BSBFIM601 – Manage finances_EL_Adv. Diploma

Table of Contents Assessment instructions 2 Assessment requirements 3 Candidate Details 5 Assessment – BSBFIM601 – Manage finances 5 Section A – Knowledge Activity 6 Knowledge activity checklist – for assessor 11 Section B – Performance Activity 15 Activity 1A 15 Activity 1A checklist – for assessor 20 Activity 2A 22 Activity 2A checklist – for assessor 24 Activity 3A 25 Activity 3A checklist – for assessor 28 Activity 4A 30 Activity 4A-4D checklist – for assessor 34 Section C – Major Activity 36 Major activity checklist – for assessor 42 Competency record to be completed by the assessor 46

 

Instructions to Learner

Assessment instructions

Overview

Prior to commencing the assessments, your trainer/assessor will explain each assessment task and the terms and conditions relating to the submission of your assessment task. Please consult with your trainer/assessor if you are unsure of any questions. It is important that you understand and adhere to the terms and conditions, and address fully each assessment task.

Written work

Assessment tasks are used to measure your understanding and underpinning skills and knowledge of the overall unit of competency. When undertaking any written assessment tasks, please ensure that you address the following criteria:

· Address each question including any sub-points

· Demonstrate that you have researched the topic thoroughly

· Cover the topic in a logical, structured manner

· Your assessment tasks are well presented, well referenced and word processed

Active participation

It is a condition of enrolment that you actively participate in your studies. Active participation is completing all the assessment tasks on time.

Plagiarism

Plagiarism is taking and using someone else’s thoughts, writings or inventions and representing them as your own. Plagiarism is a serious act and may result in a learner’s exclusion from a course. When you have any doubts about including the work of other authors in your assessment, please consult your trainer/assessor. The following list outlines some of the activities for which a learner can be accused of plagiarism:

· Presenting any work by another individual as one’s own unintentionally

· Handing in assessments markedly similar to or copied from another learner

· Presenting the work of another individual or group as their own work

· Handing in assessments without the adequate acknowledgement of sources used, including assessments taken totally or in part from the internet.

If it is identified that you have plagiarised within your assessment, then a meeting will be organised to discuss this with you, and further action may be taken accordingly.

 

 

 

Collusion

Collusion is the presentation by a learner of an assignment as their own that is, in fact, the result in whole or in part of unauthorised collaboration with another person or persons. Collusion involves the cooperation of two or more learners in plagiarism or other forms of academic misconduct and, as such, both parties are subject to disciplinary action.

Competency outcome

There are two outcomes of assessments: S = Satisfactory and NS = Not Satisfactory (requires more training and experience).

Once the learner has completed all the assessments for this unit of competency, the learner will be awarded “Competent” (C) or “Not Competent” (NC) for the relevant unit of competency.

Confidentiality

The college will treat anything, including information about your job, workplace, employer, with strict confidence, in accordance with the law. However, you are responsible for ensuring that you do not provide us with anything regarding any third party including your employer, colleagues and others, that they do not consent to the disclosure of. While we may ask you to provide information or details about aspects of your employer and workplace, you are responsible for obtaining necessary consents and ensuring that privacy rights and confidentiality obligations are not breached by you in supplying us with such information.

Assessment appeals process

If you feel that you have been unfairly treated during your assessment, and you are not happy with your assessment and/or the outcome as a result of that treatment, you have the right to lodge an appeal. You must first discuss the issue with your trainer/assessor. If you would like to proceed further with the request after discussions with your trainer/assessor, you need to lodge your appeal via the complaint and appeal form which is available on the college website.

Recognised prior learning

Learners will be able to have their previous experience or expertise recognised on request.

Special needs

Learners with special needs should notify their trainer/assessor to request any required adjustments as soon as possible. This will enable the trainer/assessor to address the identified needs immediately .

