Best Practices in Financial Forecasting for Budget Preparation
Future revenue and expenditure trends have a significant short and long-term impact on policies, strategic goals, and overall service delivery. The forecast is an integral part of the annual budget process to presents estimated information based on past, current, and projected financial conditions. An effective forecast allows for improved decision-making in maintaining financial discipline and much-needed social services. All public sector entities at all levels must forecast major revenues and expenditures the forecast should extend in a medium-term with valid assumptions and methodology. The financial forecasts should be made available to all stakeholders in the budget process. This course provides the skills and pest practice in financial forecasting for budgeting.
Learning Outcomes
By the end of this training, participants should be able to
- Understand the budgeting process and key stakeholders involved in the budget preparation process.
- Strategically link the organization’s strategic plan, work plan and priorities with the budgeting process
- Use both qualitative and quantitative financial forecasting techniques to inform the budgeting process of the organization.
- Set realistic financial targets based on the organizations cashflow minimizing the risk of budget cuts.
- Understand cost behaviour, the use of alternative costing systems and the hidden costs that significantly impact on the budget estimates and propose budget control techniques to achieve the organizations set goals.
- Build financial growth planning models and traditional and activity-based budget models and improve budget accuracy.
- Follow best practice in developing different types of budgets in line with the organization’s strategic objectives
Pre-Training Needs Assessment
1
Video Introduction to the Course
2
Pre-Training Needs Assessment
Module 1: Introduction to the Budgeting Process and Planning
1
Overview
A major element of financial data activity rests in the act of budgeting. Budgeting is the process of allocating finite resources to the prioritized needs of an organization. In most cases, for a governmental entity, the budget represents the legal authority to spend money. Adoption of a budget in the public sector implies that a set of decisions has been made by the governing board and administrators that culminates in matching a government's resources with the entity's needs. As such, the budget is a product of the planning process. The budget also provides an important tool for the control and evaluation of sources and the uses of resources. Using the accounting system to enact the will of the governing body, administrators can execute and control activities that have been authorized by the budget and to evaluate financial performance on the basis of comparisons between budgeted and actual operations. Thus, the budget is implicitly linked to financial accountability and relates directly to the financial reporting objectives established by the governing body. The planning and control functions inherent to any organization, including Public Sector entities, underscore the importance of sound budgeting practices for the following reasons: • The type, quantity, and quality of goods and services provided by governments often are not subject to the market forces of supply and demand. Thus, enacting and adhering to the budget establishes restrictions in the absence of a competitive market. • These goods and services provided by governments are generally considered critical to the public interest and welfare. • The scope and diversity of operations in an organization make comprehensive financial planning essential for good decision-making. • The financial planning process is critical to the expression of citizen preferences and is the avenue for reaching consensus among citizens, members of the governing board, and staff on the future direction of the governmental unit's operations. The link between financial planning and budget preparation gives the budget document a unique role in governmental organizations. Budgets in the public arena are often considered the definitive policy document because an adopted budget represents the financial plan used by a government to achieve its goals and objectives. When a unit of government legally adopts a financial plan, the budget has secured the approval of the majority of the governing board and reflects • public choices about which goods and services the unit of government will or will not provide, • the prioritization of activities in which the unit of government will be involved,
2
Lesson1: Strategic Planning and Organizational Priorities
Strategic planning is the process of documenting and establishing a direction of your small business—by assessing both where you are and where you’re going. The strategic plan gives you a place to record your mission, vision, and values, as well as your long term goals and the action plans you’ll use to reach them. A well-written strategic plan can play a pivotal role in your entity’s growth and success because it tells you and your colleagues how best to respond to opportunities and challenges.
3
Assignment – Strategic Planning
4
Strategic Planning in Closure
During this lesion, we set out to learn and achieve the following: 1. How to formulate a strategic plan through 5 Key Questions. 2. Who is involved in the strategic planning process?
5
Strategic Plan
6
Lesson 2: Financial Planning
7
Financial Management Quiz
8
Lesson 3: Linking budget to the Strategic Plan
9
Assignment – Linking Budget to Strategic Plan
10
Lesson 4: Key Performamnce Indicators In Budgeting
11
Assignment -Assignment Key Performance Indicators in Budgeting
Module 2: Financial Forecasting Process
1
Introduction to forecasting
2
Lesson 1: The Purpose of forecasting and setting financial Targets
3
Setting Realistic Financial Targets
4
Lesson 2: Data Analysis and Statistical Tools
5
Assignment -Data Analysis
6
Quiz -Data Analysis
7
Financial forecasting techniques
Financial Forecasting Excel Worksheet and Assumptions
8
Assignment – Financial Forecast
Module 3: Revenue Projection
1
Overview of Revenue Projection
2
Video Revenue Projection
3
Lesson 1: How to make Revenue Projection
4
Assignment Revenue Projection
5
Using Revenue Projection in Budgeting
6
Assignment Revenue Projection
Module 4 Costing and Cost Analysis
1
Overview on Costing and Cost Analysis
2
Assignment Organizations Costs
3
Lesson 2: Cost Classification/ What if Analysis
4
Assignment What If Analysis
5
Lesson 3: Activity Based Costing
6
Activity Based Costing
7
Lesson 4: Effective Costing in the Budget Process
8
Costs in the Budget
Module 5: The Budget Process
1
Module Overview
2
Lesson 1: Budget Cycle and Budget Perpetration Process
3
Lesson 2: Key Stakeholders in the budget Process
4
Stakeholders in the Budget Process
5
Lesson 3: Integrating Costs in the Budget
6
Integrating Costs in the Budget
7
Lesson 4: Activity based budgeting
8
Activity based Budgeting
Module 6: Risk and Uncertainty in Budgeting
1
Overview of the Module
2
Lesson 1: Risks and Uncertainty Rules
3
Lesson2: Worst and Best case-Scenario
4
Lesson 3 : Scenario Analysis
Excel Sheets for Practice
Post Training Assessment
1
Post Training
2
Closing Video
Be the first to add a review.
Please, login to leave a review
