$2.$ Analyse the variance of the income and expenses categories from years one to three and $2($b$)$ Business unit reporting $-$ operating channel $2($b$)$ Business unit reporting $-$ operating channel $3$ Personnel costs

Personnel expenditure includes defined contribution plan expense of $$5\mathrm{.}7m(2019$:$$4\mathrm{.}9m).$

$4$ Commitments for expenditure $8$ Property, plant and equipment $2($b$)$ Business unit reporting $-$ operating channel$2($c$)$Business unit information $-$ regional divisions

determine whether the variance is $$favourable$$ or $$unfavourable$.$

$(12$ Marks$)$

$3.$ From the schedule completed above $(2),$ identify four variances you would suggest that

management investigate further. $(12$Marks$)$

$4.$ Then, for each of the variances you identified above $(3),$ explain why you have chosen it$,$

AND provide a possible reason why the variance may have occurred. $(24$ Marks$)$

$5.$ Prepare a cash budget for the next financial year, breaking it into monthly income and

expenditure. $($Excel spreadsheet template available on Moodle$)(40$ Marks$)$

You will need to best estimate $($Hint: you can use changes in the last two accounting

years as references for your estimation$)$ when some income and expenditure are much

higher or less in some months. Please state your assumptions for the estimates made.

You can use applicable conditions $($assumptions$)$ to prepare your budget based on the

information provided in your selected charity, OR unless conditions are not provided inyour

selected charity, you can use hypothetical conditions as provided below for an example.

Conditions:

$-$ All accounts for any given month are paid the following month $(30$ days from invoice$)$

$-$ The starting amount forthe financial year is cash in the bank accounts, not including

term deposits or money tied up in investments

$-$ Donations are expected to be paid over $12$ months $$ the first quarter $+5\%$ of the

previous year$$s yearly average, the second quarter $+10\%$ of the previous year$$s

yearly average, the third quarter $+12\mathrm{.}5\%$ of the previous year$$s yearly average, the

fourth quarter $+15\%$ of the previous year$$s yearly average

$-$ Other revenues increased by $4\%$

$-$ Salary increased by $6\%$

$-$ Goods & Services purchased increased by $5\%$

$-$ No additional capitals and debts are raised. Also, no debts are paid during the year.

$-$ No additional assets are purchased or disposed of during the year. charity name is St John Newzealand