ANANTH SITXFIN004 PROJECT NYC

SITXFIN004
Prepare and monitor budgets

Assessment - Project
ANANTH SIDDA MAC3769
Case Study
Scenario:
You are a project manager for Melbourne Events, an event management company.
You need to organise a charity program to raise fund for the Royal Children’s
Hospital. The event is planned to take place in Swanston Street, at Melbourne Town
Hall, a historic landmark of the city. The Royal Children’s Hospital wants a green-
themed event with entertainment, music and dance, along with a charity auction. The
event is planned to be held on the first Saturday in December, before Christmas and
they hope to sell 350 tickets.
As a project manager, you need to organise food and beverages, along with a master
of ceremonies, entertainment and music for the night. The charity will source all items
for the auction. The program preparation should start from the first week of August.
The goal is to conduct a successful event and collect at least 25% of the profit from
the event and the auction, for charity.
As part of the planning process, you must prepare a series of budgets to help achieve
these goals.
Part A
As a project manager, analyse and prepare the budget information as requested
below:
Macallan College is a trading name of Macallan College Pty Ltd. RTO No.: 41030 | ABN: 36 165 356 141 | CRICOS 03468F
Version Number: 1.1 Unit Code: SITXFIN004 Page 1 of 16
PR2.1. For the event, which budgets should be prepared to achieve the goal?
Mention the scope and nature of selected budgets. Record your answer using the MS
excel template provided on the LMS.
A budget should be prepared to achieve the following goals: GOOD
1. Food and beverage budget

2. Host budget
3. Entertainment and Music Budget
4. Ticket budget
5. staff budget
scope of the budget
• Receive specified profit (25%)
• Estimate expected revenue from all sources
• Provide high quality service in all parts of the organization
PR2.2. To prepare the budget, you are required to gather the necessary information.
Outline six (6) sources of data and the information these data sources will provide to
meet the organisation’s requirements. Fill in the template below, using the document
provided on LMS, with the information gathered. TRY AGAIN YOU NEED TO TALK
ABOUT SOURCES OF INFORMATION TO HELP YOU BUDGET FOR THIS
EVENT
Data / Information Data Sources
Historical From the historical data we get the information related to gross
information profits, margins, overhead such as electricity, rates,
maintenance, salaries.
Food and We can get the information related to food and beverage cost
beverage from the food and beverage manger or chef.
information
Entertainment We can collect the budget information related to entertainment
and music and music from the event manager
budget
Host budget The event manager will have all sort of information related to
host budget
Staff budget We can have the staff budget information from individual
departments/ event committee members.
Ticket budget We can collect information related to ticket budget form event
committee members.
PR2.3. Analyse three (3) internal and three (3) external factors that can impact on
the budget. List them and provide a brief description of the positive / negative impact
of each. Use the MS Excel template provided below on the LMS to write your
answers.
Factor Impact
Whether it's a large or small project, it's

important to consider the scope of your
Scope of the event (internal ) project. Also consider the permissible
costs involved and the impact on the
facility's bottom line.
A business or organization can be

hampered by its structure, organization,
Organizational structure (internal) or form of governance. Organizational
structure is essentially how work gets
done and the organization's mission is
divided among its employees.
An important aspect of success is the

knowledge, experience, and skills of a
company's employees. Therefore,
inexperienced workers and personnel in
Human resource (internal) need of training can impact your budget.
The number of working hours increases
by a certain amount, which can put a
strain on your budget.
Some social factors can also affect a

company's budget as an external factor.
Social factors (external) * Lifestyle changes can affect how people
spend their money.
* Demographic changes can also affect
internal budgets.
*Many factors can also affect population
changes within the environment, such as:
Decrease or increase in cost of living, etc.
Technological external influence Technical externalities can also affect

(external) business budgets.
* New technological breakthroughs can
suddenly push your company into the
background of a particular business type.
If your budget is closely tied to
technology, you must pay for the
acquisition and implementation of new
technology within your business budget
Political and legal guidelines can affect
your business in many ways. Some of
these factors are discussed below. Tax
development and adjustment is one of the
Political and legal factors (external) most important political and legal external
factors. As a company, we cannot
influence how much the state wants us to
pay in various taxes. When other taxes
are announced, they are expected to
follow the rules. When creating a budget,
the law should include taxes and other
changes. Certain political factors such as
regime change, and war also need to be
considered. War can often disrupt a
country's stock market and spending. This
external influence should also be
considered when budgeting, especially if
your country is at war or on the brink of
war.
Part B:
Conduct a discussion session with three (3) stakeholders (Finance manager, Food
and beverage manager, event committee chair) to obtain input on the possible
budget items. Instructor and two (2) students will act as the stakeholders for the
meeting. If there are insufficient student numbers, the trainer will assume multiple
roles. PR2.4. Share the information on the type of budget, external and internal
factors affecting the budget and obtain input on the ideas and/or any
concerns/missing areas to cover in the budget.
Gather the following input from the stakeholders:
• Finance manager: Key performance indicators to be used in the budget to
measure its performance.
• Food and beverage manager: How to account for significant price movements
for certain commodities, if any.
• Event committee chair: Objectives to be achieved.
Use the following template on the LMS to gather the input:
Suggestion / Input on budget planning Input by
• Monitor expenses and reduce expenses Finance manager
• Set achievable goals
• Communicate expectations and goals to stakeholders
• Allocate resources strategically and appropriately
supply strategy: can use multiple suppliers to ensure Food and beverage
competitive pricing, mitigate the impact of potential price manager
increases, or adopt a collaborative partnership approach.
You can have a fixed-price purchase agreement or an
agreement with a pre-agreed price increase cap.
Event committee chair
Set achievable goals

