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Accounting

SACCO financial reports: what to produce and how to read them

A SACCO produces reports for three audiences: the board, which steers; the members, who own it; and the auditors and regulator, who check it. Most of what they need comes from a handful of reports.

By the SaccoMonitor team · Updated · 8 min read

The core reports

ReportWhat it showsWho uses it
Income statementIncome, expenses and surplus for a periodBoard, AGM, auditors
Balance sheetAssets, liabilities and equity at a dateBoard, AGM, auditors, regulator
Loan portfolio & PAROutstanding loans, arrears by age, portfolio at riskManagement, credit committee, board
Savings & share registersBalances by member and product; ownershipManagement, AGM
CollectionsMoney in and out by type, method and officerManagement, daily
Branch performanceMembers, savings, portfolio and activity per branchManagement, board

Reading the loan portfolio

Portfolio at risk (PAR)

The outstanding principal of loans with any overdue instalment, divided by the total outstanding principal. A PAR of 5% means 5 shillings in every 100 lent is on loans that are behind.

Watch the trend as much as the level: rising PAR over several months is an early warning that appraisal or follow-up needs attention.

Making reports people trust

  • Produce every report from the same records, so totals agree between reports.
  • Show the period or date on every report, and who produced it.
  • Keep the Excel version, so the board’s own analysis starts from the real numbers.
  • Close the accounting period once reports are presented, so they cannot silently change.

See how SaccoMonitor produces these in SACCO reporting software.

Frequently asked questions

At minimum an income statement, a balance sheet, a loan portfolio report with arrears ageing and portfolio at risk, and registers of savings and shares. Many SACCOs also report collections and branch performance monthly.

The income statement covers a period and shows income less expenses (the surplus or deficit). The balance sheet is a snapshot at a date and shows what the SACCO owns (assets), owes (liabilities) and its members’ equity.

See it working in SaccoMonitor

Register your SACCO and try it with your own products and members.