University Budget Preparation and Monitoring Project: SITXFIN004

This document presents a comprehensive student assignment focused on budget preparation and monitoring within the hospitality sector. The assignment comprises three key components: scenario-based case studies, a multiple-choice knowledge test, and a workbook with short-answer questions. The case studies delve into practical applications, such as planning a charity event and analyzing business performance, requiring the student to prepare various budgets (expense, revenue, and cash flow), identify influencing factors, and propose solutions to budget variances. The multiple-choice test assesses the student's understanding of fundamental budgeting concepts, including budget types, performance data, external influences, and best practices. The workbook section reinforces these concepts through short-answer questions, covering topics like budget preparation, finalization, monitoring, and review. The assignment also emphasizes the importance of communication, teamwork, and data analysis in effective budget management. The student is required to demonstrate their ability to apply financial principles to real-world scenarios, analyze financial data, and make informed recommendations to achieve organizational goals. The assignment covers all aspects of budget management, from initial preparation to ongoing monitoring and evaluation, making it a valuable resource for students studying hospitality management or finance.

Running head: PREPARATION AND MONITORING BUDGET
Preparation And Monitoring Budget
Name of the Student
Name of the University
Author Note:

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ASSESSMENT SUMMARY / COVER SHEET
This form is to be completed by the assessor and used as a final record of student competency.
All student submissions including any associated checklists are to be attached to this cover sheet
before placing on the students file.
Student results are not to be entered into the Student Management Database unless all relevant
paperwork is completed and attached to this form.
Student Name:
Student ID No:
Completion Date:
Unit Code:
Unit Title:
Please attach the following documentation to this
form
Result
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed
Reassessment
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed
Assessment 1
 Case Study A1
 Case Study A2
 Case Study A3
S | NS | NA
S | NS | NA
S | NS | NA
S | NS | NA
S | NS | NA
S | NS | NA
Assessment 2
 Multiple Choice -
Knowledge Test S | NS | NA S | NS | NA
Assessment 3  Work Book – Short Answer S | NS | NA S | NS | NA
Final Assessment Result for this unit C / NYC
Assessor Comments and Feedback to student:
_____________________________________________________________________________________________
_____________________________________________________________________________________
Student Declaration: I declare that this assessment is my
own work based on personal study and research and not
plagiarised or copied from another student’s work or source.
I am also aware of my appeal rights.
Name: ____________________________
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have conducted
a fair, valid, reliable and flexible assessment with this
student. I have provided appropriate feedback and advised
the student of their result.
Name: ____________________________
Signature: ____________________________
Date: ____/_____/_____
Administrative use only  ________________

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Entered into Student Management
Database Date Initials

3Preparation And Monitoring Budget
Table of Contents
Scenario A1.....................................................................................................................................2
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................4
Scenario 2........................................................................................................................................7
Assignment B.................................................................................................................................10
Assignment C.................................................................................................................................18
Section 1: Prepare Budget Information.........................................................................................18
Section 2: Prepare Budget.............................................................................................................23
Section 3: Finalise Budget.............................................................................................................27
Section 4: Monitor and Review Budget.........................................................................................29
Reference.......................................................................................................................................33

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Scenario A1
Task 1
Q1: What are two of the charity organization’s goals and objectives for this event?
Answer:
 To hold a successful event is the first goal.
 Earning a reasonable profit from the charity ball and auction.
Q2: What budgets do you need to prepare to help you achieve these goals? (List 3 budgets)
Answer:
 Expense Budget of all foods and beverages
 Revenue Budget from the sales of tickets, and
 Cash flow budget for all the cash and miscellaneous cash expenses
Q3: What are four external and internal factors that might affect the event and therefore your
budgets?
Answers:
 Economic Conditions
 The competitors involved in doing the auction
 Shifts and changes in the marketing trends
 Availability and requirement of human resources

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Q4: What type(s) of data or information will assist you in the preparation of your budgets?
Where could you find it? (List Minimum of 7)
Information/data required Sources
Cost of the ticket Income and expenditure report
Customer demographics Purchase Order
Required profit Income and expenditure report
Q5: The event committee want to be involved in the planning process. What techniques can
you use to enable them to contribute to budget planning processes, negotiate changes and inform
them of budget decisions?
 By highlighting the planning process to the event committee, changes can be made if any
modification or requirement is needed from their side.
 Communicating often with the committee
 Ensure that the budget remains flexible.