• Monitor spending and reduce spending
• Supervise all employees to ensure that they are doing
their job properly to meet requirements
• Ensure events run smoothly
Part C
For this part, use the MS Excel template from LMS for calculating and preparing the
budget.
Assume you have conducted research on the available vendors/suppliers and have
received the following information:
Expense item Quote ($) Comments
Venue 2,000.00 Main hall and stage
Stationery items / Postages 225.00
Communication 250.00
Event staff uniform 650.00 T-shirt for service staff in the event.
Hire audio-visual equipment 3,500.00 Projector, microphones, sound systems,

screens
Floral arrangements 4,000.00 35 x table centres, 8 x large stands
Stage and lighting hire 5,500.00 For stage and dance floor with colourful
spotlights
Food and service equipment 1,570.00 Food preparation and service equipment
lease
Master of ceremonies 900.00 6 hours including auction
Consultant fees 4,000.00
PR2.5. Prepare linen hire cost for the event using the MS Excel template on LMS.
The financial information from suppliers on the cost of linen for the event is provided
below. Prepare the linen hire cost based on the following information.
Linen type Price per item Quantity Cost
($) ($)
Round 8.50 35 297.5
tablecloths
Trestle 8.50 10 85
tablecloths
Table overlays 5.50 35 192.5
Napkins 0.70 350 245
Chair covers 3.00 350 1050
Total linen hire costs $1870
PR2.6. Prepare an expense budget using the MS Excel template on LMS.

Based on the quotes provided by suppliers and your calculations, prepare an
expense budget for the event.
TRY AGAIN
Expense budget
Expense item ($)
Venue 2000.00
Stationery items / Postages 225.00
Communication 250.00
Event staff uniform 650.00
Hire audio-visual equipment 3500.00
Floral arrangements 4000.00
Stage and lighting hire 5500.00
Food and service equipment lease 1570.00
Master of ceremonies 900.00
Consultant fees 4000.00
Linen hire 1870.00
Total expenses 24,465.00
PR2.7. Prepare a wage budget for the event using the MS Excel template on LMS.
For the event, all human resources required are managed by an HR firm. The
financial information from the company on wages is provided below.
Besides the listed wages, an extra $10 per hour penalty will need to be paid, for
anyone that worked more than 8 hours in a day, after the allotted time.
The staff are required for two days:
Friday – for room set-up and food preparation Saturday

– for the day of the event.
The required resources are listed in the table on the next page.
Job role No. of staff Rostered hours per person Pay rate per hour
Friday Saturday Weekday Weekend

($)
Cook 2 8 8 30.00 35.00
Kitchen 2 6 8 22.00 25.00
assistant
Kitchen hand 2 0 8 18.00 20.00

Waiters 5 8 8 20.00 25.00
Waiters 10 0 8 20.00 25.00
Bar attendant 2 4 6 20.00 25.00
Security 1 1 3 pm to 11 pm 3 pm to 11 pm 35.00 45.00
Security 2 1 11 am to 7 pm 6 pm to 2 am 35.00 45.00
Security 3 1 0 7 am to 3 pm 35.00 45.00
Supervisor 2 10 10 40.00 50.00
Based on the information provided, prepare a wage budget for the event using the
MS Excel template on LMS.
GOOD
Job role Wages Total wages
Friday ($) Saturday ($) $($)
Cook
8 8 $1040
Kitchen
assistant
6 8 $664
Kitchen hand
8 $320
Waiters
8 8 $1800
Waiters
8 $2000
Bar attendant
4 6 $460
Security 1
8 8 $640
Security 2
8 8
$640
Security 3
8
$360
Supervisor
10 10
$1880
Total event wages $9804
PR2.8 Prepare food and beverages cost.

