BSBFIN501 – Manage budgets and financial plans

Unit Code	BSBFIN501
Unit Name	Manage budgets and financial plans
Name of the Document	Student Guide

About the student guide

This assessment booklet and tool has been designed for students undertaking face to face mode of study to provide information before students take assessments and contains assessment tools to assess the skills and knowledge required from students to be deemed competent in this unit. This booklet might not be suitable for students taking other modes of study e.g. online or work based. Please read all the information given to you when you receive this assessment booklet. If you do not understand any part of this booklet, please inform your assessor/trainer. The assessment booklet contains two (2) parts: PART 1: Assessments information: This part contains information on assessments for this unit of competency and how assessment will be conducted throughout the unit to achieve the competency. It includes: · Application of the unit of competency. · Purpose of assessment. · Elements, performance evidence and knowledge evidence requirements of the unit. · Conditions, context, required resources and location of the assessment. · Assessment tasks. · Outline of evidence to be collected. · Administration, recording and reporting the requirements including special adjustments, appeals, reasonable adjustments and assessors’ intervention. PART 2: Assessment tasks: This part contains the information to successfully undertake the assessment task. In each assessment task, students will find the following information: · Task instructions. · Role play / Practical Demonstration information. · Information on resources required, where applicable · Appendix 1- Assessment resource

Assessment Information

The following section within the document specifies and provides information regarding the assessments that the students will complete for this unit of competency. You will find all the necessary information to complete the assessment tasks, such as: Purpose of the assessment Context and Conditions for the assessment The resources required Performance evidence Knowledge Evidence Brief description of the assessment tasks to be conducted

Purpose of the Assessment

The purpose of the assessment is to determine competency in the unit BSBFIN501 – Manage budgets and financial plans.

Context and Conditions for Assessment

To comply with the assessment conditions of this unit: You must demonstrate adequate skills and knowledge evidence by providing a satisfactory outcome for each assessment task. You will be marked against the recommended model answers in the Trainer and Assessor guide. You will have access to suitable facilities, equipment and resources, including template documentation, e.g., Meeting minutes’ template, Meeting Agenda template, Contingency Plan Template, etc. to undertake the assessment tasks for this unit of competency. ASOC will conduct the practical assessment for this unit in its classroom located at Level 4, 123 Lonsdale Street, Melbourne, VIC 3000. Knowledge assessment for this unit will be conducted at the ASOC classroom at the location identified on the timetable. All ASOC Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Resources Required

In addition to the resources specified below, you will be required to have access to task resource requirements specified before each task: Computers with access to the internet and MS Office Applications, including MS Word, Adobe Acrobat Reader and working web browser. ASOC learner's resource for BSBFIN501 – Manage budgets and financial plans. Access to ASOC simulated business environment.

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

Manage the budget and financial plan of an organisation for one reporting period:

In the course of the above, the candidate must:

Communicate with relevant people to clarify budget and financial plans, negotiate changes and disseminate information

Prepare, implement and modify financial contingency plans

Monitor expenditure and control costs

Support and monitor team members

Report on budget and expenditure

Review and make recommendations for improvements to financial processes

Meet record-keeping requirements for Australian Taxation Office (ATO) and for auditing purposes

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

Basic accounting principles

Types of budgets and financial plans

Legislation and current ATO requirements, including the Goods and Services Tax (GST)

Key requirements for financial record keeping and auditing

Principles for managing work teams

Principles and techniques involved in managing:

Budgeting

Cash flows

Electronic spreadsheets

Goods and Services Tax

Ledgers and financial statements

Profit and loss statements

Evaluation of budget and financial plans

Assessment Tasks
To achieve competency in this unit, you must satisfactorily complete all the following assessment tasks within the date and time specified in the session plan. This will demonstrate that you have all the required skills and knowledge for this unit.
Assessment tasks	Assessment description	Location of the assessment
Assessment Task 1 (AT1): Knowledge Test	This assessment includes a series of questions that students are required to answer. You will need to answer all questions correctly. You will be given 4 hours to complete this task.	This assessment will be conducted in the ASOC classroom.
Assessment Task 2 (AT2): Project	This project requires you to complete a set of tasks that includes written practical tests and role-play activity. You may complete the projects in a simulated environment (ASOC Institute) with access to all the resources specified in Task resource requirements.	This assessment will be conducted at the ASOC simulated business environment.

Assessment Tasks

This section contains all the assessment tasks students will complete for BSBFIN501 – Manage budgets and financial plans. You will have access to all the resources as specified in the Task Resource Requirements.

