Training Materials

• Accounting.
• Financial Analysis.
• Product Development.
• Operational Risk Management.
• Human Resources Management.
• Delinquency Management.
• Microfinance Pillars (Basic).
• Loan Performer (Basic).
• Internal Audit.
• Governance.
• MicroFin Strategic Business Planning.

Course 1: Accounting for Microfinance Institutions (CGAP module)

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 five-day course, managers gain an understanding of accounting principles, methods and procedures through exercises, group activities and the accounting game "Balancing Act". Course Objectives

• Introduction to Accounting – definitions, key principles and applicability to MFIs.
• Financial statements, portfolio report – overview.
• Recording & Summarizing Transactions.
• Learning how to account for donor funds, loan loss provisions and reserves and interest revenue.
• Creating more appropriate, transparent and accurate financial statements.
• Develop institutional action plans.

Course Length: 5 days. [Download the Materials...]

Course 2: Financial Analysis for Microfinance Institutions (CGAP module)

In order to create a sustainable institution, MFI managers need to have the skills to analyze the financial health of their MFI. This five-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

• Introduction to Financial Statements.
• Overview of Accounting.
• Financial Statement Formats.
• Overview of Financial Analysis.
• Portfolio Quality Analysis.
• Analytical Adjustments.
• Efficiency and Profitability Analysis.
• Use of Ratios for Managerial Analysis.

Course Length: 5 days. [Download the Materials...]

Course 3: Product Development for Microfinance Institutions (CGAP module)

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 five- 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

• Overview of product characteristics and the development process.
• Assessment of institutional capacity for product development.
• Client orientation market research techniques.
• Development of product prototypes.
• Product costing: Activity Based Costing.
• Strategies and factors for product pricing.
• Pilot testing and launch.

Course Length: 5 days. [Download the Materials...]

Course 4: Operational Risk Management for Microfinance Institutions (CGAP module)

This five-day course helps microfinance institutions develop and improve the quality of their own risk management processes and focuses on problem prevention and early problem identification and control. Participants are provided with guidelines for establishing operational activities that assist an MFI to identify its vulnerabilities, design and implement controls and monitor the effectiveness of controls. Through exercises, group discussions and case studies, participants review concepts such as internal controls, fraud, and internal and external audit. Course Objectives

• Introduction to risk management.
• Institutional risk.
• Preventive controls.
• Business cycles to identifying and managing risk areas.
• The internal audit function.
• External audits.
• Mitigating risks.

Course Length: 5 days. [Download the Materials...]

Course 5: Human Resource Management for Microfinance Institutions (CGAP module)

As MFIs continue to scale-up, human resource management aims to provide guidelines on the functions of human resource management, with models and discussion about management leadership. During this five-day course, participants learn about the changing role of HRM in microfinance institutions’ growth, and the need for ‘right’ orientation for staff members. Through exercises, group discussions and case studies, participants review concepts of human resource management.

Course 6: Delinquency Management and Interest Rate for Microfinance Institutions (CGAP module)

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 five-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

• Causes and costs of delinquency.
• Measuring and controlling.
• Responding to a delinquency crisis.
• Interest rates and microfinance.
• Setting sustainable interest rates.
• Understanding effective interest rates.
• Costs of credit for the borrower.
• Using new skills and knowledge.

Course Length: 5 days. [Download the Materials...]

Course 7: Microfinance Pillars (Basic)

In order to facilitate the uptake of active microfinance by potential organizations, this three-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

• Understand the basic principles on which microfinance is organized.
• Likely impact of microfinance principles on MFIs.
• Microfinance models and characteristics.
• Designing a microfinance programme – client identification, product design, information systems, human resource and financing.

Course Length: 3 days.

Course 8: Loan Performer (Basic)

Contents of this training includes introduction to the LPF system, accounting double entries, how to construct a balance sheet, how to enter information of client and guarantor to the system, how to enter accounting transactions to the system, how to access and read LPF report.

Course 9: Internal Audit (USAID-Tijara module)

This course is delivered through a 3-pronged strategy, wherein USAID-Tijara, will a) assist the MFI in identifying a lead internal auditor, b) train the MFI internal auditor in setting up their internal audit function, and c) work with the MFI to institutionalize the internal audit function during a three-day on-site implementation training. This training will help the organization in defining the nature and scope of internal audit and its importance in the organization’s control environment as a fraud control measure, as well as establish the internal audit function within the MFI. Course Objectives

• Understand the various risks faced by MFIs.
• Describe various component of control environment and distinguish between them.
• Evaluate internal checks within their organizations.
• Understand the scope and role of internal audit.
• Assess the existing organizational policies.
• Evaluate the existing MIS of the organization.
• Formulate and conduct internal audit.
• Control on fraud.

Course Length: 2 days - Training; 3 days – Implementation Training (On-site).

Course 10: Governance (USAID-Tijara module)

This course is delivered through a 3-pronged strategy, wherein USAID-Tijara, will a) deliver basic training on governance to Board of Directors of the MFI on-site, b) develop a toolkit for with templates, tools, and guidelines for effective governance, and c) work with the MFI Board of Directors and Management Team to institutionalize the governance best practices during a three-day implementation training. Course Objectives

• Understand the concept of governance and the roles & responsibilities of Board Members.
• Constituting Board Committees.
• Checks and balances for effective governance and accountability.
• Self assessment and performance measurement.
• Systems and processes for institutionalizing effective governance.

Course Length: 1 day – Basic Training; 3 days – Implementation Training.

Course 11: MicroFin Strategic Business Planning 4.0

Microfin is a sophisticated tool, developed with Microsoft Excel, designed to assist MFIs with the development of detailed financial projections and budgets to complement their Business Plan, and to assist in the challenge of making the decisions necessary to achieve institutional objectives. Microfin is used by more than 5,000 microfinance professionals in more than 100 countries. This six day training guides participants through a step-by-step process for developing a business plan and financial projections for their institution using Microfin 4.0, the sophisticated financial projections software that was developed by the facilitators of this training course, Chuck Waterfield and Tony Sheldon, with financial support from CGAP, Women’s World Banking, and SIDA. Post this training, participating MFIs will receive in-house consulting support from USAID-Tijara to develop their business plans and five year financial projections. Course Length: 6 days – MicroFin 4.0 Training; 7 days – Consulting Support.