Financial Planning - POLICY Project财务规划政策项目.pptVIP

Financial Planning 1 Introduction and Budgeting Learning Objectives Understand the importance of linking planning and budgeting Understand key financial planning terms and concepts Apply tools and techniques for preparing a financial plan Definition Financial Planning It represents the planned activities of a system in terms of money Financial plans detail the system’s estimate of how much each activity will cost for a specified time period, usually 3-5 years Financial plans detail the expected income that will pay for the planned activities Financial Planning Helps a program take into account available and potential financial resources for initiatives Identifies resource allocation issues inherent to the strategic planning process Implementation and Financial Plan Planning Budgeting Planning and budgeting are linked activities: Plans include goals and objectives that are to be accomplished in a stated time period Plans describe activities to accomplish the goals Planning budgeting are parts of an iterative process Initial plans may have to be changed depending on whether funds are available to pay for the activities Financial Planning Involves… Financial Planning Budgeting Are Important Define in monetary terms the strategic plan Provide a basis for evaluating financial performance Provide a tool for controlling costs Force implementers to think through how much each activity will cost Give implementers information on projected expenses and the funds needed for planned activities Budgeting: Terms Definitions Expenses: All of the costs incurred in operating a program The Operating Budget is composed of Expense Budget – based on converting resource needs identified in the planning process into money estimates Revenue Budget – based on identifying sources of funding. Examples: service fees, grants, donor funding, government funds Budgeting: Terms Definitions Asset – anything that has value that helps an organization conduct business. Examples: cash, equ