Appendix A
You have been asked by the CEO of The Righteous Bean to implement a budget and report
the outcomes after implementation, in accordance with organisational and statutory
requirements.
1. Review the business credit card policy and procedures:
Use of Business Credit Card Policy
This policy provides guidelines for the issue and use of business credit cards.
Procedures
An employee will only be issued a credit card once the Credit Card Authorisation Form has been completed.
The business credit card can only be used for travel, authorised entertainment and purchases of small value
expenses or equipment up to the value of $5000.
No cash advances are to be taken using the business credit card unless authorised by an available person.
Where a business credit card is lost or stolen, then the owner of this card is to notify a supervisor who is
responsible for notifying the issuing agency and ensuring the card is cancelled.
The use of the business credit card is not to be used for personal expenses.
All holders of business credit cards are required to reconcile the monthly credit card statement to the expense
form, attach all receipts for payments made on the credit card and have the expense statement authorised by
anyone.
Upon completion and authorisation of the monthly expense statement, these documents are to be forwarded to the
finance department for payment of the credit card statement.
All business credit cards are to be returned to the business when the person is requested to by a supervisor within
a month or where they cease employment with the business.
1.1 Identify two (2) opportunities to misappropriate funds.
1. Unauthorized cash advances: since cash advances are not allowed without proper authorization,
an employee could potentially misuse the credit card by withdrawing cash for personal use and not
reporting it as a cash advance, there by misappropriating funds.
2. Falsifying expenses reports.: an employee could submit falsified or inflated expense report by
fabricating receipts or misrepresenting personal expenses as business related expenses, thereby
misappropriating funds.
1.2 Add an appropriate procedure to properly record all financial transactions.
To ensure accurate recording of all financial transactions and prevent misappropriation of funds, the
following procedure can be added:
Procedure for Financial Transaction Recording:
• Upon making any transaction using the business credit card, the cardholder must immediately obtain a
detailed receipt or invoice for the transaction. • The cardholder is responsible for accurately documenting
the purpose and details of each transaction on the expense form provided by the company.
• All receipts and invoices related to credit card transactions must be attached securely to the expense
form.
• The cardholder must review and reconcile the monthly credit card statement with the expense form,
ensuring that all transactions are accurately recorded and accounted for.
• Any discrepancies or irregularities identified during the reconciliation process must be reported to the
supervisor and the finance department immediately.
• The supervisor must review and verify the accuracy of the expense statement before authorizing it for
payment
• Upon authorization, the completed expense statement along with all supporting documents must be
submitted to the finance department for processing and payment.
• The finance department will maintain proper records of all credit card transactions and ensure compliance
with accounting standards and regulatory requirements.
• Regular audits may be conducted by the finance department to verify the accuracy and integrity of credit
card transactions and expense reporting.
By implementing this procedure, the organization can establish strict controls over credit card usage and
ensure that all financial transactions are properly recorded and monitored, reducing the risk of fund
misappropriation.
2. Review the spreadsheet with financial data.
2.1 Identify discrepancies between agreed and actual allocations (report the outcomes).
pay
It’s a discrepancies between agreed and actual allocation during jul – septemeber that premises
cost is not pay. Constantly also the lease were down from 10k$ to 9.8$ in the last semester,
compare with the report the outcomes is pretty low when is half of the year.
2.2 Maintain an audit trail by adding the following payments to the Actual Expenses sheet:
a) Office lease – paid $9,800 in July and September.
b) Gas – paid $45 in August.
c) Telephone – paid $200 in July, August and September.
Submit the revised spreadsheet with financial data as evidence for assessment.
3. Review the marketing proposal, procurement policy and budget.
Marketing proposal
This social media marketing proposal is created exclusively for use by The Righteous Bean.
1. EXECUTIVE SUMMARY
The following social media marketing proposal was uniquely crafted for The Righteous Bean. Our suggested social
media strategies and implementation procedures are based on the results of extensive analysis, study of social media
trends, and application of specifics unique to The Righteous Bean. We believe our proposal provides a complete
social media marketing strategy which will culminate in successful results for your business.
2. SITUATION ANALYSIS
According to our research, current trends in your business show a reduction in new business. We feel these trends are
significant in that they demonstrate a reduction in cash flow.
