UNIT SUMMARY RESULT

This form is to be completed by the Trainer/Assessor and attached as a summary page for each student. To provide the outcome of the Assessment, a photocopy will be given to the student.

Student Name:
Student ID No:
Unit Start Date	16 Mar 2020
Unit End Date:	10 May 2020
Unit Code:	BSBFIM601
Unit Title:	Manage Finances

Please attach the following documentation to this form	Result S = Satisfactory NS = Not Satisfactory	Reassessment S = Satisfactory NS = Not Satisfactory
Assessment Task 1	 Activity 1a 1b 1c 1d 1e & 1f attached  Activity 2a 2b & 2c attached  Activity 3a 3b 3c 3d 3e & 3f attached  Activity 4a 4b 4c & 4d attached	 S |  NS	 S |  NS
Assessment Task 2	 Skills activity attached  Knowledge activity attached  Performance activity attached	 S |  NS	 S |  NS
Final Assessment Result for this unit	 Competent	 Not Yet Competent

Assessor Notes: (inclusive of reassessment, reasonable adjustment, further opportunities for gap training etc):

Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights. Name: ____________________________ Signature: ____________________________ Date: ____/05 /2020

Assessor Declaration:I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback Name: Dr Chad Cartabel Signature: ____________________________ Date: ____/05 /2020

Administrative use only

Entered onto Student Management Database

 ________________ Date

Initials

TITLE PAGE

Demonstration/Discussion to show understanding of concepts and bridge all gaps successfully completed

Project Assessment Task 1

Activity 1A

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to review and analyse previous financial data to establish areas which have generated a profit or loss.
Activity	Identify an area of business and explain how you could use different forms of current and present financial data to ascertain whether the department made a profit or a loss. You do not have to use actual figures from your business. In 2012-2013 Difference between Budgeted Expenditure and Actual Expenditure Difference between Projected Income and Actual Income In 2013-2014 Difference between Budgeted Expenditure and Actual Expenditure Difference between Projected Income and Actual Income Comparison 2012-2013 vs 2013-2014 Expenditure between last year to this year: Income between Last year and this year: Which year Business performed poorly and made a loss? Which year Business made a profit?

Activity 1B

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to undertake research to review reasons for previous profit and loss.
Activity	Using your answer from the previous activity, explain how you would undertake research to review the reasons for the profit or loss. Contributions to success Price: ______________________________________________ Packaging:________________________________________ purchasing process:________________________________ the quality of products/services:_________________________ availability of products/services._________________________ Contributions to the loss Price too high__________________________________________ Purchasing process complicated and/or inefficient_____________ Quality not good________________________________________ Goods not available _______________________________ Other factors a cheaper rival appeared on the scene the business received bad publicity / scandal and boycott the business premises became unusable; Virus there was a resource shortage economic crisis.

Activity 1C

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to review business plans to establish critical dates and initiatives that will require or generate resources in the next financial cycle.
Activity	Using your business plan, identify your business’ critical dates in terms of income and resource use and generation. My Business, ______________. Busy periods are ___________________ ___________________ __________________ The other months of the year are generally consistently steady. The needs and resources change during these periods As a business we need to do the following based on iinformaiton from previous years seasonally-appropriate items are ordered in advance to ensure sufficient stock. so we will ensure that we have stock ready for sale at this time __________________________________________________ ____________________________________________ __________________________________________________ __________________________________________________ __________________________________________________

Activity 1D

Estimated Time	15 Minutes
Objective	To provide you with an opportunity to analyse cash flow trends.
Activity	Explain how and why you would analyse your business’ cash flow trends. Cash flow analysis reveals that the Inflows between last year 2019 and previous year 2018 Receipts from in store sales: Change:_____________________________ Receipts on Catalogue sales: Change:___________________________ Invested Capital: Change:____________________________ Reasons :_____________________________ Outflows between last year 2019 and previous year 2018 Cost of Goods acquired: Change:_____________________________ Sales general and adm: Change:_____________________________ Taxes: Change:_____________________________ Building and Equipment Change::_____________________________ Reasons :_____________________________ Net Change to cash position between last year 2019 and previous year 2018 Change: :_____________________________ Reasons: :_____________________________ Total Changes to Liquid Assets between last year 2019 and previous year 2018 Change: :_____________________________ Reasons: :_____________________________ Net Change in Cash Position between last year 2019 and previous year 2018 Change: :_____________________________ Reasons: :_____________________________

