The document outlines a 5-step guide for developing an organizational budget: 1) Assemble a budget team, 2) Create a budget calendar, 3) Prepare for and conduct a budget kickoff meeting, 4) Draft the budget, and 5) Monitor the budget. It emphasizes a team decision-making approach and provides details for each step such as setting financial goals, building a budget template, forecasting expenses and revenues, monitoring variances, and creating mid-year revisions when needed. The overall process aims to support strategic planning, control spending, and ensure long-term financial sustainability.
presentation on INTERNATIONAL PUBLIC-SECTOR ACCOUNTING STANDARDS (IPSAS)MD. Mahmudul Hasan
In the current “global revolution in government accounting,” International Public-Sector Accounting Standards (IPSAS) are proposed for adoption by governments around the world. After describing the nature of IPSAS, the paper discusses conceptual issues concerning system capability and internal accountability, conceptual framework, emulation of business standards, accrual basis of accounting and consolidated financial statements. The institutional issues regarding the representation on the IPSAS board and the sole oversight by the International Federation of Accountants (IFAC) are also analyzes. Setting standards is a first step on the long road of fundamentally reforming government accounting practices around the world.
presentation on INTERNATIONAL PUBLIC-SECTOR ACCOUNTING STANDARDS (IPSAS)MD. Mahmudul Hasan
In the current “global revolution in government accounting,” International Public-Sector Accounting Standards (IPSAS) are proposed for adoption by governments around the world. After describing the nature of IPSAS, the paper discusses conceptual issues concerning system capability and internal accountability, conceptual framework, emulation of business standards, accrual basis of accounting and consolidated financial statements. The institutional issues regarding the representation on the IPSAS board and the sole oversight by the International Federation of Accountants (IFAC) are also analyzes. Setting standards is a first step on the long road of fundamentally reforming government accounting practices around the world.
The U.S. GAAP Financial Accounting Standards Board (FASB) Codification™ is fully effective for all entities. The Codification is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification has created an entirely new topically organized system for all accountants to learn.
Learn more about Codification at:
http://ugaap.com/blog/?p=234#comments
Forensic Accounting is also known by other names like Forensic Accountancy or Financial forensics. Forensic Accounting has been defined as “accounting analysis that can uncover possible fraud that is suitable for presentation in court”. Copy the link given below and paste it in new browser window to get more information on Forensic Accounting:- http://www.transtutors.com/homework-help/accounting/forensic-accounting.aspx
There are various types of Audit which are mentioned below: -
Based on Organizational Structure
Statutory Audit
Non-Statutory Audit
Based on Scope
Complete Audit
Partial Audit
Based On Time
Continuous Audit
Final Audit
Interim Audit
Based on Object
Special Audit
Cost Audit
Management Audit
Internal Audit
Social Audit
Tax Audit
Proprietory Audit
Statutory Audit is compulsory audit prescribed under statute i.e. law. Statutory audit is conducted after preparation of final accounts.
Non-Statutory Audit
Non-Statutory Audit is voluntary audit. They are not compulsory under any law.
Complete Audit
In this type of audit, the auditor is required to check each and every transaction recorded in the books of accounts.
Partial Audit
In Partial audit, the auditor is not required to examine all the books of accounts.
Continuous Audit
Continuous Audit means an audit at regular intervals throughout the accounting year.
Final Audit
Generally, it starts after the close of the financial period.
Interim Audit
Interim Audit is an audit conducted in between the annual audits
Special Audit
Central Government has power to order a special audit of the accounts of a company for a specific period.
Cost Audit
It is a type of audit which involves verification of cost records maintained by the organization
Management Audit
Management audit involves examines of the plans, policies, procedure, method and strategies and evaluates the performance of management with a view to improve organizational effectiveness. It does not look into the past, present but also in the future.
Internal Audit
Internal Auditing is a continuous, critical review of financial and other operating activities by a staff of auditors, functioning as full time salaried employees.
This presentation is an overview of SA 210 (R). Prepared with Prof. S. Sircar.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
We look forward to discussing your needs and interests in IPSAS in the coming months. You can contact me email Mark at m.neal67@ahoo.com Or +1 780-297-9569
Models of Corporate Governance
CORPORATE GOVERNANCE SYSTEMS
Efforts made for Effective Corporate Governance
Cadbury Committee
Sarbanes Oxley Act, 2002
Global Corporate Governance
External Auditor
Trends in Governance in Major MNC’s
India
China
Japan
Other European Model
THERE ARE SO MANY STANDARDS OF AUDITING, HERE IN THIS PDF, I HAVE EXPLAINED ANY 10 STANDARDS ON AUDITING WITH FLOWCHARTS, PICTURES FOR BETTER REFERENCE OF THE TOPIC
Internal auditing departments are led by a chief audit executive ("CAE") who generally reports to the audit committee of the board of directors, with administrative reporting to the chief executive officer (In the United States this reporting relationship is required by law for publicly traded companies).
