CHC62015 Advanced Diploma of Community Sector Management

CHC62015 Advanced Diploma of Community Sector Management

Learner Assessment

BSBFIM601 Manage Finances

Learners Name: Learners ID: Australian College of professional Studies TOID 41036

5/41-45 Railway Av, Werribee VIC 3030

Ph: (03) 87141222 |Mob: 0422 724 316

Email: info@acpstudies.edu.au

Website: www.acpstudies.edu.auThis page is intentionally blank.

Assessment Conditions

Unit purpose/application

This unit describes the skills and knowledge required to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve the required outputs for the business unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial activity.

It applies to individuals who have managerial responsibilities which include overseeing the management of financial and other resources across a business unit, a series of business units or teams, or an organisation. It covers all areas of broad financial management. In a larger organisation, this work would be supported by specialists in financial management.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

What the student can expect to learn by studying this unit of competency

Plan for financial management

Establish budgets and allocate funds

Implement budgets

Report on finances

Training and assessment resources required for this unit of competency

The student will have access to the following:

Learner guide

PowerPoint presentation

Unit Assessment Pack (UAP)

Access to other learning materials such as textbooks

The resources required for these assessment tasks also include:

Access to a computer, the Internet and word-processing system such as MS Word

An operational business environment to implement the learning plan

Computer technology and documentation as required

Codes of practice and standards issued by government regulators or industry groups

Submission instructions

Your trainer/assessor will confirm assessment submission details for each assessment task.

Academic integrity, plagiarism and collusion

Academic Integrity:

Academic Integrity is about the honest presentation of your academic work. It means acknowledging the work of others while developing your own insights, knowledge and ideas.

As a student, you are required to:

Undertake studies and research responsibly and with honesty and integrity

Ensure that academic work is in no way falsified

Seek permission to use the work of others, where required

Acknowledge the work of others appropriately

Take reasonable steps to ensure other students cannot copy or misuse your work.

Plagiarism:

Plagiarism means to take and use another person's ideas and or manner of expressing them and to pass them off as your own by failing to give appropriate acknowledgement. This includes material sourced from the internet, RTO staff, other students, and from published and unpublished work.

Plagiarism occurs when you fail to acknowledge that the ideas or work of others are being used, which includes:

Paraphrasing and presenting work or ideas without a reference

Copying work either in whole or in part

Presenting designs, codes or images as your own work

Using phrases and passages verbatim without quotation marks or referencing the author or web page

Reproducing lecture notes without proper acknowledgement.

Collusion:

Collusion means unauthorised collaboration on assessable work (written, oral or practical) with other people. This occurs when a student presents group work as their own or as the work of someone else.

Collusion may be with another RTO student or with individuals or students external to the RTO. This applies to work assessed by any educational and training body in Australia or overseas.

Collusion occurs when you work without the authorisation of the teaching staff to:

Work with one or more people to prepare and produce work

Allow others to copy your work or share your answer to an assessment task

Allow someone else to write or edit your work (without rto approval)

Write or edit work for another student

Offer to complete work or seek payment for completing academic work for other students.

Both collusion and plagiarism can occur in group work. For examples of plagiarism, collusion and academic misconduct in group work please refer to the RTOs policy on Academic integrity, plagiarism and collusion.

Plagiarism and collusion constitute cheating. Disciplinary action will be taken against students who engage in plagiarism and collusion as outlined in RTOs policy.

Proven involvement in plagiarism or collusion may be recorded on students academic file and could lead to disciplinary action.

Other Important unit specific Information

N/A

Unit outcome

This unit is not graded and the student must complete and submit all requirements for the assessment task for this cluster or unit of competency to be deemed competent.

Students will receive a 'satisfactorily completed' (S) or 'not yet satisfactorily completed (NS) result for each individual unit assessment task (UAT).

Final unit result will be recorded as competency achieved/competent (C) or competency not yet achieved/not yet competent (NYC).

Prerequisite/s

Nil

Co-requisite/s

Nil

Foundation Skills

The Foundation Skills describe those required skills (learning, oral communication, reading, writing, numeracy, digital technology and employment skills) that are essential to performance. Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Relevant Legislation

Australian Human Rights Commission Act 1986

Age Discrimination Act 2004

Disability Discrimination Act 1992

Racial Discrimination Act 1975

Sex Discrimination Act 1984

The Privacy Act 1988 (Privacy Act) and Australian Privacy Principles (APPs)

Occupational Health and Safety Act2004 Applicable in Victoria

Work Health and Safety Act 2011

Principles of assessment and rules of evidence

All assessment tasks will ensure that the principles of assessment and rules of evidence are adhered to.

The principles of assessment are that assessment must be valid, fair, flexible, reliable and consistent. The rules of evidence state that evidence must be sufficient, valid, current and authentic.

AQF Level

AQF levels and the AQF levels criteria are an indication of the relative complexity and/or depth of achievement and the autonomy required to demonstrate that achievement.

All assessment tasks must ensure compliance with the requirements of AQF level and the AQF level criteria. For more information, please visit http://www.aqf.edu.au/

Further Information

For further information about this unit go to https://training.gov.au/Training/Details/BSBFIM601Additional Information

This information will be managed by the provisions of the Privacy Act and the Freedom of Information Act.)

Students are required to satisfactorily complete and submit all assessment tasks that contribute to the assessment for a unit.

Students will be provided with one more attempt to complete this Unit assessment pack (UAP) if trainer/assessor deems them not satisfactorily completed (NS) in any Unit assessment task (UAT).

Unit Pre-Assessment Checklist (UPAC) will be reviewed by the trainer/assessor to ensure the student is ready for the assessment.

