1. Design Workshop: Financial Overview 28th July 2016

2. What we would like to cover:
Partnership & Funds budget principles
Developing a budget
Managing the budget during implementation
Financial reporting
Common issues

3. Principles for a detailed design budget:
Reflects the approved Concept (both cost and scope)
Reflects the Activity Workplan: what, how, key assumptions, total cost and components
Provides quality information that is accurate, complete and timely
Enables tracking of progress delivery by expenditure
Enables analysis of key variances that may have a significant impact on timing & success
Provision of details for key Outputs

4. Budget structure: Direct Costs - Output Specific costs
- Output Support Costs
Indirect Costs
- In-country
- New Zealand
Costed Workplan

5. Developing a budget What we are looking for:
What you will be delivering? (i.e. outputs) and when
How you propose to deliver it? (i.e. the mix of staff, resources, goods, subcontractors etc.)
Key assumptions made to calculate each cost (e.g. Foreign Exchange “FX” rates and Inflation rates used)
How much are the overall costs? (to determine Value for Money for the outputs being delivered)
Contingencies – fair & reasonable?

6. Developing a budget - other
Sensitive Expenditure – have any discretionary or non essential costs been included? Examples include catering, entertainment, gifts/koha and hospitality.
Full disclosure of the reasons for this expenditure and whether any personal benefit is conferred is required to meet reporting and disclosure obligations.

7. Developing a budget - Assets
What assets are included (e.g. equipment, vehicles or infrastructure). What will happen to them at the end of the activity ? Purchase vs lease & new vs second hand ?
- Why it is needed and what it will be used for
Where it will be located
Who has responsibility for maintenance and insurance
What happens to the asset at the end of the project
Residual value and life
Purchase vs Lease vs Rental options considered
New vs second hand

8. Budget Management and Reporting during implementation

9. Managing the budget How to manage: Under or over expenditure
Moving budget within and across outputs or section
Changes in major assumptions e.g. FX, inflation, scope
Treatment of interest earned and other income
Changes in tranches due to variances (timing or permanent differences)

10. Some common issues: Budget: Incorrect Per Diems used
Omission of expenditure
Incorrect or obsolete exchange rates
Unstated contingencies, provisions and assumptions
Costed Workplan template:
Incorrect additions, formulas not working or deleted
Incorrect budget line inserted or deleted
Need a new approach – collaborative effort proposed

11. Questions, feedback, information to share?
Please check our website for additional
tools and guides that may assist you.