Reference no: EM132802136

Assessment Task 2 - Project

Scenario

You are a newly recruited Finance Manager of Apex Learning Institute Pty Ltd.
Apex Learning Institute Pty Ltd is a Registered Training Organisation (RTO) and conducts vocational courses in the Vocational Education and Training (VET) sector.
The CEO has provided you with the following resources:
1) Finance Policy and Procedure (FPP) Manual
2) Risk Register template
3) Financial Data workbook, including data and/or templates for
a. Financial Analysis
b. Historical & Forecasts
c. Recommendations
d. Financial Decisions
e. Resource Allocation
f. Performance Monitoring Template
g. Performance Monitoring Report
The CEO of Apex Learning Institute has sent you the following email:

As a first step, could you please review our Finance Policy and Procedure (FPP) Manual, Risk Register template and Financial Data. I would then like you do the following:
1. Review our Finance Policy and Procedure (FPP) Manualand Risk Register templateto report on the capacity of existing financial systems.
a. Write a summary of your findings on the suitability of the FPP manual to enable effective financial management for Apex Learning Institute.
b. Identify the gaps in our existing policies and procedures in relation to the following policy areas. Prepare draft policies and procedures for the identified gaps.
i. Financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company
ii. Management systems for information management
iii. Financial risk management
iv. Budget audit and compliance
2. Present your report to the management board consisting of the Operations Manager and myself.During the presentation, please:

a. Consult with the Board members to seek their views.
b. Reach agreement on your proposed policies and procedures related to:
i. Financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company
ii. Management systems for information management
iii. Financial risk management
iv. Budget audit and compliance
3. Review our Financial Dataand use it to:
a. Analyse historical financial performance
b. Use the provided assumptions to forecast our:
i. Profit & Loss Statement
ii. Balance Sheet
iii. Cash Flow Statement
iv. Business system requirements
c. Prepare budget forecasts
d. Prepare recommendations for budget expenditure
e. Analyse and evaluate the effects of the following financial decisions on the ability of Apex Learning Institute to meet the planned budget expenditure:
i. Increase the budget for Salaries and Super by 5% in year Y and then grow it at 3% p.a. during the remaining years.
ii. Enter into a contract to increase the budget for Occupancy Costs (Rent and outgoings) by 10% in year Y and keep the amount unchanged during the remaining years.
4. Present the financial information to the management board. During the presentation, please:
a. Explain our historical financial performance
b. Explain the assumptions for your financial forecasts
c. Explain your financial forecasts
d. Explain the budget forecasts
e. Explain your budget expenditure recommendations
f. Explain the effects of the stated financial decisions on the ability of Apex Learning Institute to meet the planned budget expenditure
g. Confirm our needs for future budget and associated resources
h. Reach agreement on resource allocation in accordance with our short-term and long-term needs
i. Allocate resources against the agreed budgets.
5. Prepare a performance monitoring template and risk management plan
6. Every quarterly cycle, review our financial performance and risk management activities and prepare a performance monitoring report

Part A - Review existing financial systems and prepare a written report

You are required to analyse the Finance Policy and Procedure (FPP) Manualin Appendix A and prepare a report that identifies gaps and provides recommendations to address gaps.

Complete the following steps to prepare your report.

1) Examine the capacity (coverage) of the Finance Policy and Procedure (FPP) Manual, in terms of which policy areas it includes and understand each policy's purpose. Write a summary of your findings on the suitability of the FPP manual to enable effective financial management for Apex Learning Institute.
2) Identify which of the following policy areas are covered in the FPP Manual and which are not.
a) Financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company
b) Management systems for information management
c) Financial risk management
d) Budget audit and compliance
3) Develop draft policy and procedures for the missing policy areas (the gaps).
4) Research the ASIC-regulated statutory reporting responsibilities for financial performance under the Corporations Act 2001 (Corporations Act) to establish the financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company.
Based on your research, incorporate the following financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company, in the appropriate policy and procedures:
a) General duties
b) Company's duty to keep proper books and records
c) Financial reporting obligations
d) Financial knowledge obligations
e) Relationship with the auditor
5) Evaluate the budget audit and compliance procedures, identify at least two (2) risks of non-performance and develop an improved budget audit and compliance framework.
6) Prepare a written report containing the following sections:
a) Capacity (coverage) of the Finance Policy and Procedure (FPP) Manual - Write a summary of your findings on the suitability of the FPP manual to enable effective financial management for Apex Learning Institute.
b) Policy area gaps- List which of the following policy areas are not covered in the FPP Manual.
i) Financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company
ii) Management systems for information management
iii) Budget audit and compliance
iv) Financial risk management
c) Draft policy and procedures - Prepare draft policy and procedures for each identified gap, using a format similar to that contained in the FPP Manual. Including the financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company in the appropriate policy and procedures. You must follow the policy and procedure format used in the FPP Manual (policy name, policy number, date).
d) Improved Budget Audit and Compliance procedures
e) References - Cite all the resources you have used for your work. Your assessor will provide you with the citation style guide for the RTO.
7) The report must be in Microsoft Word format and no more than 1000 words in length.
8) You must submit your report to your assessor.

