Financial Data Template Report AT2.4-1

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Module 4 - Project Task 2.4 1 Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 1 of 14

2 CONTENTS Introduction .............................................. 3 Describe your scenario .............................. 3 Calculate the year-end totals and the quarterly profit achieved in year 1 4 Table 1 – Quarterly and year end profit ............................................................... 4 Calculate the minimum average quarterly targets that needed to be met to achieve the results forecasted ................................ 4 Compare the budget forecast to the actual expenditure 5 Identify what the actual vs. forecasted targets were ........................................... 5 Identify the productivity targets for project production and how these compare with the actual productivity achieved .................................................................. 6 Identify any underperformance in the business based on the comparison between the forecast and actuals ........................................................................ 7 Explain the cause(s) of any difference(s) that may have occurred ........................ 8 Provide a recommendation to ensure forecast targets are met in future. Ensure you advise of any resource requirements necessary to deliver on recommendation ................................................................................................. 9 Conclusion ......................................................................................................... 10 Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 2 of 14

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3 Assessment Report - Submission details Participant Name: ZONGWEI WANG Topic: [ Enter topic here] Unit Code & Name: [ UNIT CODE] – [Unit title] Trainer/Assessor Name: Submission date: ____ / ____ / ____ Work submitted: q q Declaration: In submitting this work I declare that no part of any assessment I submit has been copied from another person’s work, except where clearly noted on documents or work submitted. I declare that no part of any assessment I submit will have been written for me by another person. I understand that plagiarism is a serious offence that may lead to disciplinary action. Participant Signature: (Insert Name) Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 3 of 14

4 Introduction Report Written By: Date: Project Details:  Describe your scenario Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 4 of 14

5 Calculate the year-end totals and the quarterly profit achieved in year 1 Table 1 – Quarterly and year end profit Quarter (month end) March June September December Year-end total Sales-New 1.2 1.3 1.2 1.3 5 Sales- Renovation 1.5 1.5 1.5 1.5 6 Sales $745,050 $749,399 $761,020 $772,969 $3,028,438 COGS $616,240 $597,255 $602,697 $611,946 $2,428,138 Expenses $134,506 $141,656 $127,659 $122,656 $526,477 Profit $73,823 Calculate the minimum average quarterly targets that needed to be met to achieve the results forecasted Table 2 – Quarterly forecast calculations Finances Forecast (Annual) Minimum quarterly average required to meet forecast targets Sales Units New 5 1.25 Sales Units Reno. 6 1.5 Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 5 of 14

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6 Sales $ 3,037,000 $759,250 COGS $ 2,429,600 $607,400 Expenses $ 515,800 $128,950 Profit $ 91,600 22,900 Compare the budget forecast to the actual expenditure Identify what the actual vs. forecasted targets were  Total Budget Forecast  Breakdown of forecasted budget by categories (e.g., labor, materials, overhead costs, etc.)  Actual Expenditure:   Total Actual Expenditure  Breakdown of actual expenditure by the same categories as in the budget forecast With this information, we could analyze the differences between the forecasted and actual expenditures, and identify the specific targets that were met or missed. Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 6 of 14

7 Identify the productivity targets for project production and how these compare with the actual productivity achieved  Productivity Targets:   1. Construction Timeline: The target may be to complete a certain project within a specific timeframe, such as completing a residential building within 12 months.  2. Labor Efficiency: The target might involve completing a specific amount of work (e.g., square footage of construction, number of floors) with a set number of labor hours.  3. Resource Allocation: The target could involve optimal utilization of resources, like achieving a certain amount of construction using a predefined quantity of materials.  4. Cost Control: The target might include staying within a predetermined budget, ensuring that costs for labor, materials, and other expenses don't exceed a certain amount.  Compare these targets with the actual productivity achieved:   1. Construction Timeline: Compare the actual time taken to complete the project with the target timeframe. If the project was completed earlier, the company exceeded its productivity target; if it took longer, the target was not met.  2. Labor Efficiency: Compare the actual amount of work completed (e.g., square footage, floors) with the labor hours invested. If the company achieved more work within the same or fewer labor hours, the productivity target was likely exceeded.  3. Resource Allocation: Compare the actual usage of materials and resources with the initial plan. If the company used fewer resources to complete the same amount of work, it likely met or exceeded the target. 4. Cost Control: Compare the actual costs incurred during the project with the budgeted amounts. If the Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 7 of 14

