BSBFIN501 MANAGE BUDGETS AND

FINANCIAL PLANS

Project Portfolio

Student Version
 Contents

Section 1: Financial management approaches planning

Section 2: Financial management implementation
Section 3: Financial management monitoring and evaluation
Section 4: Financial management improvement evaluation
 Student name:

Assessor:

Date:

Business this assessment is

based on:

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CRICOS No. 036648 RTO No.45316 BSBFIN501 Manage budgets and financial plans | 5
 Section 1: Financial management approaches
planning

Budgets and financial plans

Describe the overall financial
objectives for the business,
Describe the budget and
financial plans you will use for
this assessment to assist in
achieving these objectives.
Your description should
include the purpose of the
budget and financial budgets
and the reporting period. You
should also evaluate and
report on the required
outcomes for the budget and
financial plan.
If you are completing this
assessment based on the
case study organisation, this
will be the information in the
simulation pack. If it is for
your own business or
workplace, you will need to
access the budget and
financial plan for your team.

Financial management
processes
Indicate the name of the
policy and procedure/s that is
utilised for financial
management. Further,
describe processes that are
used to monitor expenditure
and control costs, as well as
adjust contingency plans as
required.
If you are completing this
assessment based on the
case study organisation, this
will be the information in the
simulation pack. If it is for

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 your own business or
workplace, you will need to
access your workplace’s
policy/ procedures.

Budgets and financial plans

Based on your evaluation of
the budget/ financial plan,
what changes do you believe
need to be made to the
budget and financial plan?
Describe at least one change.

Contingency plans
As you know contingency
plans are vital for a budget
and financial plan.
Develop a contingency plan
for your budget/financial plan,
describing at least three
possible contingencies.

Negotiation
As documented above, you
have identified a change or
changes that need to be
made to the budget. Assume
that you need to negotiate
this change with a Manager.
Prepare an email here to
confirm your understanding of
the required budget and
financial plan outcomes, as
well as negotiate your
recommended changes to the
budget. Make sure you clearly
state why you are
recommending the change or
changes.

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 Section 2: Financial management implementation

Complete this section prior to the meeting.

Meeting preparation
As per the instructions in the assessment,
you are required to prepare a presentation
in order to communicate the financial
management plans to your team.
Your presentation can be in a form of your
choice such as a PowerPoint presentation.
Your presentation is to include:

 Details of the agreed budget and

financial plans (assume your change/s
to the budget were approved).

 Information on the processes that will

be used to monitor expenditure and
control costs and adjust contingency
plans as required.

 Details of the resources and systems

that your team need to access in order
to be able to perform their roles (this
will be as per the information you
completed in Section 1).
Your presentation must be clear and
concise and use a logical structure and
language that your audience can
understand.
List the name of your presentation here and
attach it to your Portfolio.

Attach:
Presentation ☐

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 Section 3: Financial management monitoring and
evaluation

Budget and expenditure An accounting category's variation between budgeted and actual
reporting statistics is measured on a regular basis by government,
corporations, or individuals. There are gains or profits to be had
You are required to report on
if the budget is favourable; there are losses or shortfalls when
the variance between the
the budget is not friendly. There exist budget discrepancies
actual and budgeted amount
because forecasters cannot accurately estimate future costs and
for your budget/financial plan
revenues.
following financial
management procedures. If
you are completing this
Uncontrollable and controllable circumstances might contribute
assessment based on the
to budget discrepancies. Controllable factors include, for
case study organisation, this
example, a badly planned budget and labour costs. External
will be the information in the
incidents, including a natural catastrophe, can have a significant
simulation pack. If it is for
impact on a company's bottom line.
your own business and you
can access this information,
then report on it. Otherwise A budget discrepancy occurs when actual spending differ from
review the Budget Report those planned. In order to get a clear picture about how well
information section in the their companies are doing financially during a given reporting
Simulation Pack, as well as period, cfos (CFOs) as well as other financial experts look at a
the Financial Management variety of variables.
Policy and Procedures.
Please also report on
contingencies in this section To improve business budgeting process and identify new
i.e. how well they were chances for value creation through optimisation, more strategic
implemented and expenditure, etc., variance analysis is useful.
modifications.

