Navigation

Powerful Tools for Managing Growth, Profitability, and Impact

Language

English

Programs:

Boulder MFT

Description

As MFIs develop and become more complete financial intermediaries operating in highly competitive financial markets, key employees need to become more sophisticated financial managers. This class familiarizes participants with managing evolving financial structures, accelerated growth, volatile interest rate margins, fluctuating operating costs, and unpredictable non-performing loans.

Participants learn how to monitor and plan their institutional growth and performance through a simplified, computerized version of the PEARLS Monitoring and Business Planning System, an internationally used monitoring and management tool. Key financial principles and practices will be covered to sensitize participants to the full gamut of variables for building safe and sound financial institutions.

 

Prerequisits

In order to make full use of this class, participants should meet the following requirements:

  • Basic understanding of accounting debits and credits
  • Fluent English (Read, Write, Speak)
  • Operational or supervisory management responsibilities for any MFI
  • Access to a laptop computer with Microsoft Excel software.

Outline

Day 1:

  • Legal Accounting Requirements vs. Financial Analysis: Why they are different
  • Standardized Accounting Nomenclatures: What accounts are necessary?
  • Financial Reporting Formats to facilitate Financial Analysis
  • Inter-relationships between Assets, Liabilities & Capital
  • Linkages between Balance Sheets and Income Statements
  • Exercise: Reformatting Balance Sheets and Income Statements

Day 2:

  • PEARLS Financial Monitoring System Overview
  • The Critical Areas of Financial Performance
  • Relationship of PEARLS to Balance Sheet and Income Statement Accounts
  • Prudential Standards of Excellence: Key Performance Ratios that make a difference
  • Interpreting the Numbers: What does it all mean?
  • In-Class Case Study using PEARLS
  • Exercise: Calculating PEARLS ratios

Day 3:

  • Business Planning: How to link the Balance Sheet and Income Statement together
  • Managing Assets, Liabilities & Capital to achieve Growth, Efficiency, Profitability & Solvency, while at the same time, achieving social impact
  • The 10 Questions of Business Planning and the Consequences on Financial Performance
  • In-Class Example: Integrating Accounting, PEARLS, & Business Planning together

Day 4:

  • Using the Financial Planning Software (Excel Spreadsheet on diskette)
  • Workgroups: Case Study to Solve using PEARLS & Financial planning software

Day 5:

  • Workgroup Presentations: Assumptions, Diagnosis, Strategies, Results
  • Class Discussions: The strengths and weaknesses of each presentation
  • Summary of Key principles of Managing Assets, Liabilities, and Capital