Activity 1E

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to review statutory requirements for compliance and liabilities for tax.
Activity	Which taxes are applied to your business? Explain each one, including the rates and geographical variations, if applicable. The main taxes are: Company tax:_______________________ Payroll tax:_________________________ GST :_________________________________ Capital Gains Tax. _____________________________

Activity 1F

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to review existing software and its suitability for financial management.
Activity	In reference to your current financial management software, give all of the pros and cons you can think of. Summarise whether you think the software is suitable for both your current needs and future needs. Chose 1 from the following and discuss pros and cons QuickBooks. Kissflow Finance & Ops Cloud. … Zoho Finance Plus. … Xero. … Oracle Financials Cloud. … Sage Intacct. Pro: Easy to use _____________________________ ______________________________ ___________________ Cons: Updates and upgrades are expensive _______________________ ____________________ ____________________. Current needs: yes, as it does __________________ Future: No, as updates and upgrades need to ____________________

Activity 2A

Estimated Time	25 Minutes
Objective	To provide you with an opportunity to use previous financial data to determine allocations for resources.
Activity	Give an example of how you could use previous financial data to determine the allocation of resources. Explain the figures and how you would allocate resources accordingly. Service in a bar. resource: human resources. Bar staff have been complaining that they are understaffed, even though there are three of them working on the bar on an evening. The following considerations should be made: Familiar with the department: even though there are three members of staff, the bar can get five-deep all the way around with punters yelling for service. This is because it takes a lot of time to mix cocktails and pour stout. An additional pair of hands would help keep business flowing when staff are tied up preparing drinks Under-allocation of resources: staff are way too busy and cannot serve customers fast enough, meaning that both customers and staff are unhappy. Staff are under significant stress, which means that there is a high turnover of staff, which wastes money and time on training Over-allocation of resources: if there are too many staff, unengaged staff may loiter around the bar looking bored and getting in the way. This can give customers the impression that the bar is not as busy as it should be and that it is poorly managed. Past financial data may reveal that there was a high staff turnover, : SOLUTION: _______________________ increased use of sick days. SOLUTION: _______________________ customer complaints SOLUTION: _______________________ not meeting income targets SOLUTION: _______________________

Activity 2B

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to make informed estimates of new items for inclusion in budget.
Activity	Identify a new item you could add to the budget in your business. Estimate the costs of the new item and how it would be included in the budget. You need to estimate both upfront and ongoing costs. For example, if you wanted to buy a car for your business, you would have to estimate costs associated with: The initial purchase $_________ Expected Tax $_________ Yearly Fuel $_________ Yearly Consumables, such as tyres $_________ Yearly Maintenance $_________ Yearly Expected Repairs. $_________ You would have to budget for the initial outlay $_________ as well as the ongoing running costs associated with the vehicle, $_________ which would have to be factored into future budgets.

Activity 2C

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to prepare budgets in accordance with organisational requirements and statutory requirements.
Activity	Give an overview of the organisational policies and requirements you need to adhere to when you are preparing budgets. Chose FIVE of the following and provide 3 sentences explanation what you need to follow when you prepare a budget: Financial analysis assessments Financial management manuals Legal and organisational policies, guidelines and requirements Occupational health and safety policies, procedures and programs Price and exchange parameters Quality assurance and/or procedures manuals Recording and filing systems – to prepare a budget in Australia Reporting requirements – to prepare a budget in Australia Standard financial analysis techniques. Delegated authorities Internal control procedures Limits on volumes and types of financial transactions Reporting of duty, excise and other overseas government charges Reporting periods Taxation and payment timings.