Assessment requirements

Assessment can be:

· Direct observation

· Product-based methods e.g. reports, role plays, work samples

· Portfolios – annotated and validated

· Questioning.

The assessment activities in this workbook assess aspects of all the elements, performance criteria, skills and knowledge and performance requirements of the unit of competency.

To demonstrate competence in this unit, you must undertake all activities in this workbook and have them deemed satisfactory by the assessor. Once you have demonstrated the required level of performance, you will be deemed competent in this unit.

As part of the assessment process, all learners must abide by any relevant assessment policies as provided during induction.

 

Candidate Details

Assessment – BSBFIM601 – Manage finances

Please complete the following activities and hand in to your trainer/assessor for marking. This forms part of your assessment for BSBFIM601 – Manage finances

Name: _____________________________________________________________

Learner ID: ______________________________________________________________

Email: _____________________________________________________________

Declaration

I declare that no part of this assessment has been copied from another person’s work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person. I also understand the assessment instructions and requirements and consent to being assessed.

Signed: ____________________________________________________________

Date: ____________________________________________________________

If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below:

This activity workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another person’s work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person.

Learner 1: ____________________________________________________________

Signed: ____________________________________________________________

Learner 2: ____________________________________________________________

Signed: ____________________________________________________________

Learner 3: ____________________________________________________________

Signed: ____________________________________________________________

 

Section A – Knowledge Activity

 

1. Why is examining previous financial data important for managing current and future finances?

 

 

 

 

 

2. Why might you need to understand the reasons for profit and loss?

 

 

 

 

 

3. Give examples of your business’ or industry’s critical dates and describe how they can be used to increase profit.

 

 

 

 

 

 

4. Why might you need to analyse cash flow trends?

 

 

 

 

5. Why do you need to be aware of your tax liabilities?

 

 

 

 

6. What are some of the questions you should ask yourself to ensure that your financial management software is suitable for your business?

 

 

 

 

 

 

 

 

7. Why do you need to consider previous financial data when managing resource allocation?

 

 

 

 

 

 

 

8. Why do you need to estimate the costs of potential new items?

 

 

 

 

 

9. Why do you need to prepare budgets in line with organisational policies?

 

 

 

 

 

 

 

 

 

10. Why do prepare budgets in line with organisational policies?

 

 

 

 

11. Give several examples of how a company’s funds might be misappropriated and detail how this could be detrimental to the company.

 

 

 

 

 

 

12. Why are ageing summaries useful?

 

 

 

 

 

 

13. Give an example of a contingency and how the budget may have to be revised in order to compensate for the loss of time, goods etc.

 

 

 

 

 

 

 

 

 

 

 

14. How can an audit trail help you identify discrepancies? Which type of discrepancies may be identified?

 

 

 

 

 

 

15. Why do you need to be diligent when ensuring compliance? Give an example based on your own workplace where a lack of diligence regarding compliance has caused problems in the past or could cause problems if not observed.

 

 

 

 

 

 

 

 

 

16. Research your own organisation’s requirements for report formatting. Why might your organisation make specifications about report formatting?

 

 

 

 

 

 

 

 

 

 

 

 

17. Why do you need to draw attention to significant issues in reports?

 

 

 

 

18. Describe ways in which you can monitor the financial viability of the organisation and why this is necessary.

 

 

 

 

 

 

 

19. Review your own company’s financial management processes and offer a commentary on areas which could be improved.

Knowledge activity checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
1.

