Financial Report and Budget Analysis: CareShore Case Study and GST

This assignment delves into the analysis of financial reports, budget allocations, and GST regulations, providing a comprehensive understanding of financial management within community organizations. The first part requires analyzing an annual financial report, focusing on its contents, financial summaries, auditor's report, and ATO record-keeping requirements. The second part involves a budget case study of CareShore, where the student evaluates the current budget allocations, identifies necessary adjustments, and develops a revised budget with comments. The assignment also explores the need for additional information to ensure a realistic budget, consultation requirements, and cost control measures. Finally, the assignment concludes with the development of a contingency plan to address budget overruns and maintain financial objectives, including monitoring strategies and management roles. The last part focuses on the Government Legislation for Goods and Services Tax, GST, and its implementation, as well as an example of financial management within a work team.

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3. Locate an annual financial report for a community organisation. Most organisations include financial
statements/reports in their annual report. These may be located on an organisation’s website.
Answer the following questions in relation to the annual report you have chosen:
a) Provide the organisation’s name:
Australian Red Cross
b) Provide the URL for financial report:
https://www.redcross.org.au/getmedia/3c909381-1cb9-4343-a66f-d3b9a65de01c/Red-Cross-Annual-
Report-2016-2017.pdf.aspx
c) Identify what financial information the report offers – describe the contents of the report and explain what
it tells you about the financial activities of the organisation (50 to 100 words).
Australian Red Cross annual report depicts achievements and opportunities of company and provides
financial reports such as profit and loss statements, in which organisation has generated a revenue of
$875,554,for the year 2017. Other comprehensive income statements shows that there has been
government funding of $711,451. Financial position statement depicts that there is balance in assets and
liabilities. Statement of cash flows shows that they have a positive cash balance of $403 for 2017. Overall,
Australian Red Cross has a good financial position for the year.
Using the same organisation identified above, examine and comment on the financial summaries for
information about the fiscal condition of the organisation. Confirm the following:
d) Did they have a deficit or surplus budget?
They have a surplus of $15 million for the year of 2017.
e) Was this explained in the treasurer’s report?
No
Read the auditor’s report.
f) Did the auditor find the organisation complied and, if so, with what standards did they comply?
(Approximately 25-50 words)
The auditor's report states that Australian Red Cross complies to the Australian Accounting Standards.
They depict a true and fair view of company's financial position and performance, which was dated on 30
June, 2017.
g) What ATO (Australian taxation office) record keeping requirements does the organisation
need to abide by? (Approximately 25-50 words).
Australian Red Cross needs to abide by the maintenance of 5 years' financial records that are up to date.
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They have to keep tax records, payments received, expenses, gifts and donations. They are required to
keep electronic records of above financials as well.
Part 2 – Budget Case Study
CareShore is reviewing its quarterly budget provided below. Answer the following questions on this
financial review.
Annual
Budget
July - Sept
Budget
Exp to
September
2017
Variance Revised
Budget
Comments
Income $ $ $ $ $
Grants 1305325 326331 350000 23669 310000 According to
budgeted
grant income
it should be
326331 but it
raised by
23669 so it is
decreased by
25000.
Donations 105000 26250 25000 -1250 27500 It got donation
in decreased
format so it is
raised to
106000.
Interest 24500 6125 4000 -2125 6570 Interest
income was
budgeted as
6125 but
actually it was
4000.
Other Income 68000 17000 56000 39000 18000 Decreased by
40000.
TOTAL 1502825 375706 435000 59294 362070
Expenditure $ $ $ $ $
Rent 125000 31250 31250 0 31250 It has absence
of variation
among actual
and budgeted.