Assessment Cover Sheet: Assessment Task 1 (AT1)

Student Detail
Student Name
Student Id:
Group No (If Applicable):
Assessment Details
Unit of Competency	BSBFIN501 – Manage budgets and financial plans.
Assessment Task	Knowledge Test
Due Date
Date of Submission
Date
Student Plagiarism Declaration: By submitting this assessment to the college, I declare that this assessment task is original and has not been copied or taken from another source except where this work has been correctly acknowledged. I have made a photocopy or electronic copy or photograph of my assessment task, which I can produce if the original is lost.
Assessor	Student
I declare that I have conducted a fair, valid, reliable and flexible assessment with this student. I have provided appropriate feedback to the student and declare that I have undertaken the indicated assessment integrity checks.	I have received, discussed and accepted my result as above for this task and I am aware of my appeal rights.
To be completed by the Assessor (Please tick the appropriate option)
Google check for plagiarism	· Yes · No
Check for copying/collusion	· Yes · No
Check for authenticity (own work)	· Yes · No
Cheating or use of sample response	· Yes · No
Assessor Signature
Student Signature

Assessment Task 1: Knowledge Test

Task Resource Requirements You must have access to the below listed resources in addition to the resources listed in 'Resources Required' in 'Assessment Information'

Student Assessment Booklet Pen ASOC learner's resource for BSBFIN501 – Manage budgets and financial plans.

Instructions for the Student

This assessment will be conducted in the ASOC classroom/computer lab with access to the resources listed above. This is an Open/Closed book assessment. You must answer all knowledge questions as part of this assessment and they can submit answers in either electronic or paper-based. The assessor may verify the authenticity of your' work by asking questions regarding the answers provided.

Planning the Assessment

Recommended date for assessment – [assessor to set a date as per timetable] Access all resources mentioned in the required resources, either printed copies or access via the internet Time required for assessment: 4 hours You must: Answer all the questions satisfactorily to be deemed competent. Complete the assessment and submit it in due timelines. Submit with a completed assessment cover sheet. Your assessor must set a time to provide feedback.

Evidence Specifications

At the end of the assessment, you will be required to submit the following evidence before the due date specified by the assessor: You are required to submit a completed knowledge test with all questions answered. Completed and signed cover sheet for assessment.

Evidence Submission

Documentation can be submitted electronically or paper-based. Your assessor will record the assessment outcome on the assessment cover sheet.

Question 1
Identify two basic accounting principles and briefly explain how each is applied in the workplace.
Accounting Principle	Explanation of How Each Principle is Applied in the Workplace

Question 2
Identify the two types of ageing accounts found in ageing summaries and briefly explain how each is used using your own words.
Types of Ageing Accounts	Explanation of How Each is Used

Question 3
Identify the three types of cash flow activities and briefly explain each using your own words.
Types of Cash Flow Activities	Explanation of Each Cash Flow Activity

Question 4
Identify two types of petty cash books and briefly explain how petty cash is recorded on each using your own words.
Types of Petty Cash Books	Explanation of How Petty Cash is Recorded

Question 5

Review the following link regarding reporting of Goods and Services Tax (GST): GST reporting methods https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/GST-reporting-methods/ Answer the following questions based on the link provided.

a. Identify ALL information a business is required to report in their Business activity statement (BAS) if they are using the full reporting method

b. Identify the condition that would require a business to report GST using the full reporting method.

c. Identify ALL information a business is required to report in their BAS if they are using the instalment method.

Question 6
Identify three categories of financial information that is reported in Profit & Loss Statements. Briefly define each using your own words.
Categories of Financial Information	Definition of Each Category of Financial Information

Question 7
List two legislations under the Australian Taxation Office (ATO) relevant to business taxation, except GST. Briefly explain the purpose of each legislation using your own words.
Legislation	Explanation of Each Legislation

Question 8
List two current tax requirements of the Australian Taxation Office (ATO) for businesses aside from the Goods and Services Tax (GST) already listed below. For each tax requirement, including the GST, you must: Identify the following Link to the ATO requirement Date you accessed the source Date the source was last modified Brief explanation of the requirement that the business must pay using your own words The information provided must be in line with the most current requirements upon the date of access.
ATO Tax Requirement for Businesses	Explanation of Each ATO Tax Requirement for Businesses
a. Goods and Services Tax (GST)
Source/ Link
Date Accessed
Modification Date
b.
Source/ Link
Date Accessed
Modification Date
c.
Source/ Link
Date Accessed
Modification Date

Question 9
Identify two key requirements for financial record-keeping and briefly explain each using your own words.
Key Requirements for Financial Record-keeping	Explanation of Each Key Requirement

Question 10
Identify at least one section of the Corporations Act 2001 containing key requirements for financial auditing. You must indicate the volume and the section of the Act when identifying the relevant section. Access the following link to assist you in completing this task: Corporations Act 2001 Series https://www.legislation.gov.au/Details/C2022C00306 Ensure that you are accessing the current version of the Corporations Act 2001
Sections of Corporations Act	Requirements for Financial Auditing

Question 11
Identify at least three principles for managing work teams and briefly explain how each promotes effective team management.
Principle of Managing a Team	Explanation of How Principle Promotes Effective Team Management

