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%