How well do you compare financially?
Model Answers, a subsidiary of FSMD Ltd has launched SHAPE-UP, a new Excel-based financial performance and peer-group evaluation tool with an embedded database comprising the largest 100 housing association registered providers (HARP100).
About the Software
The model can be used at board and senior management level to:
- Appraise the outputs and different scenarios from an association’s annual business plan.
- Benchmark your association against individual competitors, sector aggregates and peer groups.
- Assess merger prospects.
- Evaluate internal performance
- Present graphics of data analysis to funders.
If your Association is in the HARP100 database SHAPE-UP can immediately run off a summary historical financial performance evaluation and benchmark it against the whole database or selected sub-sets.
You can also call up more detailed graphical representations of individual measures. If you have a forecast business plan (I&E, B/S, Cash Flow) you can enter up to 10 years forward and evaluate the impact on the summary profile and individual measures year by year.
If your Association is not in the HARP100, it can easily be added by entering a minimum of three years accounting data and run as above.
A clear understanding of the financial implications of strategic and operational decisions, and the ability to
communicate those issues in a clear and concise way to executives, non-executives, lenders and regulators is
essential in successfully shaping the future direction of associations in the constantly changing landscape that is the social housing sector.
The model provides an automatic and standardised approach for analysing and monitoring the historical and forecast future performance of associations.
The model provides a detailed analysis both historically and for forecasts that:
- emphasises the overall financial structure of an organisation based on its balance sheet, profitability and cash flow characteristics.
- focuses on the importance of major items of revenues and costs for operating performance and also on significant trends
- facilitates the evaluation of operating performance relative to the costs of funding.
- summarises the credit status of the association in terms of balance sheet gearing, interest cover and debt repayment ability
- prompts the identification of financial management issues, financing requirements and sustainability of performance
The Aggregation & Peer Groups module allows the user to create a data base of key financial data for selected associations which can then be used to make peer-group comparisons. Included is a peer-group comparison table with best and worst quartiles, median and aggregate data arranged graphically using a traffic light system of analysis and a comparative performance rating for the current and previous year.
This is based on a core database of the current year and previous years’ audited accounts (at least 3 years’ data) for the top 100 housing association registered providers ranked by the number of units under management and called the HARP100 Database.