Student Name Student Number Course and Code Unit(s) of Competency and Code(s) SITXFIN004 Prepare and monitor budgets
Student Name Student Number Course and Code Unit(s) of Competency and Code(s) SITXFIN004 Prepare and monitor budgets
Stream/Cluster Trainer/Assessor Assessment for this Unit of Competency/Cluster Details
Assessment 1 Short Answer Questions
Assessment 2 Assignment
Assessment 3 Project
Assessment conducted in this instance: Assessment 1 FORMCHECKBOX 2 FORMCHECKBOX 3 FORMCHECKBOX
Reasonable Adjustment
Has reasonable adjustment been applied to this assessment?
No FORMCHECKBOX No further information required
Yes FORMCHECKBOX Complete 2.
Provide details for the requirements and provisions for adjustment of assessment:
Student to complete
FORMCHECKBOX My assessor has discussed the adjustments with me
FORMCHECKBOX I agree to the adjustments applied to this assessment
Signature Date 2nd Assessor to complete
FORMCHECKBOX I agree the adjustments applied to this assessment are reasonable
Name Signature Date Assessment Guidelines
What will be assessed
Performance Evidence
The purpose of this assessment is to assess your ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
prepare a budget for a business that meets the specific business needs
demonstrate the following when preparing the above budget:
consultation on components
analysis of factors that impact on the budget
completion of draft and final versions of budget within designated timelines
Knowledge Evidence
types of budgets:
cash budgets
cash flow budgets
departmental budgets
event budgets
project budgets
purchasing budgets
sales budgets
wage budgets
whole of organisation budgets
budget terminology
specific industry sector and organisation:
role and nature of budgets
budget formats, budget performance and financial reports
financial reporting procedures and cycles
features and functions of accounting software programs used to prepare and monitor budgets
internal and external factors that impact on budget development:
growth or decline in economic conditions
human resource requirements
new legislation or regulation
organisational and management restructures
organisational objectives
scope of the project
shift in market trends
significant price movement for certain commodities or items
supplier availability and cost
budget preparation and monitoring practices and techniques:
sources and contents of data required for budget preparation:
competitor research
customer or supplier research
declared commitments in areas of operation
financial information from suppliers
financial proposals from key stakeholders
income and expenditure for previous time periods
departmental, event or project budgets
grant funding guidelines or limitations
management policies and procedures
organisational budget preparation guidelines
performance information from previous periods
techniques for making budget estimates
common reasons for deviations and budget deviation management.
Place/Location where assessment will be conducted; Timeframe for assessment tasks
Resource Requirements
Computer with Microsoft excel
Calculator
Spread Sheets:
Task 1-Hotel Futura Budget_Forecast
Task 2-Budget Futura_Restaurant_Bar
Instructions for assessment including WHS requirements
The assignment for Assessment 2 consists of 3 Tasks
Task 1
Requires you to prepare a draft budget following a meeting with all heads of department where you have finalised the details and requirements to be included for next years budget.
Task 2
Requires you to prepare a final budget, based on the changes made to your draft budget following a management meeting.
Task 3
Requires you to respond to 3 financial scenarios.
All responses must be typed and clearly referenced to each task. Your trainer will provide you with feedback for each task. You will be provided with the opportunity to rectify any shortfalls based on the feedback from submitted work for this assessment.
Each completed spreadsheet must be attached to the relevant task and clearly referenced.
Statement of Authenticity
FORMCHECKBOX I acknowledge that I understand the requirements to complete the assessment tasks
FORMCHECKBOX The assessment process including the provisions for re-submitting and academic appeals were explained to me and I understand these processes
FORMCHECKBOX I understand the consequences of plagiarism and confirm that this is my own work and I have acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201
This assessment: First Attempt FORMCHECKBOX 2nd Attempt FORMCHECKBOX Extension FORMCHECKBOX Date: FORMTEXT / FORMTEXT / FORMTEXT
RESULT OF ASSESSMENT Task 1 FORMCHECKBOX
Task 2 FORMCHECKBOX
Task 3 FORMCHECKBOX Satisfactory FORMCHECKBOX Not Yet Satisfactory FORMCHECKBOX
Satisfactory FORMCHECKBOX Not Yet Satisfactory FORMCHECKBOX
Satisfactory FORMCHECKBOX Not Yet Satisfactory FORMCHECKBOX
Feedback to Student:
Assessor(s) Signature(s): Date: FORMTEXT / FORMTEXT / FORMTEXT
Student Signature Date: FORMTEXT / FORMTEXT / FORMTEXT
Task 1
Your Tasks:
You are required to complete a draft budget based on information and factors that were determined during an executive meeting at Hotel Futura.
Access the excel spreadsheet named Task 1-Hotel Futura Budget Forecast. The first tab on this spreadsheet is labelled Departments Small and shows the existing budget figures for the 2016 financial year.
Use the template Draft Budget on the second tab of the spreadsheet and perform the calculations below using basic formulas.
Your forecast needs to include the Dollar Figures and the % values for these affected by changes outlined below.
The % values must be listed for each expense item shown in the Expenses Analysis for each department.
