Make a thorough research on the above company, identity and briefly explain the sources of finance available for the expansion in the distribution of its line of products and highlight the implications of such sources of finance.
From the above, explain the importance of financial planning for Melaleuca Products and describe the impact of finance on the financial statement.
Obtain a Financial Statement of the company showing its two (2) consecutive latest annual statements. Compute for its profitability and liquidity ratio. Compare and comment on the result of your two (2) years calculations.
Analyze Melaleuca's business environment through its consolidated results as shown in the Financial Statement.
Introduction
The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories, public finance, corporate finance and personal finance. All three of which would contain many sub-categories.
The study of finance can also take many forms, depending on the field or area of finance which one wishes to study. For instance, economics is considered a pillar of financial science, where both macro and microeconomic factors affect virtually levels of financial decisions and outcomes at all levels. Additionally, the study of behavioral finance aims to study the more "human" side of a science considered by most to be highly mathematical. This illustrates that the study of finance can, at times, be more art than science.
Task 1 :
Make a thorough research on the above company, identity and briefly explain the sources of finance available for the expansion in the distribution of its line of products and highlight the implications of such sources of finance.
Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated is a community-controlled, not-for-profit association operating out of Darwin. The association was first established in 1996 as the Torture Trauma Survivors Service of the NT Incorporated to cater for the small numbers of refugees and asylum seekers wanting to settle in the Northern Territory. In 2002 it expanded and became known as the Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated.
The Australian Refugee Foundation (ARF) was established in 1998 to procure and manage funds for the Refugee Council of Australia. As the RCOA is primarily an independent advocacy and policy non-government organization working with and for refugees and asylum seekers, it is important that it should have an independent source of funding. Otherwise its work might be viewed as serving sectional interests, or as reflecting a particular ideological or political standpoint. The ARF is the source of such funding. It is actively seeking funds so that RCOA's door can remain open and that its work in promoting the human rights of refugees and asylum seekers can continue.
The Refugee Council of Australia (RCOA) is the national umbrella body for refugees and the organizations and individuals who support them. It has more than 140 organizational and 500 individual members. RCOA promotes the adoption of flexible, humane and practical policies towards refugees and asylum seekers both within Australia and internationally through conducting research, advocacy, and policy analysis and community education. Our website contains a wealth of information and resources to help you find out about the key issues affecting refugee and asylum seekers both in Australia and internationally, the work of RCOA and the practical ways you can support refugees and asylum seekers.
Department of Immigration and Citizenship
The Department of Immigration and Citizenship (DIAC) is an Australian Government department. It is responsible for immigration arrangements, border control, citizenship, ethnic affairs, and multicultural affairs. For the 2010-11 financial year the department's operating budget was A$2.2 billion. The purpose of the Department of Immigration and Citizenship is to 'enrich Australia through the well managed movement and settlement of people'. Its objectives are to maximize the economic and social benefits for Australian immigrates, to foster an Australian society that is cohesive, diverse and inclusive, to improve public confidence in national security, particularly through effective border management and to identify and deliver productivity and improved risk management capability in an environment of fiscal restraint. Australia's Humanitarian Program is an important part of our contribution to the international protection of refugees. It is designed to ensure that Australia can respond effectively to global humanitarian situations and that support services are available to meet the specific needs of these entrants.
Department of Health and Ageing
The Department of Health and Ageing is an Australian Government department. Its role is to oversee the running of Australia including supporting universal and affordable access to medical, pharmaceutical and hospital services, while helping people to stay healthy through health promotion and disease prevention activities. The department's plan for the future includes are developing a coherent national Health and Ageing system, using knowledge and information to deliver better services, using integrated funding to deliver more effective services, driving the system with the experience of the customer. The health assessment for refugees and other humanitarian entrants may be completed under MBS Items 701 (brief), 703 (standard), 705 (long) or 707 (prolonged) depending on the length of the consultation which will be determined by the complexity of the patient's presentation. This health assessment is for refugees and other humanitarian entrants who often arrive in Australia with complex and unusual medical conditions resulting from their area of origin or previous living conditions. Some refugees or other humanitarian entrants will have little experience of western health care systems and this health assessment provides an opportunity to introduce these patients to preventive health care in Australia, in particular immunization, maternal and child health care, and breast and cervical screening. Many will have been exposed to war, famine, repression, torture and/or extreme poverty. The health assessment should be undertaken in a manner that is sensitive to the needs of the patient.
Department of Children and Families
The Department of Children and Families works to ensure that all children are safe in their own homes. When that cannot be assured, that they are provided a safe and loving foster or adoptive home. The Department will also work to ensure that children have access to health care, both physical and mental health; that they are well-educated; and that families are getting stronger as a result of being involved in our child welfare system.
