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MIS Reports & Analysis MABS Mindanao Supervisors Forum August 25, 2004 Anthony P Petalcorin MABS...
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Transcript of MIS Reports & Analysis MABS Mindanao Supervisors Forum August 25, 2004 Anthony P Petalcorin MABS...
MIS Reports & Analysis
MABS
Mindanao Supervisors Forum
August 25, 2004
Anthony P Petalcorin MABS National MIS Manager
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TOPICS
Introduction A Refresher : Reports format and definition Analysis on each report Workshop
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Introduction
As part of the training and technical assistance package, MABS provides participant banks (PBs) with guidance on how to monitor the banks’ microfinance operations through a well-defined management information system (MIS).
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Introduction
Appropriate and accurate reports and indicators would greatly contribute to the participating banks’ success in microfinance and in making microfinance part of their regular operation.
Sustainability can only be achieved if microfinance is well-managed and profitable.
MABS has designed reports that would address this concerns
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MABS Monitoring ReportsMABS Monitoring Reports Listing of Loans Collection Due Report Delinquency Report Portfolio at Risk Report
Indicates loan portfolio data and quality
Indicates revenue, growth and performance.
Analyze quality based on client, business and characteristics..
Interest Collected by MF Unit Performance Report by AO Microfinance Monthly Report Client Status Report
PAR by Aging and Business Activity PAR by Loans Disbursed and Business
Activity Loan Profile by Gender
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Listing of Loans
List of all active accounts; accounts with outstanding balance – current or overdue
Shows static information such as; borrower’s name and account number, release and maturity date, amount borrowed, outstanding loan balance, amortization due, and hold out deposits
It also shows amount overdue and portfolio at risk (PAR) amount
Report is normally generated monthly but can be generated anytime
Users: MF Unit supervisor and staff, branch manager
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Delinquency Report1
List of delinquent accounts; missed amortization repayment for 1 day or more
Shows static information such as; borrower’s name and account number, release and maturity date, PAR amount, total amount due
It also shows the number of amortization payments missed and how many days the borrower is overdue
This report shows the hold out balance and the exposed amount.
It as advised that the MF Unit should generate this report daily Users: MF Unit supervisor and staff, branch manager
1Delinquency report is an exception report
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Portfolio at Risk Report
This is a summary report showing the number of borrowers, loan amount overdue, outstanding balance or PAR amount by age.
Also shows the percentages e.g. % clients, % in arrears, and PAR %
It is advised to generate this report weekly Users: MF Unit supervisor and staff, branch
manager, top management
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Total Interest Collected from MFU
This is a summary report showing the monthly growth of the loan portfolio (outstanding balance: beginning & ending).
Shows the interest, fees & other charges, and the total revenue collected within the period; usually monthly
Shows the yield % for the period It is advised to generate this report monthly Users: MF Unit supervisor and staff, branch
manager, top management
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Performance Report by Account Officers (AO)
This is a summary report showing the numbers that would determine the performance of each account officers (AO)
Shows the # of borrowers assigned to the AO, loan balance, # of accounts that are overdue, par amount and percentage
It also shows the # of new and repeat loans released during the period and the total revenue by AO
It is advised to generate this report weekly Users: MF Unit supervisor and staff, branch manager,
top management
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Client’s Status Report
This report shows the credit history of the borrower Shows the # of loans the borrower has already availed Shows the repayment performance of the borrower:
percentage payments made on time Shows the detailed repayment performance of the
borrowers current loan Useful when evaluating an application for a repeat loan, or
when determining course of action for a delinquent borrower
The report could be generated as needed Users: MF Unit supervisor and staff, branch manager,
credit committee
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Other Reports
Amortization Schedule1 – use this report to validate the Client’s Status Report; amortization column on the Listing of Loans
Loan Ledger – use this report to validate the payments made by the borrower; comparing the payments listed on the Client’s Status Report
1 Together with the Client’s Status Report, it is advised to include a copy of this in the loan folder.
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ANALYZING THE REPORTS
Check the accuracy of the figures and amounts on the report
Check figures and amounts on items between related reports
Analyze the reports
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ANALYZING THE REPORTS
Random check if the sub-total by account officer adds up Check if all AO sub-totals add up with the over-all total Check for duplicate accounts or accounts that show up
more than once. This could indicate that the account of the borrower, if fully paid, was not properly closed on the system.
Validate whether the loan cycle or cumulative loan matches with the Client’s Status Report
Verify whether the loan balance is correct at the time the report was generated
Validate whether there is “lump-sum” payment schedule
Listing of Loans
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ANALYZING THE REPORTS
Check whether horizontal and vertical totals and percentages are accurate
Validate if the figures in this report, e.g. # of borrowers, loan overdue amount, outstanding balance, and PAR are consistent with the Listing of Loans report.
Using the Delinquency Report, check if the accounts with overdue amortization add up with the summary totals per age.
