MARKING GUIDE

BSBFIM601 Manage finances

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ASSESSMENT INFORMATION....................................................................................................................................................................... 4
DEFINITIONS.......................................................................................................................................................................................................... 6
ASSESSMENT TASK 1........................................................................................................................................................................................ 9
ASSESSMENT TASK 2: FINANCIAL ANALYSIS & BUDGETING................................................................................................... 16
PART A: ANALYSE FINANCES..................................................................................................................................................... 17
PART B: DEVELOP A BUDGET..................................................................................................................................................... 22
PART C: PREPARE TO IMPLEMENT THE BUDGET........................................................................................................... 26
PART D: BUDGET IMPLEMENTATION MEETING.............................................................................................................. 28
ASSESSMENT TASK 3: BUDGET MONITORING................................................................................................................................. 32
ASSESSMENT TASK 4: REVIEW PROJECT............................................................................................................................................ 37
 ASSESSMENT INFORMATION

About this marking guide

This document is to be used as a guide to marking the assessment tasks required for this unit.
This document outlines the instructions provided to the student for each task and accompanying sample/
benchmark answers and any relevant instructions for the assessor.

Assessment tasks
This unit is assessed in the following ways:

Assessment Task Overview

Assessment Task 1: Written questions Students must correctly answer all 15 questions to show that
you understand the knowledge required of this unit.

Assessment Task 2: Financial analysis This task includes four parts.

and Budgeting For Part A, students are required to complete a financial
analysis and then prepare a report for the Principal Consultant
of Grow Management Consultants.
In Part B, students must prepare a budget for the upcoming
financial year.
In Part C, students are required to prepare for implementing the
budget by reviewing financial policies, procedures and systems.
Part D is a role play, where students will deliver a presentation
to managers and supervisors from Grow Management
Consultants (their classmates and assessor) explaining the
budget they have prepared, the systems and procedures they
have set up and ensure managers know what is expected of
them.

Assessment Task 3: Budget monitoring This task requires the student to make adjustments to the
budget based on a number of changes that have occurred
within the business.

Assessment Task 4: Review project
This assessment task requires the student to review and
analyse the draft Profit and Loss Statement and associated
account ledgers for Grow Management Consultants for the
2018 – 2019 year, identify and fix any errors they find, keeping
an audit trail of their changes and then compare financial
results with the budgeted amounts. They must then prepare a
report to summarise their analysis and make recommendations
and comments on the effectiveness of financial management
systems.

Assessment plan
The Student Assessment Booklet includes an assessment plan that students are required to read and sign.
Get this signed plan before students begin the assessment tasks for this unit. Students can use this plan to
declare whether they need any support or adjustments.

Assessment documents
We have developed a range of comprehensive assessment documents for assessment of this unit.
Assessors will need the following documents:
 Assessment Record Tool – to be used by the assessor to record the decision-making process. Details
about workplace-based tasks are also included in this document.
  This Marking Guide, which includes:
– a guide to assessors on the process of assessment
– benchmark responses to assessment tasks
– mapping of assessment tasks to unit of competency requirements (see the end of this booklet).
Students will need to receive the Student Assessment Booklet for this unit/cluster
Assessors must provide students with the due date for each assessment task for this unit – students should be
instructed to write the dates in their Student Assessment Booklet.

Assessment attempts and resubmissions

Students have up to three attempts to complete assessment tasks satisfactorily. If after the third attempt, the
student has not completed the task satisfactorily, the assessor must make alternative arrangements for
assessment. Depending on the task, this may include:
 resubmitting incorrect answers to questions (such as short answer questions and case studies)
 resubmitting part or all of a project, depending on how the error impacts on the total outcome of the
task
 redoing a role play after being provided with appropriate feedback about their original performance
 being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily
completed the first time, after being provided with appropriate feedback.
Students should be provided with an appropriate time frame in which to resubmit their work, for example
students may:
 be given 30 days in which to resubmit incorrect responses to written tasks, projects and so on
 be provided with feedback on the day about their performance in a role play and then redo the task
during the next task
 need to redo work placement tasks during the same workplace visit or a follow-up observation may
be required – you should discuss arrangements with the student’s work placement supervisor to agree on
a suitable time and date for reassessment.
Assessors should refer to their RTO’s policy and procedures regarding training and assessment for further
information.

Assessment outcomes
Each assessment task will be given an outcome of either Satisfactory (S) or Not Satisfactory (NS). Students
must complete all tasks for a unit satisfactorily to achieve an overall outcome of Competent (C) for a unit. If
one or more of tasks are assessed as Not Satisfactory, students will be given an overall outcome for the unit
of Not Yet Competent (NYC).
Students can be given two further attempts to complete the task and achieve a Satisfactory outcome.
Students need to be given a timeframe for resubmission and advised what they must include in the
resubmission.
Assessors are required to use the Assessment Record Tool to record the assessment decision for each task.
The Record of Assessment Outcomes on the final page of the Assessment Record Tool should be completed
by the assessor.

Task Cover Sheet

Assessors must ensure that students have completed the Assessment Task Cover Sheet for each assessment
task.

Assessment appeals
All students have the right to appeal an assessment decision. To make an appeal about an assessment
decision, students must follow the process outlined in the Student Handbook.

Training and Assessment Strategies

Each RTO will have a Training and Assessment Strategy that outlines the assessment methods and tasks to
be used in the delivery of each course.
All assessors should be provided with a copy of the relevant Training and Assessment Strategy for the courses
they deliver.
Assessors must ensure they work within the parameters and guidelines of the strategy and communicate any
areas that may need improvement or updating as they are identified.

Plagiarism, cheating and collusion

Where a trainer/assessor believes there has been an incident of academic misconduct involving plagiarism,
cheating, and/or collusion, they should report this along with reasons for the allegation. Assessors should refer
to their RTO’s policy and procedures regarding training and assessment for further information.

Resources and equipment required for these assessments

You will need to ensure that the following items are available for students to complete their assessments:
 Access to textbooks and other learning materials
 Access to a computer and the Internet (if students prefer to type their responses)
 Printer
 Meeting space
 Reports and templates (provided by assessor as additional documents).

DEFINITIONS

Assessment
Assessment is ‘the process of collecting evidence and making judgements on whether competency has been
achieved, to confirm that an individual can perform to the standard required in the workplace, as specified in a
training package or VET accredited course.’1

Dimensions of competency
To be competent, a person must show their ability to perform effectively in a broad capacity. The dimensions
of competency ensure the person being assessed has the skills to perform competently in variety of different
circumstances. To be competent, a person must demonstrate the following:
 Task Skills: The skills needed to perform a task at an acceptable level. They include knowledge and
practical skills and these are usually described in the performance criteria.
 Task Management Skills: These are skills in organising and coordinating, which are needed to be able
to work competently while managing a number of tasks or activities within a job.
 Contingency Skills: The skills needed to respond and react appropriately to unexpected problems,
changes in routine and breakdowns while also performing competently.
 Job Role/Environment Skills: The skills needed to perform as expected in a particular job, position,
location and with others. These skills may be described in the range of variables and underpinning skills
and knowledge.
 Transfer Skills: The ability to transfer skills and knowledge to new situations and contexts.

Principles of assessment and rules of evidence

Assessment must be conducted in accordance with the rules of evidence and principles of assessment.

PRINCIPLES OF ASSESSMENT
 Validity:

1
From the Users’ Guide: Standards for Registered Training Organisations (RTOs) 2015
 Each task has been mapped to unit of competency requirements. Refer to the ‘Unit mapping’ section at the
end of this guide for more information.
Assessment tasks are varied and are required to be completed over a period of time and, where required,
on a number of occasions. Practical observations provide opportunities for students to demonstrate both
knowledge and skills.
 Reliability:
This marking guide provides benchmark answers for each assessment task to ensure accuracy and
consistency in the assessment decision-making process.
 Flexibility:
A range of assessment methods are provided that are relevant to the unit’s context.
 Fairness:
Students are required to sign an agreement in their Student Assessment Booklet and state if they have any
special needs or considerations that may affect their ability to complete the assessments. Any reasonable
adjustments that are required to be made to these assessments must be noted in the Assessment Record
Tool for this unit, in the checklist for the relevant task.
Students are provided with information about the appeals process in their Student Assessment Booklet
and in their Student Handbook.

RULES OF EVIDENCE
 Validity:
This Marking Guide provides a set of benchmark responses for each assessment task. Assessors are to
record assessment outcomes for each task in the accompanying Assessment Record Tool. Assessor
observations require the assessor to watch the student complete specific workplace activities in which
they can demonstrate the skills and knowledge required.
 Sufficiency:
The ‘Unit mapping’ section at the end of this guide demonstrates how assessment tasks align with unit of
competency requirements. Some units may require the student to demonstrate assessment over a period
of time and more than once. These requirements will be made clear in the relevant assessment task.
 Currency:
Evidence for each assessment task will be gathered over the duration of the course. Workplace-based
tasks will allow the student to draw from current workplace conditions and experiences, and students will
be able to use technology, tools and equipment specific to their workplace.
 Authenticity:
 Students are required to sign the Assessment Task Cover Sheet, indicating that the work they have
submitted for assessment is their own.
Practical classroom tasks and workplace observations by the assessor during placement visits ensure that
the assessor sees the student demonstrating the skills and knowledge required of this unit.
Third party reports require third party persons to sign that they have observed the student undertake the
tasks detailed in the checklist.