Question 12
Identify one principle involved in managing each of the financial requirements listed below. Briefly describe each principle using your own words.
Financial Requirement	Principles	Description of Each Principle
a. Budgeting
b. Cash flows
c. Electronic spreadsheets
d. GST
e. Ledgers
f. Financial Statements
g. Profit and Loss Statements

Question 13
Briefly describe how to use or calculate for the following financial requirements.
Financial Requirements	How Do You Calculate These?
a. Cash Flows
b. GST
Financial Requirements	How Do You Use These?
a. Budgets
b. Electronic Spreadsheets
c. Ledgers
d. Financial Statements
e. Profit and Loss Statements

Question 14
Identify the two areas that you need to evaluate when reviewing budget plans. Briefly explain why each needs to be reviewed.
Areas to Evaluate when Reviewing Budget Plans	Explanation Why Each Area Needs to be Evaluated

Question 15
Identify at least two techniques for evaluating budget plans and briefly explain how each is applied.
Techniques to Evaluate Budget Plans	Application of Technique

Question 16
Identify the three key financial statements that you must review when conducting an annual evaluation of your financial plans. Briefly explain why each financial statement needs to be evaluated.
Key Financial Statements	Explanation Why Each Financial Statement Needs to be Evaluated

Question 17
Identify at least two techniques for effective evaluation of financial plans. Briefly explain how each technique can be applied using your own words.
Techniques for Evaluating Financial Plans	Application of Technique

Knowledge Test Checklist- This must be completed by the assessor.
After the student has completed the Knowledge Questions, the assessor is required to complete the checklist provided below.
Questions	Was the students' response satisfactory? satisfactorysatisfactory?
Assessor to tick the correct option (Yes/No)	Yes	No
Identify two basic accounting principles and briefly explain how each is applied in the workplace.	·	·
Identify the two types of ageing accounts found in ageing summaries and briefly explain how each is used using your own words.	·	·
Identify the three types of cash flow activities and briefly explain each using your own words.	·	·
Identify two types of petty cash books and briefly explain how petty cash is recorded on each using your own words.	·	·
Review the following link regarding reporting of Goods and Services Tax (GST): GST reporting methods https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/GST-reporting-methods/ Answer the following questions based on the link provided.	·	·
Identify three categories of financial information that is reported in Profit & Loss Statements. Briefly define each using your own words.	·	·
List two legislations under the Australian Taxation Office (ATO) relevant to business taxation, except GST. Briefly explain the purpose of each legislation using your own words.	·	·
List two current tax requirements of the Australian Taxation Office (ATO) for businesses aside from the Goods and Services Tax (GST) already listed below. For each tax requirement, including the GST, you must: Identify the following Link to the ATO requirement Date you accessed the source Date the source was last modified Brief explanation of the requirement that the business must pay using your own words The information provided must be in line with the most current requirements upon the date of access.	·	·
Identify two key requirements for financial record-keeping and briefly explain each using your own words.	·	·
Identify at least two sections of the Corporations Act 2001 containing key requirements for financial auditing. Identify at least one requirement of financial auditing from each section indicated. You must indicate the volume and the section of the Act when identifying the relevant section. Access the following link to assist you in completing this task: Corporations Act 2001 Series https://www.legislation.gov.au/Details/C2022C00306 Ensure that you are accessing the current version of the Corporations Act 2001	·	·
Identify at least three principles for managing work teams and briefly explain how each promotes effective team management.	·	·
Identify one principle involved in managing each of the financial requirements listed below. Briefly describe each principle using your own words.	·	·
Briefly describe how to use or calculate for the following financial requirements.	·	·
Identify the two areas that you need to evaluate when reviewing budget plans. Briefly explain why each needs to be reviewed.	·	·
Identify at least two techniques for evaluating budget plans and briefly explain how each is applied.	·	·
Identify the three key financial statements that you must review when conducting an annual evaluation of your financial plans. Briefly explain why each financial statement needs to be evaluated.	·	·
Identify at least two techniques for effective evaluation of financial plans. Briefly explain how each technique can be applied using your own words.	·	·
Assessment Outcome (Assessor to tick the appropriate outcome)	·	Satisfactory
	·	Not Satisfactory
	·	Not Completed
Assessor Comments
Assessor Signature
Assessment Date
Student Signature

Assessment Cover Sheet: Assessment Task 2 (AT2)

Student Detail
Student Name
Student Id:
Group No (If Applicable):
Assessment Details
Unit of Competency	BSBFIN501 – Manage budgets and financial plans.
Assessment Task	Project
Due Date
Date of Submission
Date
Student Plagiarism Declaration: By submitting this assessment to the college, I declare that this assessment task is original and has not been copied or taken from another source except where this work has been correctly acknowledged. I have made a photocopy or electronic copy or photograph of my assessment task, which I can produce if the original is lost.
Assessor	Student
I declare that I have conducted a fair, valid, reliable and flexible assessment with this student. I have provided appropriate feedback to the student and declare that I have undertaken the indicated assessment integrity checks.	I have received, discussed and accepted my result as above for this task and I am aware of my appeal rights.
To be completed by the Assessor (Please tick the appropriate option)
Google check for plagiarism	· Yes · No
Check for copying/collusion	· Yes · No
Check for authenticity (own work)	· Yes · No
Cheating or use of sample response	· Yes · No
Assessor Signature
Student Signature

Assessment Task 2: project

Task Resource Requirements You must have access to the below listed resources in addition to the resources listed in 'Resources Required' in 'Assessment Information'

You will have access to: A simulated workplace environment. Computers with access to the internet and MS Office Applications, including MS Word, Adobe Acrobat Reader and a working web browser. ASOC learner's resource for the unit BSBFIN501 – Manage budgets and financial plans. Learner’s notes. Simulated task templates and requirements.

