Background information A companys board of directors are responsible for maintaining good corporate governance. There are important policy and performance elements to these responsibilities. The board of directors is the guardian of fairness, transparency and accountability in all of the major financial and business dealings of the company, defending the interests of investors and wider stakeholders. Fly Me High Travels International launched its operations on 1 January in Australia under the name of Fly Me High Travels Australia. The agency specialises in providing cheap tickets to customers via its one national store located in Melbourne and an online store. It also deals in selling wholesale tickets to other agencies. The company has set the following KPIs for its operations: Increase total sales by 10% every month Advertising expenses should remain the same for next 6 months Wages and salaries to be decreased by 5% every quarter Online sales to be increased by 15% each month Open stores in all capital cities in Australia within the next 3 years You are the Chief Financial officer of the company. You are responsible for preparing fair and accurate financial documents that will present the current picture of the business to all relevant stakeholders. In the following task, you are required to analyse the given budget of the business, plan and prepare a report and present this to the directors in an important business meeting. Instructions to the student You are required to plan a report that will be presented to the directors of the company by the end of August to assist them in making further decisions on the business expansion and meeting business compliance requirements. What are the outcomes of the budgets for the first six months operation in Australia? Was the company able to achieve its KPIs? Why/why not? Comment on the cash flow of the business in general. What changes needs to be made and what impact do you hope the changes will make? Is the business complying with ATO requirements and reporting in a timely and an efficient manner? What appropriate recommendations would you make for meeting ATO and other legal requirements? Prepare a plan for lodging and meeting those requirements within the required timeframes. Based on all of the information you have reviewed what recommendations would you make to see an overall improvement of the financial process and internal controls systems of the business

TOTALTOTAL BUDGET Actual Fly High Travels Australia JANActualFEBActua MAR ActuaAPRActuaMAYActua JUNE Actual 8 30034,500 -105,300 Opening Cash Balance CASH IN (INCOME) Online Sales Store Sales Wholesale ticketing Other TOTAL CASH IN 139,000-225,900 45.00025.100 25001 | 1510 | 22,500 | 1,000 | 140,000 | 61,000 12.000 16,000 201,000 98,100 340,000127,800 AVAILABLE CASH BALANCE 49,000 38.100 51,100 21, 600 53,200 100 -58,900 66500 100 300 CASH OUT (EXPENSES] Advertising Bank Fee Lredit Lard Lharges nsurance Miscellanious expenses Wages and Salaries Team PD Sessions Accounting and legal Fees Rent Subscriptions Purchases Permits tilities Website Maintenance Maintenance 5,000 5,000 5,000 5.000 5,000 15,0005,000 5,000 500 15,000 2,500 5,00025,000 60,000 3.000 1,500 6.000 1,200 15,000 15,000 15,000 15,000 5,000 20,00015,000 20,000 15,000 20,000 15,000 30,000 90,000 120,000 3.000 9.000 3.000 1,500 4,800 300 6.000 3.000 1,500 7.200 1,200 4,800 4,500 3.600 1,500 15,000 1.200 6.500 6,000 3.400 TOTAL CASH OUT ENDING CASH BALANCE 177,400 261,300 600 5,600 20,700 11900 45 400 82 900 106.300 148 200 162,600389,100 TOTALTOTAL BUDGET Actual Fly High Travels Australia JANActualFEBActua MAR ActuaAPRActuaMAYActua JUNE Actual 8 30034,500 -105,300 Opening Cash Balance CASH IN (INCOME) Online Sales Store Sales Wholesale ticketing Other TOTAL CASH IN 139,000-225,900 45.00025.100 25001 | 1510 | 22,500 | 1,000 | 140,000 | 61,000 12.000 16,000 201,000 98,100 340,000127,800 AVAILABLE CASH BALANCE 49,000 38.100 51,100 21, 600 53,200 100 -58,900 66500 100 300 CASH OUT (EXPENSES] Advertising Bank Fee Lredit Lard Lharges nsurance Miscellanious expenses Wages and Salaries Team PD Sessions Accounting and legal Fees Rent Subscriptions Purchases Permits tilities Website Maintenance Maintenance 5,000 5,000 5,000 5.000 5,000 15,0005,000 5,000 500 15,000 2,500 5,00025,000 60,000 3.000 1,500 6.000 1,200 15,000 15,000 15,000 15,000 5,000 20,00015,000 20,000 15,000 20,000 15,000 30,000 90,000 120,000 3.000 9.000 3.000 1,500 4,800 300 6.000 3.000 1,500 7.200 1,200 4,800 4,500 3.600 1,500 15,000 1.200 6.500 6,000 3.400 TOTAL CASH OUT ENDING CASH BALANCE 177,400 261,300 600 5,600 20,700 11900 45 400 82 900 106.300 148 200 162,600389,100