Scribd
Upload
143 views3 pages

Assessment 3 Task 2 REVIEW&EVALUATE

The document discusses reviewing and evaluating the financial processes of a budget or financial plan. It describes identifying variances from the original plan, explaining contingency adjustments that would need to be made to maintain financial objectives, and monitoring the modifications to ensure objectives are met. It recommends developing a strategic financial planning model, collecting and analyzing financial data using tools like spreadsheets, and identifying opportunities to improve financial management processes through gaining team agreement on changes.

Uploaded by

valegiraldo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
143 views3 pages

Assessment 3 Task 2 REVIEW&EVALUATE

The document discusses reviewing and evaluating the financial processes of a budget or financial plan. It describes identifying variances from the original plan, explaining contingency adjustments that would need to be made to maintain financial objectives, and monitoring the modifications to ensure objectives are met. It recommends developing a strategic financial planning model, collecting and analyzing financial data using tools like spreadsheets, and identifying opportunities to improve financial management processes through gaining team agreement on changes.

Uploaded by

valegiraldo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

PROJECT 2 TASK 2 of 2: Review and Evaluate Financial Process of Budget or Financial Plan

2.1 After identifying variances in a budget or financial plan the manager needs to make the
decision as to whether the objectives will be achieved or if the plan needs to be modified. In the
report:

 Develop a scenario where there have been 3 areas of account variances (values less than
originally planned) and 2 areas of account overruns (values over the original plan). You
may use the team budget or financial plan from Task 1 of Assessment 2 or a similar plan.

 Explain the contingency adjustments that you would need to implement in order to
maintain the financial objectives. To assist in your explanation, you may need to attach a
copy of the original budget or financial plan that is to be adjusted.

AREAS ISSUES CHANGES-


Contingency
Financial target Sales volume due to Modify the target in
current economic 10% less
climate
Marketing More promotionals To reduce the cost of
investment activities to be done this activities or try to
join distribuitors
Advertising Economic downturn To reduce the budget
for expensive media
and to explore
cheaper medias

 Describe the monitoring process you would then undertake to ensure the modifications
were sufficient or if further adjustments modifications may be necessary in order to
achieve the financial objectives of the original budget or financial plan. If further
medication maybe required explain how you would identify and implement them.
 Explain the organisational procedures and protocols to report on the team’s budget or
financial plan variances, the modifications and contingency plans implemented and the
process to gain approval from the appropriate personnel.

In order to improve the financial planning in the organisation we need to develop a model for
strategic financial planning which needs to be met effectively by the organisation (Manage
Budgets and Financial plans). The first step is accessing the team’s budget and Financial Plans. The
teams Budget and financial plans include:

 Long term Budgets/ Plan


 Short term Budgets/ Plans
 Operational plans
 Spreadsheet based financial projections
 Cash flow projections
Targets or key performance indicators (KPIs) for wastage, production, sales, productivity, income
as well as expenditures for the organisation. Current budget and financial plans can be accesses by
looking at the demand and the spending of the organisation. Finding the cash flows which are
received in the organisation and analyse whether the sources for cash flows are changing.
Regularly keep an eye on the actual financial performance and prepare a report also regarding the
year end position of the organisation. Found out all the relevant accountant or auditors report
which might be of some help on organisations development.

These current budget plans are being clarified with the relevant personnel in the organisation in
order to find out whether the budget plans are achievable or not.

Explain the financial management processes that are used to monitor the effectiveness and
reliability of financial activities of the work team.

The plan which has been currently developed is according to the organisations layout
needs and easily understood too and quite clear in its intent. All the projections,
calculations and information are found to be accurate.
The capabilities of the area of responsibility assigned and along with the team are capable
enough of delivering the goods and services which are required from the organisation
within the assigned budget and time, the economic and market scenario has experienced
a downturn though affecting sales a trade marketing strategy

 List the documents that you would use to collect and collate data and information on the
effectiveness of the financial management process.
Explain the approach you would use to analyse the data and information you gathered i.e.
spreadsheet, tables, diagrams, etc. in order to identify financial process improvements
opportunities. An example of your analysis may be attached to explain your approach.

In order to do proper monitoring for the budgets and the financial plans we need to collect all the
data information available for the effectiveness of the implementation of financial management
processes in the organisational and then we need to collate this data for the work teams for
analysis. It includes collecting all the paper based or electronically gathered information which is
related to cash flow data, files of paid purchases and all the service invoices, employee
timesheets, petty cash receipts, invoices, insurance reports, contracts, income and expenditure,
quotations, job costing, credit card statements, wages/ salaries book, bank account records and
taxation records. These are very helpful and effective in finding the cost overruns and other
problems like generating variance reports regarding the real income and expenditure done against
the budget too.

 Describe the areas of the financial management process that may be improved and your
recommendations for process improvements to ensure the effectiveness, efficiency and
reliability of the financial management processes.

 Describe the steps you would take to gain agreement from your work team on the changes in
the financial management process within the work team.

The financial plans or budgets are the frameworks which are being designed for the organisation
to work within. But when we find that they are no longer achievable or you can work on them,
then we need to adjust then or make some changes in them. Having a contingency plan and
performing risk analysis is a good organisational practice. The contingency plans we developed
were focused on:

-Outsourcing or contracting human resource and other functions or tasks related to human
resource (national sales team in stores)

-Strategies for cost reduction, stocks, wastage and consumables: Opening the second biggest
laundry machine factor in South America based in Colombia

Recycling or re-usage of materials used in the organisation: Developing standard pop material to
replace and reuses over and over again in the different merchandising display activities.

Identification of risk, management processes and risk assessment too: Developing better and
closer relations with trade partners to a have a better understanding of their decisions and future
plans.

You might also like