Learner Assessment Pack
BSBFIN501
Manage budgets and financial plans
Precision Group (Australia)Unit Title
Level 13, 269 Wickham St, Fortitude Valley 4006
Email: [email protected]
Website: www.precisiongroup.com.au
© 2020 Precision Group (Australia)
BSBFIN501 - Manage budgets and financial plans (Release 1)
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Version Control & Document History
Date
Summary of modifications
Version
13 July 2020
Version 1 final produced following assessment validation.
1.0
Table of Contents
Table of Contents 3
Resources Required for Assessment 4
Accessing Intranet Pages and External Links 5
Assessment Task 1: Knowledge Test 8
Short Answer Questions 8
Practical Assessment 31
Assessments 2 to 4: Projects 32
Project Overview 32
Project 2 – Financial Management Planning 33
Part 3. Financial Management Plan Implementation 69
Part 4. Review and Evaluation of Financial Management Processes 110
Resources Required for Assessment
To complete the Practical Assessment projects, you will require access to:
· Computer with internet and email access and a working web browser
· Installed software: MS Word, Adobe Acrobat Reader
· A workplace that will allow you access to:
· Workplace documentation, including:
· Financial plan for your work team that includes the following:
· Cash flow projections
· Ageing Summaries
· Petty Cash Statements
· Goods and Service Tax (GST)
· Profit and Loss Statements
· One budget plan
Budget plans may include, but is not limited to the following:
· Short-term budget plan
· Long-term budget
· People, including:
· Two relevant personnel
This includes, but is not limited to the following:
· Financial managers
· Accountants
· Financial controllers
· At least two team members whose job roles are focused on management of finances.
These include, but are not limited to:
· Purchasing and procurement staff
· Debt collectors
· Bookkeepers
· Opportunity to manage at least one financial plan for your own work team
· At least two resources that can be used to manage financial management processes.
These include, but are not limited to the following:
· Microsoft Excel
· Cloud-based storage
· Time tracking application
· At least two systems that can be used to manage financial management processes
These include, but are not limited to the following:
· Mind Your Own Business (MYOB)
· Quickbooks
· Xero
Accessing Intranet Pages and External Links
Throughout this workbook, you will be asked to access specific pages from the simulated business, Bounce Fitness and/or external webpages. Links to these pages are formatted in Blue Text.
To access these, hold the Ctrl key for Windows users while clicking on these links. For Mac users, directly click the link.
The simulated business, Bounce Fitness, can be accessed by going to http://bouncefitness.precisiongroup.com.au.
Login to Bounce Fitness using the username and password provided by your Registered Training Organisation (RTO).
Assessment Cover Sheet BSBFIN501 Manage budgets and financial plans
Student’s name:
Assessors Name:
Date:
Is the Student ready for assessment?
Yes
No
Has the assessment process been explained?
Yes
No
Does the Student understand which evidence is to be collected and how?
Yes
No
Have the Student’s rights and the appeal system been fully explained?
Yes
No
Have you discussed any special needs to be considered during assessment?
Yes
No
The following documents must be completed and attached
□ Assessment Task 1 - Knowledge Test Checklist
The student will complete the written activity provided to them by the assessor.
The Written Activity Checklist will be completed by the assessor.
S
NYS
□ Assessment Task 2 – Project Checklist: Financial Management Planning Project
The student will complete the practical activity provided to them by the assessor.
The Practical Activity Checklist will be completed by the assessor.
S
NYS
□ Assessment Task 3 – Project Checklist: Financial Management Plan Implementation Project
The student will answer a range of questions either verbally or written.
The Questioning Checklist will be completed by the assessor.
S
NYS
□ Assessment Task 4 – Review and Evaluation of Financial Management Process Project
The student will complete the Work Task provided to them by the assessor.
The Work Task Checklist will be completed by the assessor.
