Through its Financial Services Working Group, the Small Enterprise Education and Promotion (SEEP) Network, a global network of microfinance practitioners, recently released two tools to facilitate the internal audit functions of microfinance institutions (MFIs), namely an Internal Audit Toolkit and a Board Audit Guide. The Internal Audit Toolkit is intended to help MFIs to strengthen their internal audit teams and systems and specifically was created to help internal auditors “to provide assurance to the reliability of operational and financial reports, verify compliance to regulations and policies, support the protection of assets, and support the efficiency and effectiveness of operations” [1]. The Internal Audit Toolkit was developed in collaboration with MEDA (Mennonite Economic Development Associates), MicroVest, ACDI/VOCA (Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance), World Vision USA, CARE (Cooperative for Assistance and Relief Everywhere) USA, the Financial Sector Deepening Trust Tanzania and a number of independent consultants.

The Board Audit Guide, intended to strengthen MFI audit committees, has been designed to help committee members understand their roles and responsibilities within the internal audit system and to provide an “overview of risk and risk management, their role as the Audit Committee, the role and work of the Internal Auditor, managing the internal audit function, managing governing relationships with the Board and the CEO, and managing reports and follow up of recommendations” [1]. The resource was developed in collaboration with a number of independent consultants as well as CHF International, Opportunity International, ACDI/VOCA, ARC International, Catholic Relief Services, MEDA, Microfinance Resources, Pincer Group International, CARE USA and World Vision.

While the resources are not available online at this time, interested parties may contact SEEP regarding the use of these tools at no charge via Lauren Clark, External Relations Manager, at (202) 534-1414.

By Lindsey Shaughnessy, Research Associate

About the Small Enterprise Education and Promotion (SEEP) Network: The Small Enterprise Education and Promotion (SEEP) Network, founded in 1985, connects microenterprise practitioners from around the world to develop practical guidance and tools, to build capacity and to help set standards in order to advance its mission of sustainable income in every household. Its members are active in 180 countries.

Sources and Additional Resources:

[1] Per press release submitted to MicroCapital September 21, 2010

MicroCapital’s Microfinance Universe profile: Small Enterprise Education and Promotion (SEEP) Network

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/.