Reference no: EM132404515

BSBFIM601 - Manage Finances - The Sydney Business & Travel Academy

Qualification: SIT60316 Advanced Diploma of hospitality and management

Cluster number and name: CCC4 HAD 1.3 Manage finances

Assessment Task 1: Knowledge questions

Assessment task description
• This is the first (1) unit assessment task which comprises of fourteen (14) knowledge questions you have to successfully complete to be deemed competent in this unit of competency.
• You must respond to all questions and you must answer all questions to the required level, e.g. provide the number of points, to be deemed satisfactory in this task.
• You will receive your feedback within two weeks from your Trainer/Assessor when results are available.

Purpose of the assessment task:
This assessment task is designed to evaluate your Knowledge for the following:
• identify the requirements for financial probity
• describe the principles of accounting and financial systems
• explain Australian, international and local legislation and conventions that are relevant to financial management in the organisation
• outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go.

Assessment conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial management field of work and include access to:
• financial data
• relevant legislation and Australian Tax Office requirements
• examples of business plans, profit and loss statements, cash flows and aging summaries
• organisational financial policies and procedures
• financial management software.

1.1 Explain what are the legislative requirements that a public authority must comply with to maintain financial probity? (Guide: Long)

1.2 Explain the following principles of accounting and financial systems, (Guide: Long):
a) Accrual principle
b) Cost principle.
c) Going concern principle.
d) Revenue recognition principle.

1.3 Explain how is an organisation's financial performance measured and managed? (Guide: Short)

1.4 Answer the following:
a. Explain the significance and objective of "Accounting standard AASB 101".
b. Where is the standard Aus 1.1 applicable?
(Guide: Medium)

1.5 Answer the following:
a. Explain "IPSAS 1 - Presentation of Financial Statements ".
b. What are the key differences between IPSAS 1 and AASB 101?
(Guide: Medium)

1.6 Explain the "Financial Management and Accountability Act 1997 (FMA Act)". (Guide: Medium)

1.7 Research and explain the following Australian, international and local legislations and conventions that are relevant to financial management in the organisation and how it is relevant. Record your answers in the table below. (Long)

1.8 An understanding of financial management requires knowledge of the relationship between financial management and accounting, accounting principles, and accounting standards. Explain the following accounting principles (Guide: Long)

1.9 What obligations does a business have with regards to taxation in Australia? (Guide: Long)

1.10 What are requirement of the Australian Tax Office when establishing a new business? (Guide: Short)

1.11 Assume that you are working as an Accountant for an organisation. The organisation wants to conduct financial statement audit as part of closing the financial books and before filing income statement during closing. Explain in 350-400 words, the four (4) steps that you will take to conduct the audit. (Guide: Long)

1.12 Explain the following methods of analysing a financial statement:
a. Vertical analysis
b. Horizontal Analysis
c. Ratio Analysis
d. Trend Analysis
(Guide: Medium)

1.13 How is the following calculated in a Profit and Loss Statement?
a. Gross profit
b. Gross profit margin
c. Operating profit
d. Net profit
Write your answer in 100-150 words.

1.14 How would you use the following ratios to analyse the organisation's cash flow? Explain in 30-50 words each:
a. Cashflow solvency
b. Cashflow margin
c. Cashflow return on assets

Assessment Task 2: Plan for financial management and prepare budgets and allocate funds

Assessment type: Case study and practical activities

Assessment task description

• This is the second (2nd) unit assessment task which comprises of case study and practical activitiesyou have to successfully complete to be deemed competent in this unit of competency.
• You must respond to all questions and you must answer all questions to the required level, e.g. provide the number of points, to be deemed satisfactory in this task.
• You will receive your feedback within two weeks from your Trainer/Assessor when results are available.

Purpose of the assessment task:
In this task you will demonstrate the skills and knowledge on how to analyse previous financial data, undertake research to review reasons for previous financial results, analyse financial trends and review statutory requirements and tax liabilities.

Assessment conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial management field of work and include access to:
• financial data
• relevant legislation and Australian Tax Office requirements
• examples of business plans, profit and loss statements, cash flows and aging summaries
• organisational financial policies and procedures
• financial management software.

Instructions to the Students

This assessment task requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will need to read the below given case study, analyse the information provided and complete the given tasks.

