Course Overview

What is meant by performance-based budgeting?

The citizens of the country fundamentally have a contract with the government. They pay money to the government in returning for providing good and services required.

Since the government is the custodian of public money, it must utilize the funds judiciously and be able to account for it.

The government must have the confidence of the people that they will get the necessary return for the money they have paid and there is no pilferage or waste. Only then the government will be able to mobilize the desired level of revenue.

A performance-based budget reflects both the funds received from taxpayers as input and the services provided by federal, state, or local governments as output for each unit of an organization.

How do you do performance-based budgeting?

A set of targets are fixed and a performance budget is developed accordingly to identify those targeted numbers and a method of evaluating performance. Performance budgets quantify factors that are otherwise qualitative so that they can be measured and accounted for.

This Performance-based Budgeting for State and Local Government Zoe training course will empower you to identify the ways in which funding levels of any program can be decided based on the expected returns from the entire project.

Course Objectives

The objectives of this Zoe course are to ensure that all the participants:

• Appreciate the importance of effective financial planning and public sector funds management
• Gain a fresh perspective of performance management and improving efficiency
• Learn the concept of performance-based budgets
• Comprehend principles of implementation of PBB
• Set targets and Key Performance Indicators
• Recognise various types of budgets
• Understand components of the budget
• Align the planning process with the overall strategic plan and fiscal policy
• Learn to analyse financial results

Training Methodology

Zoe’s collaborative “Performance-based Budgeting for State and Local Government Course”, will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

Like all our acclaimed courses, this program also follows the ‘Do-Review-Learn-Apply’ model, which is a unique way of training by Zoe Talent Solutions.

Organisational Benefits

Organisations nominating their employees to participate in this Course will benefit the organisation in the following ways:

• Gain a thorough understanding of budgeting process
• Conceive rationale goals and objectives that are realistic and measurable
• Allocate budget smartly based on each department/ division’s requirements.
• Plan development/ capital expenditure with sound assumptions and funding requirements
• Monitor actual results and compare with the budgeted numbers
• Perform proper investment appraisal to optimize return on investment.
• Evaluate financial statements and measure own performance against pre-defined goals
• Adopt best practices of PBB

Personal Benefits

• Contribute positively in budget preparation exercise
• Gain knowledge of International Accounting and reporting standards
• Analyse financial reports and link with quantitative data
• Upgrade current skill set and create opportunities for personal development

Who should attend?

• Members of Budget Committees
• City Council Members
• Financial Controllers
• Planning Managers
• Members of the Revenue Board
• Internal auditors
• Senior Executives of Finance Departments

Course Outline

Module 1: Introduction to Public Sector Finance 

• Principles of Public Sector Financial Management
• Budget Cycle
• Fiscal Policy
• Revenue Management

Module 2: Types of Budgets

• Line-Item Budget
• Programme Budget
• Performance-based Budget
• Zero based Budget

Module 3: Definitions of PBB Terms

• Input
• Output
• Effectiveness
• Efficiency
• Workload
• Advantages & Disadvantages of PBB

Module 4: Principles for Implementation of PBB

• Ensure Accountability
• Focus on City Priorities
• Increased Transparency
• Increased Community Involvement

Module 5: Setting Key Performance Indicators

• Setting Key Objectives
• Alignment with Current Budgeting Cycle
• Developing Guidelines for Agencies
• Budget Monitoring using a defined matrix

Module 6: Financial and Non-financial Reporting

• Public Sector Financial Accounts
• Components of Financial Statements
• IPSAS Reporting Requirements
• Reports on Key performance Indicators

Module 7: Development / Capital Expenditure Decisions

• Investment Appraisal Techniques
• Principles of Discounted Cash flow Analysis
• Outsourcing Services: Objectives and Decision Criteria
• Public- Private Partnership

Module 8: Best Practices of PBB – OECD

• Reflects Interests of Key Stakeholders
• Aligns Expenditure with the Strategic Goals
• Incorporates Flexibility
• Investment in Human Resources
• Facilitates Systematic Oversight
• Complements Spending Reviews
• Encourages Performance- oriented Behaviour

Module 9: Case Studies