Reference no: EM132600426

BSBFIM601 Manage finances - Tas College

Assessment Task 1:

Q1. Financial probity is the evidence of ethical behaviour in a process. Identify three principles and three examples of the requirements related to financial probity.

Q2. Describe the principles of accounting and financial systems.

Q3. Explain legislation and conventions relevant to financial management in an organisation, including:
a. Australian legislation and conventions
b. International legislation and conventions
c. State/territory legislation and conventions

Q4. Outline the requirements of the Australian Tax Office (ATO), including:
a. Goods and services tax (GST)
b. Company tax
c. Pay as you go (PAYG) tax

Q5. What legislation applies to fraud and the misappropriation of funds?

Q6. Explain the need for financial due diligence and outline what actions may be included in a financial due diligence review.

Q7. Explain how you use P&L statements, cash flow and ageing summaries to manage issues that will affect the organisation's ability to meet objectives.

Q8. Explain how forecast analyses and analyses related to budget preparation will enable you to contribute to financial bids and estimates.

Q9. What can the organisation do to maintain an audit trail to ensure accurate tracking and to identify discrepancies between agreed and actual allocations?

Q10. List considerations when reviewing existing software and its suitability for financial management.

Q11. Why is it important to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations?

Q12. Briefly explain how using previous financial data can help determine allocations for resources.

Q13. Give an example of a budget and/or budgeted statement that must be prepared in accordance with statutory requirements.

Assessment Task 2 - Project work and Role Play

Performance objective

For this task, you are required to respond to a range of questions that examine your understanding of key legislative and financial management requirements for a case study organisation. This assessment also requires you to review available financial information and establish a budget for the organisation.

Assessment description

This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.

Procedure

Part A - Project
1. Read and analyse the case study information (including business plan summary and previous financial data) in Appendices 1-3, and complete the following tasks.
a. Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources.
i. Ensure each budget you prepare complies with the organisational policies and procedures as provided.
b. Develop budget notes that include:
i. identification of reasons for previous profits and losses
ii. your comment on the effectiveness of existing financial management approaches
iii. all assumptions and bases that have been made or used to form budgets
iv. any relevant notes regarding implementation and monitoring of budget expenditure
v. an explanation of the required legislative requirements of financial management (and outline statutory requirements of ATO, GST, company tax, PAYG)
vi. review of two types of digital technology that can be used for financial management. Make a recommendation in the budget notes as to which you would suggest using for the case study.
c. Based on the information provided in the case study, answer the questions in Appendix - 3

Part B - Role-Play Scenario
The CEO of Houzit Pty Ltd, Jim Schneider, explained that he prefers to discuss the budgets with all senior managers prior to their distribution in order to ensure a corporate view of the strategic plans. He then meets with each group separately, along with the relevant senior manager, to answer questions and concerns about their particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as an electronic spreadsheet.
Upon completion of the budgets, you meet with Jim (your assessor) and another manager (colleague) to provide an overview of the information contained within the budgets, the budget notes, and recommendations regarding the internal controls, to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Jim (your assessor) asks you a series of questions

1. Communicate information regarding the budget and answer a series of questions as agreed with your assessor.

Specifications

You must submit:
• a completed annual budget in a single spread sheet with a separate sheet for each budget component
• budget notes
• Answers to 8 Questions in Appendix - 3

Your assessor will be looking for evidence that you:
• have reviewed the case study information provided by submitting an appropriate budget with budget notes
• understand, and can explain, the required legislative requirements of financial management (and outline statutory requirements of ATO, GST, company tax, PAYG)
• can outline compliance requirements for the Corporations Act 2001
• can identify and recommend use of suitable software for financial management
• have clearly communicated information regarding the budget and correctly responded to a series of questions (e.g. describe the principles of accounting and financial systems)
• can describe implications of financial probity
• can outline the critical dates/initiatives that will require or generate resources
• have provided for additional items (as necessary and appropriate) in the budget
• have recommended new or modified internal controls that could improve risk management and maintenance of audit trails
• have developed an annual budget, as appropriate
• have developed appropriate budget notes
• have responded appropriately to the questions presented by ‘Jim Schneider', the CEO in the case study in this assessment task.

Assessment Task 3: Project and PowerPoint Presentation

Performance objective

This assessment task requires you to monitor the implementation of a budget and report on the variances, trends and performance of the established budget for a fictional business and provide recommendations for ongoing financial viability.

Assessment description

You will need to review the provided current case study information and compare it to the budget you established in Assessment Task 2. After evaluating these you will need to report on the following:
• significant issues
• variances from budget
• comparative performances
• recommendations for ongoing financial viability
• evaluation of financial management processes.

Procedure

1. Read the case study provided in this task.
2. Develop a variance report based on the format and template provided by Houzit.
3. Complete a cash flow analysis on the average length of time it takes Houzit to collect funds from its debtors to determine the trend based on the financial reports in Assessment Task 2.
4. Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following in a report:
a. Issues:
i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes of these issues. Include in this issues of financial probity that you have identified or considered when monitoring these budgets.
b. Variances:
i. Complete an actual-to-budget variance report, using the template provided in the case study.
ii. Identify variances by comparing actual results with the established budget, and provide reasons why these variances may have occurred.
c. Performance:
i. Compare financial performance of the organisation (according to financial information provided) to industry benchmarks for this organisation in line with the retail trade sector.
ii. Respond to the performance questions provided by the CEO, as provided by the board of Houzit,
iii. Determine a trend of the average debtor days and the impact to the cash flow of Houzit.
d. Recommendations:
i. Outline your recommendations for ongoing financial viability for the organisation, based on your assessment of the issues, reasons for variances and organisational performance you have identified (Steps 1-3).
ii. Include in this section your plans for a revised budget, effectively managing contingencies and issues that have been identified in feedback and monitoring of the budgets.
e. Evaluation:
i. Provide a summary review of the financial management processes in place for the organisation, in light of your assessment of the issues, reasons for variances and organisational performance you have identified. Include in this section any recommendations you have for modifying management processes.
5. Prepare for and undertake the role-play presentation.
a. Arrange a time with Jim Schneider, CEO of Houzit Pty Ltd (your assessor), and another senior manager (played by a course colleague), to present an oral explanation of your variance report. Ensure that your assessor and role-play colleagues have copies of or access to documents you will be referring to by circulating the budget the day prior to allow time to prepare questions.
b. Deliver the presentation of your variance report.
i. Summarise your findings (issues, variances, financial performance).
i. Prioritise and present your recommendations.
ii. Outline reporting requirements and required financial delegations.
c. Ask for questions, either during or at the end of the presentation, to:
i. demonstrate your oral communication skills
ii. use questioning and listening techniques
iii. demonstrate competent exchange of information
iv. use appropriate conventions and protocols
v. ensure the manager and CEO are clear about budgets before seeking approval.
d. Seek approval of your recommendations in the report, and implement budget by distribution to managers after approval.

Attachment:- Manage finances.rar