Detailed Financial Budget Report and Analysis for Cultural Event

This report provides a comprehensive analysis of a financial budget prepared for a cultural event organized by the Australian Multicultural Foundation during Harmony Week. The report details the event's operational plan, including the formation of teams responsible for various aspects such as food, conference halls, and decorations. It includes a business plan outlining expenses for accommodation, equipment, catering, and other event-related costs. The report also discusses budget allocation, staff meetings, and cash flow management. A financial statement is presented, comparing revenue and expenses, and a proposed change to the event structure is suggested. Furthermore, the report includes a standard operating procedure (SOP) comparing budgeted and actual values, along with an interpretation of variances. A reflection section highlights areas for improvement in budget management, advocating for zero-based budgeting and resource training. The conclusion emphasizes the significance of budgeting for expense control in business operations.

MANAGE FINANCES WITHIN A
BUDGET

EXECUTIVE SUMMARY
Present research study is reflecting that budget must be prepared in respect to every project and
documentation must also be prepared in respect to their use. By doing so strog control can be
maintained on expenses in the business.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Event description.........................................................................................................................1
Operational plan...........................................................................................................................1
Developing a business plan.........................................................................................................1
Staff meeting and notes...............................................................................................................1
Cash flow and surplus to mark operational tasks........................................................................2
Maintinance of records................................................................................................................2
Hierarchy or organization chart...................................................................................................2
Financial statement......................................................................................................................3
Proposed idea for change in event...............................................................................................3
.........................................................................................................................................................3
Part 2................................................................................................................................................3
Standard operating procedure......................................................................................................3
Interpretation..............................................................................................................................4
Part 3................................................................................................................................................4
Reflection.....................................................................................................................................4
CONCLUSION................................................................................................................................4

INTRODUCTION
Budget is the one of the important tool that is used by the firms to control expenses. In
the current report, budget is prepared in respect to cultural event. Detail discussion is carried out
on entire event oprational plan. At end of the report, conclusion section is prepared.
Part 1
Event description
Australian Multicultural Foundation set to celeberate harmony week and in this regard
from international community number of peoples are invited. Some of local officials will also
join relevant work. Accomodation will be provided to all guests and along with this all amenities
like food, drink and equipments as well as confrrence hall will also be made available to relevant
people.
Operational plan
As part of operational plan team will be prepared which will look after entire project.
Three teams will be prepared which will lookafter food, confrence hall and other official works
as well as decoration and other small activities that need to be performed in respect to
implementation of cultural program.
Developing a business plan
Accommodation 7672
Equipment 11128
Food/Catering 8000
Recreational hall 20000
Round tables with chairs 5000
Lights on last day for musical night 1000
Small stage for speeches and individual
performance 500
Floral decoration 700
Small bouquets 5000
Transport 8000
Total 67000
Staff meeting and notes
Budget discussion process format
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 Department head meeting: In this stage departmental heads will identify all expenses
and allocate same across varied activities. In this regard market rates in respect to
accomodation charges for single day and charge for booking of recreational hall will be
identified. Meeting with top manager: After preparation of budget at department level same will be
communicated to the top managers and detail discussion will be carried out on same. Feedback calling: In this stage top manager will give feedback and forecast will be
prepare report will be finally prepared after making amendments in statement.
Cash flow and surplus to mark operational tasks
From appendix 2 it can be observed that major operational tasks are recreational hall,
lights on last days, and round table with chairs. These are the one of major operational tasks.
However, management need to prepare contingency plan so as to handle contingent problems. In
this regard, contingent plan can be prepare in respect to food and catring services and contact can
be estabslihed multiple suppliers so that things can be available on time.
Maintinance of records
In order to maintain record budget will be stored in the excel sheet and same will be
protected by user ID and password. Thus, no one will be able to access budget without
permission. Apart from this, all relevant documents will be saved on Google Drive so that
relevant things can be access from any place.
Hierarchy or organization chart
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Project manager
Team (A) (Food and
catering team)
Team (B) (Confrence hall and
other official work)
Team © (Decoration
and other small
activites)

Financial statement
Table 1Financial statement
Revenue 140000
Expenses
Accommodation 7672
Equipment 11128
Food/Catering 8000
Recreational hall 20000
Round tables with chairs 5000
Lights on last day for musical night 1000
Small stage for speech 500
Floral decoration 700
Small bouquets 5000
Transport passengers 8000
Total expenses 67000
Net profit 73000
Proposed idea for change in event
As part of change in the structure there must be assistant project manager who along with
project manager oversee progress that happened in the project. It can be said that by doing so it
can be ensured that all project related operations will be performed smoothly.
Part 2
Standard operating procedure
Table 2Actual and budgeted values
Budgeted Actual
Accommodation 7672 7000
Equipment 1000 1000
Food/Catering 5040 6850
Recreational hall 8570 8000
Round tables with chairs 3020 3000
Lights on last day for musical night 1050 1500
Small stage for speeches and individual
performance 580 600
Floral decoration 640 630
Small bouquets 560 600
Transport 550 600
Total 28682 29780
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Interpretation
It can be seen from table that there is less variance between actual and expected values.
Only in case of food catering, lights expenses, small stage for speech are some of the areas where
variance is negative. Hence, it can be said that in these areas due care need to be taken.
SOP
In order to prepare SOP some of items are considered. In order to interpret budget
budgted and current values of variable must be compared with each other and on that basis it can
be identified whether performance was good or bad.
As part of breakdown budget given above can be break in multiple parts in terms of
expenses whose value is high and expenses whose value is low. By classifying budget in such a
way better analysis can be done.
Part 3
Reflection
In my opinion there are some major areas of improvement as it can be observed that
budgeted and actual values are different from each other. Thus, I think that there is need to
follow appropriate budget management technique. In this regard zero based budgeting method
must be used under which department heads will prepare budget at their own level and will put
forth same to top manager for approval. Advantage of this approach is that all entities will be
made responsible in case budget and actual results vary from each other. Disadvantage is that
process is time consuming in nature in respect to zero base budget. As part of resource training
need to be given to managers in respect to use of prediction models and LPP by using which
tghen can make better prediction and resource allocation.
CONCLUSION
On basis of above discussion it is concluded that there is significent importance of the
budgeting for the business firms. This is because by using same good control is maintained on
the expenses in the business. Hence, on yearly basis consistently budget is prepared by the firms.
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