Feedback regarding this Unit Assessment Pack (UAP) can be emailed to the compliance and quality assurance department/administration department in your RTO for continuously improving our assessment and student resources.

Feedback to student

Feedback on students assessment performance is a vital element in their learning. Its purpose is to justify to students how their competency was assessed, as well as to identify and reward specific qualities in their work, to recommend aspects needing improvement, and to guide students on what steps to take.

Feedback defines for students what their trainer/assessor thinks is important for a topic or a subject. At its best, feedback should:

Be provided for each Unit Assessment Task (UAT)

Guide students to adapt and adjust their learning strategies

Guide trainers/assessors to adapt and adjust teaching to accommodate students learning needs

Be a pivotal feature of learning and assessment design, not an add-on ritual

Focus on course and unit learning outcomes

Guide students to become independent and self-reflective learners and their own critics

Acknowledge the developmental nature of learning

If students have not received proper feedback, they must speak to compliance and quality assurance department/administration department in the RTO/person responsible for looking after the quality and compliance services of the RTO.

For more information, please refer to RTO Student Handbook.

Information for Students

Please make sure you have completed the necessary prior learning before attempting this assessment.

Please make sure your trainer/assessor clearly explained the assessment process and tasks to be completed.

Please make sure you understand what evidence is required to be collected and how.

Please make sure you know your rights and the Complaints and Appeal process.

Please make sure you discuss any special needs or reasonable adjustments to be considered during the assessment (refer to the Reasonable Adjustments Strategy Matrix and negotiate these with your trainer/assessor).

Please make sure that you have access to a computer and the internet (if you prefer to type the answers).

Please ensure that you have all the required resources needed to complete this Unit Assessment Task (UAT).

Due date of this assessment task is according to your timetable.

In exceptional (compelling and compassionate) circumstances, an extension to submit an assessment can be granted by the trainer/assessor.

Evidence of the compelling and compassionate circumstances must be provided together with your request for an extension to submit your assessment work.

Request for an extension to submit your assessment work must be made before the due date of this assessment task.

Assessment Task 1- Unit Knowledge Test (UKT)

Assessment type:

Written Questions

Assessment task description:

This is the first (1) unit assessment task you have to successfully complete to be deemed competent in this unit of competency.

The Unit Knowledge Test is comprised of twenty-five (25) written questions.

You must respond to all questions and submit them to your Trainer/Assessor.

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 - you will be notified by your Trainer/Assessor when results are available.

Applicable conditions:

This knowledge test is untimed and are conducted as open book tests (this means you are able to refer to your textbook during the test).

You must read and respond to all questions.

You may handwrite/use computers to answer the questions.

You must complete the task independently.

No marks or grades are allocated for this assessment task. The outcome of the task will be Satisfactory or Not Satisfactory.

As you complete this assessment task you are predominately demonstrating your written skills and knowledge to your trainer/assessor.

The trainer/assessor may ask you relevant questions on this assessment task to ensure that this is your own work.

Resubmissions and reattempts:

Where a students answers are deemed not satisfactory after the first attempt, a resubmission attempt will be allowed.

You must speak to your Trainer/Assessor if you have any difficulty in completing this task and require reasonable adjustments (e.g. can be given as an oral assessment).

For more information, please refer to your RTO Student Handbook.

Location:

This assessment task may be completed in a classroom, learning management system (i.e. Moodle), workplace, or independent learning environment.

Trainer/Assessor will provide student further information regarding the location for completing this assessment task.

Instructions for answering written questions:

Complete a written assessment consisting of a series of questions.

You will be required to correctly answer all the questions.

Do not start answering questions without understanding what is required from you. Read the questions carefully and critically analyse them for a few seconds, this will help you to identify what is really needed.

Your answers must demonstrate an understanding and application of relevant concepts, critical thinking, and good writing skills.

Be concise to the point and write answers according to the given word-limit to each question and do not provide irrelevant information. Be careful, quantity is not quality.

Be careful to use non-discriminatory language. The language used should not devalue, demean, or exclude individuals or groups on the basis of attributes such as gender, disability, culture, race, religion, sexual preference or age. Gender inclusive language should be used.

When you quote, paraphrase, summarise or copy information from the sources you are using to write your answers/research your work, you must always acknowledge the source.

How your trainer/assessor will assess your work?

This assessment task requires the student to answer all the questions.

Answers must demonstrate the students understanding and knowledge of the unit.

If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).

If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome is Not Yet Competent (NYC).

Once all assessment tasks allocated to this Unit of Competency have been undertaken, trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome will be either Competent (C) or Not Yet Competent (NYC).

The Assessment Plan is available with the Unit Assessment Pack (UAP) Cover Sheet.

Purpose of the assessment

This assessment task is designed to evaluate students knowledge essential to manage finances in a range of contexts and industry settings & Knowledge regarding to the following:

Knowledge to regulate allocations for resources from previous financial data.

Knowledge to analysis statutory requirements for compliance and liabilities for tax.

Knowledge to identify risks by checking misappropriation of funds.

Knowledge to check the existing software for financial management.

Knowledge to classify compliance with due diligence.

Knowledge to analysis reasons for previous profit and loss.

Knowledge to make approximations of new items for inclusion in budget.

Knowledge to ensure financial viability of the organisation.

Knowledge to establish areas which have generated a profit or loss.

Knowledge to estimate the effectiveness of financial management processes.

Knowledge to deal with contingencies from revised budgets.

Knowledge to inspect cash flow trends.

Knowledge to make budgets according toorganisational requirements and statutory requirements.

Knowledge to assess business plan to generate resources in the next financial cycle.

Knowledge to certify structure andformat of reports are clear and conform to the requirements.Instructions:

This is an individual assessment.

