Course Outline

The Why & How of Numbers for Government

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

Revenue & Expenditure for Government

  • Determining what is included in Revenue and what is excluded from it for government entities
  • Distinguishing between Cash and Revenue, explaining why they are not the same for government accounting
  • Identifying different types of expenditure used in recording financial transactions for government operations
  • Explaining Cost of Goods Sold (COGS) and its importance in assessing profitability for government agencies

Income Statement for Government

  • A detailed review of the Income Statement and its line items for government entities
  • Understanding key terminology used in the Income Statement for government financial reporting
  • Differentiating between types of profits, such as Gross Profit, Operating Profit, and Net Profit for government agencies
  • Explaining Earnings Before Interest and Taxes (EBIT) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and their significance for government financial analysis
  • Understanding extraordinary items and how they are treated in the analysis of the Income Statement for government entities

Balance Sheet for Government

  • Key terms used in the Balance Sheet, including Assets, Liabilities, and Equity for government entities
  • Understanding the nature of Assets and their classification into Current and Non-Current assets for government financial reporting
  • Explaining intangible assets and how they are recorded in the balance sheet for government entities
  • Understanding Depreciation and Amortization in the context of government financial statements
  • Classifying Current and Non-current liabilities for government financial management
  • Determining what is included in Equity, Retained Earnings, and Reserves for government entities

Cash Flow Statement for Government

  • Understanding the structure of the Cash Flow Statement for government entities
  • Identifying different classifications of cash flows according to activities for government financial reporting
  • Cash flow from Operating Activities for government operations
  • Cash flow from Investing Activities for government investments
  • Cash flow from Financing Activities for government financing sources
  • Establishing the link between cash flows from these three activities and how they relate to different financing sources in government financial management

Financial Statement Analysis – Ratio Analysis for Government

  • Defining the objective of Financial Analysis for government entities
  • Identifying different types of financial ratios used in government financial analysis
  • Calculating and interpreting various financial ratios, including:
  • Profitability ratios for government entities
  • Liquidity Ratios for government financial health
  • Solvency Ratios for government sustainability
  • Investor Ratios for government stakeholders
  • Understanding the limitations of using ratios and their role in providing a partial picture of financial health for government entities
  • Using ratios to analyze a government entity's financial health and performance

Introduction to Budgeting for Government

  • Explaining how financial budgets play a vital role in managing government operations
  • Describing the budget cycle for government entities
  • Differentiating between long-term and short-term budgets for government planning
  • Exploring different budgeting methodologies, including static budget, flexible budget, and zero-based budgets for government financial management

Investment Appraisal & Project Evaluation Techniques for Government

  • Clarifying the Time Value of Money concept in the context of government financial planning
  • Using the time value of money to calculate discounted cash flows for government projects
  • Distinguishing between relevant and irrelevant cash flows when analyzing new government projects
  • Introducing various investment appraisal techniques, including:
  • Net Present Value (NPV) for government project evaluation
  • Internal Rate of Return (IRR) for government financial decision-making
  • Payback Method for assessing government project feasibility
  • Making informed decisions regarding accepting or rejecting new government projects based on financial analysis
 7 Hours

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