The Executive committee drafted 8 policies on 19th, April, 2024 with were presented to the 3rd UPSTU Members’ SACCO AGM on 27th December 2024 for ratification. The contents of the policies are summarized below;
UPSTU MEMBERS’ SACCO Membership policy
This policy outlines the terms and conditions governing the membership of UPSTU MEMBERS’ SACCO. Below are some key points from the policy:
- Eligibility: Open to science teachers, trainees, retirees, and well-wishers.
- Application Requirements: Membership form, ID, fee (UGX 50,000), minimum 5 shares, and UGX 20,000 in savings.
- Rights: Equal voting, financial services access, and account updates.
- Obligations: Adhere to bylaws, maintain shares, savings, and repay loans promptly.
- Termination: Resignation, death, or expulsion after fair hearing.
- UPSTU MEMBERS’ SACCO Shares policy
This policy establishes the terms and conditions governing the issuance, holding, transfer, and redemption of shares in UPSTU MEMBERS’ SACCO. The policy is intended to ensure fairness, transparency, and equity among all members while contributing to the SACCO’s capital base and stability. Below are some key points from the policy:
- Share: A unit of ownership in the SACCO.
- Requirements: Minimum 5 shares (UGX 10,000/share). Maximum number of shares is stipulated in the by-laws. (1/3 of total shares).
- Transfers: Allowed upon death or withdrawal, with approval.
- Dividends: Paid based on shares and net surplus profit in a given year.
- Redemption: Possible only upon withdrawal, based on SACCO liquidity.
- UPSTU MEMBERS’ SACCO Savings policy
This Savings Policy sets forth the terms and guidelines under which members of UPSTU MEMBERS’ SACCO may deposit and manage their savings. The policy is designed to encourage regular savings among members, provide a strong capital base for the SACCO, and ensure the safety and liquidity of members’ funds. Below are some key points from the policy:
- Monthly Contributions: Minimum UGX 20,000; voluntary additional savings allowed.
- Notification: The account of the depositor will be updated on receipt of notification by the Sacco management. State whether the deposit is for savings or shares.
- Withdrawal: Restricted for the first 12 months; UGX 20,000 fee applies afterward.
- Savings to Shares: Savings can be transferred to shares anytime.
- Suspense Account: Any deposit on the SACCO bank account whose details are not clear shall be pushed to the SUSPENSE ACCOUNT until its verified.
- UPSTU MEMBERS’ SACCO Loan policy
The UPSTU MEMBERS’ SACCO Loan Policy aims to provide a systematic approach to the extension of credit to eligible members, ensuring fairness, transparency, and risk management while promoting the economic prosperity of the members and stability of the SACCO. Below are some key points from the policy:
- Eligibility: Active members with 6 months’ consistent savings and 2 guarantors.
- Loan Products: Emergency, micro, development, and more.
- Limits: Loans up to (3x shares + 1x savings). Making an unusually high deposit to increase one’s limit before applying for a loan in less than 2 months is not allowed. For any loan above 2,000,000/= valid security commensurate to the risk shall be required.
- Security: Salaries, Savings + guarantor savings or valid collateral.
- Penalties: 1% per week late fee; recovery through guarantor or legal action.
- Loan Committee: Is responsible for consideration of loan applications and making decisions on case-by-case basis.
- UPSTU MEMBERS’ SACCO Loan Recovery Policy
The Loan Recovery Policy of UPSTU MEMBERS’ SACCO outlines the procedures and mechanisms for recovering loans in a manner that is efficient, fair, and minimizes financial risk to the SACCO and its members. Below are some key points from the policy:
- Monitoring: Regular repayment tracking; proactive engagement with potential defaulters.
- Recovery Actions: Reminders, written notices, and legal action as a last resort.
- Ethics: Fair, respectful, and lawful practices.
- Write-offs: Allowed only after all recovery efforts fail, with Committee approval.
- UPSTU MEMBERS’ SACCO Investment policy
This Investment Policy establishes the framework for the management of the investment portfolio of UPSTU MEMBERS’ SACCO. It sets out the principles, guidelines, and constraints that govern the investment decisions to ensure the safety of members’ funds, liquidity of assets, and an adequate return on investments. Below are some key points from the policy:
- Objectives: Preserve capital, ensure liquidity, and achieve returns.
- Investments: Fixed deposits, bonds, real estate, regulated equities, and microfinance projects.
- Risk Management: Diversification, credit monitoring, and market risk assessment.
- Oversight: Investment Committee ensures compliance and performance reporting.
- UPSTU MEMBERS’ SACCO Dividend distribution policy
The Dividend Distribution Policy outlines the principles and criteria for the declaration and distribution of dividends to the members of UPSTU MEMBERS’ SACCO. This policy aims to balance the dual goals of rewarding members for their investment while ensuring the SACCO’s sustainable growth and financial stability. Below are some key points from the policy:
- Eligibility: Members with shares and no overdue liabilities.
- Distribution: Based on shares held; surplus retained for reinvestment.
- Transparency: Annual audited financial reports guide declaration of dividend rate % and payment of dividends.
- Unclaimed Dividends: Held temporarily, then transferred to reserves if unclaimed.
- UPSTU MEMBERS’ SACCO Governance policy
This policy defines roles and responsibilities of all governing bodies in UPSTU MEMBERS’ SACCO
Review: Policies are periodically reviewed and amended as necessary.
Structure: AGM (supreme organ) oversees the Executive Board, Supervisory, and Vetting Committees.
Committees: Credit/Finance, Planning/Marketing, and Investment subcommittees.
Responsibilities: Board recruits management staff and ensures regulatory compliance.
Review: Policies are periodically reviewed and amended as necessary.
NB: The above is a summary of key points from the policies. Copyright is reserved for full policy documents, available in hardcopy together with the bylaws at SACCO offices.