS OF MICRO CREDIT (NGO)

Letter of transmittal
Choudhury M. Mukammel Wahid
Head
Department of CSE
Sylhet
Subject: Submission of Internship Report on “System Analysis of Micro Credit (NGO)”
Dear Sir,
I have the pleasure to submit our Internship Report on “System Analysis of Micro Credit
(NGO)”. We feel ourselves delighted to get the opportunity to work with Micro credit. We
have gathered a vast knowledge and practical experiences about Micro credit Impact from
the Research work.
We have given our full concentration into the work with the hope to prepare a precise
report from the arena we have experienced and from your kind direction.
We will always be ready to respond if there is any point in this report that needs further
clarification.
Sadia Tasnim
Program: CSE
ID No. 101-115-007

Acknowledgment
At first I thank to our Almighty Allah for his inexpressible help for completing this report. It gives
us immense pleasure to think a large number of individuals for their cordial cooperation and
encouragement directly in preparing this thesis paper. I acknowledge all the persons who have
interacted with me. Without their help, this report writing would have been absolutely impossible
for us. So my sincere thanks to them for their cooperation and support.
I would like to thank Mr. Debraj Chowdhury, our honorable supervisor for guiding and
helping to make this internship report. This internship gave me the chance of working with
real life data, which helped me to acquire clear insight about the real life systems. It was a
thoroughly enjoyable experience.
I should also express my whole heartedly appreciation to all people who givee m excellent
support and attention in completing my internship report successfully.

TABLE OF CONTENT
CHAPTER ONE PAGE NO.
Introduction
i. Background of The Study 9
ii. Objective 10
iii. Methodology 10
iv. Limitation 10
CHAPTER TWO
Micro Credit System
i. Idea of Micro Credit 12
ii. General Features and Characteristics
of Micro Credit
12
iii. Structure of Micro Credit 13
CHAPTER THREE
Overview and Background of NGOs
i. Grameen Bank 15
ii. ASA 15
iii. BRAC 16
iv. TMSS 16
v. Shakti Foundation 16
vi. FIVDB 17
3.1 Institutional Framework 18
CHAPTER FOUR
System Analysis by Flowcharts and ER Diagrams
A. Description of the Working Procedure
i. Request for loan
ii. Saving
iii. Procedure For Loan
iv. Loan Approval
v. Loan Disbursement
vi. Loan Disbursement
vii. Savings Return
viii. Insurance
ix. Delete Loan
21
21
21
20
22
22
22
22
23
23
B. Flowchart of the Working procedure 24-30
C. Data Flow Diagrams 31-36
D. ER Diagram of the System 37

Description of the Tables
i. Members Database
ii. Passbook Information Database
iii. Group Information Database
iv. Area Database
v. Region Database
vi. Savings Information Database
vii. Saving Withdrawal Information Database
viii. Insurance Information Database
ix. Loan Type Information Database
x. Loan Proposal Information Database
xi. Loan Approval Information Database
xii. Loan Given Information Database
xiii. Loan Collection Information Database
xiv. Employee Database
xv. Employee Position Information Database
xvi. Department Information Database
xvii. Employee Daily Performance Information Database
xviii. Employee Type Information Database
xix. Group Meeting Information Database
38
39
40
40
41
42
42
43
44
44
45
46
47
48
50
50
51
51
52
E. Accounting System
a. Description of the Commonly-Used Accounts
i. Assets
ii. Liabilities
iii. Revenues
iv. Expenses
b. ER Diagram of Accounting System
Description of the Tables
i. Purpose Information Database
ii. Transaction Information Database
iii. Transaction Reference Details Database
iv. Reference Table Information Database
v. Mode Information Database
vi. Check Information Database
vii. Bank Transaction Information Database
viii. Bank Information Database
ix. Revenue Information Database
x. Revenue Type Information Database
xi. Expense Information Database
xii. Expense Type Information Database
xiii. Service Provider Information Database
c. Sample Forms of Account Books
53
54
55
55
56
57
57
58
58
59
59
60
60
61
61
62
62
63
64
CHAPTER FIVE
Conclusion
A. Findings & Recommendations 70
B. Bibliography 72

ABSTRACT
Micro-credit became a new phenomenon in the present world due to its recognition of an
efficient weapon to fight against poverty. A current investigation proved that, more than
1.3 billion inhabitants are struggling to earn a smaller amount one dollar ($1) a day where
they are captivated by extreme shortage of basic needs such as; food, cloth, shelter,
treatment and education. In the backdrop of global „double-dip‟ recession and over-
indebtedness crisis in microcredit sector in several countries, Bangladesh‟s microfinance
sector shows strong resilience and continues to contribute towards enhancement of
macroeconomic growth. Microcredit programs in Bangladesh is implemented by NGOs,
Grameen Bank, state-owned commercial banks, private commercial banks, and specialized
programs of some ministries of Bangladesh government. The main purpose of this paper is
to analyze the system of NGOs offering microcredit facility in metropolitan area of Sylhet
on the basis of using the collected data. BRAC, ASA, TMSS, FIVDB were chosen to
examine the approaches of microfinance system.

EXECUTIVE SUMMARY
NGO‟s are playing as enormous role in developing the economy of Bangladesh. For the
development of poor people NGO‟ have launched different programs like micro credit, water,
sanitation, non formal education, primary health care program, training program, agriculture
program, migration loan, human resource development program etc.
Accounting is updated on the daily basis where all vouchers are given separate serial number
and registered in proper books. For record keeping, usually ledger book, journal book, work
sheet, budget book, cash book are properly maintained. This report is sent to head office every
month and all the documents are archived for any audit in the future. Other than, the asset,
liabilities, equipments, stationary, advance salary, provident fund loan, interest, bonus,
depreciation, loan loss provision accounts are kept properly for accounting purpose. The
accounting system of NGO‟s is well maintained and transparency is ensured at all level.
The assignment is based on primary and secondary data collection from prescribe source
like financial statements, annual report books, an account, other record of various NGO‟s and
through conversation with different level executive of the NGO‟s.

