Assessment Task 1 Written questions Assessment Task 2 Part A Financial management planning project Assessment Task 2 Part B Meet with management team Assessment Task 3 Review budget project Assessment Task 4 Debtor management project Australasian International Academy (AIA)
Assessment Information
The assessment tasks fo rBSBFIM601 Manage financesare included in this Student Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, the student must complete all of the assessment tasks satisfactorily.
Assessment Plan
Assessment Task Overview
- Written questions Students must correctly answer all questions
- Part A Financial management planning project Students must plan for financial management by reviewing financial data, as well as preparing budgets.
- Part B Meet with management teamStudents must communicate budgets and financial reporting requirements and delegations to managers.
- Review budget project Students must review interim financial data and revise budgets as required.
- Aged debtor project Students must review an aged debtor report and develop a report on best practice debtor management.
Additional Resources
The following resources will be given to you before you begin each Assessment Task.
Assessment Task 2 Part A
- Cash Flow Statement 2015/16
- Costs and Income
- Finance Policy and Procedure
- Finance Report template
- Profit and Loss 2015/16
- Strategic Business Plan
Assessment Task 3
- Cash Flow Statement 2016/17
- Profit and Loss 2016/17
Assessment Task 4
- Aged Debtor Summary
Assessment Instructions
Each assessment task in this booklet consists of the following:
Assessment Task Cover Sheet This must be filled out, signed and submitted together with your assessment responses.If you are submitting hardcopy, the Cover Sheet should be the first page of each task’s submission.If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit the file.
The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per your RTO’s re-assessment policy.
Depending on the task, this may include
- resubmitting incorrect answers to questions (such as short answer questions and case studies)
- resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
- redoing a role play after being provided with appropriate feedback about your performance
- being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.
Assessment Task 1:Written Questions
Task summary
- This is an open book test.
- Questions must be completed within 1.5 hours.
- Students need to answer all of the written questions correctly.
- Answers must be word processed and submit to your assessor.
Required
- Access to textbooks/other learning materials
- Computer and Microsoft Office
- Access to the internet
Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected. Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.
Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to writea response one or two paragraphs long.
Discuss– when a question asks you to discuss something, you are required to point out important issues or features, and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.
Describe– when a question asks you to describe something, you should state the most noticeable qualities or features.Generally, you are expected to write a response two or three sentences long.Evaluate– when a question asks you to evaluate something, you should do so putting forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine– when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.
Assessment Task 1 Instructions
Provide answers to all of the questions below:
- Identify and describe financial probity requirements for businesses.
- Identify four examples of what would be consider fraudulent behaviour in regard to company finances.
- Identify the requirements for audited accounts and the purpose of an audit report.
- Describe the principle of cash accounting one advantage and one disadvantage of cash accounting.
- Describe the principle of accrual accounting and one advantage and one disadvantage of accrual accounting.
- Explain the four main taxation and superannuation obligations for a business. Briefly discuss each obligation.
- Identify the Act that details requirements for financial reporting and auditing and explain the requirements for companies for preparing and lodging financial reports under this Act.
- Explain the requirements for registered foreign companies regarding preparing and lodging financial reports.
- Identify the current company tax rate for both smaller and larger businesses.
- Explain the process by which a business reports GST to the Australian tax office.
- Identify the penalty rate to be applied if a supplier does not provide an ABN.
- A non-profit organisation needs to register for GST after it has a turnover of more than how much?
- Explain the difference in withholding obligations for employees and contractors.
Assessment Task 2 Part A: Financial Management planning project
This assessment task is in two parts. For Part A, you are required to review existing financial information and prepare budgets.For Part B, you are required to meet with the management team to discuss budgets, as well as reporting requirements and delegations.
Task summary
You are required, in the role of the General Manager for Grow Management Consultants, to review existing financial information and prepare budgets for the following financial year based on your review. This task will also require to you review existing financial software to ensure that it is meeting the company’s needs. This task will be completed in the simulated work environment at your RTO.
Required
- Computer and Microsoft Office including Excel
- Access to the internet for research
- Profit and Loss 2015/16
- Strategic Business Plan
- Cash Flow Statement 2015/16
- Costs and Income
- Finance Report template
Assessment Task 2 Part A Instructions
Carefully read the following:
Grow Management Consultants is a consultancy business specializing 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. They also design and implement customized 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 now 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 2014 – 2015, 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. Client feedback and continued business indicates a personalized, 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 each year starting in 2017. 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 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. Prepare a financial performance report
- Review the scenario information above, as well as Profit and Loss and 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.
