Upon reviewing the budgets and cash flow forecast for the 2022 - 2023 FY, several issues and concerns can be identified:

1. Equipment Budget: - The total equipment budget is $20,000 AUD, but the total expenses listed for equipment purchases amount to $23,263 AUD, resulting in a budget deficit of -$3,263 AUD. This indicates overspending on equipment, which could strain the cash flow and overall financial plan. - It's important to review the necessity and priority of each equipment purchase to bring the expenses in line with the allocated budget.

2. Marketing Budget: - The total marketing budget is $100,000 AUD. However, there are significant changes in marketing expenses quarter-to-quarter. For instance, there is no allocation for Trade Shows in the second and fourth quarters, which might impact the effectiveness of marketing strategies during those periods. - The Website Upgrade expense is listed only for the first quarter, but ongoing website maintenance costs are present in the second and fourth quarters. Ensuring a consistent allocation for website-related expenses throughout the year could improve online presence and customer engagement.

3. Cash Flow Forecast: - The cash flow forecast indicates fluctuations in the monthly cash balance. In the second quarter (October - December), there is a substantial increase in cash balance due to a higher net profit margin of 12%. However, in the fourth quarter (April - June), the cash balance drops significantly to $29,285 AUD, despite the net profit margin being 13%. This could indicate potential issues in expense management during that period. - It's crucial to closely monitor and control expenses throughout the year to maintain a stable cash flow and prevent cash flow shortages in certain months.

4. Sales Projections: - The sales projections play a significant role in the cash inflow. To ensure accuracy and reliability, it's essential to base these projections on market research, historical data, and realistic growth expectations. - If the actual sales fall short of projections, it can affect the cash flow and profitability of the business.

5. Expense Management: - The total outgoing expenses in each quarter should be carefully managed and controlled to avoid any unnecessary costs that could impact the cash flow and profitability. - Periodic reviews of expenses and cost-cutting measures can help ensure that the business operates within its budgetary limits.

The budget amount of $20,000 for Fitness equipment and $100,000 for marketing are set and cannot be exceeded. Therefore you will need to assist the managers in determining ways that they can reduce their budgets.

The managers should also ensure that they have enough money set aside for unexpected expenses. This is not stated in the policies and procedures but it is good practice to leave at least 10% of the budget for unforeseen expenses such as replacement equipment if something breaks.

You are the Marketing Manager and responsible for all marketing programs and promotional activities at Bounce Fitness Centre. You have sent your marketing budget to the centre manager for approval. The budget is currently $33,000 over the forecast amount. You feel that everything within your budget is necessary in order to increase market share as per the business goals for the 2022 -2023 FY. Within the last financial year you attended two trade shows which expanded your network in the industry however in it did not translate to an increase in customer numbers as you had hoped. You would still like to attend the trade shows this year however, as you believe that this year it might be different.

Organise a meeting with the Fitness Manager and Marketing Manager. During the meeting, you must:

• Discuss the equipment and marketing budgets and explain whether they are achievable, accurate and comprehensible.
• Negotiate changes with each department manager for their respective budgets in order to ensure that they are aligned with the overall financial objectives of the business.
• Discuss any potential issues/risks with the budgets and develop contingency plans as required.
• Discuss ways that you can support the department managers in the future to assist them with developing achievable, accurate and comprehensive budgets.

You are the Fitness Manager and responsible for all fitness programs and equipment at Bounce Fitness Centre. You have sent your equipment budget to the centre manager for approval. The budget is currently $3,263.00 over the budget allowance. You feel that everything within your budget is necessary in order to keep up with your competitors. Customers have recently reported to you that your nearest competitor has the new Pro Runner treadmills which are in high demand with our target market. You would like to purchase 5 Pro Runner treadmills even though your existing treadmills are only 1 year old and in excellent condition. You are open to negotiation in this matter if absolutely necessary. You have also heard from industry contacts that there have been substantial impacts on the production and distribution of fitness equipment. Some competitors have reported up to 6 month delays in receiving their equipment and some equipment suppliers have closed down due to recent economic impacts. During the meeting, discuss this issue with the centre manager and request their advice on a realistic contingency plan in the event that this situation arises for your equipment order. Overall, you were a bit unsure about the process of developing the budget as you have only recently been promoted to Fitness Manager. You also received no training or information regarding budget requirements.