INTRODUCTION
i. BACKGROUND OF THE STUDY:
Microcredit programs in Bangladesh is implemented by NGOs
like BRAC, ASA, Buro Bangladesh, FIVDB, Jagoroni Chakra Foundation,
Padakkhep Manobik Unnayan Kandra, RDRS Bangladesh, Shakti Foundation,
Society for Social Service, TMSS, UDDIPAN, state-owned commercial banks,
private commercial banks, and specialized programs of some ministries of
Bangladesh government. According to the basic statistics of July 2013, total 649
licensed NGO-MFIs are currently serving in Bangladesh, while licensed small sized
NGOs are 500 and small and medium NGOs are 127 in number.
Most of the NGOs in Bangladesh are still working in old way. The members
database, their saving, loan information, employees‟ information are recorded in the
stack of papers. Those documents are also not transparent enough. For tracking
down any member‟s or employee‟s information, there is no clear or transparent way
is provided. Although some of the leading NGOs like BRAC and FIVDB have
adopted software to maintain their financial activities and members database. But the
other small and medium sized NGOs are still lagging to endorse the systematic way.
This paper focuses on the analysis of micro credit system regarding NGOs working
in the metropolitan areas of Sylhet. Following this approach, this paper has structured
into Five Chapters. Chapter Two discusses about microcredit system, features and
characteristics of micro finance system, and the structure of micro-credit. Chapter
Three highlights overview of the NGOs, institutional framework and Chapter Four
discusses Flowcharts, data flow diagrams (DFD) of working procedure of the NGOs
and ER diagrams of the system. Also the sample forms of account books and
documents that are maintained in financial management are illustrated in Chapter
Four and finally, this report is concluded in Chapter Five with the findings of the
analysis and references used for documenting this report.

ii. SCOPE OF THE REPORT:
The presentation of the organizational structure and policy of
different NGOs and investigation of the strategic applied by provides the scope of the
report. An infrastructure of the organization has been detailed, accompanied by a
global. The scope of this report is limited to the overall description of the
company, its services, operations, organizational setup, function, and performance.
iii. OBJECTIVE:
a. To analyze the system and operations of various NGOs offering
micro credit.
b. To analyze the working procedure and accounting system.
c. Analyze the data collection and recommendation.
iv. METHODOLOGY:
a. Type of Research:
In this study, Descriptive research was undertaken to gain
insights and understanding of the NGO sector and also to
determine the attributes. After that a more comprehensive
conclusive research was undertaken to fulfill the main
purpose of the study.
b. Source of Information:
Different types of secondary data were elaborated in this
research. Sources of secondary information can be defined
as follows: annual report, prior research reports, booklet,
financial guide, NGO handbook etc.
v. LIMITATION:
The report is mainly based on publicly available data. Time is one of the
main limitation as well as company secrecy.

MICROCREDIT SYSTEM
i. IDEA OF MICROCREDIT:
Micro-credit is a financial service offering small loans to people who have
difficulty accessing credit through traditional bank sector. It is a small amount of loan
given to the poor to develop their standard of living. This small amount of loan can help
people to come out the cycle of poverty by generating income. Defining micro-credit, it is
a - “Financial service where small amounts of money (usually around $50-$150) are
loaned to poor people for use as a capital to start or expand small businesses”. This small
amount of loan or financial supports to the needy people helps to encourage setting up
free-businesses. In other way, it is a financial innovation system that comes from NGOs or
procedure which is based on trust and collateral-free and opposite to conventional banking
system. In order to get loan, people go to the conventional bank but the NGOs or other
institutions offering micro-credit approaches rootless or landless people‟s door steps.
Micro-credit summit was held at Washington DC on 2-4 February 1997,
adopted microcredit that, “Microcredit (mI-[*] Kro‟kre-dit); noun; programs extend small
loans to very poor people for self-employment projects that generate income, allowing
them to care for themselves and their families” - Microcredit Summit. So, micro-credit is
an extension of extremely tiny loan given to the rural poor villagers to assist them to be
identical human beings, so that they can operate small-scale business and can afford
shelter, food, education as well as treatment to their families.
ii. GENERAL FEATURES AND CHARACTERISTICS OF MICRO CREDIT:
Micro-credit has its unique characteristics, which are as follows:
 Mostly it is collateral free
 MFIs go to clients rather than clients going to MFIs
 Simplified savings and loan procedures
 Small size of loans and savings
 Repeat loans
 Loan size increases in the repeated loans or subsequent cycles

 Increase rate is usually in between money lenders and formal banks
 Repayment considers income from business as well as other sources
 Free use of loans (no restrictions on specified purpose)
 Loan and savings products within manageable numbers
iii. STRUCTURE OF MICRO CREDIT:
Figure 2: Microcredit Structure
Figure.2 shows the structures of micro-credit system. First step is to create
motivation that everybody has a potentiality to do and receive. Second step is to build up
the society and arranging training program. Third step is to give credit proposal then
distribute fund for personal investment. Gradually comes rest of the work such as; fund
collection, returns, operations and credit cost. Though interest is 20% but repayment is
98%. Interest rest is high because the NGOs giving door to door services and provides
exclusive training program for the borrower‟s and all activities are handled by the field
workers.