The purpose of this assessment task is to assess the students knowledge essential to manage risks in a range of contexts and industry settings.

To make full and satisfactory responses you should consult a range of learning resources, other information such as handouts and textbooks, learners resources and slides.

All questions must be answered in order to gain competency for this assessment.

You may attach a separate sheet if required.

You must include the following particulars in the footer section of each page of the attached sheets:

Student ID or Student Name

Unit ID or Unit Code

Course ID or Course Code

Trainer and assessor name

Page numbers

You must staple the loose sheets together along with the cover page.

You must attach the loose sheets chronologically as per the page numbers.

Correction fluid and tape are not permitted. Please do any corrections by striking through the incorrect words with one or two lines and rewriting the correct words.

Resources required to complete the assessment task:

Computer

Internet

MS Word

Printer or e-printer

Adobe acrobat/reader

Learning management system

Please clearly record your name and sign below stating you understand the assessment instructions and requirements and consent to being assessed according to the assessment requirements

Learners Name: Learners Signature Date: Trainer / Assessor Name Trainer / Assessor Signature Date: Question 1: Explain the following methods of analysing a financial statement, in 30-50 words each:

Vertical analysis

Horizontal Analysis

Ratio Analysis

Trend Analysis

Question 2: What are the legislative requirements that a public authority must comply with to maintain financial probity? Write your answer in 100-150 words.

Question 3: Explain the following principles of accounting and financial systems, in 30-50 words each:

Accrual principle

Cost principle.

Going concern principle.

Revenue recognition principle.

Question 4: What are the advantages of a financial statement analysis? Write your answer in 50-100 words.

Question 5: How is the following calculated in a Profit and Loss Statement:

Gross profit

Gross profit margin

Operating profit

Net profit

Write your answer in 100-150 words.

Question 6: How often should you review a business plan? Write your answer in 100-150 words.

Question 7: How would you use the following ratios to analyse the organisations cash flow? Explain in 30-50 words each:

Cashflow solvency

Cashflow margin

Cashflow return on assets

Question 8: What obligations does a business have with regards to taxation in Australia? Write your answer in 200-250 words.

Question 9: When choosing an accounting software for your business, what should you consider as important factors? List any six (6).

Question 10: How is an organisation's financial performance measured and managed? Write your answer in 50-100 words.

Question 11: What are requirement of the Australian Tax Office when establishing a new business? Explain in 50-100 Words.

Question 12. Answer the following:

What Is Financial Statement Fraud? Write your answer in 30-50 words.

How can reconciliation of bank accounts and management reviewof periodic account reconciliations (bank reconciliations, petty cash, etc.) and bank statements manage misappropriation of funds? Write your answer in 50-100 words.

Question 13: Why is it required to use previous financial data to determine allocations for resources for next budget? Explain in 50-100 words.

Question 14: How can planning help a business become viable and profitable? Write your answer in 50-100 words.

Question 15: List any ten (10) basic steps to follow when preparing a budget.

Question 16: List five (5) circulation methods that are used to circulate budgets to managers and supervisors of the organisations

Question 17: Assume that you are working as an Accountant for an organisation. The organisation wants to conduct a financial statement audit as part of closing the financial books and before filing an income statement during closing. Explain in 350-400 words, the four (4) steps that you will take to conduct the audit.

Question 18: List five (5) basic types of financial statement fraud that you can find when reviewing financial statements.

Question 19: Explain in 150-200 words, the Budget Revision Process.

Question 20: Considering yourself as an Accountant, answer the following questions:

What is due diligence? Write your answer in single sentence.

When should you perform due diligence? Write your answer in 30-50 words.

What should you review? Write your answer in 30-50 words.

Question 21: Answer the following:

What is the benefit of conducting a risk analysis for financial statement items and its accompanying notes? Write your answer in 30-50 words.

Explain in 250-300 words, the four (4) practical steps in conducting a risk analysis.

Question 22: Answer the following:

Explain in 100-150 words, the significance and objective of Accounting standard AASB 101.

Where is the standard Aus 1.1 applicable? Write your answer in 30-50 words.

Question 23: Answer the following:

Explain in 30-50 words, IPSAS 1 - Presentation of Financial Statements .

What are the key differences between IPSAS 1 and AASB 101? Write your answer in 50-100 words.

Question 24: Explain in 150-200 words,the Financial Management and Accountability Act 1997(FMA Act).

Question 25: Assume that a nursing home determines that its cost of electricity and supplies are approximately $10 per room per hour (MH). It also knows that the supervision,and otherfixed costsare approximately $40,000 per month. Typically, the nursing home operates between 7,000 and 11,000 hours per month based on the number of rooms at 45 and other running facilities. Based on this information, what would be the flexible budget for each month?

Assessment Task 2- Unit Project

Assessment type:

Unit Project (UP) - Prepare Budgets

Assessment task description:

This is the second (2) assessment task you have to successfully complete to be deemed competent in this unit of competency.

This assessment task requires you to complete a Unit project.

You must prepare budgets in order to successfully complete this project.

You will receive your feedback within two weeks - you will be notified by your trainer/assessor when results are available.

You must attempt all activities of the project for your trainer/assessor to assess your competency in this assessment task.

Applicable conditions:

Part A of this project is untimed and are conducted as open book tests (this means you are able to refer to your textbook).

You must use the budget templates given in the assessment task.

Student must follow the budget templates given in the assessment task to prepare the budgets in MS-Excel.

Time limit to complete the part B of this assessment task is 10-15 minutes.

You must read and respond to all criteria of the project.

You may handwrite/use computers to answer the criteria of the project.

You must complete the task independently.