Honda Foundation
The Honda Foundation has been supporting MacKillop's Learn Right Drive Right program with the use of a fully serviced vehicle. Learn Right Drive Right provides young people in MacKillop's care who are near transitioning to independent living, with driver education and the opportunity to acquire their learner and probationary permits. One such example is Mat, a young male with complex needs who has recently gained his license. With a license Mat was able to secure permanent employment enabling him to acquire financial assistance to purchase his own vehicle. Mat is now a very confident, proud young person with a sense of achievement and self-worth.
Grants are non-repayable funds disbursed by one party grant makers, often a government department, corporation, foundation or trust, to a recipient, often but not always a non-profit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is usually required. Most grants are made to fund a specific project and require some level of compliance and reporting. The grant writing process involves an applicant submitting a proposal or submission to a potential funder, either on the applicant's own initiative or in response to a Request for Proposal from the funder. Other grants can be given to individuals, such as victims of natural disasters or individuals who seek to open a small business. Sometimes grant makers require grant seekers to have some form of tax-exempt status, be a registered non-profit organization or a local government. For example, tiered funding for a freeway are very large grants negotiated at government policy level. However smaller grants may be provided by a government agency example is municipal government. Project-related funding involving governments, business, communities, and individuals is often arranged by application either in writing or online.
Recently, Wisconsin was awarded $22.7 million with a "Race to the Top-Early Learning Challenge" grant. This four-year grant will focus on improving Young Star to better serve high-risk students, help providers improve their Young Star ratings, and strengthen efforts to engage parents in improving their children's early learning and development. Read more about the plan to improve early childhood quality for Wisconsin's children.
Help meet the needs of American society in the areas of youth and scientific education by awarding grants to non-profits, while strategically assisting communities in deriving long-term benefits. The American Honda Foundation engages in grant making that reflects the basic tenets, beliefs and philosophies of Honda companies, which are characterized by the following qualities: imaginative, creative, youthful, forward-thinking, scientific, humanistic and innovative. We support youth education with a specific focus on the STEM (science, technology, engineering and mathematics) subjects in addition to the environment. When considering the American Honda Foundation as a potential funding source, please note the following. Eligible Organizations is Non-profit charitable organizations classified as a 501(c) (3) public charity by the Internal Revenue Service, or a public school district, private or public elementary and secondary schools as listed by the U.S. Department of Education's National Centres for Education Statistics (NCES). To be considered for funding organizations MUST have two years of audited financial statements examined by an independent CPA for the purpose of expressing an opinion if gross revenue is $500,000 or more. If gross revenue is less than $500,000, and the organization does not have audits, it may submit two years of financial statements accompanied by an independent CPA's review report instead.
Task 2 :
From the above, explain the importance of financial planning for Melaleuca Products and describe the impact of finance on the financial statement.
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved. The Financial Planning activity involves the following tasks are assess the business environment, confirm the business vision and objectives, Identify the types of resources needed to achieve these objectives, Quantify the amount of resource such as labor, equipment and materials, Calculate the total cost of each type of resource, Summarize the costs to create a budget, Identify any risks and issues with the budget set. Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set. The role of financial planning includes three categories. First is Strategic role of financial management, second Objectives of financial management third is the planning cycle.
Financial Planning is the process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.
Objectives of Financial Planning is financial planning has got many objectives to look. They are determining capital requirements. This will depend upon factors like cost of current
and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects short- term and long- term requirements. Determining capital structure is the composition of capital example the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term. Framing financial policies with regards to cash control, lending, borrowings, and extra. A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.
Importance of Financial Planning is process of framing objectives, policies, procedures, programmers and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as adequate funds have to be ensured. Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained. Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning. Financial Planning helps in making growth and expansion a programmer which helps in long-run survival of the company. Financial Planning reduces uncertainties with regards to changing market trends which can be faced easily through enough funds. Financial Planning helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability and profitability in concern.
Financial statements are written records of a business's financial situation. They include standard reports like the balance sheet, income or profit and loss statements, and cash flow statement. They stand as one of the more essential components of business information, and as the principal method of communicating financial information about an entity to outside parties. In a technical sense, financial statements are a summation of the financial position of an entity at a given point in time. Generally, financial statements are designed to meet the needs of many diverse users, particularly present and potential owners and creditors. Financial statements result from simplifying, condensing, and aggregating masses of data obtained primarily from a company's or an individual's accounting system.
A vision statement is a description of where a company or individual wants to be in the future. It also explains what the person or business wants to do or get done. These types of statements are usually short, with many being just one sentence. It is common for people to use them on business websites or company materials, as well as on resumes and applications. Melaleuca vision is Melaleuca Refugee Centre is recognised as a leader in facilitating the recovery of refugee survivors of Torture and Trauma.
