AFE BUDGET PREPARATION SKILLS OF OIL & GAS PROJECTS

Training Syllabus:
AFE BUDGET PREPARATION SKILLS OF OIL & GAS PROJECTS

INTRODUCTION
The Cource focuses on the internal view of an organization: planning, cost, and control systems, risk management in project appraisal, and integrated planning and control systems. Successful firms plan their future. This course will facilitate your understanding of the planning process with budgeting woven in followed by those very important control mechanisms to enhance performance

OBJECTIVES:
1. Determine full costs of outputs for the goods and services provided
2. Conduct a Cost Volume Analysis (CVA), applying it to multiple cost drivers to make recommendations for program management
3. Apply Variance Analysis as a management tool to analyze performance-based budgets and determine where you stand in achieving your performance goals
4. The purpose of budgets
5. Types of budget
6. Stages of preparation
7. Cash budgets — cash flow forecasts
8. Master budgets and Balance Sheet
9. Initial steps in constructing a spreadsheet model
10. Relevant costs
11. Overheads
12. Allocation
13. Appointment
14. Basic contribution analysis
15. Break even analysis
16. Marginal revenue and Marginal Cost

COURCE BENEFIT
Company / Organisational Impact
1. The organization will be in a better position to develop useable budgets
2. Those attending will be in a position to lead others in budget preparation
3. Learning will be enhanced
4. Wasted time will be reduced
5. Strategy & budgeting will be integrated
Personal Impact
1. Delegates will feel more comfortable with terminology
2. They will understand the budgeting methods most useful to them
3. They will understand how to construct a relevant and efficient budget from raw data
4. The delegates will learn to evaluate the usefulness of costing techniques in accurately calculating and ensuring profitability
5. They will appreciate the factors which affect the reliability of accounting information

WHO SHOULD ATTEND?
• Project Manager
• Project Engineering
• Project Planning & Cost Engineer
• Cost Engineer & Estimator
• Disciplines Engineering Leader
• Finance Project Executive
• Cost Accounting
• The staff person who will be responsible for entering data into the budget system or training others how to enter information
• Al executives involved in technical projects Budeting & Cost Control

RECOMMENDATION:
Please bring Laptop & Calculator to Class to follow practical case studies ……!!!

TRAINING MATERIAL OUTLINE:
A. BUDGETING & MANAGEMENT PROCESS
1. What is a budget
2. Why create budgets
3. Strategy – direction and vision
4. Implementing strategy – the operational planning process
5. Budgets – the financial expression of the operating plan
6. The purpose of budgets – control
7. The human side of budgeting
8. Case study, part 1- roles and responsibilities of the team
B. THE FRAMEWORK FOR BUDGETING
1. Elements of the budget framework
2. The financial statements
3. Advantages and limitations of budgets
4. Reporting – The key control
5. Developing the Revenue Budget
 Operating versus non-Operating revenue
 Revenue recognition versus sales
 Sales forecasting
 Profitable growth and the cost of capital
 Pricing consideration
Case study, part 2- the sales forecast & preparation of financial statement
C. BUDGETING COSTS AND EXPENSES
1. Cost, profit, volume relationships
2. Cost of service provided
3. Operating expenses – selling, G/A, R/D
4. Directly variable expenses
5. Fixed expenses
6. The allocation problem
7. Assignable and non-assignable expenses
8. EBIT, EBITDA
Case study, part 3- budgeting operating profit
D. ACCOUNTABILITY FOR RESULTS
1. The business unit statement
2. Variance analysis
3. Priorities
4. Long term versus short-term results
5. Contingency plans
6. How not to cut a budget
Case study, part 4- the profit center statement
E. BUILDING THE BALANCE SHEET
1. Key financial ratios
2. The capital budget
3. NPV
4. IRR
5. PI
6. The cost of capital and hurdle rate
7. CASH FLOW
 Budgeting cash requirements
 Developing a cash flow forecast
 The three sources of cash
 Free cash flow
 The completed budget
Case study, part 5- investment decision – lease or buy, make or buy

VENUE : Jakarta (Maxone Hotel Menteng, Balairung Hotel Matraman, Sentral Hotel, Haris Tebet, Gd Muamalat Institute, Ibis Manggadua, Little Amaroossa Residence, Cosmo Amaroossa, Zodiak MT. Haryono, Grand Tjokro)

DURATION : 4 days

TRAINING TIME :

INVESTMENT/PERSON :
1. Rp. 8.750.000/person (full fare) or
2. Rp. 8.500.000/person (early bird, payment 1 week before training) or
3. Rp. 8.250.000/person (if there are 3 persons or more from the same company)

FACILITIES FOR PARTICIPANTS :
1. Training Module
2. Flash Disk contains training material
3. Certificate
4. Stationeries: NoteBook and Ballpoint
5. T-Shirt
6. Backpack
7. Training Photo
8. Training room with full AC facilities and multimedia
9. Lunch and twice coffeebreak everyday of training
10. Qualified instructor