Level 1 Budget Control


By the end of the program, participants will be able to: 

• Demonstrate how the budget relates to the key financial statements: balance sheet, income statement and cash flows.
• Prepare a budget consistent with the organization’s strategic plan.
• Use appropriate estimation techniques in the development of revenue and expense budgets. • Identify all the appropriate costs to be included in a capital expenditure proposal.
• Apply cost control tools, analyze management variance reports and take proper corrective

Course Contents

Financial Forecasting and planning

• Forecasting sales
• Flexible and Inflexible expenses
• Zero based budgets
• Behavioral Aspects of budgeting

Types of Revenue streams

• Net Interest Income
• Non-interest Income
• Asset Liability Types
• Loan credit cards
Budgeting for banking products
• Asset liability types
• Credit cards
• Time deposits
• Budgeting Software

Principles of Budgeting and Cost Control

• The Critical Functions of Management
• Control: The Missing Link
• Targets and strategic plans
• Benchmarking

Linking the Tactical Budget to Strategic Objectives

• The Strategic Planning Process
• Budget as a Planning Tool
• Aligning the Budget with the Organization’s Strategy


Analysing Past Budgets

• Controllable v Uncontrollable costs
• Variance analysis
• New initiatives
• Direct and indirect costs

Budget History

• Costing of requirements
• Estimating head count requirements
• Preparing draft budgets
• Budget approval and monitoring

Types of Budgets

• The Master Budget
• Operating and Capital Budgets
• The Budgeted Financial Statements

Approaches to Budgeting

• Incremental Budgeting
• Zero-Based Budgeting
• Fixed Budgeting and Flexible Budgeting
• Kaizen Budgeting and Continuous Improvement
• Activity-Based Budgeting
Budgeting and Costing Techniques
• Break-Even Analysis • Use of Standards in Budgeting • Different Forecasting Methods • Trend Analysis and Cost Estimation • Characteristics of an Effective Budget

Project Budgeting

• Planning for Projects
• Direct and Indirect Project Costs

Capital Expenditure Budgeting and Analysis

• Time Value of Money
• Simple versus Compound Interest
• Identifying and Analyzing Cash Flows
• Using Cost of Capital or Required/Desired Rate of Return
• Net Present Value (NPV) • Internal Rate of Return (IRR)
• Profitability Index (PI)
• Pay-Back Period (PBP)
• Accounting Rate of Return (ARR)
• Approval for Expenditure (AFE)
• Sensitivity and Risk Analysis

Cost Control and Management Budget Reports

• Budget as a Control Tool
• Approaches to Cost Control
• Characteristics of an Effective Control System
• Understanding the Need for Timeliness and Precision
• Variance Analysis: Identifying the Components of Variance
• Variance Analysis: Taking the Corrective Action
• Problems in Budgeting