S
NYS
I agree to undertake assessment in the knowledge that information gathered will only be used for professional development purposes and can only be accessed by the RTO:
Overall Outcome □Competent □Not yet Competent
Student Signature:
Date:
Assessor Signature:
Date:
Result and Feedback
Feedback to Student:
Overall Outcome □Competent □Not yet Competent
Assessor Signature:
Date:
Assessment Task 1: Knowledge Test
Short Answer Questions
Assessment type
Written Questions
Instructions provided to the student:
Assessment task description:
· This is the first (1) assessment task you must successfully complete to be deemed competent in this unit of competency.
· The Knowledge Test is comprised of seven (7) 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 an answer within the required word limit, to be deemed satisfactory in this task.
Applicable conditions:
· All knowledge tests are untimed and are conducted as open book assessment (this means you can refer to your textbook during the test).
· You must read and respond to all questions.
· You may handwrite/use a computer 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.
Resubmissions and reattempts:
· Where a student’s answers are deemed not satisfactory after the first attempt, a resubmission attempt will be allowed.
· The student may speak to their trainer/assessor if they have any difficulty in completing this task and require reasonable adjustments.
· For more information, please refer to the Training Organisation’s Student Handbook.
Location: Classroom
Instructions for answering the written questions:
· Complete a written assessment consisting of a series of questions.
· You will be required to answer all the questions correctly.
· Do not start answering questions without understanding what is required. Read the questions carefully and critically analyse them for a few seconds; this will help you to identify what information is needed in the answer.
· Your answers must demonstrate an understanding and application of the relevant concepts and critical thinking.
· Be concise, to the point and write answers within the word-limit given to each question. Do not provide irrelevant information. Remember, quantity is not quality.
· You must write your responses in your own words.
· Use non-discriminatory language. The language used should not devalue, demean, or exclude individuals or groups based on 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 other sources to write your answers or research your work, always acknowledge the source.
Purpose of the assessment
This assessment task is designed to evaluate student’s knowledge essential to contribute to organisational performance development in a range of contexts and industry settings and knowledge regarding the following:
· Knowledge of the purposes and benefits of an organisational performance development program
· Knowledge of the components of an organisational performance development program
· Knowledge of the organisational performance development program design principles
· Knowledge of the roles in an organisational performance development
· Knowledge of the legislation and organisational policies relevant to organisational performance development, including confidentiality and privacy requirements
· Knowledge of the key methods for evaluating and reporting on organisational performance development programs..
Task instructions
· This is an individual assessment.
· To ensure your responses are satisfactory, consult a range of learning resources and other information such as handouts, textbooks, learner resources etc.
· The student must attempt all questions.
· Instructions/Guidelines such as word limit, what is expected from the student, example answer etc., have been given to each question.
· The student must complete this task individually.
· The student’s answers must demonstrate understanding and application of relevant concepts and critical thinking.
· To be assessed as Satisfactory in this assessment task, all questions must be answered correctly.
Question 1
Identify two basic accounting principles and briefly explain how each is applied in the workplace.
Accounting Principle
Explanation of How Each Principle is Applied in the Workplace
a. Principle of Accrual
Accounting principles are rules followed for recording financial transactions. One such principle is accrual principle, according to which all income and expenses are recognized in the period in which it is earned or incurred irrespective of the payment period. VB Granites follows accrual principle as it record the sales when the company raise bill to customer irrespective of the fact that payment is received in next year.
b. Principle of going concern
The principle says that an organization is established for long run. From last 15 years, VB Granites is providing stone products to construction sites and it follows going concern concept while recording all transactions with the understanding that business will remain in operation for longer period and the plans will be executed accordingly.
Question 2
Identify the two types of ageing accounts found in ageing summaries and briefly explain how each is used using your own words.
Types of Ageing Accounts
Explanation of How Each is Used
a. Debtors’ Ageing
Debtors’ ageing is a way to present the money overdue from customers over a specific period i.e. 90 days. It is prepared as totaling all invoices remaining unpaid at specific interval and reducing credit notes issued, if any. VB Granites use debtors’ ageing in a report format for different intervals 0-30, 30-60, 60-90 and > 90 days.
b. Creditors’ Ageing
Alike Debtors’ ageing, creditors’ ageing also provide details of money overdue to vendors by VB Granites over a specific period. It is prepared as totaling all invoices remaining unpaid by VB Granites at specific interval and reducing debit notes issued, if any. VB Granites use creditors’ ageing in a report format for different intervals 0-30, 30-60, 60-90 and > 90 days.
