1 / 12

Translating costing into expenditure frameworks

Translating costing into expenditure frameworks. Case Studies – Pacific-based David Hutton. Workshop on MDG-based planning, and integration into the national planning and budgeting framework Pohnpei, FSM 26-29 June 2007. Case Studies.

axel
Télécharger la présentation

Translating costing into expenditure frameworks

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Translating costing into expenditure frameworks Case Studies – Pacific-based David Hutton Workshop on MDG-based planning, and integration into the national planning and budgeting framework Pohnpei, FSM 26-29 June 2007

  2. Case Studies • Analysis of Financial Information - Facts from Figures: Primary Education Expenditure • Making forward projections of expenditure - Projecting Primary Education operating expenditure • Analysing for Budget Savings • Justification of a bid for a new project, program or activity

  3. Suggested solutions • There are definite solutions for analysis questions • But, a variety of views on how to use the data to make choices • So, the solutions may be only partial and there may be other view points • Written solutions include additional reference material or guidelines and are more extensive than would be expected

  4. 1. Analysis – Primary Education • Trend for Primary Education expenditure: Rapid growth 96-2001, doubled in 5 years, then flattened and declined. • Pupil/Teacher ratio: Reduced from 29 to 19 • Relationship to other data: Inverse relationship to teacher numbers

  5. 1. Analysis – Primary Education • Trend for School supplies and Books: Falling in dollar terms and real terms = families need to spend more • Real expenditure rising?: True, but mostly staff • Main cost driver?: Teaching staff = 92% This seems high = check benchmark data

  6. 2. Projecting Staff costs

  7. 3. Analysis for budget savings • Three largest expenditure items:Staff 79.5%Petrol & Oil 6.3%Boat Maintenance 4.9% • Three largest sub-programs:Policy formulation 22.4%Resource evaluation 19.7%Surveillance 18.5%

  8. 3. Analysis for budget savings • Where to start looking for savings? Need more data. See hints in solution. • Impact of cutting back on fuel and maintenance? Staff may not be able to work at all – false saving. So, be sensible. • How to reduce staff costs? Attrition combined with transfers and training. Redundancy = last resort.

  9. 4. Justification for a new project • Practical issues to consider Suitability, support, parts, maintenance, training, fuel, storage, ownership • Financing operational costs: Farmer co-ops need to charge for services • Measuring benefits: Private vs. Public • Identifying risks Weather, loss of work, machinery breaks, nobody pays

  10. Steps to consider a new project • Define the problem – issue, outcome, beneficiaries • Identify options – not a single solution • Seek expert advice – make sure it will work • Estimate costs - checklists • Estimate benefits – checklists, volumes/values • Compare benefits to cost ratio • Select best option – highest benefit/cost ratio or greatest benefit

  11. Project approach is very similar to a Performance-based Budget • The seven step process can be used for a: • Project • New activity • Performance-based budget • Don’t jump to the solution – We need to buy a new X • Consider options • Define benefits so can measure success = Performance-based measures

  12. Discussion

More Related