Part B - ROLE PLAY - Consult with stakeholders to reach agreement on policies and procedures related to (i) reporting responsibilities (ii) information management (iii) budget audit and compliance (iv) financial risk management

You are required to meet with the CEO and Operations Manager of Apex Learning Institute, present the findings of your analysis of the FPP Manual, and get their feedback on:
a) the policies and procedures for each identified gap, and
b) the improved Budget Audit and Compliance procedures

This is a roleplay. Your assessor will organise a classmate to play the role of the Operations Manager. Your assessor will play the role of the CEO.

Before the meeting, prepare two copiesof the written report you prepared in Part A.

During the meeting, you must:

1) Introduce the purpose and agenda of the meeting.
2) Provide a copy of the written report to each the meeting attendees.
3) Explain the policy area gaps - those that are not covered in the FPP Manual.
4) Explain your policy and procedures related to financial reporting responsibilities of Apex Learning Institute's CEO as a director of the company.
5) Explain your improved Budget Audit and Compliance procedures.
6) Explain your policy and procedures related to any remaining policy area gaps.
7) Ask the attendees for their feedback and approval.
8) Reach agreementand obtain approvalon:
a) the policies and procedures for each identified gap, and
b) the improved Budget Audit and Compliance procedures

Part C - Analyse financial performance, and prepare financial forecasts and budget recommendations

Continue using the Financial Data - Apex Learning Institute Pty Ltd workbook provided to you and complete the following tasks.

Use the Financial Data - Apex Learning Institute Pty Ltd Microsoft Excel workbook in Appendix B:
1) Study the "Historical & Forecasts" worksheet. Then use the "Financial Analysis" worksheet to analyse the historical financial performance of Apex Learning Institute
a) Calculate and analyse the (i) Return on Total Assets (ii) Cost of Borrowing (iii) Return on Equity (iv) Debt-Equity Ratio to answer the following key questions:
i. In year Y-1, what was the financing mix?
ii. In year Y-1, which was the less expensive form of financing?
iii. How has the business been rebalancing the financing mix during the historical period?
b) Analyse and interpret the (i) Income Statement (ii) Balance Sheet (iii) Cash Flow Statement to answer the following key questions:
i. In year Y-1, what proportion of revenue did the business:
1. spend on direct costs (variable)?
2. spend on fixed costs?
3. earn as net earnings?
ii. During the historical period, what has been the average YoY growth in:
1. revenue?
2. direct costs (variable)?
3. fixed costs?
4. net earnings?
iii. How well has the business managed its Balance Sheet, in terms of:
1. its liquidity (current ratio; net working capital)
2. its leverage (Debt to equity; Interest coverage
3. its operating efficiency (Accounts receivable days; Accounts payable days)
2) In the "Historical & Forecasts" worksheet, use the provided assumptions to complete the Forecast Period section for:
a) Profit & Loss Statement
b) Balance Sheet
c) Cash Flow Statement
d) Business system requirements
3) In the "Historical & Forecasts" worksheet, use the provided budget constraints to complete the Budget Forecast section for:
a) Profit & Loss Statement
b) Balance Sheet
c) Cash Flow Statement
d) Business system requirements
4) In the "Recommendations" worksheet prepare your budget expenditure recommendations.
5) In the "Financial Decisions" worksheet, analyse and evaluate the effects of the following financial decisions on the ability of Apex Learning Institute to meet the planned budget expenditure for Total Fixed Costs, in the Budget Forecast period.
a) Increase the agreed budget for Salaries and Super by 5% in year Y and then grow it at 3% p.a. during the remaining years.
b) Enter into a contract to increase the agreed budget for Occupancy Costs (Rent and outgoings) by 10% in year Y and keep the amount unchanged during the remaining years.
6) Submit your Financial Data - Apex Learning Institute Pty Ltd workbook to your assessor, with the following completed:
a) "Financial Analysis"worksheet
b) "Historical & Forecasts" worksheet
i. Forecast Period section
ii. Budget Forecast section
c) "Recommendations" worksheet
d) "Financial Decisions" worksheet

Part D - ROLE PLAY - Present financial information and allocate resources

This is a roleplay. Your assessor will organise a classmate to play the role of the Operations Manager. Your assessor will play the role of the CEO.

