Question:
Credit and Collection Make an Insight or recommendation The ABC Bank gave XY's Case to Z recovery agent, along with other overdue loans for recovery. The Z recovery agent called XY a couple of times and also visited him at his residence. As XY was not able to repay the amount in default, Z used abusive and harsh languages in front of XY's wife and daughters to make recovery. During one of the visits to XY's house, Z and his colleagues took away forcibly some of the things that were available in XY's house in front of his wife and daughters and also used threatening language for payment of the dues. XY felt very much humiliated and also depressed. Being unable to repay the dues. XY committed suicide. He left a suicide note, blaming Z for harassing him endlessly. Mentioned the abuses he had suffered at the hands of Z before his wife and daughters. Also mentioned the threat Z gave that he would suffer dire consequences if he failed to repay the overdue amount. Following the suicide death of XY, the local police arrested Z and his colleagues (who used to accompany Z during his visits to XY's house) on charges of abetment of suicide. A case was also filed against the ABC Bank, which has to pay an ex-gratia payment of Rs.20 lakhs to the deceased's family. The incident has also been publishing in the press and has damaged the Bank's reputation in public eye, at least for the time being.
1. As a project, for your organisation (or any of your preferred organisation) manage and monitor producing budget requirements, including the following: 2 Evidence of your financial skills working with budgets and financial planning, including relevant principles and techniques O The key requirements of financial record keeping and auditing, relevant legislation and current requirements of the Australian Taxation Office Working with and supporting your team, assuming you have a team for the project @ Produce a final budget(s) and financial plan which includes recommendations for presenting to the appropriate senior person(s) in your organisation. 2. Prepare a report discussing your budget(s) and financial plan for presenting to the appropriate senior person(s), with the aim of reviewing and making recommendations for improvements. 3. Create a draft contingency plan for your financial management system. 4. How would you communicate to your team members the relevant details of current budget/financial plans for carrying out work tasks, if you need to negotiate further changes to the budget/plans? Ensure this is done with the relevant person(s). 5. For your organisation's financial planning requirements produce the following: ] A flow chart to show how you review and evaluate financial management processes _ A mind map to outline the planning approaches for financial management. 6. Provide information and evidence of monitoring processes that you would use at your place or work (or your preferred organisation), to ensure finances and budget are meeting their targets. Expert AnswerAssume that you have the basics of financial record keeping down pat. You have a good handle on your personal cash flow and other day-to-day issues, such as expenses (i.e. gas, daycare, groceries, etc.) In some cases, you may need to undertake a fairly detailed financial analysis of your personal financial position because you are to purchase an item wherein you will need a loan (i.e. new car, home improvements, start a business). . How will you determine if you are in the position to financial take on my debt? . What items/documents will you review to determine your financial position? . What tools will you use to analyze and understand your financial position? Please answer all prompts to ensure you get full credit and make sure to support your answer.The Importance of Good Record Keeping Good record keeping is an important discipline as you map out your financial goals. Imagine if you were notified of an IRS audit: How difficult would it be to get all the necessary past information together? If you have all the data in a single, well-organized place, however, you will be ready for any situation. How do you get organized? . One good record-keeping tip is to prepare your financial statements at least . Ideally, keeping will help you summarize all your transactions. . A ledger has sections where data is recorded for what you own or your ; what you owe or you ; your cash inflows or your ; and your cash outflows or your Key Steps in Record Keeping Keeping good financial records will save you time and make you money. If your records are organized, you'll have an easier time: . Compiling a budget . Pulling together an updated financial statement Accessing your records in an emergency Preparing your taxes . Preparing for an IRS audit Defending a credit report Which of the following are important steps in financial record keeping? Check all that apply. Safely disposing of unneeded documents Creating a master list of your key documents Keeping your documents in a place where everyone has easy access to them Maintaining records for tax and insurance purposes Ensuring that your family and/or executor can locate your financial documents Reorganizing your financial documents every three months at a minimum Making sure your financial plan is set in stone and inflexibleYou have been asked by the board of trustees of a local church to review its accounting procedures. As part of this review you have prepared the following comments relating to the collections made at weekly services and record keeping for members' pledges and contributions: The church's board of trustees has delegated responsibility for financial management and the financial records to the finance committee. This group prepares the annual forecast and approves major disbursements, but is not involved in collections or record keeping. No internal or independent audit has been considered necessary in recent years because the same trusted employee has kept church records and served as financial secretary for 15 years. The offering at the weekly service is taken by a team of ushers. The head usher counts the offering in the church office following each service. He then places the offering and a notation of the amount counted in the church safe. The next morning the financial secretary opens the safe and recounts the offering. He withholds about $100 to meet cash expenditures during the coming week and deposits the remainder of the offering intact. In order to facilitate the deposit, members who contribute by check are asked to draw their checks to cash. At their request, a few members are fumished pre-numbered, predated envelopes in which to insert their weekly contributions. The head usher removes the cash from the envelopes to be counted with the loose cash included in the offering and discards the envelopes. No record is maintained of issuance or return of the envelopes, and the envelope system is not encouraged. Each member is asked to prepare a contribution pledge card annually. The pledge is regarded as a moral commitment by the member to contribute a stated weekly amount. Based upon the amount shown on the pledge cards, the financial secretary furnishes a letter requesting members to support the tax deductiblety of their contributions. Describe the weaknesses and recommend improvements in procedures for: a. Offerings given at weekly services. b. Record-keeping for members' pledges and contributions