Question 3
Identify the three types of cash flow activities and briefly explain each using your own words.
Types of Cash Flow Activities
Explanation of Each Cash Flow Activity
a. Cash flow from operating activities
Cash flow from operating activities represent revenue generated from day to day routine operations like sales, purchases, salary, etc. There are two methods for arriving cash flow from operating activities, direct and indirect method. Direct method uses cash receipts and cash payments whereas, indirect method makes adjustment to net profit by adding back non cash items like depreciation, gain or loss on fixed assets.
b. Cash flow from investing activities
Cash flow from investing activities represent purchase and sale transactions of assets and other investments in cash. Example : Purchase of machinery or sale of motor vehicle.
c. Cash flow from financing activities
Cash flow from financing activities captures equity or preference capital infusions or redemption of capital, borrowing related transactions in cash , interest on borrowings and dividend on shares.
Question 4
Identify two types of petty cash books and briefly explain how petty cash is recorded on each using your own words.
Types of Petty Cash Books
Explanation of How Petty Cash is Recorded
a. Simple petty cash book
Petty cash book records a separate amount received for routine expenses. On debit side, amount received is shown and on credit side, expenses are shown.
b. Analytical or Columnar petty cash book
In this type of petty cash book, amount received is recorded and there are separate columns for routine expenses like telephone, cartage, etc. and there is total column also which record total expenses
Question 5
Review the following link regarding reporting of Goods and Services Tax (GST):
GST reporting methods
https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/GST-reporting-methods/
Answer the following questions based on the link provided.
a. Identify ALL information a business is required to report in their Business activity statement (BAS) if they are using the full reporting method
If a business has GST turnover is or exceeds $10 million, then, reporting GST using the full reporting method is mandatory. Following items will have to be shown using full reporting method:
G1- Total Sales G11- Non capital purchases
G2- Export Sales 1A- GST on sales
G3- Other Free GST Sales 1B- GST on purchases
G10- Capital purchases
b. Identify the condition that would require a business to report GST using the full reporting method.
The condition for full reporting method for reporting GST is that the business should have turnover of $10 million or more.
c. Identify ALL information a business is required to report in their BAS if they are using the instalment method.
A business uses instalment method when its GST turnover is below $10 million and GST instalments are paid quarterly and reported annually. Further, following items are to be reported using this method:
G1 – Total sales
1A – GST on sales
1B – GST on purchases
1H – GST instalment amounts reported in your quarterly instalment notices for the period shown on the annual GST return.
Question 6
Identify three categories of financial information that is reported in Profit & Loss Statements. Briefly define each using your own words.
Categories of Financial Information
Definition of Each Category of Financial Information
a. Revenue
Profit and loss Statement starts with revenue only. It consist of sales, interest, dividend and other incomes.
b. Expense
Expenses form second line items in presentation of profit and loss statement. It covers cost of goods produce, salaries, depreciation on assets, etc.
c. Net income
It is the result of revenue less expense and shows the net income earned by VB Granites.
Question 7
List two legislations under the Australian Taxation Office (ATO) relevant to business taxation, except GST. Briefly explain the purpose of each legislation using your own words.
Legislation
Explanation of Each Legislation
a. Income Tax Assessment Act, 1997
This legislation covers income tax provisions for individuals and entities in Australia.
b. Industry Research and Development Act, 1986
This legislation administers research and development tax incentive for Australian businesses.
Question 8
List two current tax requirements of the Australian Taxation Office (ATO) for businesses aside from the Goods and Services Tax (GST) already listed below.
For each tax requirement, including the GST, you must:
· Identify the following
· Link to the ATO requirement
· Date you accessed the source
· Date the source was last modified
· Brief explanation of the requirement that the business must pay using your own words
The information provided must be in line with the most current requirements upon the date of access.
ATO Tax Requirement for Businesses
Explanation of Each ATO Tax Requirement for Businesses
a. Goods and Services Tax (GST)
If your business has a GST turnover of $75,000 or more, you should register your business under GST.
