1. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Management Information System

2. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Financial Analysis: a basis for management tools Financial analysis is an investigation of financial statements in order to improve the situation and stimulate further efficient development of a cooperative. It helps to answer the key question: Is my coop self-sufficient or not?

3. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Why is financial analysis so important for a coop? To understand the current situation To define and prevent negative trends To remain well informed and make correct management and financial decisions.

4. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Sources of information Coop’s balance sheet Profit and loss report Turnover reports Statistic data

5. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID What is MIS? A Management Information System (MIS) is a series of process and actions involved in capturing raw data, processing the data into usable information, and disseminating the information to users in the form needed. MIS is not a computer program but a complex system, a process of gathering and processing information in order to make an efficient management decision

6. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Data accumulation (from the “Credit-office” program and the accounting program) Import or loading of the data into the MIS program Processing data - For each coop - For each type of similar coops - For all the coops of an Association - For coops of different Associations Making management reports Various users get the MIS reports on a regular basis

7. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID The MIS Goal Qualitative and quantitative assessment of the present state of a financial cooperative for making the most efficient management decision

8. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Кто является пользователем СУИ? Internal users: Management and supervision bodies Employees Members External users: Regulating organs Partners Donors That is why MIS must meet their demands

9. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID 5 directions of financial analysis 5 groups of indicators: 1- profitability 2- efficiency and cost control 3- security of the financial structure 4 – portfolio quality 5 – performance indicators

10. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Profitability indicators will the coop have enough available funds to serve its members tomorrow as well, as it does today? return on assets financial self-sufficiency

11. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Efficiency and cost control indicators Does the coop serve the biggest number of members at the lowest cost? Total assets expense and yield Cost of loans Profitability of the loan portfolio Expenses and profit per member Number of members per employee

12. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Financial structure security indicators How secure is the coop’s assets and debts management? Is the coop well protected? Liquidity ratio Part of loans and savings in the assets Relation of productive assets to liabilities Average duration of loans and liabilities Reserve ratio

13. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Показатели качества портфеля займов How well does the coop manage its most important assets? Delinquency ratio Portfolio protection

14. NATIONAL UNION OF NON COMMERCIAL ORGANIZATIONS FOR MUTUAL FINANCIAL AID Performance indicators What is the coop’s place in the market? Number of members and growth Savings and growth Number of savings contracts Savings per member Loans, number of loan contracts and average loan Assets