Tracking Financial Performance Standards of ... - Sa-Dhan

Tracking Financial Performance Standards of Microfinance Institutions20. The same can be done for all months and brought into the income statement. Indirect staff costs allocated,which, if not tracked is akin to a hidden/unreported subsidy.21. If any financial resources are borrowed or received as a grant from non-financial service departments, thesame adjustments as made for concessional borrowings and/or grants for loan fund capital must be donehere.22. Once all these adjustments are done, then the cost allocation is complete and helps present a more accuratefinancial picture of the MFI.It is to be noted that while cost allocation may seem to be a tedious exercise, it is very necessary, especially,if non-financial services constitute > 10% of the total turnover.46