3. TARGET AUDIENCE
This strategy would establish and maintain engagement with new business clients.
4. STRATEGY AND TACTICS
The strategy would utilise platforms including Facebook, LinkedIn, Twitter, WordPress, Tumblr and Instagram. Daily
posts would create interest in The Righteous Bean.
5. IMPLEMENTATION
The timeframe for implementation would be one month including time for communication about the scope and
regular evaluations.
6. GOALS AND OUTLOOK
Upon implementation of the above social media marketing strategy, our analysis projects the following outcomes:
80% return on investment
net operating profit equal or more than 25% of AGI.
7. PLANS AND FEES
Prices to be negotiated up to $22,000.
8. PAYMENT AND CONDITIONS
Prior to a contractual agreement, proposal may be amended upon collaboration.
9. ACCEPTANCE
Your signature below indicates acceptance of this social media marketing proposal. Your initial payment per the
terms above will also represent acceptance of this proposal, and entrance into a contractual agreement with [YOUR
COMPANY].
[YOUR COMPANY]
Representative: [NAME], [TITLE]
[COMPANY ADDRESS] [COMPANY PHONE]
Signature: _______________________________ Date: ____________________________
[CLIENT COMPANY]
Representative: [NAME], [TITLE]
[CLIENT COMPANY ADDRESS] [CLIENT COMPANY PHONE]
Selected Social Media Plan: __________________________________
Signature: _____________________ Name: ____________________ Date: ______________
Procurement policy – risks
Identify and Address Risks
It is important to acknowledge any risk factors and offer a strategy or rebuttal to the identified
risk.
Potential risk Mitigation strategy
Specifications in the procurement documentation and the
Failure of the supplier to
project contract should carefully and clearly outline the
deliver the negotiated
required outcomes of the project. The successful
services
organisation must be able to prove that it can deliver these
outcomes.
Project risk log (initiated at the outset of the project) should
immediately identify any delivery problems to enable the
supplier to mitigate the problem through a rectification
strategy as soon as possible.
Communications strategy developed with the supplier should
specify that suppliers must immediately contact the owner
when a delivery problem is identified.
Specifications in the procurement documentation must
Failure of the supplier to
clearly outline the expected outcomes.
achieve the specified
social outcome of the The successful supplier must have provided a methodology
project
which will achieve the specified social outcome.
Project risk log (initiated at the outset of the project) should
immediately identify any delivery problems to enable the
supplier to mitigate the problem via a rectification strategy as
soon as possible.
Communications strategy developed with the supplier should
specify that suppliers must immediately contact the owner
when a delivery problem is identified.
There are insufficient During business case development, the owner should
suppliers to provide a undertake market research (including a Request for
service Information or an Expression of Interest) to ensure that there
are sufficient organisations in the market capable of
delivering the service.
If there are multiple organisations capable of undertaking the
project, a more targeted procurement process may be
undertaken (for example, a selective procurement).
Cost requirements must be clearly articulated in procurement
Project costs are
documentation. The successful supplier must have provided
exceeded
a clear breakdown in its costs to deliver the project and
these should be deemed by the council to be reasonable
and acceptable.
The provider must include a contingency cost (between 5%-
10% at discretion of the owner) in the business case to cover
small-scale cost overruns.
Project risk log (initiated at the outset of the project) should
immediately identify cost overruns and the communications
strategy developed with the supplier should specify that
suppliers must immediately contact the owner when a cost
overrun is identified.
No organisation should receive any communication about a
Issues affecting
potential social procurement project which other
competitive neutrality
organisations do not receive unless:
o this organisation can be proven to provide a unique
service, and
o an exemption to negotiate with the company providing
the unique service is secured.
Due diligence review of any potential supplier should be
Supplier insolvency
undertaken prior to the appointment of the supplier.
Procurement documentation must include the requirement
for suppliers to provide key information to prove their
financial solvency.
For larger projects, a detailed financial viability assessment
of the suppliers should be sought from a corporate advisory
consultant.
