TASK 4 

BSBFIM501 Manage budgets and financial plans

FINAL ASSESSMENT- Review and evaluate financial management processes

BSB51918 Diploma of Leadership and Management

 

ASSESSMENT ACTIVITY COVER SHEET

Please ensure this form is fully completed prior to submitting.

This page should be on the front of your assessment and needs to be easily accessible.

Student Number:
Student Name:
Subject:
Course:

STUDENT DECLARATION

I hereby certify that:

1. This assessment task is my own work based on my personal study/research and not the work of another student and/or source.
2. I have acknowledged all material and sources used to prepare this assessment task.
3. I have not plagiarised or copied any part of this assessment task from the work of any other student or source either.
4. This assessment task has not previously been submitted.
5. I am aware of the requirements set by my Trainer & Assessor.
6. I have retained a copy of this assessment task for my own records.
7. I have completed all my assessments, tasks & activities (on moodle®) successfully.

Student’s Signature: _______________________________  Date: _________________



Student instructions

This assessment must be based on where you work (or have worked most recently).

This Assessment is designed to test the knowledge that you have acquired throughout the unit. Use the following tips to help you answer the questions:

Read each question carefully. Check with your trainer or assessor if you are not sure what the question is asking.

HINT: Use these questions as subheadings to create a business style report to answer your assessment

Your response to each question should aim to provide enough information to answer the question. In most cases, this can be done with just a few paragraphs. Don’t forget to refer to attachments under the heading (question) applicable, e.g. ‘See attached email’.

Important: Your assessment must contain this coversheet and your own coversheet (for your “report”)

Your answers & assessment submission must professional in style (Business), content and format. Maximum font size 11 points: Font Arial or Times New Roman; single spacing; clear paragraphswith appropriate punctuation, spellchecking and final submission will need to be proof-read. (i.e. few missing words or typo’s)

In particular:

– Use clear, non-discriminatory language

– Avoid the use of jargon

– Write clearly using plain English

– Consider your target audience

– Ensure that your responses meet the needs of the target audience (in this case your trainer or assessor).

All of your work must be original.

Performance Evidence

Evidence of the ability to:

• use financial skills to work with and interpret budgets, ageing summaries, cash flow, petty cash, Goods and Services Tax (GST), and profit and loss statements
• communicate with relevant people to clarify budget/financial plans, negotiate changes and disseminate information
• prepare, implement and modify financial contingency plans
• monitor expenditure and control costs
• support and monitor team members
• report on budget and expenditure
• review and make recommendations for improvements to financial processes
• meet record keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

• describe basic accounting principles
• identify and explain the relevant legislation and current requirements of the Australian Taxation Office, including the Goods and Services Tax (GST)
• explain the key requirements for financiall record keeping and auditing
• describe the principles and techniques involved in managing:
• budgeting
• cash flows
• electronic spreadsheets
• GST
• ledgers and financial statements
• profit and loss statements.

Marking and Criteria guide:  

 

Assessor and student must read this carefully before assessment. 

A 75% demonstrated competence in the answers is the benchmark only and students & assessors must note that professionally critical aspects/concepts must be included (create budget and financial planning using electronic spreadsheet) .

All parts (criteria) in the marking guide must be completed successfully for the student to achieve competence in this unit.

 

EDUCATOR to complete 

Observation/assessment	Competent/NYC	(If resubmission required)  Competent/  NYC	Comments
Pre-assessment work completed
Assessment 1, Assessment 2, Assessment 3, Final Assessment, tasks & activities (on moodle®) successfully
Third Party Report
Third Party report Handed In (in person)
Did the student review and make recommendations to improve the budget or financial plan by preparing a report on the following points below and on how the budget/financial plan has been improved.
Did the student negotiate these changes with your supervisor and implement them?
Did the student make financial calculations?
Did the student demonstrate knowledge of GST and ATO recordkeeping requirements? Candidate’s written response shows ability to calculate GST and budget for GST liability for recording on BAS. Candidate’s written response indicates knowledge of five years GST recordkeeping requirement.

 Practical Checklist 

 

Assessor to complete:(circle) 

 

Did you observe the student?YesNo 

  

Further comments required 

 

Assessor Comments 

 

________________________________________________________________ 

________________________________________________________________ 

________________________________________________________________ 

________________________________________________________________ 

 

 

Resubmission required? Yes_________ No___________ 

 

Date resubmission must be handed in:  ________________________ 

 

Assessor’s name and signature:  _______________________________ 

 

Date:  _________________________ 

 

Activity –Review and evaluate financial management processes

1. In a workplace, review and make recommendations to improve the budget or financial plan by preparing a report on the following points below and on how the budget/financial plan has been improved. Negotiate these changes with your supervisor and implement them.

Ensure that you:

• Monitor relevant financial factors such as expenditure and controls of costs
• Prepare, implement and modify financial contingency plans as necessary
• Meet record keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes
• Monitor and support any team members that you are working with

1. Role Play

You are the Senior Accountant. As part of your role, you will need to complete the following tasks.

Task A

As you are aware, one risk to the strategic plans of Big Red Bicycle (BRB) is bad debt and poor cash flow due to large trade debtor balances. Consider the following:

• According to its policies, BRB offers 30 day terms to debtors.
• BRB does not currently train sales staff on credit terms.
• There is currently no enforcement of credit terms.
• Warehousing of stock is expensive at current leased premises.
• Many bicycles need to be thrown out if parts rust; this problem exacerbates the problem of waste expense.

You have the following information from the Statement of Financial Position and current ledger accounts in the electronic accounting system (MYOB Account Right). The sales of Big Red Bicycles are $2900,000.

Account	$
Trade debtors	362,500
Trade creditors	80,000
Opening stock	100,000
Closing stock	300,000
Purchases	1,000,000

↓↓↓

Complete the following.

Review the Statement of Financial Performance and calculate: The average debtor days The average creditor days The average stock turnover Show calculations and results on your response document for this assessment task.

• State how many years you will need to keep GST records in order to satisfy ATO requirements.

	July	August	September
Budgeted cash receipts incurring GST:
Cash sales	20,000	10,000	10,000
Cash revenue (besides sales)	0	0	0
Cash receipts from sale of assets (not stock)	0	0	0
Total receipts for GST	20,000	10,000	10,000
Budgeted non-cash receipts incurring GST:
Debtors sales	180,000	230,000	150,000
Total non-cash receipts	180,000	230,000	150,000
Total budgeted receipts incurring GST	200,000	240,000	160,000
Budgeted cash payments incurring GST:
Cash purchases of stock	0	0	0
Cash expenses	4,300	5,200	5,250
Total cash receipts incurring GST	4,300	5,200	5,250
Budgeted credit payments incurring GST:
Credit purchases of stock incurring GST	25,000	30,000	25,000
Credit purchases of assets (besides stock)	4,300	5,200	5,250
Total cash payments incurring GST	29,300	35,200	30,250
Total budgeted cash payments incurring GST	33,600	40,400	35,500
GST cash budget calculations
Cash receipts
Cash payments
GST liability