OVERVIEW AND BACKGROUND OF THE NGOs
i. Grameen Bank
The origin of Grameen Bank can be traced back to 1976 when
Professor Muhammad Yunus, Head of the Rural Economics Program at the University of
Chittagong, launched an action research project to examine the possibility of designing a
credit delivery system to provide banking services targeted at the rural poor. The action
research demonstrated its strength in Jobra (a village adjacent to Chittagong University)
and some of the neighboring villages during 1976-1979. With the sponsorship of the
central bank of the country and support of the nationalized commercial banks, the project
was extended to Tangail district (a district north of Dhaka, the capital city of Bangladesh)
in 1979. With the success in Tangail, the project was extended to several other districts
in the country. In October 1983, the Grameen Bank Project was transformed into an
independent bank by government legislation. Today Grameen Bank is owned by the rural
poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining
10% is owned by the government.
ii. Association for Social Advancement (ASA)
ASA is the second largest micro-finance NGOs in Bangladesh. It
started in 1978 with various types of development programs for the socio-economic
progress of the distress rural poor. But since 1998, ASA only serve micro-credit and
discarding all other social programs. ASA provides personal and group based micro-credit
with a 12.5% service charge over a year. ASA had made a successful women entrepreneur
in Dhaka and a role model in her group by started with a loan of Tk 10,000 from ASA in
2001.with the loan she bought sewing machines and started embroidery work for
boutiques and fashion houses. Now she has 10 sewing machines and 10 employees and
makes a profit of almost Tk 15,000 a month.

iii. Bangladesh Rural Advancement Committee (BRAC)
BRAC was founded in 1972 and one of the largest NGOs in the
world as of November 2012 and the pioneers in NGOs activities in Bangladesh.
Established by Sir Fazle Hasan Abed in 1972 soon after the independence of Bangladesh,
BRAC is present in all 64 districts of Bangladesh as well as in Afghanistan, Pakistan, Sri
Lanka, Uganda, Tanzania, South Sudan, Sierra Leone, Liberia, Haiti and The Philippines
as of 2012. What is unique about BRAC is its method of pulling people out of poverty. As
one author has said, “BRAC‟s idea was simple yet radical: bring together the poorest
people in the poorest countries and teach them to read, think for themselves, pool their
resources, and start their own businesses” (Barber). This is exactly what BRAC has done
and is still doing in Bangladesh and ten other poverty-stricken countries around the world.
iv. Thengamara Mohila Sabuj Sangha (TMSS)
TMSS has been firstly known as Thengamara Mohila Sangha from
1964 as a Social Development Organization. On 1980 Prof. Dr. Hosne-Ara Begum
reforms the organization as Thengamara Mohila Sabuj Sangha (TMSS) and gradually
emerged as the biggest national women organization in Bangladesh. TMSS engaged in
uplifting the living condition of the most distressed poor people particularly women and
children of both urban and rural areas. It is noteworthy that the above support programs
have direct favorable impact in creating an enabling environment for operating MF
programs successfully.
v. Shakti Foundation
Shakti Foundation was founded in 1992 by Humaira Islam,
PhD (the first woman CEO to start an urban credit program in Bangladesh) and a group of
men and women with a vision for change. A vision to bring qualitative changes in the lives
of women living below the poverty line, a vision to make these women independent,
socially active, self-sufficient entrepreneurs. Shakti's mission is to turn this vision into
reality. True empowerment of women is the ability to have the freedom

of choice for a quantitative life for herself and her family. Through its various programs
like Microfinance, Health, Women in Development (WID) etc, Shakti Foundation is
working at all levels to help women fight poverty and is helping them evolve, thus
contributing to a global shift towards gender equality. Shakti Foundation provides access
to credit and savings facilities for women living in urban slums. Shakti started its journey
in the slums of Dhaka in 1992 and it has come a long way since then, and now the
organization has coverage in almost all of the districts in Bangladesh.
vi. Friends in Village Development Bangladesh (FIVDB)
A friend in Village Development Bangladesh (FIVDB) is a non-
government organization. FIVDB has been working for the development of the
disadvantaged people since its inception in 1981. The organization was constituted in 1979
by a group of social workers then working with the International Voluntary Services
(IVS). The program presently focuses on non-formal adult learning, livelihood, financial
services and interactive primary education, juvenile justice, disaster preparedness and
response, early childhood development, preventative health care, water and sanitation.

3.1 INSTITUTIONAL FRAMEWORK
Figure.3 shows the institutional network that works in a NGO.
This network comes from the social network theory. This network consisted of two
networks one is focal and another is principle network. In micro-finance institutions each
network is closely connected. Principle network forms with four or five focal network and
controls the focal network. Besides, focal network is combined with five actors suggesting
five borrowers. Each and every borrower is closely connected by the hub. Here hub is the
controlling figure.
Figure 3: Institutional Framework of NGOs

System Analysis by Flowcharts and ER Diagrams
A. DESCRIPTION OF WORKING PROCEDURE:
The overall system of a micro finance organization can be illustrated in this
figure:
Overall System
Request
for loan
Saving Procedure
for loan
Approval Loan
Disbursement
Installment Savings
Return
Death
Insurance
Loan
Delete

i. Request For Loan:
When anyone wants loan from a NGO then he has to go to the PO or area
manager of his area or an existing group whose are already taken loan. If he goes to the PO,
then:
1. The PO personally judges the man‟s economic condition and also
asks others of the villagers about him. If everything is correct then
2. PO gives advice him to join a group.
3. Again asking for oral vote then other group members selected him by oral vote.
If the new member directly goes to the area officer then area manager assigns
him to his area‟s PO then the above process apply. If he goes to any existing group
to join for loan, then in the meeting existing group member propose for taking
the new member in their group and group members select him by oral vote.
ii. Saving:
As for taking loan one member has to save certain amount of money, so savings
are important issue for getting loan. For start saving her/him must fulfill this following
condition:
1. He must have to be a member of a group.
2. For loan he has to continue his savings for six months then he can apply for
loan.
3. Loan amount depends upon how much he saves in six months.
iii. Procedure For Loan:
While giving loan to a new member the earning sources of that member,
economic condition are checked by PO and sometimes by area manager. Here mainly
checked is if he gets loan whether he would be able to give back the loan installment and if
he got enough savings to get a loan. For loan he has to continue savings for six months then
he can propose for loan. Loan amount depends upon how much he saves in six months.

