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Budget Analysis

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Submitted By peterfarouk01
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Budget
The proposed total budget allocated for the digitisation project is which will be distributed across total duration of 34 weeks. The budget is consumed aggressively in week 5 and week 9 of the project. The total hardware and software cost is 67,331.90 AUD, which is further broken down in details under the resources sheet in the budget delivered with the project.
The total labour cost which includes the contractors and HP- SME is 65,160.00 AUD. This cost includes the amount that must be paid to the employment agency as well. Other payments categorised as miscellaneous will be 16,296.00 AUD.
All suppliers will be asked to send official invoices with each deliverable separately, which will be collected by the IT engineer and project manager upon arrival. Then the IT engineer will compare the invoice content to the actual delivery, and then will be compared to the purchase order by the project manager.
All invoices will be handed to the project manager and each invoice will be sent to the department’s accountant to be given a code of project name and numeric extension according to general ledger system, then the project manager will mark each item in the budget with a corresponding invoice code to acknowledge it.
Project manager will be summing the total of the received invoices and comparing it to PO in weekly basis, any deviation should be communicated to sponsor timely with justification. The project manager will be giving a notification to the finance department on monthly basis and weekly basis about the cash the need to be prepared for next week.
If invoice not received or not present, then the IT engineer will contact the Project manager timely, which in his turn will communicate with the supplier to ask for TAX invoice, electronic invoices is acceptable, but any invoice that does not include GST will be deemed unacceptable, and the project manager will communicate with supplier to provide another one.
If the content of the delivery is damaged or does not match the content of the invoice and the PO, or quantity discrepancies issues, then a receiving report must to be filled by the IT engineer on time and in delivery place. The receiving report is a paper form prepared and supplied by the project manager to the IT engineer one week earlier to the agreed delivery date, where the quantity and description of the goods shown on the receiving report will be compared to the information on the company's purchase order and the invoice.
The contents of the receiving report are: 1- Company or supplier name. 2- Company or supplier contact information. 3- Invoice number 4- PO number 5- Quantity and description of each item 6- State of the received item 7- Problem description 8- Signature of Education department representative and the supplier representative As a rule of thumb, if the invoice, PO and the actual delivered items are not fully matching, then the delivery should be rejected. Project manager need to be notified immediately, which in his turn will contact the supplier to ask more clarification and notify the accountant to take the appropriate measures.
The budget, including cash flow and financial information will be approved and signed off by the project manager, Project sponsor,

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