BSBFIM501_Learner_Workbook_8.docx

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BSBFIM501

Manage budgets and financial plans

Learner Workbook

Table of Contents

Table of Contents

2

Candidate Details

3

Assessment – BSBFIM501: Manage budgets and financial plans

3

Competency Record to be completed by Assessor

4

Activities

7

Activity 1

7

Activity 2

8

Activity 3

9

Activity 4

10

Activity 5

13

Activity 6

14

Activity 7

15

Activity 8

16

Activity 9

17

Activity 10

18

Activity 11

19

Activity 12

20

Skills and Knowledge Activity

21

Major Activity

A

23

Major Activity

B

25

Candidate Details

Assessment – BSBFIM501: Manage budgets and financial plans
Please complete the following activities and hand in to your trainer for marking. This forms part of your assessment for BSBFIM501: Manage budgets and financial plans. Remember to always keep a copy of your assessment before submitting.
Name: _____________________________________________________________
Email: _____________________________________________________________
Employer: _____________________________________________________________

Declaration

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 Submission: __________________________
Date of Assessment: __________________________
The learner has been assessed as competent in the elements and performance criteria and the evidence has been presented as:

Satisfactory (S)

Non-Satisfactory (NS)

Assessor Initials

Activities 1 – 12

Skills and Knowledge Questions

Major Project A

Major Project B

Learner is deemed: COMPETENT NOT YET COMPETENT (Please Circle/Highlight)

1. Resubmission Date: ________________________

2. Resubmission Date: ________________________

3. Resubmission Date: ________________________

Comments from Trainer / Assessor:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Assessor Signature: ___________________________ Date: _______________________

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 financial management approaches
2. Implement financial management approaches
3. Monitor and control finances
4. Review and evaluate financial management processes.
You should also demonstrate the following skills:
Reading
Writing
Oral communication
Numeracy
Navigate the world of the work
Interact with others
Get the work done.

Activities

Activity 1

Estimated Time

40 Minutes

Objective

To provide you with an opportunity to access budget/financial plans for the work team; clarify budget/financial plans with relevant personnel within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible; negotiate any changes required to be made to budget/financial plans with relevant personnel within the organisation.

Activity

How would you go about accessing the budget and financial plans for your organisation/department? – attach the latest budget
When are budgets completed within your organisation/department?
What if any changes have occurred in your organisation/department since the last budget was prepared, that might impact on the next budget?
Which personnel would you need to consult and what issues might need to be addressed? ( minimum 500 words)

Activity 2

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to prepare contingency plans in the event that initial plans need to be varied.

Activity

What is the purpose of a contingency plan? Note five possible contingencies related to your organisation / department that may be required due to recent or potential changes.

·
·
·
·
·
Using one of the risks identified above, complete a contingency plan table using the template below:

Company Name:
Risk identified:
Plan prepared by:
Key stakeholders consulted:

Strategy to minimise risk

Staff responsible

Due date

Review date:

Activity 3

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to disseminate relevant details of the agreed budget/financial plans to team members.

Activity

Who might you need to inform about budget/financial plans in your organisation / department – include an organisational chart? What information would the respective people need to know?(minimum 500 words)

Activity 4

Estimated Time

40 Minutes

Objective

To provide you with an opportunity to provide support to ensure that team members can competently perform required roles associated with the management of finances.

Case study

Activity

BJS White Goods

BJS is a medium-sized business which manufactures a range of white goods and household appliances. It comprises a factory located in the western suburbs of Melbourne with several offices for the administrative staff. There are 56 permanent staff, with casuals being employed in busy periods. Stock is sold in bulk to retailers, with Sales Clerks processing s and sending out invoices for payment. Materials are ed by the Purchasing Officer from a variety of suppliers locally, interstate and overseas.

Personnel

Support you would provide to assist with financial management

Sales Clerk

Manufacturing Manager

Accounts Payable Officer

Human Resources Officer

Purchasing Officer

As the business has grown, it has become apparent that a new role is required. Management have decided to create a Sales Coordinator role to oversee the team of Sales Clerks. This role will also administer petty cash, supervise the processing of invoices and purchase s, supervise the banking and daily reconciliation, develop monthly sales reports and report against weekly and monthly sales targets.
Use the following table to develop recommendations for the resources, information and support that will be needed once this new staff member commences work at BJS White Goods.

