GUIDELINES
FOR
MASTER BOOK KEEPER CUM AUDITOR (MBK)
Odisha Livelihoods Mission
Panchayati raj Department, Govt. Of Odisha
MASTER BOOK KEEPER GUIDELINE
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1. Introduction
Building, nurturing, and strengthening community-based institutions is an
important component for creating a system for sustainability in the developmental
processes being undertaken in an area. Under its Institution Building component,
Odisha Livelihoods Mission (OLM) plans to develop several community level
institutions. These institutions shall be strengthened through regular capacity building
and handholding support for ensuring quality performance and sustainability in the
long run. These institutions may be in the form of SHGs, CLFs, GPLFs and Producer
Organization etc. Gram Panchayat Level Federation (GPLF), a Gram Panchayat
level platform of SHGs consisting of all the CLFs & SHGs of that concerned Gram
Panchayat. To strengthen GPLF, maintenance of books of account, audit of SHGs
books of account and preparation of financial reports are the key areas to look after.
For this purpose project shall insist GPLF to hire a person, who is the member of
concerned Gram Panchayat Level Federation or in extreme case a female/male
candidate from their local community can act as a bookkeeper coined as Master
Book Keeper cum Auditor (MBK) at GPLF level who will maintain and prepare
financial reports of concerned GPLF, impart finance & record keeping training as well
as valuable guidance to CRP-CM and do yearly audit of SHGs books of account.
The strategy proposes to engage one MBK at the GPLF level. MBK will write books
of account of GPLF impart finance & record keeping training to CRP-CM and conduct
audit of the SHGs coming under the respective GPLF on yearly basis.
3. Roles and responsibility: S/he will attend each GPLF meeting regularly and write
& update the minute’s book as well as the books of accounts (like cash book, ledger,
assets register, cheque book register, preparing vouchers, etc) on a regular basis.

S/he will also maintain other records of GPLF for e.g. register relating to Food
Security Fund, Health Risk Fund, records of other activities taken up by the
GPLF in course of time.

S/he will audit accounts of member SHGs on yearly basis spread over a
period of one year time.

S/he will prepare annual financial statements of the GPLF that include income
and expenditure statement, receipt & payment statement and balance sheet.
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
Prepare monthly trial balance of GPLF.

Assist in conducting annual audit of the GPLF.

S/he will update the member wise financial data of each SHG to be treated as
the opening balance on a cut-off date: one time activity

S/he will support the CLFs in selection of CRP-CM

S/he will provide training (including refresher training) to the CRPs (writing the
SHG book of accounts) on SHG accounting as well as provide handholding
support to them as per the requirement.

S/he will be responsible for collection of SHG wise consolidated financial
statement every month from the CRPs in a common meeting organized at the
GPLF level.

S/he will collate all the SHG transactional/ financial data and submit it at block
level for entry (initially on a monthly basis, but with the MIS in place the
frequency of the collation may be reduced to weekly basis).

S/he will collect the printed report from block and share it with the GPLF and
CLF as well as with the CRPs for dissemination of the SHG level analysis.

S/he will help in assessment/gradation of CLF and GPLF annually.

S/he will check and review the MIP formats ( whether they are properly filled
up or not, whether calculations are done correctly, whether the members has
put on their signatures at all required places, etc) of all SHGs submitted at
GPLF level.

S/he will participate in specific training programs organized by GPLF
members’ suiting to her job chart.

S/he will communicate the GPLF members in a sensitive manner.

S/he is bound to execute the decision taken by GPLF.

S/he will be a resource person in CRP-CM training program related to books
of account/record keeping.

S/he will work closely under the guidance of GPLF office bearers.

S/he shall write the GPLF (GB, RGB & EC meeting minutes if directed by the
GPLF)
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However,
S/he shall not interfere in the decision making process of the GPLF.
S/he shall not impose any pre-conceived notion or opinion on any GPLF
members.
4. Eligibility Criteria of MBK
The MBK should fulfill the following eligibility criteria.