Annual
Budget
July - Sept
Budget
Exp to
September
2017
Variance Revised
Budget
Comments
Administration 265000 66250 80000 13750 67520 Raised by
14000 due to
less
expenditure
from budgeted
amount.
Depreciation 24365 6091 0 -6091 6500 Not revised
Employee
Costs
940560 235140 250000 14860 235000 Raised by
15000 due to
high expense
as compared
to budgeted.
Travel 6000 1500 1250 -250 1600 Increased by
300.
Program Costs 70000 17500 20000 2500 18000 Variance had
been added.
Contingency 1900 475 0 -475 480 Not revised
due to
absence of
variation.
Other 70000 17500 12000 -5500 17000 Added by 6000
because of
less
expenditure.
TOTAL 1502825 375706 394500 18794 377350
1. What is this report telling you about their current budget allocations? (Approximately 25-50 words)
For example, you could talk about what is most overspent and underspent.
Other income was budgeted as 17000 but it has difference of 39000. There was lack of contingency and
depreciation in actual quarter which is under allocated. Administration, employee and programme cost
was over spent from budgeted amount.
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2. What line item(s) needs to be adjusted? (Approximately 25-50 words)
There is presence of various expenses whose allocation is not appropriate such as Administration,
employee, programme and travel cost should be adjusted in appropriate format as they are not allocated
in proper format.
3. What further information do you need to ensure the budget going forward is realistic? (Approximately 25-
50 words)
It would engage each member of team and budgeting and forecasting would be flexible with proper
implementation of rolling forecast budget. It will consider regular track on its expenses and income in
simple words time should be concerned in proper format.
4. Who else do you need to consult/negotiate with in the organisation? (Approximately 25-50 words)
For consulting and negotiating with organisation, management board, finance employees are important for
communication information related to negotiation.
5. Complete the final column ‘Revised Budget’, explaining your decisions in the ‘Comments’column.
(Approximately 25-50 words)
Complete your answers in the relevant columns in table “CareShore Financial Plan 2016-2017” located at
the beginning of Part 2 above.

6. Now that you have made changes to the budget, who needs to be advised and how will you disseminate
the information?
Who needs to be advised? How will you disseminate the information?
(Approximately 25-50 words)
Financial analyst and manager of business
organisation.
The information would be disseminated through
feedback and by observing actual expenditure
incurred and budgeted amount of similar duration.
7. Clearly, you have had some unexpected expenditure that has impacted the budget. What processes will
you now put in places to control costs? (Approximately 25-50 words)
The cost could be controlled by using numerous monitoring, planning and evaluating techniques to
manage it's each expense on regular aspect. It will also ensure about profit without compromising quality.
8. Finally, the budget overruns have meant that you will now need to develop and implement a contingency
plan.
In the table below, develop a contingency plan to ensure the budget is back on track. Include
how you will monitor this plan to maintain your financial objectives and who will be involved in the
management of the plan.
Contingency Plan
(Approximately 100-200 words)
This plan is to face emergency related health and care services of children's health. For solving this issue,
there will be single team as welfare coordination team. This team will meet on selected regular intervals
throughout emergency and confirmation about frequency with nature of incident. The primary role of this
team should be appropriate allocation of this welfare task of separate agencies. Further, it will set
coordination for avoiding effort of duplication. In the similar aspect, policies will be formulated for
protecting impact of emergency. During establishment of emergency assistance centre, welfare team
leader will be appointed and contact with manager of assistance centre. The staffing requirements will be
assessed and additional support will be gained from other agencies as well. For overseeing welfare
arrangements on ground at specific centre floor walker will be appointed and liaison with children services.
In its last step, exit strategy will be considered through emergency assistance.
How will you monitor this plan?
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 It must ensure good representation across whole directorate
 Nomination of chairperson
 Ensuring single or two administrative support with team of incident. The key functions consist of
responding and checking emails, log of key decisions and issues and to answer each telephone call.
 Maintaining plan in efficient aspect.
Who will be involved in the management of this plan?
 Business
 Employees
 government
 Board management
 Multi agency
 Welfare coordination team
Part 3
1. a) Name the Government Legislation for the Goods and Services Tax – GST (Approximately 25 words).
Good and Service Tax GST came under Howard-Costello government in 2000 and it is a part of the A New
Tax System Act 1999 legislation.

