Task 2 As the financial manager, who has conducted an audit on the Nara Groups budgets, you must now prepare a report highlighting your findings. Using the information you have collected in previous tasks, prepare a variation report, of approximately 300 words in length, reviewing the budgeted period. Your report must meet the following format as required by the organisation: 1. Name of Reviewer 2. Date of Review 3. Budget Period in Review 4. Address the following points: a. List the top 3 areas of greatest concern, with discrepancies between the forecasted budget and actual performance. Provide a brief explanation of each discrepancy, stating why it may have occurred and why it is of concern. b. What was the organisations tax liability for the period? What is the difference between the actual tax liability and the budgeted tax liability? (Note: use the total profit in Part 2 Task 1 (d) not Part 2 Task 1 (c). c. Evaluate the effectiveness of the financial management process, by considering its ability to ensure that the forecasts of the budget are achieved. 5. Recommendations for next budget period to ensure financial viability of the organisation and prevent the discrepancies from reoccurring. Note: you should refer to your findings in Task 1. PART 2: Your assessor will be looking for: Before you hand in the Part 2 assessment tasks, use the checklist below to make sure you have completed all the activities and have included all relevant information. To satisfy the criteria of this part, ensure you have: Circulated budget using the email template provided, ensuring managers and supervisors are clear about the budget, their reporting requirements and financial delegations. Created a financial transactions recording system which manages risk and ensures that the risk for misappropriation of funds is managed. Reviewed profit and loss statements, ageing summaries and cash flow statement. Revised the operating budget to include the organisations requirements to account for contingencies. Completed an audit trail by reconciling the Nara Group bank statements with the financial statements, identifying and recording discrepancies. Ensured compliance with due diligence by determining whether the organisations objectives were actioned. Prepared a variation report, following the required structure and addressed all the required points within the allocated word limit.