3.1. The end of financial year 2017/2018 is approaching near. The decision on new accounting system is still to be made. However, to get accurate predictions, the CEO of the organisation gathered information from the company's accountant and the internal auditor and conducted analysis of the past outcomes and they want the budgets to be prepared based on this analysed information and the budget plan summary.

The CEO has provided you the following information from the previous financial year budgets to review and analyse and establish areas which have generated a profit or loss. You must undertake research to review the reasons for the previous profit and loss and discuss this with your CEO. (see attached):
» Business plan summary
» Income statements for year 2016/17 and 2017/18
» Statement of financial position
» Notes from meeting with the accountant
» Budget policies and procedures
Document your analysis and discussions once you have reviewed and analysed the financial data (Guide: 250 words).

Pearl food distributors Budgeting Policy and Procedures
Budget Development Process
The standard process for developing budgets will follow the following steps:
1. Identify budget objectives
2. Gather previous years' financial data.
3. Gather anticipated changes in budget from the stakeholders.
4. Incorporate identified trends.
5. Develop budget based on the formats provided in MS excel.
6. Final approval.

ASSESSMENT TASK 3: PRESENTATION
Assessment type: Scenario and presentation

Assessment task description
• This is the third (3rd) unit assessment task which comprises of scenario and a presentation whichyou have to successfully complete to be deemed competent in this unit of competency.
• You must respond to all activities and provide answersat the required level, e.g. provide the number of points, to be deemed satisfactory in this task.
• You will receive your feedback within two weeks from your Trainer/Assessor when results are available.

Applicable conditions:
• The presentaton will be timed and you will be allocted 10 to 15 minutes to deliver your presention which you must complete the task independantly.
• The trainer/assessor may ask you relevant questions on this assessment task to ensure that this is your own work.No marks or grades are allocated for this assessment task. The outcome of the task will be Satisfactory or Not Satisfactory.
• Where a student's answers are deemed not satisfactory after the first attempt, a resubmission attempt will be allowed.

In this assessment task you will be required to demonstrate your ability to present and interact with other stakeholders such as CEO, senior managers and supervisors. Your assessor will observe your ability to interact and demonstrate your ability to present to a group. In this assessment task:
» Your role will be to act as Business manager.
» Your trainer will act as Chris (CEO of the business)
» Your trainer/assessor will allocate the role of Senior managers and Supervisors (2 each) to the students present in the classroom. If there are insufficient number of students in the class, then, your trainer/assessor will take on multiple role switching roles based on the task requirements.
» You will first document the budgetary notes and distribute it to the senior managers and supervisors.
• You will then deliver a presentation on the budgets prepared in part 1 of this assessment task.
• At last, you will engage in discussion with the stakeholders (Senior Managers, Supervisors and CEO) to address their issues.

3.1. Read the scenario below and complete the activity.

So, the CEO of Pearl food distributors Pty LTD "Jeff Hardy" has called a meeting with you, senior managers and the supervisors. The CEO also provided you with the information that he wants to discuss the best option for the new accounting system based on the company guidelines of selecting the accounting software (provided in the case study) in this meeting.
The CEO of the organisation has asked you to prepare and deliver a presentation to provide an overview of the information contained within the budget. Before delivering the presentation, he wants you to prepare key notes from the budget and disseminate them to the stakeholders (Senior Manager, Supervisors and CEO of the company).
The key points that the notes must include are as follow:
• Major reasons for the previous profits and losses.
• Assumptions made within the budget.
• Notes to implement and monitor the budget expenditure on regular basis.

3.2. Presentation (10 - 15 minutes)
After distributing the budget notes to the stakeholders (Senior Managers, Supervisors and CEO), the CEO would like you to prepare and deliver a presentation which must include the following:
• Overview of the following budgets:
o sales and profit budget
o GST cash flow budget
o debtor ageing summary
Note: You must use Microsoft PowerPoint to deliver your presentation. You can use screenshots of budgets you prepared in the spreadsheets in your presentation.
• Reporting requirements for each quarter.
• Financial delegations of Senior managers, store managers and supervisor for budget implementation.
• Reasons for previous profit and loss for each quarter.

