Activity 3A

To provide you with an opportunity to understand how to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations.

Write a plan detailing how you would circulate newly-written budgets to managers and explain any additional information they need to know, such as reporting requirements and financial delegations.

Activity 3B

To provide you with an opportunity to understand how to manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.

Identify five different ways staff could misappropriate company funds and suggest a resolution for each. 

Activity 3C

To provide you with an opportunity to understand how to review profit and loss statements, cash flows and ageing summaries.

Explain your organisation’s use of ageing summaries, in terms of accounts payable and receivable, where applicable.

Activity 3D

To provide you with an opportunity to understand how to revise budgets, as required, to deal with contingencies. 

Give an example of a contingency that could occur at your workplace and explain how you would revise the budget to deal with it. 

Activity 3E

To provide you with an opportunity to understand how to maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations.

Give an example of how you could use an audit trail to identify a discrepancy in budget allocations.

Activity 3F

To provide you with an opportunity to understand how to ensure compliance with due diligence.

Identify three areas of compliance you could monitor in your workplace and explain how you would ensure that regulations are being adhered to.

Activity 4A

To provide you with an opportunity to ensure structure and format of reports are clear and conform to organisational and statutory requirements.

Identify a report used in your workplace and list all of your organisation’s specifications here, including format and style.

Activity 4B

To provide you with an opportunity to understand how to identify and prioritise significant issues in statements, including comparative financial performances for review and decision making.

How are significant issues in statements highlighted for priority attention in your workplace?

Activity 4C

To provide you with an opportunity to understand how to prepare recommendations to ensure financial viability of the organisation.

Explain how you would use each of the following to determine the financial viability of the organisation:

 Cash flow

 Changes in business activity, including markets, goods or services traded

 Consolidation 

 Expenses and overheads

 Labour costs, including decisions to move production to other locations or sites

 Loss

 Profit

 Write-offs.

Activity 4D

To provide you with an opportunity to understand how to evaluate the effectiveness of financial management processes.

Outline here how you would evaluate the effectiveness of your organisation’s financial management processes.