Reference no: EM132307590 , Length: word count:3000

Sport and Events Funding and Finance Assessment Task - Report - Funding and Finance Report

Unit learning outcomes:

1. Assess the financial health of a sport, recreation and/or event organisation through the application of appropriate analysis tools and techniques.

2. Provide justified solutions to an authentic business challenge faced by a sport, recreation and/or event organisation.

This assignment requires you to produce a funding and finance report on the financial health of a fictitious WA State Sporting Association (SSA). You are required to analyse a profit and loss and balance sheet of the SSA and provide an assessment of its current financial strengths and weaknesses, identifying areas of improvement. You are then asked to discuss the potential financial impact of an external event; and prepare a budget for a potential one-day event to generate additional revenue.

Part A - you are required to analyse, evaluate and report on the financial health of a fictitious Western Australian SSA, Gumboot Throwing WA, which has an annual turnover of approximately $1 million.

Part B - you are required to describe how an external event (described below) may impact upon the financial viability of Gumboot Throwing WA and what measures you would take to deal with the impact; and Part C - you are required to prepare a budget for a one-day event to be conducted by Gumboot Throwing WA.

You are to write a professionally presented report that:

• analyses the financial health of Gumboot Throwing WA (using most recent Profit and Loss and Balance Sheet);
• identifies areas for potential development/improvement in both income and expenses
• discusses the potential financial impact of an external event; and
• prepares a budget for a potential one-day event to generate additional revenue.

The structure for this report might include:

• Title
• Author
• Introduction and background
• Main areas of discussion (use various sub-headings) from Parts A, B and C
• Conclusions and recommendations
• References (not included in word count)
• Appendices (Excel spreadsheets from Parts B & C)

It is expected that any tables and figures you use will be integrated into the text in a professionally presented manner.

You should produce a succinct, well-structured and organised 3000 word (maximum) report, supported by professionally prepared figures and tables, and referenced in the ECU style.

PART A - Funding and Financial Analysis

The funding and financial analysis must address the following topics as a minimum:

• Structure and readability of the chart of accounts
• Type and nature of revenue and expenses and whether there are any and if so what aspects of the revenue or expenses that strike you as unusual and if so how
• Particular reliance upon any and if so what revenue streams (expressed as a percentage of total revenue) and whether this is ideal
• Type and nature of assets (current and non-current) and liabilities (current and non-current) and whether there are any and if so what aspects of the assets or liabilities that strike you as unusual and if so how
• Liquidity
• Cash reserves and whether the amount is appropriate (why/why not)
• Surplus for the financial year you have reviewed (level and appropriateness)
• Return on assets
• Debt to equity ratio
• Net Equity
• Areas for potential development/improvement and an explanation as to why these areas have been chosen

PART B - Financial Impact of External Event

In addition to its proposed sale of the TAB, the WA State Government has also decided that it will sell Lotterywest to help balance the budget due to the significant reduction in mining royalties as a result of the dramatic reduction in the price of iron ore approximately three years ago and the cost of a number of infrastructure projects. The WA Department of Local Government, Sport and Cultural Industries has advised that Gumboot Throwing WA's grant under the Organisational Sustainability Program will be slashed by 75% as a result of the sale of Lotterywest.

Using the same financial reports you used in Part A, outline the impact this reduction in grant funding will have on the financial viability and sustainability of Gumboot Throwing WA; explain what you would do to ameliorate this loss of revenue; prepare an Excel spreadsheet that shows the relevant financial adjustments you would suggest; and provide an explanation of the rationale that underpins the adjustments you have made.

PART C - Event Budget

Gumboot Throwing WA has decided that in order to generate more revenue, it will conduct a one day event and has come to you for assistance. Describe the event you have decided to conduct (which must be related to Gumboot WA's core business) and prepare a detailed budget for the event. The budget must be prepared in an Excel spreadsheet that shows all relevant revenue and expense items that should be included in a budget for this type of event and you must provide a rationale for the figures contained in the budget. For example, the rationale for admission revenue of $27,000 for spectators to an All Star Game might be:

- 500 Adults @ $20 each plus 700 children @ $10 each plus 200 families @ $50 each.

Attachment:- Assignment Files.rar