iv. Loan Approval:
When request for loan is accept then a member propose for a certain
amount of loan. Area manager approve the loan. If area manager thinks that loan amount
exceeds limits then he can reduce the amount and approve that much amount of
money as loan.
v. Loan Disbursement:
For loan disbursement, these following steps are followed:
1. Accountant get one loan approved copy from Area manager.
2. Member comes with loan approval paper to the accountant for money.
3. Accountant cross checks both loan approved paper which are found
from Area manager and member.
4. If everything is OK then accountant gives that amount of money to
the member as loan.
vi. Loan Installment:
After getting the loan money after the very first week that member has to give
back his first installment amount as the installments must be paid in every week. Loan
amount has to be paid within the time frame provided by the NGO.
vii. Savings Return:
If any member wants his savings back then he has to inform it to PO, then PO
informs it to the area manager. Then the area manager ask for corresponding data of
that member from accountant. The main criteria of savings return is the amount of loan
must less than the savings. If these criteria are met then area manager informs this to the
regional manager and regional approves amount of savings return.

viii. Insurance:
When one existing member died then his or her nominee will be allowed to get
the insurance. Before getting insurance amount, Area manager has to ensure two things:
1. The death person‟s must have authorized nominee.
2. His or her loan installment has been paid properly.
3. His membership is renewed yearly basis.
After getting the permission from Area manager, the nominated person can get this
insurance.
ix. Delete Loan:
If any member does not want to continue the loan account any more or if loan
installment is completed then PO is informed about it. The PO informs it to the area
manager and the area manager takes the information about that member from accountant.
Then after balancing the loan and savings when the entire amount becomes zero then
member is deleted.

B. FLOWCHARTS OF THE WORKING PROCEDURE
i.
Area Manager Get
request from P.O
Program organizer gets
the request for loan
Oral Selection
for Group
Have enough
saving?
Request cancel Have any
group?
Loan
Assign
Have another
request for
Loan?
Delete Loan
Request CancelNo
NoNo
No
Yes
Yes Yes
Yes
Procedure for Loan
Fig: Flowchart of Request for Loan

ii.
iii.
Program organizer get
proposal for loan from P.O
Area manager get proposal
for loan from P.O
Fig: Flowchart of Loan Approval
Loan does not approved
Propose amount OK
accounting to saving?
Loan approved
Program organizer takes the
installment and saving
Post in into the computer
Installment saving
saved by account
Fig: Flowchart of Installment

iv.
Program organizer get
request for saving
Have any group?
Area Manager get the request
for saving from P.O
Have any group?
Saving Start
Request Cancel
Fig: Flowchart Request for Saving

v.
Request for saving return to the P.O
Area Manager Get request
Posted in into the Account Regional Manager
Regional Manager Monitor
saving balance
Calculation with loan Saving Return
Return Saving
Request Close
Fig: Flowchart of Saving Return

vi.
P.O get request for loan
delete
Area Manager Get request from
P.O
Is balance adjusted
with loan and
saving?
Regional manager get request from A.M
Is both
true?
Check whether
savings are adjusted
to loan or not saving?
Request cancel
Loan delete
Is balance adjusted
with loan and
saving?
Yes
Yes
Yes
No
Fig: Flowchart of Loan Delete

vii.
Request for death insurance to the P.O
Did he renew membership
every year?
Did he give installment
regularly?
Death insurance
cancel
Fig: Flowchart of Death Insurance
Disbursed death insurance
Area manager get request from P.O

viii.
Micro Credit Program
Employee
Departments
Field level Management HRM Account Audit Marketing
Field officer
Credit officer
Program assistant
S.R. Program assistant
Junior Program officer
Program organizer
Group committee
President Secretary Treasurer
Branch Manager
Senior Branch
Manager
Area Manager
Director of
Regional Manager
Regional Manager
Coordinator
Savings
Loan
Salary
Fig: Flowchart of Employee

C. Data Flow Diagrams (DFD)
Customer
AccountService
Employee
Microcredit
system
1 2
3
5
Fig: Data Flow Diagram (Level 0)
4
Customer
Service
Employee
Microcredit
system
1 2
5
Fig: Data Flow Diagram (Level 1(4.1))
Expanse Revenue
3
4.1 4.2
Account
4

Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
Fig: Data Flow Diagram (Level 1 (5.1))
Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
Fig: Data Flow Diagram (Level 2 (5.1.1))
Micro Enterprise Micro Credit
5.1.1 5.1.2
Insurance5.3
Insurance
5.3

Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
5.1.1 5.1.2
Insurance
5.3
Primary Special 5.2.35.2.1

Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
5.1.1 5.1.2
Insurance
5.3
Primary Special
5.2.35.2.1
Capital
cost
Stuff
cost
Core
cost
Operational
cost
4.1.1 4.1.2 4.1.3 4.1.4
2

Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
5.1.1 5.1.2
Insurance
5.3
Primary Special
5.2.35.2.1
Capital
cost
Stuff
cost
Core
cost
Operational
cost
4.1.1 4.1.2 4.1.3 4.1.4
2
Saving
collection
4.2.1
Loan
collection
4.2.2

Customer Employee
Microcredit
system
1 2
3
Service
5
Expanse Revenue
4.1 4.2
Account
4
Loan Savings
5.1 5.2
Daily
Weekly
Monthly
5.1.1 5.1.2
5.2.1.1
5.2.2.2
5.2.3.3
Insurance
5.3
Primary Special
5.2.35.2.1
Capital
cost
Stuff
cost
Core
cost
Operational
cost
4.1.1 4.1.2 4.1.3 4.1.4
2
Saving
collection
4.2.1
Loan
collection
4.2.2