Instructions for the Student

This assessment will be conducted in the ASOC-simulated workplace environment with access to the resources listed above. This assessment requires you to demonstrate skills to undertake financial management in your organization and manage the budget and financial plan for one reporting period. It includes planning and implementing financial management approaches and supporting and evaluating effectiveness of financial management processes. This project is divided into seven (7) tasks. You are required to read the scenario provided and complete the associated tasks.

Planning the Assessment

Recommended date for assessment – [assessor to set a date as per timetable] Access all resources mentioned in the required resources, either printed copies or access via the internet Time required for assessment: 16 hours You must: Provide all evidence as required in this assessment. Complete the assessment and submit it in due timelines. Submit with a completed assessment cover sheet. Your assessor must set a time to provide feedback.

Evidence Specifications

At the end of the assessment, you will be required to submit the following evidence before the due date specified by the assessor: Completed assessment task with all questions answered. Completed and signed cover sheet for the assessment.

Evidence Submission

Documentation can be submitted electronically or paper-based. Your assessor will record the assessment outcome on the assessment cover sheet.

Simulated Environment

The simulated environment will provide you with all the required resources (such as the equipment and participants, etc.) to complete the assessment task. The simulated environment is very much like a learning environment where you are able to practice, use and operate appropriate industrial equipment, techniques, and practices under realistic workplace conditions. The simulated environment consists of the following: The training organisation is the workplace where you will be required to complete their job-related tasks and activities. The standard operating/workplace procedures. Your assessor will provide you with assistance throughout the assessment activity. The simulated environment must meet the following criteria: Follow standard operating/workplace procedures. Use up-to-date software and equipment. Work within stated timelines to meet deadlines. Gain experience in the challenges and complexities of dealing with multiple tasks. Experience prioritising competing tasks and dealing with contingencies. The simulated environment to work with others in a team. The simulated environment is sufficient to communicate, contribute and participate in tasks and activities. The simulated environment is sufficient to work independently and manage workload.

Company Overview and Scenario:

