Management accounting and financial planning are the primary engines supporting strategic decision-making and ensuring the efficient management of financial resources in organizations across various sectors. This comprehensive course aims to build professional capabilities in modern financial planning, cost analysis, and budgeting. It also covers the practical application of International Public Sector Accounting Standards (IPSAS) and the mechanisms for transitioning to the accrual basis of accounting. Furthermore, the course prepares finance and accounting professionals to pass the Saudi Organization for Chartered and Professional Accountants (SOCPA) fellowship examination, while equipping them with financial control tools and government procurement management skills with competence and proficiency.
Course Objectives
- Analyze cost behavior and apply modern costing systems, such as Activity-Based Costing (ABC).
- Prepare estimated budgets, conduct financial planning, and perform variance and break-even analysis for investment decisions.
- Understand and apply International Public Sector Accounting Standards (IPSAS) and present financial statements efficiently.
- Execute accounting adjustment procedures and the mechanism for transitioning from cash-basis to accrual-basis accounting.
- Activate financial control tools, internal auditing, and government procurement management according to approved regulations.
- Elevate professional and knowledge readiness to pass the Saudi Organization for Chartered and Professional Accountants (SOCPA) fellowship exam.
Target Audience
- Accountants, finance professionals, and cost analysts in both the public and private sectors.
- Financial managers and heads of budgeting and financial planning departments.
- Applicants and candidates for the SOCPA fellowship certificate exam.
- Internal auditors and financial control specialists in government entities and corporations.
Course Outlines
The course topics are distributed over 8 days as follows:
Day 1: Cost Behavior and Advanced Costing Systems
- Classification of cost behavior (fixed, variable, and mixed) and separation methods.
- Job order costing system and its applications in allocating direct and indirect costs.
- Process costing system and determining the cost of equivalent units.
- Activity-Based Costing (ABC) and the accurate allocation of indirect costs.
Day 2: Budgeting and Financial Planning
- The concept of financial planning and the importance of operational and financial budgets in organizations.
- Steps to prepare sales, production, purchases, and administrative expenses budgets.
- Preparing the comprehensive cash budget and the estimated balance sheet.
- Financial variance analysis, identifying the causes of total and partial variances, and their treatment.
Day 3: Short-Term Decision Making and Break-Even Analysis
- Cost-Volume-Profit (CVP) analysis and calculating the break-even point.
- Calculating the margin of safety, operating leverage, and its impact on the organization’s profitability.
- Short-term administrative decisions (make or buy, accepting special orders).
- Keep or drop decisions, asset replacement decisions, and allocating constrained resources.
Day 4: Fundamentals of Government Accounting and Financial Instructions
- Basic principles of government accounting compared to commercial financial accounting.
- Financial instructions for the general accounting system and the government documentary cycle.
- Government accounts structure and control procedures for receipts and expenditures.
- Preparing the final account and financial reports in government units.
Day 5: IPSAS Standards and Financial Statement Presentation
- Introduction to International Public Sector Accounting Standards (IPSAS) and their importance in the government sector.
- IPSAS 1: Presentation of consolidated financial statements for government entities and sectors.
- Statement of cash flows and accounting policies according to IPSAS.
- Disclosure requirements and financial transparency in public sector financial statements.
Day 6: Transition to Accrual Basis and Accounting Adjustments
- National Transformation Program requirements for transitioning from the cash basis to the accrual basis.
- Measuring and evaluating government assets and liabilities according to IPSAS.
- Executing periodic accounting adjustments and adjusting open accounts.
- Preparing the adjusted trial balance and final financial statements post-transition.
Day 7: Preparation, Analysis, and Control of Public Budgets
- Types of public budgets (line-item budgeting, performance and program budgeting, and Zero-Based Budgeting – ZBB).
- Stages of state budget preparation, disbursement controls, and appropriations.
- Monitoring budget execution and linking financial performance to the field performance of sectors.
- Analyzing the efficiency of government spending and evaluating the financial effectiveness of programs and initiatives.
Day 8: Financial Control, Procurement, and SOCPA Simulation Applications
- Activating internal control tools and financial risk management in government entities.
- The government procurement and competition system and methods of documentary and financial auditing.
- Comprehensive review and solving practical applications simulating the SOCPA fellowship exam.
Course Outcomes and Impact
This course ensures participants are empowered to build professional estimated budgets and apply modern costing methods within their organizations. Additionally, they will acquire the practical skills necessary for the full application of International Public Sector Accounting Standards (IPSAS) and successfully manage the transition to the accrual basis. This greatly enhances their technical readiness to pass the SOCPA fellowship certificate exam.
This course is the optimal professional investment for financial and leadership cadres aspiring to excel in management accounting and the public sector, providing them with the ability to make sound financial decisions and effectively lead financial transformation.