D. ERD (Entity Relationship Diagram) of the System

DESCRIPTION OF THE TABLES
i. Members Database
This database holds information about the members. Whenever a
new member is to be stored or existing member information needs to be modified
then this database is examined and reviewed by the accountants. Each member is given
a specific identity number members ID, which is the primary key. This database
maintains a relation with the Group information database, area information database
and region database because this database reflects the relation of which member is
included in which group, region and area. Member‟s name, sex, age, occupation,
national ID card no, joining date (which date a member is joining the organization),
renew date (if the member renews the membership then this field is applicable)
member‟s fee (which describes when a person become a member he/she needs to give a
fixed amount of money to become a member of the organization) and finally status
(describes whether the member is active or inactive in the company) are controlled here.
Table Name: Members Database
Description: Stores Information about the previous members and current members
Fields: Primary key (Member id)
Field Name Domain
Member id String
Member Name String
Gender String
Age String
Joining Date Date
Renew Date Date
Date of Birth Date
National ID No String
Occupation String
Phone Number String

Group id (Foreign Key) String
Address String
Status String
ii. Passbook Information Database
When a member gets a loan, he/she gets a passbook, Every week
when he/she pays back the money and saving the credit officer keeps track of all
the information like, date of payment, amount given or paid back, amount due and
saving in the passbook. The fields are passbook no (primary key), issue date and member
id from the members table. A member may have several passbook (but at a time one
is active). When a passbook is finished or lost he/she can apply for another passbook. A
member must have a passbook.
Table Name: Passbook Database
Description: Stores Information about of passbook of members
Fields: Primary key (Passbook No)
Field Domain
Passbook No String
Issue Date Date
Member id (Foreign Key) String
Area id (Foreign Key) String

ii. Group Information Database
Areas Monitoring Unit consists of a number of groups. Each group
works only in a specific area and maximum forty members is under a group. Each group is
given a specific identity number, Group id, which is the primary key in this database. The
database maintains the relation which organization is working under which area and
region and which credit officer is responsible for this group and the date of setup of
the group. This relation is important in tracing out an group is under a region, area
and who is the in charge of the organization.
Table Name: Group info
Description: Stores Information about the group
Primary key: Group id
Field Domain
Group id String
Setup Date String
Area id String
Employee id (Foreign Key) String
iii. Area Database
This database keeps records of areas under a region. Each area
within a region has its entry. An area is identified by its Area ID and is maintained at the
respective regions

Table Name: Area information
Description: Stores Information of Branch or Area
Primary Key: Area id
Field Domain
Area id String
Area Name String
Region id (Foreign Key) String
iv. Region Database
This database relates each region with their specific id. The size of
this database is usually fixed unless the NGO‟s micro credit office decides to increase the
number of regions in Bangladesh.
Table Name: Region Table
Description: Stores Information of Region
Primary Key: Region id
Field Domain
Region id String
Region Name String

v. Savings Information Database
When a member saves money, this table keeps the track of all the
information of his saving. The fields are saving id, amt collected, collection date, group id
and area id. From saving id, we shall know what is his/her saving target, from group id it
can be known that member belongs to which group.
Table Name: Saving Collection Information
Description: Stores Information about the Saving Collection of Members
Primary Key: None
Field Domain
Saving id (Foreign Key) String
Amount Collected Double
Collection Date Date
vi. Saving Withdrawal Information Database
This is the table for paid back money to the members when the
members want to withdraw their savings money. When the office gives back the saving
money to the members, he needs to know loan id and saving id.
Table Name: Saving Withdrawal Information
Description: Stores Information of Saving Return
Primary Key: None
Field Domain

Amount of Withdrawal Double
Date Date
vii. Insurance Information Database
This is the table for keeping track the information of the nominee
of the members. This is needed because when a member will die, how his money will be
given back. The fields are insurance id (primary key), member id, nominee name, relation,
age, address, duration, distribution rate. Some NGOs have a policy, which is when an
active member die, they will give those member fixed amount of money.
Table Name: Insurance Information
Description: Stores Information of insurance nominee members
Primary Key: insurance id
Field Domain
Insurance id String
Nominee Name String
Relation String
Age String
Address String
Duration Integer
Distribution Rate Double

viii. Loan Type Information Database
NGOs offering micro credit have different types of loan. This field keeps track
of the entire loan name and the interest rate. The fields are loan type id, type name, interest
rate and number of installments.
Table Name: Loan Type Information
Description: Stores Information of type of loan
Primary Key: Loan Type id
Field Domain
Loan Type id String
Loan Type Name String
Interest Rate Integer
No of Installments Integer
ix. Loan Proposal Information Database
This table keeps track of how many people have applied for loan.
When a member has fulfilled the saving criteria, he can apply for the loan. The fields are
proposal id, saving id (shows how much money the member has saved), scheme id (used
to see which scheme a member has applied for loan), duration, date of application,
principle amount applied (how much money a member wants), installment amount (how
much money the member is giving back every week), no of installment, loan type id
(which type of loan the member wants to get) and saving id. We can also get the member
information from saving id because in saving information table, member id is the foreign
key. The employee id field is used to know which employee is responsible for reviewing
and approving this proposal. This database maintains a relation with the area information,
group information, loan type information, saving information database.

Table Name: Loan Proposal Information
Description: Stores Information of loan proposal
Primary Key: Proposal id
Field Domain
Proposal id String
Scheme id (Foreign Key) String
Loan Type id (Foreign Key) String
Duration String
Date of application Date
Amount Applied Integer
Installment Amount Integer
No of Installment String
x. Loan Approval Information Database
This table keeps track of how many loan are given in a group and
how much loan are given in a particular branch. The fields are loan id, proposal id,
sanction date, sanction amount, installment amount, employee id (this field is used to see
which employee has approved this loan), no of installment, remarks. Here some fields are
same as loan proposal table but they are not same because the area manager can set
different installment amount, no of installment and amount. This database maintains a
relationship with the loan proposal information database and employee information
database.