 

Learner can identify why examining previous financial data is important for managing current and future finances. Yes         No

(Please circle)

 

Knowledge Evidence

2. Learner can identify the need of understanding the reasons for profit and loss Yes         No

(Please circle)

 
3. Learner can give examples of businesses or industry’s critical dates and describe how they can be used to increase profit. Yes         No

(Please circle)

 
4. Learner can identify the importance of analysing cash flow trends. Yes         No

(Please circle)

 
5. Learner can identify why tax liabilities need to be aware of. Yes         No

(Please circle)

 
6. Learner can identify questions to ensure that organisation’s financial management software is suitable for the business. Yes         No

(Please circle)

 
7. Learner can explain why previous financial data needs to be considered when managing resource allocation. Yes         No

(Please circle)

 
8. Learner can explain the importance of estimating the costs of potential new items. Yes         No

(Please circle)

 
9. Learner can outline why preparing budgets in line with organisational policies is essential. Yes         No

(Please circle)

 
10. Learner can identify why we need to prepare budgets in line with organisational policies Yes         No

(Please circle)

Knowledge Evidence
11. Learner can give several examples of how a company’s funds might be misappropriated and detail how this could be detrimental to the company. Yes         No

(Please circle)

 
12. Learner can explain the importance of ageing summaries useful Yes         No

(Please circle)

 
13. Learner can give an example of a contingency and identify how the budget may have to be revised in order to compensate for the loss of time, goods etc. Yes         No

(Please circle)

 
14. Learner can explain how an audit trail can help identifying discrepancies. Yes         No

(Please circle)

 
  Learner can explain how type of discrepancies may be identified. Yes         No

(Please circle)

 
15. Learner can identify why it is important to be diligent when ensuring compliance. Yes         No

(Please circle)

 
  Learner can give an example based on his/her own workplace where a lack of diligence regarding compliance has caused problems in the past or could cause problems if not observed. Yes         No

(Please circle)

 
16. Learner can research his/her own organisation’s requirements for report formatting. Yes         No

(Please circle)

 
  Learner understands and explains why organisation should make specifications about report formatting Yes         No

(Please circle)

 
17. Learner can explain why drawing attention to significant issues in reports is needed. Yes         No

(Please circle)

 
18. Learner can describe ways in which he/she can monitor the financial viability of the organisation and why this is necessary. Yes         No

(Please circle)

 
19. Learner can review his/her own company’s financial management processes and offer a commentary on areas which could be improved. Yes         No

(Please circle)

 
Comments
Assessor’s comments here:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

 

Section B – Performance Activity

Activity 1A

 

1.1 Review and analyse previous financial data to establish areas which have generated a profit or loss

1.2 Undertake research to review reasons for previous profit and loss

1.3 Review business plan to establish critical dates and initiatives that will require or generate resources in the next financial cycle

1.4 Analyse cash flow trends

1.5 Review statutory requirements for compliance and liabilities for tax

1.6 Review existing software and its suitability for financial management

 

Question 1

In your words, explain how to undertake research to review the reasons for the profit or loss.

 

 

 

 

Question 2

Critically analyze the below statement on the importance of dates and initiatives in cash flow trends:

“Assessing the amounts, timing, dates, and uncertainty of cash flows, along with where they originate and where they go, is one of the most important objectives of financial reporting”.

 

 

 

 

 

 

 

 

 

 

Question 3

Explain how and why you would analyse your business’ cash flow trends.

 

 

 

 

 

 

 

Question 4

 

Box and Co. is a storage company based in New York. You have been hired to analyse their cash flow from the 2021/22 financial year and identify potential explanations for performance and suggest improvements for the future.

 

Box and Co.

 

Cash Flow Statement – for year end 30/04/2021

Cash flow from operating activities  
Receipts from sales of goods and services 64000
Payments to suppliers -6000
Payments to employees -100000
Interest payments -3000
Interest received 8000
Taxes paid -20000
Net cash flow from operating activities =-56000
   
Cash flow from investing activities  
Purchases of equipment -20000
Purchases of property  
Proceeds from sale of equipment 16000
Proceeds from sale of property  
Net cash flow from investing activities -4000
   
Cash flow from financing activities  
Proceeds from borrowings 10000
Payments of borrowings (repayment of principal) -14000
Investments into business -20000
Drawings from business investments 32000
Net cash flow from financing activities 8000
   
Net increase/decrease in cash held -52000
   
Cash at beginning of period 3000000
Cash at end of period 2948000

 

 

 

 

 

 

 

 

 

 

Question 5

Your business is conducting analysis of its taxable income for the 2015/16 financial year. The company is classes as a small business entity, with annual turnover below $5 million dollars and 10 full-time employees.

