BSBFIM501 Manage Budgets and Financial Plans
To achieve competency in this unit you must complete the following assessment items. All tasks must be submitted together. Tick the boxes to show that each task is attached.
• Assessment 1. Theory Exam ?
• Assessment 2. Prepare financial documents & financial report ?
NOTE: If this is a group assignment, each member of your group must individually submit a separate and complete copy.
Student ID Student Name
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The other members of my group are:
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2. Name:Click here to enter text. Student ID#: Click here to enter text.
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PLEASE NOTE: SECTIONS HIGHLIGHTED IN THIS COLOUR ARE FOR TRAINER USE
ASSESSMENT 1 MARKING SHEET
Satisfactory Did the candidate:
1. Task 1: Successfully answer all the theory based questions
regarding managing budgets and financial plans? ? ?
Including: 1.1, 1.2 1.4, 2.2, 2.3, 3.1, 3.4, 4.1, RS, RK
ASSESSMENT 2 MARKING SHEET
Satisfactory Did the candidate:
1. Task 2: Part 1. Successfully compile the suit of excel spreadsheets
1-3. ? ?
Including: 1.1, 1.3, 1.4, 3.1, 3.2, 3.3, 4.1, 4.2, 4.3,
1. Task 2: Part 2. Successfully deliver a financial report by analyzing,
monitoring and reporting on financial outcomes? ? ?
Including: 1.1, 1.2, 1.3, 1.4, 2.1, 2.3, 3.1, 3.2, 3.3, 3.4, 4.1, 4.2, 4.3
ASSESSMENT - SUMMARY
Assessor’s checklist – tick when finalized
Task 1? Task 2?
ASSESSOR’S GENERAL COMMENTS
(see individual tasks & marking guides for more detail)
COMPETENT ? NOT YET COMPETENT ?
Assessment 1 Theory exam
First of all, imagine that you are the Finance Manager at ABBA Marketing Company. Your employer has asked you to prepare the Budgets and Financial plans for 2017.
In preparation for this job, answer the questions below. Click in the space provided and type your answer.
• Questions 1-9 confirms your command of terminology.
You may like to refer to the National Register document at www.training.gov.au.
• Questions 10-14 demonstrates your knowledge of record keeping requirements for the ATO and for auditing purposes.
• Question 15-19 are about analysing, implementing, disseminating and communicating financial information as well as core accounting principles.
Access the ATO Australian Taxation Office website at www.ato.gov.au and research the ‘Record keeping for small business’ section; and report as much information as you can find. (Questions 1-9)
1. List relevant personnel within ABBA who you will assemble to discuss the budgets and financial plans to ensure that the documented outcomes are achievable, accurate and comprehensible.
2. List the five source documents that you can access for information to include in your Budgets and Financial plans.
3. Give examples of (2) two business operational risk scenarios that could affect your initial budgets and financial plans. What contingency planning strategies will you need to put in place if your initial financial plans need to be varied?
4. Name (5) five main required roles associated with the management of finances – on a daily, weekly and monthly basis. Include a short description of each job role.
5. What are (5) five ways in which you could provide support to your finance team members to ensure that they can competently perform their job roles?
6. List and describe (3) three of the main resources and/or systems that finance personnel may need to successfully manage financial management processes.
7. As the Finance Manager, what processes would you implement to monitor actual expenditure and to control costs?
8. Name (6) six source documents you would need to access in order to report on actual expenditure and to control costs.
9. As the Finance Manager you will regularly collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team. List (8) eight documents where you could source such data and information.
10. Explain what GST is and how it works in Australia.
11. Explain which Australian businesses have to register for GST and why this is so.
12. Identify and record all the business records you must keep for taxation purposes?
13. List three of the legal requirements or conditions that the ATO directs, for keeping good business records?
14. Research and explain your findings as to what the ATO describes as being the three (3) requirements for keeping your tax records electronically.
15. With which relevant personal in the organization would you negotiate any changes required to be made to budget/financial plans?
16. How would you disseminate relevant details of the agreed budget/financial plans to team members?
17. How can you analyse data and information to measure the effectiveness of financial management?
18. How can you implement and monitor improvements with financial objectives?
19. List any three of the basic accounting principles
Assessment 2 Prepare financial documents including financial report Assessment Instructions
This section has 2 Tasks. You are required to complete both tasks.