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Task 2
Q1: How can you present the draft revenue budgets to the event committee and other relevant
parties?
The draft revenue budget can be presented in the form of a statement showing the amount
of revenue through the sale of the ticket that will be achieved by the organization if the event
gets successful.
Q2: Why should you circulate a draft budget to the members of the events committee?
The members will be able capitalize expenditure and make necessary modification along
with the provision of the amount of expenses. It will act as a security figures in achieving
required amount through loan.
Q3: Do you think either of the budget options presented meets the charity organisation’s
stated goals? Why/why not?
The goals of the organization is to earn a reasonable profit by doing a successful event,
hence both the budget presented and meets the organizational goals since both the budget will
yield the organization sufficient profit that will improve the ability of the organization to provide
aid to others. Since, the organization is already earning required profit by selling tickets at $175,
therefore it is set as a selling price
Q4: What recommendations would you make to the event committee to help them achieve
their goals?

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 Team work will be important while organizing the event.
 Provide insurance and safety of the customer by assessing all possible risk.
 The marketing of the event is important in order to sell the complete tickets.
Q5: Once the final budget has been approved, what information do you need to communicate
to your team, the event committee, internal ticket sales staff and external agencies about the final
budget?
For a successful budget, it is important to communicate and cooperate with different
departments in the matter of their concern. Hence, the information that needs to be
communicated with the event committee is about the achievement of the objectives and the
profits that can be derived from it. Internal ticket staff are required to be informed about the price
of the ticket and the total tickets required to be sold. External agencies will be informed about the
amount of contribution required, number of tickets that needs to be sold from their side, if any,
and the date and location of the event.
Q6: After the event, you have to prepare a report to the event committee on the outcomes of
the gala ball. What should your report include?
 The report should include the incoming and outgoing cash flows
 Operational performance
 Sales performance
 Marketing performance
Q7: The NFP organisation are very happy with the outcomes from the gala ball and want to
hold it again next year. What information would you collect and record to assist in preparing
budgets for next year’s event?

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The performance report of the budget not only provides the actual result but also provides
reason for the deviation from the standard, and provides corrective action that needs to be taken.
They can also refer to the previous year and current year data to prepare or forecast budget in the
future. This data relates to the sales, expenditure, trends and such useful information that may
help the organization to prepare an accurate budget for the next event.

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Scenario 2
Q1: What information contained in the income statement are important performance
indicators for the business?
Answer:
The information contained in the income statement that are important performance
indicators of the business are (Bini, Dainelli and Giunta 2017):
 Gross profit
 Positive Net profit
 Total Revenue
Q2: Which variances are favorable and unfavorable results for the business? Give three
examples of each.
Answer:
 Favorable – The variance which improves or increases the net income of the business are
considered as favorable variance (Hoang and Hoxha 2017). The examples are:
 Food Revenue
 Food Purchases
 Beverages Purchases
 Unfavorable – The variance which reduces or decrease the net income of the business are
considered as unfavorable variance:
 Expenses on wages,

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 Expenses on Insurance,
 Revenue from Beverage.
Q3: What could be the possible causes of the budget variances? Consider what changes to the
internal or external environment might have contributed to the deviations.
Answer: The cause of the variance in the budget is due to
 Increase in the utility expense
 Rise in the wage rates
The increase in the expenses of the utilities and labour wage which changes due to forces and
factors which are external to the environment is the cause of the deviation.
Q4: What actions (if any) could the brothers take to reduce the possibility of the unfavorable
variances occurring again?
Answer:
To reduce the possibility of the unfavorable variance, the brothers could take following
action:
 Decreasing the number of worker since renovation will take place in the upcoming
months and hence some areas will remain occupied. This will reduce the wages and
unfavorable variance.

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Q5: What adjustments might need to be made when preparing future budgets as a result of the
outcomes of this budget?
Answer:
The outcome of this budget has been favorable with respect to the cost and revenues,
however, the adjustment is required to be made in the expenses of the store which shows an
unfavorable variance in the budget, while preparing future budget.