Financial Management for Capital Projects

Description
Identifying a business need, problem, opportunity or motive, Generating alternative capital project proposals,Screening and Evaluation of alternative solutions and/or capital project proposals

SEYCHELLES MINISTRY OF FINANCE

JUNE 2011
? INTRODUCTION

? TRAINING PROGRAMME OUTLINE (DAY 1-4)

? SPECIFIC OUTCOMES

? GROUND RULES

? TRAINING METHODOLOGY AND APPROACH

? ASSESSMENT METHODOLOGY AND APPROACH
? Capital Projects

? Operating and Capital Expenditure Budgets

? Capital investment decisions

? Projects

? Types of projects

? Initiation

? Planning

? Execution and Control

? Closure

? Overview of the phase

? Activities and process

? Identifying a business need, problem, opportunity
or motive

? Generating alternative capital project proposals

? Screening and Evaluation of alternative solutions
and/or capital project proposals

? Determining the financial feasibility and viability

? Selection and approval of recommended capital
project proposal (initiation of capital project)

? Performing a risk assessment (of selected capital
project)

? Performing a Cost estimation

? Identifying potential sources of finance

? Determining the optimal Financing/capital
structure

? Drafting a Terms of Reference (Scope of Work)
document

? Cost-benefit analysis

? Evaluation criteria

? Non-financial criteria

? Accounting/average rate of return

? Payback period

? Net present value (NPV)

? Profitability index

? Internal rate of return

? Equivalent annuity method

? Composite risk index

? Probability x Severity

? Identifying priorities of risk impact analysis

? Risk mitigation strategies
? Objectives/deliverables

? Strategic alignment (with the organizational goals and objectives)

? Time-frames

? Cost estimates

? Quality issues

? Risk assessment

? Stakeholders

? Appointment of project manager; recruitment of project team and
establishment of a project office

? Capital project planning tasks and activities

? Resource plan

? Financial plan (budget)

? Quality plan

? Risk management plan

? Communications plan

? Procurement plan

? What (are the capital project objectives?)

? How (will these objectives be achieved i.e. the tasks/activities to
be performed)

? Who (defining responsibilities for each of these tasks/activities)

? When (defining time-frames and targets for each of these
tasks/activities)

? Where (defining location-specific aspects of the capital project)

? Weight (defining the key performance indicators)

? Refer to project plan template

? Direct costs

? Indirect costs

? Time related costs

? Labour and other staff costs

? Overtime costs

? Procurement costs

? Transport and other logistic costs

? Project Office costs

? Preliminary and General costs

? Capital project control function

? STEP 1: Monitoring and evaluating the capital
project

? STEP 2: Analyze capital project results

? STEP 3: Allow for action to be taken

? STEP 4: Identify discrepancies from capital project
plans and implement remedial actions

? Financial monitoring and reporting

? Cash flow management and Working capital
management

? Service level agreements and Efficiency of
Service Provision

? Cost Performance Reporting and Variance
Analyses Techniques

? Outsourcing

? SLA

? Key elements of SLA

? SLA process

? Evaluating selected service providers

? Selection criteria
? Earned value

? Definitions

? Earned value forecast

? Earned value variances

? Cost variance

? Schedule variance

? Project close-out

? Tasks and activities

? Project Audits

? Summary of key points

? Questions

? Summative Assessment

? Farewell

? Thank you

doc_353856848.ppt
 

Attachments

Back
Top