- Prior to preparing your financial performance report, 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 and 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.
- You should also conduct research on financial software systems as per the scenario information. Make notes for use in your report.
- 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 (2015 – 2016) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.
- Analysis of overall business performance, as well as performance of each of the income streams for 2015 – 2016.
- 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 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.
2. Develop forecasts
- Develop budget forecasts and ensuring 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 policy, 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 2017. 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.
3. Circulate report and budgets to staff
- Send the completed report and budgets to the Principal Consultants (your assessor) for discussion at the meeting in Part B.
Assessment Task 2 Part B Instructions
Carefully read the following:
The Principal Consultant has approved the budget for the upcoming financial year 2016 – 2017. You are now required to meet with the Senior Managers to communicate the budgets you have developed.
So as to that financial risks are managed in relation to the misappropriation of funds and recording of transactions, you are also required to outline reporting requirement and financial delegations as outlined in the company’s financial policy and procedures, as well as research and report on the company’s compliance requirements and tax liabilities.
Complete the following activities:
1. Develop report on key financial compliance requirements and liabilities for tax in preparation for meeting Research and report on the business’ key financial compliance requirements and liabilities for tax. Develop a short report to provide to the management team at the meeting. The handout should explain:
- GST reporting requirements (the company is required to report quarterly)
- PAYG withholding obligations
- PAYG income tax instalment
- Payroll tax obligations (state government)
- Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff.
When you have developed your handout, print off a copy to provide to your assessor at the meeting.
2. Prepare for meeting
In preparation for the meeting, review the financial management policy and procedure that sets out reporting requirements and financial delegations. You will be required to explain key reporting requirements to the Managers attending the meeting, as well as financial delegations. Print off a copy to take to the meeting to remind you of the key points in the financial policy and procedure. Print off a copy of the budget you have developed in preparation for the meeting.At the meeting you will need to:
- Discuss the budget you have developed and the rationale for the budget
- Discuss the amounts allocated to activity, including the conference and the e-book.
- Explain that there will be no more workshops conducted.
- Provide an outline of the financial policy and procedure so as to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised.
- Explain the company’s key financial compliance requirements and tax liabilities.
3. Conduct meeting
Conduct the meeting as per the requirements above, making sure you provide the team with all required documentation.During the meeting you will need to demonstrate effective communication skills by:
- Speaking clearly
- Responding to questions as required
- Using active listening techniques to confirm or clarify information
At the meeting, your assessor will provide you with information that you will need to use to revise the budget.
Assessment Task 3: Budget review project
Task summary
This assessment task requires you to review the profit and loss statement for 2015 – 2016, as well as the cash flow statement for Grow Management Consultants. This task will be completed in the simulated work environment at your RTO.
Required
- Computer and Microsoft Office
- Access to the internet for research
- Profit and Loss 2016/17
- Cash Flow Statement 2016/17
Assessment Task 3 Instructions
It is now 1 year later and you are required to review the profit and loss account for 2016 – 2017, 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 2) and assuming 70 people will attend the 2017 conference. The Principal Consultant would also like a 20% return on the conference costs.
Complete the following activity:
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 2017 – 2018.
- Proposed conference fee for 2018 conference assuming attendance of 70 people and to make a profit of at least 20%. Based on your analysis of the profit and loss account, develop a short report to send to the Principal Consultant that includes your analysis as above.
Assessment Task 4: Debtor management project
Task summary
This assessment task requires you to review and evaluate financial management processes in relation to debtor management and to ensure Grow Management’s financial due diligence.This task will be completed in the simulated work environment at your RTO.
Required
- Computer and Microsoft Office
- Access to the internet for research
- Aged Debtor Summary
Assessment Task 4 Instructions
Complete the following activity:
1. Report on debtor management
Review the aged debtor report provided to you by your assessor to identify issues within the financial report. Analyse the information in the report noting that the company’s usual terms are payment 10 days from invoice.Using the Internet, research best practice debtor management and make notes on your findings. Provide a report for your CEO (your assessor) based on your analysis. Your report should include:
- An explanation of the information in the aged debtor report.
- Analysis of any issues with the company’s aged debtor processes.
- Develop at least 5 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.
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