Manage finances within a budget
Portfolio - Variance Analysis- Product Launch
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Portfolio - Project Budget Review- Travel Expo
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Short answer questions - Theory questions
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Unit details Unit code SITXFIN003 Unit name Manage finances within a budget Unit purpose This unit describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. It requires the ability to interpret budgetary requirements, allocate resources, monitor actual income and expenditure, and report on budgetary deviations. This unit applies to all tourism, travel, hospitality and event sectors. The budget may be for an entire organisation, for a department or for a particular project or activity. It applies to those who operate independently or with limited guidance from others. This includes supervisors and departmental managers. Elements and performance criteria For further information about this unit go to: http://training.gov.au/Training/DetailsSITXFIN003 Unit outcome This unit is not graded. Your result will be recorded as Achieved Competence (AC) or Not Competent (NC) Pre-requisite/ Co-requisite units Nil Assessment plan To demonstrate competence in this unit, you must successfully complete each of the following assessment events: Event 1 Portfolio - Variance Analysis- Product Launch Event 2 Portfolio - Project Budget Review- Travel Expo Event 3 Short answer questions - Theory questions Assessment conditions Submission instructions Your assessment events must be submitted online via the Studespace website as per the instructions on the course introduction page. Student is required to provide the following materials and equipment To complete this assessment, you will need to provide: A personal computer with internet access TAFE is required to provide materials and equipment · SITXFIN003_ Budget_Product-Launch · SITXFIN003_Variance Analysis Report · SITXFIN003_Budget_Travel-Expo · SITXFIN003_Financial Performance Report_TEMPLATE_V1 Additional resources As above Facilitator support and supervision There is no facilitator supervision required for these assessment events. If you are unclear about any aspect of the assessment please contact your facilitator for guidance. Student collaboration Student collaboration is not permitted. Assessment attempts If you do not successfully complete an assessment event you may be given the opportunity to have a second attempt. This must be negotiated with your facilitator. General information Teachers will provide feedback within 2 weeks after all assessment activities have been conducted. You may appeal an assessment decision within three weeks of receiving your results. Plagiarism and referencing (Facilitator information only) If students engage in cheating such as copying, colluding with another person, using unauthorised notes, or allowing another person to copy your work, students will be liable for disciplinary action as per Student Discipline Policy TAFE NSW. Whatever the form of assessment, it is essential that the work students are assessed on is their own. Assessment event 1: Portfolio - Variance Analysis - Mobile Travel App Product Launch This event requires you to submit a portfolio (collection) of financial documents that demonstrates your ability to monitor financial activities against a budget, revise the allocation of resources and identify and evaluate options to improve overall budget performance, as well as how to communicate these findings appropriately with colleagues. The assessment for this event is based on the scenario (below). Your evidence must include: 1. Revised Budget (Task 1) 2. Variance analysis report (Task 2) 3. Email to staff (Task 3) Read through the following Scenario and then respond to the tasks that follow. You must use the templates provided. Scenario 1 - Email from Jayne Doman You have recently started in the role of Promotions Officer with the Travel Company. The Promo Crew is responsible for the branding and marketing or “public face” of the organisation. You receive the following email from your supervisor Jayne Doman, in relation to the budget performance of the recent Mobile Travel App Launch in Melbourne. Doman, Jayne From: Doman, Jayne Sent: Today’s date 9:47 AM To: Promotions Officer Subject: Budget allocation – Mobile Travel App launch I appreciate the work you did to ensure that the Melbourne launch for the Mobile Travel App was well attended and reviewed. Website enquiries have increased by 16.8% since the event 2 weeks ago. As you know the Gold Coast launch is now only 10 weeks away. Unfortunately, I have been informed by James Kelly our Lead Coin Controller that the budget allocation for the Melbourne launch was exceeded by over 60%. Despite the positive feedback from the event the company can simply not afford the additional expenses. It is my understanding that some of the variances were the result of poor planning and lack of attention to detail. Please refer to the Budget for Mobile Travel App Product Launch that was compiled by James’s Finance Support Officer Oli Robertson. In order to ensure that the combined budget for the two product launches remains within the budget allocation of $32,000, significant cut backs will need to be made to the Gold Coast event. At this stage sponsorship targets are not being met though I understand that the attendance at this event is anticipated to be around 240 people - 15% higher than Melbourne. 