Examine and analyse a selected budget within your organisation

This task requires you to examine and analyse a selected budget within your organisation (or business unit) to draw conclusions and recommendations regarding its effectiveness as a mechanism for monitoring costs and performance within your organisation.

Examine and analyse a selected budget within your organisation

This task requires you to examine and analyse a selected budget within your organisation (or business unit) to draw conclusions and recommendations regarding its effectiveness as a mechanism for monitoring costs and performance within your organisation.

As part of this examination you are require d to analyse the cost elements within the budget so as to understand the cost structure of the organisation (or business unit) and key factors influencing it.

Instructions:

1. Firstly, Select a budget from your work unit, department or the whole organisation, and develop an understanding of the budget composition, including key cost (and revenue) elements and the factors that drive those elements.
In addition, develop an understanding of the preparation and the monitoring process for this budget. You may wish to meet with the individuals who are responsible for preparing, authorising, managing or implementing the budget and /or access relevant organisational documentation.

2. Secondly, Prepare a report in which you describe, analyse and critique the budget preparation and monitoring process.
In your discussion, identify any pitfalls associate d with the budget process. Also, actions which you recommend could be taken to improve the either the budget process or performance against the budget.
Also comment on the cost structure and any recommendations you may have in relation to it.

In the discussion and analysis of the chosen budget, ensure that you include a discussion of the following aspects:

1. Also, How the budget aligns to broader organisational planning, strategies and goals.

2. Secondly, The budget development process, including; timing and timeframes, key stakeholders involved, signoffs, tools and systems used, communications.

3. Thirdly, The key cost elements (and revenues) in the budget. In discussing these, describe whether the key costs elements and revenues are regard ed as fixed or variable, and what factors ‘drive’ them.

4. Further, Any indirect costs that are allocate d into this budget and on what basis the allocation is done.

5. Additionally, Reflection on the costs and the cost structure reflected in the budget and the implications of this structure in cost management.

6. Further, How information is gather ed to support the budget and budget assumptions, including any costing models or costing systems that are use to generate information for the budget.

7. Besides, How performance against the budget is measured and monitored.

8. Lastly, Consideration of how the use of data analytics could impact the budget development or monitoring processes.