Enhance College of Technology

Enhance Professional Training Pty Ltd

ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Assessment Task 2. Assignment (Budget Workbook Portfolio)

Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN004 Prepare and monitor budgets
Trainer/Assessor

Assessment for this Unit of Competency/Cluster Details

Assessment 1 Short Answer Questions
Assessment 2 Assignment (Budget Workbook Portfolio)
Assessment 3 Project
Assessment conducted in this instance: Assessment 1 2 3

Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /

This assessment: First Attempt 2nd Attempt Extension – Date: / /

Task 1 Satisfactory Not Yet Satisfactory
Task 2 Satisfactory Not Yet Satisfactory
Task 3 Satisfactory Not Yet Satisfactory
Task 4 Satisfactory Not Yet Satisfactory
RESULT OF ASSESSMENT
Task 5 Satisfactory Not Yet Satisfactory
Task 6 Satisfactory Not Yet Satisfactory
Task 7 Satisfactory Not Yet Satisfactory
Task 8 Satisfactory Not Yet Satisfactory
Feedback to Student:

Assessor(s) Signature(s): Date: / /

Student Signature Date: / /

Page 1 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further adjustment required

Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:

Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date

2nd Assessor to complete

I agree the adjustments applied to this assessment are reasonable
Name

Signature Date

Page 2 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Assessment Guidelines
What will be assessed
Performance Evidence

The purpose of this assessment is to assess your ability to complete tasks outlined in elements and
performance criteria of this unit in the context of the job role, and:
 prepare a budget for a business that meets the specific business’ needs
 demonstrate the following when preparing the above budget:
o consultation on components
o analysis of factors that impact on the budget
o completion of draft and final versions of budget within designated timelines
Knowledge Evidence:
 types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
 budget terminology
 specific industry sector and organisation:
o role and nature of budgets
o budget formats, budget performance and financial reports
o financial reporting procedures and cycles
o features and functions of accounting software programs used to prepare and monitor budgets
 internal and external factors that impact on budget development:
o growth or decline in economic conditions
o human resource requirements
o new legislation or regulation
o organisational and management restructures
o organisational objectives
o scope of the project
o shift in market trends
o significant price movement for certain commodities or items
o supplier availability and cost
 budget preparation and monitoring practices and techniques:
o sources and contents of data required for budget preparation:
 competitor research
 customer or supplier research
 declared commitments in areas of operation
 financial information from suppliers
 financial proposals from key stakeholders
 income and expenditure for previous time periods
 departmental, event or project budgets
 grant funding guidelines or limitations
 management policies and procedures
 organisational budget preparation guidelines
 performance information from previous periods
o techniques for making budget estimates
o common reasons for deviations and budget deviation management.

Page 3 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au
Place/Location where assessment will be conducted; Timeframe for assessment tasks

Enhance College of Technology

Resource Requirements

Computer with Microsoft excel

Calculator
Workbook Template Spread Sheets:
“Task 1-Hotel Futura Budget Forecast”
“Task 2-Budget Futura_Restaurant_Bar”
“Task 3-Hotel Futura Budget Forecast & Hotel Futura Budget Forecast”
“Task 4-Profit and Loss”
“Task 5-Labour Budget”
“Task 6-Event Budget”
“Task 7-Cash Flow Budget”
“Task 8-Purchasing/ Expenses Budget”

Instructions for assessment including WHS requirements

The assignment for Assessment 2 Assignment consists of Tasks
Task 1
Requires you to prepare a draft budget following a meeting with all heads of department where you have finalised the details and
requirements to be included for next year’s budget.

Task 2
Requires you to prepare a final budget, based on the changes made to your draft budget following a management meeting.

Task 3
Requires you to respond to 3 financial scenarios.
All responses must be typed and clearly referenced to each task. Your trainer will provide you with feedback for each task. You will be
provided with the opportunity to rectify any shortfalls based on the feedback from submitted work for this assessment.
Each completed spreadsheet must be attached to the relevant task and clearly referenced.

Task 4 Profit and Loss

Details provided in assessment.

Task 5 Labour Budget

Details provided in assessment.

Task 6 Event Budget

Details provided in assessment.

Task 7 Cash Flow Budget

Details provided in assessment.

Task 8 Purchasing/ Expenses Budget

Details provided in assessment.

