The Performance Monitoring Tool(PMT) 2009 is essentially a tool to capture data from an institution’s accounting and portfolio system via an input form or an import function; based on this data it creates financial reports and ratios to be used by an institution’s management. It is not a comprehensive Management Information System, and shouldn’t be seen as a substitute for this. However, it collects, stores and computes key financial data in a systematic way providing value for any financial institution.
The purpose of the PMT is to enable MDIs, MFIs, SACCOs and financial institutions involved in microfinance to self monitor, report and receive feedback on their progress against relevant performance standards and peer groups in a coherent and transparent way. This will contribute to improved risk management and promote adherence to minimum requirements and good practices within the entire industry, thus improving financial services available to existing as well as prospective clients. While saving valuable time spent on reporting for the various financial institutions, this will also ensure the availability of more comprehensive and accurate information on the sector, and serve as a cornerstone for regulation and policy making for Uganda’s financial system as a whole.
Microfinance institutions (MFIs) in Uganda voluntarily use the PMT to report on their financial performance. The tool captures data from an institution’s accounting and portfolio reports, then aggregates this data to produce meaningful information that is easy for board members, staff, and other key stakeholders to understand and interpret. Once AMFIU receives an organization’s data from the PMT, it is stored in the central database, the PMS, for further analysis.
- In 2015, AMFIU held the first ever Transparency Awards for the Ugandan microfinance sector. Financial Reporting still stands as an important aspect in the growth and development of the microfinance industry. The popularity of the PMT has increased in the microfinance industry not only in Uganda but also in Rwanda and soon to be in Sudan, Kenya and Tanzania. To appreciate the users and to encourage the non-users, AMFIU held the "AMFIU TRANSPARENCY AWARDS" for the first time ever during the national Microfinance conference in January 2015.Institutions were awarded on the basis of best performing in terms of ( profitability, efficiency, liquidity and portfolio quality) and best reporting( Consistent and on time). A total of 26 institutions were awarded both PMT and SPM awards combined. Since then, this activity has continued to be on the AMFIU calendar annually.
Using the combined PMS and PMT, AMFIU aims to increase MFI transparency, and hence accountability. Ultimately, these help to bring the best microfinance services to the people of Uganda.
AMFIU is the custodian of the Performance Monitoring Tool