Finance Work

I declare that no part of this assessment has been copied from another person’s work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person.

Signed: ____________________________________________________________

Date: ____________________________________________________________

If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below:

This activity workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another person’s work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person.

Learner 1: ____________________________________________________________

Signed: ____________________________________________________________

Learner 2: ____________________________________________________________

Signed: ____________________________________________________________

Learner 3: ____________________________________________________________

Signed: ____________________________________________________________

Competency Record to be completed by Assessor

Learner Name: _______________________________________________________

Date of Assessment: _______________________________________________________

The learner has been assessed as competent in the elements and performance criteria and the evidence has been presented as:

	Assessor Initials
Authentic
Valid
Reliable
Current
Sufficient

Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)

If not yet competent, date for re-assessment: ____________________________________

Comments from Trainer/Assessor:

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Assessor Signature: ________________________________________________________ Observation/Demonstration

Throughout this unit, you will be expected to show your competency of the elements through observations or demonstrations. Your instructor will have a list of demonstrations you must complete or tasks to be observed. The observations and demonstrations will be completed as well as the activities found in this workbook. An explanation of demonstrations and observations:

Demonstration is off-the-job

A demonstration will require:

Performing a skill or task that is asked of you

Undertaking a simulation exercise

Observation is on-the-job

The observation will usually require:

Performing a work based skill or task

Interaction with colleagues and/or customers

Your instructor will inform you of which one of the above they would like you to do. The demonstration/observation will cover one of the unit’s elements.

The observation/demonstration will take place either in the workplace or the training environment, depending on the task to be undertaken and whether it is an observation or demonstration. Your instructor will ensure you are provided with the correct equipment and/or materials to complete the task. They will also inform you of how long you have to complete the task.

You should be able to demonstrate you can:

1. Plan for financial management

2. Establish budgets and allocate funds

3. Implement budgets

4. Report on finances

You should also demonstrate the following skills:

· Reading

· Writing

· Oral communication

· Numeracy

· Navigate the world of work

· Interact with others

· Get the work done.

Activities

Activity 1A

Estimated Time

20 Minutes

Objective

To provide you with an opportunity 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.

Activity 1B

Estimated Time

15 Minutes

Objective

To provide you with an opportunity 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.

Activity 1C

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to review business plan 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.

Estimated Time

15 Minutes

Objective

To provide you with an opportunity 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.

Activity 4D

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to evaluate the effectiveness of financial management processes.

Activity

Outline here how you would evaluate the effectiveness of your organisation’s financial management processes.

Skills and Knowledge Activity

Estimated Time

60-120 Minutes

Objective

To provide you with an opportunity to demonstrate your knowledge of the foundation skills, knowledge evidence and performance evidence.

Activity

Complete the following individually and attach your completed work to your workbook.

The answers to the following questions will enable you to demonstrate your knowledge of:

· Plan for financial management

· Read and review profit and loss statements, cash flows and aging summaries

· 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

· Contribute to financial bids and estimates

· Establish a budget and allocate funds in accordance with statutory and organisational requirements

· Communicate with other people

· 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

· Reading skills

· Writing skills

· Oral communication skills

· Numeracy skills

· Navigate the world of work

· Interact with others

· Get the work done

· Identify the requirements for financial probity

· Describe the principles of accounting and financial systems

· Explain Australian, international and local legislation and conventions that are relevant to financial management in the organisation

· Outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go.

Answer each question in as much detail as possible, considering your organisational requirements for each one.

1. You have just been taken on in the financial management department of your organisation. You have been told that you need to:

· Plan for financial management

· Establish budgets and allocate funds

· Implement budgets

· Report on finances

Over the next financial year.

For this activity you will have to document your work in your department, demonstrating all of the skills and knowledge listed above.

Firstly, you will have to plan for financial management.

Explain how you did this, including:

· Reviewing previous financial data

· Looking into areas of profit and loss

· Identifying important business dates

· Analysing cash flow trends

· Understanding different tax liabilities

· Deciding if the current financial management software is still suitable.

Next, you will have to establish and implement budgets for the financial year.

Explain how you did this, including:

· Examining previous data

· Estimating new areas of the budget

· Preparing the budget in line with your organisation’s policies and protocols

· Distributing budget information to managers and staff

· Removing and minimising opportunities for the ,misappropriation of funds

· Working with ageing summaries

· Revising budgets in the case of contingencies

· Maintaining audit trails

· Ensuring compliance of self and others.

At the end of the year, you have to report on the business’ finances.

Explain how you did this, including:

· Writing the report in formats and styles approved and required by the organisation

· Highlighting important issues

· Advise on the financial viability of the organisation

· Evaluate the effectiveness of the financial management process used.

Major Activity

Estimated Time

1 Hour

Objective

To provide you with an opportunity to demonstrate your knowledge of the entire unit.

Activity

This is a major activity – your instructor will let you know whether you will complete it during class or in your own time.

Attach your completed answers to the workbook.

You must individually, answer the following questions in full to show your competency of each element:

1. Plan for financial management

2. Establish budgets and allocate funds

3. Implement budgets

4. Report on finances

1. Why is examining previous financial data important for managing current and future finances?

2. Why might you need to understand the reasons for profit and loss?

3. Why should you identify your business’ or industry’s critical dates?

4. Why might you need to analyse cash flow trends?

5. Why do you need to be aware of your tax liabilities?

6. Why is it important to ensure that your financial management software is suitable for your business?

7. Why do you need to consider previous financial data when managing resource allocation?

8. Why do you need to estimate the costs of potential new items?

9. Why do you need to prepare budgets in line with organisational policies?

10. Why do managers need to be clear about the budget?

11. What could happen if you took no steps to prevent misappropriation of funds?

12. Why are ageing summaries useful?

13. Why might you have to revise budgets in the case of contingencies?

14. How can an audit trail help you identify discrepancies?

15. Why do you need to be diligent when ensuring compliance?

16. Why might your organisation make specifications about report formatting?

17. Why do you need to draw attention to significant issues in reports?

18. Why do you need to monitor the financial viability of the organisation?

19. Why do you need to review the effectiveness of your financial management processes?