A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment. Also called company mission, corporate mission, or corporate purpose. A mission statement is a statement of the purpose of a company, organization or person, its reason for existing. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated. Melaleuca are Melaleuca Refugee Centre provides an environment for resettlement and healing of refugee survivors of torture and trauma, their families and community through confidential, high-quality and holistic services.
An aim observable and measurable end result having one or more objectives to be achieved within a more or less fixed timeframe. To attempt or intend to reach a certain goal and a specific goal or purpose. Melaleuca Refugee Centre aims to achieve its mission by, Providing ethical, client focused services and referrals to refugee survivors, their families and communities in a climate of empowerment and self-determination. Promoting community awareness regarding issues for refugee survivors and involvement in activities conducted by the Centre by individuals, families, organizations and the wider community. Creating and maintaining a sustainable and respectful organization that values all stakeholders including employees, volunteers and the Management Committee. Providing culturally sensitive opportunities for client involvement in service development. Strategic involvement in local, Territory and National networks.
Melaleuca Refugee Centre has entered an exciting period of rapid growth and now has a rewarding opportunity for an experienced Finance Manager to join their team in the heart of Darwin. Reporting to the Deputy Director, responsible for providing a range of strategic financial management and financial processing functions as required ensuring that the fiscal and statutory requirements of the organisation are fulfilled. Some of day to day duties will include but are not limited to maintaining the financial records in accordance with legal and tax requirements; preparing statutory annual accounts, monthly financial reports, annual budgets, and forecasts; planning and managing cash flow and investment activity; ensuring that an appropriate financial policy framework is in place; financial management of insurance claims and worker's compensation; liaising with the Director and members on financial risks; and general accounts duties including banking, creditors, process debtors, payroll and associated payments.
Task 3 :
Obtain a Financial Statement of the company showing its two (2) consecutive latest annual statement. Compute for its profitability and liquidity ratio. Compare and comment on the result of your two (2) years calculations.
Profitability ratios measure a company's ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a company to generate earnings, profits and cash flows relative to relative to some metric, often the amount of money invested. They highlight how effectively the profitability of a company is being managed. Common examples of profitability ratios include return on sales, return on investment, return on equity, return on capital employed (ROCE), cash return on capital invested (CROCI), gross profit margin and net profit margin. All of these ratios indicate how well a company is performing at generating profits or revenues relative to a certain metric. Different profitability ratios provide different useful insights into the financial health and performance of a company. For example, gross profit and net profit ratios tell how well the company is managing its expenses.
Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. These ratios measure the ability of a company to pay off its short-term liabilities when they fall due. The liquidity ratios are a result of dividing cash and other liquid assets by the short term borrowings and current liabilities. They show the number of times the short term debt obligations are covered by the cash and liquid assets. If the value is greater than 1, it means the short term obligations are fully covered. Most common examples of liquidity ratios include current ratio, acid test ratio (also known as quick ratio), cash ratio and working capital ratio. Different assets are considered to be relevant by different analysts. Some analysts consider only the cash and cash equivalents as relevant assets because they are most likely to be used to meet short term liabilities in an emergency. Some analysts consider the debtors and trade receivables as relevant assets in addition to cash and cash equivalents. The value of inventory is also considered relevant asset for calculations of liquidity ratios by some analysts.
Profitability Ratio
Net profit margin = Net Profit
Sale
2012 : 937,325 / 2,572,861
= 2.38 : 1
2011 : 941,983 / 482,097
= 1.95 :1
If 2012 was RM 1,00,000 was sales, RM 2.38 was the net profit and 2011 was RM 1,000,000 sales, 1.95 was the net profit.
Return on total assets = Profit available to common share
Total assets
2012 : 937,325 / 2,572,861
= 0.36 :1
2011 : 941,983 / 1,542,283
= 0.61 :1
If 2012 was RM 1,00,000 was total assets, RM 0.36 was the Profit available to common share and 2011 was RM 1,000,000 total assets, 0.61 was the Profit available to common share.
Return on equity = Profit available to common share
Equity
2012 : 937,325 / 949,745
= 0.99 : 1
2011 : 941,983 / 194,309
= 4.85 : 1
If 2012 was RM 1,00,000 was equity, RM 0.99 was the Profit available to common share and 2011 was RM 1,000,000 equity, 4.85 was the Profit available to common share.
Gross profit margin = Gross profit
Sales
2012 : 5.090,820 / 393,394
= 12.9 : 1
2011 : 4,375,160 / 482,097
= 9.081 : 1
If 2012 was RM 1,00,000 was sales, RM 12.9 was the gross profit and 2011 was RM 1,000,000 sales, 9.081 was the gross profit.
Liquidity Ratio
Current Ratio = Current assets
Current liability
2012 : 2,568,059 / 685,791
= 3.74 : 1
2011 : 1,516,902 / 592,538
= 2.56 : 1
In 2012 the Melaleuca Refugee Center have RM Rm 3.74 Current assests, RM 1,000,000 for current liability and In 2011 have RM Rm 2.56 Current assests, RM 1,000,000 for current liability.
