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

Interactive online training course

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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