A. Which taxes apply to this business?

B. What level of company tax is your business required to pay in 2015/16?

C. If the company purchases an asset for $6 million in 2015, and 6 months later sells the asset for $7 million in 2016, what tax will the company be required to pay?

D. Explain why a large credit union is generally considered a more tax effective operating entity than a medium credit union?

E. What elements of Australian Consumer Law (ACL) do we need to be aware of when conducting trading relations between your business and consumers?

 

 

 

Question 6

Why should each company seek to implement financial management software?

 

 

 

 

 

 

Question 7

What specific tasks does effective Financial Management software assist in managing?

 

 

Activity 1A checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
Q1 Learner can correctly explain how he/she would undertake research to review the reasons for the profit or loss. Yes         No

(Please circle)

1.1, 1.2
Q2 Learner can critically analyze the below statement on the importance of dates and initiatives in cash flow trends? Yes         No

(Please circle)

1.3
Q3 Learner can correctly explain how he/she would analyse his/her business’ cash flow trends. Yes         No

(Please circle)

 
  Learner can correctly explain the importance to analyse his/her business’ cash flow trends. Yes         No

(Please circle)

 
Q4 Learner can correctly analyse a provided cash flow (from the 2021/22 financial year). Yes         No

(Please circle)

1.4
  Learner can correctly identify potential explanations for performance. suggest improvements for the future. Yes         No

(Please circle)

 
  Learner can correctly suggest improvements for the future. Yes         No

(Please circle)

 
Q5

 

Learner can correctly identify taxes apply to identified business Yes         No

(Please circle)

1.5
  Learner can identify the level of company tax that needs to be paid in 2015/16 Yes         No

(Please circle)

 
  Learner can identify correctly what tax will the company be required to pay. Yes         No

(Please circle)

 
  Learner can explain why a large credit union is generally considered a more tax effective operating entity than a medium credit union. Yes         No

(Please circle)

 
  Learner can explain what elements of Australian Consumer Law (ACL) need to be aware of when conducting trading relations between your business and consumers. Yes         No

(Please circle)

 
Q6

 

Learner can correctly identify why the company needs seek to implement financial management software. Yes         No

(Please circle)

1.6
Q7 Learner can identify specific tasks does effective Financial Management software assist in managing. Yes         No

(Please circle)

 
Comments
Assessor’s comments here

 

 

 

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

 

Activity 2A

 

2.1 Use previous financial data to determine allocations for resources

2.2 Make informed estimates of new items for inclusion in budget

2.3 Prepare budgets in accordance with organisational requirements and statutory requirements

 

 

Question 1

Give an example of how you could use previous financial data to determine the allocation of resources, for this scenario, human resources in the hospitality industry.

 

 

 

 

 

 

 

 

 

Question 2

Identify a new item you could add to the budget in your business. Estimate the costs of the new item and how it would be included within the budget.

 

 

 

 

 

 

 

 

 

Question 3

Give an overview of the organisational policies and requirements you need to adhere to when you are preparing budgets.