Reasonable adjustment
A legislative and regulatory framework underpins and supports the delivery of vocational education and
training across Australia. Under this framework, providers of vocational education and training must take
steps to ensure that learners with recognised disabilities can access and participate in education and training
on the same basis as learners without disabilities. Sometimes reasonable adjustments, are made to the
learning environment, training delivery, learning resources and/or assessment tasks to accommodate the
particular needs of a learner with a disability. An adjustment is reasonable if it can accommodate the learner’s
particular needs, while also taking into account factors such as: the views of the learner; the potential effect of
the adjustment on the learner and others; the costs and benefits of making the adjustment.
Adjustments must:
 be discussed and agreed to by the learner with a disability
  benefit the learner with a disability
 maintain the competency standards
 be reasonable to expect in a workplace.
Adjustments are not required if they could:
 cause the RTO unjustifiable hardship
 harm other learners.
Making reasonable adjustments requires the RTO to balance the need for change with the expense or effort
involved in making this change. If an adjustment requires a disproportionately high expenditure or disruption it
is not likely to be reasonable.2
Some examples of reasonable adjustments that could be made for the assessments in this booklet include:
 verbal responses to written activities (such as questions and answers tasks and case studies)
 conducting assessor workplace observations via Skype or other video format (for example, in cases of
students in remote areas)
 rescheduling assessor observations in the event that workplace conditions may not be suitable (for
example, safety concerns, required resources not being available, lack of appropriate clients on the day,
and so on)
 providing students with large-print copies of the Student Assessment Booklet.
Record any reasonable adjustments made in the space provided in the relevant task’s checklist in the
Assessment Record Tool.

ASSESSMENT TASK 1

TASK SUMMARY:
 This is an open book written assessment.
 Students must answer all 15 questions correctly.
 Students must answer the questions by writing in the space provided. If students
need more space, they can use extra paper. All additional sheets of paper must
include their name and the question number/s they are answering.
 Students may prefer to use their computer to type their answers. Advise students
if they can email their answers as a Word file, or if they must print and submit hard
copies.

WHAT DO STUDENTS NEED IN ORDER TO COMPLETE THIS ASSESSMENT?

 Access to textbooks and other learning materials.
 Access to a computer and the Internet.

WHEN AND WHERE DO STUDENTS NEED TO DO THIS?

 Students will do this task in the classroom or as homework – advise the students as to which is
required.
 Provide students with the due date for this assessment so they can write it in their Student
Assessment Booklet.

WHAT DO STUDENTS HAVE TO SUBMIT?

 Their answers to each question.

2
From https://www.ibsa.org.au/sites/default/files/media/BSBv1.1_Business_Services_Implementation_Guide.pdf
 INSTRUCTIONS TO THE ASSESSOR

Purpose of the task

Students are to demonstrate that they understand the knowledge required of this unit.

Reassessment arrangements
If students answer any questions in this task incorrectly, they will need to be given an appropriate time in
which to resubmit. Students should only redo questions that are incorrect; however they will need to
resubmit the entire assessment.
Students can be given the opportunity to answer questions verbally if appropriate.
Discuss timeframes for resubmission with the student when you tell them the outcome for this task.

Guidance to assessing this task

Benchmark responses are provided for each question.
Record the outcome of this assessment in the Assessment Record Tool.

Instructions to students:
You must answer each question that follows.
QUESTION 1
Briefly explain the five main taxation and superannuation obligations of an Australian company, including
taxes that are paid through the Australian Tax Office and those paid to the state or territory.
Student responses must include each of the four items listed below and key points in each of the
explanations provided.

1. Goods and Services Tax (GST)

a broad-based tax of 10% levied on most goods and services sold or consumed in or imported into
Australia.
Companies are required to collect GST from their consumers on GST-applicable items
Businesses are required to report on their GST collected and spent and report to the ATO

2. Pay as You Go (PAYG) withholding

System of withholding income tax from salary and wage payments to employees and remitting those
amounts to the ATO.

3. Fringe Benefits Tax (FBT)

Tax paid on certain benefits provided by employers to their employees or an employee’s associates in
place of part of their salary or wages.
This can include voluntary agreements between employers and employees known as salary sacrifice
agreements.
Additional tax is required to be paid on items that would not normally be seen as a reasonable
employer expense.

4. Superannuation Guarantee
A requirement for employers to pay a minimum amount for each of their employees for retirement on
top of the employee’s ordinary earnings.
If an employee earns more than $450 in any calendar month, the employer is required to pay 9.5% of
their ordinary time earnings to the employee’s nominated super fund.
5. Payroll tax
Payroll tax is a state and territory tax on the wages employers pay to their employees.
It's calculated on the amount of wages you pay each month and payable in the state or territory of
Australia where the services were performed.

QUESTION 2
Answer the following questions relating to GST in Australia:
a) When does a business/enterprise and non-profit organisations have to register for GST?
b) When do you need a tax invoice to claim a GST credit?
c) What eight details must be identifiable on a tax invoice for sales over $1,000?
d) What accounting method would a small business with an aggregated turnover of less than $2 million use
to account their GST?
Response must be:
a)
 your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more
 your non-profit organisation has a GST turnover of $150,000 per year or more
 you provide taxi or limousine travel for passengers in exchange for a fare as part of your business,
regardless of your GST turnover - this applies to both owner drivers and if you lease or rent a taxi
 you want to claim fuel tax credits for your business or enterprise.
b)
 Student must include the exact dollar amount: When you've spent more than $82.50 (including GST)
c)
Students response must include all eight items listed below.
 that the document is intended to be a tax invoice
  the seller's identity
 the seller's Australian business number (ABN)
 the date the invoice was issued
 a brief description of the items sold, including the quantity (if applicable) and the price
 the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-
eleventh of the total price, as a statement such as 'Total price includes GST'
 the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale
includes GST)    
 the buyer's identity or ABN
d)
Student responses must include the word “cash” as a minimum.

QUESTION 3
Not everyone is entitled to an ABN. Provide a list of the conditions that must be met to be entitled to an ABN.
Student’s response should include the following response which may be word-for-word or their own words.
You're entitled to an ABN if you're:
 carrying on  or  starting  an enterprise in Australia
 making supplies connected with Australia's  indirect tax zone
 a  Corporations Act company.

QUESTION 4
To work as a business and be entitled to an ABN, what activities should you be undertaking according to the
Australian Taxation Office?
Student’s response must include the following five dot points which may be word-for-word or their own
words.
 provide products and services directly to your customers, whether that's the public or other
businesses
 source your own customers, for example by advertising your products and services
 quote and invoice for work, including setting or negotiating prices
 have a separate business bank account and your own business insurance such as public liability and
WorkCover
 lodge and report all business income, even if the business earnings are below the tax-free threshold.

QUESTION 5
According to the ATO website, what obligations are you likely to have if you have an ABN?
Student’s response should include the following four dot points which may be word-for-word or their own
words.
 register for goods and services tax
 lodge activity statements to us
 register for PAYG withholding and meet your super obligations for eligible employees
 meet other federal, state and territory regulatory obligations such as payroll tax, worker’s
compensation, and operating licences.

QUESTION 6
Outline the key requirements around tax for companies in Australia including:
a) how annual tax is reported
b) the methods by which it can be paid
c) the name and value of the two tax rates for Australian companies and when each applies
d) The small business tax rates for FY (Financial Year) 2019, FY 2020, FY 2021 and FY 2022
Student’s response must include the following points which must be in the student’s own words.
a) Tax is reported through an annual company tax return
b) Tax is usually paid through the pay as you go tax instalment system but can also be paid XXXX \
c) There are two tax rates – the company tax rate of 30% and the small business company tax rate, currently
27.5%. The small business company tax rate applies for base rate entities, which are entities that have an
aggregated turnover less than $50million. The company tax rate applies to all other entities.
d) The tax rates are:
 2019 – 27.5%
 2020 – 27.5%
 2021 – 26%
 2022 – 25%

QUESTION 7
Answer the following questions relating to Pay-as-you-go (PAYG) tax in Australia:
a) Explain the difference between PAYG withholding and PAYG Income Tax Instalments.
b) If you make payments subject to withholding, what are the five things the Australian Tax Office requires a
business owner to do?

a) Student responses must cover the content of both dot points below:
 PAYG withholding is generally tax withheld from employees’ salaries or wages BUT it can also be
withheld from suppliers who have not provided their Australian Business Number (ABN) to you or
from contractors with whom you’ve entered into voluntary agreements to withhold amounts from
your payments to them.
 PAYG Income tax instalments are payments in advance for individual and/or company income
taxes and are paid by business owners, investors and sub-contractors who earn a certain amount
of income. Paying tax installments assists business owners to meet their income tax obligations by
allowing them to make payments in advance quarterly instead of having to make one lump sum
payment at the end of the year. When the income tax return is lodged, the difference between
income tax payable is reduced by the tax instalments paid.

b) Student responses must cover the following five points:

 register for PAYG withholding with the ATO as soon as you know you need to withhold
 withhold amounts from wages and other payments
 lodge activity statements and pay the withheld amounts to the ATO
 provide payment summaries to all employees and other payees by 14 July
 provide a PAYG withholding payment summary annual report to the ATO by 14 August.

QUESTION 8
Explain the principle of cash accounting. Include two advantages and two disadvantages of cash accounting
in your response.

Principle: Student responses must cover the following three concepts:

 Cash accounting tracks the actual money coming in and out of a business.
 In cash accounting, if you get an invoice for something, the cost is not recorded in the businesses
books until the invoice has been paid.
 Similarly, when an invoice is sent to a customer, the sale is not recorded until the money is
received.

Advantages: Students responses must list any two advantages from the list below:
 a simple system that keeps track of business cash flow
 generally suited to smaller businesses that mostly handle transactions in cash, for example a
hairdressing salon or a grocery store
 gives a picture of how much money there is in the till and in bank accounts.

