FM5.05 FINANCIAL MANAGEMENT IN FACILITIES MANAGEMENTYou have just been appointed the Facilities Manager of a business HQ by a company that has not recognised FM as a separate function before. Your new team are people who will continue in the same roles that they had before but now under your leadership.As a new function FM has not had its own budgets before and one of your first tasks is to establish what the budgets should be.Alternatively you may base your answer using your own organisation as the example clearly stating any assumptions.Task 1You should produce a Financial Management Policy document to help you and your team to start and maintain the financial management process.The document should cover the following topics:1 Describe management accounting techniques which support the facilities management process and the financial systems and processes used for the effective management of facilities management budget within your company. (AC 1.1 1.2)2 Explain the principles of financial auditing and describe how these principles are deployed within your own area of responsibility. (AC 2.1 2.2)3 Review the financial implications of using codes of ethics within in the context of corporate responsibility and explain how you would make suitable adjustments to improve good practice and transparency. (AC 2.3 2.4)4 Explain ways in which a true and fair view of assets liabilities profits and costs can be presented. (AC2.5)5 Explain how you would prepare review and manage revenue budgets. (AC 3.1 3.2)6 Set out how to apply the techniques used by facilities managers to set acquire review and manage capital budgets. (AC 3.3 3.4 3.5)Cohort Reference No. 4 BIFM Membership No.(FM5.05/26566/1) For use up to and including December 2013
7 Explain the tools of financial appraisal and how these are used to inform financial management and budgetary decisions. (AC 3.6)8 Apply the principles techniques and processes of cash-flow projections to manage the flow of cash within the facilities management business cycle including how this impacts on contracts and projects. (AC 4.1 4.2)Task 29 Identify and apply the principles and techniques to prepare financial cases and prepare a financial case to secure the required approval. (AC 5.1 5.2)Maximum 6000 wordsCohort Reference No. 5 BIFM Membership No.(FM5.05/26566/1) For use up to and including December 2013Title:Financial management in facilities managementLevel:5Credit value:6Learning outcomesThe learner will:Assessment criteriaThe learner can:1. Be able to understand the principles and practices of management accounting to facilities management1.1 Describe management accounting techniques which support the facilities management process.1.2 Describe the financial systems and processes used for the effective management of facilities management budget.2. Be able to understand sound financial policies within area of responsibility2.1 Explain the principles of financial auditing.2.2 Describe how these principles within own area of responsibility.2.3 Review the financial implications of using codes of ethics within in the context of corporate responsibility.2.4 Make suitable adjustments to improve good practice and transparency.2.5 Explain how a true and fair view of assets liabilities profits and costs can be presented.3. Be able to manage and review capital and revenue budgets in a facilities management context3.1 Prepare revenue budgets.3.2 Review and manage revenue budgets.3.3 Apply the techniques used by facilities managers to acquire capital budgets.3.4 Set capital budgets.3.5 Review and manage capital budgets.3.6 Explain the tools of financial appraisal and how these are used to inform financial management and budgetary decisions.4. Be able to manage cash flow4.1 Apply the principles techniques and processes of cash-flow projections to manage the flow of cash within the
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