Activity 3A

Estimated Time	15 Minutes
Objective	To provide you with an opportunity to understand how to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations.
Activity	Write a plan detailing how you would circulate newly-written budgets to managers and explain any additional information they need to know, such as reporting requirements and financial delegations. When the budgets are published, every manager receives a pack that includes a paper version of the budget, as well as a monthly, weekly and daily breakdown of the budget. It will include ____________ ____________ ____________ ____________ ____________ There are information sheets included in the pack that outline the organisation’s reporting procedure. It will include the following requirements and obligations Au Reporting procedure ____________ Au requirements____________ financial obligations – liabilities____________ delegations____________ ____________

Activity 3B

Estimated Time	25 Minutes
Objective	To provide you with an opportunity to understand how to manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions.
Activity	Identify five different ways staff could misappropriate company funds and suggest a resolution for each. All answers may vary. For example: Falsifying timesheets: ______ this could be resolved and prevented by _____ Stealing resources: ________ this could be resolved and prevented by Stealing money from the till: this could be resolved and prevented by Fake refunds: _____ this could be resolved and prevented by Misuse of petty cash: this could be resolved and prevented by

Activity 3C

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to review profit and loss statements, cash flows and ageing summaries.
Activity	Explain your organisation’s use of ageing summaries, in terms of accounts payable and receivable, where applicable. All answers may vary. For example: Accounts receivable. Overdue accounts are grouped into the following: 1-30 days overdue 31-60 days overdue 61-90 days overdue 91-120 days overdue 121+ days overdue. When accounts reach different stages of lateness, different letters are sent, reminding the customer of their debt and requesting payment. Once a customer’s account reaches 61 days overdue, they are ____________ Once a customer’s account reaches 91 days overdue, they are ________________________ Once an account reaches 121 days overdue, the customer is _____________

Activity 3D

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to revise budgets, as required, to deal with contingencies.
Activity	Give an example of a contingency that could occur at your workplace and explain how you would revise the budget to deal with it. If a major contingency occurs then you may need to adjust the department’s budget. This contingency means that: Income will be lost Expenditure will be over budget Staff will be surplus to requirements. In this instance, have to adjust the department’s budget to make allowances for the significant expenditure, the lost income and the staff’s wages. Your organisation may have a procedure in place that details how the budget should be revised. Examples of budget revision may be: Adding an extra category to the budget __________________ Writing up another budget __________________

Activity 3E

Estimated Time	15 Minutes
Objective	To provide you with an opportunity to understand how to maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations.
Activity	Give an example of how you could use an audit trail to identify a discrepancy in budget allocations. The audit trail’s financial record overview shows that the office overspent on consumables this quarter. The audit trail shows two transactions for $2,000 made with the stationery retailer that are four seconds apart, The reasons for this may be _______________________ _______________________ _______________________ _______________________ There was a discrepancy in the budget because the department had overspent. This was revealed in the audit trail, by identifying the problem payment.

Activity 3F

Estimated Time	30 Minutes
Objective	To provide you with an opportunity to understand how to ensure compliance with due diligence.
Activity	Identify three areas of compliance you could monitor in your workplace and explain how you would ensure that regulations are being adhered to. Budgets monitoring and compliance. I need to ensure that departments stick to their budget limits. I do this by Audit trails: _______________________ Record keeping_______________________ _______________________ _______________________

Activity 4A

Estimated Time	15 Minutes
Objective	To provide you with an opportunity to ensure structure and format of reports are clear and conform to organisational and statutory requirements.
Activity	Identify a report used in your workplace and list all of your organisation’s specifications here, including format and style. Quarterly budget reports need: A top sheet overview with a pie chart A balance sheet detailing figures Printed audit trails An operating statement written by the department manager. Example – 4 Images