Disadvantages: Student responses must include the two disadvantages below:

 It doesn't capture money that is owed or money owed to others.
 Does not allow for tracking of dates for sales and purchases or matching these transactions to
 specific items of inventory.

QUESTION 9
Explain the principle of accrual accounting. Include two advantages and two disadvantages of accrual
accounting in your response.

Principle: Student responses must cover the following concept:

Accrual accounting is when you record expenses and sales when they take place instead of when cash
changes hands.

Advantages: Students responses must list any two advantages from the list below:
 suited to businesses that don't get paid straight away
 a system that tracks true financial position as it captures money owed and money owed to others
 helpful if dealing with lots of contracts or large amounts of money.

Disadvantage: Student responses must include the two disadvantages below:

 more complicated than cash accounting
 requires transactions to be recorded at the time of their occurrence

QUESTION 10
Describe the following terms:
c) Financial accounting
d) Management accounting
e) Accounting standards
f) Financial accounting system
Student responses must cover each of the concepts listed below.

a) Financial accounting is mainly a method of reporting the results and financial position of a business. It is
not primarily concerned with providing information towards the more efficient running of the business.
Financial accounts principal function is to satisfy the information needs of persons not involved in running
the business. They provide historical information.

b) Management accounting - Managers have the responsibility of planning and controlling the resources of
the business and for making decisions about the direction of the business both in the longer-term and on a
day-to-day basis. Managers need much detailed information and they need to plan for the future e.g.
budgets, which predict future revenue and expenditure. Sometimes known as cost accounting, a
management information system analyses data to provide information as a basis for managerial action.
The concern of a management accountant is to present accounting information in the form most helpful to
management.

c) Accounting standards - Accounting standards are authoritative statements of how particular types of
transactions and other events should be reflected in the financial statements. Accounting standards form
part of the Generally Accepted Accounting Principles (GAAP) that sets out the accounting rules that
companies must abide by. They are structured to provide detailed guidance on accounting for a particular
item.

d) A financial accounting system, is the data, records and procedures that a business uses to prepare,
provide and report financial information to its stakeholders. In order to produce financial statements, a
business must keep a record of all the transactions that it makes, the assets it acquires and liabilities it
incurs. When the time comes to prepare the financial statements, the relevant information is taken from
those records.
QUESTION 11
Explain what is meant by audited financial statements?

Students response must cover the following concept.

Audited financial statements means that an accredited financial auditor has audited the financial statements
of the company and have verified that they are accurate and correct and are a true reflection of the
company’s financial position.

QUESTION 12
Explain what a financial audit is, the purpose of a financial audit and what the purpose of an auditor’s report is.
Student’s response must cover each of the following points:
 A financial audit is where an accredited financial auditor reviews all of the financial statements and
accounts of on organisation.
 An auditor’s report is a key tool when reporting financial information to users.
It is an independent opinion provided by an independent external auditor as a result of an audit,
review or agreed procedures conducted on an entity.
The auditor's report is intended to provide an opinion to report to users as to whether the applicable
financial reporting framework has been applied in the preparation of the report, whether they are free
from material misstatement and whether they show a true and fair view of the operating results,
financial position and cash flows of the entity.
The preparation and presentation of the financial reports, and the content of those reports, is
ultimately the responsibility of those charged with governance of the entity (for example, directors of a
company).

QUESTION 13
Explain the concept of financial probity. In your response, outline at least six principles that underpin ethics
and probity.
Concept of financial probity:
Student responses must cover the following concepts.
Probity is the evidence of ethical behaviour, and can be defined as complete and confirmed integrity,
uprightness and honesty in a particular process.
Principles that underpin ethics and probity: Student responses must include any six of the following items:
 Officials must act ethically
 Officials must not make improper use of their position. 
 Officials should avoid placing themselves in a position where there is the potential for claims of bias.
 Officials must not accept hospitality, gifts or benefits.
 Agencies must not seek to benefit from supplier practices that may be dishonest, unethical or unsafe.
 Conflicts of interest must be managed appropriately.
 Probity and conflict of interest requirements should be applied with appropriate and proportionate
measures informed by sound risk management principles.
 Confidential information must be treated appropriately.

QUESTION 14
Provide four examples of what would be considered fraudulent behaviour in regard to company finances.
Student responses must include any four of the examples listed below, in their own words:
 creating ‘ghost’ employees or not deleting ex-employee records and having the salary of these ‘ghost’
employees paid into the fraudster’s bank account
 creating bogus suppliers, with payment being made to the fraudster’s bank account
 creating bogus purchase orders of a bona fide supplier and substituting the supplier’s bank account
details with fraudster’s bank account details
 obtaining kickbacks or bribes from suppliers or contractors
  associates of the staff providing services to the business at inflated prices
 personal use of business resources
 inflated/bogus reimbursement claims
 manipulation of financial data to receive performance-based bonuses
 faking time sheets
 private purchases through business accounts/business credit cards
 providing discounted (or free) goods or services to friends and associates.

QUESTION 15
Discuss the difference between Generally Accepted Accounting Principles (GAAP) and the International
Accounting Standards and why there was a need for harmonisation.
Student responses must cover the following four concepts:
 Generally accepted accounting principles (GAAP) are a common set of accounting principles,
standards and procedures that companies must follow when they compile their financial statements.
GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted
ways of recording and reporting accounting information. GAAP improves the clarity of the
communication of financial information.
 GAAP can be based on legislation and accounting standards that are either prescriptive/rules-based
or principles-based. In general, international accounting standards (IFRS and IAS) are principles-
based. They do not specify all the details but seek to obtain adherence to the 'spirit' of the regulations.
 As business and commerce became more global in nature, many interested parties began to
understand the need for a common set of accounting standards. Until that point, many multinational
companies prepared financial statements under a variety of GAAPs, which was costly. This also had
an impact on the auditors of those financial statements and current and future investors. Companies
with stock exchange listings in more than one jurisdiction had to prepare different sets of financial
statements for each jurisdiction which was viewed as inefficient.
 IFRS became the global standards. There are several general benefits of harmonisation: Investors
and lenders, both individual and corporate, need to be able to compare the financial results of
different companies internationally as well as nationally in making investment decisions. Differences
in accounting practice and reporting can prove to be a barrier to such cross-border analysis. Users no
longer have to understand several different national GAAPs or to incur the costs of adjusting financial
statements in order to compare them with each other. Harmonisation benefits the global economy,
because it removes barriers to the flow of capital between countries. Robust international financial
reporting standards are also needed to protect investors and to restore public confidence in financial
reporting following the recent failure of several banks (notably Lehman Brothers) and the resulting
credit crunch and global financial crisis.
 ASSESSMENT TASK 2: FINANCIAL ANALYSIS & BUDGETING

TASK SUMMARY:
This assessment task is divided into four parts:
 For Part A, you are required to complete a financial analysis and then prepare a
report for the Principal Consultant of Grow Management Consultants.
 In Part B, you must prepare a budget for the upcoming financial year.
 In Part C, you are required to prepare for implementing the budget by reviewing
financial policies, procedures and systems.
 Part D is a role play, where you will deliver a presentation to managers and
supervisors from Grow Management Consultants (your classmates and your
assessor) explaining the budget you have prepared, the changes you have made to
the systems and processes to control the budget and ensure team members are
aware of their responsibilities.

RESOURCES AND EQUIPMENT TO BE PROVIDED BY THE STUDENT:

 Computer and Microsoft Office
 Access to the internet for research

RESOURCES AND EQUIPMENT TO BE PROVIDED BY THE RTO / ASSESSOR:

 Printer to print off meeting documents
 Meeting space
 Profit and Loss Statement FY 2018
 Statement of Cash Flows FY 2018
 Aged Debtor Summaries
 Financial Performance Report template
 Business Plan for Grow Management Consultants
 Financial Management Policy and Procedure
 Conference & E-book costs and income sheet
 At least three classmates and your assessor to participate in the role play
 Venue Summary Form
 Accounting System Comparison Template
 Ageing Debtor Summary

WHEN AND WHERE WILL I COMPLETE THIS TASK?

 Parts A, B and C of this task will be conducted in your own time as homework. You may be given some
time to complete this task in class, where applicable. Your assessor will advise.
 The meeting in Part D will be conducted in class at a time indicated by your assessor.

DECISION MAKING RULES

 Your assessor will use the Assessment Outcome Record included in this booklet to mark whether you
satisfactorily achieve each assessment criteria. You must meet each criterion to be marked Satisfactory
for this assessment task. The assessor will also refer to their Marking Guide to ensure level of performance
is satisfactory.
WHAT DO I NEED TO SUBMIT?
The items that you need to submit for each task are listed in each part below.

INSTRUCTIONS:
Complete each of the parts of this task below.