If your business wants to claim fuel tax credit, then also , you have to obtain GST registration irrespective of the fact that turnover is below $75,000.
Source
https://www.ato.gov.au/Business/GST/Registering-for-GST/
Date Accessed
06-4-2022
Modification Date
nil
b. Income Tax Assessment Act, 1997 (ITAA,1997)
ITAA 1997 regulates income taxation for business and other entities in Australia. For filing tax returns or paying tax instalments to ATO, claiming credits, your business needs to have Tax File Number (TFN) as a registration proof.
Source
https://www.ato.gov.au/business/registration/work-out-which-registrations-you-need/taxation-registrations/tax-file-number/
Date Accessed
06-04-2022
Modification Date
Nil
c. Fuel Tax Credit
For claiming credits for the fuel tax i.e. excise or customs duty included in the price of fuel you use in your business activities, your business should obtain registration for fuel tax credit. Along with that, your business must have GST registration also.
Source
https://www.ato.gov.au/Business/Registration/Work-out-which-registrations-you-need/Taxation-registrations/Fuel-tax-credits/
Date Accessed
Modification Date
Question 9
Identify two key requirements for financial record-keeping and briefly explain each using your own words.
Key Requirements for Financial Record-keeping
Explanation of Each Key Requirement
a. Electronic record keeping system
To maintain books digitally for every financial year, electronic record keeping system i.e. accounting software is must like Xero, Quickbooks, etc.
b. Accountant
The personnel required for recording and maintaining accounting for business are accountants and they manage all financial record keeping activities .
Question 10
Identify at least two sections of the Corporations Act 2001 containing key requirements for financial auditing. Identify at least one requirement of financial auditing from each section indicated.
You must indicate the volume and the section of the Act when identifying the relevant section.
Access the following link to assist you in completing this task:
Corporations Act 2001 Series
https://www.legislation.gov.au/Series/C2004A00818
Ensure that you are accessing the current version of the Corporations Act 2001
Sections of Corporations Act
Requirements for Financial Auditing
a. Section 301, Division I, Part- 2M.3 of Corporation Act, 2001
The financial report of a company, registered scheme or disclosing entity should be audited every year. Further, an auditor’s report as per provisions of Division 3 should also be obtained.
This section contain auditing requirements for small proprietary company and company limited by guarantee
b. Section 307, Division III, Part 2M.3 of Corporation Act, 2001
This section relates to auditing of financial report for each financial year. An audit report should form opinion about financial report whether presenting true and fair view and is in compliance with accounting standards applicable to entity.
Question 11
Identify at least three principles for managing work teams and briefly explain how each promotes effective team management.
Principle of Managing a Team
Explanation of How Principle Promotes Effective Team Management
a. Work division
This principle states that work should be delegated within teams instead of giving it to one person. This results in segregation of duties and checking of work when it passes to another person after completion of one part of whole activity.
b. Discipline
The principle implies following the policies and procedure, regulations of company in work.
c. Leadership
There should be a leader to handle team so as to properly communicate the desired results, methods to achieve that result, coordinating with team , resolving any dispute and provide the feedback to the team.
Question 12
Identify one principle involved in managing each of the financial requirements listed below. Briefly describe each principle using your own words.
Financial Requirement
Principles
Description of Each Principle
a. Budgeting
Annuality
This principle means that budget is prepared every year and all revenues and expenses are estimated for every financial year and compared with the actuals and any deviations are analyzed to do better in next year.
b. Cash flows
Consistency
While preparing cash flow statement, consistency principle should be adopted at the time of classifying any activity into operating, financing and investing.
c. Electronic spreadsheets
Output focus
While using electronic spreadsheets, one should keep in mind the output required and accordingly, put logics in sheet to achieve desired output.
d. GST
Consumption
The basic principle for levying GST is consumption as it is levied on goods or services consumed. The supplier collects GST from consumer and pays to the Government for goods or services supplied.
e. Ledgers
Recording
Ledger adopts recording principle which means that it records every debit and credit transaction related to an account like cash ledger, it includes all money flowing in and flowing out.
f. Financial Statements
True and fair view
Financial statements should be prepared with transparency and honesty so that when it is presented to stakeholders, it shows the actual financial health of company.
g. Profit and Loss Statements
Matching
Matching principle should be adopted at the time of preparing profit and loss statement which means that expense relating to earn any revenue should also be reported.