Page 4 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 1

Your Tasks:

You are required to complete a draft budget based on information and factors that were determined during an
executive meeting at Hotel Futura.

1. Access the excel spreadsheet named “Task 1-Hotel Futura Budget_Forecast”. The first tab on this
spreadsheet is labelled “Departments Small” and shows the existing budget figures for the 2016
financial year.

2. Use the template “Draft Budget” on the second tab of the spreadsheet and perform the calculations
below using basic formulas.
Your forecast needs to include the Dollar Figures and the % values for these affected by changes outlined
below.

The % values must be listed for each expense item shown in the Expenses Analysis for each department.

You have met with the department heads of Hotel Futura and the following details have been discussed to
prepare your draft budget for 2017:

1. Rooms Division:

a. Due to renovations the rooms available have been reduced to 96%.

b. The forecasted occupancy rate has been adjusted to 80%.
c. The revenue per available room needs to be increased to $150.00
d. The COGS will increase to 15% of total room revenue
e. Staff costs need to be increased to 20% of total room revenue to allow for increases in superannuation
and awards.
f. Other Expenses need to increase to 8% of total room revenue to cover electricity price rises.

2. Catering:

a. The food revenue will be increased by 15% due to a new marketing campaign and specialty menus
b. The beverage revenue will increase by 8%.
c. Staff costs need to be adjusted to 44% of the food budget.
d. Other Expenses will need to be increased to 7%.

Page 5 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au
3. Banquet:

The Banquet Division will be directly affected by the new marketing campaign which has been directed at
daytime seminars and corporate functions. For this purpose the kitchen has received specialised equipment
including multiple combi steamers, hold-o-mats and sous-vide equipment.

a. The new food revenue budget was set at $ 2,000,000.00 ($2 Million) and the beverage revenue was
increased by 75%.
b. The COGS will increase to 26%.
c. The staff costs have been reduced to 19%.
d. Other Expenses will need to increase to 14%.

4. Room Service:

a. The room service revenue from food needs to be increased by 15%.

b. Due to a different system to clear floors and organise delivery, the staff costs will be reduced to 34%.

5. Mini Bar:

The mini bar budget remains unchanged and increased staff costs are absorbed through different processes.

6. Bar Budget:

a. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
b. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar and
happy hour specials.
c. Staff costs will need to be adjusted to 36%.
d. Other Expenses need to be increased to 18%.

Page 6 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 2

Your Tasks:

You have provided the chief financial controller with the draft budget for 2017. Following the recent executive
meeting where the draft budget was discussed, you are now required to establish the final budget reflecting
the changes based on the latest actuals and variances as well as major road works which will affect Futura
Restaurant and Bar during 2017.

A. Access the excel spread sheet named “Task 2-Budget Futura_Rest.&Bar”. The first tab on this spreadsheet is
labelled “Futura Restaurant and Bar” and shows the Draft budget figures for the 2017 financial year.

B. Use the template “Revised Budget” on the second tab of the spreadsheet and perform the calculations
below using basic formulas based on the following changes:

Month Customer numbers Average Spend (Food) Average Spend (Beverage)

January 1850 $ 45.00 $ 9.70

February 2000 $ 37.00 $ 9.70
March 700 $ 42.00 $ 9.70
April 1200 $ 48.00 $ 9.70
May 1200 $ 36.50 $ 9.70
June 600 $ 35.00 $ 9.70
July 950 $ 34.00 $ 9.70
August 800 $ 38.00 $ 9.70
September 900 $ 29.00 $ 9.70
October 650 $ 29.50 $ 9.70
November 980 $ 35.50 $ 9.70
December 2200 $ 48.00 $ 9.70

Page 7 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au
1. Calculate the anticipated Food revenue for each month and the yearly total.

2. Calculate the anticipated Beverage revenue per month and the yearly total.

3. Calculate the Total Revenue for each month and the yearly total.

4. Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000 or
more customers and at 96% for each month with less than 1000 customers) and the yearly total.

5. Calculate the profit for each month and the yearly total.

6. Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.

7. Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at 35% for
each month with less than 1000 customers.

8. Calculate the ‘Other overheads” for the operation.

9. Print a copy of the revised budget.

10. Print the revised budget showing all formulae used.

Page 8 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 3

Your Tasks:

Read the following 3 scenarios and answer the questions attached for each scenario.