Should be a woman, preferably an SHG member

Must be a Matriculate.

Age must be 18 years or above.

Must belong to the same GP.

Should have good written and accounting skills with good computing
abilities.

Should have sensitivity toward poor women.

Should not be office bearers of any SHG/CLF/GPLF.

She should not hold any political office or have been employed by
GO/NGO either on part-time or full time basis.

In schedule area ST candidate will be selected, if ST candidate not
available then order of preference will be given to 1.SC 2. Minority 3.Other.

Shakti Sahayikas promoted under Mission Shakti or any other person
providing bookkeeping services to the concerned GPLFs are encouraged
to apply.
NOTE:

In response to the notice given by the GPLF, if applications are not
received from eligible women candidates or Shakti Sahayika or concerned
GPLF working women person, then GPLF will give another notice where
male members may also be encouraged to apply.

During the selection process priority should be given to eligible PWDs

In case a leader of SHG or an office bearer of a CLF/GPLF is selected, she
must withdraw from such position before taking up the role of MBK
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In case she is working as a CRP-CM, she will resign from that position
before taking up the MBK assignment.

If a full time employee of any Govt. / Non-Govt. organization, has to give
resignation from either post.

If ST/ SC candidates are not available in schedule area, candidates from
other category will be considered.
5. Order of Preference for short listing MBK.
If adequate numbers of application (at least three) are not received from the SHG
members or Shakti Sahayika or concerned GPLF community women worker
(women) then application may be considered in the following order:
i.
Person with disability (having no mobility constraint)
ii.
women family member of an SHG member;
iii.
any educated women in that GP;
When adequate numbers of applications (at least three) are received, from SHGs or
Shakti Sahayika or concerned GPLF community worker (women), then other
categories of applications will not be considered for the further selection process.
6. Selection Procedure
The selection of MBK is the primary responsibility of the GPLF. All such interested
candidates will be assessed through aptitude and attitude tests. A merit list will be
prepared for those who have secured the minimum qualifying marks (more than or
equal to 50%) in written test (objective & subjective) considering total secured marks
(marks (written Test + wellbeing grouping or ST /SC/minority as case may be +
including disability factor + Interview+ Shakti Sahayika or working for the concerned
GPLF experience). The person who has secured highest mark will be selected for the
post of MBK. In case of equal mark the candidates are prioritized in the following
order
I)
Person with Disability (PWD),
II)
EPVG/TRIBAL,
III)
Schedule caste/ minority
IV)
Daughter /Son of SHG member,
V)
Age –life experience will be given preference(elder one)
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The selected candidate will be put through a four days residential basic orientation
programme at the GP/block/district level. In case of resignation of expelling of the
person continuing as MBK, the next person in the merit list will be called for
engagement by GPLF.
7. Skill test for screening of MBK cum Auditor
The Selection process will be led by the GPLF & they will constitute the Screening
Committee taking five members from the GPLF-EC including the President/
Secretary by ensuring the representation of Poor/ EPVG and SC/ ST in that
committee if available. MBK selection will be a continuous process with the coming
up of new GPLFs. The Block team will assist the screening process of MBKs.
The OLM will develop a question bank for the screening test and provide
support to GPLF from time to time.
8. Capacity building of MBK
Most of capacity building of MBK will be done on the job. However, the Block will
develop capacity of the MBKs through series of training programmes on maintaining
or auditing of financial records and different finance related subjects at
GP/block/district level. The following modules are anticipated for building capacity of
the MBK cum Auditors:

SHG & federation formation and strengthening and also on SHG gradation

Writing of books of account.

Basic banking and linkage procedures.

Community procurement.

