Possible as accounting bodies and financiers. Figure 4

Possible answer:

 

It
is the endeavour of the efficient use of important enterprise resources
required for running business. It entails planning for, acquiring, and deciding
how to utilize funds in ways that maximize the efficiency of the organization’s
operations.

 

Financial management consists of creating a systematic method
for the collection of financial data that is useful for making
decisions about the operations of the organization of an entity as well as
meeting reporting requirements of legitimate authority such as accounting
bodies and financiers.

 

Figure 4 Financial management Process

 

1.     Why is
knowledge of financial management important for a manager in Oxfam?

 

Possible Answers

·        
Every activity in an organisation revolves
around money. Every decision you make will either bring in or take out money,
save or lead to loss of money organisational money.

 

Discuss some examples of each.

 

 

 

·        
Finance
is the business language. This is the language spoken in business arena in
board rooms, fund raising meetings, procurement etc.

 

·        
Finance
is a key driver of organisational success.

 

 

·        
Organisational and project performance is
expressed in monetary terms.

·        
Oxfam competes for scarce resources and
therefore it is important to utilize funds efficiently.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Session 2

1.   
Good Practice Systems: The
Building Blocks of Financial Management

 

 What do you expect from this session?

 

 

Figure 5 Building Blocks for Financial
management

 

     
i.       
Accounting Records

This systematic and accurate keeping records
of organisation’s transactions. It is the responsibility of everyone to keep
records within their area of operations. Accurate records will tell the story
of how money was spent and where we are.

 

Identify some of the accounting records
that your function is likely to need

 

 

   
ii.       
Financial Planning

Financial planning complements strategic
planning. Budgeting a key tool in financial Management. It is telling our money
where it should go.

 

  
iii.       
Financial monitoring

It is imperative to monitor finances. This
is possible when we know where we wanted our money to (Budget) and the reading
the story (Accounting Records). We can keep track.

 

 What some of the reports do you often receive
or prepare? Discuss (5 Mins)

 

  
iv.       
Internal Controls

These are checks and balances put in place
in order to safe guard the organisations assets, staff and generally instil
order within the organisation, such us who authorizes what?

 

   
v.       
Financial Control- Making Sound Decisions

The outcome of sound financial management
systems is bases for sound decision making. Ultimately, this is the goal of
every manager.

 

Components of financial Management

For
the financial management process to take place effectively, financial

systems
and procedures need to cover three aspects of accounting. Financial Accounting,
Management Accounting Financial Management.  

 

These
can be as shown below:

Figure 6 Components of Financial
Management

 

 

All the three process can be performed in a single
department but in larger complex enterprises they are performed by different
teams.

 

Difference between Financial Accounting, Management
Accounting Financial Management.

Although the three functions have a lot in common, there
are some significant differences. Please see the table below.  

Table 1 Comparison of Components of
Financial management

 

Financial
Accounting

Management
Accounting

Cost
Accounting
 

Audience

Wide,
management, creditors, Government, investors etc.

Internal
Management

management

Format

Pre-set
and highly regulated

Formatted
internally

formatted
internal

Report
Contents

Aggregated
as per chart of accounts

Divertive
based on Accounting reports details

May
contain both accounting and narrative operative information

Tasks
and Process

  i.Records transactions
 ii.Classifies
transactions
iii.Reconciles records
iv.Summarises transactions
v.Presents financial data

  i.    Compares results
against goals
 ii.  
Determines reasons for variations
iii.   
Helps identify corrective action
iv.   
Provides forecasts
 v.   
Analyses information

  
i.   Analyses cost of raw
materials
 ii.  
Determines variation of costs of raw materials
iii.  
Helps identify corrective action
iv.  
Provides costs of production
 v.   
Determines pricing 

Aim

Keeping
complete record of the financial transactions.

Tools
for management decisions, such as Setting strategy

Reducing
and controlling costs and determining pricing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Session 3

 

Interpreting
Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Session 3

 

How Financially
Healthy is your country programme

System-design techniques