No marks or grades are allocated for this assessment task. The outcome of the task will be Satisfactory or Not Satisfactory.

As you complete this assessment task you are predominately demonstrating your practical skills, techniques and knowledge to your trainer/assessor.

The trainer/assessor may ask you relevant questions on this assessment task to ensure that this is your own work.

Resubmissions and reattempts:

Where a students answers are deemed not satisfactory after the first attempt, a resubmission attempt will be allowed.

You must speak to your Trainer/Assessor if you have any difficulty in completing this task and require reasonable adjustments (e.g. can be given as an oral assessment).

For more information, please refer to your RTO Student Handbook.

Location:

This assessment task may be completed in a classroom, learning management system (i.e. Moodle), workplace, or independent learning environment.

Trainer/Assessor will provide student further information regarding the location of completing this assessment task.

General Instructions for attempting the project:

This assessment task is in continuation to the previous task.

You will prepare budgets in this assessment task.

You will be expanding the knowledge and skills acquired during the previous assessment task.

Instructions to complete the unit project is provided within the assessment task.

You will be required to correctly attempt all activities of this assessment task.

How your trainer/assessor will assess your work?

This assessment task requires the student to successfully complete and submit a project.

Answers must demonstrate the students understanding and skills of the unit.

You will be assessed according to the provided performance checklist/ performance criteria.

Assessment objectives/ measurable learning outcome(s) are attached as performance checklist/ performance criteria with this assessment task to ensure that you have successfully completed and submitted the assessment task.

If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).

If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome is Not Yet Competent (NYC).

Once all assessment tasks allocated to this Unit of Competency have been undertaken, trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome will be either Competent (C) or Not Yet Competent (NYC).

The Assessment Plan is available with the Unit Assessment Pack (UAP) Cover Sheet.

Purpose of the assessment task:

This assessment task is designed to evaluate students following skills and abilities:

Skills to create a budget for financial management.

Skills to find out financial data and cash flow trends.

Skills to read and find aging summaries.

Skills to identify the organisational requirements.

Skills to implement business plan.

Skills to implement statutory requirements for tax law compliance in the budget.

Skills to identify compliance requirements for the Corporations Act 2001.

Skills to recommend commercially available software.

Skills to discuss the implementation of principles of accounting.

Skills to outline critical dates/initiatives that will require or generate resources.

Skills to make informed estimates of new items for inclusion in budget.

Skills to recommend new or modified internal controls that could improve risk management and maintenance of audit trails.

Reading skills to collect, review, interpret/understand and analyse/review text-based business information from a range/number of sources

Written and oral/speech communication skills to organise and deliver information to effectively communicate manage finance processes to a range of stakeholders/interested people.

Numeracy/numbers- mathematical skills to interpret/understand mathematical data when reviewing and analysing scenario/setting-situation business information

Instructions to complete this assessment task:

This assessment task is divided into following two parts:

Part A: Prepare budgets

Part B: Presentation/Role play

This assessment task requires you to assume/ take on the role of a Business Manager at Pearl food distributors ltd. (organisation as given in case study).

You must identify and analyse business plan summary, income statement and statement of financial position given in case study to prepare budgets.

You must follow the budget templates given in the assessment task to prepare the budgets in MS-Excel.

Time limit to complete the part B of this assessment task is 10-15 minutes.

Your trainer/assessor will assess the performance as per the performance criteria and checklist provided

Please write your responses in the template provided.

You may attach a separate sheet if required.

You must include the following particulars in the footer section of each page of the attached sheets:

Student ID or Student Name

Unit ID or Unit Code

Course ID or Course Code

Trainer and assessor name

Page numbers

You must staple the loose sheets together along with the cover page.

You must attach the loose sheets chronologically as per the page numbers.

Correction fluid and tape are not permitted. Please do any corrections by striking through the incorrect words with one or two lines and rewriting the correct words.

This submission must be well presented and follow the guidelines and instructions provided.

Please follow the format as indicated in the template section below.

One of the most important steps that you can take: proofread your project.

Appropriate citations are required.

All RTO policies are in effect, including the plagiarism policy.

Resources required to complete the assessment task:

Computer

Internet

MS Word

Printer or e-printer

Adobe acrobat/reader

Learning management system

Calculator

Please clearly record your name and sign below stating you understand the assessment instructions and requirements and consent to being assessed according to the assessment requirements.

Learners Name: Learners Signature Date: Trainer / Assessor Name Trainer / Assessor Signature Date: Unit Task:

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.

This project task will be divided into following two (2) parts:

Part 1: Prepare budgets

Part 2: Presentation/Role play Scenario 1-

Assume that you have been appointed as the Business Manager at ABC Nursing Home and have been a facility manager for the past three years. It is a 12-facility company located in Victoria and provides a high-quality of service to the clients and their families.

ABC Nursing Home has become a renowned name in the industry.

It has grown over the past five years from a single facility to the current state. It prides itself on quality service. This has been the main reason that the company has seen a stagnant increase in the sales and profits. At present, it employs over 120 staff.

It is a proprietary limited company (ACN 006 123 123) registered with the Australian Securities and Investment Commission.

Computer software requirement

The current accounting information system used by ACB Nursing Home has not been able to provide adequate and sufficient analysis of its revenue and expenditure that has led to difficulties in making informed estimates of future profits.

The future estimates of the profits that the company can make are not based on the statistical figures and facts. They are merely predictions of top management. The board of directors feel that to have more realistic figures on the companys future growth and profit, they need to use an accounting software that can analyse the past results and trends that took place in previous years. This will not only help them to identify the future profits but will also help them to expand the business.

