Project Management Budgeting and Analysis Course

Introduction

Budget is an inherent part of the financial planning process both in the public sector as well as the private sector. In the public sector, the budget affects almost every citizen and forms the basis of a government’s fiscal policy. It is also a crucial document to plan for future development expenditure. Given the size of public sector expenditure, all appointed budget analysts must have the right skills to deal with forthcoming challenges.

This course has a focus on Project Cost Management within the field of Project Management. Project Managers face a large amount of data to disseminate and analyse, not the least of which is financial. This course will assist people to integrate financial analysis tools and theories which can be applied in their PM work covering the basic concepts of project cost management, estimating various costs and sources of financing, determining final budget values and establishing control measures for financial outcomes

Budget analysts at all levels of the government are responsible for determining how to distribute resources effectively among various departments and development programmes. Budget analysts also help measure performance, analyse financial results and help draft budget-related legislation.

Duration

5 Days

Who should attend?

Finance Directors, Finance Managers, Procurement Directors, Procurement managers, Procurement officers, Administrators, Project officers, Budget Accountants, Auditors, Chief Accountants, Credit Controllers

Course Objective:

On completion of this course, students will:

• Learn how to determine how project costs will be estimated, budgeted, managed and controlled.
• Be able to assess funding options including internal and external sources of financing.
• Set metrics for monitoring and controlling project budgets.
• Appreciate the importance of budget preparation exercise
• Critically review the assumptions made in the budget preparation exercise
• Understand different types of budgets and use the one most appropriate to the organization.
• Learn to prepare the organization’s budget from the scratch
• Learn to differentiate between capital and revenue expenditure
• Project Various Types of Expenditures
• Compare actual results with the budgeted figures and conduct variance analysis
• Understand Various sources of finance with their utilisation, based on the cost of capital
• Obtain an overview of the financial statements and management reports to evaluate the organisation’s performance
• Understand ratio, horizontal and vertical analytical concepts
• Prepare forward plans based on interim quarterly and half-yearly results

Course Content

Module 1: Project Management

• Project cycle management
• Project planning & scheduling
• Critical path and network analysis
• Project Monitoring & Evaluation and Reporting
• Evaluation of international aid offers

Module 2: Introduction to budgeting and the financial statements

• Planning and budgeting concepts
• Budget methodologies
• Risk, uncertainties and assumptions
• Sensitivity Analysis

Module 3: Different approaches to preparing budgets

• Preparation of Master Budget
• Fixed v/s Flexible Budgets
• Quarterly Reviews
• Forward Planning
• Budget/ Actual Comparison
• Zero-based Budgets

Module 4: Budget Preparation

• Accounting Conventions
• Accounting Policies
• Revenue Recognition
• Cash v/s Accrual Accounting
• International Accounting Standards (IAS)
• International Public Sector Accounting Standards (IPSAS)
• WorldCom / Enron Scandals

Module 5: The Budgeting Framework

• Common budgeting approaches/models
• Process flow of an organization
• Budgeting in small/large companies
• Top down vs. bottom-up involvement
• Sources of information
• Revenue and cost drivers
• Relationship between activities, resources, costs, and cost drivers
• Building the budget

Module 6: Financial Modelling

• Components of Financial Reports
• Balance Sheet
• Profit & Loss Statement
• Statement of Cash Flow
• Statement of Changes in Equity
• Accompanying Notes to the Accounts

Module 7: Controlling and analysing budgets

• Market trends and analysis
• Ratio Analysis
• Vertical Balance Sheet & P&L Statement
• Horizontal Balance Sheet & P&L Statement
• Variance Analysis
• Price Variance
• Quantity Variance
• Mix Variance

Module 8: Cost Accounting

• Total Absorption Costing
• Marginal Costing
• Contribution Margin
• Break-even Analysis
• Sensitivity Analysis

Module 9: Mastering Financial Analysis

• Building a Financial Ratio Database in Excel
• Practical Modelling: The Cost-Volume-Profit Relationship
• Measuring and Improving Return On Investment
• Measuring and Improving Asset Management Efficiency
• Measuring and Managing Capital Structure and Risk
• Practical Modelling: The Effect of Gearing on Shareholders’ Earnings

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course: This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: [email protected] Tel: +254 721 331 808

Training Venue

The training will be held at our Upskill Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.