 

Activity 2A checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
Q1 Learner can correctly provide example of how he/she could use previous financial data to determine the allocation of resources, for this scenario, human resources in the hospitality industry. Yes         No

(Please circle)

2.1
  Learner can explain the figures and how you would allocate resources accordingly. Yes         No

(Please circle)

 
Q2 Learner can correctly identify a new item you could add to the budget in your business. Yes         No

(Please circle)

2.2
  Learner can identify cost estimation of the new item and how it would be included within the budget – both upfront and ongoing costs. Yes         No

(Please circle)

 
Q3

 

Learner can correctly identify an overview of the organisational policies and requirements he/she needs to adhere to when you are preparing budgets Yes         No

(Please circle)

2.3
Comments
Assessor’s comments here

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

Activity 3A

3.1 Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations

3.2 Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions

3.3 Review profit and loss statements, cash flows and ageing summaries

3.4 Revise budgets, as required, to deal with contingencies

3.5 Maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations

3.6 Ensure compliance with due diligence

 

Question 1

Suppose that you are managing a supermarket. Outline the areas and departments in which the supermarket’s budget could be allocated for.

 

 

 

 

 

 

 

Question 2

Identify five (5) different ways staff could misappropriate company funds and suggest a resolution for each.

 

 

 

 

 

 

Question 3

Outline common types of fraud which can pose risk to a business.

 

 

 

 

 

 

 

 

 

Question 4

Please consider the information below. Which customers would you identify as high credit risk (default) and eligible for blacklisting, explain your reasoning?

 

Customer 1-30 days 31-60 days 61-90 days Over 90 days
Mario Pty Ltd. 400     200
JBS Co. 20      
Arganx Corp. 1000 400 300  
Total $ 1420 400 300 200

 

 

 

 

 

 

 

 

 

 

Question 5

Provide an example of a contingency that could occur at the workplace and explain how you would revise the budget to deal with it.

 

 

 

 

 

Question 6

Your business completed a transaction with a stationary retailer for $2000. Upon inspection of the audit trail, it is recognised that the transaction occurred twice, four seconds apart, yet only the regular order was received. As a finance manager, how would you rectify this scenario with the stationary retailer?

 

 

 

 

 

 

 

 

 

Question 7

As a manager, compliance is an essential component of maintaining daily operations. In this position, there are three essential components that compliance can be broken down into: budgets, reporting requirements, spending rules.

 

 

Activity 3A checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
Q1

 

Learner can outline the areas and departments in which the supermarket’s budget could be allocated for. Yes         No

(Please circle)

3.1
Q2

 

Learner can correctly identify five (5) different ways staff could misappropriate company funds and suggest a resolution for each. Yes         No

(Please circle)

3.2
Q3 Learner can brainstorm common types of fraud which can pose risk to a business. Yes         No

(Please circle)

 
Q4 Learner can correctly identify which customers would he/she should identify as high credit risk (default) and eligible for blacklisting, explain your reasoning. Yes         No

(Please circle)

3.3
Q5 Learner can provide an example of a contingency that could occur at the workplace and explain how you would revise the budget to deal with it. Yes         No

(Please circle)

 
Q6

 

Learner can correctly explain how he/she would rectify this scenario with the stationary retailer. Yes         No

(Please circle)

3.5
Q7

 

Learner can correctly identify three essential components that compliance can be broken down into: budgets, reporting requirements, spending rules. Yes         No

(Please circle)

3.6
Comments
Assessor’s comments here

 

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

 

Activity 4A

 

4.1 Ensure structure and format of reports are clear and conform to organisational and statutory requirements

4.2 Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making

4.3 Prepare recommendations to ensure financial viability of the organisation

4.4 Evaluate the effectiveness of financial management processes

 

 

Question 1

Input the missing values into the balance sheet.

Assets   Liabilities  
Current Assets   Current Liabilities  
       
Cash 20000 Accounts payable 400000
Accounts receivable 800000 Short-term notes 200000
(less doubtful accounts) 40000 Current portion of long-term notes 300000
Inventory   Interest payable 40000
Temporary investment 40000 Taxes payable 120000
Prepaid expenses 20000 Accrued expenses 100000
TOTAL CURRENT ASSETS 2120000 TOTAL CURRENT LIABILITIES  
Fixed Assets   Long-term liabilities  
       
Long-term investments 3800000 Mortgage  
Property 4200000 Other long-time liabilities 3000000
Plant and Equipment 1800000 TOTAL LONG-TERM LIABILITIES 9000000
       
Furniture 600000 Capital stock 1260000
    Paid in Capital 700000
    Retained earnings  
Total Net Fixed Assets   Total Shareholders’ Equity 2360000
       
TOTAL ASSETS   TOTAL LIABILITIES & EQUITY  

 

 

 

 

Question 2

Give three (3) examples of significant issues in the workplace which need to be communicated for review.