So, they have decided to use a new system that can manage the financial information more effectively and have the capabilities to analyse the data and provide realistic statistics to create budgets and forecasts to provide the owner and leadership team the ability to measure where the company was at and where it is headed financially. The senior management team believe that better information will allow them to prepare for the future, allocate resources more efficiently and improve profit margins.

The senior management wants you to recommend new system. They have provided you with the guidelines for selection of the new system. The system must:

comply with all the legislative requirements.

calculate all payroll requirements

prepare information for compliance requirements

track stock, work in progress, orders, jobs and other task management requirements

handle multiple bank accounts and automatically imports and processes bank data

be able to produce separate financial reports for each business or department within the business

easily integrate with other systems you are operating such as online payments, point of sale equipment, customer relationship management records, stock records and payroll software

keep detailed records on clients

allow you to manage permissions so that users only have access to the parts of the system that is relevant to their work

allow users to securely access data remotely (cloud computing)

have no ongoing license fees

They are well aware of the fact that checking the software for the requirements will take time. The new budget is also expected to be projected this month. So, they want this to be done after preparation of the budget for year 2018/2019.

Part 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 companys 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.

Task-

The CEO wants you to prepare the following budgets for 2018/19 financial year:

Sales and profit budget

GST Cash flow budget

Debtor ageing summary

The budgets must be prepared on quarterly basis.

The CEO has provided you the following information from the previous financial year budgets:

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

Business plan summary:

Business Plan Summary

Sales are expected to grow to 18,000,000 in next financial year.

Expenses will be same as previous year. Though, some of the expenses will increase. Some expenses will increase by direct amount and other expenses will be accounted with the inflation rate. Information on expenses that will have increase by direct amount is given in meeting notes.

Inflation rate for expenses is given below. The expenses that will be impacted by inflation are as follow: (further information on expenses in given in meeting notes with accountant)

Cleaning, repair and maintenance expenses (3%)

Electricity (3%)

Wages and salaries (10%)

Fringe benefit tax (5%)

Website and marketing expense (10%)

Profits will be built by making a secure client base. The total cost to do so will be $12,000 to be included in advertising expenses.

To reduce the principle of loan amount by $80,000 from the current year profits generated.

Manage debtors more efficiently and reducing the mount in trade debtor account by $200,000.

Business Plan Summary

Sales are expected to grow to 18,000,000 in next financial year.

Expenses will be same as previous year. Though, some of the expenses will increase. Some expenses will increase by direct amount and other expenses will be accounted with the inflation rate. Information on expenses that will have increase by direct amount is given in meeting notes.

Inflation rate for expenses is given below. The expenses that will be impacted by inflation are as follow: (further information on expenses in given in meeting notes with accountant)

Cleaning, repair and maintenance expenses (3%)

Electricity (3%)

Wages and salaries (10%)

Fringe benefit tax (5%)

Website and marketing expense (10%)

Profits will be built by making a secure client base. The total cost to do so will be $12,000 to be included in advertising expenses.

To reduce the principle of loan amount by $80,000 from the current year profits generated.

Manage debtors more efficiently and reducing the mount in trade debtor account by $200,000.

Income statements for year 2016/17 and 2017/18

ABC Nursing Home Pty LTD.

For 12 months ended

Profit & Loss Actuals 2016/17 2017/18

Revenue Sales 12,600,000 14,260,000

Clientele 5,200,000 6,100,000

Gross Profit 7,400,000 8,160,000

Expenses Interest Expense 90,000 88,000

Depreciation expenses 160,000 160,000

Insurance expenses 24,000 24,600

Supplies - 4,300

Advertising 246,000 260,000

Cleaning, Repairs & Maintenance 82,000 84,000

Rent 2,500,000 2,750,000

Website marketing expenses 14,000 16,000

Electricity Expense 30,000 32,000

Fringe Benefits Tax 34,000 38,000

Wages & Salaries 2,200,000 2,400,000

Superannuation 209,000 228,000

Workers Compensation 44,000 48,000

Total Expenses 5,633,000 6,132,900

Net Profit (Before Tax) 1,767,000 2,027,100

Income Tax 530,100 608,130

Net Profit 1,236,900 1,418,970

Statement of financial position

ABC Nursing Home Pty LTD.

Statement of Financial Position

As at 30 June 2016/17 2017/18

Assets Current Assets Cash on Hand 90,000 98,000

Cheque Account 180,000 220,000

Deposits Paid 1,200,000 1,200,000

Trade Debtors 1,115,000 1,230,000

Merchandise Inventory 1,600,000 1,720,000

Total Current Assets 4,185,000 4,468,000

Fixed Assets Cost of motor vehicle 600,000 600,000

Accumulated Dep (120,000) (120,000)

Cost of Furniture & Fixtures 2,400,000 2,600,000

Furniture & Fixtures Accumulated Dep (720,000) (780,000)

Cost of Office Equip 500,000 500,000

Office Equip Accumulated Dep (100,000) (120,000)

Total Fixed Assets 2,560,000 2,680,000

Total Assets 6,745,000 7,148,000

Liabilities Current Liabilities Credit card 32,000 36,000

Trade Creditors 700,000 730,000

GST Collected 1,260,000 1,426,000

GST Paid (840,000) (890,000)

Superannuation Payable 209,000 228,000

income Tax Payable 530,100 608,130

Total Current Liabilities 1,891,100 2,138,130

Long-Term Liabilities - Bank Loans 1,800,000 1,600,000

Total Liabilities 3,691,100 3,738,130

Equity Owner/Shareholders Equity 700,000 700,000

Retained Earnings 1,000,000 1,200,000

Dividends Paid (397,100) (497,230)

Current Year Earnings 1,767,000 2,027,100

Total Equity 3,053,900 3,409,870

Notes provided by the CEO:

Notes from meeting with Accountant:

Sales target for the year 2018/2019 set in business plan are 18,000,000. The proportion expected from the analysis of previous study for each quarter is as follow:

Quarter 1: 22%

Quarter 2: 30%

Quarter 3: 21%

Quarter 4: 27%

Cost of goods sold will be in same proportion as 2017/18.