Table Name: Loan Approval Information
Description: Stores Information of loan approval
Primary Key: Loan id
Field Domain
Loan id String
Proposal id (Foreign Key) String
Sanction Date Date
Sanction Amount Double
Installment Amount Integer
No of Installment Integer
Ending Date Date
xi. Loan Given Information Database
This table is used for get the information about the given loan to a
member. The accountant gives the money to the members. So the employee id is used
here. Loan given date is kept here because loan approval date and loan given date may not
be the same. The fields are loan id, member id, employee id, loan type id, area id, group
id, amount given, loan target, loan status, loan overdue, total due, loan balance, date and
advanced payment. This table keeps relation with member information, group information,
loan type information, loan approval information, employee information and area
information database.

Table Name: Loan Given Information
Description: Stores Information of Loan Disbursement
Primary Key: None
Field Domain
Loan id (Foreign Key) String
Loan type id (Foreign Key) String
Amount Given Double
Date Date
Loan Target Double
Loan Status String
Loan Overdue Double
Loan Balance Double
Advanced Payment Double
xii. Loan Collection Information Database
Every week a member repays his loan. This field is used for
keeping track of which member is giving back money in which date and which employee
is collecting the money. The fields are loan id, member id, employee id, group id, area id,
collection date and amount collected.

Table Name: Loan Collection Information
Description: Stores Information of Loan Collection
Primary Key: None
Field Domain
Loan id (Foreign Key) String
Amount Collected Integer
Date of Collection Date
xiii. Employee Database
This database holds information about the employees. Each
employee is given a specific identity number Employer ID, which is the primary
key. This database maintains a relation with the Group Information database,
Department database, Employee Position database, Employee Daily Performance
database, Saving Collection Information database, Loan Approval Information database,
Loan Collection Information database, Loan Proposal Information database because this
database reflects the relation of which employee is working in which group, region
and area and which employees are approving and collection the loan. Employee‟s name,
sex, age, occupation, national ID card no, joining date (which date a employee is
joining the organization), ending date (which date a employee is leaving the
organization) and finally status (describes whether the employee is active or inactive in
the company) are controlled here.

Table Name: Employee Database
Description: Stores Information about the previous and current employee
Primary key: Employee id
Field Name Domain
Employee id String
Employee Name String
Gender String
Age String
Date of Birth Date
National ID No String
Phone Number String
Address String
Email Address String
Joining Date Date
Ending Date Date
Status String
Department id (Foreign Key) String
Position id (Foreign Key) String
Employee Type id (Foreign Key) String
Date of Creation Date
Date of Modification Date

xiv. Employee Position Information Database
This table contains the information of employee‟s designation or
position. Position id is the primary key and the database also it holds the position‟s name.
Table Name: Employee Position Information Database
Description: Stores Information about the position of the current employees
Primary key: Position id
Field Name Domain
Position id String
Position Name String
xv. Department Information Database
This table holds the information about the departments of a NGO.
The primary key is department id.
Table Name: Department Information Database
Description: Stores Information about the departments
Primary key: Department id
Field Name Domain
Department id String
Department Name String

xvi. Employee Daily Performance Information Database
Employers’ daily performance information is controlled by this
table. This database holds daily work hour, attendance of the employees.
Table Name: Employee Daily Performance Information Database
Description: Stores Information about the performance of the employers
Primary key: Employee Daily Performance id
Field Name Domain
Employee Daily Performance id String
Attendance Status String
Starting Time String
Ending Time String
xvii. Employee Type Information Database
An employee of the department is working permanently or
temporarily can be known from this table.
Table Name: Employee Type Information Database
Description: Stores Information about the type of the employers
Primary key: Employee type id
Field Name Domain
Employee type id String
Employee type name String

xviii. Group Meeting Information Database
This database tracks information about the weekly and
monthly group meeting. Total attended members, absent members, employee who
conducted the meeting, meeting agendas etc are included here.
Table Name: Group Meeting Information Database
Description: Stores Information about the group meeting
Primary key: None
Field Name Domain
Attendance Status String
Total Attended Status String
Date Date
Agenda String
Decisions String

E. Accounting System of the NGOs
Description of the Commonly-Used Accounts
i. ASSETS
 Cash and Cash Equivalents: Cash comprises cash on hand, petty
cash funds as well as local or foreign currency deposits in banks that are immediately
available for use in the current operations.
 Cash On Hand: This account represents undeposited cash and
check collections. It is good practice to deposit collections/amounts received intact the
following day. The deposit of the cash and check collections could be done
simultaneously with other banking transactions.
 Cash in Bank: This account is credited for all
collections/amounts deposited and other transactions credited by the bank. It is
debited for all check disbursements or withdrawals and debit memos from the bank.
 Cash equivalents: This account represents funds available for
current operational requirements, which are temporarily invested with financing
institutions on a short-term arrangement.
 Receivables: Receivables are valued at the outstanding balance at
which they are to be collected. The amount is reduced by an estimated allowance for
doubtful accounts determined based on net realizable value of the receivables.
 Advances to Officers and Employees: The Advances to Officers
and Employees account represents cash and other forms of advances (like telephone
bills etc.) to the officers and employees, subject to liquidation or payroll deductions.
 Loans Receivable: These are loans made to borrowers beyond
one year but not exceeding 3 years, inclusive of the 6 month grace period on principal
payment.
 Prepaid Expenses: Prepaid Expenses account represents
expenditures, often recurring, paid in advance for benefits yet to be received such as
insurance, rent, interest and others. The account is debited for the portion of expenses
paid in the current month but which applies to the succeeding months. Credit to this
account is made for the portion of the expenses that has expired.
 Accumulated Depreciation: Prepaid Expenses account represents
expenditures, often recurring, paid in advance for benefits yet to be received such as

