Assessment report 2
Assessment Task 2 is also a written report. For this assessment task, you are required to read the case study provided in the appendix and develop a written report of Bicycle company in Australia about 1200 words on monitor and control finances, review variances, and review and evaluate processes using the guidelines provided. Students can use the given template for written report and are allocated with a week’s time to complete this assessment. The report should be detailed and well-structured and must include answers to the following:
1. Monitor and Control Finances
After the implementation of a budget/financial plan it is essential that you monitor actual expenditure and control costs across the financial activities of the work team.
Using the team budget/financial plan from the previous task, explain the following:
- The organisational processes used to monitor the work team’s reports on actual expenses incurred in a performance of their financial functions.
- The processes available to control costs incurred by the work team in performance of their financial function.
- The processes used to monitor and modify contingency plans.
- The steps and organisational processes available to provide feedback on the team’s expenses and costs incurred in performance of their financial functions.
- Explain the steps involved in using a spreadsheet as the tool to identify the variances and overruns.
2. Review Variances
- Develop a scenario where there have been 3 areas of account variances (values less than originally planned) and 5 areas of account overruns (values over the original plan)
- List the 8 accounts that are under and over the planned values, the original planned value, the actual (scenario under and over) values, and calculate the under and over variance difference and percentages of each variance
- 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/financial plan that is to be adjusted
- Describe the monitoring process you would then undertake to ensure the modification were sufficient or if further adjustment modifications may be necessary in order to achieve the financial objectives of the original budget/financial plan. If further modifications may be required, explain how you would identify and implement them
- Explain the organisational procedures and protocols to report on the team’s budget/financial plan variances, the modifications and contingency plans implemented and the process to gain approval from the appropriate personnel.
3. Review and Evaluate Processes
As part of an organisation’s continuous improvement process, a manager needs to ensure the organisation’s policies, procedures; systems and processes are effective, efficient, reliable and are used appropriately by staff. Explain the following:
- Explain the financial management processes that are used to monitor the effectiveness and reliability of financial activities of the work team
- 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 improvement opportunities. An example of your analysis may be attached to explain your approach
- 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
- Explain the organisational processes required to implement and monitor the agreed improvements
- Explain how the improved financial management process is more aligned with the financial objectives of the work team and organisation