Course Outline

The Why & How of Numbers for Government

  • Clarifying the most commonly used finance and accounting terms, including:
  • Financial regulations that govern the world of accounting and finance
  • Different methods of accounting: Cash vs. Accrual basis
  • Introduction to Financial Statements, which include:
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement
  • Statement of Changes in Equity
  • The interrelationships and data flow among all Financial Statements

Revenue & Expenditure for Government

  • What is included in Revenue and what is excluded from it
  • Cash vs. Revenue: Why these are not the same
  • Different types of expenditures used in recording financial transactions
  • Cost of Goods Sold (COGS): Importance and impact on profitability

Income Statement for Government

  • A detailed review of the Income Statement and its line items
  • Key terminology used in the Income Statement
  • Different types of profits: Gross Profit, Operating Profit, Net Profit
  • EBIT and EBITDA and their significance
  • Extraordinary items and their role in analyzing the Income Statement

Balance Sheet for Government

  • Key terms used in the Balance Sheet: Assets, Liabilities, and Equity
  • Nature of Assets and their classification into Current and Non-Current assets
  • Intangible assets and their recording in the balance sheet
  • Understanding Depreciation and Amortization
  • Classification of Current and Non-Current liabilities
  • Inclusion in Equity, Retained Earnings, and Reserves

Cash Flow Statement for Government

  • Structure of the Cash Flow Statement
  • Different classifications of cash flows according to activities
  • Cash flow from Operating Activities
  • Cash flow from Investing Activities
  • Cash flow from Financing Activities
  • Linking cash flow from the three activities and relating them to financing sources

Financial Statement Analysis – Ratio Analysis for Government

  • Objective of Financial Analysis
  • Different types of financial ratios
  • Calculation and interpretation of various financial ratios, including:
  • Profitability ratios
  • Liquidity Ratios
  • Solvency Ratios
  • Investor Ratios
  • Ratios as part of the full picture
  • Using ratios to assess a company’s financial health

Introduction to Budgeting for Government

  • The role of financial budgets in managing government operations
  • The budget cycle
  • Long-term vs. short-term budgets
  • Different budgeting methodologies: static budget, flexible budget, zero-based budgets, etc.

Investment Appraisal & Project Evaluation Techniques for Government

  • Understanding the Time Value of Money concept
  • Calculating discounted cash flows using the time value of money concept
  • Distinguishing between relevant and irrelevant cash flows when analyzing new projects
  • Introduction to various investment appraisal techniques, including:
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Payback Method
  • Decision-making regarding project acceptance or rejection
 7 Hours

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