At the British Academy for Training and Development, the "Budget Analysis and Financial Planning" course covers the critical role of budgets in both the public and private sectors. In the public sector, the budget is a key element of fiscal policy, impacting citizens and future development plans. Given the complexity and scale of public sector spending, budget analysts must possess the necessary skills to navigate emerging challenges.

Budget analysts play a pivotal role in government by ensuring the efficient distribution of resources across departments and development programs. They are also involved in performance measurement, financial analysis, and the drafting of budget-related legislation.

Who should attend?

• Budgeting and planning personnel.
• Revenue Department personnel.
• Chief Executives.
• Financial Controllers and Auditors.
• Departmental Managers.
• Data Analysts.
• Risk Officers.
• Those wishing to develop their capabilities in this field.

Knowledge and Benefits:

After completing the program, participants will be able to master the following:

• Determine how a government entity or a company would generate funds and how they would be spent.
• Collaborate with different divisions and departments to develop the budget of the organization.
• Scrutinize budget proposals of the departments to ensure they are complete, accurate and in compliance with local laws, regulations, and policies.
• Clearly distinguish between revenue and capital items and budget accordingly.
• Monitor organizational expenditures, identify areas where the company is overspending and make appropriate recommendations.
• Approve within-budget expenditure and forecast future cash requirements.
• Compare actual results to budgeted figures at the end of each reporting period and report on significant variances.

Course Content

• Introduction to budgeting and the financial statements:
  • Planning and budgeting concepts.
  • Budget methodologies.
  • Risk, uncertainties, and assumptions.
  • Sensitivity Analysis.
  • Different approaches to preparing budgets
  • Preparation of Master Budget
  • Fixed v/s Flexible Budgets
  • Quarterly Reviews
  • Forward Planning
  • Budget/ Actual Comparison
  • Zero-based Budgets
  • 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

• 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

• Controlling and Analyzing 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

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

• Sources of Finance:
  • Equity and Debt Financing
  • Gearing ratios
  • Cost of Capital
  • Weighted Average Cost of Capital
  • Decisions regarding Dividend Payments

• Working Capital Control:
  • Inventory Control
  • Accounts Receivable
  • Accounts Payable
  • Reconciliation of Sub-ledgers
  • Other Current Assets & Current Liabilities
  • Tax and Deferred Taxation

• Public Sector Development / Capex
  • Capital Investment Appraisal
  • Return on Investment
  • Payback period
  • Net present Value
  • Internal Rate of Return
  • Public/ Private Partnership projects

• Enterprise Resource Planning (ERP):
  • Sales
  • Bill of material

• Material Management:
  • Procurement
  • Production
  • Integration with General Ledger

• Practical applications.