Online Media Solutions is a marketing and web development business based in Melbourne, Australia. From idea to design, development and marketing, we achieve results for our clients and grow their businesses. We have ventured into the web service industry to offer our superior and unique services to small businesses and organisations. Our experience and expertise in web sales and e-commerce give us the backing to provide solutions that are currently lacking in the market. There is an all-time high demand for web development and marketing for small businesses with signs of rising further. Interestingly, few web developers have taken advantage of this opportunity, leaving the industry with no dominant provider. The high costs of the projects and the focus on more prominent companies and organisations could be the contributing factor as to why this market remains untapped. We have a system that will reduce project costs dramatically, giving us the opportunity to offer quality services at reduced prices. Mission Our professional team of specialists with industry expertise deliver solutions not only for leading brands but also for non-profit organisations and innovative start-up businesses. We aim to reach success by providing unique yet creative solutions to our customers that will elevate their online presence. Our vision Quality web solutions with a sound technical foundation enable our clients to impress their customers and improve their online image worldwide. We want to make our customers stand out in the online environment and become the leading provider of online services for small and medium-sized businesses. Keys to success We will offer quality web services to small businesses and organisations at affordable prices. Customised and tailored services. Establishment of alliances and partnerships with internet service providers and organisations involved in computer consultancy. Services offered We offer the following services to our clients: Interface and Web Design Services E-commerce Web development Responsive web design WordPress Development Solutions HTML and CMS Development Services Coding Graphic Design Application development Online marketing Search Engine Optimization Pay Per Click (PPC) Marketing Content marketing Social media marketing Online Email Marketing Copyrighting Content and Production Copyright Web hosting and support Values Quality service to our clients Integrity and accountability Reliability Quality Innovation Respect Organisational hierarchy Current scenario The organisation has provided you with the budget and financial plans for the work team and wants you to manage the budget and financial plan for the organization for the next financial year. Financial plan and budget Financial objectives To achieve a minimum error rate in the financial transactions processes. Reconcile the accounts and ensure the books meet the legislative and regulatory requirements. Forecast The company is expecting a net profit of $712,250 by the end of the current year. The following is an excerpt from the financial forecasts for the financial plan and budget for the financial year: Expenses by Month Net profit by Month Projected master budget Master budget with profit projections Online Media Solutions Master Budget/Financial plan FY 2018/2019 FY Q1 Q2 Q3 Q4 REVENUE Commissions (2.5% sales) 77,500 17,500 25,000 17,500 17,500 Direct wages fixed 200,000 50,000 50,000 50,000 50,000 Sales 3,100,000 700,000 1,000,000 700,000 700,000 Cost of Goods Sold 400,000 100,000 100,000 100,000 100,000 Gross profit 2,422,500 532,500 825,000 532,500 532,500 EXPENSES General & Administrative Expenses Accounting fees 20,000 5,000 5,000 5,000 5,000 Legal fees 5,000 1,250 1,250 1,250 1,250 Bank charges 600 150 150 150 150 Office supplies 5,000 1,250 1,250 1,250 1,250 Postage & printing 400 100 100 100 100 Dues & subscriptions 500 125 125 125 125 Telephone 10,000 2,500 2,500 2,500 2,500 Repair & maintenance 50,000 45,000 2,000 2,000 1,000 Payroll tax 25,000 6,250 6,250 6,250 6,250 Marketing Expenses Advertising 200,000 50,000 50,000 50,000 50,000 Employment Expenses Superannuation 47,500 11,875 11,875 11,875 11,875 Wages & salaries 500,000 125,000 125,000 125,000 125,000 Staff amenities 20,000 5,000 5,000 5,000 5,000 Occupancy Costs Electricity 40,000 10,000 10,000 10,000 10,000 Insurance 100,000 25,000 25,000 25,000 25,000 Rates 100,000 25,000 25,000 25,000 25,000 Rent 200,000 50,000 50,000 50,000 50,000 Petty cash 1,000 300 300 200 200 Water 30,000 7,500 7,500 7,500 7,500 Waste removal 50,000 12,500 12,500 12,500 12,500 TOTAL EXPENSES 1,405,000 383,800 340,800 340,700 339,700 NET PROFIT (BEFORE INTEREST & TAX) 1,017,500 148,700 484,200 191,800 192,800 Income Tax Expense (30% Net) 305,250 44,610 145,260 57,540 57,840 NET PROFIT AFTER TAX 712,250 104,090 338,940 134,260 134,960 Sales cost centre expense budget Sales Centre A Sales Centre B Sales Centre C Commissions $30,000 $15,000 $15,000 Wages $150,000 $75,000 $75,000 Telephone $4,500 $2,250 $2,250 Office supplies $1,500 $750 $750 Note that the company deems a standard variance in budgets of up to 5% acceptable. Your roles and responsibilities: You are working as a Finance Manager. You undertake financial management in your organisation. It includes planning and implementing financial management approaches and supporting and evaluating the effectiveness of financial management processes. As part of your job role, you have the following job responsibilities: Communicate with relevant people to clarify budget and financial plans, negotiate changes and disseminate information Prepare, implement and modify financial contingency plans Monitor expenditure and control costs Support and monitor team members Report on budget and expenditure Review and make recommendations for improvements to financial processes Meet record-keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.

Task 1: Plan financial management approaches

Scenario

The financial plan and budget was implemented for the first quarter. During the implementation of the financial plan and budget for the first quarter of the financial plan, the following issues were identified: Poor sales due to economic downturn. The sales have declined by 20% for the first quarter. The cost of goods sold remained the same. The government has changed the minimum wage by 3%. This has led to an increase in wage expenses. (All the wages after June 2018 are to be calculated at 3% extra).

This is a Role-play task.

In this assessment task, you must:

Arrange a meeting with the Operational Manager (Assessor) The purpose of the meeting is to clarify budget and financial plans and negotiate changes.

Before the meeting, you are required to:

Access budget and financial plans for the work team (As given in the company overview and Scenario above)

Prepare the Meeting agenda using the Meeting Agenda template provided below.

E-mail the meeting participants to invite them to the meeting using the Email template provided.

During the meeting, you must:

Welcome the participants

Provide an introduction to the meeting’s purpose

Consult them regarding your evaluation of the budget and financial plan outcomes and the changes required.

Negotiate any changes required to be made to the budget and financial plans

Provide an opportunity for discussion:

Listen and comprehend information from a variety of spoken exchanges with the participants of the meeting

Provide an opportunity for the audience to ask questions

Respond to questions.

Acknowledge and respond to differences in opinions.

After the meeting, you must:

Summarise the meeting using the Meeting Minutes Template.

Email the prepared meeting minutes to the attendees of the meeting using the Email Template provided.

Meeting Agenda Template:

Date/Time:
Location:
Chairperson:
Meeting Attendees: Full names and roles
Agenda Item/Topic	Discussion/Outcomes	Action Officer	Due Date
Welcome
Summary:	Overall Summary Decision/s Action/s if any
Next Meeting Time/date
Meeting Closed at:
Minutes are true and accurate records of the Meeting.	Approved/confirmed by whom?