Duties

Specific organisational information, resources and support to be provided

Management of Sales Clerks

Invoicing

Purchase Orders

Banking

Daily reconciliation

Monthly sales reports

Petty cash

Reporting against sales targets

After a successful round of advertising and recruitment, the General Manager at BJS White Goods has decided to hire Stacey Harrison as the new Sales Coordinator and she will be commencing on August 26th. Use the table below to outline how Stacey should be supported in relation to her new responsibilities for financial management:

Activity

By Whom

Due Date

What types of support does your organisation offer to team members in completing their required roles in regards to managing finances? Describe how you have provided this type of support to the team within the last 12 months. Why was this support needed? What resources or personnel did you draw on? What sort of training, coaching or mentoring did you provide? (minimum 250 words)

Activity 5

Estimated Time

30 Minutes

Objective

To provide you with an opportunity to determine and access resources and systems to manage financial management processes within the work team.

Activity

Outline the following resources and systems, as they pertain to your organisation:

· Hardware and software
· Human, physical or financial resources
· Record keeping systems (electronic and paper-based)
· Specialist advice or support.

Why are they needed? How do you access them? Is there any current discussion within your organisation to change any of these resources? What impact will that have?

(minimum 500 words)

Activity 6

Estimated Time

30 Minutes

Objective

To provide you with an opportunity to implement processes to monitor actual expenditure and to control costs across the work team.

Activity

Access the general ledger of your organisation and choose a month to analyse – where are most of your costs coming from and are they generating a viable return? – attach general ledger for that month and your analysis, describing what processes you have used to monitor the expenditure. What processes could you implement to control costs? ( minimum 500 words)

Activity 7

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to monitor expenditure and costs on an agreed cyclical basis to identify cost variations and expenditure overruns.

Activity

Create a list of all the areas of expenditures and costs within your department/team that you typically need to monitor each year. Have these changed much over the last three years? Note the quarter for which these expenditures and costs are traditionally at their highest value. Identify areas where expenditure has exceeded the budget in the past and why. ( minimum 300 words)

Activity 8

Estimated Time

60 Minutes

Objective

To provide you with an opportunity to implement, monitor and modify contingency plans as required to maintain financial objectives.

Activity

Case Study

What processes are involved in the monitoring of a contingency plan? What processes does your organisation use? Describe your role in the implementation of the contingency plans. (Minimum 300 words)

Susie’s Sweet Shop
Susie’s Sweet Shop is a small retail shop on a busy road in the outer eastern suburbs of Melbourne. Operating since 2004, it has a commercial kitchen at the rear in which most of the sweets are produced. Some sweets are also brought in from a supplier in the UK. It is staffed by a team of 4 which includes 2 customer service staff and 2 confectionary chefs. The business is owned by Susie herself and whilst she no longer works in the store, she handles all the financial management, business planning and marketing.
Identify 3 contingencies that Susie should consider.
·
·
·
Recently her supplier in the UK has emailed her to let her know that all prices will be going up by 3% next year.
How should Susie plan for this? How should she implement her contingency plans? How will she know if her plan is successful? What modifications might be needed?

(Minimum 200 words)

Activity 9

Estimated Time

45 Minutes

Objective

To provide you with an opportunity to report on budget and expenditure in accordance with organisational protocols.

Activity

Outline the sources of data you might use for creating reports and give three examples of specific reports your organisation will create. – attach these.

Choose a month and analyse the expenditure against the budget. Describe your findings by preparing a report in line with the reporting protocols of your organisation. Use charts, graphs or tables where possible.

Activity 10

Estimated Time

20 Minutes

Objective

To provide you with an opportunity to collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team.

Activity

What financial records does your organisation keep and what methods of storage/organisation does it use?
Collect and collate data about the effectiveness of your financial management processes. What data can you use?
Consult with relevant staff to seek feedback on the effectiveness of your organisation’s financial management processes – who did you ask? What was their feedback?
Are these methods effective? How would you suggest they be improved? (minimum 300 words)

Activity 11

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes.

Activity

Outline the following terms:

· Earnings growth
· Earnings stability
· Return on equity.

How might you determine your company’s performance regarding the above? What processes could be improved? Provide a snapshot of your organisation against these three criteria. (minimum 500 words)

Activity 12

Estimated Time

25 Minutes

Objective

To provide you with an opportunity to implement and monitor agreed improvements in line with financial objectives of the work team and the organisation.