Question 13
Briefly describe how to use or calculate for the following financial requirements.
Financial Requirements
How Do You Calculate These?
a. Cash Flows
Cash flows are derived by preparing cash flow statements which is divided into three parts: Cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. The total cash flows from all three activities are added with cash and cash equivalents at the beginning of the year and the balance at the end is achieved.
b. GST
GST rate in Australia is 10%. So, the base price of goods or services is multiplied with GST rate to arrive at GST. If the price is inclusive of GST, then reverse calculation is required, for example , a product with the price of $100 will be divided by 11 and the result will be $9.09 which is GST included in price of product.
Financial Requirements
How Do You Use These?
a. Budgets
Budgets are used to estimate revenue and expenses over a period of time and allows finance function to make important decisions.
b. Electronic Spreadsheets
Electronic spreadsheets are used to prepare various important reports, preparing charts, payroll, reconciliations and MIS, etc.
c. Ledgers
Ledgers are used to prepare trial balance for a period. The trial balance is then taken to prepare profit and loss, cash flow and balance sheet.
d. Financial Statements
Financial statements are useful for investors and other stakeholders to take important decisions for further investments, supplies, etc. Financial statements are the basis to obtain any sanctions, loans , etc. It also provides details for important events and major happenings like COVID-19 and its impact on the business.
e. Profit and Loss Statements
Profit and loss statements are used to get the details of various categories of expenses incurred , revenue items and earning per share of company.
Question 14
Identify the two areas that you need to evaluate when reviewing budget plans. Briefly explain why each needs to be reviewed.
Areas to Evaluate when Reviewing Budget Plans
Explanation Why Each Area Needs to be Evaluated
a. Income
At the time of review of budget, it is necessary to evaluate your budgeted income against actual income. On comparison, you should analyze the reason of any shortfall or reason of setting low target if the actuals are much higher. These comparisons should be done considering time horizon of budget and actual results.
b. Expenditure
Expenditure are of two types: Fixed and variable. Reviewing budget should include evaluation of each item of expenditure with the actuals and note variances and the reasons thereof to be considered at the time of next budget preparation. Any assumptions relating to variable costs taken at the time budget that may have changed in actual should also be considered while evaluating expenditure area.
Question 15
Identify at least two techniques for evaluating budget plans and briefly explain how each is applied.
Techniques to Evaluate Budget Plans
Application of Technique
a. Cost benefit Analysis
This technique is applied to understand the outcome of preparation of budget. It can be measured in terms of numbers of units produced, hours worked, etc. and the cost which is incurred and the sale price per unit and the contribution per unit.
b. Variance Analysis
This technique is applied to know the gaps in budget prepared and actual results. The variations between the two are then analyzed and the necessary actions be it setting higher target or improving production efficiency are taken.
Question 16
Identify the three key financial statements that you must review when conducting an annual evaluation of your financial plans. Briefly explain why each financial statement needs to be evaluated.
Key Financial Statements
Explanation Why Each Financial Statement Needs to be Evaluated
a. Balance Sheet
While conducting an annual evaluation of financial plans, the most important financial statement to be reviewed is balance sheet. Balance Sheet gives the picture of assets held by the company and against that debt and equity it possess. So, your financial plan will give performance indicators in terms of ratios like debtor turnover, capital gearing ratio, etc. and all these can be found in balance sheet. Further, any contingent event will also form part of balance sheet which affects financial plan.
b. Profit and loss statement
Evaluation of profit and loss statement is necessary to identify how profitable the operations of business are and how much return the company is providing to its investors. Financial plans will consider the aspects of major expense categories along with any exceptional circumstances.
c. Cash flow Statement
Cash flows Statement should be reviewed as it will help in understanding the liquidity position of company. The impact on cash during the year will be from its operations, investments and financial activities. Overall, for evaluating financial plan, cash flow statement will provide the details of sources of funds and application of those funds.