Email template:

Email to Operations Manager for meeting invitation
To
From
Cc
Subject
Message
Attachment

Meeting Minutes Template:

Meeting Objective
Attendees
Venue
Date
No.	Points Discussed	Actions Suggested	Target date
Signature of attendee 1:	Signature of attendee 2:
Signature of attendee 3:	Signature of attendee 4:

Email template:

Email Meeting Minutes to Meeting Attendees
To
From
Cc
Subject
Message
Attachment

Task 2: Plan financial management approaches

Scenario

The discussed negotiations have been approved by the Operational Manager. The Operational Manager wants you to implement the negotiated changes in the financial plan and budget.

In this assessment task, you must:

Implement the negotiated changes in the financial plan and budget. These changes are:

Provided in the Scenario in Task 1.

Negotiated with the Operational Manager in Task 1.

E-mail the meeting participants to invite them to the meeting using the Email template provided.

To implement the changes, you must:

Revise the budget and document the outcomes that are to be achieved after each quarter.

Check expenditures for each quarter and provide appropriate responses to control costs.

Discuss the processes used to monitor actual expenditure and to control costs.

Identify the cost variations and expenditure overruns for each quarter

You can use the below-provided template to document your response:

Revised Master budget/Financial plan with profit projections

Processes to monitor actual expenditure and to control costs

M.S Aviation Pty Ltd trading as Australian School of Commerce Name of the Document- BSBFIN501 Candidate Assessment Tool Version no:1.0 Page 40 of 64

Revised Master budget/Financial plan with profit projections Template

Revised Master budget/Financial plan with profit projections
Online Media Solutions
Master Budget FY 2020/2021
	FY	Var and exp overrun	Q1	Var and exp overrun	Q2	Var and exp overrun	Q3	Var and exp overrun	Q4	Var and exp overrun
REVENUE
Commissions (2.5% sales)
Direct wages fixed
Sales
Cost of Goods Sold
Gross profit
EXPENSES
General & Administrative Expenses
Accounting fees
Legal fees
Bank charges
Office supplies
Postage & printing
Dues & subscriptions
Telephone
Repair & maintenance
Payroll tax
Marketing Expenses
Advertising
Employment Expenses
Superannuation
Wages & salaries
Staff amenities
Occupancy Costs
Electricity
Insurance
Rates
Rent
Petty cash
Water
Waste removal
TOTAL EXPENSES
NET PROFIT (BEFORE INTEREST & TAX)
Income Tax Expense (30% Net)
NET PROFIT AFTER TAX

Processes to monitor actual expenditure and to control costs

Explain any two (2) processes to monitor actual expenditure and to control costs (100-150 words

Task 3: Prepare a contingency plan

Scenario

The Operations Manager wants you to prepare a contingency plan based on the revised Master budget/ Financial plan. The contingency plan is to be prepared, taking into consideration the following event into consideration: The advertising budget has been increased to achieve the desired sales. How will your management the contingencies related to the variations in sales figures?

In this assessment task, you must:

Prepare contingency plans considering the above-mentioned scenario.

To prepare the contingency plans, you must:

Identify the risks considering the variations to the initial plans (As given in the scenario above).

Complete the Contingency plan template provided below.

Contingency Plan Template

Company name:
Person Developing the plan:
Name:	Position:
Risk identified:
Strategies/activities to minimize the risk	By when	By whom

Task 4: Communicate revised master budget/financial plan and contingency plan to the team members

Scenario

Your team has the following team members: Bookkeeper Budget Manager The Operations Manager wants you to: Clarify the revised master budget/financial plan and contingency plan to the team members Provide the team members with the support by briefing them on their responsibilities for each role and how they can achieve the expected outcomes from the budget. Determine resources and systems to manage financial management processes within the work team.

This is a Role-pay task.

In this assessment task, you must:

Arrange a meeting with the team members (Book keeper and Budget Manager) in order to:

Clarify the revised master budget/financial plan and contingency plan to the team members

Provide the team members with the support by briefing them on their responsibilities for each role and how they can achieve the expected outcomes from the budget.

Determine resources and systems to manage financial management processes within the work team

Before the meeting, you must:

Determine the roles and responsibilities of the team members and how they can achieve the expected outcomes from the budget.

Determine resources and systems to manage financial management processes

Prepare a presentation that includes the following details:

Areas/quarter of the financial budget

Negotiations conducted

Adjustments made to the Master budget/financial plan

Cost variations and expenditure overruns for each quarter

Contingency plan

Roles and responsibilities of the team members

How they can achieve the expected outcomes

Resources and systems to manage financial management processes

Prepare a meeting agenda using the Meeting agenda Template

Send an Email to the participants of the meeting inviting them to the meeting.

During the meeting, you must:

Welcome the participants

Provide an introduction to the meeting’s purpose

Deliver the presentation

Clarify the budget details.

Provide the team members with the support by briefing them on their responsibilities for each role and how they can achieve the expected outcomes from the budget.

Determine resources and systems to manage financial management processes within the work team.

