1. Date, Place Logo of the organization
SPI4 Audit Exit meeting
This template is aimed at helping the auditor presenting the preliminary findings of the SPI4 audit to the MFI’s management
Date, Place
Logo of the organization

2. OVERVIEW OF THE PROJECT

3. AUDIT PROCESS
Describe the process followed: when did the audit take place, who was involved, what branches were visited, etc. Present the agenda of the audit if necessary
You can also briefly present the SPI4 tool (see comments below)
Objectives of the audit:
For institutions that have a double mission , i.e. that seek to achieve both financial sustainability and one or more social goals
Know whether they are meeting the social goals set out in their missions
Use data on both financial and social performance to guide decisions about prices, products, service delivery systems, and strategies, since success for the institution requires assuring both its sustainability and the creation of benefits for clients
Provide donors and social investors the greater accountability there are demanding from their MFI partners
Presentation of the SPI4 tool:
The social audit of XXX was conducted using SPI4, a comprehensive social audit tool that allows MFIs to evaluate their level of implementation of the Universal Standards of Social Performance
SPI4 assesses a MFI’s strengths and weaknesses on both Social Performance Management (SPM) and on client protection, with the goal of using this information to help the MFI improve its management systems and practices over time.

4. WHAT IS SOCIAL PERFORMANCE?
The effective translation of an institution’s mission into practice in line with accepted social values that relate to:
Reaching target market
Delivering high-quality and appropriate services
Responding to the needs of clients, their families, and communities
Ensuring responsibility toward its employees, its clients, the community it serves, and the environment
Additional talking points:
CERISE’s definition of SP comes from the Social Performance Task Force, a working group of microfinance leaders, including practitioners, networks and donors. The SPTF was formed to clearly define social performance and come up with a set of standardized indicators to monitor SP. More on these indicators later.
Social performance is defined as the effective translation of an institution’s mission into practice in line with accepted social values that relate to:.
Reaching the target market: Outreach to the target population. Serving increasing number of poor and excluded people sustainably: expanding and deepening outreach to poorer people
Appropriate services that meet client needs: Improving the appropriateness AND quality of financial services available to the target clients through the systematic assessment of their specific needs
Social responsibility: In addition social performance is concerned with the way in which an organization does business in relation to norms and expectations of its staff and the community. It is therefore concerns with improving the social responsibility of the MFI in relation to its employees, clients, the community in which it operates and the environment.
This arrow represents the social performance pathway—the different aspects of social performance and how they come together.
Intent refers to the institution’s mission—what it intends to do to reach its social goals
Internal systems and activities refers to everything inside the institution—all that it does to make sure the mission is achieved;
Outputs are different from outcomes
OUTPUT = what services are delivered, of what quality, to whom – breadth and depth of outreach. Are the products designed to meet client’s needs?
OUTCOME = what changes can be observed – eg. businesses grow, incomes increase, skills increase?
IMPACT = what are the changes attributable to the MFI? The longer term sustainable changes as a result of the outcomes eg. poverty reduction? What are the unintended consequences?
Intents
Inputs / Internal systems/activities
Outputs
Outcomes
Impact
SOCIAL PERFORMANCE TASK FORCE

5. PESTEL POLITICAL ECONOMIC LEGAL SOCIAL ENVIRONMENTAL TECHNOLOGICAL
You can use the PESTEL analysis to explain « Why social performance assessment » is important but also to put your institution in the context of its country. The PESTEL analysis can also help to explain why the results might be affected by those external factors.
Example of a PESTEL Analysis:
POLITICAL: Government intervention in the economy. Political factors include areas such as tax policy, labour law, environmental law, health, education, infrastructures, trade restrictions, tariffs and political stability.
ECONOMIC: Factors include economic growth, interest rates, inflation rates, etc.
LEGAL: Factors including discrimination law, employment law, consumer law, etc.
SOCIAL: Cultural aspects (health consciousness, population growth rate, age distribution, etc.)
ENVIRONMENTAL: ecological and environmental aspects
TECHNOLOGICAL: R&D, automation, technology incentives, etc.
ENVIRONMENTAL
TECHNOLOGICAL