3.3. After the completion of the presentation, you will be required to address the concerns of the stakeholder's present during the meeting and address the questions and concerns of the Senior managers.
The following questions are to be discussed with the stakeholders (Senior Managers, Supervisors and CEO). You must document the discussions and feedback from the stakeholders in the space below.
a) Senior Manager 1:
What are the current statutory requirements for tax compliance? (Medium).

b) Senior manager 2:
Which is the most suitable commercially available financial-management accounting software for Pearl food distributors Pty LTD and explain why? (Guide: Long).

c) Supervisor 1:
What are the implications of probity in preparation and revision of budgets? (Guide: Medium).

d) Supervisor 1:
What are the critical dates and initiatives that will require or generate resources for Pearl food distributors Pty LTD. in the next financial cycle? (Guide: Short)

e) Supervisor 2:
What other items do you think should be included in the budgets for the company? (Short)

f) Supervisor 2:
What internal controls should be implemented to improve risk management for maintaining audit trials? (Guide: Short)

Assessment Task 4: Establish budgets & allocate funds

Assessment type: Case study and practical activities

Assessment task description

• This is the fourth (4th) unit assessment task which comprises of a case study and practical activities whichyou have to successfully complete to be deemed competent in this unit of competency.
• In this task you are required to determine allocations for resources, make estimates of new items for the budget and prepare a budget in accordance with organisational requirements and statutory requirements. This task is in continuation with the previous task. In this task, you will monitor the implementation of the budget that you have prepared in assessment task 2.
• You must respond to all activities and provide answersat the required level, e.g. provide the number of points, to be deemed satisfactory in this task.
• You will receive your feedback within two weeks from your Trainer/Assessor when results are available.

Purpose of the assessment task:
This task will demonstrate your ability to establish budget and allocate funds. You will learn how to prepare budget variance report and also prepare a report on the effectiveness of existing financial management approaches.
Assessment conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial management field of work and include access to:
• financial data
• relevant legislation and Australian Tax Office requirements
• examples of business plans, profit and loss statements, cash flows and aging summaries
• organisational financial policies and procedures
• financial management software.

4.1. Considering the outcomes of the analysis report, the CEO of the company wants you to prepare budget variance report to manage risks that may occur in the organisation in case of misappropriation of the funds.
This is also to be done to maintain audit trials for accurate tracking and identification of discrepancies between agreed and actual allocations.
To do so, you are required to:
a) Prepare the actual budget based on the outcomes of the analysis report.
b) Compare the outcomes of the actual budget with the outcomes of the allocated budget (refer to the assessment task 2).
c) Prepare budget variance report, GST Cash Flow Budget variance report and debtor ageing variance report in MS excel by following the structure of templates provided.
d) Ensure compliance with due diligence.
e) Circulate it to all the stakeholders to ensure mangers and supervisor are clear about budgets, reporting requirements and financial delegations.
You must make sure that when conducting audit trial, you comply with due diligence in reviewing financial statements.

4.2. After preparing the budget variance report, the CEO of the organisation wants you to analyse and prepare a report on effectiveness of existing financial-management approaches.
To do so, you are required to:
a) Analyse and review budget variance report, GST Cash Flow Budget variance report and debtor ageing variance report:
o Identify the issues based on the information provided within the case study.
o Present views on how these issues can be resolved.

b) Analyse the "Sales and Profit Budgets variance report", identify and prioritise the significant issues, including the financial performance.
o Identify variances.
o Provide reasons for the variance.
o Document the steps that should be taken to maintain gross profit margins after increasing expenses and downturn in the amount of sales.

c) Conduct cash flow analysis to identify the debtor days. The analysis is to be conducted based on the information provided in the assessment task 2.

d) Check the financial viability of the company by comparing the performance of the company with the industry benchmarks for retail trade sector.

e) Present recommendations about the financial viability for the organisation based on the analysis of the issues given in the case study, the identified reasons and the organisational performance.

f) Revise budget and include included the revised budget in your report and provide recommendation to manage such contingencies in the future.

g) Review the financial management process based on your assessment of the issues, reasons and organisational performance. Also provide recommendations for improvement in improving financial management processes such as audit trails.

h) Identify and document some of the risks that the company can face in future based on the outcomes of the audit trial conducted. Also identify the risk of misappropriation of funds and document a risk management approach.

i) Ensure compliance with due diligence.
Once you have conducted the above tasks, you are required to prepare a report addressing the above in you report. You must ensure that the structure and format of you report are clear and conform to the organisational and statutory requirementsand include figures, charts, graphs and submit the report your assessor who will act as the CEO to get it signed off. (Guide: Long approx. 800 words)

Attachment:- Manage Finances.rar