PART A: ANALYSE FINANCES

Grow Management Consultants is a consultancy business specialising in leadership consultancy and has
been operational for the last five years. The company offers a range of services to assist companies to
assess leadership behaviour of existing managers and performance metrics and to design and implement
customised leadership programs based on the assessment. Services are offered Australia-wide.
The company employs a General Manager (you), 2 Principal Consultants (who are also Directors), 1 Senior
Consultant, an Administration Officer and Receptionist.
Over the last two years, the company has diversified and offers regular professional development
workshops on all aspects of leading and managing staff. These workshops are conducted approximately
every 3 months in major cities including Sydney, Brisbane and Melbourne. In 2017 – 2018, the company ran
a total of 36 workshops. The company has also recently produced an E-book about leadership techniques.
The intention is to replace the workshops with the annual conference in the next financial year as the
workshops were not well attended and client feedback indicates a personalised, company focused
approach in the form of consulting services is the service of choice.
The E-book has had reasonable sales but there needs to be a wider selection of books, as well as more
marketing. The plan is to generate $10,000 worth of sales for the e-books during the next financial year and
increasing over time.
As the General Manager for the company and with responsibility for finances, you are currently completing
the financial planning for the year ahead. This involves a review of the company’s business plan, previous
year’s profit and loss statement, the current business plan and strategic directions and cash flow
statements. Based on the review, you will be establishing budgets and allocating funds. In developing the
budget, you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting
services and executive search.
As per the business plan, the company plans to run an annual conference starting in 2019. The costs for the
conference have been estimated by the Principal Consultant as set out in the Estimated Conference Costs
document. Conference attendance is aimed at 100 people paying $750 each. (You will be provided with a
copy of this document for the purpose of this assessment).
The Principal Consultant has also asked you to review the current accounting software used by the
business. The company is currently using MYOB but as it has grown, the Principal Consultant wishes to
review whether this is the best accounting software for the business. He has also requested that the
software have a cloud feature.

Complete the following activities:

1. Conduct research in preparation for your financial performance report. Review the provided business plan
and financial statements for Grow Management Consultants.
a) Review the scenario information above and the 2017 – 2018 Profit and Loss Statements and the 2017
-2018 Statement of Cash Flow which will be provided to you. Using this information, identify areas of
the business that have generated a profit and those that have generated a loss.
 b) Conduct research to establish why those areas have made a profit or loss. Your research should
include a review of the financial data provided to you, economic conditions and business trends
(which you can research on the internet) that may have resulted in the profit or loss. You will be
required to report on your findings in the financial performance report as outlined below.
c) Conduct research on accounting software systems as per the scenario information. Make notes for
use in your report.
2. In the business plan, you will note that one of the objectives in 2019 is to review the current accounting
software system and ensure it meets the business’ goals and needs. Your manager has asked you to
compare the current system used with at least two other accounting software systems and make a
recommendation about whether the current system still meets business needs, or whether there is a case
for change. The rationale for reviewing the system are outlined in the business plan. Conduct research
into the current accounting software system and at least two others that the business could consider,
identifying pros, cons and costs of each. Fill in the template called Accounting Software System
Comparison.
3. Prepare a Financial Performance Report for the Principal Consultants using the template provided by your
assessor that includes an:
a) Overview of the purpose of the report.
b) Analysis of the previous year’s (2017 – 2018) profit and loss statement for Grow Management
Consultants, including revenue generated, cost of sales, gross profit/loss margin and net profit/loss
margin and the areas of highest cost for the business.
c) Analysis of overall business performance including the performance of each of the income streams
for 2017 – 2018 as proportionate to others.
d) Outline of reasons for profit or loss based on your analysis of the data and research on economic
conditions and business trends.
e) Summary of the organisation’s goals and priorities for the upcoming financial year as documented in
the Strategic Business Plan and make some recommendations about the financial resources required
to achieve these goals, as well as key dates.
f) An analysis of cash flow trends as per the cash flow statement.
g) The outcomes of your research in relation to the accounting software system and making your
recommendation, providing a rationale for your recommendations.
h) A summary of statutory requirements for compliance and tax:
i. GST reporting requirements (the company is required to report quarterly)
ii. PAYG withholding obligations
iii. PAYG income tax instalment
iv. Payroll tax obligations (state government)
v. Superannuation entitlements and employer obligations regarding frequency of payment,
choice of fund and reporting to staff.
i) Summarise any current tax or super liabilities based on the financial statements (Statement of Cash
Flows and Profit and Loss Statement).
j) An outline of the due diligence checks you completed in preparing your analysis.
k) Analysis of the Ageing Debtor Summaries your Assessor will provide you with and any
recommendations for better managing ageing debtors on an ongoing basis.

Submission Items

Completed Financial Performance Report

Completed Accounting System Comparison Form

 INSTRUCTIONS TO THE ASSESSOR

Guidance to assessing this task

Please use the Outcome Record in the Assessment Record Tool to mark the task and refer to the sample
Assessors version of the Financial Performance Report.
Student responses do not have to be verbatim but must address each concept listed in the sample
Assessor version of the Financial Performance Report.
Students must have provided a thorough response to each section of the report template, in line with the
sample provided.

The student’ s Accounting Software Comparison report must be completed in the Accounting Software
Comparison Template and a list of pros and cons must be provided along with the cost for each system.
Note there are numerous accounting software systems, for example, Xero, Quickbooks, freshbooks, as well
as many others and the student may compare any of these with MYOB, the system the company currently
uses.

FINANCIAL PERFORMANCE REPORT SAMPLE

Purpose

Outline purpose of the report.

The purpose of this report is to outline Grow Management Consultant’s financial performance for the
proceeding financial year and to use this information to plan for the upcoming year.

2017-2018 Profit and Loss Analysis

Include:

 Revenue generated
 Cost of sales
 Net profit/loss margin
 Area of highest cost for the business.
Student’s response should address:

 Positive overall performance of the business as shown by gross and net profit for each financial year in
attached reports.
 The revenue generated, also the gross profit, was $1,335,600 (cell B9), the cost of sales was $34,000
(=B25+B26) and the net profit was $652,077 (B28).
 The gross profit margin is the ratio of (revenue less cost of sales) to revenue. In this case the relevant
revenue is $40,000 (=B5+B6) which is the sales revenue for which a cost was incurred. So the profit
margin is 0.17647 or 17.65% [(40,000-34,000)/34,000]
 The net profit margin is the ratio of net profits to revenues, so its value is 0.4882 or 48.22%
(=652,077/1,335,600)
 The overall business earned a net profit of $652,00 (B28). The workshops component of the business
earned a profit of $14,000 (=B5-B25) whereas the publications component incurred a loss of $8,000
(=B6-B26).
 The area of highest cost for the business was salaries/wages
Overall Business Performance

Including:
  Performance of each of the income steams for 2017-2018
Student’s responses should include:

 Consulting had a turnover of $1,175,600

 Workshops had a turn-over of $38,000
 Executive Search Service had a turnover of $120,000
 The e-book had a turnover of $2,000
Reasons

Including

 Reasons for profit or loss based on your analysis of the data

 Economic conditions and business trends
Student responses must include any five of the first six dot points below, as a minimum. Students may choose
to add that the difference was insignificant, but this is not mandatory. Students who correctly list any 5 of the
first 6 dot points must be marked correct irrespective of whether or not they mention the insignificance of the
difference.

 workshops not well attended

 clients prefer consulting services
 more e-books needed
 better marketing. T
 the costs for the workshops were high
 publication of the e-books were high – e-book was developed at a loss
 Insignificant difference between actual and budgeted costs.
Goals & Priorities for 2018-2019

Include:

 Recommendations about financial resources required to achieve these goals

 Key dates
Student to report on operational plans as outlined under strategic goals and financial resources and to outline
the resources required (financial and staff as per the estimated cost information provided), as well as dates.
This should include the dates of the conference and ebook as per the business plan.

It should also reflect the profit margin goal of 42%, and the goal of growing the business and staff base by 5%.

Cash flow trends analysis

Students must identify that the cash flow statements do not show any cash flow issues, as the income from the
consulting stream and executive search is strong.

Statutory requirements for compliance and tax

Include”

 GST reporting requirements (The company is required to report quarterly).

 PAYG withholding obligations
 PAYG income tax instalment
 Payroll tax instalment
 Superannuation entitlements and employer obligations regarding frequency of payment, choice of fund
and reporting to staff
Student’s responses must include the following points:
  GST reporting requires the organisation to report both GST collected, and GST spent and pay to the
ATO the difference?
 PAYG withholding requirements including that employers must hold mandatory tax withholding
amounts from their employees with each pay and then pay this to the ATO each month.
 instalments to the ATO each quarter which is an instalment on the organisation’s projected income tax
based on previous year’s performance and taxable income.
 Correctly explained payroll tax obligations that must be paid to each state’s payroll office based on the
employees employed in each state.
 If an employee is paid more than $450 in a month, an employer is entitled to pay the superannuation
guarantee which is 9.5% of ordinary time earnings – on top of their earnings.
 Superannuation must be paid 4 times per year by 28th January; 28th April; 28th July; 28th October,
 Superannuation must be paid by employers through SuperStream.
 Employees must be given a choice about which super fund they use and employers must pay to the
employee’s nominated fund.
Due Diligence Checks

What due diligence checks did you complete when preparing your analysis?

Students response should be similar to the following and cover below key concepts.
In order to ensure accurate statements, I ensured that the profit and loss statements were calculated correctly
and ensured the information I was provided in the business plan and scenario information were appropriately
reflected in the financials.

I also cross-referenced calculations between each other, including checking that super was equivalent to 9.5%
of the salaries and wages – this shows that the organisation has paid appropriate employer super guarantee
amounts.

Ageing Debtor Analysis

Include:

 Recommendations for better managing debtors on an ongoing basis

Students response should be similar to the following and following below key concepts. You must ensure they
have provided an analysis of the debts including ratios of how old the debt is in comparison to total amount
owing. The student does not need to make the same recommendations as below but should make reasonable
suggestions about managing aged debtors such as regular following up of outstanding amounts, statements,
phone calls and debt collection. A reference to the clients that have old debt and have then incurred new debt
should be made as well.

Example response:

A total of $19,198 is owing, of which, 15% is a current debt and not cause for concern.

One client’s bill has been owed to the organisation in excess of 120 days, however we have since serviced this
client, and raised a new invoice that is now more than 30 days past due. The organisation needs to consider
not servicing new clients if they have a debt more than 60 days past.

