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SEEP FRAME tool.XLS

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Overview of SEEP FRAME Tool Background Purpose Structure Roll-out Plan

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Background In 2004, SEEP completed the final draft of

“Measuring Performance of Microfinance Institutions: A Framework for Reporting, Analysis, and Monitoring”

The framework consists of 5 chapters:- Chapter 1: Introduction of the Framework concept, purpose,

history and future- Chapter 2: Financial Statements and Reports- Chapter 3: Analytical Adjustments- Chapter 4: Financial Ratios and Indicators- Chapter 5: Creating and Analyzing Performance Monitoring

Reports In 2005, SEEP and CRS contracted the developers

of Microfin to design a tool for the Framework

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Purpose

To provide a spreadsheet tool that follows the format of the SEEP Framework document

The tool is designed to:- Facilitate training on the SEEP Framework- Offer a simple financial performance monitoring

tool that will satisfy an MFI Manager’s basic financial performance monitoring needs

- Be a user-friendly tool that can maintain and export data.

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FRAME Tool Structure

EXCEL Workbook Sheets:

User Set-up Data InputForecast Data

InputMonthly Data –

UnadjustedAdjustments

Input

Monthly Data-Adjusted

Fin. Reports –Unadjusted

Fin. Reports –Adjusted

Ratios –SEEP 18

Reports-Management-Board-Donor-Investor

User-sheets

Input sheets

Result sheets

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FRAME Tool StructureUser Set-up

User enters general information (e.g. name of the institution)

User makes the following choices- Monthly/Quarterly/Annual/No input for each of three years of

data- Enable direct or indirect cash flow?- Enable Adjustments?- Enable CRS gender ratios?- Enable Forecast sheet and Variance analysis?- Enable user-defined sub-accounts?- Enable BASIC set of ratios or ALL ratios?

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FRAME Tool Structure

If user does not enable advanced features, EXCEL Workbook Sheets :

User Set-up Data InputMonthly Data –

Unadjusted

Fin. Reports –Unadjusted

Ratios –SEEP 18

Reports-Management-Board-Donor-Investor

Input sheets

Result sheets

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FRAME Tool Structure

User enters the information required for each of the Financial Statements and Reports:- Income Statement- Balance Sheet- Cash Flow Statement

• Direct or Indirect depending on user-choice- Portfolio Report- Non-Financial Data Report

User must:- Input data for the periods selected in the “Set-up” sheet- Input “Initial Balances” for certain line items so that the tool

is able to calculate averages needed for ratios- Input YTD data

Data Input

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FRAME Tool Structure

Sheet is optional depending on the user’s choice in the set-up sheet

User will be asked to input: Monthly/quarterly/annual projected amounts for all Income Statement categories, key Balance Sheet categories, and Activity Indicators.

Forecast DataInput

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FRAME Tool StructureMonthly Data –

Unadjusted

Sheet shows the same information as the “Data Input” sheet, but nicely formatted and in Read-only form

Can be printed for the user to verify that the information was entered correctly

Can be used for trend analysis

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FRAME Tool StructureAdjustments

Input

User selects adjustment method:- True performance- Benchmarking

User enters assumptions and inputs for the three types Adjustments:

- Subsidy adjustments- Inflation adjustment- Portfolio at risk adjustments

Sheet calculates the adjustment values for each period and summarizes the adjustments in a summary section at the top.

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FRAME Tool StructureMonthly Data-

Adjusted

Sheet is identical to the “Monthly Data – Unadjusted” but there are additional rows showing the adjustments where they apply

Only shows those Statements and Reports that are affected by the Adjustments:

- Income Statement- Balance Sheet- Portfolio Report

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FRAME Tool StructureFin. Reports –

Unadjusted

Tool contains a FINANCIAL REPORTS GENERATOR sheet for:

- Income Statement- Balance Sheet - Cash Flow - Portfolio Report

Allows for 2 or 3 periods of comparative data Will contain information from the beginning of the FY

to a user-specified ending date during that FY. Option to create these reports in either local or

external currency.

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FRAME Tool StructureFin. Reports –

Adjusted

Sheet will show Adjusted Financial Statements

User will be able to select cut-off dates for the Adjusted Financial Statements.

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FRAME Tool StructureRatios –SEEP 18

Definitions and formulas for the 18 ratios recommended by the SEEP Framework

Will calculate and display the ratios for all of the periods for which the user entered data.

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FRAME Tool StructureReports-Management-Board-Donor-Investor

User will be able to create the following reports:- Monthly Management Report- Quarterly Management Report- Quarterly Board Report

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FRAME Tool StructureUser-sheets

Unlimited number of user sheets, on demand, at the end of the workbook

Other user-defined features include:- Sub-accounts- Ability to add up to 50 data points/indicators

outside of the SEEP Framework (e.g. social indicators).

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FRAME Tool: Additional Features Warnings when the user enters incorrect data Export function Multi-language (English, Spanish, French,

User-defined) Provided on a CD

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FRAME Tool: Roll-out Plan

April-May 2005: Develop Pilot Tool June-August 2005: Pilot testing in 3 training

courses September 2005: Incorporate feedback from

pilot testing; translate October 2005 – Launch final tool

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Questions?