b) Explain what GST is and how it is implemented? (Approximately 25-50 words).
This is a broad-based tax of 10% that is charged on the supply of goods and services. It is a federal
government tax which is then shared with the state/territory governments to fund their activities.
Businesses that generate over $75,000 per year have to register for GST.
c) Who is required to register for GST? (Approximately 25 words).
You must register for GST if: you run a business or other enterprise and your GST turnover is $75,000 or
more (for non-profit organisations the threshold is $150,000 or more per year).
2. identify a work team that you have observed in operation:
a) Identify who in that team was responsible for management of finances, and outline an example of them
supporting other team members when managing the finances.
Who was responsible for the management of finances?
David Marr is the person responsible for managing finances of Woolworths.
Provide an example of how they supported other team members when managing the finances
(Approximately 50-75 words)
David Marr is the head of finance department and is responsible for creating budgets , which supports
operations department as they are able to determine optimum allocation of resources to ensure proper
chain supply. This was done by assessing logistics which helped team members in making strategies so
that efficient deliveries could be made. This supported management in determining profits generated.
Their financial analysis helped team members in effectively achiveing targets of Woolworths.
b) Provide an example of what financial data may be used to assist staff to review an aspect of their work
(Approximately 25-50 words).
The financial data of employee turnover at Woolworths can assist in reviewing work aspects. This is the
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percentage of workers that leave company and new ones generally replace them. The turnover in 2016
was 23.5% and
c) Identify and describe an improvement made by the team to the financial management of their section.
(Approximately 25-50 words).
Woolworths has seen an improvement in the employee turnover rate.
3. Questions/Task Module 1:2
In this assessment, you can either build on your program plan developed in the Module 2 assessment or
you can design a new project. Building on your program plan from Module 2 will enable you to expand
your knowledge and skills gained and extend them to now include program management. In some of the
questions for this assessment, you will be able to build on your answers from the previous module and
look at it in a different way.
Alternatively, you can work with a new project - one that you may have worked on during work
placement or in your workplace. If you have a current project, consider using it for this assessment.
Further examples can be found online at Mission Australia or Salvation Army, if required.
To commence your program planning, you will need to decide on your project and its scope. You will
need to complete the following templates.
Part 1
1. Project Scope Document. Define the following information for your chosen project. (Approximately
25-75 words each).
1. Project background and
description
Project Name: Design New Australia
This project is related to protection of children. Child
abuse is referred as global problem which impacts both girls and
boys as well. Its existence in initial year was deeply rooted in
social, economic and cultural practices. Various children as
abused emotionally, physically, sexually and via neglect as well.
They are forced to perform child labor such as prostitution or
sweat shops.
2. Project objectives and
goals
The objective of Design new Australia is to ensure every step
about protection of children against each form of child abuse. In