 

 

 

 

 

 

 

Question 3

Explain how you would use each of the following to determine the financial viability of the organisation:

 

· Cash flow

· Changes in business activity, including markets, goods or services traded

· Consolidation

· Expenses and overheads

· Labour costs, including decisions to move production to other locations or sites

· Loss

· Profit

· Write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 4

Outline how you would evaluate the effectiveness of your organisation’s financial management processes.

Activity 4A-4D checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
Q1 Learner can correctly input the missing values into the balance sheet. Yes         No

(Please circle)

 
Q2 Learner can correctly give three examples of significant issues in his/her workplace which need to be communicated for review. Yes         No

(Please circle)

 
 

 

Learner can correctly explain how to use cash flow to determine the financial viability of the organisation. Yes         No

(Please circle)

 
  Learner can correctly explain how to use changes in business activity, including markets, goods or services traded to determine the financial viability of the organisation. Yes         No

(Please circle)

 
  Learner can correctly explain how to use consolidation to determine the financial viability of the organisation. Yes         No

(Please circle)

 
Q3 Learner can correctly explain how to use expenses and overheads to determine the financial viability of the organisation. Yes         No

(Please circle)

4.3
  Learner can correctly explain how to use labour costs, including decisions to move production to other locations or sites to determine the financial viability of the organisation. Yes         No

(Please circle)

 
  Learner can correctly explain how to use loss to determine the financial viability of the organisation. Yes         No

(Please circle)

 
  Learner can correctly explain how to use profit to determine the financial viability of the organisation. Yes         No

(Please circle)

 
  Learner can correctly explain how to use write-offs to determine the financial viability of the organisation. Yes         No

(Please circle)

 
Q4

 

Learner can correctly outline how to evaluate the effectiveness of his/her organisation’s financial management processes. Yes         No

(Please circle)

4.4
Comments
Assessor’s comments here

 

 

 

 

 

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

 

 

 

 

 

Section C – Major Activity

This major activity consists of two assessment tasks.

For assessment task 1, the student is required to review existing financial information and prepare budgets.

 

What do students need in order to complete this assessment?

· Computer and Microsoft Office

· Access to the internet for research and to access web sites such as the Australian Tax Office

· 2019 – 2020 Profit and Loss Statement

· 2019 – 2020 Cash flow statements

· Financial performance report template

· Business Plan Grow Management Consultants

· Financial Management Policy and procedure

· Conference/e-book costs and income

 

What do students need to submit?

· Financial performance report

· Completed budgets for 2020 – 2021

 

 

Instructions to students

Analyse finances and prepare budgets

Grow Management Consultants is a consultancy business specialising in leadership consultancy and has been operational for the last five years. The company offers a range of services to assist companies to assess leadership behaviour of existing managers and performance metrics and to design and implement customised leadership programs based on the assessment. Services are offered Australia-wide.

 

The company employs a General Manager (you), 2 Principal Consultants (who are also Directors), 1 Senior Consultant, an Administration Officer and Receptionist.

Over the last two years, the company has diversified and offers regular professional development workshops on all aspects of leading and managing staff. These workshops are conducted approximately every 3 months in all major cities including Sydney, Brisbane and Melbourne. In 2018 – 2019, the company ran a total of 36 workshops. The company has also recently produced an E-book about leadership techniques.

 

The intention is to replace the workshops with the annual conference in the next financial year as the workshops were not well attended and client feedback indicates a personalised, company focused approach in the form of consulting services is the service of choice.

