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Facilitated by:
Financial Management
Pobal Training Initiative
Using the “Financial Management Guidance” Toolkit
Understanding Financial Management
Planning and Budgeting
Financial Bookkeeping and Controls
Financial Reporting
Understanding Staff Costs
How the tendering Process Works
Online Resources
Agenda
Reference Guide Covers:
-Planning and Budgeting-Financial Bookkeeping-Financial Controls-Financial Reporting-Understanding Staff Costs-Tendering & Public Procurement Procedures-Links to Further Information
Using the Financial
Management Guidance
Toolkit
What is Financial Management?
Reference pages 1 -3 of Toolkit
What does good financial
management mean to different groups of
stakeholders?
- board members- employees
- funders- donors
-beneficiaries
The process of making the best use of an organisation’s resources
Requires:- Use of financial information
- Adequate policies and procedures (preparation, recording and presentation)
Good Financial Management
Planning Jargon Buster (explanation of key terms)
Developing a Strategic Plan
Developing an Annual Business Plan
Developing a Budget
Working out Cashflow Requirements
Managing Risk
Developing a Reserves Policy
Elements of Effective Financial
Management – Planning and
Budgeting(section 1 Toolkit)
When times are very uncertain:
Scenario Planning may prove helpful
Tool … that organisations can use to help them imagine and manage the future more effectively.
Process … highlights the principal drivers of change and associated uncertainties facing an organisation at present and explores how they might play out in the future.
Result: Scenarios … a set of stories that offer alternative views of what the future might look like.
Strong Labour Market
Depressed Labour Market
People feeldisenfranchised
People feelempowered
Business Remains the Same
Society Meltdown
Anything Possible
Social networking dominant
Example of 2 x 2 Schematic for Society
Identifying and Managing Risk
(Reference section 1.8 of Toolkit)
Governance RisksConflict of
Interest
Poor Trustee Skills
Poor Organisational Structure
Operational Risks
Service Quality and Development
Employment Issues
Health and Safety Issues
Fraud
Contracts
Financial RisksCash Flow
Diversity of Income Sources
Accuracy of Financial Information
External RisksPublic Perception and Adverse Publicity
Government Policy
Compliance with Law and
Regulation
Employment Law
Fundraising
Breaches of Company Law
Breaches of Other Legislation
Case Study: Risk Management in
the Social Economy
Group Work:John Robinson and his community group have identified a niche market collecting and safely disposing of agricultural plastics waste from farms around North Munster and South-East Leinster. In groups, identify the risks that you believe John and his community enterprise will have to manage if they are to successfully establish and grow the business.
Report back your findings!
Financial bookkeeping and financial controls jargon buster
Bookkeeping good practice – section 2.1
Apportioning costs
Putting adequate financial controls in place (Annual Review of Internal Controls hand out)
Preventing fraud
Elements of Effective Financial
Management – Financial
Bookkeeping and Controls
(Reference sections 2&3 of Toolkit)
In groups, discuss how you and your board would manage the following scenario.
In preparing your end of year accounts and financial statements, your accountant has drawn your attention to a discrepancy of €10,500. This money appears to have been taken by a senior manager to cover their un-vouched travel expenses during the first quarter of 2011.
What should you do?
Practical Scenario:
Un-vouched Expenses
Annual Financial Statements:
- Provide information about the organisation
- Assist decision-making in relation to the organisation
- Assess risk
- Assess solvency
- Review performance
Elements of Effective Financial
Management – Financial Reporting
(Reference section 4 of Toolkit)
External Auditors: review financial statements in an unbiased way
Internal Auditors: monitor risk management, reporting and control practices
External grant auditors: review activities, performance and that grants are being spent as per funding rules and within budget
Audit of Annual Financial Statements – section 4.8
Types of Auditors
Key Issues to Consider:
Salaries
Travel and Subsistence
Staff Records
Employment status
Statutory redundancy
Understanding Staff Costs
(Reference section 5 of Toolkit)
Competitive Tendering – section 6.1
www.etenders.gov.ie
Procurement Workflow – section 6.6
How the Tendering Process
Works(Reference section 6 of the
Toolkit)
www.pobal.ie www.wheel.ie www.carmichaelcentre.ie www.cro.ie www.erb.ie www.procurement.ie www.ictprocurement.gov.ie www.citizensinformation.ie www.revenue.ie www.ictu.ie
Online Resources