6. Various reports available based on those different initiatives
SPI4
Core module : SPI4 is fully aligned with the Universal Standards, and the Smart Campaign Client Protection Certification Standards
SPI4
Universal Standards
Green
Poverty
SPI3.3
CPP
Green microfinance: A set of additional indicators for institutions with an environmental focus
Poverty: Additional indicators for institutions whose mission includes the goal of reducing or alleviating poverty
**THIS SLIDE IS OPTIONAL**
This slide can be used if the audience is not well informed of the SPII4 tool. Otherwise, it might not be useful to use it. 2 3 1
SPI3: Additional indicators for users of the previous version of this tool (SPI3) in order to allow comparison with previous results
Various reports available based on those different initiatives

7. “ State the institution’ social mission”
OUR SOCIAL MISSION
“ State the institution’ social mission”
Link the social mission the the questionnaire’s structure.

8. RESULTS

9. Dimension 1 : Define and monitor social goals
An institution must have a clear strategy that describes its social goals, how its work contributes to achieving those goals, and how it will measure its actual progress toward those goals.
“ Is my institution reaching its target population ? ”
“ Are our clients' lives improving ? "

10. Results of Dimension 1
Summarize the MFI’s activities and efforts to date in addressing the standards in Dimension 1. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

11. Dimension 2: Commitment to social goals
How does an institution ensure that its board members, management, and all employees are committed to the institution's social goals ?
“How can we support and prepare our internal stakeholders in implementing our social goals ? ”
“ How can each level of our organization do its part to hold our institution accountable to its mission and help it achieve its goals? ”

12. Results of Dimension 2
Summarize the MFI’s activities and efforts to date in addressing the standards in Dimension 2. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

13. Dimension 3: Design products that meet clients' needs
Outreach to a target a population is not enough; products and services must be adapted to clients' needs if they are going to create benefits for clients.
“ How does our institution gather information on clients' needs and preferences, and adapt our products and services accordingly ? ”

14. Results of Dimension 3
Summarize the MFI’s activities and efforts to date in addressing the 2 standards in Dimension 3. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

15. Dimension 4: Treat clients responsibly
At the minimum, all financial institutions, even those who do not have social goals, have a moral responsibility not to harm clients.
“ How do we address client over-indebtedness prevention, transparency, fair and respectful treatment of clients, privacy of client data, and mechanisms to resolve client complaints ? ”

16. Results of Dimension 4
Summarize the MFI’s activities and efforts to date in addressing the standards in Dimension 4. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

17. Dimension 5: Treat employees responsibly
Responsible treatment of employees is critical to a successful institution as 1/ the way employees are treated has a huge impact on how those employees treat clients, and 2/ offering employment is an important benefit that an institution brings to its community
“ How can our institution create a fair, safe, and supportive working environment, and how can we provide employees with the information they need to succeed in their jobs?”

18. Results of Dimension 5
Summarize the MFI’s activities and efforts to date in addressing the standards in Dimension 5. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

19. Dimension 6: Balance social and financial performance
All financial institutions with a double bottom line must seek balanced financial and social performance.
“ Does our decision making around key financial topics maintain a client focus ? ”

20. Results of Dimension 6
Summarize the MFI’s activities and efforts to date in addressing the standards in Dimension 6. Start with the positive results, i.e., those standards on which the MFI obtained a (very) good score. Mention special efforts or particular circumstances that explain why the MFI obtained these results and if there are any initiatives pending whose implementation will influence this score in the near future.
Identify the possible areas for improvement in this dimension (i.e. practices for which the MFI got a relatively low score)

21. CLIENT PROTECTION
Insert here the graph of client protection if you chose the optional lens

22. GREEN INDEX
The Green Module was created to allow those MFIs with environmental awareness as part of their mission to evaluate their level of implementation of practices related to the three standards to strong environmental performance
Insert here the graph of Green Microfinance if you chose the optional lens