The E-book has had reasonable sales but there needs to be a wider selection of books, as well as more marketing. The plan is to generate $10,000 worth of sales for the e-books during the next financial year and increasing over time.

 

As the General Manager for the company and with responsibility for finances, you are currently completing the financial planning for the year ahead. This involves a review of the company’s business plan, previous year’s profit and loss statement, the current business plan and strategic directions and cash flow statements. Based on the review, you will be establishing budgets and allocating funds. In developing the budget you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting services and executive search.

As per the business plan, the company plans to run an annual conference starting in 2020. The costs for the conference have been estimated by the Principal Consultant as set out in the Estimated Conference Costs document. Conference attendance is aimed at 100 people paying $750 each.

 

The Principal Consultant has also asked you to review the current accounting software used by the business. The company is currently using MYOB but as it has grown, the Principal Consultant wishes to review whether this is the best accounting software for the business. He has also requested that the software have a cloud feature.

 

Complete the following activities:

1. Conduct research in preparation for your financial performance report.

· Review the scenario information above and the 2018-2019 Profit and Loss Statements and the 2018-2019 Cash Flow Statements provided to you. Using this information, identify areas of the business that have generated a profit and those that have generated a loss.

· Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you, economic conditions and business trends that may have resulted in the profit or loss. You will be required to report on your findings in the financial performance report as outlined below.

· Conduct research on financial software systems as per the scenario information. Make notes for use in your report.

 

2. Prepare a financial performance report for the Principal Consultants using the template provided by your assessor that includes an:

 

Overview of the purpose of the report.

· Analysis of the previous year’s (2018-2019) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, gross profit/loss margin and net profit/loss margin.

· Analysis of overall business performance including the performance of each of the income streams for 2019-2020.

· Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.

· Analysis of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates.

· An analysis of cash flow trends as per the cash flow statements.

· Review and analysis of at least three other financial software packages that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used.

3. Develop budget forecasts for the next financial year.

· Ensure that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure.

· As per the organisation’s financial management policy and procedure, the budget forecasts are to be submitted in Excel. Develop a suitable format within Excel for your budget.

· Ensure that your budget includes the estimated income and costs for the conference and e-book to be implemented in 2020. This is provided to you as a separate document.

· Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as per the data indicated in the document.

 

4. Circulate report and budgets

· Ensure your documents are accurate and error free, and set out in a standard business format.

· Submit the completed report and budgets to the learning management system (Moodle)

 

Assessment task 2: Review project

Task summary:

This assessment task requires the student to review the profit and loss statement for 2019 – 2020, as well as the cash flow statement for Grow Management Consultants.

 

What do students need to complete this assessment?

 

· Computer and Microsoft Office

· Access to the internet for research

· Profit and Loss Account 2019 – 2020

· Cash flow statements 2019 – 2020.

 

 

What do students have to submit?

 

· Report on performance, including revisions to budget.

 

 

Instructions to students:

It is now one year later and you are required to review the profit and loss account for 2019 – 2020, as well as the cash flow statement.

The Principal Consultant has also asked you to focus on reviewing the conference costs as while there was very positive feedback from the conference and the company wishes to run it next year, there needs to be revisions to the budget and a potential price increase for the conference fee to make the conference profitable.

The Principal Consultant would like you to report on a proposed conference fee given a 10% increase in all the recorded costs for the conference as shown in the profit and loss statement (and that match the conference costs for the document you reviewed in Assessment Task 1) and assuming 70 people will attend the 2020 conference. The Principal Consultant would also like a 20% return on the conference costs.

 

 

 

 

Complete the following activities:

 

1. Analyse financial information

 

Analyse the information provided in the profit and loss account and cash flow statement including:

 

· Review of overall performance and gross/net profit margins.

· Calculation of variation in actual versus budgeted amounts for each income source.