insurance, rent, interest and others. The account is debited for the portion of expenses
paid in the current month but which applies to the succeeding months. Credit to this
account is made for the portion of the expenses that has expired. Depreciation
allowance is credited to the related accumulated depreciation of the capital assets.
This account is debited for amounts previously provided for on assets sold, disposed,
retired or written-off.
ii. LIABILITIES
 Accounts Payable-Trade: The Accounts Payable-Trade account
represents the total of unpaid bills due to suppliers and others at the end of each
month for support, services and/or materials received but not yet paid for. This
account is credited for purchases of materials, supplies and equipment on credit or for
services received which remain unpaid at the end of each month and debited for
payments made and discounts granted by suppliers.
 Accounts Payable-Employees: Employees‟ Payables account
includes unpaid salaries and bonuses, vacation leave credits incurred during the year.
 Accrued Expenses: The Accrued Expenses account represents
estimated amounts due for services and/or supplies/materials already received but
which remain unpaid for at the end of the month or at year end, such as salaries and
wages, rent and interest, which are credited to this account.
 Advances from Officers/Employees: The Advances from
Officers account represents cash or other forms of advances made by the
officers/employees. This account is credited for the amount advanced by the
officers/employees and debited for any payment made to them.
 Other Current Liabilities: Other payables include other
liabilities incurred which amount are readily determined from available documents,
i.e., billings, amounts withheld from employees, or other parties for taxes and for
contributions to pension funds.
 Deferred Revenue/Support: This account is credited when cash
is received prior to either having earned the revenue or the right to keep the revenue.
It is debited when earned and the corresponding credit to revenue or support is made.

iii. REVENUES
 Grants: This refers to funds (or equivalent) given by donors for a
specific program/project with certain conditions relating to the operating activities.
Grants should be recognized as revenue or support over the periods necessary to
match them with the related costs or expenses incurred for the purpose for which they
are intended.
 Donations: This refers to unrestricted contributions in cash or in
kind or services from donors to be used in accomplishing the purposes for which the
NPO has been created or organized and over which the Board has discretionary
control.
 Other Income: This account represents income earned from
sources other than from operations. Examples include interest from savings accounts
and other money market placements or investments, gain on sale of fixed assets and
foreign exchange gain or losses and other miscellaneous items.
iv. EXPENSES
 Program/Project Expenses: This refers to all program
implementation costs or those expenses relating to program/project service activities
that result in services (or goods) being given to beneficiaries or members that fulfill
the basic mission of the NGO. There can be more than one category of program
services.
 Program/Project Support Activities Expenses: This pertains to
expenses incurred for activities necessary to support or assist program implementation
which include capability building, information management, policy advocacy,
networking of project proponents, partnership building, investment promotion, project
development, assessment, approval, monitoring, and evaluation; and provision of
technical assistance.
 Administrative Expenses: General expenses relate to activities
such as oversight management, general record keeping, office maintenance, and
similar expenses. Human resource development pertains to expenses incurred for the
purpose of developing and consolidating the NGOs‟ board of trustees, management,
and staff such as those expenses incurred for staff training and development.

v. ER DIAGRAM OF ACCOUNTING SYSTEM
TransectionInfo
PK TransectionId
amount
FK1 PaymentId
UserId(FK)
DOC
DOM
PurpuseInfo
PK PurposeId
PurposeName
UserId(FK)
DOC
DOM
ReferenceTableInfo
PK RefTableId
RefTableName
FK1 RevId
FK2 ExpId
FK3 PurchaseId
UserId(FK)
DOC
DOM
PaymentDetail
PK PaymentId
amount
FK1 PurposeId
FK2 RefTableId
FK3 ModeId
FK4 CheckId
UserId(FK)
DOC
DOM
RevenueTypeInfo
PK RevTypeId
RevName
UserId(FK)
DOC
DOM
RevenueInfo
PK RevId
FK1 RevTypeId
TotalAmount
Paid
RevProviderName
UserId(FK)
DOC
DOM
ModeInfo
PK ModeId
ModeName
UserId(FK)
DOC
DOM
ExpTypeInfo
PK ExpTypeId
ExpTypeName
UserId(FK)
DOC
DOM
ExpInfo
PK ExpId
FK1 ExpTypeId
TotalAmount
Paid
Doc
Dom
ExpProviderName
UserId(FK)
PurchaseTypeInfo
PK PurTypeId
PurTypeName
UserId(FK)
DOC
DOM
PurchaseInfo
PK PurchaseId
FK1 PurTypeId
TotalAmount
Paid
DOC
DOM
PurchaseProviderName
UserId(FK)
CheckInfo
PK CheckId
CheckAccNum
CheckAccName
CheckBank
CheckMyBank
CheckAmount
AchiveDate
Status
TotalPaid
UserId(FK)
DOC
DOM
BankTranInfo
PK BankTranId
TranStatus
TotalAmount
FK1 ModeId
FK2 CheckId
FK3 BankId
UserId(FK)
DOC
DOM
BankInfo
PK BankId
BankName
BankAddress
UserId(FK)
DOC
DOM

