Reference no: EM133139453

BSBFIN501 Manage budgets and financial plans

Task A - Demonstrate knowledge of financial management

A1. Explain the basic principle of double entry bookkeeping.
A2. Explain the two accounting principles on which the calculation and reporting of deprecation is based.
A3. Complete the following table to describe the principles of cash and accrual accounting and an advantage and disadvantage of each method of accounting.
A4. List and briefly describe three types of budgets.
A5. List and briefly describe three key features of A New Tax System (GST) Act 1999.
A6. Outline the four main taxation and superannuation obligations for a business.
A7. List and briefly describe three types of records that a company must keep for tax purposes.
A8. Explain why the ATO conducts audits.
A9. List and briefly describe three key principles that should be followed when managing a work team.
A10. Describe the difference between a static and a flexible budget.
A11. Explain the relevance of electronic spreadsheets to budgeting.
A12. Explain how often businesses must report GST.
A13. Describe a method that can be used to evaluate a budget or financial plan.
A14. Describe the following terms associated with financial statements.

Task B- Plan financial management approaches
Instructions
You are required to plan financial management approaches for King Edward VII College. This involves:

• Accessing, reviewing and then reporting on the budget and financial plans relevant to your team or department.
• Evaluating budget and financial plan outcomes.
• Preparing contingency plans in case plans need to be varied.
• Identifying if any changes need to be made to the budget and financial plans and negotiating these changes

B1. Describe the overall financial objectives for King Edward VII College.
B2. Describe the budget and financial plans you will useto assist in achieving King Edward VII College's financial objectives. Your description is to includethe purpose of the budget and financial budgets and the reporting period.
Also evaluate and report on the required outcomes for the budget and financial plan.
B3. Name of the policy and procedures that are utilised for financial management. Then, describe processes that are used to monitor expenditure and control costs, as well as adjust contingency plans as required.
B4. Based on your evaluation of the budget/ financial plan, what changes do you believe need to be made to the budget and financial plan? Describe at least one change.
B5. Develop a contingency plan for your budget/financial plan, describing at least three possible contingencies.
B6. In the previous question (Task B, Question B6) you identified a change or changes that need to be made to the budget.

You now need to negotiate this change with a Manager. Prepare an email here to confirm your understanding of the required budget and financial plan outcomes, as well as negotiate your recommended changes to the budget. Make sure you clearly state why you are recommending the change or changes.

Task C- Implement financial management plans
C1. You are required to prepare a presentation in order to communicate the financial management plans to your team.The purpose of the presentation is to:

• Communicate the details of the agreed budget and financial plans
• Provide support to your team in order to implement the budgets and financial plans
• Provide information to your team about financial management processes to monitor expenditure, controls costs and adjust contingency plans as required

Your presentation is to include:

• Details of the agreed budget and financial plans
• Information on the processes that will be used to monitor expenditure and control costs and adjust contingency plans as required.
• Details of the resources and systems that your team need to access in order to be able to perform their roles (note - this will be as per the information you completed Task B).

Your presentation must be clear and concise and use a logical structure and language that your audience can understand.

C2.
THE SCENARIO:
You now need to present the presentation you made in the previous question (Task C, Question C2) to your team. Set up a meeting with:
• You, acting as a Financial Manager at King Edward VII College
• Two members of your team, as role played by other students in your unit

WHAT YOU NEED TO DO BEFORE YOUR MEETING:
Organise a day and time for your meeting, in line with the availability of your Trainer & Assessor. This meeting should take no more than5 minutes.
NOTE: Use the instructions provided on Moodle to arrange this meeting.
You are required to manage the meeting. Prior to the meeting ensure you have read the instructions below on what you'll be required to do during the meeting and prepare as necessary.

WHAT YOU NEED TO DO DURING YOUR MEETING:
Use the meeting to:
• Present your presentation from the previous question (Task C, Question C1), ensuring you communicate details and provide support to your team
Ensure you take note of what you discuss during the meeting.

Task D- Monitor and evaluate financial management plans
Instructions
Task D continues on from Tasks B and C.

It's now the end of the reporting period. You are to review the information in the case study and report on:

• Expenditure and income
• Actual versus forecasted budget
• Effectiveness of the financial management processes as per the team's feedback
• Recommended improvements to financial management processes

You then need to implement one of the recommendations you have identified and evaluate its success.

D1. You are required to report on the variance between the actual and budgeted amount for King Edward VII College's budget/financial plan following financial management procedures.
D2. Report on contingencies, including how well they were implemented and what the modifications were.
D3. Review current financial management processes at King Edward VII College. To do this:

• Review the Financial Policy and Procedures
• Reflect on the financial planning and implementation process you have followed
• Consider any budget variances

What do you believe could be improved? Describe at least three recommendations.
D4. You now need to select one of the improvements you identified in the previous question (Task D, Question D3) and implement it.

You will also need to provide evidence of this. For example, you may decide that the budget policy section of the financial management policy needs updating, and, in this case, you will provide an updated policy. You may also decide to recommend a specific amount for inclusion as a contingency.
D5. Provide an evaluationof the improvement you implemented in the previous question (Task D, Question D4).
D6. You must create logical folders for all of your work. This will ensure you follow record keeping requirements.

Attachment:- Manage budgets and financial plans.rar