Financial Appraisal Essay Example | Topics and Well Written Essays - 2000 words

Financial Appraisal - Essay Example Charities are evenly exposed to risk as compared to any commercial organization because of changing economic conditions, scare availability of funds and conservative approach towards operations due to limited resources. Regeneration through Education Limited (RTE) also has to be prudent in its business operation as its supporting adult education and training facility in deprived localities. For this purpose trustees must ensure prudence in their business operations. RTE is faced with the situation of tight funding and new supplier for their huge investment of  £100,000 in furniture and fittings. To mitigate the risk management of the trust has to follow two important components discussed below: Beside these two measures for risk coverage, RTE has to make the remaining payment within 10days of receipt of the goods therefore RTE has to manage its cash flow sensitivities during the construction period through: All charities are required to prepare accounts and make them available on request to public and authority commission (Deloitte, 2011).   The duty to file accounts and the Trustees’ Annual Report with the Charity Commission applies to all registered charities earning annual income or expenditure over  £10,000. RTE is maintaining annual turnover of  £ 2.5mn so it has to send its complete Annual Return to Charity Commission with 10 months of the financial year end (Charity Commission, 2011). RTE can only succeed in providing educational courses and infrastructure support to the under privileged segment of society if it is better able to manage its financial resources and report them accordingly within specified timeframe. This implies that RTE has to manage its inflows and outflows to meet their short, medium and long term business objectives and plan operational strategies based on these financial resource reporting and