Before the meeting, prepare two copiesof the Financial Data - Apex Learning Institute Pty Ltd workbook prepared in Part C.

During the meeting, you must:

1) Introduce the purpose and agenda of the meeting.
2) Provide a copy of the Financial Data - Apex Learning Institute Pty Ltd workbookto each the meeting attendees, showing your completed worksheets:
a) "Financial Analysis"worksheet
b) "Historical & Forecasts" worksheet
i. Forecast Period section
ii. Budget Forecast section
c) "Recommendations" worksheet
d) "Financial Decisions" worksheet
3) Explain the historical financial performance
4) Explain the assumptions for the Forecast Period
5) Explain the forecast:
a) Profit & Loss Statement
b) Balance Sheet
c) Cash Flow Statement
d) Business systems
6) Explain the budget forecast:
a) Assumptions
b) Profit & Loss Statement
c) Balance Sheet
d) Cash Flow Statement
7) Finalise budget expenditure and allocate resources
a) Use the "Recommendations" worksheet to explain your budget expenditure recommendations
b) Explain the effects of the stated financial decisions on the ability of Apex Learning Institute to meet the planned budget expenditure
c) State the budget forecasts for the following business system resource requirementsand confirm with the management board ifthey meet future budget needs:
i) Sales conversion
ii) FTE
iii) IT expenditure
iv) Collections
v) Training
d) Negotiate (present your point of view and resolve any disagreements) with the management board to secure business system resources in accordance with Apex Learning Institute's short-term (Y, Y+1) and long-term (Y+2, Y+3, Y+4) needs for:
i) Sales conversion
ii) FTE
iii) IT expenditure
iv) Collections
v) Training
e) Use the "Resource Allocation" worksheet to allocate resources against the budget line items.
f) Submit a copy of your updated Financial Data - Apex Learning Institute Pty Ltd workbook containing the "Resource Allocation" worksheet.

Part E - Prepare performance monitoring template and risk management plan

In preparation for the current financial year operations, you are now required to develop the following documents:
1) Performance monitoring template
a) Update the "Performance Monitoring Template" worksheet in the Financial Data - Apex Learning Institute Pty Ltd workbook with the agreed current year (Year Y) budget and resource allocation by Quarter, assuming:
i) Budgets and resources are allocated equally to each quarter
ii) FTE numbers for the full year are budgeted in the first Quarter itself and remain constant in the remaining quarters.
2) Risk Management plan - Complete the Apex Learning Institute Risk Register(Appendix C) sections:
a) Risk Identification
i) Identify at least two (2) financial risks
ii) Complete all columns in this section
b) Risk Assessment
i) Assign a Likelihood and Consequence for each risk
ii) The Risk Rating will be assigned automatically
c) Risk Treatment
i) Suggest a Treatment Plan for each risk
ii) Complete all columns in this section
d) Risk Monitoring and Review
i) Suggest a Method to monitor and review the action plan(s) for each risk
ii) Complete all columns in this section
3) Submit your completed documents to the assessor:
a) Performance monitoring template
b) Risk Management plan

Part F - Review financial performance and risk management activities and prepare a performance monitoring report

Apex Learning Institute has completed the first quarterly cycle of the current financial year operations. You are now required to update the "Performance Monitoring Report" worksheet in the Financial Data - Apex Learning Institute Pty Ltd workbookto complete the following sections:
1) Performance monitoring
a) Year (Y) Q1 performance has been provided.
b) Update the Year (Y) Q1 budgets using your performance monitoring template.
c) Identify line items that vary significantly from budget (as defined in the performance monitoring template)
d) Use the following business performance information for Q1, to complete the Comments column for line items that vary significantly from budget:
i) The business used a targeted online advertising strategy that resulted in lower advertising costs and better conversion.
ii) The business made some staff redundant, resulting in lower FTE but higher salaries as a result of redundancy payouts.
iii) The business has not yet paid income tax for the quarter.
2) Action plans (at least 2) to address adverse deviations from budget
3) Revised budget priorities (at least 2) in light of adverse deviations, to manage costs and the risk of continuing negative performance.

Attachment:- Assessment_Task - Project.rar