Analyze the extent of the delinquency After determining the extent, identify which accounts
were involved
Portfolio at Risk Report
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ANALYZING THE REPORTS
Random check if the sub-total by account officer adds up Check if all AO sub-totals add up with the over-all total Check horizontal totals and computations e.g. exposed
amount, etc… The Portfolio at Risk amount on this report should be
equal to the Portfolio at Risk amount on the Listing of Loans
Randomly validate the # of amortization missed and days overdue with the individual Client’s Status Report
Using the information gathered from the PAR Report, manually age the account over 90 days
Delinquency Report
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ANALYZING THE REPORTS
Check if totals add up Check horizontal computations e.g. total revenue, and
yield%, etc… Validate whether figures in this report tally with the
related reports e.g. listing of loans and performance report by AO OLP1 beginning should be equal to Total Loan Balance
of the Listing of Loans & Total Loan Account Balance of the Performance Report by AO
Total Revenue should be equal to Total Revenue of the Performance Report by AO
Total Interest Collected from MFU
1OLP – Outstanding Loan Portfolio
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ANALYZING THE REPORTS
Check if totals add up Check horizontal computations if all figures add up e.g. #
loans disbursed = # new loans disbursed + # repeat loans disbursed, etc…
Validate whether figures in this report tally with the related reports e.g. listing of loans and total interest collected by MFU Loan Account Balance should be equal to the OLP1
beginning of the Total Interest Collected & Total Loan Account balance of Listing of Loans
Total Revenue should be equal to Total Revenue of the Total Interest Collected from MFU
Performance Report by AO
1OLP – Outstanding Loan Portfolio
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ANALYZING THE REPORTS
Validate … # of Borrowers tally with # of accounts of the Listing of
Loans # of loans w/ overdue amount should tally with the
number of accounts listed on the Delinquency Report Portfolio at Risk amount should tally with Total PAR
amount of the Listing of Loans PAR % should tally with the Outstanding Balance %
Sub-Total of the PAR report Validate the # loan disbursed with the Listing of Loans by
counting all accounts released within the specified range e.g. 06/01/2004 to 06/28/2004. There are 2 ways to do this; at the Listing of Loan, manually count the accounts released within the period
Performance Report by AO
1OLP – Outstanding Loan Portfolio
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ANALYZING THE REPORTS
Validate the # loan disbursed … 2nd is to generate the Listing of Loans to a TXT file and
convert it to MS Excel file so you can work on the data To do this however, your banking software should be
capable of generating reports to a TXT file and not limited to printing direct to the paper or to the screen.
Performance Report by AO
1OLP – Outstanding Loan Portfolio
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Summary: What have we learned so far:
That good MIS is vital in achieving a successful microfinance operations
We were able to recall the important MF reports We were taught how to detect erroneous
reports We also learned how to analyze and utilize
these reports to the fullest
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WORKSHOP
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Formula for YIELD %
Total Revenue
(OLP1 beginning + OLP End)/2YIELD % =
1 Outstanding Loan Portfolio
Total Revenue = Interest Income + Fees and Other Charges
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REPORT TITLE # Accounts O/Balance Amount O/Due PAR PAR%
Listing of Loans
Delinquency Report
PAR Report
Interest Collected
Performance Report
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REPORT TITLE OLP Beg OLP End Total Revenue Yield%
Listing of Loans
Delinquency Report
PAR Report
Interest Collected
Performance Report
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“Duplicate” accounts
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Loan Cycle Validation
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Verify Loan Balance
Identify the repayment frequency to determine the principal amortization
Determine the number of “should be” payments since the first payment
Multiply the principal amortization to the number of “should be” payments
The result should be equal to the listed loan balance
The difference should not be higher or lower than half of the principal amortization amount
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Determining the Lump Sum Payments
Identify the repayment frequency of the account Determine the correct amortization schedule by
dividing the loan disbursed amount with repayment frequency or installment
Compare the results with what was listed on the report.
Another way of knowing if the payment schedule is lump sum: when the amortization amount listed is either zero or equal to the loan amount granted or disbursed
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PAR Report versus Listing of Loans
PAR Report Listing of Loans
Total: Number of Borrowers Total: Number of Accounts
Total: Loan Amount Overdue Total: Amount Overdue
Total: Outstanding Balance Total: Loan Balance
Sub-Total: Outstanding Balance
Total: Portfolio at Risk
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PAR Report versus Listing of Loans
PAR Report Analysis
Outstanding Outstanding Delinquency
Balance Balance % Analysis
Current 5,700,328.34 89.51%
1 - 7 days 128,997.24 2.03% 19.31%
8 - 14 days 131,678.68 2.07% 19.71%
15 - 30 days 114,920.96 1.80% 17.20%
31 - 60 days 108,665.95 1.71% 16.27%
484,262.83 72.50%
61 - 90 days 66,302.14 1.04% 9.93%
Over 90 days 117,403.93 1.84% 17.58%
183,706.07 27.50%
Sub-Total 667,968.90 10.49%
Total 6,368,297.24 100.00%