Expense variances and income variations make up the two main

categories of budget deviations.

An expense variation is one in which a company's actual costs

differ from its budgeted ones. Because they is more easily
regulated and streamlined than revenue, variance analysis tends
to focus on them.

There is a greater degree of unpredictability and uncertainty

when it comes to revenue expenses. Analysis can help you find
possibilities to improve revenue, profitability, and productivity
while control and elimination and cost of ownership by
evaluating these data sets in detail.

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Financial management
processes
Review current financial
management processes. If
you are completing this
assessment based on the
case study organisation,
review the Financial Policy
and Procedures, as well as
reflect on the financial plan
and budgeting planning and
implementation process you
have followed, as well as any
budget variances.
If you are completing this for
your own business, review
your current workplace
processes and the
budgeting/financial planning
process you have followed for
this assessment.
What do you believe could be
improved? Describe at least
three recommendations. Note
that you will need to
implement at least one of
these below.
Financial management
processes improvement
Select one of the
improvements and implement
it. You will also need to
provide evidence of this. For
example, you may decide that
the budget policy section of
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Both corrective action and budget adjustment are choices when
analysing budget discrepancies. Corrective action is used to reduce
future deviations (in static budgets), whereas adjustment is used to
match actual expenses.
The Town of Dartmouth's financial management has been
reviewed by the Department of Revenue's Division of Local
Services (DLS) at the request of a select board.
On the basis of a team comprising of staff from the Division's
Bureau of Accounts, Bureau of Local Assessment, and
Municipality Database Processing & Technical Bureau
(MDM/TAB), we have formulated our conclusions and
recommendations. On these trips, the team spoke with and
gathered information from members of the town's select board
and finance committee as well as the executive supervisor,
budget director, town accountant, town collector and assessing
administrator, among others, when they were on hand in each
office.
Tax recapitulation sheet and warrants were among the financial
records examined by the DLS team, as well as annual town
budgets, balance sheet reports, declarations of indebtedness
and more. The audits of Hague, Sahady & Co., P.C., for the
fiscal years 2005 and 2006 were also examined.
Accordingly, we've looked at the town's government structure,
the town's budget, warrant as well as capital planning processes
as well as the coordination and communication between and
among board members involved in the financial management
function. Lastly, we've taken a look at the town's overall financial
efficiency as measured by the town's budget.
It is our hope that the information in this report will be taken
into account by the town's board of trustees and those who
are working to improve the town's financial management.
Only when there is enough cooperation among town boards,
committees, and authorities can these proposals be
executed.
Ensure customers pay you on time
The survival and success of a firm depends on the ability to handle
its finances effectively. Planning, organising, regulating, & analyzing
your financial resources are all part of this process.
In order to make the most of your resources, fulfil your obligations
to your stakeholders, acquire a competitive edge, and plan for long-
term financial stability, you need to have good financial
BSBFIN501 Manage budgets and financial plans | 10
 the financial management
policy needs updating and in
this case you will provide an
updated policy. You may also
decide to recommend a
specific amount for inclusion
as a contingency.
You must also develop an
email to send to your team in
order to implement the
improvement. Document the
email in this section.
Submit your Portfolio to your
assessor now and then when
you receive feedback
complete the next and final
sections.
Attach:
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CRICOS No. 036648 RTO No.45316
management.
Your company's financial administration should be integrated into
the core functions and be a component of your long-term strategy.
Your clients might be encouraged to pay you on time by using a
variety of methods. Your greatest efforts may not always be enough
to ensure timely payment from all your customers. See how long it
takes for a payment to become overdue? As a result, you need to
get in touch with the consumer in question to see whether the
problem can be resolved and re-examine your payment methods to
make sure that this doesn't happen again. Late payment legislation
gives you the ability to charge late payments interest and principal
recovery charges. These rights are yours to use as you see fit.
Evidence of financial management improvement ☐
BSBFIN501 Manage budgets and financial plans | 11
 Section 4: Financial management improvement
evaluation
Provide an evaluation here of
the improvement you
implemented based on the
feedback from your assessor.
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In high-performing businesses, performance reviews are conducted
in a thorough and disciplined manner. Leaders, bold supervisors, and
open employees are all necessary for successful performance
evaluations and these are the following ways in which I Evaluated.
- Begin with a well-thought-out plan for success.
Organize company objectives into discrete deliverables, provide
performance metrics, and revise plans as needed throughout the
year. Clear performance plans save a lot of time when it comes
to writing evaluations.
- Make use of a standardised process for evaluating results.
A unified approach to employee assessments allows managers to
examine each employee's individual contribution toward the
organization's goals while also allowing supervisors the time to
produce quality evaluations for each of their employees.
- Require a lot of guidance and feedback from a coach.
Employees and supervisors’ benefit from regular feedback since it
avoids surprises and allows them to work on their performance.
Employees are less likely to be evaluated only on the basis of
their previous performance, good or bad.
- Organize formal reviews of progress at regular intervals.
Consider performing one or more mid-year reviews. Keep track of
your accomplishments and the steps you've taken to reach the
goals set forth in your performance plan.
- Assign supervisors specific responsibilities.
Both the deadlines and the standards by which their assessments will
be considered should be known by supervisors. Include details
like the following:
- Prepare. Decide on the most important points to bring up.
Give employees enough time to evaluate and prepare for the
evaluation conference by providing them with a draught
evaluation.
- Stay on the safe side. For example, a performance issue or
an accomplishment might not be the first occasion a worker
hears about it.
- Don't be vague about what you're talking about. It's important
to be honest about both successes and shortcomings while
discussing your work. Refer to the performance plan's
deliverables. Achievements or problems in performance can
BSBFIN501 Manage budgets and financial plans | 12
 have a significant impact on people's lives.
- Stay in check. Keep track of both the good and the negative.
Take note of particular honours and commendations, along
with any corrective or punitive action and performance
development programmes. Remember to take into account
all aspects of the year, not just the most recent results.
- Keep it simple. Concentrate on the most important tasks and
outcomes. Avoid talking about things that don't have anything
to do with the employee's work.
Don't be negative. Concentrate on what the worker has to do
next in order to either improve his or her knowledge and
abilities or their output.

