Manage budgets and financial plans
Manage budgets and financial plans
Part 1
Complete the table below by providing a definition for the term and explaining its importance to the financial management of the organisation.
Term Definition (Approximately 25 words) Importance for financial management (Approximately 25 words)
Budgeting Cash flows Electronic spreadsheets Ledgers Financial statements Profit and loss statements Ageing summaries Petty cash 2. Identify two accounting principles and explain how they impact on your financial management processes (Approximately 25-50 words each). We have provided an example in the first row.
Accounting Principle Impact on your financial management process
E.g. Consistency Principle Once you adopt an approach for consistency you should continue to use it. If you use cash accrual you should continue to be cash accrual each year.
3. Locate an annual financial report for a Victorian community organisation. Most organisations include financial statements/reports in their annual report. These may be located on an organisations website.
Answer the following questions in relation to the annual report you have chosen:
A) Provide the organisations name:
B) Provide the URL for financial report:
C) Identify what financial information the report offers describe the contents of the report and explain what it tells you about the financial activities of the organisation (50 to 100 words).
Using the same organisation identified above, examine and comment on the financial summaries for information about the fiscal condition of the organisation. Confirm the following:
D) Did they have a deficit or surplus budget?
E) Was this explained in the treasurers report?
Read the auditors report.
F) Did the auditor find the organisation complied and, if so, with what standards did they comply? (Approximately 25-50 words)
G) What ATO record keeping requirements does the organisation need to abide by? (Approximately 25-50 words).
Part 2 Budget Case Study
CareShore is reviewing its quarterly budget provided below. Answer the following questions on this financial review.
CareShore Financial Plan 2016 - 2017
Part 2 Budget Case Study
CareShore is reviewing its quarterly budget provided below. Answer the following questions on this financial review.
CareShore Financial Plan 2016 - 2017
Annual Budget Projected Quartely Budget: July to Sept Actual Income/Expenditure: Jul-Sep Quarter Variance (Projected Budget +/- Actual) Revised Budget: October to December Quarter Comments (Please justify reason for adjustment)
Income $ $ $ $ $
Grants 1,305,325 326,331 350,000 23,669
Donations 105,000 26,250 25,000 -1,250
Interest 24,500 6,125 4,000 -2,125
Other Income 68,000 17,000 56,000 39,000
TOTAL 1,502,825 375,706 435,000 59,294
Expenditure $ $ $ $ $
Rent 125,000 31,250 31,250 0
Administration 265,000 66,250 80,000 13,750
Depreciation 24,365 6,091 0 -6,091
Employee Costs 940,560 235,140 250,000 14,860
Travel 6,000 1,500 1,250 -250
Program Costs 70,000 17,500 20,000 2,500
Contingency 1,900 475 0 -475
Other 70,000 17,500 12,000 -5,500
TOTAL 1,502,825 375,706 394,500 18,794
What is this report telling you about their current budget allocations? (Approximately 25-50 words)
For example, you could talk about what is most overspent and underspent.
List 2 significant line items that needs to be adjusted and briefly explain why?
(Approximately 25-50 words)
What further information do you need to ensure the budget going forward is realistic? (Approximately 25-50 words)
Who else do you need to consult/negotiate with in the organisation when reviewing the budget?
(Approximately 25-50 words)
Complete the final column Revised Budget, explaining your decisions in the Comments column. (Approximately 25-50 words)
Annual Budget Projected Quarterly Budget: July to Sept Actual Income/ Expenditure: Jul-Sep Quarter Variance (Projected Budget +/- Actual) Revised Budget: October to December Quarter Comments (Please justify reason for adjustment)
Income $ $ $ $ $ Grants 1,305,325 326,331 350,000 23,669 Donations 105,000 26,250 25,000 -1,250 Interest 24,500 6,125 4,000 -2,125 Other Income 68,000 17,000 56,000 39,000 TOTAL 1,502,825 375,706 435,000 59,294 Expenditure $ $ $ $ $ Rent 125,000 31,250 31,250 0 Administration 265,000 66,250 80,000 13,750 Depreciation 24,365 6,091 0 -6,091 Employee Costs 940,560 235,140 250,000 14,860 Travel 6,000 1,500 1,250 -250 Program Costs 70,000 17,500 20,000 2,500 Contingency 1,900 475 0 -475 Other 70,000 17,500 12,000 -5,500 TOTAL 1,502,825 375,706 394,500 18,794 Now that you have made changes to the budget, who needs to be advised and how will you disseminate the information?
Who needs to be advised?
How will you disseminate the information? (Approximately 25-50 words)
Clearly, you have had some unexpected expenditure that has impacted the budget. What processes will you now put in places to control costs? (Approximately 25-50 words)
Finally, the budget overruns have meant that you will now need to develop and implement a contingency plan.
Develop a contingency plan to ensure the budget is back on track. Include how you will monitor this plan to maintain your financial objectives and who will be involved in the management of the plan.
Contingency Plan
(Approximately 100-200 words)
How will you monitor this plan?
Who will be involved in the management of this plan?
Part 3
Name the Government Legislation for the Goods and Services Tax GST (Approximately 25 words).
Explain what GST is and how it is implemented? (Approximately 25-50 words).
Who is required to register for GST? (Approximately 25 words).
Based on your work placement or current place of work, identify a work team that you have observed in operation:
Who was responsible for the management of finances?
Provide an example of how they supported other team members when managing the finances.
(Approximately 50-75 words)
Provide an example of what financial data may be used to assist staff to review an aspect of their work (Approximately 25-50 words).
Identify and describe an improvement made by the team to the financial management of their section. (Approximately 25-50 words).
