Advanced Budgeting

Fully revised and updated programme for 2014 to improve your budgeting process and increase your profitability

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Advanced Budgeting

Book and pay NOW and bring your colleague for FREE on this course Only applicable for March 2014 See back page for details*

Helping senior finance professionals make sound business decisions 23 – 26 March 2014* 2014 Kempinski Hotel, Mall of the Emirates, Dubai, UAE 21 – 24 September 2014 Jumeirah Emirates Towers Hotel, Dubai, UAE

5 Key Business Benefits 1.

Understand why the traditional budget planning process, preparation, review and control are seen by most top companies to be out of date and a consideration of the alternatives

2.

Discover and leverage on the different types of budgeting techniques and finance management tools that can be used in organisations

3.

Insights into defining the “uncertainties” that affect companies’ ability to produce accurate budgets, and quantify this with stress-testing, what-if and scenario analysis techniques

4.

Streamline budget model building by applying best practice functions, tools and techniques

5.

Understand how to build budgets for the “real world”, allowing for flexibility, performance measurement and future change

Y are requested to bring your You laptop with Excel

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Advanced Budgeting 23 – 26 March 2014 • Kempinski Hotel, Mall of the Emirates, Dubai, UAE 21 – 24 September 2014 • Jumeirah Emirates Towers Hotel, Dubai, UAE Course Timings Registration will be at 07:30 on Day One. The course will commence at 08:00 every day and finish at 14:30.There will be breaks for refreshments at approximately 10:30 and 12:30 and lunch will be served at the end of each day’s session.

Course Prerequisites

Discussion: Critiquing the budget process

This course covers the practical usage of Excel in a budgeting context. It is designed for users who use Excel fairly regularly, and are comfortable with commonly used Excel tools and techniques. Whilst a brief overview of tools used in this course is provided, it is assumed that delegates are reasonably confident Excel users.

Beyond Budgeting • We investigate the radical “Beyond Budgeting” concept • How does it compare to the traditional budgeting process?

• Management tools to support the process • Case studies of organisations who have successfully implemented “Beyond Budgeting”

Course Methodology This course will be taught using a combination of formal instructions, combined with practical and interactive exercises and case studies used to reinforce the concepts taught in each section of the course.

Case studies include critique of conventional budgeting techniques and real-world examples of problems and latest budgeting techniques and best practice guidelines.

Software Used This course is demonstrated mostly using the latest Microsoft Excel 2010, however course materials cover Excel 2003, 2007 and 2010 as well as Excel for Mac 2011. This course is very practical and hands-on.

In order to complete the exercises, delegates are required to bring their own laptops with their preferred version of Excel installed.

Course Outline

Day One

The Forecasting Process – A Step Beyond Mere Budgeting • Defining rolling forecasts • Preparing a rolling forecast • The process • Matching forecasts and actuals • Why do them - The difference between budgeting and forecasting - Why change from traditional budgeting to rolling forecasts?

- Techniques for designing and preparing rolling forecasts - Forecasting for seasonality - Identifying and using business drivers – the key to forecasting - Utilise statistics and regression analysis tools in Excel to predict and estimate future results - Tools and techniques to ensure forecast accuracy

Exercise: Create a rolling forecast

Strategic Budgeting How Budgeting Fits Into The Strategic Planning Process • Aligning budgets and resource allocation to strategy, business objectives and financial outcomes • Budgeting to achieve organisational objectives – does it work?

• How to turn measurement into management • Determining business objectives, long term plans, budgets and forecasts • Translating the organisation’s mission, objectives and values into measures and targets • Strategic planning as key to successful budget outcomes • Communicating strategy across the business

Discussion: How is the strategic plan and budget linked and communicated in different organisations?

Why Do We Budget?

• Understanding the background to traditional budgeting • Learning from best practice organisations • Staff perceptions and changing environments

Discussion: What drives profit in your organisation?

What’s Wrong With How We Budget?

• Drawbacks and limitations of traditional budgeting • Estimations and rigidity • Dysfunctional budgeting behaviour • Focus on value creation, rather than cost limitation and constraint

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Discussion: Would “Beyond Budgeting” work in your organisation?

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Day Two Balanced Scorecard And Practical Budgeting Techniques Balanced Scorecard • Rolling out the strategy into objectives and targets • What gets measured, gets done • Performance measurement • Benchmarking Reviewing Data Gathering Techniques And Cost Structures For Budget Optimisation And Best Performance • S Curve • Trends, seasonality and time series methods • Probability theory • Regression analysis • Managing fixed and variable costs • Allocating and controlling overhead and support costs • Historical vs zero-based budgeting for mandatory and discretionary costs • Relationship of costs to outputs – cost/volume/price relationship • Break even analysis

Practical Exercise: Break even calculations based on an understanding of fixed and variable costs New Techniques In Budgeting • Why next generation organisations are changing to rolling forecasts

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• Top-down vs bottom up • Driver-based budgeting e.g. budgets driven by industry forecasts, growth rates, market share • Activity-based budgeting • Flex budgets • Priority-based budgeting

Exercise: Create a rolling forecast and a flex budget for comparison to the master budget Cash Budgeting • Budgeting cashflow • Cash management • Cash vs. accrual accounting in budgeting

Exercise: Creating a “corkscrew” cashflow forecast

Day Three Budgeting Financial Statements Budgeting For Capital Expenditure • Incorporating capital investment decisions into the budget and planning process • Capital investment evaluation techniques • Building the capital investment business case • Contingency planning • Hurdle rate – Weighted Average Cost of Capital (WACC) • Depreciation budgeting and its impact on the budget

Performance Management, Reporting And Control • The impact of budgets on organisational performance • Using reporting to promote accountability • Factors influencing performance management • Developing successful performance management systems • Frameworks for performance measurement and management • Integrating forecasting and budgeting as tools for measuring performance • Dysfunctional budgeting behaviour – games budget managers play

Exercise: Create an actual vs. budget report

Who Should Attend?

