Finance & Accounting Essentials for the Non-Financial Manager in the Public Sector

30 - 31 Jul 2019Wellington$2399 + GST
12 - 13 Nov 2019Wellington$2099 + GST
Event Details

Why Finance, Accounting & The Numbers Matter

  • Financial jargon demystified
    • Accounting records, ledgers and trial balance
    • Principal Financial Statements
    • Debits, credits and the principles of double entry
    • Revenue vs expenditure
    • Assets vs liabilities
    • Capital vs operating expenditure
  • The importance of timing: when revenue & expenditure are recognised
  • Accountability and responsibility

 

The Unique Government & Local Authority Context

  • Gain understanding of how finance & accounting works in the Public Sector setting
  • The Public Finance Act and Local Government Act
  • Delegations framework, sensitive expenditure and financial policies
  • The application and significant of accruals and accrual accounting
  • The Financial Statement in the Public Sector context
    • Comprehensive income (financial performance)
    • Balance sheet
    • Cash flow statements
  • Public Benefit Entity (PBE) Accounting requirements: Tier 1 and Tier 2 explained
  • IPSAS outlined

 

The Key Building Blocks Giving You Control

The Financial Statements decoded

  • Differentiating income, operating & capital expense items
  • Surplus on Performance and the link to Comprehensive Revenue and Expenses
  • Timing of income/expenditure
  • Inventory, depreciation and capitalised interest
  • Exceptional and material items
  • How you can put the pieces together to measure your financial health


Analysing your Financial Statements

  • How the Balance Sheet reveals the financial health – and what it doesn’t tell you
  • Comprehensive Revenue and Expenses
  • Current and Non-Current assets vs liabilities
  • Understanding depreciation and amortisation
  • Linking the Statement of Comprehensive Revenue and Expenses to the balance sheet
  • Monthly financial reports and the impact of accruals

Good GL and costing setups to enable regular reliable review and compliance reporting

Exercise: Analyse the financial statements of two organisations in order to understand and evaluate their strengths and weaknesses 
 

Funding & Cash Flow Lifeblood

Sources of revenue

  • Pulling apart the concepts of cash and accrued income
  • The importance of fully understanding cash flow drivers and the levers to manage them
  • Government and Local Authority funding and budgetary cycles explained
    • Appropriations, OBU and MBU
  • How cash flow statements indicate the stability, adaptability and long-term potential
  • Integrated cash flow models
  • Quantifying your cash needs over time – cash flow forecasts


Depreciation and amortisation

  • How depreciation impacts budgets over time
  • Amortization and impairment
  • Depreciation calculation

Measuring Performance

  • KPIs for your Business Unit
  • Key ratios and performance measures
  • Using a Balanced scorecard approach
  • Tracking financial performance

Exercise: KPI identification and balanced scorecard approach


Characteristics of A Winning Case to Gain A Budget Allocation

Looking at all possibilities for project funding

  • Existing budget round allocations
  • Future appropriations
  • Using the capital (interest cost only) vs revenue distinction to maximise the available spend across project life
  • Ensuring all compliance requirements are met to avoid rejection
  • Understanding and following the specific frameworks and prescriptions, rates used and KPIs identified
  • Sponsorship opportunities from inside and outside government and what it takes to win them
  • PPPs (Public Private Partnerships) and how they operate
  • How to compare a PPP solution vs a Government only solution
  • Cost of borrowing options

 

Project & Capital Investment Appraisal Decision Making

  • Evaluating a project or investment and its impact on cash flow and financial health
    • Investment evaluation tools and measures
    • Discounted cash flow (Net Present Value) techniques
    • Internal rate of return
    • Cost of Capital and Weighted Average Cost of Capital
    • Payback periods
    • Sensitivity analysis

Exercise: Evaluating the investment decision
 

Managing a business unit or cost centre

Understanding different cost methods

  • Understanding the differences between direct and indirect costs and overheads
  • Absorption, marginal, activity-based costing techniques
  • The difficulties of determining costs in service businesses
    • Pricing challenges created in the growth of user-pays environments
  • Break-even analysis to ensure fixed costs are covered
  • Costing control techniques & how to avoid costing traps

Exercise: Study examples that reveal the impacts on margin of various pricing and discount decisions.


A New Manager’s Guide to Budgeting

Budgets are more than numbers

  • Revealing the purpose of budgets – how to understand your organisation’s strategy and link your business unit’s goals through a budget
  • Your budget as a motivator
  • Goal setting – striking the right balance between stretch and realism
  • The relationship between your budget and how your Executive Leadership Team is measuring your performance


Types of budgets

  • Top down, bottom up
  • Incremental
  • Zero-based
  • Rolling budgets


Using your budgeting as a planning & control tool

  • Key budgeting techniques and approaches
  • How to forecast revenues and expenses
  • Monthly financial reports
  • The budget and reality
  • Post-budget review
  • The importance of not leaving the budget in the top draw
  • Uncovering & investigating budget variance
  • Variance reporting and analysis

Exercise: "Budgeting Setting"
 

Bringing It All Together

  • Applying financial tools and concepts in the real world
  • Finance and budget reporting essentials
  • Recognising traps in reporting and how the numbers are presented

 

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