Myanma Port Authority (Account Department)
Financial Management of Ports
The Task of management is to:
(1) Set aims and objectives (5) Co –ordinate
(2) Plan (6)Control
(3) Initiate (7)Measure
(4) Communicate (8) Assess
(9) Re-plan of necessary
In order to carry out these duties ,and achieve the objectives set for the port , managers must plan for the future and not respond solely to events as they occur . They must be creative in approach , identify opportunities well in advance and so react in a way most beneficial to the port and the community .
Financial planning for the future can be divided into three main areas :
1 ) Short –term profit planning –usually for one year ahead – the Revenue Budget .
2)Long – term planning , perhaps covering 10 or 15 years , including the construction and
Purchase of capital or major assets –capital budgeting.
3) Cash budgeting , which involves scheduling future inflows and outflows of cash arising from
(1)and (2) above as well as the borrowing and repayment of loans ,sale of major assets etc.
in the following pages we cover only the aspects of short – term profit planning and cash budgeting , as the long – term planning is comprehensively discussed in other UNCTAD publications.
Profit planning over a number of years can be scheduled in such a manner that , for example , in a five – year budget , as each separate year passes , that year is dropped from the budget , year number 5 becomes year number 4 , and another budget year ,year 6 ,enters the schedule as year 5 . This is called a rolling budget.