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.

 1.2 Add an appropriate procedure to properly record all financial transactions.

2. Review the spreadsheet with financial data.

2.1 Identify discrepancies between agreed and actual allocations (report the outcomes).
 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 project

Failure of the supplier to contract should carefully and clearly outline the required
deliver the negotiated
outcomes of the project. The successful organisation must be able
services 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 clearly

Failure of the supplier to outline the expected outcomes.
achieve the specified social  The successful supplier must have provided a methodology which
outcome of the project 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 undertake
suppliers to provide a market research (including a Request for Information or an
service 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 exceeded documentation. The successful supplier must have provided 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 competitive potential social procurement project which other organisations do
not receive unless:
neutrality
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.

3.2 Make two recommendations to ensure financial viability.

3.3 Evaluate the effectiveness of the procurement procedure.

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.