TRAINING AND CAPACITY BUILDING: MICROFINANCE COURSE

Financial Management		Tentative Scedule
Course I	Principles for successful Microfinance	25/ 05 to 28/05/2010
Course II	Delinquency Measurement and Control, Interest Calculation and Setting	01/07 to 03/07/2010
Course III	Accounting for Microfinance Institutions	11/08 to 14/08/2010
Course IV	Financial Analysis for Microfiance Institutions	21/09 to 24/09/2010
Operations Management
Course V	Product Development for MFIs	22/10 to 25/10 /2010
Course VI	Improving Operating Efficiencies in MFIs	16/12 to 18/12 /2010

Course I: Principles for successful Microfinance

Course Abstract

In order to facilitate the uptake of active microfinance by potential organisations, this 3 day course has been designed with help of lectures and case studies to make the participants understand the scope and potential of microfinance, study various microfinance models, and then design a microfinance programme – replete with all the instructional design components.

Course Objectives

Ø      Understand the basic principles on which microfinance is organised

Ø      Likely impact of microfinance principles on MFIs

Ø      Microfinance models and characteristics

Ø      Designing a microfinance programme - client identification, product design, information systems, human resource and financing

Ø      Course Length: 3 days

Course length: 3 days

Facilitator:

Cost Fees: 250$

Class size: Limited 20 people

Course II: Delinquency Measurement & Control, Interest Calculation & Setting

 Course Abstract

Based on the premise that MFIs have to be sustainable for long-term impact, DQ/IR concentrates on two areas that are especially important for MFI managers: controlling delinquency and defaults and determining a sustainable interest rate. During this 3 day course, participants learn to determine causes and costs of delinquency, to measure and control arrears, to calculate the costs of credit for clients, among other skills, through exercises, group activities and case study analysis.

Course Objectives

Ø      Causes and costs of delinquency

Ø      Measuring & controlling delinquency

Ø      Responding to a delinquency crisis

Ø      Interest rates and microfinance

Ø      Setting sustainable interest rates

Ø      Understanding effective interest rates

Ø      Costs of credit for the borrower

Ø      Using new skills and knowledge

Course Length: 3 days

Facilitator:

Cost Fees: 250 $

Class size: Limited 20 people

Course III: Accounting for Microfinance Institutions

Course abstract

Based on the premise that MFIs have to be sustainable for long-term impact and that sound accounting is one of the pillars of financial health for an MFI, the Accounting course introduces MFI managers to the basics of accounting and how to create the most commonly used financial statements like the Balance Sheet, the Income Statement, and the Chart of Accounts. During this 3 to 4 day course, managers gain an understanding of accounting principles, methods and procedures through exercises, group activities and the accounting game "Balancing Act".

Course Objectives

Ø      Introduction to accounting – definitions, key principles and applicability to MFIs

Ø      Financial statements, portfolio report – overview

Ø      Recording and summarizing transactions

Ø      Learning how to account for donor funds, loan loss provisions and reserves and interest revenue

Ø      Creating more appropriate, transparent and accurate financial statements

Ø      Developing institutional action plans

Course Length: 4 days

Facilitators:

Cost Fees: 300 $

Class size: Limited 20 people

Course IV: Financial Analysis for Microfinance Institutions

Course Abstract

In order to create a sustainable institution, MFI managers need to have the skills to analyze the financial health of their MFI. This 4-day course provides participants with an understanding of the different ratios used by microfinance institutions, what they mean, and how they can be used to keep track of an institution's financial performance over time. The analysis is based on financial statements that reflect management needs for clear organized financial information. Participants learn how to format financial statements for decision-making, adjust for inflation and subsidies, measure portfolio quality, efficiency and profitability and to choose strategies to reach sustainability.

Course Objectives

Ø      Introduction to financial statements

Ø      Overview of accounting

Ø      Financial statement formats

Ø      Overview of financial analysis

Ø      Portfolio quality analysis

Ø      Analytical adjustments

Ø      Efficiency and profitability analysis

Ø      Use of ratios for managerial analysis

Course Length: 4 days

Facilitatior:

Cost Fee: 350$

Class size: Limited 20 people

Course V: Product Development for Microfinance Institutions

Course Abstract

The need to develop increasingly flexible and responsive financial products constitutes perhaps the most compelling challenge facing the microfinance industry today. In response to this growing need, a number of donors, practitioner networks, and projects are in the process of developing operational tools that practitioners can use to design demand responsive microfinance products. This four to six day course covers both the process of developing a new product (market definition, market research, product proto-type, costing and pricing, pilot testing, roll-out, marketing, lifecycle management, etc.) as well as the impact of introducing new products on the MFI (human resources, corporate culture, operations and systems, financial results, operating results, etc.).

Course Objectives

Ø      Overview of product characteristics and the development process

Ø      Assessment of institutional capacity for product development

Ø      Client oriented market research techniques

Ø      Development of product prototypes

Ø      Product costing: Activity Based Costing

Ø      Strategies and factors for product pricing

Ø      Pilot testing and launch

Course Length: 4 days

Facilitator:

Cost Fees: 350$

Class size: Limited 20 people

Course VI: Improving Operating Efficiencies in MFIs

Course Abstract

In order to be sustainable MFIs need to ensure that they do not pass on their inefficiencies to their clients. The operating cost structure of an organization is reflective of its efficiency. The operating costs of the organization stem from various factors such as its organization structure, its area of operation, scale of operations, its credit delivery mechanism (or model), its loan products and investment in infrastructure and systems. These factors differ from one organization to another on account of their genesis, age and nature of operations. However, these factors do not exist in isolation and the impact on costs is a function of interrelationships between them. This course through exercises , group activities and case study analysis imparts understanding and skills to the participants to identify the origin of their operating costs to enable them to be cost effective and efficient

Course Objectives

Ø      Understanding Elements of Operating Costs

Ø      Calculating Operating Cost Indicators

Ø      Governance and Institutional factors affecting costs

Ø      Operating Methodology and Costs

Ø      Products and Costs

Ø      Information Systems and Costs

Ø      Transforming MFIs by analyzing Operating Cost Indicators

Course Length: 3 days

Facilitator:

Cost Fees: 250 $

Class size: Limited 20 people