- Provide training for supervisors.

Instruct supervisors in the art of facilitating productive discussions
with their staff. Show students how to give an employee the
tough feedback they need to succeed. Do your best to make
sure that they understand the evaluation procedure and the best
manner to fill out forms.
- Supervisors will benefit from HR help.
When confronted with challenging employee difficulties, supervisors
often forget their training. The connection between managers
and HR consultants should be based on mutual trust. Ascertain
that HR experts are equipped to assist managers. Provide
supervisors with 'just-in-time' tools and materials over the
internet.
- Build a feedback-focused culture.
Remind employees that they deserve feedback and that one of their
supervisors' key responsibilities is to assist them in reaching
their goals.
- Keep track of results and analyse them.
Perform evaluations and report to top leadership on their completion.
Assist managers in improving the quality of their evaluations by
giving them feedback and coaching. Don't tolerate subordinates
who aren't doing their jobs.
- It's best to use 360-degree evaluations.
Encourage managers to seek the opinions of coworkers, clients,
stakeholders, and other managers and supervisors about their
personnel. This can help to guarantee that the evaluation is fair
and complete.
- Review draught assessments with second-line supervisors.
Managers who review their evaluations with their very own managers
before meeting with their workers avoid mistakes and create

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 opportunity for coaching.
- Collaborate with other managers of comparable work units to
create evaluations.
- Supervisors can benefit from one another's experiences and
ensure that evaluations are conducted consistently
throughout the company.
Encourage the development of evaluations by both supervisors and
employees. If an employee draughts an evaluation and works
with the supervisor to incorporate both draughts into a final
review, they may have a better 'buy-in' to the process.

Record keeping
As indicated in the
assessment task, you must
create logical folders for all of
your work. Submit a
screenshot of these folders.
This will ensure you follow
record keeping requirements.
List the name of your file
here.

Attach:
Screenshot of folders ☐

Project Portfolio-Student Resources

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CRICOS No. 036648 RTO No.45316 BSBFIN501 Manage budgets and financial plans | 14