Public Financial Management Practices

SUITABLE FOR:

Directors, Director-Generals, Senior Manager, Auditors, Audit Committee members, Financial Controllers, Auditor Generals and Accountants.

OBJECTIVES:

By the end of the course, delegates will:

• Have developed strategies to secure sound financial management and control in their organisation
• Have acquired modern accounting techniques in their organisation
• Have developed an efficient Audit System
• Have improved decision – making process with regard to financial issues in line with the Stakeholders interest.
• Be a able to read a budget and set of national accounts in different jurisdictions
• Appreciate how public financial management interfaces with politics and political choices
• Be able to use financial management to enhance the performance of public organisations

SUMMARY:

The topics covered include:

WEEK ONE
Corporate Governance

• What is corporate governance?
• Objectives and strategy of governance
• The institutional and legislative backgrounds
• Role of Board / Directors (directors’ duties / legal issues)
• Board composition and structure
• Case studies
• Risk management in the boardroom
• The relationship between the board and management
• Shareholder rights and responsibilities
• Corporate governance and value creation

Strategic Leadership

• Leading in a changing business world.
• Fundamental concepts in executive leadership.
• Sources of executive power and influence.
• Leadership requirement.

Risk Management

• The need for risk management
• The evolution of banking risk
  • Old Basel Accord
  • New Basel Accord
• Basel II
  • Objectives, structure and pillars
• Challenges of the old and new Accords
• Case studies
• Lessons from financial disasters
• G-30 report
• Best practices in developing risk management, environment, appetite and policies

International Accounting Standards (IAS)

• Current issues and latest developments in IASs and their world-wide applications and implications
• GAAP Accounting
• Case studies, practical examples of international companies
• Usage of IASs/IFRS

WEEK TWO
The Context of Financial Management

• Introduction
• What is a budget?
• 'New Public Management' and financial management
• Budget Classification and Structure
• Classification of the Budget
• Budget Composition
• The Line Item System vs Programme Systems

Accounting and Budgeting: National Level

• Introduction: approaches to public accounting and budgeting
• Cash Accounting vs Accruals Accounting
• Planning: the macroeconomic, fiscal framework and the medium-term expenditure framework
• The role of the Ministry of Finance
• Budget Timetable

International Public Sector Accounting Standards Board (IPSAS) and cash standards:

• The standards setters for public sector financial reporting, nationally and internationally
• The origins and role of the IPSASB and IFAC membership criterion 5
• The development and promotion of a suite of accrual based standards
• The general cash basis IPSAS and the relevance of consolidated accounts for the public sector; whole of government accounts or reporting at ministerial level
• Accounting for international assistance and budget reporting standards
• Application of IFRS to the public sector
• Regularity and probity
• Opinion on the financial statements
• Value for money audit

Auditing Standards and Ethical Code:

• Basic principles
• General standards
• Field standards
• Reporting standards
• Ethical Code
• Integrity
• Independence, Objectivity and Impartiality
• Professional Secrecy
• Competence