$5,718 is 30 days past due, but more concerningly $7,766 is 90 days past due, which makes up 40% of our
debtors.

The organisation must consider its debt collecting process which may include sending out statements more
regularly and also referring to a debt collection agency once a debt reaches 60 days or more.
 PART B: DEVELOP A BUDGET
Now that you have analysed the previous year’s financial performance, your manager has now asked you to
develop a month-month budget for the upcoming financial year.
The budget you develop must be comprehensive and reflect business needs and goals for the upcoming
year. Your budget must use informed estimates of new items that need to be included based on the business’
goals and your own research about how this will be achieved.
The Principal Consultant would like a new venue for the conference this year and would like you to research
local options for the new venue and find out prices of the venue, and then help prepare a bid for the new
venue. This must be allowed for you in your budget.
Your budget must be developed in accordance with the Financial Management Policy and Procedure
provided and developed in Excel. You must use the same income and expense accounts as per the existing
financial statements, unless the item is a new addition. Your budget must show all allocations for payroll tax,
income tax, and superannuation.
To prepare your budget, ensure you:
a) Use the information in the business plan to establish critical dates and new initiatives that the organisation
intends to implement in the upcoming year that will generate income. Ensure these are reflected
appropriately in your budget.
b) Ensure that your budget includes the estimated income and costs for the conference and e-book to be
implemented in 2019. This is provided to you as a separate document.
c) Consider any resources required to implement new initiatives and account for them in your budget.
d) Research new venues and find out the costs of the venues. You must provide options for two different
venues that can accommodate up to 120 people and can provide food and drinks and a place for
presenters to speak. Include an allowance in the budget for the venue hire. Fill in the Venue Summary
Form to show the outcomes of your research.
e) Ensure that the analysis of the previous year’s data and future plans as indicated in the business plan are
taken into account in determining projected income and expenditure.
f) Ensure your budget includes the revenue growth that the organisation intends to make and any cost
impacts this will have.
g) Include a list of assumptions you have used to develop your budget.
h) Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and
executive recruitment service. Input costs and income for the conference and e-book as per the data
provided in the conference document.

Submission Items

Completed Budget for 2018 – 2019

Completed Venue Summary Form

INSTRUCTIONS TO THE ASSESSOR

Guidance to assessing this task

The budget developed by the student must be comprehensive and reflect business needs and goals for the
upcoming year. The budget must use informed estimates of new items that need to be included based on
the business’ goals – namely the conference and the e-book.

The income must have been increased by 10% in all categories, allow for rounding up or down.

The costs for each line item must have been increased by approximately 5% (allow for rounding up/ down).

Assumptions need to be listed which explain the rationale behind decisions made in the budget. For
example, some assumptions may be:
INSTRUCTIONS TO THE ASSESSOR

 Utility bills are paid quarterly.

 Repairs are made twice a year on vehicles in October and April.
 Accounting fees are paid once per year in September and increase by 5% from the previous year.
 $5,000 will be spent on the venue as per recommended option. (This may change based on the
student’s research)
 Estimated revenue for executive search is $11,000 per month.
 A monthly amount has been allocated to costs broken up over the year for various costs.

When assessing the budget, ensure that any assumptions match what has been shown in the budget.

If there are any figures shown in the budget that you are not sure how the student arrived at, and no
explanation in the assumptions, then the student should be marked unsatisfactory and asked to ensure
they provide assumptions for any ‘decisions’ they needed to make in the budget.

If a student has decided to allocate a yearly cost to a certain month, rather than break it up over the year,
this should be an assumption in the budget.

Ensure that the basic calculations in the budget are accurately calculated.

Students should use excel with automatic calculations in it as this is the standard expected professionally.

A sample budget is provided over page.

The Venue Summary Form must be filled in with the details of two suitable venues. The student must have
found two venues that take 120 people and provided the costs. They must have filled in the venue form
ticking each feature as to whether or not its available at the venue. They must have included the cost, and
the cost of their recommended venue should be reflected in their budget.
Grow Management Consultants Pty Ltd - Budget
July 18 to June 19
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
INCOME (includes calculated 10% increase)
Consulting fees 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000   1,320,000
Conference     52,500                   $52,500
E-book     10,000                   $10,000
Executive search 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000   132,000
NET INCOME 121,000 121,000 183,500 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000   $1,514,500

EXPENSES (includes calculated 5% increase)

Salaries/wages 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 44,100 529,200
Superannuation 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 5,250 63,000
Cleaning 840 840 840 840 840 840 840 840 840 840 840 840 10,080
Accounting fees 0 0 7,164 0 0 0 0 0 0 0 0 0 7,164
Advertising and marketing 440 440 440 440 440 440 440 440 440 440 440 440 5,280
Contract writer (e-book) 10,500 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 51,849
Computer software 800 800 800 800 800 800 800 800 800 800 800 800 9,600
Motor vehicle expenses 454 454 454 454 454 454 454 454 454 454 454 454 5,448
Utilities 1,032     1,032     1,032     1,032     4,128
Insurance 353 353 353 353 353 353 353 353 353 353 353 353 4,236
Office supplies 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Lease/loan payments 132 132 132 132 132 132 132 132 132 132 132 132 1,584
Rent 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 45,108
Sundries 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Travel and Accommodation 472 472 472 472 472 472 472 472 472 472 472 472 5,664
Repairs & maintenance       630           630     1,260
Telephone 298 298 298 298 298 298 298 298 298 298 298 298 3,576
Conference venue and
catering     3,000                   $3,000
Speaker fees and travel     10,000                   $10,000
Marketing (conference only) 2500 2,500                     $5,000
Conference bags 1,000                     $1,000

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Conference casual project
officer 5,000 5,000 5,000 5,000 5,000 5,000             $30,000
E-book writer 830 830 830 830 830 830 830 830 830 830 830 830 $9,960
Desktop publishing 3000                       $3,000
Marketing (e-book) 1200                       $1,200

TOTAL EXPENSES 83,460 70,487 88,151 69,649 67,987 67,987 64,019 62,987 62,987 64,649 62,987 62,987   $828,337
SURPLUS/ DEFICIT 37,540 50,513 95,349 51,351 53,013 53,013 56,981 58,013 58,013 56,351 58,013 58,013   $686,163

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 PART C: PREPARE TO IMPLEMENT THE BUDGET

The Principal Consultant has approved the budget for the upcoming financial year of 2019-2020.
You are now required to ensure the budget will be implemented correctly by:
 Ensuring managers and supervisors are clear about the budget, reporting requirements and their
responsibilities in relation to adhering to the budget
 Setting up systems to record financial transactions and ensure they are only approved if in accordance
with the budget
 Set up key reporting dates at which the budget will be monitored and reported on
 Set up a system for dealing with aged debtors and debt recovery

1. You must now prepare to implement the budget by developing any required systems and templates to
effectively implement and monitor the budget and ensure all team members are clear about their
responsibilities.
2. Make updates to the Financial Management Policies and Procedures to ensure:
a) Risks for misappropriation of funds are managed
b) Procedures around the management and monitoring of the budget, including responsibilities, are
included.
c) Expenses are monitored in order to approve expenses and purchase orders so that budgets are not
exceeded
d) Financial transactions are tracked against consistent income and expense accounts in line with the
budget.
e) They include a policy and procedure for dealing with aged debtors and debt recovery.
3. Develop a proforma template that can be used for expenses and purchase orders to be approved,
showing that the approver has checked the budget before approving.
4. Develop a proforma template that can be used by anyone submitting an expense claim or invoice for the
conference or e-book where a staff member can select the relevant income or expense account.

Submission Items

Updated Financial Management Policies and Procedures

The proformas you have created to implement the new procedures and systems

INSTRUCTIONS TO THE ASSESSOR

Guidance to assessing this task

Assessors, please use the Outcome Record included in the Assessment Record Tool to ensure students
meet all requirements of the task. Use the guidance provided below to assess the task, along with the
checklist items in the Assessment Record Tool.

Students must update the Financial Management Policies and Procedures to ensure:

a) Risks for misappropriation of funds are managed – This may include having multiple people
involved in approvals, and a sign off on the assigning of expenses to certain expense accounts.
Student should make adjustments to the Finance Authority Policy & Procedure to describe their
proposed changes.
b) Procedures around the management and monitoring of the budget, including responsibilities, are

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INSTRUCTIONS TO THE ASSESSOR

included – Students may choose to create a budget policy and procedure in the Financial
Management Policy and Procedure Manual to address this point. Alternatively, students may make
amendments to existing policies and procedures to address this point. Students should describe
who is responsible for developing the budget, how often the budget will be updated, who will be
advised of the budget and who is responsible for adhering to the budget. For instance, the General
Manager is responsible for developing a month to month budget based on analysis of previous
financial data, strategic objectives and general trends. All Staff will be advised of the budget and
each manager is responsible to keep to the assigned budget.
c) Expenses are monitored in order to approve expenses and purchase orders so that budgets are
not exceeded – Students should describe within the policies and procedures who is responsible for
monitoring the budget, how the budget will be monitored and what happens if the budget is
exceeded. For example, but not limited to: “Each manager is required to keep to the budget
assigned. Monitoring is to be completed through analysis of monthly data from the accounting
software system. Where the budget has been significantly exceeded, this will be reported to the
General Manager and relevant actions agreed upon (e.g. additional funds approved or reduction of
expenses).”
d) Financial Transactions are tracked against consistent income and expense accounts in line with
the budget - Students should outline where relevant the income and expense accounts used by
Grow Management Consultants. For example “to ensure consistent and accurate tracking of
income and expenses the following income accounts will be used in the financial management
software (student to list income accounts as per the Profit and Loss Statement) and the following
expense accounts will be used in the financial management software (Student to list expense
accounts as per the profit and loss statement). This will ensure accurate tracking of expenses
against different projects and allow budgets to be monitored accurately”
e) Include a policy and procedure for dealing with ages debtors and debt recovery – This policy and
procedure should include the purpose of the policy and procedures. For example but not limited to
the purpose may be ‘provides guidelines for managing ages debtors and debt recovery. This policy
and procedure is to be followed by all staff’. The procedure should include when invoices are sent,
what templates are used for invoices, what happens when the invoice is overdue at different points
in time. E.g. 7, 14 and 21 days. At what point the account is referred to the company’s solicitors or
debt collection agency.
Students must develop a proforma template that can be used for expenses and purchase orders to be
approved, showing that the approver has checked the budget before approving.
Students must also develop a proforma template that can be used by anyone submitting an expense claim
or invoice for the conference or e-book where a staff member can select the relevant income or expense
account.
Their proformas may be in a template of their choice and must allow the templates to be used for the
required purpose. They must be submitted in the timelines advised by you.

