Justification for Using Funds in Constructing - Essay Example

?GLL Table of Contents Justification for Using Funds in Constructing and Promoting a Swim Centre 3 Hiring of Pool Contractor 3 Cost to the Contractor3 Extra Features 4 Equipments 4 Lighting and Heating 4 Promoting 6 Operating Costs 6 Summary of the Above Fund Allocation 7 Factors to Be Taken Into Account When Building a Financial Budget for Leisure Centre 7 7 Income 7 Costs 8 Balance 8 Goals 9 References 10 Justification for Using Funds in Constructing and Promoting a Swim Centre In the provided scenario, a funding of ?10,000 has been awarded for delivering a project in Tower Hamlets. The project has been planned to build up a swimming centre for ladies in the local region at Tower Hamlets. The purpose is to encourage the ladies to learn to swim. The fund will have to be efficiently utilised in different areas with the aim that not only the purpose of encouraging the ladies is served but the overall investment becomes productive as well. The fund can be utilised in the following sectors for building the swim centre: Hiring of Pool Contractor The foremost task is to hire a pool contractor to get the best economical value for the pool design. 1% of the total funding will be spend to appoint an appropriate contractor for the project, who will help in choosing the most economical pool structure for the ladies in Tower Hamlets. Cost to the Contractor The contractor takes the entire responsibility of constructing the swimming pool and charges a specific amount for that. 50% of the total funding can be kept aside for allocating the job to a contractor. The objective is to get the best value for investment and thus 2% has been allocated for contractor selection. Allocation of job to contractor lifts the hazards of the complex task and can provide adequate time for utilisation in other activities. Extra Features Certain amount of funding should be allocated for creating an “X factor” in the swim centre. This requires investment in additional features such as waterfalls, tiling and so on. These attributes will help in attracting and encouraging the women because they specially prefer to spend time in scenic locations. Thus, 10% of the funding has to be allocated for this purpose. Equipments Equipments are an important feature in a swim centre for the purpose of maintaining and providing excellent amenities. Equipments such as swimming pool furniture, pool thermometers, centrifugal motor pump and hose pipe are the most basic ones. An allocation of 19% of the total funding has to be made for purchasing these equipments in the initial stage. Lighting and Heating The lighting and heating amenities need to be designed in a well structured manner in order to avoid any disaster in the future. Women prioritise safety and security the most. Thus, maintenance of highest quality lighting and heating facilities will attract and encourage women to join the centre. 5% of the fund needs to be allocated for this purpose. Promoting The centre will remain a gravestone as long as it is not being promoted. Thus, a lot of emphasis needs to be provided to the marketing aspect of the project. The remaining 15% of the fund should be utilised in promoting the swim centre within the locality of Tower Hamlets. All the facilities that will be specially designed for a ladies swim centre should be promoted. Operating Costs The amount of funding in maintaining the operating expenses would be derived from the operating incomes after the project gets started. However, it is essential to keep in mind that sufficient amount of fund should be utilised in maintenance and cleanliness of the swim centre. Adequate and appropriate chemicals should be used for keeping the swimming pool clean and unsullied everyday. Maintenance is extremely important for providing the best look to the swim centre around the locality. For example, vinyl and concrete linings should be refreshed once in every 5 years. A continuous checking and verifying are necessary for a swim centre to be successful in encouraging people to join (HomeHelp4U, 2011). Summary of the Above Fund Allocation Hiring of Pool Contractor Cost to the Contractor Extra Features Equipments Lighting and Heating Promoting 1% 50% 10% 19% 5 % 15% Factors to Be Taken Into Account When Building a Financial Budget for Leisure Centre In order to derive the financial budget for a leisure centre, it is essential that information about the available funds is accessible. Apart from this information, the other factors are also discussed in this section: Income The availability of net income is essential for building up the budget. In this case the net income or the available fund to be invested is ?10,000. The income factor is essential because the amount available for spending is derived from this factor. In the case of building up the leisure centre, it is evident that the entire fund amount is available for the purpose of spending in constructing the swimming pool. Based on the available income, the utilisation of the fund has been presented in the previous section of the paper (East Riding of Yorkshire Community Accountancy, 2009). Costs The next important factor in building up the financial budget is to calculate the costs. In this situation, the entire income can be spent as mentioned. All factors required for the leisure centre has to be considered in order to avoid any sort of miscalculation in the financial budget. Research on the prices of the required amenities and equipments shall provide the basis for total costs to be incurred (East Riding of Yorkshire Community Accountancy, 2009). Balance The third important factor in building up the financial budget is to achieve balance. The aggregate of the income generated must be equal to the aggregate of the expenses incurred. Comparing both the two sides, if it is observed that the sum total of the income is greater than the aggregate expenses, the excess amount can be further invested in constructing certain other amenities. If the reverse is observed, then the entire cost calculation will have to be modified (East Riding of Yorkshire Community Accountancy, 2009). Goals This is perhaps another important factor in building up the financial budget for the leisure centre. At the first hand, an analysis of demands in the prevailing market within the locality of Tower Hamlets is required to be done. It has to be realised that the target market is the women group who depicts typical nature. The goals of the leisure centre should be accordingly developed based on their requirements. The goals are required to be continuously reviewed during the project progression. If at any stage, it is observed that performance is not according to the goals then at that particular point of time, the cost calculation needs to be reviewed (East Riding of Yorkshire Community Accountancy, 2009). References East Riding of Yorkshire Community Accountancy, 2009. Three Easy Steps to a Sound Budget. ERYCA. [Online] Available at: http://eryca.net/preparing_a_sound_budget.aspx [Accessed February 01, 2011]. HomeHelp4U, 2011. The Cost of Constructing your Swimming Pool. Tips and Planning. [Online] Available at: http://www.homehelp4u.net/tipsandplanning/swimming_pool_cost.php [Accessed February 01, 2011]. Read More