· Calculation of variation in actual versus budgeted costs, focusing particularly on conference costs.

· Recommended revisions to the budget for conference costs for 2020 – 2021.

Proposed conference fee for 2021 conference assuming attendance of 70 people and to make a profit of at least 20%.

 

2. Based on your analysis of the profit and loss account, develop and submit a short report that includes your analysis as above.

 

Major activity checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Marking checklist Performance Criteria
  Assessment1
1.

 

Conduct research in preparation for your financial performance report.  

Performance evidence, Knowledge Evidence and foundation skills

  Learner can correctly conduct research in preparation for the financial performance report Yes         No

(Please circle)

 
  Learner can correctly review the provided scenario information and the 2018-2019 Profit and Loss Statements and the 2018-2019 Cash Flow Statements. Yes         No

(Please circle)

 
  Learner can correctly use provided information to identify areas of the business that have generated a profit and those that have generated a loss. Yes         No

(Please circle)

 
  Learner can understand and explain a review of the financial data provided, including economic conditions and business trends that may have resulted in the profit or loss. Yes         No

(Please circle)

 
  Learner can conduct research on financial software systems as per the scenario information. Yes         No

(Please circle)

 
2. Prepare a financial performance report for the Principal Consultants using the template provided by your assessor that includes an:  
  Learner can include revenue generated, cost of sales, gross profit/loss margin and net profit/loss margin. Yes         No

(Please circle)

 
  Learner can complete analysis of overall business performance including the performance of each of the income streams for 2019-2020. Yes         No

(Please circle)

 
  Learner can outline reasons for profit or loss based on his/her analysis of the data and research on economic conditions and business trends. Yes         No

(Please circle)

 
  Learner can analyse the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates. Yes         No

(Please circle)

 
  Learner can analyse cash flow trends as per the cash flow statements. Yes         No

(Please circle)

 
  Learner can review and analyse at least three other financial software packages that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used. Yes         No

(Please circle)

 
3. Develop budget forecasts for the next financial year.  
  Learner can ensure that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure. Yes         No

(Please circle)

 
  Learner submitted the budget forecasts through Excel with a suitable format. Yes         No

(Please circle)

 
  Learner can ensure that budget includes the estimated income and costs for the conference and e-book to be implemented in 2020. Yes         No

(Please circle)

 
4. Circulate report and budgets  
  Learner can ensure your documents are accurate and error free, and set out in a standard business format. Yes         No

(Please circle)

 
  Learner can successfully submit the completed report and budgets to the learning management system (Moodle) Yes         No

(Please circle)

 
1.

 

 

Assessment task 2  
  Analyse financial information Yes         No

(Please circle)

 
  Learner can review of overall performance and gross/net profit margins. Yes         No

(Please circle)

 
  Learner can calculate the variation in actual versus budgeted amounts for each income source. Yes         No

(Please circle)

 
  Learner can calculate of variation in actual versus budgeted costs, focusing particularly on conference costs. Yes         No

(Please circle)

 
  Learner can recommend revisions to the budget for conference costs for 2020 – 2021. Yes         No

(Please circle)

 
  Learner can develop and submit a short report including required analysis above Yes         No

(Please circle)

 
Comments   Yes         No

(Please circle)

Assessor’s comments here:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The learner’s performance was: Not yet satisfactory Satisfactory

 

Competency record to be completed by the assessor

This section should be completed by the trainer/assessor to document the overall outcomes of the learner’s assessments in Learners Workbook. The table below indicates whether the learner is deemed competent or not competent

 

Learner’s name  
Assessor’s name  
Unit of Competence

(Code and Title)

 
Date  
Has the learner completed all required assessments in this workbook to a satisfactory standard?

 

Yes No

(Please circle)

Comments from trainer/assessor:

 

 

 

 

 

 

 

 

 

 

 

 

 

Learner is deemed Not competent Competent
Assessor’s signature  

 

 

 

 

 

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