Professional Documents
Culture Documents
2
PLANNING AND BUDGETING
1. Introduction & Definitions
2. Types of Budget
3. The Master Plan
4. The Revenue Budget
5. The Capital Expenditure Programme
6. The Human Resource Budget
7. The Non-project Capital Budget
8. The Expenditure Budget
9. Review and approval
10. Budgeting Timelines
11. Budgetary Controls
12.Feedback and Questions
3 3
Introduction
Planning: Looking into the future with a view to
Foresee in advance the possible external and internal
forces that will affect the strength and performance of the
company.
Allocate necessary physical and financial resources in
advance to re-track the company on the path as
envisioned in the company vision and mission statement
and as management desires.
Integrate the efforts of different functions for directing
their efforts towards the company’s common Goal.
Budgeting: An effective tool of planning and control
exercised in the Company to help management get the
desired goals of stakeholders’ value enhancement.
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Introduction
• Since last few years, Finance department is struggling to
improve the Budget system by involving the relevant
offices which practically execute the Budget.
• The ongoing ERP implementation will further help in the
systematic process of budgeting and its implementation
at all level of zones, regions, Profit and cost centres.
• The Chapter on Planning & Budgeting in Accounting and
Finance Manual is a systematic attempt to
• harmonize the thought of the players in the timely
preparation of budget and its execution,
• gauging performance,
• assisting in fixing accountability
• removing hurdles causing delay in the activities.
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DEFINITIONS
MASTER PLAN
6 6
DEFINITIONS
BUDGETARY CONTROL
7 7
Long Term Vs Short term Planning
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TYPES OF BUDGET
a) Master Plan
b) Revenue Budget
9 9
MASTER PLAN
Master Plan aims to bridge the gap between the long
term aspirations of the company and what the Business
zones expect to achieve within the context of a
potentially changing business environment.
It gives the management early sight of key issues which
may require goals to be adjusted.
It relies on strategic thinking, business awareness and a
commercial understanding.
It is prepared for the five years and shall be used to
allocate resources within the company based on broad
assumptions and goals set by the BoD and
management committee.
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MASTER PLAN
Audit Board Of
Approval Committee Directors
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REVENUE BUDGET
The Revenue Budget shall contain:
Stream wise Revenue of existing and
planned products.
Profit Centre-wise capacity and number of
existing and planned customers
Present and planned capacity
Assumptions and basis of the projected
forecast.
Month and Head wise break up of the
forecast.
Traffic analysis and trends.
Projected tariff structure.
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REVENUE BUDGET
Revenue Budget shall be sub-divided into:
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THE DOMESTIC REVENUE BUDGET
GM Finance
Analysis
At Zones
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THE INTL REVENUE BUDGET
SEVP Fin
Consolidation
into ACB
15 15
THE NON-CORE REVENUE BUDGET
Consolidation
into ACB
16 16
CONSOLIDATION OF REVENUE BUDGET
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CAPITAL EXPENDITURE PROGRAMME
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CAPITAL EXPENDITURE PROGRAMME
The start date of the projects / sub-projects in the budget shall take into account
the procurement lead time, wherever applicable.
19 19
HUMAN RESOURCE BUDGET
20 20
HUMAN RESOURCE BUDGET
Guidelines/ financial parameters Instructions for preparing & completion
The Basis From EVP FP & T of HR Budget from
(In-line with the Master Plan) EVP HR
Board HR Committee
21 21
NON-PROJECT CAPITAL BUDGET
Non-Project Capital Budget includes those assets that
are planned to be acquired within the coming fiscal year
may or may not be related to capital projects
are for administrative use rather than operational use
do not form part of the Capital Expenditure Program.
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NON-PROJECT CAPITAL BUDGET
The existing non-project capital assets at locations be assessed against new requirement
23 23
EXPENDITURE BUDGET
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EXPENDITURE BUDGET
Instructions for preparing & completion
of non-project capital budget
The Basis From EVP FP & T
GM (Budgetary Controls)
Review SEVP Finance
EVP Financial Planning & Treasury
The Expenditure Budget shall be in conformity with the overall expansion in networks
and growth targets as planned for in the Capital Expenditure Programme and Revenue/ HR
Budgets recommended for approval.
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REVIEW AND APPROVAL
Annual Corporate Budget is prepared by Finance
Department by consolidating all budgets.