International Federation of Accountants-IFACSultan Mahmood
IFAC
is the global organization
for the accountancy
profession dedicated to
serving the public interest
by strengthening the
profession and contributing to the development of strong
international economies.
IFAC
is comprised of over 175
members and associates in
more than 130 countries and
jurisdictions, representing almost
3 million accountants in public
practice, education,
government service, industry,
and commerce.
It explains the IASB’s Regulatory framework including the Companies act, Stock exchange listing rules and IFRS. It also explains the IASB relationship with other bodies and how they operate and how the IFRS are produced
The U.S. GAAP Financial Accounting Standards Board (FASB) Codification™ is fully effective for all entities. The Codification is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification has created an entirely new topically organized system for all accountants to learn.
Learn more about Codification at:
http://ugaap.com/blog/?p=234#comments
Forensic Accounting is also known by other names like Forensic Accountancy or Financial forensics. Forensic Accounting has been defined as “accounting analysis that can uncover possible fraud that is suitable for presentation in court”. Copy the link given below and paste it in new browser window to get more information on Forensic Accounting:- http://www.transtutors.com/homework-help/accounting/forensic-accounting.aspx
There are various types of Audit which are mentioned below: -
Based on Organizational Structure
Statutory Audit
Non-Statutory Audit
Based on Scope
Complete Audit
Partial Audit
Based On Time
Continuous Audit
Final Audit
Interim Audit
Based on Object
Special Audit
Cost Audit
Management Audit
Internal Audit
Social Audit
Tax Audit
Proprietory Audit
Statutory Audit is compulsory audit prescribed under statute i.e. law. Statutory audit is conducted after preparation of final accounts.
Non-Statutory Audit
Non-Statutory Audit is voluntary audit. They are not compulsory under any law.
Complete Audit
In this type of audit, the auditor is required to check each and every transaction recorded in the books of accounts.
Partial Audit
In Partial audit, the auditor is not required to examine all the books of accounts.
Continuous Audit
Continuous Audit means an audit at regular intervals throughout the accounting year.
Final Audit
Generally, it starts after the close of the financial period.
Interim Audit
Interim Audit is an audit conducted in between the annual audits
Special Audit
Central Government has power to order a special audit of the accounts of a company for a specific period.
Cost Audit
It is a type of audit which involves verification of cost records maintained by the organization
Management Audit
Management audit involves examines of the plans, policies, procedure, method and strategies and evaluates the performance of management with a view to improve organizational effectiveness. It does not look into the past, present but also in the future.
Internal Audit
Internal Auditing is a continuous, critical review of financial and other operating activities by a staff of auditors, functioning as full time salaried employees.
This presentation is an overview of SA 210 (R). Prepared with Prof. S. Sircar.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
We look forward to discussing your needs and interests in IPSAS in the coming months. You can contact me email Mark at m.neal67@ahoo.com Or +1 780-297-9569
Models of Corporate Governance
CORPORATE GOVERNANCE SYSTEMS
Efforts made for Effective Corporate Governance
Cadbury Committee
Sarbanes Oxley Act, 2002
Global Corporate Governance
External Auditor
Trends in Governance in Major MNC’s
India
China
Japan
Other European Model
THERE ARE SO MANY STANDARDS OF AUDITING, HERE IN THIS PDF, I HAVE EXPLAINED ANY 10 STANDARDS ON AUDITING WITH FLOWCHARTS, PICTURES FOR BETTER REFERENCE OF THE TOPIC
Internal auditing departments are led by a chief audit executive ("CAE") who generally reports to the audit committee of the board of directors, with administrative reporting to the chief executive officer (In the United States this reporting relationship is required by law for publicly traded companies).
International Federation of Accountants-IFACSultan Mahmood
IFAC
is the global organization
for the accountancy
profession dedicated to
serving the public interest
by strengthening the
profession and contributing to the development of strong
international economies.
IFAC
is comprised of over 175
members and associates in
more than 130 countries and
jurisdictions, representing almost
3 million accountants in public
practice, education,
government service, industry,
and commerce.
It explains the IASB’s Regulatory framework including the Companies act, Stock exchange listing rules and IFRS. It also explains the IASB relationship with other bodies and how they operate and how the IFRS are produced
This was a class assignment for Economics course handled by Prof. P.C.Thomas sir of T.K.M Institute of Management
"To err is human. Please forgive if i have made any mistakes."
