Open book accounting – accredited programme

Essential to ensuring value for money through collaboration and partnering.

In achieving cost reductions and greater efficiency, your organisation is most likely to be planning collaborative or partnering procurement arrangements. Major efficiencies can be gained through working more closely with private sector contractors.

Crucial to making these arrangements work is the use of open book accounting - if it is well understood and effectively implemented.

However, OBA strategies and techniques are now being widely implemented and operated in the public sector without best practice guidance or support from government or professional bodies.

To address this skills shortfall, CIPFA and CIMA, in association with delivery partner Stradia, have developed the only recognised accredited OBA programme in the UK.

All client and contact partner staff who wish to develop and improve their practical understanding of the open book accounting tools and techniques which support target contracts and successful project delivery.

The CIPFA/CIMA Open Book Accounting accredited course will allow individuals responsible for contracts and implementing partnerships to:

• initiate and manage Open Book Accounting processes through collaborative working
• agree contract terms; understand overheads and profit; and set a target price
• reduce costs via techniques such as value management and value engineering, process re-engineering and supply chain management
• improve problem solving and communications
• enhance performance through review processes and KPIs.
This three-day accredited programme of training will provide delegates with in-depth knowledge and understanding of all aspects of open booking accounting in practice, from both the client and contractor perspectives. The programme is practical in that it includes time for personal action planning at the end of the training, designed to encourage delegates to set goals for applying their learned skills in the workplace.  The course includes an examination, leading to a joint CIMA/CIPFA accreditation.

The initial training is delivered over two days, followed approximately three weeks later with the third day which includes the examination. 

Day one - Procuring and initiating an open book accounting contract.

Session one – The procurement process.

• Developing and agreeing objectives.
• Establishing a procurement strategy.
• Developing a definition for actual cost.
• Use of incentives.
• Defining the pain / gain share arrangements.
• Developing a target setting process.
• Establishing financial partner selection criteria: overheads and profit; cost models, cost plans and schedules of rates; open book procedures; Henry Brothers (Magherafelt) Limited and others v Department Of Education For Northern Ireland.

Session two – Initiating open book accounting processes.

• Collaborative working.
• Agreeing contact terms.
• Finalising a definition for actual cost: site cost; local, branch, or site overheads; disallowed cost.
• Understanding off site and head office overheads and profit.
• Finalising the target setting process.
• Setting the target price.
• Developing risk allowances.
• Establishing design development allowances.

Day two - Implementing and managing open book accounting processes to achieve value for money.

Session three - Managing an open book accounting contract.

• Agreeing the cost management and reporting processes: format of information; cost codes; phases and batches; reporting requirements;  systems, models and spreadsheets.
• Agreeing the process for compiling with a definition of actual cost: discounts; plant hire; internal companies; accruals.
• Managing changes and variations: price variation; adjusting the target price.

Session four – Techniques for reducing cost.

• Value management.
• Value engineering.
• Process re-engineering.
• Supply chain management.
• Standardising of components and design.
• Effective use of frameworks and long-term contracts.
• Strategic planning and purchasing.

Session five – Corporate governance and auditing.

• Agreeing an audit strategy.
• Implementing efficient audit processes.
• Reviews.
• Sign off and approvals.
Session six – Team structure.

• Roles and responsibilities.
• Problem solving.
• Communication.
• Training and coaching.

Session seven – Performance improvement.

•  Review process.
• Key performance indicators.
• Feedback.

Day three - Open book accounting in practice.

Day three will take place approximately three weeks after the initial two-day block.  This will give delegates the chance to appreciate how the learning may apply directly in their workplace, providing the platform for the reflective learning sessions in day three.  This structure will also provide the delegates with the opportunity to share experiences, ask further work-related questions and prepare for the examination

Session eight – Workshop review.

• Group discussion.
• Sharing work-based experiences.

Session nine – Open book accounting in practice.

• Solutions to workplace scenarios.
• Chosen topics of focus.
• Question and answer session.

Session ten – Personal development.

• Personal reflection.
• Personal action planning.

Session eleven – Open book accounting examination leading to CIMA/CIPFA accreditation.

We reserve the right to alter the timing or content of sessions where circumstances require.

The programme is held by CIPFA and endorsed by CIMA as suitable for members, their staff and colleagues. 

Find out more
If you have any queries please email or phone us on +44 (0)845 026 4722.

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