Excel for Project Appraisal and Business Planning

Design: The content will cover a conceptual framework for financial / mathematical modelling but will be taught within a practical context using Excel as the modelling tool. The programme will follow a workshop format to encourage an interactive rather than didactic approach to help develop practical modelling skills. Real-life case studies will be used throughout the course to provide continuity and to allow participants to apply their new skills. Additional exercises will be used to enhance the learning process.

This is a hands-on course, structured with a high tutor/student ratio to ensure that delegates can gain the maximum benefit rather than waiting to ask questions such as “How do I...?”
For this reason, a cap on the number of delegates is imposed.

There will be no more than 8 delegates per FSMD tutor.

Content: The objective of the course is to provide delegates with the practical skills to build the key elements of an integrated business planning model.

Efficient and effective financial modelling is a powerful tool for housing associations and related agencies seeking to optimise their financial decision making and planning. Models that facilitate accurate financial forecasting and “what-if” analysis are essential in areas such as project appraisal, funding and business planning.

In addition accurate presentation of a model’s outputs is often critical in creating an efficient decision making process. Communicating financial data to an association’s board can be made much more effective by use of some readily-available modelling tools.

This workshop will enhance understanding of the use of Excel’s sensitivity tools and look at more advanced approaches to managing scenarios. These techniques will help participants to analyse more effectively and efficiently the financial dynamics of a particular situation.

The workshop will also enhance understanding of techniques and develop advanced spreadsheet handling skills for communication purposes.

Timetable

DAY 1

08.30 - 09.00 Registration and Coffee

Introduction
09.15 - 10.30 Review of Advanced Excel Functions and Techniques
• worksheets and workbooks • copying, dragging and summing • copying and naming sheets
• linking sheets and books • array arithmetic • grouping sheets • conditional statements

10.30 - 10.45 Coffee

10.45 - 13.00 Basic Modelling Concepts and "Good-practice" Guidleines cont/
• spreadsheet syle guide

14.00 - 15.30 Advanced Excel Modelling Techniques (1)
• iterative calculations and alternatives • interest calculations • tracing and auditing
• goalseek and Solver • Excel financial functions

13.00 - 14.00 Lunch
Practical Applications (1)
Business Planning Model Case Study
• development of Forecasting Sub-model
- project forecast - working capital - capex and depreciation - taxation

15.30 - 15.45: Tea
15.45 - 17.00 : Business Planning Model Case Study (cont'd)
• development of Forecasting Sub-model
- interest sub-model - integration of and reconciliation of profit and loss account, balance sheet and cash flow

09.00 - 10.30 Practical Applications (2)
Project Appraisal Model Case Study
• capital expenditures and disposals
• I&E projections
• cash flow adjustments
• inflation and discount rates
• financing cash flows

10.30 - 10.45 Coffee
15.45 - 17.00: Practical Applications (2) (cont'd)
Project Appraisal Model Case Study
• discounting mechanics & metrics
• terminal values
• DCF, NPV, discounted pay-backs, profitability index
• geared and ungeared approaches
• project life and loan cover ratios

13.00 - 14.00 : Lunch
14.00 - 15.30: Advanced Modelling Techniques (2)
Application to Case Study
• sensitivity analysis
- one-way data tables - two-way data tables - scenarios - beyond the two-way data tatables - scenarios - beyond the two-way data table - data validation

15.30 - 15.45: Tea
15.45 - 17.00: Advanced Modelling Techniques (2) (cont'd)
Application to Case Study
• sensitivity analysis
- advanced sensitivity techniques - automating the model using controls and macros