• Managing directors • Financial controllers • Business development managers • Business planning managers • Finance managers (in various functions)

Meet Your Expert Course Leader Paul Slack is a Chartered Accountant who owns Fasttrac Freelance Business Specialists, a Cape Town-based Financial Services Consultancy specialising in business rescue across all sectors of the economy. A major focus is higher education and rescuing universities in administrative distress. This extends especially to budgeting and

Exercise: Create a capital budget for a new project Consolidating The Detailed Budget Into Financial Statements • Creating a profit and loss statement and balance sheet budget • Measures such as NPAT, EBIT and EBITDA • Learn to calculate and analyse commonly used ratios to test your budget prior to approval • Profitability ratios, e.g. RONA, Net Profit Ratio (NPR)s • Liquidity ratios e.g. current ratio and acid test (quick) ratio • Efficiency ratios e.g. asset turnover, debtor, creditor and inventory days • Cash to cash cycle • Working capital management

Exercise: Calculate set of financial ratios in Excel from the previously prepared budget information

Day Four

• Business unit/operational managers • Management accountants • Business analysts • Financial analysts • Capital planning • Treasury

cost control.

He has been a consultant for six years having left formal employment as a Finance Director. He also consults to Pension Funds and small to medium enterprises on an on-going basis.

He has developed budgeting systems and processes for many organisations and universities and this combined with the implementation of strict financial controls, they have turned around some large entities. He completed articles with Ernst & Young and has since worked in manufacturing, heavy engineering, project management, fishing and higher education. He has over 150 clients across all sectors of the economy.

He has lectured internationally in Doha and Malawi and is a regular guest lecturer at the Graduate School of Business at the University of Cape Town.

Budget Management Reporting Budget Reporting Tools And Techniques • Financial accounting vs. management accounting • Performing variance analysis • Business analytics – providing decision-making information • Exploiting business intelligence for better performance • Transforming budgeting for better analysis and control • Business intelligence tools for better outcomes • Dashboard reporting in budgeting • Benchmarking as a tool to drive budgeting • Incorporating Balanced Scorecard into the budgeting process • Identifying cost centre, profit centres and investment centres

Exercise: Case study on analysis and explanation of variances in different departments

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His easy-going lecturing style and practical examples drawn from 30 years of experience result in consistently excellent reviews from delegates.

His presentations are practical, relevant and informative.

Would you like to run this course in-house?

The in-house training division of IIR Middle East Tel: +971 4 407 2624 • Email: CTS@iirme.com www.iirme.com/cts

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23 – 26 March 2014 Kempinski Hotel, Mall of the Emirates, Dubai, UAE 21 – 24 September 2014 Jumeirah Emirates Towers Hotel, Dubai, UAE

Advanced Budgeting FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 9428 Dubai, UAE

+971 4 335 2437 +971 4 335 2438 register@iirme.com

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DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – +971 4 335 2483 E-MAIL – a.watts@iirme.com Event

Course Fee Before 5 January 2014

Course Fee Before 26 January 2014

Final Fee

US$ 3,995

US$ 4,495

US$ 4,795

Advanced Budgeting 23 – 26 March 2014 (BC5337)* Event

WOULD YOU LIKE TO RUN THIS COURSE INͳHOUSE?

Course Fee Before 6 July 2014

Course Fee Before 27 July 2014

Final Fee

US$ 3,995

US$ 4,495

US$ 4,795

Advanced Budgeting 21 – 24 September 2014 (BC5338)

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions will receive a Certificate of Attendance. *Book and pay NOW and bring your colleague for FREE on this course. Only applicable for March 2014 course.

DELEGATE DETAILS

All registrations are subject to our terms and conditions which are available at www.iirme.com/terms. Please read them as they include important information. By submitting your registration you agree to be bound by the terms and conditions in full.

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A confirmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event. You can pay by company cheques or bankers draft in Dirhams or US$. Please note that all US$ cheques and drafts should be drawn on a New York bank and an extra amount of US$ 6 per payment should be added to cover bank clearing charges. In any event payment must be received not later than 48 hours before the Event. Entry to the Event may be refused if payment in full is not received.

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Cancellation If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge.

Registration fees for registrations cancelled 7 days or less before the Event must be paid in full. Substitutions are welcome at any time.

Avoid Visa Delays - Book Now Delegates requiring visas should contact the hotel they wish to stay at directly, as soon as possible.

Visas for non-GCC nationals may take several weeks to process.

All registrations are subject to acceptance by IIR which will be confirmed to you in writing.

Due to unforeseen circumstances, the programme may change and IIR reserves the right to alter the venue and/or speakers.

Event Venue: Kempinski Hotel, Mall of the Emirates, Dubai, UAE Tel: + 971 4 341 0000 Jumeirah Emirates Towers Hotel, Dubai, UAE Tel: + 971 4 330 0000 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971 4 407 2693 Fax: +971 4 407 2517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

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