Capital Budgeting is about how one should evaluate the financing options based on the superior financial performance through mathematical techniques. These techniques have been discussed in the presentation in detail.
This webinar will provide a basic introduction to budgeting in a nonprofit setting. Attendees will learn how to prepare and strategically use budgets for their organization.
2. • Supports organizational planning and decision making on how to allocate
resources
• Establishes a benchmark against which to monitor financial activity and
results
• Provides a tool to:
– Put strategy into operation
– Control spending
– Communicate plans and expectations
– Minimize the possibility of fraud
– Support long-term financial health and sustainability
2
3. 1. Assemble a Budget Team
2. Create a Budget Calendar
3. Prepare for and Conduct Budget Kickoff
a) Set financial goals
b) Gather data and build budget template
c) Conduct team kickoff meeting
4. Draft the Budget
a) Forecast current year results
b) Budget expenses and revenues
c) Assemble the organization-wide budget
d) Secure board approval
e) Forecast cash flow
5. Monitor the Budget
a) Create mid-year revision if necessary
3
4. 1. ASSEMBLE A BUDGET TEAM
The Budget Development Process
4
5. • Team Decision Making (TDM) fosters collaboration across the
organization, encouraging staff to work together to:
– Define goals
– Allocate resources
– Monitor progress
• TDM provides program and other non-finance staff with the skills and
tools to contribute to the budget development process and monitor the
budget for their area of responsibility.
5
6. Team composition and titles will vary based on organization size and structure, but this
is a typical configuration.
Chief
Executive
Officer (CEO)
Program and Human
Department
Managers Chief Resources
Director
Financial
Officer (CFO)
with Finance Staff
Board
Development Treasurer,
Director Finance
Committee
6
7. • The Chief Financial Officer leads the budget development process:
– Creates a budget calendar
– Designates a budget team (with CEO)
– Creates a budget template
– Assembles necessary materials (historical financials, etc…)
– Leads a budget kickoff meeting
– Presents the budget to the board’s finance committee (with CEO)
• Depending on organization size, the CEO or board treasurer may also
lead aspects of the budget development process
7
8. 2. CREATE A BUDGET CALENDAR
The Budget Development Process
8
9. • The CFO drafts the calendar which includes meeting dates and
deadlines.
• The calendar typically starts six months before the upcoming fiscal year.
• Separate calendars should be established for budget monitoring and
internal reporting and other aspects of fiscal management.
9
10. Budget Development Calendar
Fiscal Year End: June 30
January February March April May June
Prepare mid‐year budget revision for current fiscal year based on actual results
for Q1 and Q2
Obtain Finance/Audit committee approval of mid‐year budget revision for
current fiscal year
Begin next fiscal year budget process; identify Budget Director and Budget
Timetable; gather information necessary to develop expense and revenue
budget for the next fiscal year
Assemble draft budget for next fiscal year, incorporating fiscal and program
personnel
Circulate draft budget and budget narrative to Finance/Audit Committee;
incorporate comments and recommendation
Send budget package to Board of Directors; Board meets to approve budget for
next fiscal year
Incorporate next fiscal year's board‐approved budget into organization's
accounting system
Update cash flow templates for coming 12‐month period
10
11. 3. PREPARE FOR AND CONDUCT
BUDGET KICKOFF
The Budget Development Process
11
12. • In conjunction with the board of directors, the CEO and CFO set overall
financial goals, considering:
– Anticipated increases or decreases in program activities
– Operating results strategy
• Break-even?
• Surplus?
• Planned deficit?
– Strategic plan and long-term goals
12
13. Gather Data Build a Budget Template
• CFO and finance staff assemble • CFO and finance staff build a
historical results by program and blank template for each program
department: and department:
– Current fiscal year budget – Contains all line items under the
– Remaining budget for the relevant manager’s control
current fiscal year (“controllable costs”)
– Current year-to-date actuals – Includes columns for the
– Prior year budget and actuals remaining months of the current
fiscal year and 12 months of
upcoming fiscal year
13
14. • The CFO rolls out the budget development process in a kickoff meeting.
• All staff involved in the budget development process attend.
• Introduction to the budget
• Communication of financial goals
The • Distribution of blank budget
template, historical data, and
Agenda general ledger account definitions
• Instructions on next steps
• Staff questions
14
15. 4. DRAFT THE BUDGET
The Budget Development Process
15
16. • Managers of programs/departments use the budget template to forecast
remaining expenses by month for the current fiscal year.
– Helps the finance staff update the organization-wide forecast
• Where will the organization be at the end of the current year? (i.e., break-even,
surplus, or deficit)
• How does this relate to and impact financial goals for the upcoming year?
