Advanced Financial Management & Auditing in public Sector Training

Advanced Financial Management & Auditing in the Public Sector.
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