Activity

What monitoring and reporting processes does your organisation use? How do you know if the implemented changes have been successful? Describe your involvement in this process over the last 12 months, outlining how you have implemented and monitored the agreed improvements. (minimum 250 words)

Skills and Knowledge Activity

Estimated Time

90-120 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:
· Financial skills to work with and interpret budgets, ageing summaries, cash flow, petty cash, Goods and Services Tax (GST), and profit and loss statements
· Communicate with relevant people to clarify budget/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
· Reading skills
· Writing skills
· Oral communication skills
· Numeracy skills
· Navigate the world of work
· Interact with others
· Get the work done
· Describe basic accounting principles
· Identify and explain the relevant legislation and current requirements of the Australian Taxation Office, including the Goods and Services Tax (GST)
· Explain the key requirements for financial record keeping and auditing
· Describe the principles and techniques involved in managing:
· budgeting
· cash flows
· electronic spreadsheets
· GST
· ledgers and financial statements
· profit and loss statements.

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

1. As a project, for your organisation manage and monitor producing budget requirements with your team, include the following:

· Evidence of your financial skills working with budgets and financial planning, including relevant principles and techniques as per the table below

Principles and techniques

Budgeting

Cash flows

Electronic spreadsheets

GST

Ledgers and financial statements

Profit and loss statements

· The key requirements of financial record keeping and auditing, relevant legislation and current requirements of the Australian Taxation Office
· Evidence of working with and supporting your team and how you have disseminated relevant details to them
· Produce a final budget(s) and financial plan which includes recommendations and contingency plans for presenting to the appropriate senior person(s) in your organisation.

2. Present and discuss your budget(s) and financial plan with the appropriate senior person(s), with the aim of clarifying, reviewing and making recommendations for improvements to financial management processes. (Minimum 1500 words analysis)

Major Activity A

Estimated Time

60-90 Minutes

Objective

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

Activity

The attached 2014 budgeted cash flow figures from DL Services are to be used for this activity. Use the data in the income statement to complete the actual figures for DL Services for 2014. Examine the cash flows and analyse if this is sustainable for the business. Calculate the variances. Document any outstanding variances and identify possible explanations for these variances. What improvements would you make to help control these costs in 2015?

Line item

2014 Budget $

2014 Actuals $

% Variance

Cash sales

230000

Payments from debtors

250000

Interest received

2100

Payments to creditors

-140000

Salaries

-23000

Interest paid

-4100

Operating expenses

-22000

Proceeds from sale of assets

0

Purchase of vehicle

0

Purchase of shares

-17000

Proceeds from call on shares

12000

Loan from Commonwealth Bank

0

Repayments of loan

-14000

Payment of dividends

-16000

Collected GST

16200

GST Paid

-18400

GST settlement paid to ATO

-2200

Net change in cash

Income Statement 2014

Line item

Debit $

Credit $

Cash sales

21000

Payments from debtors

215000

Interest received

2350

Payments to creditors

132000

Salaries

29700

Interest paid

6200

Operating expenses

37000

Proceeds from sale of assets

18200

Purchase of vehicle

37000

Purchase of shares

17000

Proceeds from call on shares

9000

Loan from Commonwealth Bank

150000

Repayments of loan

14000

Payment of dividends

37000

Collected GST

16000

GST Paid

14000

GST settlement paid to ATO

2000

Net change in cash

Is the cash source in 2014 sustainable? Explain your reasons.

What correct measures would you implement for 2015?

Who could you speak to within the organization to clarify the budget and financial plans? Who might you need to negotiate with?

What would be the key steps involved in implementing these corrective actions? Who would you communicate this to?

What resources and systems would you use and how could you access these?

What data would you analyse to see if your changes were effective? Where would you get this data? Mention key personnel and reports you could use.

What contingencies should be considered for 2015?

Major Activity B

Estimated Time

60-90 Minutes

Objective

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

Activity

This is a major activity 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 financial management approaches
2. Implement financial management approaches
3. Monitor and control finances
4. Review and evaluate financial management processes

1. Create a draft contingency plan for your financial management system.

2. Communicate to your team members the relevant details of current budget/financial plans for carrying out work tasks. If you need to negotiate further changes to the budget/plans, ensure this is done with the relevant person(s)? How would you support your team to perform their financial roles?

3. For your organisation’s financial planning requirements produce the following:

· A flow chart to show how you review and evaluate financial management processes
· A mind map to outline the planning approaches for financial management.

4. Provide information and evidence of monitoring processes that you use at your place or work, to ensure finances and budget are meeting their targets?
(Minimum 2000 words of analysis)

MSA Training and Professional Development Phone: 03 9905 3180
Room 159, 21 Chancellors Walk Website: msatraining.edu.au
Monash University Clayton, Vic 3800
BSBFIM501 Manage budgets and financial plans V3.2 27.05.20