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 PART D: BUDGET IMPLEMENTATION MEETING
In this part of the task, you will participate in a role play with your assessor and at least three other students
from your class. Your assessor and the other students will play the roles of the other supervisors and
managers from Grow Management Consultants.

You are now required to meet with the managers and supervisors to communicate the budgets you have
developed and the updates to the policies, procedures and systems you have made to assist in
implementing the budget. You are also required to explain reporting requirements and financial
delegations as outlined in the company’s financial policy and procedures, as well as explain the company’s
compliance requirements and tax liabilities.
1. Prepare for your budget implementation meeting. Prepare a PowerPoint presentation that you can deliver
at the meeting. Your presentation should include:
a) A high-level overview of the budget you have prepared including:
i. Key assumptions
ii. Projected income for each revenue stream
iii. Budgeted amounts for key expense items
iv. Overall outcome of the budget
b) Key responsibilities to ensure budget is adhered to.
c) Discuss the amounts allocated to each activity, including the conference and the e-book.
d) Explain any allowances you have made for contingencies.
e) A summary of the changes you have made to the financial policies and procedures and systems in
place to ensure budget control
f) A discussion of any significant issues that the managers should be aware of in relation to previous
financial reports and to help them adhere to the budget.
g) An explanation of the templates and systems you have developed to help manage the budget and the
reason for setting them up in the way you have
h) Provide an outline of the financial policy and procedure so as to ensure that roles and responsibilities
are understood and risks of misappropriation of funds/incorrect recording of financial transactions is
minimised.
i) How risks have been managed to ensure there are no opportunities for misappropriation of funds.
j) A summary of the venues that you found including the price and features of each, and how the
organisation can put forward a proposal to the venue operator to use their facility.
k) Explain the due diligence measures that you have taken in preparing the budget.
2. Ensure your presentation is clear, presented professionally, and free from spelling and grammatical errors.
3. Participate in the budget meeting at a time negotiated with your assessor. Note the other three students
will need to be available to participate in the meeting. Your assessor and the other students may ask you
questions during the meeting which you will need to respond to. During the meeting:
a) Present your slides, explaining each of the points outlined in Point 1 above.
b) Circulate copies of your budget and a copy of your slides (other students must return these to you at
the end of your presentation).
c) Circulate the changes you made to the financial management policies and procedures (other
students must return these to you at the end of your presentation)
d) Circulate and explain the systems and proformas you have set up (other students must return these to
you at the end of your presentation).
4. At the meeting ensure demonstrate effective communication skills and ensure the supervisors and
managers know what is expected of them by:
 Speaking clearly
 Providing concise information in a language that is appropriate for the audience
 Ask questions to check that managers and supervisors are clear about the budget.

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  Using active listening techniques to confirm or clarify information
 Ensure that the participants of the meeting agree that they have understood what’s required of them
or clarify any points if needed.

Submission Items

The PowerPoint presentation you prepared for the meeting

INSTRUCTIONS TO THE ASSESSOR

Purpose of the task

The purpose of this task is to communicate the budgets and updates to the policies, procedures and
systems to assist in implementing the budget, as well as to explain reporting requirements and financial
delegations as outlined in the company’s financial policy and procedures and the company’s compliance
requirements and tax liabilities.
You will need to organise three other students to participate in this task. The activity should be completed in
a quiet area away from other students. The three role playing students should immediately complete their
presentation following the first student to reduce any unfair advantage. Prior to the presentation, brief the
students to asks questions, for example, about anything that is unclear, or they wish to be confirmed.

Guidance to assessing this task

Assessors, please use the Outcome Record in the Assessment Record Tool to ensure students meet all
requirements of the task. Use the guidance provided below to assess the task, along with the checklist
items in the Assessment Record Tool. Students do not need to cover the points below verbatim, but need
to cover the key concepts below.
The PowerPoint must include as a minimum:
 Key assumptions made in the budget, as per assumptions at Task 2, Part B.
 Accurate projected income for each revenue stream, including Consulting Income, Executive
Search, Publications and Conference.
 Amounts allocated to each activity/ line item on the profit and loss
 Approach to dealing with contingencies, which should be not over-estimating income, planning for
the worst-case scenario and allowing some leeway in costs so that small additional costs here and
there wont ‘break-the-budget’.
 Key responsibilities within the business in relation to maintaining and monitoring the budget –
including managers giving approval, bookkeeper assigning items correctly in the system, staff
assigning expenses to correct income/ expense accounts
 The amounts allocated to the conference and the e-book which is $45,000 income for the
conference and $15,000 income for the revenue, $10,000 in expenses for the ebook and $10,000 for
expenses for the conference and venue.
 A summary of the changes they have made to the financial policies and procedures and systems in
place to ensure budget control. This might include making reference to the budget being checked
before expenses are approved, proformas to ensure expenditure and income are expended
correctly, and other budget control measures. Refer to the Assessor Copy of the Financial
Management Policies and Procedures for examples, which do not need to be verbatim.
 A discussion of significant issues – which includes that previously items have been reported to the
wrong expense accounts in the system and therefore the new procedure has been set up to
ensure expenses are tracked accordingly. Staff need to ensure they follow this. Previously the
number of attendees expected at the conference was forecast to be 100, and a much lower
number than this attended. Therefore, budget forecast has been more conservative for the next
year.
 Explanation of templates and systems they have developed to help manage the budget and the
reason for setting them – refer to sample proformas provided. Student must provide a suitable

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INSTRUCTIONS TO THE ASSESSOR
rationale as to why they have developed the systems that they have. Refer to sample proformas.
 Overview of financial policy and procedures. This should include what the financial policies and
procedures are and key points of the policy, plus key responsibilities. Must explain how
misappropriation of funds is minimised by having multiple people involved in approvals, and a sign
off on the assigning of expenses to certain expense accounts.
 How risks have been managed to ensure there are no opportunities for misappropriation of funds -
having multiple people involved in approvals, and a sign off on the assigning of expenses to certain
expense accounts.
 A summary of the venues that they found including the price and features of each, and how the
organisation can put forward a proposal to the venue operator to use their facility. The student
should provide the key features as per the template in their presentation. The student must also
explain to the group how they can ‘bid’ for use of this venue by liaising with the venue operator. This
should be through making them a lower offer than quoted price and filling in appropriate sign up
forms.
 Explain the due diligence measures that they have taken in preparing the budget. – this includes
ensuring that the budget adds up correctly, appropriate allowances have been made for
superannuation and employee taxes including PAYG and payroll tax.
Running the role play
The role play is the meeting that the student will conduct with yourself and three other students. You will all
play the roles of supervisors and managers from Grow Management Consultants.
To each person, assign a role from the Company Structure provided in the business plan. The students can
then participate in the meeting from that point of view. Ask each of the ‘managers and supervisors’ to ask
the student at least one question during the meeting where the student presenting needs to clarify
something they have explained in their presentation. The questions could be any from the below, or others
as deemed suitable based on the information presented by the student:
‘How are we making sure we don’t exceed budgeted amounts’
Student should explain the procedures and process they have developed to ensure budget it
monitored and tracked before expenses are approved.
‘How do I fill in this template?’
Student must explain to the managers how to use the template if required., including what goes
into each field in the proforma.
‘Why have you arrived at ($) amount in the budget?’
Student must provide a suitable rationale for why they have included that amount in the budget. It
may be based on previous year’s financials, previous performance of the business or the
information provided in the business plan or scenario information.
It may also be related to revenue in which case the student should explain how the revenue
amount was arrived at.
‘What have you allocated ($) amount to this cost in the budget?’
Student must provide a suitable rationale for why they have included that amount in the budget. It
may be based on previous year’s financials, previous performance of the business or the
information provided in the business plan or scenario information.
‘I’m not sure what I need to do in relation to approving expenses. Can you please clarify?’
Student must explain the procedure / system they have developed to approve expenses and
ensure what they explain aligns with the updated policies and procedures.
‘Why is there an allocation for conference costs in the upcoming budget’
Student should explain that the management’s strategic priorities are to run a conference in the
upcoming year, so costs related to running the conference have been included in the budget.

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‘Why have you recommended (?) venue?’
The student must provide an appropriate rationale for recommending the venue which should
consider costs and
Ask the students participating in the role play to ensure they participate in the meeting as if they were
members of Grow Management Consultants. If they do not understand a topic that the student presented,
they should ask for clarification.