Task 1 has Three (3) activities; and requires you to prepare Microsoft excel spreadsheets based on the given scenarios and to monitor and review the budgets and P&L statements. You are encouraged to display your answers by clearly calculating a simple formula within each cell. You are required to upload your live excel workbook to Moodle as part of your evidence.
Task 2 requires you to write a financial report to identify options for improved budget performance and contingency planning.
CASE STUDY SCENARIO – Simpsons Pty Ltd
Simpsons Pty Ltd is a small take away restaurant located in Sydney CBD. The restaurant is owned by Mr & Mrs John Spice. The restaurant started its activities in January 2015. In December 2015 the following information was collected:
SALES AND COGS ACTIVITIES FOR 2015
The restaurant sold 54,600 take away meals, and the price per meal was $10.50. The food cost per meal sold was $4.60. Also 20,000 units of soft drinks were sold during the year. Soft drinks are sold for $2.50 and the cost price was $0.80.
BUDGET FORECASTING FOR 2016
The owners estimated that for the next year the price per take away meal could be increased to $13.00. They have also predicted that sales (in units) would increase by 10% in 2016. The owners have entered into a monthly Contract with the soft drinks supplier. According to the Contract the restaurant must purchase a minimum of 2,000 units of soft drinks per month and the cost price will be reduced to $0.50 per unit. The restaurant owners decided to reduce the selling price of soft drinks to $1.50 in order to increase sales (in units) by 50% and are expecting to meet the required selling demand.
The owners have anticipated the following expenses for 2016:
ANTICIPATED YEARLY EXPENSES FOR 2016
COGS (food + beverage) $ $ 291,276 Food ($276,267) beverage ($15,000.00)
Rent $ 40,000
Utilities $ 10,000
Wages $ 130,000
Miscellaneous $ 6,000
NOTE: SPREADSHEETS MUST BE PREPARED USING MICROSOFT EXCEL
Based on the above Sales and COGS activities for 2015;
Prepare a spreadsheet that shows in 12 monthly columns the average monthly Sales for food and drinks and the average monthly COGS for meals and drinks; in addition include end columns for the annual totals and another with the average quarterly totals.
Using the prepared template from Activity 1; continue with the following:
Based on the above Budget forecasting for 2016;
Prepare a 2nd spreadsheet similar to above (ie 12 monthly columns) for the yearly Profit and Loss Budget; also include end columns for the annual totals and the average quarterly totals.
Based on the following assumptions prepare a 3rd spreadsheet with the trading activities for the 1st quarter of 2016. Use monthly columns for January, February and March for the actual 1st qtr results. Also use a column for the quarterly budget for 2016 and another with the totals for the three months as a quarterly actual column.
ASSUME THAT DURING THE 1ST QUARTER OF 2016:
• Food revenue was 20% higher than the budget forecasted
• Food Cost was 30% higher than the budget forecasted
• Beverage sales was 15,000 units
• Utilities Expense was $8,000
• Wages expense $25,000
• Rent expense was $10,000
You are also required to monitor the trading activities for Simpsons Pty Ltd for the first quarter of 2016 and identify and record in an additional column all dollar (AUD$) variances and as a percentage % figure from the forecasted budget.
NOTE: INSERT TASK 2 BELOW THE LINE AT THE END OF THIS DOCUMENT
Write a Financial Report (in the appropriate format) to the restaurant owners; include the following: In Activity 3 you have identified variance between the budget and actual results for the first quarter of 2016. Explain different contingency planning strategies and adjustments that you can make to your budgets for the rest of 2016. Be sure to address any possible causes for the variance. Ensure you include each of the following main areas in your report:
o Meals o Drinks o COGS
You must include your recommendations and a conclusion in this section of the report you need to discuss:
• How you will implement and monitor your changes to the business to control costs
• How you plan on making new contingency plans for further budget variances • How you can collect and use information from work teams to use with your budgets • Comment on how effective the financial information is that you collected.
• Explain how you will negotiate and communicate budget information with team members.
• Explain how you can support staff to make budget changes
PLEASE PASTE ASSESSMENT 2 Task 2 BELOW THIS LINE
Click here to enter text.