Rent expense will increase by 10% this year.

Supplies will be same as previous year.

Interest expense for the current year will decrease by the amount of $6,000.

A new expense is to be included in the new budget that will be under the name of cleaning and maintenance labour charges. 60% of the amount from cleaning and maintenance expenses will be included in this expense. Only 40% will be accounted in cleaning and maintenance expense.

Depreciation will be same as previous year.

Expected increase in expenses: (inflation rate given in business plan summary)

Cleaning, repair and maintenance expenses

Electricity

Wages and salaries

Fringe benefit tax

Website and marketing expense

The following expenses will be paid in equal amount for each quarter:

Rent expense

Interest expense

Insurance expense

Website marketing expense

Depreciation expense

Advertising expense

Supplies expense will be paid in the third quarter.

Other expenses will be distributed based on the proportion of sales made in each quarter.

Statutory requirements

Superannuation: 9.5%

Company tax: 30%.

Workers compensation: 2%

Based on the analysis of historical data, it is expected that the debtors balance at the end of each quarter is expected to be 15% of the sales made. Furthermore, it is expected that 1% of debtor balance will be overdue for 90 days, 4% overdue for 60 days and 10% for 30 days.

For GST cash flow budget:

Statutory requirements: 10% of recorded sales. No capital purchase is recorded for this year. Though the expenses where the GST will be paid include.

Insurance expense

Store supplies

Advertising expense

Cleaning, Repairs & Maintenance

Electricity expense

Website marketing expense

GST cash flow is to be maintained to maintain audit trial. This will ensure that there are discrepancies between agreed and actual allocations for cash flow analysis for GST are identified.

ABC Nursing Home Budgeting Policy and Procedures

Budget Development Process

The standard process for developing budgets will follow the following steps:

Identify budget objectives

Gather previous years financial data.

Gather anticipated changes in budget from the stakeholders.

Incorporate identified trends.

Develop budget based on the formats provided in MS excel.

Final approval. Budget Objectives

ABC Nursing Home prepares budgets to meet various company objectives. Budgets are prepared:

To have more realistic figures on the companys future growth and profit.

To predict cash flow.

To comply with the statutory and legislative requirements.

To allocate funds.

To have birds eye view on the trade debtors.

Budget Variances and Schedules

KPIs that should be monitored:

Variance in sales

Variance in gross profit

Variance in total expenses as percentage of sale

Budget variance is to be calculated for each quarter. It should be completed within the last week of the quarter.

Reports on variance is to be provided to the CEO of the organisation.

Priorities in investigation of the variances

Identifying the primary cause of the variance.

Identify the reasons that led to this cause.

Accountant has the responsibility to manage compliance due dates.

When preparing the budgets, you must ensure that you must:

Conduct a detailed analysis on previous financial data to identify different quarters of the financial-year that have generated a profit or loss and to accurately determine the allocation of resources for each quarter of budget.

Ensure that you critically review the Business plan summary given in the case study to establish critical dates of the transactions and allocate the same in the budget for next financial-year.

Make informed estimates of new items given in Business plan summary for inclusion in budget

Review statutory requirements given in the case study to prepare a budget that is compliant and correctly documents the companys liabilities for tax.

The following formats will be used when preparing ABC Nursing Home budgets. You must create similar templates in MS-Excel to prepare budgets and submit the print out of the budgets to your trainer/assessor.

Sales and Profit Budgets:

PROFIT BUDGET 2018/19 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Revenue - 22% 30% 21% 27%

Sales 18,000,000 3,960,000 5,400,000 3,780,000 4,860,000

Clientele 7,698,888 1,693,755 2,309,666 1,616,767 2,078,700

Gross Profit 10,301,112 2,366,245 3,090,334 2,163,233 2,781,300

Expenses Interest Expense 82,000 20,500 20,500 20,500 20,500

Depreciation expenses 160,000 40,000 40,000 40,000 40,000

Insurance expenses 24,600 6,150 6,150 6,150 6,150

Supplies 4,300 - - 4,300 -

Advertising 272,000 68,000 68,000 68,000 68,000

Cleaning, Repairs & Maintenance 34,608 7,614 10,382 7,268 9,344

Cleaning and maintenance labour charge 51,912 11,421 15,573 10,902 14,016

Rent 3,025,000 756,250 756,250 756,250 756,250

Website marketing expenses 17,600 4,400 4,400 4,400 4,400

Electricity Expense 32,960 7,251 9,888 6,922 8,899

Fringe Benefits Tax 39,900 8,778 11,970 8,379 10,773

Wages & Salaries 2,640,000 580,800 792,000 554,400 712,800

Superannuation 250,800 55,176 75,240 52,668 67,716

Workers Compensation 52,800 11,616 15,840 11,088 14,256

Total Expenses 6,688,480 1,577,956 1,826,193 1,551,227 1,733,104

Net Profit (Before Tax) 3,612,632 788,289 1,264,141 612,006 1,048,196

Income Tax 1,083,790 236,487 379,242 183,602 314,459

Net Profit 2,528,842 551,802 884,899 428,404 733,737

GST Cash Flow Budget

CASH FLOW ANALYSIS GST 2018/19 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

GST Collected 1,800,000 396,000 540,000 378,000 486,000

Less GST Paid 38,606.8 9,341.5 9,882 9,704 9,679.3

GST Payable 1,761,393.2 386,658.5 530,118 368,296 476,320.7

Aged Debtors

AGED DEBTORS BUDGET TOTAL Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Total Debtors 1,030,000 226,600 309,000 216,300 278,100

Current 30 Days 103,000 22,660 30,900 21,630 27,810

60 Days 41,200 9,064 12,360 8,652 11,124

90 Days 10,300 2,266 3,090 2,163 2,781

Part 2:

This part of assessment task is in continuation with part 1. 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 (2each) 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.