Activity 4B

Estimated Time	15 Minutes
Objective	To provide you with an opportunity to understand how to identify and prioritise significant issuesin statements, including comparative financial performances for review and decision making.
Activity	How are significant issues in statements highlighted for priority attention in your workplace? A note is attached to the top page of the report indicating the nature of the issue and its importance and informs the reader where they can get more information. Example 1: IMPORTANT! Expenditure budget exceeded by $1,700. See page three for information. Example 2:

Activity 4C

Estimated Time	20 Minutes
Objective	To provide you with an opportunity to understand how to prepare recommendations to ensure financial viability of the organisation.
Activity	Explain how you would use each of the following to determine the financial viability of the organisation: Cash flow Changes in business activity, including markets, goods or services traded Consolidation Expenses and overheads Labour costs, including decisions to move production to other locations or sites Loss Profit Write-offs. Financial Viability ?_________________________ Profitability ? _________________________ Good Finances ? _________________________ Financial Sustainability ? _________________________ All answers may vary. Cash flow – poor inward cash flow can be a sign of poor viability, while good inward cash flow can be a sign of ____________________ Changes in business activity, including markets, goods or services traded – deteriorating markets can be a sign of _________________ Consolidation – consolidated loans can put your business at risk if you default on payments. Expenses and overheads – if expenses and overheads are unsustainable they can cause ______________________________ Labour costs, including decisions to move production to other locations or sites – unsustainable labour costs can seriously affect a business’ viability. Loss – significant losses can seriously affect a business’ profitability. Profit – high profit can be a sign of____________________ Write-offs – write-offs can directly damage the business’ finances.

Activity 4D

Estimated Time	25 Minutes
Objective	To provide you with an opportunity to understand how to evaluate the effectiveness of financial management processes.
Activity	Outline here how you would evaluate the effectiveness of your organisation’s financial management processes. Communicating with relevant staff _______________ Examining different aspects of the financial management process____________ Questioning (audit trail)____________ Reviewing performance (inflows, aging accounts write offs, contingencies. _______________

Activities Assessment Task 2

Section A: Skills Activity

Objective: To provide you with an opportunity to show you have the required skills for this unit.

A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion.

1. Evaluate whether your organisation is adhering to legislative requirements. What proof can you find to suggest they are or are not meeting legislative needs?

Pay all tax liabilities (and the appropriate amount) that apply to them including:

• Capital Gains Tax
• Goods and Services Tax (GST)
• Payroll tax

2. Create a document which provides an analysis of factual and forecasted information. Your document should be prepared using the format, content and layout most appropriate to the audience and purpose of the document.

Example of a Budget vs Actual Cash Flow (Image)

Find similar image to activity 1d

3. Demonstrate your oral communication skills by explaining financial decisions and outcomes clearly and using listening and questioning techniques to exchange information and obtain agreement. For example, you may host a meeting, talk via a video conference or have a one-to-one discussion with someone.

Meeting Minutes to discuss Financial Decision to Purchase Equipment – Cars for the business

Refer to Activity 2B and present why it is a good idea to purchase the car

Initial costs, reasonable

Ongoing costs within budget

4. Describe a time when you have used your numerical skills. Provide details of the calculations, to show how you have either:

• Reviewed and analysed numerical data embedded in organisational documentation and legislation; or
• Compared and contrasted complex numerical data to analyse and evaluate financial position and processes; or
• Used appropriate formulae to analyse financial data to assess and manage risk and identify discrepancies.

For the image selected do similar analysis to activity 1D – explanation

Image of cash flow Ratio Analysis of Financial Statement

5. Outline a task you have completed (which is part of your work role) where you have recognised, understood and adhered to legislative and organisational requirements.

• have specific reporting requirements in place e.g. to communicate information about budgets – managers purchasing assets or arranging maintenance and repairs would need to report their expenditure so that it is accounted for and the budget adjusted.

• Financial confidentiality procedures for a selected business in Australia : _________________________________________

6. Describe a protocol which is in place in your organisation (and you have used), to communicate with supervisors and managers to share information or seek agreement.