Review/ recommendation by SEVP Finance in
conformity with Master Plan.
Review/ recommendation by Audit Committee
Reviewed/ recommended Master Plan & Annual
Corporate Budget presented to BoD for approval.
Any adjustments / amendments that are proposed and
agreed by any of the reviewers shall be made in each
budget location wise.
Approved Adjusted Corporate Budget shall be broken
location wise and forwarded to each location through its
respective Head of Department for control purposes
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BUDGET TIMELINES
DESCRIPTION START FINISH RESPONSIBILITY
Master Plan – Strategic Novemb Decemb Corporate Affairs
goals er er Department
Master Plan – Financial Decemb Respective
January
Impact er Departments
Commercial/
Decemb Februar
Revenue Budget Corporate Affairs/
er y
Finance Department
Capital Expenditure Decemb Februar
Technical Department
Program er y
Cost Centres/
Human Resource Decemb Februar
Budget er y HR & Admin
Department
Cost Centres/
Non-project Capital Decemb Februar
Budget er y HR & Admin
Department
Decemb Februar Cost Centres/
Expenditure Budget
er y Finance Department
Februar Finance
Corporate Budget March
y Department/Mgmt.
27 27
BUDGETARY CONTROLS
PERIODIC CONTROLS
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BUDGETARY CONTROLS
TRANSACTION LEVEL CONTROLS
29 29
Finan ce & Acc ou nt ing M anu al
Cash Management
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Cash Management
1. Introduction & Definitions
2. Petty Cash Management
3. Cash Management, Forecasting & Reporting
4. Funds Investment
5. Foreign Currency management
6. Reconciliation statement
7. Management reports
8.Feedback and Questions
31 31
Introduction
Cash is the very essence of any commercial business. The
business strength and weakness is gauged by the volume of
cash it own. The business efficiency is measured by the
stability, consistency and growth of the cash flow the
business generates.
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Introduction
The Chapter on Cash Management in Accounting and
Finance Manual is a systematic attempt to:
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Definition
Collection Account
Banks account used for collecting revenue from subscribers.
Collection account is not used for payment.
Drawing Account
Banks account used for disbursing payment to payees. These
account are usually limit accounts where physically cash is
not available. The payment through these accounts are
replenished on actual payment from main NBP account.
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Definition
Credit Ceiling
Investment
The short term investment by PTCL treasury to generate
extra mark up from surplus funds.
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Definition
Cash Imprest
36 36
Petty Cash Imprest
• Imprest will be allowed within limit (i.e Rs 50,000 Hqs &
Rs 25,000 Region) as approved by Headquarters.
• New or revision to imprest limit will be recommended by
SM Finance and regional GM for approval of EVP FPT.
• The system will prompt cashier when the petty cash limit
drop below replenishment level i.e Rs 10,000 & 5,000.
• Cashier will be responsible to maintain the balance of
physical cash available reconciled with the system balance.
• There will be surprise cash checking and counting by an
officer of DDO office to ensure accurate cash balance.
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Annual Ceiling management
• The ceiling limit will be within the provision of the annual
approved budget for operating and capital expenditure.
38 38
Ceiling management
• The System will prompt zonal SMF when the ceiling limit
touches replenishment level i.e 25%.
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Finan ce & Acc ou nt ing M anu al
Questions
40
Is Annual Corporate Budget a long term plan?
Yes
No
41 41
What are names of budgets that are annually
prepared to form Annual corporate Budget?
42 42
Can any item of Non Project Capital Budget
be purchased before projected quarter?
No: Any item due to be purchased in a specific quarter shall not
be purchased before that quarter.
43 43
Which Department (SEVP) at HQs will
consolidate the Annual Revenue Budget of
the Company?
SEVP Commercial.
44 44
Which Department (SEVP) at HQs will
consolidate the Annual HR Budget of the
Company?
SEVP HRA
45 45
Which Department (SEVP) at HQs will
consolidate the Annual Capex Budget of the
Company?
SEVP Technical
46 46
Can the collection account be used for payment?
47
No. Collection account is used for revenue collection and not for
payment.
48 48
What is the limit of petty cash
imprest?
49 49
What is the replenishment of cash
imprest?
When the balance reaches Rs. 5,000/- at region & Rs. 10,000/-
at HQs
50 50
When should region initiate demand
for ceiling?
51 51
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