Question 17
Identify at least two techniques for effective evaluation of financial plans. Briefly explain how each technique can be applied using your own words.
Techniques for Evaluating Financial Plans
Application of Technique
a. Ratio Analysis
Ratio Analysis is a common technique applied for evaluation of financial plans. This provide various types of ratios , liquidity, profitability, etc. For example, current asset ratio provide answer to the question that whether your current assets are sufficient to cover current liabilities. Return on equity ratio provides how much return you are getting on your capital employed, etc. Gross margin will show how much margin you are left with when you reduce cost of goods sold from your sales of product.
b. Break even analysis
This analysis gives you a position where you are making no profit no loss. Any business needs to do more to achieve this point and crossing this point to achieve desired profits and providing returns to investors. Your financial plans covers sales projections so this techniques will help you in forecasting your sales better.
BSBTWK502 Manage team effectiveness
ASSESSMENT Task 1 – Knowledge Test Checklist
Student’s Name
Assessor’s name:
Satisfactory response:
Yes
No
1
Identified at least two effects of group dynamics on team performance
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Explained how each effect of group dynamics impacts team performance
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2
Identified two methods that can be used to communicate with team members to establish team activities.
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3
Identified at least one strategy for the listed outcomes
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Explained how each strategy identified can allow the team leader to demonstrate support to achieve each outcome listed
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4
Identified at least two strategies for gaining consensus in a team.
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Explained how each strategy can be used to gain consensus
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5
Identified two strategies that can be used to resolve issues between team members.
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Explained how each strategy can be used to resolve issues.
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Feedback to Student:
Result □ Satisfactory □ Not Yet Satisfactory
Assessor’s Signature:
Date:
Practical Assessment
The Practical Assessment is a set of tasks that must be completed in a workplace, or in an environment with conditions similar to that of a real workplace.
To be assessed for this unit of competency, you must demonstrate your skills and knowledge to undertake financial management within a work team in an organisation.
1. Project Assessments
A series of tasks assessing the learner’s practical knowledge and skills relevant to the unit of competency. This includes the learner completing workplace documents or similar as evidence of competent performance.
2. Practical Observations
A set of assessment tasks where the learner must demonstrate practical skills relevant to the unit of competency. These skills are to be demonstrated while being observed by the assessor.
IMPORTANT
· All signatures/initials in your submissions, including yours, must be handwritten and dated. Submissions with signatures/initials must be scanned.
· The supervisor/observer who completes and signs your evidence submissions must provide their real name, contact number, and email address for your assessor’s reference.
Should you encounter issue or concerns regarding your assessment, contact your assessor.
Assessments 2 to 4: Projects
Project Overview
This project will require you to manage budgets and financial plans.
The project is divided into three parts:
· Assessment 2 - Financial Management Planning Project
· Assessment 3 Financial Management Plan Implementation Project
· Assessment 4 - Review and Evaluation of Financial Management Process Project
Read the instructions in this project carefully before proceeding.
These projects requires you to complete the assessment tasks in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
Each task comes with a set of instructions. You are to follow and perform these instructions while being observed by the assessor and/or submit any required documentation as evidence of task completion.
Before starting this assessment, your assessor will discuss with you these tasks, including instructions, resources, and guidance for satisfactorily completing them.
Resources Required for Assessment
Resources you need to access to complete this assessment are outlined in the Resources Required for Assessment section of this workbook and in the task overview of each part of the assessment.
Forms and Templates
Assessment forms and templates are provided in each task in this Project Assessment, unless otherwise specified.
Project 2 – Financial Management Planning
Assessment Task Instructions
· This assessment is to be submitted individually.
· To ensure your responses are satisfactory you should consult a range of learning resources and other information such as handouts, textbooks, learner resources etc.
· You must document your responses in the provided template.
· This assessment involves a role play, which must be completed in class. If you do not complete this role play, you cannot complete and submit your assessment and cannot be assessed as competent.
· You must be concise, to the point and write answers according to the given word limit to each question and not provide irrelevant information.
