The correct procedure for a Team Manager to report that tolerances are forecast to be exceeded is to create an Exception Report. This report is a crucial tool in PRINCE2 for escalating issues that cannot be resolved within the agreed tolerances, ensuring that they are brought to the attention of higher management for decision-making. References: PRINCE2 Foundation manual, PRINCE2 official resources

The objective of the Starting up a Project process in PRINCE2 includes ensuring that the roles and responsibilities are defined before the project is formally initiated. This includes identifying who will be responsible for creating the Project Plan. References: PRINCE2 Foundation Training Manual; PRINCE2
2017 Foundation handbook.

The purpose of the Managing a Stage Boundary process is to prepare and provide the necessary information for the Project Board to make an informed decision about authorizing the next stage of the project. This includes the preparation of key documents such as the End Stage Report and the next Stage Plan. References:
PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

The level of tailoring in PRINCE2 should be defined during the initiation stage of the project. This stage involves setting up the proper foundation for the project by adapting the method to suit the project's environment, including deciding how much and which parts of the methodology to apply. References:
PRINCE2 Foundation Handbook, Tailoring PRINCE2 section.