PM004

Assessment Task 2: Project

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Assessment information

Information about how you should complete this assessment can be found in Appendix A of the Business Works Student User Guide. Refer to the appendix for information on:

· where this task should be completed

· how your assessment should be submitted.

Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide.

This assessment requires you to demonstrate your skills and knowledge in managing finances.

This project can be based on the case study business in the BSBFIN601 Simulation Pack.

You will be collecting evidence for this unit in a Project Portfolio. The steps you need to take are outlined below.

Make sure you are familiar with the business you are basing this assessment on and have read through the necessary background information and policies and procedures. For the case study business, this is all of the documents included in the BSBFIN601 Simulation Pack.

Complete Page 4 of your Project Portfolio for this unit.

Read through the requirements of Section 1, 2 and 3 of your Project Portfolio which include detailed guidance relevant to all the assessment activities.

Remember to create logical folders for all of your work and in the final assessment task you will submit a screenshot of these folders. This will ensure you follow record keeping requirements.

You are required to prepare for financial management. This involves:

· Accessing previous financial reports to identify profits and losses and the reasons for such.

· Reviewing and reporting on financial statements including profit and loss statements, cash flows, ageing summaries and provide revisions as required.

· Reviewing the business plan to identify and report on initiatives relevant to developing a budget, as well as timing of initiatives.

· Reviewing available information to assess and report and cash flow trends.

· Reviewing and reporting on statutory requirements relevant to compliance with financial requirements, as well as tax liabilities.

· Analysing the software currently used for financial management by the business and assessing its ongoing suitability.

· Identifying if any changes need to be made to the budget and financial plans and negotiating these changes.

If you are completing this for the case study business, you will answer all the questions in your Portfolio based on your Simulation Pack.

Complete Section 1 of your Project Portfolio.

Submit your Portfolio to your assessor.

Now that you have prepared for financial management, you are to establish budgets and allocate funds. This involves:

· Developing a budget for a specified period (see the instructions in your Portfolio) according to the business plan.

· Making sure that risk management processes are in place so that funds cannot be misappropriated.

You are also to develop a presentation to in order to present the budget to the management for approval, as well as to ensure that reporting requirements and financial delegations are clearly understood by the team. Prepare your presentation following the guidelines in your Portfolio. Make sure your presentation has a logical structure and is in language that your team can understand. Your presentation will last for approximately 15 minutes and you will need to ensure you provide the opportunity for others (fellow students) to answer questions.

Complete Section 2 of your Project Portfolio.

Submit your Portfolio to your assessor. Your assessor will then advise you of the date and time of your presentation, as well as the students who will be participating.

In a group round-table style discussion with a student group of approximately two or three, you will provide your presentation.

Each person will have a turn (15 minutes per person) to present their work.

Your assessor will be looking to see that you can:

· demonstrate effective communication skills including:

· Speaking clearly and concisely

· Using non-verbal communication to assist with understanding

· Asking questions to identify required information

· Responding to questions as required

· Using active listening techniques to confirm understanding

· Use language that your audience can understand.

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This can either be viewed in person by your assessor or you may like to video record the session for your assessor to watch later. Your assessor can provide you with more details at this step. Make sure you follow the instructions above and meet the timeframes allocated.

Carefully review the information in your BSBFIN601 Simulation Pack and the instructions in your Portfolio. You are to assess and report on:

· Discrepancies between the amounts allocated for the budget and actual amounts.

· Review of overall financial performance.

· Effectiveness of the financial management processes.

· Your recommendations as relevant to financial performance and management.

Work on Section 3 of your Project.

Make sure you have completed all sections of your Project Portfolio, answered all questions, provided enough detail as indicated and proofread for spelling and grammar as necessary.

Submit to your assessor for marking.

Section 1: Financial management approaches planning

Business Plan Review

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 business plan.

Describe the overall objectives for the business, including financial objectives.

List the key initiatives in the business plan that will need to be factored into budget development.

Outline the timelines associated with these initiatives.

Financial report review

Access financial reports for the business for at least one reporting period – ideally over one year.

If you are completing this assessment based on the case study organisation, this will be the information in the simulation pack.

Identify the profit or loss made by the business for that reporting period.

Based on what you know about the business and your review of the financial statements, discuss the reasons for the profit or loss as identified from the report.

Compliance requirements and tax liabilities

Discuss each of the following as relevant to the business:

statutory requirements for financial compliance

tax liabilities

financial reporting requirements.

Financial Software

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 your workplace’s financial management software.

Indicate the name of the software that is currently utilised for financial management.

Provide an assessment of the extent to which you believe this financial software is suitable for the business.

Research and report on at least one other financial management software that you believe could also be suitable.

Compare the two indicating which you believe would be better.

Section 2: Establish budgets and allocate funds

Budget Preparation

If you are completing this assessment based on the case study organisation, this will be the financial reports included in the folder for 2019 – 2020 (note the financial reports for 2020 – 2021 are used for Section 3 of your Portfolio). If it is for your own business or workplace, you will need to access financial data to prepare the budget. The budget can be for the organisation as a whole or a specific work area.

You are to prepare a budget for the upcoming reporting period (one year). You may use financial software of your choice to create the budget. For example, Excel or a financial software system of your choice. If you would like to use the Budget Forecast template included in the Simulation Pack you may or you can develop your own.

Attach your budget to your Portfolio and also explain here how your Budget aligns with the business plan.

Misappropriation

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 your workplace’s policies and procedures associated with financial management.

As it is vital that funds are not misappropriated, review financial management processes to identify how this is ensured.

Describe the process here noting you will use this information to inform your presentation.

Further, describe the reporting requirements and financial delegations that apply to financial management.

Meeting Preparation

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 budget.

· Information on the processes that will be used to ensure funds are not misappropriated.

· Information on reporting requirements and financial delegations.

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:

Budget Forecast

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Section 3: Financial management monitoring and evaluation

Budget and financial performance reporting - You are required to report on overall financial performance for the business, as well as any variances between the actual and budgeted amount for the budget.

If you are completing this assessment based on the case study organisation, this will be the information in the simulation pack i.e. review the profit and loss statements for both years plus cash flow statements

Report on:

Review of overall performance and total income, expenses and profit margins.

Calculation of variation in actual versus budgeted amounts for each income source.

Calculation of variation in actual versus budgeted costs.

Identify the discrepancies between agreed budget allocations for the conference and the actual data.

Recommended revisions to the 2021 conference budget to deal with contingencies.

Proposed conference fee for 2022 conference assuming attendance of 70 people and to make a profit of at least 20%. Show your calculations.

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 management processes you have followed.

What do you believe could be improved? Describe at least three recommendations.

BSBFIN601 Assessment 2 - Laneway Education Pty Ltd ABN: 91 607 441 412, RTO No: 41504, CRICOS CODE: 106199K Last updated 01/12/2022

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