· You must write your responses in your own words.
· You will be required to complete all parts of this assessment task.
Project Overview
This part of the project requires you to review an existing budget plan and financial plan in your organisation. Specifically, you are required to:
· Access budget plan and financial plan documentation
· Negotiate changes that need to be applied to budget plan and financial plan
· Clarify budget plan and financial plan on their achievability, accuracy, and comprehensibility
· Prepare contingency plans in the event that initial plans change
Resources Required:
To complete this project, you will need access to the following:
· A workplace that will allow you access to:
· Workplace financial documentation, such as:
· Financial plan for your work team that includes the following:
· Cash flow projections
· Ageing Summaries
· Petty Cash Statements
· Goods and Service Tax (GST)
· Profit and Loss Statements
· One budget plan
Budget plans may include, but is not limited to the following:
· Short-term budget plan
· Long-term budget plan
· Two relevant personnel
This includes, but is not limited to the following:
· Financial managers
· Accountants
· Financial controllers
· Opportunity to manage at least one financial plan for your own work team
Project 2.1 Review Budget and Financial Plans
ASSESSMENT INSTRUCTIONS
1. Seek assistance from your supervisor to identify an opportunity to manage at least one financial plan for your work team.
Work team must consist of at least two members.
2. Access one of your organisation’s existing financial plans for your work team, which must be of at least two members. Your financial plan must include the following:
· At least one financial goal
Goals are general objectives that describe what you want to achieve with your finances in the long run.
· At least two financial objectives relevant to financial goal
These are the specific numerical milestones that indicate the accomplishment of your financial goal.
· Cash flow projections
· Ageing summaries
· Petty cash statements
· Goods and Service Tax (GST)
· At least two profit and loss statements
· At least one budget plan, which includes at least one budgetary objective
Budget plans include, but are not limited to, the following:
· Short-term budget plan
· Long-term budget plan
3. Access the Financial Review template found within this workbook. This outlines all the information required for this task.
4. Review the past performance of your financial records in relation to the financial goals and objectives of your financial plan.
5. Complete the Financial Review template. To do this, you must:
· Identify the following:
· At least one financial goal relevant to budgeting
· At least two financial objectives relevant to the identified financial goal
· Section of financial plan used
· Type of budget plan used
· Interpret the performance of the following in relation to your identified financial objectives:
Interpretation of financial documents is dependent on the objectives you have identified. You must ensure that you incorporate discussion of ALL identified financial objectives throughout your interpretation.
· Budget Plan
Interpretation includes but is limited to the following:
· If expenses incurred throughout the year are in line with budgetary requirements
· If the company was able to achieve positive variance
· Ageing summaries
Interpretation includes but is limited to the following:
· How will you tackle the unpaid invoices?
· What action must be taken to convert this to cash?
· Petty cash
Interpretation includes but is not limited to the following:
· Will the current petty cash suffice for the organisation?
· Is the petty cash accounted for in your budget?
· Cash flow statement
Interpretation includes but is not limited to the following:
· Is your budget consistent with your expected income based on the trends of your cash flow statements?
· Goods and Services Tax (GST)
Interpretation includes but is not limited to the following:
· Will you be able to claim GST credits at the end of the next tax period?
· Are GST credits included in the computation of your budgets?
· Profit and loss statement
Interpretation includes but is not limited to the following:
· Will the proposed budgets meet the expected expenses and cost?
· Will the current return on equity generate the required profit for your organisation?
6. Have your supervisor complete the Supervisor Declaration Form found at the end of the Financial Review template. This is to ensure that all information provided is accurate and factual.
7. Submit the completed Financial Review to your assessor.
Financial Review
Learner Name
Bala
Name of Workplace/
Organisation:
VB Granites Pty Ltd.
Date
08-04-2022
Financial Goal
My organization name is VB Granites Pty Ltd which is supplying stone products to construction industry. Its products have variety including tables, walls, floors, kitchen bench tops, etc. In this project, I have chosen this company and our work team has access to finance documents. Considering the relevant documents, the financial goal for VB Granites is set to achieve a...