This four-day course dedicated to financial management issues is aimed at solving one of the most important problems that MFIs face - increasing profitability and sustainability. The course is intended for directors and key financial officers (financial directors, financial analysts and chief accountants) of MFIs, i.e. for those responsible for making financial decisions and those who are interested in the proper evaluation and financial oversight of organizations. The primary goal of the course is to provide participants with the opportunity to analyze the financial status of their organizations and to determine ways of increasing efficiency and profitability.
Financial analysis forms the foundation for successful, sustainable microfinance activity. This course focuses on explaining the importance of financial analysis in management and its connection to decision-making. In addition, the course will provide practical advice on improving personnel performance and increasing overall efficiency and profitability. Course materials offer a new definition of sustainability and allow for analysis of the financial status of MFIs from a new point of view. The course offers numerous practical tasks and case studies that will allow participants to learn new methods for formatting and analyzing managerial financial reports and for calculating the standard financial factors necessary to ensure precise and timely evaluation of an MFI's performance. The course features a detailed analysis of the influence of inflation and the subsidized costs of funds and grants and their effect on sustainability. At the end of this course, participants will be able to determine the critical factors influencing the profitability of an MFI and will understand new methods for improving efficiency.
This course was developed by specialists of the Consultative Group for Assistance to the Poorest (CGAP) and adapted by the Microfinance Center in Central and Eastern Europe and NIS Countries (MFC). In addition, specialists from the Russian Microfinance Center have developed a supplementary section dedicated to practical issues of transferring Russian accounting and managerial reports to the CGAP report form.
Course goals:
- Study financial report formats,
- Analyze financial reports of MFIs,
- Study corrections for inflation, subsidized cost of funds and grants,
- Determine critical factors that influence MFI profitability.
Brief course content overview:- MFI sustainability.
- Overview of financial reports.
- Basic MFI accounting.
- Converting standard accounting reports to the CGAP format.
- Overview of financial analysis.
- Loan portfolio quality analysis.
- Creating a reserve for loan losses - how and why.
- Analytical corrections to financial reports (for inflation, subsidized costs of funds and grants).
- Efficiency factors, their analysis and use organizational decision-making.
- Profitability factors, their analysis and use in organizational decision-making.
- Comprehensive financial analysis.
- Development of action plans.