8 company spent less than the budget, it met its cost control target. Identify any underperformance in the business based on the comparison between the forecast and actuals. Here's a general approach to identifying underperformance: 1. Revenue and Sales: Compare the forecasted revenue with the actual revenue generated. If the actual revenue is consistently lower than the forecast, it could indicate issues with sales, customer acquisition, or pricing strategies. 2. Cost of Goods Sold (COGS) and Gross Profit: Analyze the forecasted COGS and compare it with the actual COGS. A higher-than-expected COGS could lead to lower gross profit margins, suggesting possible inefficiencies in procurement, production, or materials management. 3. Operating Expenses: Compare forecasted operating expenses (such as salaries, marketing, administrative costs) with actual expenses. Significant deviations could highlight overspending or unexpected cost increases. 4. Profit Margins: Calculate the difference between the forecasted and actual gross and net profit margins. Declining profit margins could indicate issues with cost control or revenue generation. 5. Profit Margins: Calculate the difference between the forecasted and actual gross and net profit margins. Declining profit margins could indicate issues with cost control or revenue generation. 6. Cash Flow: Examine the forecasted cash flow and compare it to the actual cash flow. Negative deviations could signify problems in managing cash inflows and outflows. 7. Customer Satisfaction: If applicable, compare forecasted customer satisfaction scores with actual scores. Lower-than-expected scores could suggest issues with project quality, communication, or customer service. Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 8 of 14

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9 8. Debt and Financial Ratios: Review forecasted and actual debt levels, as well as key financial ratios like debt-to-equity ratio or current ratio. Deterioration in these ratios could signal financial strain. 9. Risk Assessment: Identify external factors like changes in market conditions, regulatory issues, or unexpected events that might have affected performance. Explain the cause(s) of any difference(s) that may have occurred  Scope Changes: If the scope of a construction project changes during its execution, it can lead to additional costs that were not initially accounted for in the budget forecast. Scope changes might include design alterations, client-requested modifications, or unexpected site conditions.   Material Costs: Fluctuations in the cost of construction materials, such as lumber, steel, or concrete, can significantly impact a project's budget. Sudden price increases or supply chain disruptions can lead to higher actual expenditures than what was initially forecasted.   Labor Costs: Labor costs can vary due to factors like labor market conditions, availability of skilled workers, and changes in wage rates. If labor costs are higher than expected, it can contribute to a difference between forecasted and actual expenditures.   Unforeseen Site Conditions: During construction, unexpected site conditions like poor soil quality, hidden utilities, or environmental issues can arise. Dealing with these conditions can lead to additional costs that were not accounted for in the initial forecast.   Weather Delays: Inclement weather can cause construction delays and increase project costs. Delays might lead to extended labor expenses, equipment rental costs, and other unanticipated expenses.   Regulatory Changes: Changes in building codes, permits, or other regulatory requirements can lead to additional expenses if adjustments need to be made to the project to comply with new standards.   Subcontractor Issues: If subcontractors are involved in the project, delays, disputes, or changes in their scope of work can lead to increased costs. Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 9 of 14

10   Inaccurate Estimates: If the initial budget forecast was based on inaccurate or incomplete estimates of quantities, costs, or resources required, the actual expenditure may exceed the forecasted amount.   Project Management and Communication: Inefficient project management, poor communication, and coordination issues among stakeholders can lead to delays, rework, and additional costs.   Economic Factors: Changes in the overall economic environment, such as inflation or fluctuations in interest rates, can impact construction costs.   Currency Fluctuations: If the company is working on international projects or sourcing materials from abroad, currency fluctuations can affect costs.   Risk Management: Some contingencies and risks might not have been adequately accounted for in the budget forecast, leading to unexpected expenses.  Contractual Issues: Disputes with clients, suppliers, or other parties can result in changes to the project scope or unexpected costs. Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 10 of 14

11 Provide a recommendation to ensure forecast targets are met in future. Ensure you advise of any resource requirements necessary to deliver on recommendation Recommendation: Implement Robust Project Management and Risk Assessment  Comprehensive Project Planning: Develop a thorough project planning process that includes detailed cost estimation, resource allocation, and timeline projections for each project. This will help create a more accurate forecast by accounting for potential challenges and delays.  Experienced Project Managers: Assign experienced project managers to oversee each project. Their expertise will be vital in making accurate forecasts and adjusting plans as necessary to meet targets.  Risk Assessment and Mitigation: Conduct a detailed risk assessment for each project. Identify potential risks that could impact budget and timeline, such as material price fluctuations, regulatory changes, or weather- related delays. Develop mitigation strategies to minimize the impact of these risks.  Contingency Budget: Allocate a portion of the budget as a contingency fund to account for unforeseen expenses. This will provide a buffer against unexpected costs and prevent overruns.  Regular Performance Reviews: Establish a regular review process where the actual progress and expenditures are compared against the forecasted targets. This will help identify any deviations early on and allow for corrective actions to be taken.  Data-Driven Analysis: Utilize project management software or tools that provide real-time updates on project Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 11 of 14

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12 status, expenses, and resource utilization. This data-driven approach will enable quicker decision-making and adjustments as needed. Conclusion It's important for a building company to regularly monitor and update their budget forecasts, consider potential risks, and have contingency plans in place to mitigate the impact of unforeseen factors that can lead to differences between budget forecasts and actual expenditures. Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 12 of 14

13 Builders Academy Australia | RTO Code 21583 | CRICOS Code 03760B © House of Learning Pty Ltd Financial Data Template v1.0| 28.02.2022| Page 13 of 14