Scenario 1:

The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for the last
3 years and these were always very accurate. The recent budget which included all departments of the hotel was
implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages in both the Restaurant
and the Bar Operations have blown out by nearly 4.5 percent.

What could be the reasons for this? List 5 examples of areas you would investigate and explain why.

Scenario 2:

Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and during
the past 3 budget periods annual budgets have been increased by 15% each year which was exceeded each time.
During the last 6 months however, management has noticed that the opposite trend seems to be occurring now.

List 5 external factors which could contribute to this and explain which methods you would use to determine
this.

Page 9 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au
Scenario 3:

You have successfully negotiated the draft budget with each department head of the Hotel which has now been
approved by the director and implemented 6 weeks ago.
You have finalised the financial data of the Hotel for the next management meeting and noticed the following:

a.
Department Budget Actual Variance
Kitchen/Food Cost 28% 32% (-)$ 13467

b. The recently appointed F&B Manager has purchased 240 bottles of Hill of Blessings @ $90 each which
represents a saving of $30 per bottle. However this exceeds the par stock level by 220 bottles and has
created a cashflow problem, given the negative performance of the kitchen during this period as well.

1. Which reports would you need to prepare for these issues?

2. Who is it essential to involve when these matters need to be discussed?

3. Suggest options to address and rectify these issues.

4. How could the cashflow issue be addressed?

Page 10 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 4 Profit and Loss

Your Tasks:

You are required to complete the Profit and Loss statement based on information provided in the Futura
Hotel and Futura Restaurant and Bar previously used.

 Access the excel Workbook Provided by Enhance College of Technology. The first tab on this workbook is
labelled “P&L” and shows the Profit and Loss statement generated for the Futura Hotel (including
restaurant and bar).

 Use information provided, follow the below instructions to calculate the data to fill in the highlighted
boxes of missing information within the spreadsheet:
F&B
1. Calculate the variance in food revenue.
2. Calculate the total budget for F&B.
Rooms
1. Calculate the variance in rooms occupied.
2. Calculate the variance in total room revenue.
All Revenue
1. Calculate the total revenue variance.
CoGs
1. Calculate the cost of food variance.
2. Calculate the % of cost of food variance in relation to the budget.
3. Calculate the total actual cost of goods.
Wages
1. Calculate the total labour cost budget.
2. Calculate the total labour cost variance % in relation to the budget.
All Expenses
1. Calculate labour cost variance % in relation to the budget.
2. Calculate previous year total expenses as a % in relation to the total expenses compared to total
revenue.
P&L
1. Calculate the actual profit/(loss).

Page 11 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Submit the completed Profit & Loss budget.

Compose a draft email to specific Head(s) of Department(s) that data within the report have shown to have
high variances. This email should contain the following:

 Gain clarification on possible reasoning behind the variances;

 Who they may need to speak to and what about to gain further relevant budget data;
 Use of data ($ / # / %) to support statements and suggestions.

Compose a draft email to the Head Chef, Bar Manager or Restaurant Manager to complete required research
to help with composing the new budget for the upcoming budget period. This email should contain the
following:

 Mention of the analysis metrics to be used;

 Who they may need to speak to and what about to gain further relevant budget data;
 Provide appropriate timeframe and preferred methods for the reports to be provided in;
 Specify forms of data ($ / # / %) to be generated and reported.

Page 12 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 5 Labour Budget

Your Tasks:

You are required to complete the Labour Budget report based on information provided in the Futura Hotel
and Futura Restaurant and Bar previously used.

 Access the excel Workbook Provided by Enhance College of Technology. The second tab on this
workbook is labelled “Labour” and shows the Labour statement generated for the Futura Hotel
(including restaurant and bar).

 Use information provided to calculate the data to fill in the highlighted boxes of missing information
within the spreadsheet.

Recently there has been an organisational change with an increase of 3% to be applied to the wages of all
staff.

 The new forecasted budget values for the next budget period need to be increased by 3% to honour
organisational change;

Recently there has been an organisational change with an increase of 1.5% to be applied to all staff
superannuation, bringing superannuation contributions up to 10.5%.

 The new forecasted budget values for the next budget period need to be increased by 1.5% to honour
organisational change;

Submit the revised Labour budget with these amendments completed.

Page 13 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 6 Event Budget

Your Tasks:

You are required to complete the Event budget.