23. RECOMMENDATIONS

24. SWOT ANALYSIS STRENGTHS
Describe any distinctive competence or special advantage of your institution
WEAKNESSES
Describe the main negative aspects of the institution. (Ex: Strategy, mission, HR management)
OPPORTUNITIES
Describe possible opportunities in the future such as new growth target, new clients, changes in the organization, etc
THREATS
Describe the possible external threats to your institution (Political, New competitors, financial risk)
The SWOT analysis can be used as a tool to:
Summarize the situation. What are the strengths and weaknesses of your institution, what are the possible opportunities and threats in the future?
Help you identify the most important aspects to work on
Help you think about possible recommendations and their feasibility (thanks to the O/T section)

25. HOW TO PRIORITIZE RECOMMENDATIONS ? FEW TIPS (1/2)
List all the areas where improvement is possible, based on level of complexity, ease of measuring the progress, likelihood of success
Identify : priorities, quick wins (see slide 24), mid and long-term recommendations
Present the burning issues linked to risk management
There may be warning signs from the Organization Information part: High staff turnover, high client drop-out, increasing PAR (or PAR=0 that may reveal a zero tolerance policy), very high staff productivity, very high interest rate or ROE, etc.
As client protection is considered as a minimum : identify with the MFI potential areas of improvement in Dimension 4
**THIS SECTION IS ONLY FOR INFORMATIONAL PURPOSE AND SHOULD NOT BE IN THE FINAL PRESENTATION**
Some implementation steps will require staff time but little or no monetary resources (e.g., updating policy documents), yet others may require dedicated funds. Include a budget for SPM activities within your institution’s operational budget to ensure that other institutional priorities will not delay execution of the plan. This not only ensures that the action plan is properly funded but also sends a signal to staff that the SPM activities are important. The initial implementation phase will cost the most in terms of time and money, while ongoing reviews and maintenance should cost less. You may choose to begin with simple, low-cost activities, as this is a relatively low-risk way to begin, and the success you achieve will build buy-in for future additional improvements to your SPM.

26. HOW TO PRIORITIZE RECOMMENDATIONS ? FEW TIPS (2/2)
Weak areas that influence the social mission :
Weaknesses not linked to the MFI mission => No further action immediately needed
Not in the MFI priorities but important for external partners
=> Discussion may be required
Strong areas/ Innovative approaches:
Case study to be shared?
**THIS SECTION IS ONLY FOR INFORMATIONAL PURPOSE AND SHOULD NOT BE IN THE FINAL PRESENTATION**

27. IDENTIFY QUICK WINS Low value for client or the institution
High value for client or the institution
Low value for client or the institution
High value/ high effort
High value/medium effort
High value/easy
Medium value/ high effort
Medium value/medium effort
Low value/high effort
Medium value/ low effort
Low value/ high effort
Low value/ medium effort
Low value/ low effort
High level of effort Low level of effort
**THIS SECTION IS ONLY FOR INFORMATIONAL PURPOSE AND SHOULD NOT BE IN THE FINAL PRESENTATION**
When you decide to select an activity that requires high effort, ensure that the benefit to clients and the institution is also high.
For example, you may decide to create a client complaints phone line to replace your branch suggestion boxes.
Though the start-up effort and costs may be high, this activity will likely increase client satisfaction, create greater field officer accountability, and provide management with information for making operational or product improvements.
Source: Oikocredit SPM Mentoring Program/A.Simanowitz

28. ACTION PLAN
You can share here an action plan for the MFI – if it has already been drafted – so it can be discussed with the management You can find a template for action plan on the SPI4 wiki page. Click here to download it.
Using your knowledge of the results of the SPI4, the salient issues in the local context, the institution’s strategic priorities, and the institution’s willingness and ability to allocate budget towards SPM improvements, the social auditor should develop an Action Plan for the MFI that lists all the main areas of improvement. These follow up actions should be prioritized in order of importance/ feasibility beginning with those areas that would be very important to address and not too expensive to fix. This Action Plan should be vetted with the institution’s senior management ideally in order to obtain buy-in for and approval of addressing the highest priority items in the next budgetary cycle.

29. NEXT STEPS
Present what should be the next steps for the assessment, this could include:
Finalization of the action plan
Writting of the assessment report
Integrating the recommendations in the MFI strategy/activities
Implementation of the recommendations based on the action plan
Schedule a meeting to monitor the progress of the implementation
Etc.

30. NAME AND CONTACT OF THE AUDITOR