SHG books of account auditing

GPLF book of accounts including preparation of monthly and annual
financial statement, receipt and payment statement, balance sheet, etc

Preparation of bank reconciliation statement

Data entry (monthly financial records of SHGs) in computers using tally
9. Performance incentive for MBK
Monthly remuneration: OLM will bear 100% of this amount in the first year. After a
year the modality will be revised if needed. OLM has to give direction for further
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
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continuation by reviewing the performance of the MBK or their requirement. The
performance incentive of MBK shall be based on their performance and the
outputs. Once the selection of MBK is confirmed by the GPLF, the proposed
performance incentive based on their output will be given to the MBK as follows
 Updating member wise financial data of each SHG to be treated as the opening
balance on a cut-off date (one time activity) : Rs. 100/- per SHG
 Collating transactional data of all member SHGs and submitting to block for
entry and collect the printed report from block to share it with the GPLF and
CLF : Rs. 200/- per month
 Conducting meeting of GPLF and writing their books of accounts : Rs. 1000/per month
o Conducting meeting and writing the resolution
o Updating all financial records like cash book, ledger etc.
o
Entering all financial data in tally and generating report
o Preparing Bank reconciliation statement of GPLF
o Preparing trial balance
o Preparing annual financial statement
o Monitoring the SHG/CLF as assigned by GPLF
 For auditing of SHG records (annually once)- Rs 50/- per SHG.
 For organizing and ensuring annual audit of the GPLF : Rs.100/ For assisting in assessment/gradation of CLF and GPLF annually : Rs.50/- per
institution
 For review and checking of MIP formats of SHGs: Rs. 50/- per MIP
 For conducting and facilitating 2 days training on book keeping for CRP-CMs
twice in a year : Rs. 100/- per day for 4 days.
 During field visit TA and DA to be provided as per project provision at par with
TRIPTI CC/CP.
 The MBK has to sit in the GPLF office for six working days in a week, unless
S/he is assigned with any field assignment by the GPLF.
10. Performance appraisal and termination of MBK cum Auditors
The GPLF will develop an action plan for MBK on yearly basis. The performance of
the MBK will be reviewed every month and her assignment will be continued based
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
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on satisfactory performance. The monitoring and supervision will be conducted by
the GPLF on monthly basis. Those MBK whose performance is not found satisfactory
may be recommended for further training and capacity building, In case her/his
performance is not satisfactory for three consecutive months she may not be
recommended for further continuation by GPLF.
11. Payment Modalities

MBK will get the performance incentives at the end of every month. She will
put her claim in the prescribed format. Upon verification by the GPLF and
concerned PRP if any, GPLF will forward it to the Block for review. With the
recommendation of Block, GPLF will pay the performance incentive to the
MBK.

