Refer to the Budget and Forecast policy of Rats Kebabs and answer the following questions:

List two (2) budget objectives applied in the above budget and discuss whether these are consistent with organisational aims and forecasts?

BUDGET PLANNING PROCEDURES RAT'S KEBABS Responsibilities The Board of Rat's Kebabs has ultimate responsibility for overseeing the budget of the organisation and for ensuring that the organisation operates within a responsible, sustainable and profitable financial framework. It is the responsibility of the [Finance Manager/Treasurer] to prepare all budgets and review budgets in consultation with the Finance Committee. The Finance Committee consists of: The Board Chair; The Board Treasurer; The CEO; . The Finance Manager. Procedures Preparation of the Budget Clarify Budget information In April each year, the [Finance Manager/Treasurer] starts preparing the budget estimates as part of the Business Plan for the financial year. The process includes: considering operational costs; (as discussed with department managers) setting payroll costs; (discussed with Human resources department) estimating income. (discussed with sales team) Estimating expenses based on previous years costs The initial budget estimates are based on the current expenditure projections to end of year, plus Consumer Price Increments for salaries or relevant wage increases, revisions to awards/contracts, and an increase on operating expenses such as power, telephones, etc. The Finance Committee shall be provided with information about how cost increases will be absorbed or will lead to increases in sale prices. The [Finance Manager/Treasurer] will present the draft budget for discussion at a Finance Committee meeting. The Finance Committee may accept the estimates as presented or may request variations, within the context of the Business Plan. A detailed report denoting reasons for decisions should be attached to the draft budget for discussion.