You have met with the department heads of Hotel Futura and the following details have been discussed to prepare your draft budget for 2017:
Rooms Division:
Due to renovations the rooms available have been reduced to 96%.
The forecasted occupancy rate has been adjusted to 80%.
The revenue per available room needs to be increased to $150.00
The COGS will increase to 15% of total room revenue
Staff costs need to be increased to 20% of total room revenue to allow for increases in superannuation and awards.
Other Expenses need to increase to 8% of total room revenue to cover electricity price rises.
Catering:
The food revenue will be increased by 15% due to a new marketing campaign and specialty menus
The beverage revenue will increase by 8%.
Staff costs need to be adjusted to 44% of the food budget.
Other Expenses will need to be increased to 7%.
Banquet:
The Banquet Division will be directly affected by the new marketing campaign which has been directed at daytime seminars and corporate functions. For this purpose the kitchen has received specialised equipment including multiple combi steamers, hold-o-mats and sous-vide equipment.
The new food revenue budget was set at $ 2,000,000.00 ($2 Million) and the beverage revenue was increased by 75%.
The COGS will increase to 26%.
The staff costs have been reduced to 19%.
Other Expenses will need to increase to 14%.
Room Service:
The room service revenue from food needs to be increased by 15%.
Due to a different system to clear floors and organise delivery, the staff costs will be reduced to 34%.
Mini Bar:
The mini bar budget remains unchanged and increased staff costs are absorbed through different processes.
Bar Budget:
The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar and happy hour specials.
Staff costs will need to be adjusted to 36%.
Other Expenses need to be increased to 18%.
Task 2
Your Tasks:
You have provided the chief financial controller with the draft budget for 2017. Following the recent executive meeting where the draft budget was discussed, you are now required to establish the final budget reflecting the changes based on the latest actuals and variances as well as major road works which will affect Futura Restaurant and Bar during 2017.
Access the excel spread sheet named Task 2-Budget Futura_Rest.&Bar. The first tab on this spreadsheet is labelled Futura Restaurant and Bar and shows the Draft budget figures for the 2017 financial year.
Use the template Revised Budget on the second tab of the spreadsheet and perform the calculations below using basic formulas based on the following changes:
Month Customer numbers Average Spend (Food) Average Spend (Beverage)
January 1850 $ 45.00 $ 9.70
February 2000 $ 37.00 $ 9.70
March 700 $ 42.00 $ 9.70
April 1200 $ 48.00 $ 9.70
May 1200 $ 36.50 $ 9.70
June 600 $ 35.00 $ 9.70
July 950 $ 34.00 $ 9.70
August 800 $ 38.00 $ 9.70
September 900 $ 29.00 $ 9.70
October 650 $ 29.50 $ 9.70
November 980 $ 35.50 $ 9.70
December 2200 $ 48.00 $ 9.70
Calculate the anticipated Food revenue for each month and the yearly total.
Calculate the anticipated Beverage revenue per month and the yearly total.
Calculate the Total Revenue for each month and the yearly total.
Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000 or more customers and at 96% for each month with less than 1000 customers) and the yearly total.
Calculate the profit for each month and the yearly total.
Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.
Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at 35% for each month with less than 1000 customers.
Calculate the Other overheads for the operation.
Print a copy of the revised budget.
Print the revised budget showing all formulae used.
Task 3
Your Tasks:
Read the following 3 scenarios and answer the questions attached for each scenario.
Scenario 1:
The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for the last 3 years and these were always very accurate. The recent budget which included all departments of the hotel was implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages in both the Restaurant and the Bar Operations have blown out by nearly 4.5 percent.
What could be the reasons for this? List 5 examples of areas you would investigate and explain why.
Scenario 2:
Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and during the past 3 budget periods annual budgets have been increased by 15% each year which was exceeded each time. During the last 6 months however, management has noticed that the opposite trend seems to be occurring now.
List 5 external factors which could contribute to this and explain which methods you would use to determine this.
Scenario 3:
You have successfully negotiated the draft budget with each department head of the Hotel which has now been approved by the director and implemented 6 weeks ago.
You have finalised the financial data of the Hotel for the next management meeting and noticed the following:
Department Budget Actual Variance
Kitchen/Food Cost 28% 32% (-)$ 13467
The recently appointed F&B Manager has purchased 240 bottles of Hill of Blessings @ $90 each which represents a saving of $30 per bottle. However this exceeds the par stock level by 220 bottles and has created a cashflow problem, given the negative performance of the kitchen during this period as well.
Which reports would you need to prepare for these issues?
Who is it essential to involve when these matters need to be discussed?
Suggest options to address and rectify these issues.
How could the cashflow issue be addressed?
Assessment Tasks and Instructions
Student Name Student Number Course and Code Unit(s) of Competency and Code(s) SITXFIN004 Prepare and monitor budgets
Stream/Cluster Trainer/Assessor Assessment for this Unit of Competency/Cluster Details
Assessment 1 Short Answer Questions
Assessment 2 Assignment
Assessment 3 Project
Assessment conducted in this instance: Assessment 1 FORMCHECKBOX 2 FORMCHECKBOX 3 FORMCHECKBOX
Reasonable Adjustment
Has reasonable adjustment been applied to this assessment?