1. You’ll need to familiarise yourself with the Budget for Mobile Travel App Product Launch from the first event and review the budget allocations for the Gold Coast launch to ensure that the overall budget allocation is not exceeded. You will need to document these changes on the Budget for Mobile Travel App Product Launch and submit for approval. 2. I’ll also need a Variance Analysis Report. I trust that you are aware that the variance threshold held by the organisation is currently 9.8% so any variances over this amount will need comment on in the report and cover specifically the following: · Sponsorship revenue under target - combined 26.5% · Casual wages - 20% over budget · Food and beverage costs - 20% over budget · VIP invitations - 16.2% over budget In addition to your comments, include a justified reason for the variance. I’d like to hear your recommendations for how you will improve the process in the future using examples, strategies or reasons per variance. 3. Also, can you prepare an email for the Promo Crew team advising them of the following: · Details of the upcoming budget changes for the Gold Coast launch of the Mobile Travel App, including an outline and justification of any changes that have been made as a result of needing to meet the combined financial priorities. · A discussion of initiatives and ongoing training that will be implemented to ensure that staff understand their financial targets and adapt strategies to reduce going over budget when planning future events. · Ensure that team members are aware of the importance of budget control and its impact on the success of the organisation. Thanks so much. I look forward to your cooperation and commitment towards a successful, on budget launch. Kind regards Jayne Jayne Doman Task 1: Submit a revised budget Based on the Scenario 1 – Email from Jayne Doman above, view the Budget for Mobile Travel App Product Launch (Appendix A below). Adjust this budget according to the following: (Note: look for the additional column inserted in the excel spreadsheet for you to make the appropriate adjustments) 1. Calculate the variances for Launch 1 - Melbourne and highlight them as either favourable or unfavourable (see under Unfavourable/Favourable column). 2. Adjust the budget totals for Launch 2 - Gold Coast. These changes should ensure that the overall combined event totals are able to stay under the $32,000 budget allocation (see under Revised Budget column). 3. Ensure that all changes are consistent with budget and agreed priorities. Page 2 of 2 Appendix A: Budget for Mobile Travel App Product Launch ******* To complete this task, access your working copy of this document here. (If unable to open, a copy is available in the Assignment Tab in Studespace where you upload your assessment). Task 2: Variance analysis report Refer to the document directly below Appendix B: Scenario 1 – Mobile Travel App Product Launch – Melbourne Budget Variances graph, and then complete the Variance Analysis Report. The variance analysis report must: 1. Describe your findings on the four (4) variances that exceeded the variance threshold: · Sponsorship revenue · Casual wage · Food and Beverage cost · VIP invitation costs Outline your recommendation for how you will enhance this process in the future using examples and strategies to improve long term performance. Appendix B: Scenario 1 - Mobile Travel App Product Launch - Melbourne Budget Variances graph Variance Analysis Report List your findings and recommendations here. Variance Describe your findings Recommendation(s) for improvement 1. Sponsorship revenue 2. Casual wage 3. Food and beverage cost 4. VIP invitation costs Task 3: Email to staff Based on your findings for tasks 1 & 2, draft an email to be distributed to the Promo Crew members. Use the Draft Email template (Appendix C below). The email must: 1. Describe the details of the budget changes you have made to the Gold Coast launch, including a justification for any changes made and the impact (both positive and negative) that these changes may have on staff. 2. Describe the initiatives and ongoing training that will be implemented to ensure that staff understand their financial targets and adapt strategies to reduce going over budget when planning future events. 3. Outline the importance of budget control and its impact on the overall success of the organisation. Appendix C: Draft Email to the Promo Crew Name, Your From: Name, Your Sent: Today’s date 1:22 PM To: Promo Crew Subject: Gold Coast – Mobile Travel App launch Your Name Promotions Officer Assessment event 2: Portfolio – Project Budget Review - Outdoor Travel Expo This event requires you to submit a detailed financial performance report that demonstrates your ability to identify and evaluate options to improve budget performance through completing financial analysis and documented reports. The assessment for this event is based on the scenario (below). Your report must include: 1. Financial performance (Task 1) 2. Contact your facilitator to discuss the budget requirements for the Travel Expo & Family Fun Day based on your Budget Review Report (Task 2) Read through the following Scenario and then respond to the tasks that follow. You must use the templates provided. Scenario 2 – Email from Jayne Doman You receive the following email from your supervisor Jayne Doman, confirming budget targets for the upcoming Outdoor Travel Expo and Family Fun Day. Background You have recently started in the role of Promotions Officer with the Travel Company. The Promo Crew is responsible for providing The Travel Company with a unique, professional style and flair like no other. Leaders in marketing and media, the Promo Crew creates our branding and style guide and our image to the corporate world.