Provide an opportunity for discussion:

Listen and comprehend information from a variety of spoken exchanges with the participants of the meeting

Provide an opportunity for the audience to ask questions

Respond to questions.

Acknowledge and respond to differences in opinions.

Clarify and confirm understanding.

Clarify their roles and responsibilities.

After the meeting, you must:

Summarise the meeting using the Meeting Minutes Template.

Email the prepared meeting minutes to the attendees of the meeting using the Email Template provided.

Meeting Agenda Template:

Date/Time:
Location:
Chairperson:
Meeting Attendees: Full names and roles
Agenda Item/Topic	Discussion/Outcomes	Action Officer	Due Date
Welcome
Summary:	Overall Summary Decision/s Action/s if any
Next Meeting Time/date
Meeting Closed at:
Minutes are true and accurate records of the Meeting.	Approved/confirmed by whom?

Email template:

Email to Book keeper and Budget Manager for meeting invitation
To
From
Cc
Subject
Message
Attachment

Meeting Minutes Template:

Meeting Objective
Attendees
Venue
Date
No.	Points Discussed	Actions Suggested	Target date
Signature of attendee 1:	Signature of attendee 2:
Signature of attendee 3:	Signature of attendee 4:

Email template:

Email Meeting Minutes to Meeting Attendees
To
From
Cc
Subject
Message
Attachment

Task 5: Implement variations to the financial budgets

Scenario

For the first two-quarters of the financial budget, there were no further variations in the implementation in the budget. However, there are two customers that have bought products from the company, and their payments are still due. As per the company policy and procedures if the debts are not paid for a period of 60 days, then they are to be written as bad debts. On 21 October 2018, Damsons ltd purchased bicycles and have not made any payments. The total amount on the invoice due is $4,800. On 29 October 2018, Ping ltd purchased spare parts of the bicycles for $3,200 and have not cleared the invoice.

In this assessment task, you must:

Prepare the following financial statements based on the above scenario:

Ageing summaries using the Agening Summary Template.

Profit and loss statements using the Profit and Loss statements Template.

Ageing summary template

Customer Name	Total A/R	0-30 Days	31-60 Days	61-90 Days	90+ Days

Proft and Loss Statements template

Cash Flow	Q1	Q2
REVENUE
Commissions (2.5% sales)
Direct wages fixed
Sales
Cost of Goods Sold
Gross profit
EXPENSES
General & Administrative Expenses
Accounting fees
Legal fees
Bank charges
Office supplies
Postage & printing
Dues & subscriptions
Telephone
Repair & maintenance
Payroll tax
Marketing Expenses
Advertising
Employment Expenses
Superannuation
Wages & salaries
Staff amenities
Occupancy Costs
Electricity
Insurance
Rates
Rent
Petty cash
Water
Waste removal
Bad debt expense
TOTAL EXPENSES
NET PROFIT (BEFORE INTEREST & TAX)
Income Tax Expense (30% Net)
NET PROFIT AFTER TAX

Task 6: Report on budget and expenditure

Scenario

Due to decreasing the budget for maintenance and repair cost, some of the machines were not repaired during the first two quarters. This led to the breakdown in the machinery and occurrence of an extra cost of maintenance of $3000 in the third quarter. Further, the office supplies accounted for an extra $500 in the fourth quarter.

In this assessment task, you must:

Report on the forested budget and the actual expenses accrued:

Calculate the actual expenditure

Analyse variance between the actual and budgeted finances

Document the variances identified

Use the Actual Expenditure template given below.

Revise the contingency plan.

Actual Expenditure template

Revised Master budget/Financial plan
Online Media Solutions
Master Budget FY 2018/2019
	Q3 Forecasted	Q3 Actual	Var and Exp overrun	Q4 Forecasted	Q4 Actual	Var and Exp overrun
Commissions (2.5% sales)
Direct wages fixed
Sales
Cost of Goods Sold
Gross profit
EXPENSES
General & Administrative Expenses
Accounting fees
Legal fees
Bank charges
Office supplies
Postage & printing
Dues & subscriptions
Telephone
Repair & maintenance
Payroll tax
Marketing Expenses
Advertising
Employment Expenses
Superannuation
Wages & salaries
Staff amenities
Occupancy Costs
Electricity
Insurance
Rates
Rent
Petty cash
Water
Waste removal
TOTAL EXPENSES
NET PROFIT (BEFORE INTEREST & TAX)
Income Tax Expense (30% Net)
NET PROFIT AFTER TAX

RTO Connect PTY Ltd t/a Australian Study Link Institute Document Name: BSBFIN501-Trainer and Assessor Guide Version no: 1.0 Page 63 of 64

Contingency Plan

Company name:
Person Developing the plan:
Name:	Position:
Risk identified:
Strategies/activities to minimize the risk	By when	By whom

Task 7: Recommend improvement to financial processes

Scenario

Online Media Solutions currently employ a manual system of accounting. This leads to a certain number of issues. These issues are as follow: The team miss deadlines or the entries are documented at late intervals Error rates are very high This affects the morale of the team, causing them to feel as though they are wasting their time, undertaking useless or monotonous tasks, and being criticised for poor performance. The management wants to make improvements to the financial processes. They want you to analyse the existing manual financial management system and recommend improvements.

