SEYCHELLES MINISTRY OF FINANCE
JUNE 2011
 INTRODUCTION
 TRAINING PROGRAMME OUTLINE (DAY 1-4)
 SPECIFIC OUTCOMES
 GROUND RULES
 TRAINING METHODOLOGY AND APPROA...
 Capital Projects
 Operating and Capital Expenditure Budgets
 Capital investment decisions
 Projects
 Types of projec...
 Initiation
 Planning
 Execution and Control
 Closure
 Overview of the phase
 Activities and process
 Identifying a business need, problem, opportunity
or motive
 Generating alternative capital project proposals
 Screeni...
 Performing a risk assessment (of selected capital
project)
 Performing a Cost estimation
 
 Identifying potential sour...
 Cost-benefit analysis
 Evaluation criteria
 Non-financial criteria
 Accounting/average rate of return
 Payback period
 Net present value (NPV)
 Profitability index
 Internal rate of re...
 Composite risk index
 Probability x Severity
 Identifying priorities of risk impact analysis
 Risk mitigation strateg...
 Objectives/deliverables
 Strategic alignment (with the organizational goals and objectives)
 Time-frames
 Cost estima...
 Capital project planning tasks and activities
 Resource plan
 Financial plan (budget)
 Quality plan
 Risk management...
 What (are the capital project objectives?)
 How (will these objectives be achieved i.e. the tasks/activities to
be perf...
 Direct costs
 Indirect costs
 Time related costs
 Labour and other staff costs
 Overtime costs
 Procurement costs
...
 Capital project control function
 STEP 1: Monitoring and evaluating the capital
project
 STEP 2: Analyze capital proje...
 Financial monitoring and reporting
 Cash flow management and Working capital
management
 Service level agreements and ...
 Outsourcing
 SLA
 Key elements of SLA
 SLA process
 Evaluating selected service providers
 Selection criteria
 Earned value
 Definitions
 Earned value forecast
 Earned value variances
 Cost variance
 Schedule variance
 Project close-out
 Tasks and activities
 Project Audits
 Summary of key points
 Questions
 Summative Assessment
 Farewell
 Thank you
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Financial Management for Capital Projects

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Financial management tools and techniques for Capital Projects

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Financial Management for Capital Projects

  1. 1. SEYCHELLES MINISTRY OF FINANCE JUNE 2011
  2. 2.  INTRODUCTION  TRAINING PROGRAMME OUTLINE (DAY 1-4)  SPECIFIC OUTCOMES  GROUND RULES  TRAINING METHODOLOGY AND APPROACH  ASSESSMENT METHODOLOGY AND APPROACH
  3. 3.  Capital Projects  Operating and Capital Expenditure Budgets  Capital investment decisions  Projects  Types of projects
  4. 4.  Initiation  Planning  Execution and Control  Closure
  5. 5.  Overview of the phase  Activities and process
  6. 6.  Identifying a business need, problem, opportunity or motive  Generating alternative capital project proposals  Screening and Evaluation of alternative solutions and/or capital project proposals  Determining the financial feasibility and viability  Selection and approval of recommended capital project proposal (initiation of capital project)
  7. 7.  Performing a risk assessment (of selected capital project)  Performing a Cost estimation    Identifying potential sources of finance    Determining the optimal Financing/capital structure    Drafting a Terms of Reference (Scope of Work) document
  8. 8.  Cost-benefit analysis  Evaluation criteria  Non-financial criteria
  9. 9.  Accounting/average rate of return  Payback period  Net present value (NPV)  Profitability index  Internal rate of return  Equivalent annuity method
  10. 10.  Composite risk index  Probability x Severity  Identifying priorities of risk impact analysis  Risk mitigation strategies
  11. 11.  Objectives/deliverables  Strategic alignment (with the organizational goals and objectives)  Time-frames  Cost estimates  Quality issues  Risk assessment  Stakeholders  Appointment of project manager; recruitment of project team and establishment of a project office
  12. 12.  Capital project planning tasks and activities  Resource plan  Financial plan (budget)  Quality plan  Risk management plan  Communications plan  Procurement plan
  13. 13.  What (are the capital project objectives?)  How (will these objectives be achieved i.e. the tasks/activities to be performed)  Who (defining responsibilities for each of these tasks/activities)  When (defining time-frames and targets for each of these tasks/activities)  Where (defining location-specific aspects of the capital project)  Weight (defining the key performance indicators)  Refer to project plan template
  14. 14.  Direct costs  Indirect costs  Time related costs  Labour and other staff costs  Overtime costs  Procurement costs  Transport and other logistic costs  Project Office costs  Preliminary and General costs
  15. 15.  Capital project control function  STEP 1: Monitoring and evaluating the capital project  STEP 2: Analyze capital project results  STEP 3: Allow for action to be taken  STEP 4: Identify discrepancies from capital project plans and implement remedial actions
  16. 16.  Financial monitoring and reporting  Cash flow management and Working capital management  Service level agreements and Efficiency of Service Provision  Cost Performance Reporting and Variance Analyses Techniques
  17. 17.  Outsourcing  SLA  Key elements of SLA  SLA process  Evaluating selected service providers  Selection criteria
  18. 18.  Earned value  Definitions  Earned value forecast  Earned value variances  Cost variance  Schedule variance
  19. 19.  Project close-out  Tasks and activities  Project Audits
  20. 20.  Summary of key points  Questions  Summative Assessment  Farewell  Thank you

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