the similar aspect, they want to seek work in business entity with
inadequate laws of child protection and enforcement along with
countries where families and children are vulnerable for
exploitation.
3. Project fit with
organisations missions
There aim is to create child safe environment both externally and
internally as well where children are empowered, protected,
respected and active for protecting it. It provides confidence,
competency and skills staff for giving support in accomplishing
responsibility of protection.
4. High level requirements
Adherence to this specific policy is referred as mandatory
requirement to its participants. The concern about protection and
any child abuse must be reported.
5. Assumptions
The staff has need of training which is not possible without fund.
With context of HR, staff recruitment, volunteers, contractors,
consultants along with training and induction.
6. Constraints
Time and cost is considered as major constraint. This project has
deadline date of delivery as if time of project is reduced then
there is requirement of increasing cost or to decrease its scope.
7. Project risk
Time frame
As this project is related to protection of children to take
measures from child abuse. These measure will be only
considered when this project will be operated but after this, there
is huge probability of getting similar outcome. In case, its
objective is not constrained with time there will be presence of
urgency and motivation to accomplish its objectives.
8. Project deliverables
Documents of child protection policy, Children code of conduct,
Plan international code of conduct, ACFID Code of conduct
guidance
9. Project staffing
Management and supervision, media and communication.
The main responsibility of Chief executive officer and Board for
ensuring about participants of Design Australia with context of
agreeing for abiding Plan International Code of conduct.
10. Stakeholders
Stakeholders are important to a project as they can offer ideas,
input based on their own experiences, assist with evaluation and,
in some situations, provide additional funding.
11. Reporting requirements
Child protection policy
Department for child protection
National framework for protecting Australia's Children
12. Estimated date/time frame 60 days
13. Estimated budget 50000 AUD
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2. Identifying Stakeholders. Identify the relevant stakeholders for your project. Add an “x” in the right-
hand column to identify who you believe would be a stakeholder/stakeholder group in your project. You
can select as many as you feel are relevant.
Types of Stakeholders Possible Stakeholder
Groups
Would they be a part of
your project? Include an x
Staff Program staff x
Others accountable for program/project x
Management Program managers
Executive officer
Management board x
Beneficiaries Participants
Clients
Volunteers
Community Groups and leaders Community-based organisations x
Community leaders x
Religious leaders x
Local police or committees x
Community service groups x
Chamber of commerce
Other
Other Staff from similar programs/initiatives x
Professional associations x
Media x
Government Local council
Other government departments x
Funders Funding body government x
Funding body non-government
3. Select one of the stakeholders/stakeholder groups you identified as relevant to your project in
Question 2. In the table below, identify the stakeholder/group and outline what you believe to be their
involvement with the project and then provide information on how you would engage with that
stakeholder/group.
Stakeholder/Group Involvement in project
(Approximately 25 words each)
Method of engagement
(Approximately 25 words each)
Management Board
They will ensure participants of
design Australia in context of
responsibility area and provide
awareness to sign on agreement
and to abide on Plan
International code of conduct
and to operate in Australia
working with children code of
conduct.
It would contribute to environment
where children are encouraged and
respected to discuss rights and
concerns.
Respond to child who is abused or
exploited in according to applicable
local procedure offices.

4. Project management. Your next step is to identify, in more detail, two of your project’s goals:
including their objectives, tasks and time frames.
Use the SMART principle for goal setting.
 Specific - Is the goal specific? As goals must be written on simplistic aspect and clearly
defined with what is going to be performed. Hence, it should be what, why, how to
accomplish its aim.
 Measurable - Is it measurable? There is need of identification for different observation
and feeling for attaining its goals. In simple words, breaking its goal in measurable
elements.
 Acceptable/attainable - Will you feel good about doing this? This measure will help in
figuring out its method for realising objective and goal towards it. The attainment of goal
must be stretched for making the feeling challenged.
 Realistic/relevant - Are you able to do this? In the similar context, goal could be attained
in realistic aspect with availability of time and resources.
 Timely / time-bound - Is there a deadline attached? Hence, it should be time bounded
with presence of finish and start time.
Complete the table below by identifying two project goals. Provide at least one objective for each goal.
Also provide two tasks related to the goal and include a proposed due date or time frame for each task.
Goal
(up to 25 words each)
Objective
(up to 25 words each)
Tasks
(up to 25 words each) Due Date/Time Frame
1. Availability of quality
child care
To reduce risk of child
abuse
1. Gathering data of
existing child care 20
2. Finding root level of
issue 10
2. Enhance families to build
relationship
To attain transparency
between family and
children
1. Educating families 15
2. Managing fund for
infrastructure 15
5. Task Chart. Using the goals identified in Question 4, create a Task Chart, such as a Gantt chart or
WBS (work breakdown structure) in the space below to visually display the project time frames for both
goals.
Task Name Duration Start Finish Predecessors WBS
Gathering data of existing
child care 20 days Mon 24-09-18 Fri 19-10-18 1
Finding root level of issue 10 days Mon 22-10-18 Fri 02-11-18 1 2
Educating families 15 days Mon 05-11-18 Fri 23-11-18 1,2 3
Managing fund for
infrastructure 15 days Mon 26-11-18 Fri 14-12-18 2,3 4
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