Budget – Social Media Marketing
Jan $4,000
Feb $4,000
Mar $4,000
Apr $4,000
May $7,000
June $7,000
Jul $4,000
Aug $4,000
Sep $4,000
Oct $4,000
Nov $4,000
Dec $4,000
3.1 Identify and document risks to ensure due diligence.
1. Impact Social Media Marketing Costs: The budget allocation for social media marketing remains
consistent for most months but increases in May and June. This could indicate potential spikes in
marketing costs during specific periods, possibly due to seasonal trends, promotional campaigns,
or events. Failure to anticipate and manage these fluctuations could lead to budget overruns or
ineffective resource allocation.
2. Inadequate Return Of Investment Monitoring: Without proper monitoring and evaluation
mechanisms in place, there is a risk of not accurately assessing the return on investment (ROI) of
social media marketing efforts. This lack of oversight may result in the inefficient allocation of
resources and an inability to optimize marketing strategies for maximum effectiveness.
3. Supplier Performance and Reliability: The success of social media marketing initiatives heavily relies
on the performance and reliability of external suppliers such as advertising agencies or social
media management firms. There is a risk of supplier failure to deliver the expected results within
the allocated budget, potentially leading to wasted resources and ineffective marketing campaigns.
4. Market Over demand and Competition: The social media landscape is highly dynamic, with
constantly evolving trends, algorithms, and competition. Failure to adapt marketing strategies to
changes in the market environment could result in diminished effectiveness and missed
opportunities to engage with target audiences.
3.2 Make two recommendations to ensure financial viability.
1. Implement Continuous Performance Monitoring: Establish a good and stable system for
monitoring the performance of social media marketing campaigns in real-time. This includes
tracking key performance indicators (KPIs) such as engagement rates, conversion rates, and Return.
Of investment. By closely monitoring campaign performance, adjustments can be made promptly
to optimize resource allocation and maximize the effectiveness of marketing efforts.
2. Diversify Supplier Portfolio: Instead of relying solely on a single supplier for social media marketing
services, consider diversifying the supplier portfolio. This involves engaging multiple suppliers or
agencies with complementary strengths and capabilities. Diversification mitigates the risk of
supplier failure or underperformance, ensuring continuity and reliability in marketing operations.
3.3 Evaluate the effectiveness of the procurement procedure.
1. Risk Identification: The document effectively identifies various potential risks associated with
procurement, such as supplier failure, project cost overruns, and issues affecting competitive
neutrality. This demonstrates a proactive approach to risk management, which is crucial for
ensuring successful procurement outcomes.
2. Mitigation Strategies: Each identified risk is accompanied by a mitigation strategy, outlining
specific actions to address and minimize the impact of the risk. These strategies include detailed
provisions in procurement documentation, project risk logs, communication protocols with
suppliers, and financial viability assessments. By having predefined strategies in place, the
organization can respond promptly and effectively to mitigate risks as they arise.
3. Emphasis on Accountability and Communication: The procurement procedure emphasizes
accountability and communication between the organization and its suppliers. Clear specifications
in procurement documentation, ongoing project risk monitoring, and established communication
channels with suppliers contribute to transparency and accountability throughout the procurement
process. This helps to foster trust and collaboration between parties involved in the procurement
process.
4. Financial Viability Assessment: The inclusion of a financial viability assessment for suppliers,
particularly for larger projects, demonstrates a commitment to ensuring the stability and reliability
of chosen suppliers. By conducting due diligence on supplier finances, the organization reduces the
risk of supplier insolvency and associated disruptions to procurement activities.
4. Review the budget you produced for the Project 1 assessment and the associated financial
data. This is the budget you produced for Project 1.
4.1 Revise the budget so it includes an amount for the marketing proposal, aligns with the business plan and
complies with organisational and statutory requirements.
Submit the revised budget as evidence for assessment.
Assessor declaration
✅ I hereby certify that Yuji has been assessed by me and that the assessment has been carried out
according to the required assessment procedures.
Student name Jose Fernando
Assessor name MD BASHIR UDDIN
Assessor signature
Date 05/06/2024
✅
Assessment outcome NS DNS Resubmission Y N
S
Feedback
You have successfully completed the project2 creating a budget for The
Righteous Bean involves outlining the expected income and expenses to ensure
the café's financial health and sustainability.
