Local councils are at the forefront of delivering services for their residents. By taking a more commercial approach to finance; your local council can generate more revenue to fund and deliver better services.
By gaining a firmer understanding of costing and pricing, your organisation can monetise services, aligned with a strong public sector ethos.
Attend this course to gain a firmer understanding of local government finances; understand the difference between gross profit and operating profit margins; learn how to take into account full costing for pricing purposes; gain the tools for marginal costing for decision making; incorporating time into decision making, and build risk analysis into commercial decisions.
Leave the day with the tools and knowledge to improve your costing, pricing and commercial decision making.
|About the Chair: Ian Cornelius
|Ian Cornelius, the founder and director of Cashability, has over twenty years’ experience in business finance education and advisory work. Starting his career at Price Waterhouse, he quickly found his calling as a trainer, designing and delivering business training courses to PW’s clients and staff.
After a spell in industry as the Financial Controller of Halfords, Ian joined ATC as their head of operations in Birmingham. He initially focused on the key professional exam markets (ACA, ACCA, CIMA and AAT) where he specialised in teaching financial management and management accounting subjects.
Subsequently this led to 10+ years in professional bespoke business education. Ian has specialised in the delivery of practical finance training programmes for operational staff, developing their financial literacy and commercial astuteness.
He has also lectured on the MBA programmes at Aston and Warwick Business Schools, and written two books (published by FT Prentice Hall) on shareholder value and Value-Based Management (VBM). If you would like to read more about our trainer, please click on the link below: https://www.moderngov.com/contributors/ian-cornelius/
09:15 - 09:45
09:45 - 10:00
Trainer’s Introduction and Clarification of Learning Objectives
10:00 - 10:45
Understanding Local Government Financial Fundamentals
- Income and expenditure account formats
- The distinction between direct/variable costs and indirect/fixed costs
- Gross profit and operating profit margins
- Using commercial margins to inform mark-up percentages for pricing
11:00 - 12:00
12:00 - 13:00
Full Costing for Pricing Purposes
- The ‘3Cs’ of pricing; cost, competition, customer
- Commercial pricing mechanisms; cost plus versus target costing
- Establishing full cost; traditional absorption costing versus Activity Based Costing (ABC)
- Case study: Applying costing mechanisms to a Council’s commercial cleaning services
13:00 - 14:00
Marginal Costing for Decision-Making
- Comparing historic costing with relevant costing
- The rules of marginal costing; future, incremental cashflows are relevant
- When to use marginal costing as opposed to full costing
14:45 - 15:00
Incorporating Time into Decision-Making. Long-Term Project Appraisal
- Accounting for capital costs and depreciation
- Mapping long-term costs and benefits in ‘invest to save’ proposals
- Appropriate payback periods for capital projects
15:00 - 16:00
Building Risk Analysis into Commercial Decisions
- Introducing the standard risk management recipe; attitude, identify, analyse, mitigate
- Impact-likelihood matrices; a critique
- Thinking about risk sharing between parties
- Case study: Risk analysis of a major government capital project
- Learn how to mitigate risk
- Thinking beyond the risk register; unknown unknowns and Black Swans
16:00 - 16:15
Conclusion - Recap on key tools and techniques to inform commercial pricing and decisions
A: Company Name: Govnet Communications
Company Address: 3rd Floor ,St James Building, Oxford Road, Manchester M1 6PP
A: Yes. Simply email email@example.com after you have booked the course, with your Purchase Order Number. Please quote your order number and the course you are booked onto.