 Access the excel Workbook Provided by Enhance College of Technology. The third tab on this
spreadsheet is labelled “Event” and shows the Event budget being generated for an upcoming corporate
lunch.

 Use information provided to calculate the data to fill in the highlighted boxes of missing information
within the spreadsheet.
Event Budget changes and amendments:

 Guests will no longer require the sandwich platter as they have decided to lunch off site, $0 to be
charged;

 They wish to increase the cookies and fruit platters by 2 (one in morning and one in afternoon), this
needs to be added;

 Chef will only be required for 2 hours as a result of these requests, this needs to be changed;

 Catering staff will no longer be required to work through the previously arranged lunch service now,
they will only be needed for 2 hours in the morning and 2 hours in the evening to set up, serve and pack
down;

 The AV (Audio Visual) rental supplier is having a special, rent any 3 items (AV hire, projector screen,
speakers) and get 50% off for this month only. This must be reflected in the budget.

 All other details not listed above will be charged at the budgeted amount, as there are no changes to
these totals.

Submit the completed Event budget.

Page 14 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 7 Cash Flow Budget

You are required to complete the Cash Flow budget by working out the values that are missing within the
document

 Access the excel Workbook Provided by Enhance College of Technology. The fourth tab on this
spreadsheet is labelled “Cash Flow” and shows the Cash Flow budget report being generated for the
organisation.

 Use information provided, follow the below instructions to calculate the data to fill in the highlighted
boxes of missing information within the spreadsheet:

Oct Oct Nov Nov Dec Dec

Inflow Cash (Operational)
Budget Actual Budget Actual Budget Actual
Net Income 730850 778400 1093111 1730200 786250 985700
Interest 195 183 285 300 185 152

Oct Oct Nov Nov Dec Dec

Outflow Cash (Operational)
Budget Actual Budget Actual Budget Actual
Labour/Wages 214500 198600 224500 210800 350800 645500
CoGs 65400 77900 76450 78790 79500 81200
Overheads 320500 365700 395400 385400 42030 41540
GST/PAYG 64400 75300 72400 71200 75300 73800

Monthly Values for the Quarter

1. Fill in the missing values using the tables above.
Inflow Cash
1. Calculate the YTD Budget value for interest.
Outflow Cash
1. Calculate the total Quarter Budget for labour/wages.
2. Calculate the YTD Budget for labour/wages.
3. Calculate the overall actual total of outflow cash for the quarter.
Operational Surplus/(Deficit)
1. Calculate the operational surplus/(deficit) total for the Quarter Budget, using your inflow and
outflow quarter totals.
Outflow Cash (Non-Operational)
1. Enter the total of kitchen Plant & Equipment outflow cash (non-operational) for the Quarter
Budget.
2. Enter the total Restaurant Equipment & Furniture outflow cash (non-operational) for the
Quarter Actual.

Submit the completed Cash Flow budget.

Page 15 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8
Enhance College of Technology
Enhance Professional Training Pty Ltd
ABN: 821 6587 1572 RTO: 41531 CRICOS: 03587K
2/35 Manilla Street, East Brisbane, Queensland 4169 Australia
Phone: 07 3895 8393 email: info@enhance.edu.au

Task 8 Purchasing/ Expenses Budget

You are required to complete the Purchasing budget report by working out the values that are missing within
the document

 Access the excel Workbook Provided by Enhance College of Technology. The fifth tab on this
spreadsheet is labelled “Purchasing” and shows the Cash Flow budget report being generated for the
organisation.

 Use information provided, follow the below instructions to calculate the data to fill in the highlighted
boxes of missing information within the spreadsheet:

Revenue
1. Calculate the total income generated for 2016, 2017 and 2018 Budget.
Expenses
1. Calculate the total required purchases made for 2016, 2017 and 2018 Budget.
Operational Surplus/(Deficit)
1. Enter the total revenue budgeted for 2018.
2. Enter the total costs (expenses) from 2016.
3. Calculate the % of forecasted project expenses in relation to the total revenue for 2018 Budget.

Submit the completed Purchasing/Expenses budget.

Page 16 of 16
Diploma of Hospitality Management
Unit: SITXFIN004 -Prepare and monitor budgets
Document Version: 5 Updated: 21Aug19 Source: S.L.S.8.8