For the food and beverages, assume the following:
• Ticket prices will include a four-course meal with wine, beer, soft drinks and
juices.
• Every meal caters for two (2) customers, except for the tapas appetiser, which
is a shared platter for each table.
• An extra 50 meal sets are required for staff and entertainers.
• Beverages include a variety of red and white wines to match each course,
bottled light and heavy beer, post-mix soft drinks and orange juice.
• Standard recipes have been costed for each course, and an individual cost
per serve determined.
Using the MS Excel template provided on the LMS, calculate the food costs,
including food cost per head, assuming 350 customers bought the tickets and
attended the charity ball. GOOD
Menu item Cost x 1 serve No. serves required Food cost
($) ($)
Tapas platter 6.75 2 per table x 35 tables

$472.5
Baby beetroot with aged balsamic 3.84 175
salad $672
Pan fried potato gnocchi, crispy bacon 2.60 175

pasta $455
Portuguese marinated chicken 5.27 200

$1054
Mustard and macadamia rack of lamb 6.22 200
$1244
Sticky date chocolate pudding 2.00 175
$350
Baileys tiramisu 1.95 175
$341.25
Tea/coffee 0.25 350
$87.5
Petits fours 0.35 350
$122.5
Total food costs
$4798.75
Food cost per head
$13.71
Using the MS Excel template provided on the LMS, calculate the beverage costs,
including beverage cost per head, assuming that demand is equal to the forecast
requirements given. GOOD
Beverage item Cost per item per Forecasted requirements Beverage cost
bottle/serve ($)
($)
Sparkling wine 14.52 60

$871.2
Sauvignon Blanc 15.07 55
$828.85
Chardonnay 14.21 60
$852.6
Botrytis Riesling 22.53 45
$1013.85
Merlot 8.80 50
$440
Shiraz 12.45 45
$560.25
Cabernet Sauvignon 15.01 55
$825.55
Light beer (750 ml) 3.40 50
$170
Hea vy beer (750 ml) 3.99 30
$119.7
Soft drink 0.20 400
$80
Juice 0.31 225
$69.75
Total beverage costs $5831.75
Beverage cost per head $16.66
PR2.9. Prepare draft event budgets using the MS excel template provided on the
LMS.
Based on the information provided below, prepare the event budget

The event committee has asked you to prepare two alternative revenue statement
budgets based on ticket prices of $100.00 and $200.00. They wish to determine the
most feasible and profitable alternative for their organisation.
From previous experience in projects, it has been identified that a specific percentage
of ticket sales revenue is spent on additional expenses, such as advertising, printing,
decorating the venue and entertainment for the event. These expenses need to be
included in the revenue statement budgets.
Additional expenses % of revenue
Advertising 1%
Printing 0.25%
Room decoration 3%
Entertainment 5%
Total 9.25%
Using the MS excel template on LMS, calculate the revenue for both ticket prices
No. of tickets Ticket price = $100.00 Ticket price = $200.00
350 35000 70000
Using the MS excel template on LMS, prepare alternative revenue statement budgets
using the information you have accumulated so far. TRY AGAIN
Alternative 1 % of Alternative 2 % of sales
sales
350 tix x $100 350 tix x $200
Sales
$35000 $70,000
Revenue from ticket sales $35000 $70,000
Cost of goods sold
Food cost
$4798.75 13.71 $4798.75 6.86
Beverage cost
$5831.75 16.66 $5831.75 8.33
Total cost of goods
$10,630.50 30.37 $10,630.50 15.19
Gross profit
$24369.50 69.63 $59369.50 84.81
Expenses
Labour costs
$8824 25.21 $8824 12.61
Venue
$2000 5.71 $2000 2.86
Stationery items /
Postages $225 0.64 $225 0.32
Communication
$250 0.71 $250 0.36
Event staff uniform
$650 1.86 $650 0.93
Hire audio-visual
equipment $3500 10 $3500 5
Floral arrangements
$4000 11.43 $4000 5.71
Stage and lighting hire
$5500 15.71 $5500 7.86
Food and service
equipment lease $1570 4.49 $1570 2.24
Master of ceremonies
$900 2.57 $900 1.29
Consultant fees 11.43
$4000 $4000 5.71
Linen hire
$1870 5.34 $1870 2.67
Advertising
$350 1 $700 1
Printing
$87.5 0.25 $175 0.25
Room decor 3
$1050 3 $2100
Entertainment 5
$1750 5 $3500
Total expenses 104.36 56.81
$36,526.50 $39764.00
Profit/loss -$12157.00 -34.73 $19605.50 28.01
Loss Profit
PR2.10. Using the information given in the previous scenario, including the prepared
budget statements, calculate the revenue amount required to achieve a 25% profit.
By analysing the net profit with a ticket price $190, we get a profit of
24.62%
I.e. revenue from ticket sales: 190*350=$66500
Total cost of goods= $10360.50
Gross profit= $56139.5
Total expenses cost= $39764.00
Profit= $16375.5 (24.62%)
In similar way If the ticket price is $191, we get a profit of 25.019%. so, to
get a profit of 25% we can have the ticket price for $190.85
I.e. revenue from ticket sales: 191*350=$66850
Total cost of goods= $10360.50
Gross profit= $56489.5
Total expenses cost= $39764.00
Profit= $16725.5 (25.019%)
Using this revenue figure, calculate the ticket price required to be charged in order to
generate the 25% profit assuming 350 tickets will be sold.
No. of tickets sold Ticket price = $190.85
350 $66797.5
PR2.11. Using the MS Excel template provided on LMS, and the ticket price
calculated in PR2.10, prepare an alternative revenue statement budget using the
information you have accumulated so far.
Amount ($) % of sales
Sales
Revenue from ticket sales $66797.5
Cost of goods sold
Food cost
$4798.75 7.18
Beverage cost
$5831.75 8.73
Total cost of goods
$10,630.50 15.91
Gross profit
$56167.00 84.25
Expenses
Labour costs
$8824 13.21
Venue
$2000 2.99
Stationery items / Postages
$225 0.34
Communication
$250 0.37
Event staff uniform
$650 0.97
Hire audio-visual
equipment $3500 5.24
Floral arrangements
$4000 5.99
Stage and lighting hire
$5500 8.23
Food and service
equipment lease $1570 2.35
Master of ceremonies
$900 1.35
Consultant fees
$4000 5.99
Linen hire
$1870 2.80
Advertising
$667.975 1
Printing
$166.99375 0.25
Room decor
$2003.925 3
Entertainment
$3339.875 5
Total expenses 59.09
$39467.77
Profit/loss $16699.23 25.00
Part D PLEASE DO THIS
PR2.12. Circulate the draft budget to the event committee for input.
Prepare an email with the detailed draft budget, including two alternatives and
breakeven price, seeking input from the relevant stakeholders (those who gave input
in 2.4). The email should be 150-200 words long.
Save a copy of the email and submit this to your assessor.