– Indicates how reflective of reality the current year’s budget was
– Prepares staff to project expenses and activities for the upcoming fiscal year
16
17. • Initial expense budgets should reflect best estimates of what it truly costs
to run programs/operations .
– Adjustments will be made later in the process if the level of budgeted
expenses cannot be supported.
• Managers of programs/departments use the budget template to project
personnel and direct other-than-personnel (OTPS) expenses.
– Indirect expenses such as occupancy will be allocated across programs and
functions by the finance staff later in the process.
17
18. • The development director projects revenue anticipated from individual
donors, foundations, corporations, special events, and other non-
government sources.
• Finance staff, with support from other staff as needed, project revenues
from government entities based on existing and anticipated contracts.
• Program staff, with support from finance staff as needed, project fee-for-
service revenue streams based on past performance and future plans.
18
19. • If there is high uncertainty around revenue projections, draft a scenario
budget reflecting the likelihood of receiving each source.
• Next, draft expense scenarios ranking potential reductions.
• Board approved benchmarks to trigger action can be implemented.
– Example: If $A funding from B funder doesn’t come through by C date, $X of
specified expense reductions will be made.
19
20. • Finance staff pulls together the organization-wide budget based on the
completed budget expense templates and revenue projections
– Indirect costs are allocated to programs using a consistent methodology,
such as one of the following:
• Headcount (FTEs)
• Percent of salary dollars
• Square footage or other facilities utilization measures
– Revenues are matched to expenses by program.
• The CFO presents the draft budget to senior management.
– If adjustments are needed to align budget with financial goals, templates
are redistributed to program/department managers with instructions on
level of necessary adjustments.
20
21. CFO submits draft budget to the finance committee six to
eight weeks before the new fiscal year
Senior management and finance staff make revisions
Once approved by Finance Committee, submit to full board
Full board approves before the new fiscal year begins
Once the budget is approved, the CFO conducts an information session to orient
managers to the overall organizational picture and to their budget for the year.
21
22. • Once the budget is approved and finalized, the CFO and finance staff
should develop a cash flow forecast showing the expected timing of cash
receipts and disbursements over the course of the fiscal year.
• This forecast should be updated and monitored over the course of the
year to identify in advance any potential cash shortfalls that may need to
be addressed.
22
24. Reporting Monitoring
• Finance staff enters the approved • The CFO and senior management
budget into the accounting software. analyze variances between budgeted
• Managers begin to approve and actual revenues and expenses.
expenditures against budgets for their – Discuss root causes with
area of responsibility. appropriate manager
• Finance staff produces monthly – Create action plan to address
reports for: significant variances
– Program, development and
department managers
– Senior management
– Board
24
25. • Internal reporting should provide timely, reliable and relevant information.
– Supports program-level decision making
– Facilitates senior management in making strategic financial decisions to
support long-term sustainability
• The following reports are recommended on at least a quarterly basis:
– Program, department and development directors
• Budget-to-actuals for area of responsibility, including variances
– Senior management
• Budget-to-actuals by program, including variances
• Reports distributed to the Board
– Board of directors
• Management budget narrative highlighting significant activity
• Consolidated budget-to-actuals, including variances
25
26. • In many cases, it is advisable to develop a formal budget revision around
the mid-point of the year. You should consider a budget revision if:
– Actual revenues or expenses exceed pre-established thresholds for budget
revision
– Unanticipated events occur which alter financial expectations in a significant
way
– Programmatic or financial goals change in ways that affect financial plans
• Note that the revised budget becomes the new standard by which the
organization sets its revenue and spending plans. As with original
budgets, budget revisions should be formally approved by the board.
26
27. The following resources available on The Wallace Foundation’s Resources
for Financial Management website can assist you with particular
elements of the budget process described in this presentation:
• Fiscal Management Activities Calendar
– Click here
• Program-Based Budgeting Template
– Click here
• Revenue Analysis Worksheet
– Click here
• Cash Projection Template
– Click here
27
28. FMA is a management consulting firm established in 1999 to serve not-for-profit
organizations around the country.
– We provide customized financial management, accounting, software, organizational
development, human resources, and other consulting services.
– We work directly with organizations or through funder-supported management and
technical assistance programs.
FMA works to build a nonprofit sector where every organization practices
the sound and effective management necessary to carry out its mission.
For additional information please contact:
Hilda Polanco, CPA John Summers
Managing Director Manager
hpolanco@fmaonline.net jsummers@fmaonline.net
212-931-9240 212-931-9133
440 Park Ave South, 3rd Floor 440 Park Ave South, 3rd Floor
New York, NY 10016 New York, NY 10016
www.fmaonline.net
28