Advanced Accounting and Auditing for Public Sector Organizations

Course Outline

Course Title: Advanced Accounting and Auditing for Public Sector Organizations

Learning Objectives

The main objective of this course is to give delegates a good understanding of public sector financial management. By the end of the training delegates will have acquired the following skills;

• The financial planning cycles of government and other public sector organizations
• How to understand and interpret financial information Basic accounting concepts
• The elements of sound financial management in public sector organization
• Resource allocation and costing
• Budgeting in organizations
• Budget reallocation and cuts
• Cash forecasting
• Management control
• Elements of financial accountability both within public sector organization and outward to the public
• Reporting
• Accountability
• Internal and external oversight
• Financial Management of Donor funded projects

Main Training Modules

 Becoming a Financially Literate Manager in Government & other public sector Organizations.

• Financial Management in the Public Sector Context
• The public sector financial landscape
• The Financial Management Framework
• Financial literacy – personal and organizational

 Accountability and Risk: Key Concepts in Framing Financial Management

• Nature of public sector accountabilities and views of risk: public versus private?
• Architecture of accountability in the financial management context
• Conceptual framework for risk
• Risk management – concept and process
• The concept of financial risk.
• Risk in operations and financial control

Public Sector Accounting Principles/Accrual Budgeting and Accounting and Accrual Accounting and Budgeting

• Defining accounting – and some history
• Financial accounting and management accounting
• Users of accounting information: internal and external
• Accounting standards: GAAP/IFMS – basic principles
• Understanding the cash and accrual basis for accounting
• Key definitions in accounting statements

Understanding and Using Financial Statements Financial Statements

• Double entry accounting
• Accounting Cycle
• The fundamental accounting equation
• Journal and ledger functions: getting numbers right
• Debits and credits, T-accounts
• Core financial statements:
• Balance Sheet/ Statement of financial position
• Income Statement/ Statement of operations
• Cash Flows
• Changes in Net Debt
• Management Discussion and Analysis
• Relationship of Financial Statements to external reporting and internal use.

 Planning & Budgeting.

• Understanding what a budget is in financial management terms, in policy terms and in operational terms
• Budget architecture:
• Budgets by general purpose: Operating and capital budgets
• Types of operating budgets: line, function, program, performance o Flexible versus fixed budgets
• Off budget expenditures and funds
• Budget cycles
• Budgets as a control tool

Financial Management in the Public Sector

• Cutting Your Budget: Reductions and Reallocations Taking It Back: Reallocation and Budget Cutting
• Reallocation in the budget process: internal and external
• Strategic reviews around the world
• Cutting tools: how to cut
• Risks, consequences and sustainability
• Practical considerations for budget managers

Management Control: A Risk Based Approach Managerial Control

• The concept of managerial control
• Risk and risk management
• Management Control Framework – why and for whom?
• Management Control Process
• Core concept of variance
• Materiality and due diligence
• Tools of control

Cash Management Financial Management in the Public Sector

• Cash Management: In-Year Budget Control and Monitoring
• Defining Budget Management
• Objectives of Effective Budget Management, Monitoring and Control
• In-Year versus Plan Management
• Forecasting on a Cash Basis: Cross Walking from Accrual Budgets
• Discontinuities between Budgets and the Ability to Plan
• Establishing a Budget Management System
• Preparing a Budget Plan
• Arriving at an Adjusted Budget
• Estimating Budget Performance for the Reporting Period
• The Basis of Forecasting
• Monitoring Financial Performance and Variance Analysis

Reporting and Accountability

• External Reporting and Accountability Confirming Control: Accountability and Reporting
• Objectives of financial and performance reporting: external and internal
• Reporting to account and reporting to manage
• Public sector reports – range and use
• Creating good measures, creating clear measures
• Integrating financial and non-financial performance data
• Balanced Scorecard-type systems of reporting: wonders and warts

Audit and Oversight in Managing Your Money

• What is audit, how it supports management and how it has to be independent to do that
• Risk in determining what to inspect, oversee and audit o Components of audit risk o Materiality
• Forms of oversight – internal and external

Grants Management & Internal Compliance.

• Identify and understand the critical terms and conditions of grant aid; for donor-funded projects
• Ensure compliance with donor terms and conditions;
• Providing supporting documents, correct procurement of goods and services and meeting financial reporting requirements;
• Managing multiple-funded programmes
• Provide tools for efficient Management of Donor- funded project
• Describe the phases in the grant management cycle clarify key responsibilities and routines needed for successful grant management;
• Identify the requirements for closing off a donor grant;

Way forward After the Training

Participants will develop a work plan through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training

Training Evaluation:

Participants will undertake a simple need assessment before the training to identify the knowledge gaps and also after the training so as to monitor knowledge and skills gained through the training