6012.5 Project Review (Financial Director)

An analysis of the current situation, marketing prospects, market opportunities, procedures and effect of them on future activity both at the supply of work and subcontract suppliers. The Company Review should be a dynamic activity. Traditionally, it has been an inward looking, guilt finding occurrence rather than a forward opportunistic fact finding and planning mission.

1. Nevertheless, a number of mundane tasks need to be attended to at the company level along with the Muli Business Management Procedure. Review and collate all reports of Project and Profit Centre Managers.

2. Overhead Project

   1. Cost Report review of all overhead allocations and reports prepared for all major variances.

      1. Reconcile the system [c,m,*]

      2. Reconcile Clearing Accounts [c,*,*]

   2. Confirm the Project List is correct (2.03) [c,*,*]

   3. Confirm Budget is correct on Cost Report Account for “B” on any Project Contribution Report [c,*,*]

   4. Variations - Review variation status with all projects to ensure approved status is agreed by the clients (Progress Claim format) [c,*,*]

   5. Review Suppliers' File - Who are we doing business with, Payment Terms [c]

   6. Review contract documentation and presentation of: [c]

      1. Orders, Subcontracts & Amendments

      2. Security of Payment Advice

      3. Final Certificates

      4. Notices to Client

      5. Notices to Subcontractors

   7. Accounts Payable Review

      1. Confirm General Ledger balance [c]

      2. Retentions [c]

      3. Payment procedures [c]

         Unapproved Invoice status are payable invoices being processed within 5 working days?

   8. Cheques

      1. Reconcile cheque account [c,m,g]

      2. Confirm internal bank and bank statement agree (7.15) [c,m,g]

      3. Review cash flow forecast and ensure short term project liquidity is not being utilised (excessively) for long term obligations [c]

   9. Security of Payments

      Review company procedures to ensure reduced exposure from Security of Payment legislation. Are notices being sent to subcontractors within 10-day limit.

   10. Orders

       1. Amendments Required Report Review [c,m,g]

       2. Ascertain that amendments or Credit Request correctly managed [c,m,g]

   11. Accounts Receivable

       1. Review Liquidity Report (7.10) to ensure that invoicing and progress claims are up to date and payments are being received [c,m,g]

       2. Predict future liquidity to ensure no problems exist in future [c,m,g]

       3. Confirm old invoices and receipts are being reconciled [c,m,*]

       4. Confirm provision for bad “debts”. However, this generally is not applicable as our philosophy is not to recognise income until received [c]

   12. Bulk File Update

       Prior to end of period reports being printed, run this program that will update the Approved, Retention, Accrual to the individual Project Cost Reports [c,m,g]

   13. Run the Profit & Loss and Balance Sheet [c,m,*]

   14. Payroll Control Account Review [c,*]

       Confirmation provision accounts sufficient to cover legal and practical obligations.

       1. Group Tax Return

       2. Payroll Tax Return

       3. Workers' Compensation

       4. Superannuation

       5. Prescribed Payment Tax

   15. Plant and Equipment Review

       Income earned repairs required and method of financing as opposed to hiring - selling off unused items: [c,*,*]

       1. Builder's plant

       2. Office equipment

       3. Vehicles

       4. Depreciation schedules
          Review of property assets, valuation, maintenance costs.