Question

Organize this list of disjoined activities from the Financial Management Cycle. Your job is to organize this list of events so your team will know what needs to be done and by when. As you organize these events think about them in the context of a 12-month cycle.

The CFO coordinates with the manager to close accounting records and financial reporting for the fiscal year

Managers user their department/project objectives to draft their individual budgets for the upcoming fiscal year

Managers assess results of their activities as compared to budget on a regular (typically monthly) basis

The CFO completes and files annual tax returns

Executive Management assess the marketplace and prior year results to develop company-wide strategic objectives for the upcoming fiscal year

The CFO completes the annual financial statement audit, and the report is distributed to the appropriate groups of internal and external stakeholders

CFO creates the company-wide annual budget for the upcoming fiscal year

Managers submit their annual budgets and objectives to the CFO for approval

CEO and CFO presents the consolidated budget to the Board for approval. The board approves or rejects the budget. If rejected, managers revise objectives and budgets according to the Board’s directive

Managers develop individual department/project objectives for upcoming fiscal year based on the strategic objectives

The CFO prepares company-wide annual financial statements

Managers oversee/implement activities (programs, services, and projects) authorized in the budget

Answer 1

The correct sequence is as follows:

1. Executive Management assess the marketplace and prior year results to develop company-wide strategic objectives for the upcoming fiscal year
2. Managers develop individual department/project objectives for upcoming fiscal year based on the strategic objectives
3. Managers user their department/project objectives to draft their individual budgets for the upcoming fiscal year
4. Managers submit their annual budgets and objectives to the CFO for approval
5. CFO creates the company-wide annual budget for the upcoming fiscal year
6. CEO and CFO presents the consolidated budget to the Board for approval. The board approves or rejects the budget. If rejected, managers revise objectives and budgets according to the Board’s directive
7. Managers oversee/implement activities (programs, services, and projects) authorized in the budget
8. Managers assess results of their activities as compared to budget on a regular (typically monthly) basis
9. The CFO coordinates with the manager to close accounting records and financial reporting for the fiscal year
10. The CFO prepares company-wide annual financial statements.
11. The CFO completes the annual financial statement audit, and the report is distributed to the appropriate groups of internal and external stakeholders
12. The CFO completes and files annual tax returns