Quick Ratio = Current - Inventories - Prepayment
Current Liability
2012 : 2,568,059 / 685,791
= 3.74 : 1
2011 : 1,516,902 - 500 / 592,538
= 2.56 : 1
Task 4 :
Analyze Melaleuca's business environment through its consolidated results as shown in the Financial Statement.
Melaleuca Refugee Centre Torture Trauma Survivors Service of the NT Incorporated is a community-controlled, not-for-profit Association operating out of Darwin. Melaleuca Refugee Centre provides an environment for resettlement and healing of refugee survivors of torture and trauma, their families and communities through confidential, high quality and holistic services. Melaleuca Refugee Centre provides early settlement support and counseling services to people of refugee background and facilitates significant community development programs in the areas of cultural transition, strengthening families and peace leadership.
Pass event of Melaleuca Refugee Center is OzFusion 2013 multicultural Australia Day was a resounding success with around 600 attending. This was the first time Melaleuca was involved in this high profile event. Our clients were engaged in all aspects of the day and it was a great opportunity to meet other multicultural groups. OzFusion celebrated Darwin's cultural diversity through an exciting and engaging program of cultural performances and bands and featured delicious multicultural food. A special guest this year was Australia Day Ambassador Mr John Kundereri Moriarty AM, a Territorian and Chairman and co-founder of the Sydney-based Jumbana Group, a leading Australian Indigenous design consultancy. The Hon Terry Mills MLA, Chief Minister of the Northern Territory who performed "Waltzing Matilda" and "In the Jungle" with Capricornica and African All Star Drummers. The Lord Mayor of Darwin Katrina Fong Lim gave a welcome speech.
Darwin World Refugee Day Festival "Restoring Hope" 16 June 2012 is also one of pass even of Melaleuca Refugee Center. "A vibrant community festival with powerful messages, pride and spirit". People from many different backgrounds gathered to celebrate this year's World Refugee Day Festival setting in Jingili Water Gardens, on a Saturday afternoon in June. The festival truly showed the wider community what "community" and being part of it means to people from refugee background and what they have to offer their adopted home in the richness of their experience and culture. This maturing community event was the culmination of months of collaboration and an increasing ownership of the event by the community who managed with confidence the delegated responsibility. Twice as many people as last year, well over a thousand, enjoyed the diverse and vibrant program of cultural performances, interactive stalls and kids' activities. An official citizenship ceremony hosted by the Department of Immigration and Citizenship with Senator Trish Crossin was held and meant the final legal step in the journey to become an Australian citizen.
A varied performance program was planned in conjunction with the Multicultural Council NT and Darwin Community Arts including a Welcome to Country for the newest Australians from the oldest. There was a rare cultural exchange between the emerging Karen community and Aboriginal elder Kath Mills singing together her song "Arafura Pearl". The multicultural performances from Cambodian, Indonesian, Bhutanese and Burundi dancers highlighted the local cultural diversity for a wider audience. The Madi Sudanese dancers gave a stunning first performance with live drumming in their new costumes (enabled by a grant from Office of Multicultural Affairs). An outstanding Hip Hop choreography by students from Darwin High School Intensive English Unit demonstrated how students from ten different backgrounds come together, collaborate and create a dynamic way of interaction and expression. As the "African Brothers" drummers from Sudan, Liberia, Congo and Gambia pounded out their drum beats at the finale, dancers and the crowd were calling out for more. This was the first time that the "African Brothers" performed together, a unique performance in Australia.
Conclusion
Conclusion of Melaleuca Refugee Center is UNHCR Malaysia's operational strategy will require strong cooperation with partners. Contributions from civil society and NGOs, the Malaysian Government and the refugee communities themselves will be central to the shared effort. At the operational level, given the large numbers of urban refugees and asylum-seekers, refugee communities are crucial partners in a sustained effort to address the wide array of protection and assistance needs. The 2013 budget reflects the comprehensive needs of the populations of concern in Malaysia, while taking into account implementation capacity. UNHCR's requirements in Malaysia will amount to USD 17.4 million in 2013.
The lack of legal protection in Malaysia means that urban refugees face grave protection risks on a daily basis. Without legal status in the country, refugees face the risk of refoulement, or of arbitrary detention, and they lack legal safeguards in the event they are victims of crimes.
Without the right to work and reliable livelihood opportunities, they face substantial difficulties in accessing affordable health care and social services, resulting in a largely non-existent social safety net for women and children at risk.
As they are not allowed to attend government schools, refugee children do not have access to basic education. The fear of arrest and lack of legal status also severely constrain the ability of refugee communities to help themselves.
Appendices
Pass Event of Melaleuca Refugee Center
Department of Immigration and Citizenship
Activity of Melaleuca Refugee Center