DESCRIPTION OF THE TABLES
i. Purpose Information Database
Table Name: Purpose Info Database
Description: Stores Information about the Purpose
Primary Key: Purpose id
Field Name Domain
Purpose id String
Purpose name String
Date of Creation Date
ii. Transaction Information Database
Table Name : Transaction Information Database
Description: Stores Information about the Transaction
Primary Key: Transaction id
Field Name Domain
Transaction id String
Amount String
Transaction Reference id (Foreign Key) String

iii. Transaction Reference Details Database
Table Name : Transaction Reference Details Database
Description: Stores Information about the Transaction Reference Details
Primary Key: Transaction Reference id
Field Name Domain
Transaction Reference id String
Amount String
Reference Table id String
Purpose id (Foreign Key) String
Check id (Foreign Key) String
Mode id (Foreign Key) String
iv. Reference Table Information Database
Table Name : Reference Table Information database
Description: Stores Information about the Reference Information
Primary Key: Transaction Reference id
Field Name
Domain
Reference Table Id String
Reference Table Name String

v. Mode Information Database
Table Name : Reference Table Information database
Description: Stores Information about the Mode Information
Primary Key: Mode id
Field Name
Domain
Mode Id String
Mode Name String
vi. Check Information Database
Table Name : Check Information database
Description: Stores Information about the Check Information
Primary Key: Check id
Field Name
Domain
Check id String
Check Account Number String
Check Account Name String
Check Bank String
Check amount String
Achieve Date Date
Status String
Total paid String

vii. Bank Transaction Information Database
Table Name : Bank Transaction Information database
Description: Stores Information about the Bank Transaction
Primary Key: Bank Transaction id
Field Name Domain
Bank Transaction id String
Transaction Status String
Credit Amount
String
Debit amount String
Check id (Foreign Key) String
Mode id (Foreign Key) String
Bank id (Foreign Key) String
viii. Bank Information Database
Table Name : Bank Information database
Description: Stores Information about the Bank
Primary Key: Bank id
Field Name Domain
Bank id String
Bank Name String
Address String
Branch String

ix. Revenue Information Database
Table Name : Revenue Information database
Description: Stores Information about the Revenue
Primary Key: Revenue id
Field Name Domain
Revenue id String
Revenue Type id (Foreign Key) String
Debit Amount String
Revenue Provider Name String
x. Revenue Type Information Database
Table Name : Revenue Type Information database
Description: Stores Information about the Revenue Type
Primary Key: Revenue Type id
Field Name Domain
Revenue Type id String
Revenue Type Name String

xi. Expense Information Database
Table Name : Expense Information database
Description: Stores Information about the Expense
Primary Key: Expanse id
Field Name Domain
Expense id String
Expense Type id (Foreign Key) String
Credit Amount String
Paid String
Date of creation Date
Service Provider id (Foreign Key) String
xii. Expense Type Information Database
Table Name : Expense Type Information Database
Description: Stores Information about the Expense Type
Primary Key: Expense Type id
Field Name Domain
Expense Type id
String
Expense Type Name String

xiii. Service Provider Information Database
Table Name : Service Provider Information Database
Description: Stores Information about the Service Provider
Primary Key: Service Provider id
Field Name Domain
Service Provider id String
Service Provider Name String
Service Provider Organization String

vi. Sample Forms of Account Books
 CASH BOOK
 LEDGER

 FIXED ASSETS REGISTER
 PAYMENT VOUCHER

 STOCK BOOK REGISTER

CONCLUSION
A. Findings and Recommendations
Day by day the popularity of NGO sector is increasing. Accounting
system of NGOs is the same but ways of providing services are different. So consumers
choose their NGOs based on their needs and satisfaction. Because of financial viability,
both the NGOs and consumers are conserved in approach of disbursing and taking
credits. Thus following a strict policy, maintaining a good system of members,
employees, accounting and other activities is a must for every NGO operating in
Bangladesh.
During the study period, conducting the microfinance management process, the
following facts have been noticed to us :
 The overall working system of small and medium sized NGOs is
inadequate and unstable.
 Financial activities of the NGOs are documented in papers which are not
transparent and clearly available to the members.
 Observing employees‟ performance over a time has little or no scope.
 Tracking down of any previous member‟s or employee‟s information is
done in a disorganized, chaotic way as there is no systematic database is
followed.
 Due to the scattered system, information confidentiality, integrity, and
availability are not protected.

Based on the findings, we have some recommendations to implement in the system of the
NGO-MFIs to make it more consistent, reliable, efficient and more secured. These are as
follows:
 The NGOs should maintain digital preservation of the information rather
than document them in stacks of paper.
 The overall system should be an organized, systematic one to provide
integrity and availability.
 Maintaining a precise, standardize database of members and their
financial activities is a must.
 For looking up employers‟ information, their work hours, salary etc,
methodical, systemized database should be maintained.
 The financial activities and account management should be done
according to a systemized way to maintain integrity and confidentiality.
The first phase of software engineering is to analyze the system. Analyzing system is done
in order to identify its goals and purposes and create systems and procedures that will
achieve them in an efficient way. In this report, we have done preliminary analysis of the
system of NGOs using Fact Finding Techniques, Functional Modeling I (Data Flow
Diagrams), Data Modeling Techniques (Entity Relationship Diagrams). We hope that this
analysis would be valuable, cooperative and a significant help to develop an applicable
software for the NGOs.

B. BIBLIOGRAPHY
 Document of the World Bank, Poverty Reduction Strategy Paper, Bangladesh,
Report no. 34448-bd, joint IDA-IMF staff advisory note, December 29, 2005
 http://www.bangladesh-bank.org
 http://www.greenstar.org/microcredit/microcredit-brief.pdf
 BRAC micro credit information, available online at http:// www.brac.net
 Md. Khaled Shukran, Farhana Rahman. (2011), “A Grameen Bank Concept:
Micro-Credit and Poverty Alleviation Program in Bangladesh‟‟
International Conference on Emerging Trends in Computer and Image Processing
(IETCIP‟2011)
 Jeffrey A. Hoffer, Joey F. George, Joseph S. Valacich, Modern Systems
Analysis and Design, Delhi 110 092, India, Pearson Education (Singapore) Pte
.Ltd.
 Rogers. Pressman, Software Engineering: A practitioner‟s approach, New
York, NY, 10020: The McGraw-Hill companies, inc. Delhi 110 092, India,
Pearson Education (Singapore) Pt .Ltd.

Intern Report on System Analysis & Design (NGO in Bangladesh)

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