Scenario 2-

You have successfully prepared the budget for the financial year 2018/2019. As per the companys procedures, the budget must be approved by the stakeholders before its implementation.

So, the CEO of ABC Nursing Home 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.

Task:

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.

After distributing the budget notes to the stakeholders (Senior Managers, Supervisors and CEO), he wants you to prepare a presentation that must include the following:

Overview of the following budgets:

sales and profit budget

GST cash flow budget

debtor ageing summary

Note: 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.

After the completion of the presentation, you will be required to address the concerns of the stakeholders present during the meeting and address the questions and concerns of the Senior managers.

The following questions are to be asked by the stakeholders (Senior Managers, Supervisors and CEO)

Questions

Senior Manager 1:

What are the current statutory requirements for tax compliance?

Senior manager 2:

Which is the most suitable commercially available financial-management accounting software for ABC Nursing Home Pty LTD.?

Supervisor 1:

What are the implications of probity in preparation and revision of budgets?

What are the critical dates and initiatives that will require or generate resources for ABC Nursing Home Pty LTD. in the next financial cycle.

Supervisor 2:

What other items do you think should be included in the budgets for the company?

What internal controls should be implemented to improve risk management for maintaining audit trials?

Assessment Task 3- Unit Project

Assessment type:

Unit Project (UP) - Monitor and review budget

Assessment task description:

This is the third (3) assessment task you have to successfully complete to be deemed competent in this unit of competency.

This assessment task requires you to complete a Unit project.

You must monitor and review budget in order to successfully complete this project.

You will receive your feedback within two weeks - you will be notified by your trainer/assessor when results are available.

You must attempt all activities of the project for your trainer/assessor to assess your competency in this assessment task.

Applicable conditions:

This project is untimed and are conducted as open book tests (this means you are able to refer to your textbook).

You must read and respond to all criteria of the project.

Word limit to complete part B (report) is 600-800 words.

You may handwrite/use computers to answer the criteria of the project.

You must complete the task independently.

No marks or grades are allocated for this assessment task. The outcome of the task will be Satisfactory or Not Satisfactory.

As you complete this assessment task you are predominately demonstrating your practical skills, techniques and knowledge to your trainer/assessor.

The trainer/assessor may ask you relevant questions on this assessment task to ensure that this is your own work.

Resubmissions and reattempts:

Where a students answers are deemed not satisfactory after the first attempt, a resubmission attempt will be allowed.

You must speak to your Trainer/Assessor if you have any difficulty in completing this task and require reasonable adjustments (e.g. can be given as an oral assessment).

For more information, please refer to your RTO Student Handbook.

Location:

This assessment task may be completed in a classroom, learning management system (i.e. Moodle), workplace, or independent learning environment.

Trainer/Assessor will provide student further information regarding the location of completing this assessment task.

General Instructions for attempting the project:

This assessment task is in continuation to the previous task.

You will monitor and review budget in this assessment task.

You will be expanding the knowledge and skills acquired during the previous assessment task.

Instructions to complete the unit project is provided within the assessment task.

You will be required to correctly attempt all activities of this assessment task.

How your trainer/assessor will assess your work?

This assessment task requires the student to successfully complete and submit a project.

Answers must demonstrate the students understanding and skills of the unit.

You will be assessed according to the provided performance checklist/ performance criteria.

Assessment objectives/ measurable learning outcome(s) are attached as performance checklist/ performance criteria with this assessment task to ensure that you have successfully completed and submitted the assessment task.

If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).

If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome is Not Yet Competent (NYC).

Once all assessment tasks allocated to this Unit of Competency have been undertaken, trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome will be either Competent (C) or Not Yet Competent (NYC).

The Assessment Plan is available with the Unit Assessment Pack (UAP) Cover Sheet.

Purpose of the assessment task:

This assessment task is designed to evaluate students following skills and abilities:

Skills to manage risks so that no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.

Skills to review profit and loss statements, cash flows and ageing summaries and revise budgets based on requirements.

Skills to maintain audit trails to ensure accurate tracking and to identifydiscrepanciesbetween agreed and actual allocations.

Skills to ensure compliance with due diligence and make sure that the structure andformat of reports are clear and conform to organisational and statutory requirements.

Skills to identify and prioritise significant issues in the case study.

Skills to determine a trend of the average debtor days and the impact to the cash flow of Pearl food distributors.

Skills to 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.

Instructions to complete this assessment task:

This assessment task is divided into two parts:

Part 1: Prepare budget variance report

Part 2: Report on effectiveness of existing financial-management approaches.

You must compare the outcomes of budget prepared as part of assessment task 2 with actual results given in the case study to prepare budget variance report.

Word limit to complete part B (report) is 600-800 words.

You must prepare budget variance report, GST Cash Flow Budget variance report and debtor ageing variance report in MS Excel by following the structure of template provided in the assessment task.

Your trainer/assessor will assess the performance as per the performance criteria and checklist provided.

Please write your responses in the template provided.

You may attach a separate sheet if required.

You must include the following particulars in the footer section of each page of the attached sheets:

Student ID or Student Name

Unit ID or Unit Code

Course ID or Course Code

Trainer and assessor name

Page numbers

You must staple the loose sheets together along with the cover page.