In this assessment task, you must:

Review and make recommendations for improvements to financial processes:

Analyse the information given in the scenario above.

Recommend improvements according to financial objectives (Financial processes)

Prepare a plan that outlines the implementation and evaluation of the agreed improvements.

For Task 1-7, Explain the documents to be kept to meet record-keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.

Use the Implementation and evaluation template given below.

Implementation and evaluation Template

Recommended improvements to the financial processes (Any two)
Implementation and Evaluation
Improvements	Action steps	Evaluation criteria	Target date	Resources
Documents to be kept to meet record-keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.

observation checklist

Observation Checklist Part 3 All Task To be completed by the assessor
During the project, did you observe the student demonstrate the task deliverables as follows:	Was the student's performance satisfactory?
1. Clarified the budget and financial plans and negotiations changes. This is evidenced by:	· Yes · No
Arranging the meeting with the Operations manager in Task 1
Meeting Agenda in Task 1
Meeting Minutes in Task 1
Emails to operations manager in Task 1
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
2. Demonstrate effective and communication skills at all times during the meeting in Task 1. This includes but is not limited to:	· Yes · No
Used formal communication style, encouraging and respectful tone
Asked questions to clarify and confirm understanding
Listened actively
Understood the information needs of others
Adapted communication to suit the audience
Answered questions clearly and concisely
Used non-verbal communication skills that encourage discussion and feedback: nodding, smiling, eye contact
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
3. Implemented the negotiated changes in the financial plan and budget. This is evidenced by:	· Yes · No
Revised Master budget/Financial plan with profit projections in Task 2
Processes to monitor actual expenditure and to control costs in Task 2
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
4. Prepared contingency plan identifying the risks considering the variations to the plans prepared initially. This is evidence by:	· Yes · No
Contingency plan in Task 3
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
5. Communicated and clarified the revised master budget/financial plan and contingency plan to the team members and provided team members with their expected roles and responsibilities. This is evidenced by:	· Yes · No
Arranging the meeting with the Team members in Task 4
Meeting Agenda in Task 4
Meeting Minutes in Task 4
Emails to team members in Task 4
Presentation prepared in Task 4
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
6. Demonstrate effective and communication skills at all times during the meeting in Task 4. This includes but is not limited to:	· Yes · No
Used formal communication style, encouraging and respectful tone
Asked questions to clarify and confirm understanding
Listened actively
Understood the information needs of others
Adapted communication to suit the audience
Answered questions clearly and concisely
Used non-verbal communication skills that encourage discussion and feedback: nodding, smiling, eye contact
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
7. Implemented variations to the financial budgets. This is evidenced by:	· Yes · No
Ageing Summary in Task 5
Profit and Loss statement in Task 5
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
8. Calculated the actual expenditure and reported on the budget and variance. This is evidence by:	· Yes · No
Actual Expenditure in Task 6
Revised Contingency plan in Task 6.
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No
9. Recommended improvement to financial processes and provided information on documents to be kept to meet record-keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes This is evidence by:	· Yes · No
Implementation and evaluation in Task 7.
First additional attempt (Tick this option, if required)	· Yes · No
Second additional attempt (Tick this option, if required)	· Yes · No

Assessor comments (Please provide detailed comments on the student's performance)
Assessment Outcome (Assessor to tick the appropriate outcome)	·	Satisfactory
	·	Not Satisfactory
	·	Not Completed
Assessor Comments
Assessor Signature
Assessment Date
Student Signature

competency record summary sheet

Unit Name and Code	BSBFIN501 – Manage budgets and financial plans
Student’s Name
Student’s ID
Assessor Name
Date of Completion
ASSESSMENTS	STUDENT RESULTS Assessor must tick the appropriate option for each assessment task. Please note: Student is required to be marked ‘Satisfactory’ in all assessment tasks to be deemed competent for this unit.
	Satisfactory	Not Yet Satisfactory	Not Completed
Assessment Task 1: Knowledge Test	·	·	·
Assessment Task 2: Project	·	·	·
Comments:
Unit Outcome: Assessor to tick the appropriate option	· Competent	· Not Competent
Is re-assessment required: Assessor to tick the appropriate option	· Yes	· No
Assessor Signature:
Student Signature:

appendix 1

ASOC will conduct this assessment on its campus by setting a simulated business environment where the conditions are typical of those in a working environment in this industry. This includes access to:

Workplace policies and procedures

Workplace budgets and financial plans

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Copyright: Instructions in this tool have been developed by NTA and ASOC for sole purpose of use by ASOC. Any part of these assessment instructions cannot be reproduced in full or part for without approval of ASOC and NTA which holds authorship rights.

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