No FORMCHECKBOX No further information required
Yes FORMCHECKBOX Complete 2.
Provide details for the requirements and provisions for adjustment of assessment:
Student to complete
FORMCHECKBOX My assessor has discussed the adjustments with me
FORMCHECKBOX I agree to the adjustments applied to this assessment
Signature Date 2nd Assessor to complete
FORMCHECKBOX I agree the adjustments applied to this assessment are reasonable
Name Signature Date Assessment Guidelines
What will be assessed
The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in the elements and performance criteria for this unit of competency and relating to the following aspects:
types of budgets:
cash budgets
cash flow budgets
departmental budgets
event budgets
project budgets
purchasing budgets
sales budgets
wage budgets
whole of organisation budgets
budget terminology
specific industry sector and organisation:
role and nature of budgets
budget formats, budget performance and financial reports
financial reporting procedures and cycles
features and functions of accounting software programs used to prepare and monitor budgets
internal and external factors that impact on budget development:
growth or decline in economic conditions
human resource requirements
new legislation or regulation
organisational and management restructures
organisational objectives
scope of the project
shift in market trends
significant price movement for certain commodities or items
supplier availability and cost
budget preparation and monitoring practices and techniques:
sources and contents of data required for budget preparation:
competitor research
customer or supplier research
declared commitments in areas of operation
financial information from suppliers
financial proposals from key stakeholders
income and expenditure for previous time periods
departmental, event or project budgets
grant funding guidelines or limitations
management policies and procedures
organisational budget preparation guidelines
performance information from previous periods
techniques for making budget estimates
common reasons for deviations and budget deviation management.
Place/Location where assessment will be conducted
SSH to complete
Resource Requirements
Pen, Paper or computer.
Instructions for assessment including WHS requirements
Answer the questions for this assessment below.
You are required to address all questions to achieve competence. Your trainer will provide you with instructions for time frames and dates to complete this project.
Once completed, carefully read the responses you have provided and check for completeness. Your trainer will provide you with feedback and the result you have achieved.
Statement of Authenticity
FORMCHECKBOX I acknowledge that I understand the requirements to complete the assessment tasks
FORMCHECKBOX The assessment process including the provisions for re-submitting and academic appeals were explained to me and I understand these processes
FORMCHECKBOX I understand the consequences of plagiarism and confirm that this is my own work and I have acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201
This assessment: First Attempt FORMCHECKBOX 2nd Attempt FORMCHECKBOX Extension FORMCHECKBOX Date: FORMTEXT / FORMTEXT / FORMTEXT
RESULT OF ASSESSMENT Satisfactory FORMCHECKBOX Not Yet Satisfactory FORMCHECKBOX
Feedback to Student:
Assessor(s) Signature(s): Date: FORMTEXT / FORMTEXT / FORMTEXT
Student Signature Date: FORMTEXT / FORMTEXT / FORMTEXT
Assessment 1
Your task: Answer each question below.
Name 4 business considerations you might consider when researching a budget.
Response
1.
2.
3.
4.
Describe how the following sources of data can be used for budget preparation.
Response
Competitor research
Customer or supplier research
Declared commitments in areas of operation
Financial information from suppliers
Financial proposals from key stakeholders
Performance data/information from previous time periods
Departmental, event or project budgets
Grant funding guidelines or limitations
Management policies and procedures
Organisational budget preparation guidelines
Explain how the following internal factors can impact on budgets.
Response
Management restructure
Human resources requirements
New projects and business objectives
Changes in commodity or service prices
Explain how the following external factors can impact on budgets.
Response
Legislation and regulations
Changes in the global economy
Market trends
How does involving staff from the bottom up in the budgeting process, help the business?
Response
What does the process of preparing a draft budget usually involve?
Response
How does breaking the budget down into groups, departments, or income and expense categories help colleagues?
Response
Name 3 people (job roles) you would circulate the draft budget to for feedback or approval:
Response
1.
2.
3.
The budgeting process requires strong negotiation skills. Why is it important to convince staff of the achievability of the budget?
Response
A staff member suggests a change or alteration to the budget. List 3 aspects you need to consider to ensure any changes would have no negative impacts:
Response
In most businesses/industries, when must the budget be complete?
Response
What information should department managers include in their monthly reports?
Response
How often should the budget be compared to the actual accounting results?
Response
Name and describe 5 financial reports you might generate from your accounting system to check your budget against actual income or expenditure.
Response
1.
2.
3.
4.
5.
Every revenue and expense item on the Profit and Loss Statement should be compared to what?
Response
When revenue variances occur, why is talking to staff a good way to help identify and find options to address the issue?
Response
List 3 factors that can cause variances in staff budgets.
Response
1.
2.
3.
Why is monitoring your budget progressively throughout the year so important?
Response
How can you collect information to help create future budget plans?
Response
Name an accounting program you can use to help manage budgets.
Response
Explain each of the following types of budgets:
Response
Cash budget/Cashflow budget
Departmental budget
Event budget
Project budget
Purchasing budget
Sales budget
Wage budget
Master budget
