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STRATEGIC PLAN

LCUNA

DEC. 16, 2013

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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

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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

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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

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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

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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

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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

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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*

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Paynesville Street P.O. Box 2428, Monrovia,

DEC. 16, 2013