• protocol for reporting non-compliance with organisational policies and legislation. specific forms to fill in e.g. an Budget Variation Request.

Image of a sample Budget Variation Request.

What is the process to approve and communicate budget variation in the organisation?

7. Give a demonstration to a supervisor or assessor on how to use a range of digital technology to access, filter, compile, integrate and logically present complex information from multiple sources. What new digital technologies and applications are available (or soon to be available) to manage and manipulate data?

Image of Financial Management Software Different Screens

The software selected in activity 1F go to the website find images of the screen

What are the advantages of this software?

Cons put in here – advantages of the software to help your organisation manage its financials

Section B: Knowledge Activity (Q & A)

1. What is financial probity?

fair, equitable, open and transparent

clear audit trail

2. Describe three principles of accounting and financial systems.

Chose 3

1. Accrual principle
2. Conservatism principle
3. Consistency principle
4. Cost principle
5. Economic entity principle
6. Full disclosure principle
7. Materiality principle
8. Monetary unit principle
9. Reliability principle
10. Revenue recognition principle
11. Time period principle

3. Explain one-piece national piece of legislation and one local piece of legislation which is relevant to financial management in the organisation. Additional research may be needed for this question.

The Competition and Consumer Act 2010

_______________________________________________________________________________

It covers the following:

• Dealings with suppliers, wholesalers, retailers, customers and competitors
• Industry codes of practices
• Product safety
• Unfair market practices
• Product labelling
• Price
• Industry regulation (e.g. gas, electricity, airports, telecommunications).

4. Outline the requirements of Goods and Services Tax, Company Tax and Pay As You Go.

• Goods and Services Tax (GST) is _____________
  • Rates _________
  • Rules_______

• Company tax is ____________
  • Tax Rates are_______
  • Rules________

• Pay as you go (PAYG) is _________________
  • Requirements_____________
• An employer can only deduct money if:

• the employee agrees in writing and it’s principally for their benefit
• it’s allowed by a law, a court order, or by the fair work commission, or
• it’s allowed under the employee’s award or registered agreement

Section C: Performance Activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion.

The student demonstrated their ability to:	Achieved Yes/ No
Plan for financial management: review previous financial data and analyse areas of Profit and Loss Budgets, forecasts and variations Cash flow/profit reports Financial/operational statements and reports (e.g. expenditures and receipts, profit and loss statements) Market valuations.	 Yes  No
Read and review profit and loss statements, cash flows and ageing summaries to figure out reasons for differences in relation to: Price Presentation Purchasing process Quality of products/services Availability of products/services. other factors beyond the business’ control	 Yes  No
Prepare, implement and revise a budget which aligns with the business plan, is based on research and analysis of previous financial data and cash flow trends, and meets all compliance requirements	 Yes  No
Contribute to financial bids and estimates – buying a motor vehicle for example	 Yes  No
Establish a budget and allocate funds in accordance with statutory and organisational requirements	Yes  No
Communicate with other people including: reporting on financial activity and making recommendations identifying and prioritising significant issues ensuring managers and supervisors are clear about budgets	 Yes  No
Analyse the effectiveness of existing financial management approaches including reviewing financial management software, managing risks of misappropriation of funds, ensuring systems are in place to record all transactions, maintaining an audit trail and complying with due diligence.	 Yes  No

Name: Chad Cartabel

Signature: ____________________________

Date: ____/05 /2020

Demonstration/Discussion to show student is capable of applying the above concepts successfully completed

References

Use this link to create a reference list for sources used in your assignment then paste it here

https://www.citethisforme.com/apa/source-type

Title, Year viewed at 28/04/2020 www.becareful.com

Author, year title viewed at…..

Australian Bureau of statistics , journal name year viewed at link

Author, year title of book Published place of publication

SHIC Handbook – Managing Finance, SHIC 2020

https://www.citethisforme.com/apa/source-type