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Metharom Construction (MC) plans to become a leading provider of housing construction and renovation services in the South-East Melbourne area

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Metharom Construction (MC) plans to become a leading provider of housing construction and renovation services in the South-East Melbourne area. The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress. They have been involved in commercial construction for 3 years and are now branching out to residential housing. You will be taking on the role of the administration manager, and your responsibilities include: preparation of budget reports, analyse and evaluate expenses, improve current policies and procedures regarding financing, create reports regarding financial issues and policies, be accountable for and manage staff. Q1: Create financial plans. Metharom has been hired to build a single storey home in Northcote, Victoria for Mr. Kavi Albif. Metharom has informed the client that the building works will take 35 weeks (approximately 8 months) and will begin on 03/03/16. Mr Albif has made his initial deposit of 10% of the sale price. (Refer to appendix A for additional information regarding the project) To manage the finances for this build, you will need to forecast cash flow and plan for money management that includes the following information: a) A financial plan for the build that shows when payments will be received from the client and the work that those payments will need to cover. b) A contingency plan, in case of unforeseen circumstances c) A process for monitoring spending on site, including the frequency of monitoring . Q2. Complete variance analysis and manage finances With reference to the data provided in the appendices, a report for upper management that includes the following information: a) Calculation of the variance in terms of both dollars ($) and percent (%) (this may be entered into the table provided) b) Implementation of a contingency plan that will prevent overspending throughout the rest of the build c) Recommendation of three improvements to the financial policies to improve financial management (refer to the appendices for additional information) Your report should be written in a language and style appropriate to the audience and format, and be compliant with financial legislation and regulations. Q3. Keep records of payments made to the company, as required by the ATO. The accounts team have cleared several payments that have been made to the company, as described in appendix D. As the administration manager, you will need to do the following: a) Input the invoices into the cash receipts book (Appendix E) as required by the ATO. b) Develop and implement four improvements to the financial policies regarding record keeping.