To- Charlie.c@macallan.edu.au
From- reddyananth3@gmail.com
Subject – Drafted budget
Dear Charlie,
I hope you are doing well. According to information of all expenses I am going to
share a budget with you for different ticket prices which is listed below.
For ticket price $100 we got a loss of which is -$12157.00. Then we changed the
price of the ticket from $100 to $200 and we came in the total profit of which is
$19605.50.
Then to get a 25% profit, we tried 2 alternative prices i.e. $190 and $191. From the
calculations of these alternative prices, we assume the ticket price as $190.85 to get
a profit of 25%. This is all the budget revenue from the ticket sale price. I hope you
find it easy to understand. If you have any queries about this budget, please free to
email me.
Thankyou
King regards
Ananth Sidda
END OF ASSESSMENT

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SITXFIN004

Prepare and monitor budgets

A budget should be prepared to achieve the following goals: GOOD

1. Food and beverage budget

Whether it's a large or small project, it's

A business or organization can be

An important aspect of success is the

Some social factors can also affect a

Technological external influence Technical externalities can also affect

Event committee chair

Set achievable goals

Venue 2,000.00 Main hall and stage

Stationery items / Postages 225.00

Hire audio-visual equipment 3,500.00 Projector, microphones, sound systems,

Floral arrangements 4,000.00 35 x table centres, 8 x large stands

Master of ceremonies 900.00 6 hours including auction

Consultant fees 4,000.00

Linen type Price per item Quantity Cost

Table overlays 5.50 35 192.5

Napkins 0.70 350 245

Chair covers 3.00 350 1050

Total linen hire costs $1870

PR2.6. Prepare an expense budget using the MS Excel template on LMS.

Expense item ($)

Stationery items / Postages 225.00

Event staff uniform 650.00

Hire audio-visual equipment 3500.00

Floral arrangements 4000.00

Stage and lighting hire 5500.00

Food and service equipment lease 1570.00

Master of ceremonies 900.00

Linen hire 1870.00

Total expenses 24,465.00

Friday – for room set-up and food preparation Saturday

Friday Saturday Weekday Weekend

Kitchen hand 2 0 8 18.00 20.00

Supervisor 2 10 10 40.00 50.00

Friday ($) Saturday ($) $($)

PR2.8 Prepare food and beverages cost.

Tapas platter 6.75 2 per table x 35 tables

Pan fried potato gnocchi, crispy bacon 2.60 175

Portuguese marinated chicken 5.27 200

Sparkling wine 14.52 60

Beverage cost per head $16.66

Based on the information provided below, prepare the event budget

Additional expenses % of revenue

350 35000 70000

350 tix x $100 350 tix x $200

No. of tickets sold Ticket price = $190.85

Revenue from ticket sales $66797.5

Cost of goods sold

Part D PLEASE DO THIS

Save a copy of the email and submit this to your assessor.

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