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 ASSESSMENT TASK 3: BUDGET MONITORING

TASK SUMMARY:
This task requires you to make adjustments to the budget based on a number of changes that have occurred
within the business.

RESOURCES AND EQUIPMENT TO BE PROVIDED BY THE STUDENT:

 Computer and Microsoft Office
 Access to the internet for research
 Your Budget from Assessment Task 2

WHEN AND WHERE WILL I COMPLETE THIS TASK?

This task will be completed in your own time as homework or you may be given time to do this task in
class – your assessor will advise.

WHAT DO I NEED TO SUBMIT?

 Revised Budget
 Email (word document) to team members explaining the changes to the budget and how this
impacts them

WHAT HAPPENS IF I GET SOMETHING WRONG?

If your assessor sees that you have not completed all parts of this task satisfactorily, the details of
resubmission will be discussed with you. You will only need to redo the parts of the task that are not
satisfactory, however you will need to resubmit the entire assessment. Your assessor will advise of the due
date for the resubmission.

INSTRUCTIONS:

Its five months into the year that you budgeted for and the conference has now been held.
The conference went really well, and the organisation had great feedback, however the return on the
conference wasn’t as strong as it was forecast for as a number of unexpected things happened.
Firstly, the conference organiser mis-communicated the number of attendees to the conference meaning
that catering was provided for too many people and food went to waste but still had to pay for. The venue
was told there were 99 attendees to be catered for.
There were however more sales of conference tickets than anticipated of 89 attendees.
There was an additional charge by the venue for late bump-out which had not been accounted for of
$3,658.
In other areas of the business, the organisation has seen a significant increase in staff turnover for reasons
out of its control. This means that more time has been spent on training new staff members, there were
additional costs for recruiting new staff that hadn’t been accounted for of $3,500 in advertising costs. There
was an additional cost of $6,850 to cover temporary staff while the organisation was searching for new staff
members and to meet team demands.
Consulting revenue has fluctuated from month to month bringing in:
Month 1 - $130,000
Month 2 - $70,000

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 Month 3 - $83.000
Month 4 - $110,000
Month 5 - $150,000
1. Based on the information provided in the above additional information, make changes to the budget you
submitted in Task 2.
2. Highlight changes you have made based on the above information by making the cells changed yellow.
3. Based on this information, there may be other adjustments you need to make to the budget so the
business can still meet its financial goals. Make any changes to the budget in other areas by highlighting
those cells in blue.
4. Prepare an email (in a word document) that you could send out to affected team members (managers
and supervisors) explaining the changes you have made to the budget and how this impacts them.

Submission Items

Revised budget with cells appropriately highlighted

Email (word document) to team members explaining the changes to the budget and how this impacts
them

INSTRUCTIONS TO THE ASSESSOR

Guidance to assessing this task

Students must use their budget from Assessment Task 2 and make updates based on the information
provided in the scenario.
The below changes should be marked in yellow:
To be successful for this task, you must ensure that the student has:
Updated the cells for consulting income as:
 July - $130.,000
 August - $70,000
 September - $83,000
 October - $110,000
 November - $150,000
The student should have updated income for the upcoming months to reflect the fluctuations in income. It
should be $108,600 per month, which is an average of the first five months, however if the student has put
in different figures and provided a reasonable assumption, this is deemed satisfactory.
The budget should also show the student has:
 Added an additional expense for the conference of $3,658 for the additional bump-out cost. This can be
reflected in any month but is most logical to be shown in either the month of the conference or the one
after.
 Added $6,850 to staff wages expenses – the student may have either divided this up amongst wages
and salaries and super or they may have added on super of 9.5% in the super expense line. Either is
fine, as long as this is listed in their assumptions.
 Added $3,500 in advertising expenses – which may be spread over a few months, or allocated to one
month.
 Updated conference income to reflect 89 attendees, which should show income for the conference as
$66,750.

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INSTRUCTIONS TO THE ASSESSOR
Added expenses for additional charges of catering, which must be an additional $4,950, either in the month
of, the month prior or the month after the conference.
Conference income and costs can be assigned to any month between July – November, since this hasn’t
been specified in the information provided.
The student must have made all of the changes above to their budget and correctly added up revenue and
expenses accordingly.
The above changes to the budget results in a number of changes to expense line items to be made so that
the business can maintain its healthy profit margin of 41%.
In order to still maintain a healthy profit, some changes in the budget will be needed.
The student must then prepare an email that they can share with their team to update them about the
budget changes. In their email, the student must clearly explain that some unexpected costs and
fluctuations in revenue has resulted in a budget adjustment. Any adjustments that the student has made
and highlighted in blue in the budget should be explained in the email (excluding totals of revenue and
expenses).
Students responses will vary as the changes they make to the budget to ensure healthy profit will vary.
Whatever changes to expense items that are made, the student must include them in the email.
A sample email is provided below. The student does not need to include the email below verbatim, it must
cover the following key points:
 Explain there have been changes based on unexpected costs and fluctuating income
 Explain changes have had to be made to the budget to account for these costs and income
 Explain expense items that have been changed – the new budgeted amounts.
Example:
Dear all,
I’m writing to let you know that I’ve needed to make some changes to this year’s budget. Changes have
been made to account for some unexpected expenses due to staff turnover and some additional costs in
relation to the conference.
I’ve needed to re-budget some expenses. The following budgeted expenses have been adjusted.
Advertising and marketing costs needs to be reduced to $200 per month til the end of the year
Computer software costs are reduced to $200 per month.
Office supplies – $120 per month
Travel and accommodation to $250 per month.
This is based on an average income in consulting of $108,600 per month which reflects the average of the
last five months in this year.
Please ensure you stick to these monthly budgets for the above expenses, going forwards. Please let me
know if you have any questions.
Kind Regards
Student.

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 Grow Management Consultants Pty Ltd - Budget Revisions
1 July 2019 - 30 June 2020
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
INCOME
108,60 108,60 108,60
Consulting fees 130,000 70,000 83,000 110,000 150,000 108,600 108,600 108,600 0 0 0 108,600   1,303,200
Conference     66,750                     $66,750
E-book     10,000                     $10,000
Executive search 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000   132,000
119,60 119,60 119,60
NET INCOME 141,000 81,000 170,750 121,000 161,000 119,600 119,600 119,600 0 0 0 119,600   $1,511,950

EXPENSES
Salaries/wages 45,351 45,351 45,351 45,351 45,351 44,100 44,100 44,100 44,100 44,100 44,100 44,100 535,456
Superannuation 5,448 5,448 5,448 5,448 5,448 5,250 5,250 5,250 5,250 5,250 5,250 5,250 63,990
Cleaning 840 840 840 840 840 840 840 840 840 840 840 840 10,080
Accounting fees 0 0 7,164 0 0 0 0 0 0 0 0 0 7,164
Advertising and marketing 8,500 5,000 5,000 5,000 5,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 34,440
Contract writer (e-book) 10,500 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 51,849
Computer software 1,200 1,200 1,200 1,200 1,200 500 500 500 500 500 500 500 9,500
Motor vehicle expenses 454 454 454 454 454 454 454 454 454 454 454 454 5,448
Utilities 1,032     1,032     1,032     1,032     4,128
Insurance 353 353 353 353 353 353 353 353 353 353 353 353 4,236
Office supplies 1,500 1,500 1,500 1,500 1,500 550 550 550 550 550 550 550 11,350
Lease/loan payments 132 132 132 132 132 132 132 132 132 132 132 132 1,584
Rent 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 3,759 45,108
Sundries 1,000 1,000 1,000 1,000 1,000 150 150 150 150 150 150 150 6,050
Travel and Accommodation 1,200 1,200 1,200 1,200 1,200 500 500 500 500 500 500 500 9,500
Repairs & maintenance       630           630     1,260
Telephone 298 298 298 298 298 298 298 298 298 298 298 298 3,576
Conference venue and catering     3,000 8,608                 $11,608
Speaker fees and travel     10,000                   $10,000
Marketing (conference only) 2500 2,500                     $5,000
Conference bags 1,000                     $1,000

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 Conference casual project officer 5,000 5,000 5,000 5,000 5,000 5,000             $30,000
E-book writer 830 830 830 830 830 830 830 830 830 830 830 830 $9,960
Desktop publishing 3000                       $3,000
Marketing (e-book) 1200                       $1,200

TOTAL EXPENSES 95,097 78,624 96,288 86,394 76,124 67,975 64,007 62,975 62,975 64,637 62,975 62,975   $881,047
119,60 119,60 119,60
TOTAL INCOME 141,000 81,000 170,750 121,000 161,000 119,600 119,600 119,600 0 0 0 119,600   $1,511,950
SURPLUS/ DEFICIT 45,903 2,376 74,462 34,606 84,876 51,625 55,593 56,625 56,625 54,963 56,625 56,625   $630,903

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 ASSESSMENT TASK 4: REVIEW PROJECT

TASK SUMMARY:

This assessment task requires you to review and analyse the draft Profit and Loss
Statement and associated account ledgers for Grow Management Consultants for the
2019 financial year, identify and fix any errors you find, keeping an audit trail of your
changes and then compare financial results with the budgeted amounts. You must then
prepare a report to summarise your analysis and make recommendations on the
effectiveness of financial management systems.

RESOURCES AND EQUIPMENT TO BE PROVIDED BY THE STUDENT:

 Computer and Microsoft Office
 Access to the internet for research
 Your Budget from Assessment Task 2

RESOURCES AND EQUIPMENT TO BE PROVIDED BY THE RTO / ASSESSOR:

 Financial Review Report Template
 Profit and Loss Statement FY 2019
 Statement of Cash Flows FY 2019
 Budget versus Actuals FY 2019

WHEN AND WHERE DO I COMPLETE THIS TASK?