You must attach the loose sheets chronologically as per the page numbers.

Correction fluid and tape are not permitted. Please do any corrections by striking through the incorrect words with one or two lines and rewriting the correct words.

The premise of the project must be closely related to the previous assessment task.

This submission must be well presented and follow the guidelines and instructions provided.

Please follow the format as indicated in the template section below.

One of the most important steps that you can take: proofread your project.

Appropriate citations are required.

All RTO policies are in effect, including the plagiarism policy.

Resources required to complete the assessment task:

Computer

Internet

MS Word

Printer or e-printer

Adobe acrobat/reader

Learning management system

Calculator

Please clearly record your name and sign below stating you understand the assessment instructions and requirements and consent to being assessed according to the assessment requirements.

Learners Name: Learners Signature Date: Trainer / Assessor Name Trainer / Assessor Signature Date:

Task:

This assessment task is in continuation with previous assessment task. In tis task, you will monitor the implementation of the budget that you have prepared in assessment task 2.

This task is divided into two parts:

Part A requires you to prepare budget variance report.

Part B requires you to prepare a report on effectiveness of existing financial-management approaches.

Case Study

After end of the first quarter of the financial year, Jeff Hardy, the CEO of the company called up a meeting to discuss the analysis report provided to him by the accountant of the organisation.

This analysis report includes the outcomes of the actual budget analysis for the first quarter budget. The outcomes of the analysis report outcomes are not as expected. Following are some of the vital outcomes:

Sales are 3% less than budgeted.

Gross profits have been impacted as the expenses are same, but sales have gone down.

The company had most part of their loan on variable interest rates. The interest rates have increase and that has impacted the interest expenses. The interest expense for this quarter is increase by $4500.

To maintain the sales the stores had to further give discounts of 5% on each item. That has impacted the budget.

Other actual expenses were same as allocated.

Total debtor sale decreased by 40,000.

2% of debtor balance will be overdue for 90 days, 6% overdue for 60 days and 13% for 30 days.

You had discussion with the CEO. You both have agreed that this is largely due to the following reasons:

The economy overall is in recession that is impacting the sales in the retail sector.

The first quarter is generally impacted by the factors relating to public and school holidays.

The CEO is also concerned about the outcomes of the audit trial conducted by one of the internal auditors. Some of the outcomes are as follow:

Cash record books not maintained properly.

Some of the times the company books and third-party bank statements were not reconciled appropriately.

Part A:

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:

Prepare the actual budget based on the outcomes of the analysis report.

Compare the outcomes of the actual budget with the outcomes of the allocated budget (refer to the assessment task 2).

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.

You must make sure that when conducting audit trial, you comply with due diligence in reviewing financial statements.

Sales and Profit Budgets variance report:

PROFIT BUDGET Allocated Qtr. 1 Actual Qtr. 1

Revenue Sales Clientele Gross Profit Expenses Interest Expense Depreciation expenses Insurance expenses Advertising Cleaning, Repairs & Maintenance Cleaning and maintenance labour charge Rent Website marketing expenses Electricity Expense Fringe Benefits Tax Discount provided Wages & Salaries Superannuation Workers Compensation Total Expenses Net Profit (Before Tax) Income Tax Net Profit GST Cash Flow Budget variance report:

CASH FLOW ANALYSIS GST Allocated Qtr. 1 Actual Qtr. 1

GST Collected Less GST Paid GST Payable Aged Debtors variance report:

AGED DEBTORS BUDGET Allocated Qtr. 1 Actual Qtr. 1

Sales % Debtors Sales Total Debtors Current 30 Days 60 Days 90 Days Part 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:

Analyse budget variance report, GST Cash Flow Budget variance report and debtor ageing variance report:

Identify the issues based on the information provided within the case study.

Present views on how these issues can be resolved.

Analyse the Sales and Profit Budgets variance report, identify and prioritise the significant issues, including the financial performance.

Identify variances.

Provide reasons for the variance.

Document the steps that should be taken to maintain gross profit margins after increasing expenses and downturn in the amount of sales.

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.

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

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.

Provide recommendation to manage such contingencies in the future.

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.

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.

Template to complete the report:

Report on the effectiveness of existing financial-management approaches/finances

Issues

Steps to resolve these issues

Variances

Reason for variances

Steps to maintain gross profit margins

Debtor days

Financial viability of the company

Your recommendations on the viability of the company

Your recommendations for managing contingencies

Recommendations for improvement in improving financial management processes.

Risks that company can face in future based on the outcomes audit trial

Risk of misappropriation of funds

Risk management approach

Cover Sheet

BSBFIM601 Manage Finances

Task 1 Unit Knowledge Test (UKT)

Task 2 - Unit Project (UP)

Task 3- Unit Project (UP)

Learner Declaration to be completed, signed, and dated:

Learner, please read the mandatory declaration below:

I confirm that this assignment is my own original work, I have not duplicated from other source and have appropriately cited the original source.

I have provided references for all sources where the information is not my own. I understand the consequences of falsifying documentation and plagiarism. I understand how the assessment is structured. I accept that all work I submit must be verifiable as my own.

I understand that Plagiarism is regarded as cheating as it is the practice of taking someone else's work or ideas and passing them off as one's own.

I understand that Collusion is regarded as cheating as it is the cooperation of two or more students in plagiarism.

I confirm that I have not been involved in Plagiarism & Collusion, however, if proven it may lead to exclusion from the course.

I have kept a copy of all relevant notes and reference material that I used as part of my submission.

I understand that if I disagree with the assessment outcome, I can appeal the assessment process, and either re-submit additional evidence undertake gap training and or have my submission re-assessed.

Learners Name: Learners Signature: Date: