Task 1

Complete the Appendix 1 provided. Based on that, Complete the budget report below identifying any under or over performances, the actual and likely reasons for these.

	Date	Budget Performance/Area	Actual	Variance	Reason	Discussion with supervisor	Action
Budget CycleStarts
Week 2
Week 4
Week 6
Week 8
Week 10
Week 12
Budget CycleEnd

Budget Forecast SITXFIN009 Manage finance within a budget
Food Sales -D/I	Food Sales T/A	Bev Sales D/I	Bev Sales T/A	Bev Sales	Total	Expenses	Food Purchases	Bev Purch D/I	Bev Purch T/A	Wages	Superannuation	Rent	Other	Total	Net Profit
Week 1	$65,000.00	$20,000.00	$10,000.00	$5,000.00	$100,000.00	Week 1	$25,000.00	$4,500.00	$2,000.00	$35,000.00	$3,500.00	$8,666.00	$8,000.00	$86,666.00	$92,000.00
Week 2	$82,000.00	$20,000.00	$15,000.00	$8,000.00	$125,000.00	Week 2	$30,000.00	$6,000.00	$2,500.00	$45,000.00	$4,500.00	$8,666.00	$10,000.00	$106,666.00	$18,334.00
Week 3	$95,000.00	$25,000.00	$20,000.00	$6,000.00	$146,000.00	Week 3	$35,000.00	$6,500.00	$3,000.00	$55,000.00	$5,500.00	$8,666.00	$15,000.00	$128,666.00	$17,334.00
Week 4	$110,000.00	$25,000.00	$20,000.00	$8,000.00	$163,000.00	Week 4	$40,000.00	$8,000.00	$3,000.00	$60,000.00	$6,000.00	$8,666.00	$13,500.00	$139,166.00	$23,834.00
Week 5	$75,000.00	$23,000.00	$15,000.00	$7,000.00	$120,000.00	Week 5	$30,000.00	$5,000.00	$2,000.00	$45,000.00	$4,500.00	$8,666.00	$10,000.00	$105,166.00	$14,834.00
Week 6	$75,000.00	$20,000.00	$12,000.00	$5,000.00	$112,000.00	Week 6	$30,000.00	$5,000.00	$2,000.00	$42,000.00	$4,200.00	$8,666.00	$9,500.00	$101,366.00	$10,634.00
Week 7	$120,000.00	$35,000.00	$20,000.00	$8,000.00	$183,000.00	Week 7	$45,000.00	$9,000.00	$3,000.00	$65,000.00	$6,500.00	$8,666.00	$15,000.00	$152,166.00	$30,834.00
Week 8	$95,000.00	$25,000.00	$15,000.00	$7,000.00	$142,000.00	Week 8	$35,000.00	$7,000.00	$3,000.00	$55,000.00	$5,500.00	$8,666.00	$12,000.00	$126,166.00	$15,834.00
Week 9	$80,000.00	$25,000.00	$15,000.00	$5,000.00	$125,000.00	Week 9	$33,000.00	$6,000.00	$2,500.00	$50,000.00	$5,000.00	$8,666.00	$11,000.00	$116,166.00	$8,834.00
Week 10	$85,000.00	$30,000.00	$20,000.00	$6,000.00	$141,000.00	Week 10	$35,000.00	$6,500.00	$2,500.00	$52,000.00	$5,200.00	$8,666.00	$11,000.00	$120,866.00	$20,134.00
Week 11	$100,000.00	$30,000.00	$20,000.00	$6,000.00	$156,000.00	Week 11	$35,000.00	$6,500.00	$3,000.00	$55,000.00	$5,500.00	$9,000.00	$12,000.00	$126,000.00	$30,000.00
Week 12	$70,000.00	$25,000.00	$15,000.00	$5,000.00	$115,000.00	Week 12	$30,000.00	$5,000.00	$2,500.00	$42,000.00	$4,200.00	$9,000.00	$10,000.00	$102,700.00	$12,300.00
Total	$1,052,000.00	$303,000.00	$197,000.00	$76,000.00	$1,628,000.00		$403,000.00	$75,000.00	$31,000.00	$601,000.00	$60,100.00	$104,660.00	$137,000.00	$1,411,760.00	$294,906.00