This task will be completed in your own time as homework or you may be given time to do this task in
class – your assessor will advise.

WHAT DO I NEED TO SUBMIT?

 Revised Profit and Loss Statement and associated ledger accounts with your changes and audit trail
marked
 Completed Financial Review Report

WHAT HAPPENS IF I GET SOMETHING WRONG?

If your assessor sees that you have not completed all parts of this task satisfactorily, the details of
resubmission will be discussed with you. You will only need to redo the parts of the task that are not
satisfactory, however you will need to resubmit the entire assessment. Your assessor will advise of the due
date for the resubmission.

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STUDENT INSTRUCTIONS:

It is now one year later, and you are required to review the draft profit and loss statements for 2018 – 2019
to identify and amend any errors in the financial reports and then analyse the information to make your
recommendations.
You then need to analyse the data and make recommendations to the Principal Consultant about the
conference for the next year. The Principal Consultant has asked you to focus on this because while there
was very positive feedback from the conference and the company wishes to run it next year, there needs
to be revisions to the budget and a potential price increase for the conference fee to make the conference
profitable.
The Principal Consultant would like you to report on a proposed conference fee given a 10% increase in
all the recorded costs for the conference as shown in the profit and loss statement (and that match the
conference costs for the document you reviewed in Assessment Task 2) and assuming 70 people will
attend the 2020 conference. The Principal Consultant would also like to make a minimum of 12% return
on the investment in running the conference, allowing for all contingencies.
Complete the following activities:
1. Review the draft profit and loss statement. You must ensure that the draft Profit and Loss Statement is
accurate, based on the account ledgers provided. To do this:
a) Review each entry on the Profit and Loss Statement, comparing them with any provided account
ledgers in the other excel sheets.
b) Ensure any entries into the ledgers are relevant to the account it has been put into.
c) Where any mistakes are identified, update the ledger page and the corresponding entry on the
profit and loss statement (where applicable) and highlight your changes in red text.
d) Keep an audit trail of your changes, by writing in the changes you make at the bottom of each
page in the space provided.
e) Ensure the profit and loss statement is accurate and shows correct figures.
2. Now that you have fixed the errors in the Profit and Loss Statement, analyse the information and compare
it with projected results from the budget you prepared in Assessment Task 2. Write a report, using the
Financial Review Report template provided, that you can provide to the Principal Consultant, covering the
following items:
a) Overall performance of the year.
b) Calculation of variation in actual versus budgeted amounts for each income source.
c) Calculation of variation in actual versus budgeted costs, focusing particularly on conference
costs. Include in your report any information or reasoning about why there are variances.
d) A summary of the recommended revisions to the budget in 2020 to ensure financial viability of the
organisation.
e) An outline of significant issues in the financial statements, comparing these financial statements
to the year prior.
f) Provide advice on any allowances that should be made for contingencies in the next year’s
budget, including dollar amounts, and rationale.
g) A summary of the effectiveness of the financial management processes and any changes that
should be made to ensure ongoing financial viability.

Submission Items

Revised Profit and Loss Statement and associated ledger accounts with your changes and audit trail
marked

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Financial Review Report covering your analysis and recommendations

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INSTRUCTIONS TO THE ASSESSOR

Guidance to assessing this task

Please use the Outcome Record in the Assessment Record Tool to mark the task and refer to the sample
Assessors version of the Financial Review Report.
Student responses do not have to be verbatim but must address each concept listed in the sample
Assessor version of the Financial Review Report.
Students must have provided a thorough response to each section of the report template, in line with the
sample provided.
Student's review analysis must include the following:
 Income increased by 20% for consulting and executive search, more than the forecasted 10%.
 Costs increased by the expected 5%.
 However, conference costs were much higher than expected and there was a loss of $6,000. However,
as the feedback was that the conference was greatly enjoyed, the budgeted amounts for 2016 – 2017
for the conference to be held in Feb 2020 should be increased by 20% as reported in the profit and loss
statement.
 Students will also need to identify a proposed conference fee.
Provide instructions to the students on how to submit their assessment. E.g. email or online portal, etc.
Record the outcome of this assessment in the Assessment Record Tool.

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UNIT MAPPING – BSBFIM601 Manage finances
Application This unit describes the skills and knowledge required to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve
the required outputs for the business unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial
activity.
It applies to individuals who have managerial responsibilities which include overseeing the management of financial and other resources across a business unit, a
series of business units or teams, or an organisation. It covers all areas of broad financial management. In a larger organisation this work would be supported by
specialists in financial management.
No licensing, legislative or certification requirements apply to this unit at the time of publication.

Licensing requirements NA

Prerequisites NA

Assessment Tasks

Element Performance criteria AT1 AT2 AT3 AT4

1. Plan for financial 1.1 Review and analyse previous financial data to establish areas which have
Part A 
management generated a profit or loss

1.2 Undertake research to review reasons for previous profit and loss Part A, Part D

1.3 Review business plan to establish critical dates and initiatives that will Part A, Part B
require or generate resources in the next financial cycle

1.4 Analyse cash flow trends Part A

1.5 Review statutory requirements for compliance and liabilities for tax Part A

1.6 Review existing software and its suitability for financial management Part A

2. Establish budgets and 2.1 Use previous financial data to determine allocations for resources Part A, Part B
allocated funds 2.2 Make informed estimates of new items for inclusion in budget Part B

2.3 Prepare budgets in accordance with organisational requirements and Part B

statutory requirements

3. Implement budgets 3.1 Circulate budgets and ensure managers and supervisors are clear about
Part C, Part D 
budgets, reporting requirements and financial delegations

3.2 Manage risks by checking there are no opportunities for misappropriation of

funds and that systems are in place to properly record all financial Part C, Part D
transactions

3.3 Review profit and loss statements, cash flows and ageing summaries Part A, Part D 

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 Assessment Tasks

Element Performance criteria AT1 AT2 AT3 AT4

3.4 Revise budgets, as required, to deal with contingencies Part D 

3.5 Maintain audit trails to ensure accurate tracking and to

identify discrepancies between agreed and actual allocations

3.6 Ensure compliance with due diligence Part A 

4. Report on finances 4.1 Ensure structure and format of reports are clear and conform to
Part A, Part D 
organisational and statutory requirements

4.2 Identify and prioritise significant issues in statements, including comparative

Part D 
financial performances for review and decision making

4.3 Prepare recommendations to ensure financial viability of the organisation Part A 

4.4 Evaluate the effectiveness of financial management processes Part C 

Assessment Tasks

Foundation skills Description AT1 AT2 AT3 AT4

Reading  Interprets, analyses and evaluates complex information to determine

and adhere to organisational or legislative requirements and to assist with    
financial decision making

Writing  Develops and records information which incorporates a detailed

  
analysis of factual and forecasted information

 Prepares documents using format, content and layout appropriate to

  
audience, purpose and regulatory requirements

Oral communication  Explains financial decisions and outcomes clearly and uses listening

and questioning techniques to exchange information and obtain agreement

 Compares and contrasts complex numerical data to analyse and

  
evaluate financial position and processes

 Uses appropriate formulae to analyse financial data to assess and

 
manage risk and identify discrepancies

Navigate the world of work  Recognises, understands and adheres to legislative and organisational   

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 Assessment Tasks

Foundation skills Description AT1 AT2 AT3 AT4

requirements in undertaking own work

Interact with others  Selects and uses appropriate conventions and protocols when
communicating with supervisors and managers to share information or   
seek agreement

Get the work done  Uses logical processes in planning, implementing and evaluating
  
complex tasks to achieve stated goals

 Uses formal analytical thinking techniques to identify issues, investigate

underlying causes and generate possible solutions, seeking input from   
others as required

 Uses a range of digital technology to access, filter, compile, integrate

  
and logically present complex information from multiple sources

 Investigates new digital technologies and applications to manage and


manipulate data

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 Assessment Tasks

Performance Evidence AT1 AT2 AT3 AT4

Evidence of the ability to:

 plan for financial management Part A, Part C,


Part D

 read and review profit and loss statements, cash flows and aging summaries Part A 

 prepare, implement and revise a budget which aligns with the business plan, is based on research Part B, Part C,
 
and analysis of previous financial data and cash flow trends, and meets all compliance requirements Part D

 contribute to financial bids and estimates Part B, Part D

 establish a budget and allocate funds in accordance with statutory and organisational requirements Part B 

 communicate with other people including:

 reporting on financial activity and making recommendations
Part A, Part D  
 identifying and prioritising significant issues
 ensuring managers and supervisors are clear about budgets.

 analyse the effectiveness of existing financial management approaches including reviewing financial
Part A, Part C,
management software, managing risks of misappropriation of funds, ensuring systems are in place to  
Part D
record all transactions, maintaining an audit trail and complying with due diligence.

Assessment Tasks

Knowledge Evidence AT1 AT2 AT3 AT4

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

 identify the requirements for financial probity Q13

 describe the principles of accounting and financial systems Q 8, 9, 10

 explain Australian, international and local legislation and conventions that are relevant to financial Part A, Part C,

management in the organisation Part D

 outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company
Q1, 2, 3, 4, 5, 6, 7
Tax, Pay As You Go

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 Assessment Tasks

Assessment Conditions AT1 AT2 AT3 AT4

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial management field of work
and include access to:

 financial data   

 relevant legislation and Australian Tax Office requirements    

 examples of business plans, profit and loss statements, cash flows and aging summaries   

 organisational financial policies and procedures   

 financial management software. 

Assessors must satisfy NVR/AQTF assessor requirements. RTO to ensure

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