The GPLF will make payment either in the form of Account Payee cheque or
through account transfer or any other procedure prescribed by the Project.
If MBK fails to participate in the meetings of GPLF, the GPLF-EC members will
give the suitable advice to that MBK for improvement. If s/he fails to do so in
three consecutive months, GPLF should recommend next panelist candidate. If
MBK doesn’t want to continue as Master Book Keeper cum Auditor then she
should submit a letter regarding discontinuation to the concern GPLF.
12. Role of Professional Resource Person (PRP) /GPLF-CP:
 She/he will ensure the completion of the MBK identification process in a
judicious process. During this process the role of PRP/GPLF-CP will be;
-
Facilitate to GPLF EC committees on selection process of MBK.
-
Quality check during the entire selection process
-
Verify the performance assessment sheet of the MBK
13. Role of Block
The roles and responsibilities of Block staff basically to facilitate the following
activities;
 The Block will guide and provide necessary support to GPLF for carrying out
the selection process of MBK.
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
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 The Block will carry out the training programme in consultation with PRP for
MBK.
 The Block will verify the data provided by the GPLF after the monthly
performance appraisal of the MBK as per the format attached in annexure E
recommend for disbursement of the dues/honorarium of MBK by the GPLF.
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
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Annexure -A
Format for data collection of eligible candidates for MBK for GP level:
Name of the District:
Name of the Block:
Name of the GP:
Sl.
No
.
Name of Educational
the
Qualification
Candidat
e
with
present
address
Present
Occupation
Priority
status
(PWD/EPV
G/ PVTG)
SC/ ST/ Contact
minority number
status
any
if
Annexure-B
Sample Questionnaire (will be in Odiya language) for Written Test
Questionnaire for selection of MBK,
Name of the Candidate:
Time: 45 minutes
Address:
Date of written test:
Venue of written test:
Total Marks : 30
Marks Secured:
Section A: (Writing skills test) = 5 marks
a. Please write an essay in ten sentences:
Section-B: (Numerical Skills and General Knowledge Test) = 25 marks
1. 40% of 950 is how much______________________________?
2. If there are 11 members in an SHG and each of them is saving Rs.15/- per
month, what will be their total savings after 6 months?
3. A member has taken a loan of Rs.550/- from her group on 01.07.2010 at the
rate of 3% interest per month. How much interest she will pay if she repays the
entire loan amount in one installment on 01.10.2010?
4. On 30.04.2010 Maa Tarini SHG has a total group fund of Rs.5100/-. In the
month of May the group collected Rs.500/- towards group savings, Rs.17/collected towards fine, Rs. 220 as interest on loan from members. Also
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
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Rs.2000/- was disbursed to three members towards loan. What will be the
balance amount available with the group by 30.05.2010?
5. Enter the cash book as per the data given below: 10 members saved Rs.20/each in the month of July on 30.07.2010 having a hand balance of Rs. 30/- in
June. SHG lent Rs. 50/- to one of the member and deposited Rs.120/- in Bank
leaving a hand balance of Rs.60/-. Prepare a cash book as on 31.07.2010.
6. 13 members saved Rs.25/- per month for 4 months. One member defaulted
for one month. What is the total amount collected?
7. Whether a member of SHG can be less than 10?
8. Whether a member of SHG can be more than 10?
9. Whether minor can become a member of SHG?
Annexure C
Personal Interview=5 Marks
The MBK selection committee as mentioned above will conduct the interview of the eligible
candidates of MBK of the GPLF.
The interview will content 5 marks in total. The candidates have to appear before the panel of
members of the MBK selection committee.
The interview questions will be focused to measure the following skills and attitudes of the
candidate;
-
Pro-poor attitude,
-
Willingness to work for GPLF and devoting quality time for it.
-
Good accounting knowledge
-
Computer operation skill
-
Communication skills
-
Community mobilization skills
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Annexure D
Criteria of Evaluation
Sl.
No.
Name of the
candidate
Written
(Numerical &
skill) test (30
marks): If less
than 15 marks
is secured, no
need
for
further
evaluation
Interview (5
marks)
Priority (5 Marks)
(PWD/ EPVG(applicable after SA)/
PVTG) – 5 marks;
SC/ST/
Minority/
Poor(applicable after SA)-3 marks
Working
Experience with
SHGs (5 Marks) :
More than 2 year
– 5 marks
1-2 years-3 marks
Less than 1 yearsNil
Odisha Livelihoods Mission, Panchayati Raj Dept. Govt. of Odisha
Total-45 Marks
Annexure-E
Monthly Performance Review of MBK
Name of the MBK:_________________________________________________________
For the month of:
Name of the GPLF:
Name of the GP:
Name of the Block:
Name of the District:
Seri
al
No.
1
2
3
4
5
6
7
8
Activity
Updating SHG member wise financial data
(One time activity)
Collating SHG transactional data and share
report with GPLF and CLF
Writing GPLF level book of accounts as
well as other records
Annual audit of SHG
For organizing and ensuring annual audit of
the GPLF
For assessment/gradation of CLF and GPLF
annually
For scrutinizing MIP of SHGs and support
to GPLF in appraisal
For conducting and facilitating 2 days training
on book keeping for CRP-CMs
Signature of one of the GPLF Participatory
Monitoring Sub Committee Member
Achievement To be To be filled by
filled by MBK
GPLF
Achievem Amount
Recom Recom
ent/ Plan (Rs)
mende mended
d
Amount
Honora (Rs)
rium
(Y/N)
Verified by CP/Block Team
Recommendation of BLOCK Leader to GPLF for payment
Signature of the GPLF President/
Secretary