Performance Based Budgeting
Course Length: 3 Days
Organizations across the globe are under tremendous pressure today to manage their finances, rationalise programmes and streamline the budgeting process. With a growing need for real-time budget updates and an increasing understanding of exactly how goals are translated into outcomes, more and more private & public sector entities are choosing performance- or outcome-based budgeting to better aligns budget allocation with results.
This course teaches in-depth Principles & Application on Performance based budgeting.
There will be hand on exercises, questions and problem solving with answer provided after the sharing session.
Upon completion of this course, participants will be able to:
- Understand the process of Performance based budgeting (PBB).
- Develop and allocate budgets based on funding outcomes, increasing cost efficiencies and the effectiveness of Organizational expenditure.
- Presents an Organization/ a department’s budget in a way that recognize the entity strategic and priority objectives (whether outcomes or impacts).
- Prepare a budget and identifies outputs, activities and projects contributing to the organization achievement.
- Manage results by increasing focus on service delivery and strengthening KPI accountability.
- Articulate why budgets have been allocated and sets measurable objectives.
- Identifies programs towards similar outcomes and highlighting interlinkages.
- Appreciate the flexibility of PBB where it reallocate funds to successful programs or impose sanctions on poor performers.
Head of Departments, Supervisors leading a section within a department, Project Manager leading a team that comprise of cross department personnel, Operation Manager, General Manager, Financial Controller, CFO, Directors, CEO, COO and any members whom are directly involved in the strategic planning@ Performance Based Budgeting for the sustainable growth of the Organization.
- Budgeting and the Budget Process
- Overview of Performance Budgeting
- Expenditure Prioritization
- Models of Performance Budgeting
- Performance Information Fundamentals
- Performance Concepts: the Results Chain
- Outcomes vs. External Factors
- Outputs vs. Outcomes and Activities
- Performance Indicators
- Performance Measures and the Budget
- Ensuring that Indicators are Useful
- Linking Funding to Outcomes
- Linking Funding to Outputs
- Performance Measurement Systems
- Ensuring that Performance Information is Cost‐Effective
- Evaluation and Performance Budgeting
- Evaluating Program Effectiveness
- Efficiency Review
- Making Evaluation Relevant to the Budget
- Evaluation and the Budget
- Internal versus External Evaluations
- Performance Auditing
- Program Budgeting Fundamentals
- Defining Programs
- Performance Pressure and Program Budgeting
- Program Performance Information
- Program Titles and Objectives
- Program Statements
- Program Hierarchy
- Number and size of programs
- Developing Programs
- Integrating Strategic Plans with the Program Budget
- Program Appropriation and Expenditure Control
- Program Accounting and Costing
- Budget Classification and Chart of Accounts
- Financial Management Information Systems
- Program Cost Allocation
- Administration Programs
- Salary Costs and Programs
- Cost Allocation and the Program Hierarchy
- Program Cost Estimation in Budget Preparation
- Programs and Functions: a Case Study
- Targets and Performance Budgeting
- Expenditure Prioritization and Performance Budgeting
- Spending Review
- Expenditure Prioritization Processes
- Planning and Prioritization
- Accrual Accounting and Performance Budgeting
- Accrual Accounting and Accrual Budgeting
- Complexity of Accrual Accounting and Budgeting
- Accrual Accounting and Program Budgeting
- Accrual Accounting, Purchaser‐Provider and Formula Funding Systems
- Medium‐Term Budgeting and Performance Budgeting
- Nature and Benefits of Medium-Term Budgeting
- Forward Estimates
- Medium-Term Ceilings: Fixed vs. Indicative
- Medium-Term Expenditure Framework
- Implementing Government‐Wide Performance Budgeting
- Managing for Results Context