MIS Reports & Analysis

Anthony P Petalcorin MABS National MIS Manager

MABS Mindanao Supervisors Forum August 25, 2004

TOPICS
Introduction
A Refresher : Reports format and definition Analysis on each report

Workshop

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).

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 Reports

Indicates loan portfolio data and quality

Listing of Loans Collection Due Report Delinquency Report Portfolio at Risk Report 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

Indicates revenue, growth and performance.

Analyze quality based on client, business and characteristics..

Listing of Loans
List of all active accounts; accounts with outstanding

balance current or overdue Shows static information such as; borrowers 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; borrowers 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
report is an exception report
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1Delinquency

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

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

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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Clients 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

Clients 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 Clients Status Report

Together with the Clients 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

Listing of Loans
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 Clients Status Report Verify whether the loan balance is correct at the time the report was generated Validate whether there is lump-sum payment schedule

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ANALYZING THE REPORTS

Portfolio at Risk Report

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

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ANALYZING THE REPORTS

Delinquency Report
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 Clients Status Report Using the information gathered from the PAR Report, manually age the account over 90 days

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ANALYZING THE REPORTS

Total Interest Collected from MFU

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

1OLP

Outstanding Loan Portfolio

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ANALYZING THE REPORTS

Performance Report by AO
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

1OLP

Outstanding Loan Portfolio

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ANALYZING THE REPORTS

Performance Report by AO
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
1OLP

Outstanding Loan Portfolio

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ANALYZING THE REPORTS

Performance Report by AO
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.

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 YIELD % = (OLP1 beginning + OLP End)/2

Total Revenue = Interest Income + Fees and Other Charges

1 Outstanding

Loan Portfolio

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REPORT TITLE Listing of Loans

# Accounts

O/Balance

Amount O/Due

PAR

PAR%

Delinquency Report PAR Report Interest Collected Performance Report

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REPORT TITLE Listing of Loans Delinquency Report PAR Report

OLP Beg

OLP End

Total Revenue

Yield%

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 Total: Number of Borrowers

Listing of Loans Total: Number of Accounts

Total: Loan Amount Overdue Total: Amount Overdue Total: Outstanding Balance Sub-Total: Outstanding Balance Total: Loan Balance Total: Portfolio at Risk

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PAR Report versus Listing of Loans

PAR Report Analysis Outstanding Balance Current 1 8 7 days - 14 days 5,700,328.34 128,997.24 131,678.68 114,920.96 108,665.95 484,262.83 61 - 90 days Over 90 days 66,302.14 117,403.93 1.04% 1.84% Outstanding Balance % 89.51% 2.03% 2.07% 1.80% 1.71% 19.31% 19.71% 17.20% 16.27% 72.50% 9.93% 17.58% Delinquency Analysis

15 - 30 days 31 - 60 days

183,706.07
Sub-Total Total 667,968.90 6,368,297.24 10.49% 100.00%

27.50%

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