Moult Hall Essay

Published: 2020-01-10 05:10:34
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Category: Finance

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This report was commissioned by the committee of the North West Trust for the Protection of Wildlife to analyses the financial statements of two project proposals for the Trust.

The First statement is a projection profit statement for running a quad bike activity center by Winston Barkwith.

The Second and Third statement are a comparison of Johnathans and Ingrids proposal without or with Local Authority funding.

Findings:

Winstons proposal does not appear to be in the best interests of the Trust in relation to its three main aims.

Questions remain to be answered about the source of Revenue for Winstons proposal.

Johnathan and Ingrids proposal with the prospect of Local Authority funding and is deeply in the best interests of the Trust.

QUESTION 1 (A)

This profit statement included the capital costs to set up the project as Winston will be proposing this to the Trust and the trust would need to be made aware of the all costs including set up costs.

We are not told who will finance the set-up costs, we are not told if they will be financed by capital or if they will be paid for by the trust and for that reason they are included in the profit statement.

QUESTION 1 (B)

QUESTION 1 (C)

IS THE ESTIMATED COST OF THE PROPOSAL PROJECT REASONABLE IN RELATION TO THE COST OF SIMILAR PROJECTS?

The committee would need further information regarding the proposals to make a decision. If they could compare the projects to similar ones they could make a more accurate decision. It may be easy to make a decision based on Jonathan and Ingrids proposal as Jonathan and Ingrid may be able to obtain copies of financial reports from Johnstone House which would make for easy comparison. There is nothing that we are told of to compare Winstons proposal with.

WHERE IS THE PROJECT PROPOSAL FINANCE COMING FROM?

Winston has not declared where the finance will come from to finance his project. The committee would need to evaluate where he is getting his finance from for his proposal. If Winstons plan failed they may be left with no income. The project needs to be financially sustainable.

DOES THE PROJECT PROPOSAL FULFIL POLICIES AND AIMS?

The committee will need to assess whether or not the Winstons proposal fit in with the aims of the Trust. At a quick glance we can see that Johnathan and Ingrids proposal seems to fit reasonably well with the main goals of the Trust and would benefit the local community greatly and not endanger the existing plant and wildlife. However looking at Winstons proposal it seems to benefit an exclusive rich club and not the wider community and also there may be a negative impact of the existing plant and wildlife because of the noise and air pollution and removal of natural habitats.

THE BACKGROUND OF THE PROJECT PROPOSERS.

The Trust would need to evaluate what is the motivation behind both of the project proposals. The fact that Winston will retain any surplus income himself should be alarming to the Trust as it would not be reinvested into the trust. Winstons primary aim seems to be a profit for himself. Whereas Johnathan and Ingrid who are on the committee longer seem to have a project based on the true aims of the trust and that is the benefit of the community and the environment.

QUESTION 3.

DISCUSS THE FINANCIAL AND NON-FINANCIAL IMPLICATIONS OF WINSTONS PROPOSAL AND ITS POSSIBLE CONSEQUENCES IN RELATION TO THE TRUST FULFILLING ITS STATED AIMS.

FINANCIAL IMPLICATIONS

The Trust will now have a regular fixed income of €750000.00 per year. This could be beneficial as they may have more time to concentrate on the aims of the trust instead of spending a lot of time fundraising.

The Trust has recently hired two new staff to co-ordinate fund-raising activities, it is unclear now whether or not they will still be needed for fundraising activities, they may have to be let go.

The upkeep and maintenance of the bedrooms and the hall reception rooms will be funded for by Winstons proposal, thats a good thing as it wouldnt have to come out of fundraising activities.

The trust may even stand to gain more from the rich clients who are coming to stay may even financially support the trust there may be new opportunities of holding banquet events where all their fundraising could be done in one or two nights throughout the year .

There is no mention of where Winstons set up costs come from we are not told if they are financed or paid for and will the trust be expected to fund these?

The Surplus money from Winstons project is going to him it is not being re-invested in the Trust.

NON-FINANCIAL IMPLICATIONS

Winstons proposal does not fit in with the three aims of the trust:

The natural habitat of the Kites and other wildlife maybe destroyed as a new track will be built and existing trees will be cut down.

The petrol pollution from the Quads may kill the small rodents which is the main food source for red kites.

The local residents and community will not benefit from the local countryside. Health and safety laws would have to be considered if it was to remain open to the public.

Winstons proposal does not facilitate the education of the regions young people.

The local residents and community may be unhappy if they hear what they have lost through Winstons proposal. They may even protest against the felling of trees and new tracks been made.

It could attract a lot of unwanted attention for Winston from the media. Eco warriors could take up residence in the woodland. Winstons Rich clients may not like the unwanted attention and they may not even come to stay.

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