Actual Budget SITXFIN009 Manage finance within a budget
Income	Food Sales -D/I	Food Sales T/A	Bev Sales D/I	Bev Sales T/A	Total	Expenses	Food Purchases	Bev Purch D/I	Bev Purch T/A	Wages	10% Superannuation	Rent	Other	Total	Net Profit
Week 1	$ 62,400.00	$ 17,472.00	$ 11,232.00	$ 4,992.00	$ 96,096.00	Week 1	$ 24,000.00	$ 4,488.00	$ 1,794.00	$ 36,516.00	$ 3,651.60	$ 8,666.00	$ 8,100.00	$ 87,215.60	$ 8,880.40
Week 2	$ 83,200.00	$ 23,296.00	$ 14,476.00	$ 6,656.00	$ 127,628.00	Week 2	$ 32,000.00	$ 5,984.00	$ 2,392.00	$ 48,688.00	$ 4,868.80	$ 8,666.00	$ 10,800.00	$ 113,398.80	$ 14,229.20
Week 3	$ 93,600.00	$ 26,208.00	$ 16,848.00	$ 7,488.00	$ 144,144.00	Week 3	$ 36,000.00	$ 6,732.00	$ 2,691.00	$ 54,774.00	$ 5,477.40	$ 8,666.00	$ 12,150.00	$ 126,490.40	$ 17,653.60
Week 4	$ 104,000.00	$ 29,120.00	$ 18,720.00	$ 8,320.00	$ 160,160.00	Week 4	$ 40,000.00	$ 7,480.00	$ 2,990.00	$ 60,860.00	$ 6,086.00	$ 8,666.00	$ 13,500.00	$ 139,582.00	$ 20,578.00
Week 5	$ 78,000.00	$ 21,840.00	$ 14,040.00	$ 6,240.00	$ 120,120.00	Week 5	$ 30,000.00	$ 5,610.00	$ 2,242.00	$ 45,645.00	$ 4,564.50	$ 8,666.00	$ 10,125.00	$ 106,852.50	$ 13,267.50
Week 6	$ 72,800.00	$ 20,384.00	$ 13,104.00	$ 5,824.00	$ 112,112.00	Week 6	$ 28,000.00	$ 5,236.00	$ 2,093.00	$ 42,602.00	$ 4,260.20	$ 8,666.00	$ 9,450.00	$ 100,307.20	$ 11,804.80
Week 7	$ 114,400.00	$ 32,032.00	$ 20,592.00	$ 9,152.00	$ 176,176.00	Week 7	$ 44,000.00	$ 8,228.00	$ 3,289.00	$ 66,946.00	$ 6,694.60	$ 8,666.00	$ 14,850.00	$ 152,673.60	$ 23,502.40
Week 8	$ 93,600.00	$ 26,208.00	$ 16,848.00	$ 7,488.00	$ 144,144.00	Week 8	$ 36,000.00	$ 6,732.00	$ 2,691.00	$ 54,774.00	$ 5,477.40	$ 8,666.00	$ 12,150.00	$ 126,490.40	$ 17,653.60
Week 9	$ 83,200.00	$ 23,296.00	$ 14,476.00	$ 6,656.00	$ 127,628.00	Week 9	$ 32,000.00	$ 5,984.00	$ 2,392.00	$ 48,688.00	$ 4,868.80	$ 8,666.00	$ 10,800.00	$ 113,398.80	$ 14,229.20
Week 10	$ 88,400.00	$ 24,752.00	$ 15,912.00	$ 7,072.00	$ 136,136.00	Week 10	$ 34,000.00	$ 6,358.00	$ 2,541.00	$ 51,651.00	$ 5,165.10	$ 8,666.00	$ 11,475.00	$ 119,856.10	$ 16,279.90
Week 11	$ 93,600.00	$ 26,208.00	$ 16,848.00	$ 7,488.00	$ 144,144.00	Week 11	$ 36,000.00	$ 6,732.00	$ 2,609.00	$ 54,774.00	$ 5,477.40	$ 8,666.00	$ 12,150.00	$ 126,408.40	$ 17,735.60
Week 12	$ 72,800.00	$ 20,384.00	$ 13,104.00	$ 5,824.00	$ 112,112.00	Week 12	$ 28,000.00	$ 5,236.00	$ 2,093.00	$ 42,602.00	$ 4,260.20	$ 8,666.00	$ 9,450.00	$ 100,307.20	$ 11,804.80
Total	$ 1,040,000.00	$ 291,200.00	$ 186,200.00	$ 83,200.00	$ 1,600,600.00		$ 400,000.00	$ 74,800.00	$ 29,817.00	$ 608,520.00	$ 60,852.00	$ 103,992.00	$ 135,000.00	$ 1,412,981.00	$ 187,619.00

Task 2

You have identified some key underperformance in the budget cycle above.

Now, you are required to report 2 inconsistencies in your budget that cause a great impact in your variance report.

1. evaluation of staffing and rostering requirements
2. sourcing new suppliers

Draft an Email to senior management with the details below for each of the main 2 issues above.

1. Nature of the problem
2. Describe the desired outcome
3. Explain what would be a different approach to investigate this issue
4. Define and communicate advantages and disadvantages of different approaches
5. Impact to customer service levels with these new approaches
6. 2 Recommendations to correct the issues

	Email report to Senior Management