Circulate budgets and ensure managers and supervisors

T-1.8.1_v3
Details of Assessment
Term and Year Time allowed 7 Weeks
Assessment No 1 Assessment Weighting 100%
Assessment Type Portfolio
Due Date Week 7 Room
Details of Subject
Qualification BSB61218 Advanced Diploma of Program Management
Subject Name Financial Management
Details of Unit(s) of competency
Unit Code (s) and
Names BSBFIM601 Manage finances
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work submitted is my
own and has not been copied or plagiarised from any person
or source. I acknowledge that I understand the requirements
to complete the assessment tasks. I am also aware of my
right to appeal. The feedback session schedule and
reassessment procedure were explained to me.
Student’s
Signature: ____________________
Date: _____/_____/_________
Details of Assessor
Assessor’s Name
Assessment Outcome
Assessment
Result Competent Not Yet Competent Marks /100
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
Assessor Declaration: I declare that I have conducted
a fair, valid, reliable and flexible assessment with this
student.
Student attended the feedback session.
Student did not attend the feedback session.
Assessor’s
Signature: ___________________
Date: _____/_____/________
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T-1.8.1_v3
Purpose of the Assessment
The purpose of this assessment is to assess the student in the following
learning outcomes:
Competent
(C)
Not Yet
Competent
(NYC)
1.1 Review and analyse previous financial data to establish areas which have
generated a profit or loss
1.2 Undertake research to review reasons for previous profit and loss
1.3 Review business plan to establish critical dates and initiatives that will
require or generate resources in the next financial cycle
1.4 Analyse cash flow trends
1.5 Review statutory requirements for compliance and liabilities for tax
1.6 Review existing software and its suitability for financial management
2.1 Use previous financial data to determine allocations for resources
2.2 Make informed estimates of new items for inclusion in budget
2.3 Prepare budgets in accordance with organisational requirements and
statutory requirements
3.1 Circulate budgets and ensure managers and supervisors are clear about
budgets, reporting requirements and financial delegations
3.2 Manage risks by checking there are no opportunities for misappropriation of
funds and that systems are in place to properly record all financial transactions
3.3 Review profit and loss statements, cash flows and ageing summaries
3.4 Revise budgets, as required, to deal with contingencies
3.5 Maintain audit trails to ensure accurate tracking and to identify discrepancies
between agreed and actual allocations
3.6 Ensure compliance with due diligence
4.1 Ensure structure and format of reports are clear and conform to
organisational and statutory requirements
4.2 Identify and prioritise significant issues in statements, including comparative
financial performances for review and decision making
4.3 Prepare recommendations to ensure financial viability of the organisation
4.4 Evaluate the effectiveness of financial management processes
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
Resources required for this Assessment
 Computer with relevant software applications, access to internet and weekly eLearning notes
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within two weeks of the assessment due date. All other
feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of the assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment for more information (Student Handbook).
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T-1.8.1_v3
ASSESSMENT BRIEF
In this assessment task, you will use your skills and knowledge to undertake budgeting,
financial forecasting and reporting and to allocate and manage resources to achieve the
required outputs for the business unit. You work will also include contributing to financial bids
and estimates, allocating funds, managing budgets and reporting on financial activity.
The assessment is divided into three parts and weight allocations as below:
PART A: WRITTEN REPONSES – 25%
PART B: MANAGE FINANCES PROJECT ON A SIMULATED WORK ORGANISATION – 65%
PART C: PRESENTATION OF AUSTRALIAN HARDWARE FINANCIAL ANALYSIS – 10%
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T-1.8.1_v3
PART A: WRITTEN REPONSES – 25%
Instructions: This part of the assessment comprises the knowledge testing required for the
unit BSBFIM601. This part includes 8 questions and you must respond to all. Use
the spaces below to respond to the questions. Weights and marking allocations
are in the marking allocating table.
Question 1. Planning for financial management. (2 marks)
Explain why it is necessary for all business organisations to have effective financial
management systems and explaining how the information held in financial management
systems contribute to ongoing business performance and business planning.
The financial management is considered as significant skill of managers or owners of company. A
financial management system is a method as well as software that is used by company to oversee
and regulate the income, expenditure along with assets with objective of increasing profit and
confirming sustainability. Additionally, there is great contribution of information held in financial
management system to business planning and performance. It is helpful in aligning the
corporate process. It also decreases complexity. It can say that the financial management is one of
the most significant component in business. With the help of financial management system, the
manager can plan properly and perform business effectively.
Question 2. Establishing budgets and allocated funds. (3 marks)
a) What is a Budget?
b) What data might inform a new budget?
c) How does analysis of previous financial data assist projected resource estimates
and allocations?
a.
The budget is considered as measurement of expenditures as well as revenues over the particular
upcoming period. It can see that the budget is generally assembled and re-assessed periodically. In
this way, the budget is a financial plan for specified time such as one year. It includes planned
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T-1.8.1_v3
revenues along with sales volume, resources quantities, cost, expense, liabilities, and cash flows
along with assets. It may include deficit in which expenses are more than income or budget surplus
stating cash for utilisation at the upcoming period.
b.
This is significant to weigh the benefit and cost before requiring resources. It is required to consider
crucial strategies at the time of preparing new strategies. It is essential to use past financial data to
inform the assumptions pricing, competitor, fixed cost, variable cost, analysis, new selling channels
as well as different related issues. In this way, the budget should be merged as well as compared
with others in the entity. So it is essential to consider these data to prepare new budget.
c.
The financial statement is backbone of company. The previous data of financial statement are
helpful in assisting allocation of resources. The financial statements are composed by
 Cash flow statement
 Balance sheet
 Income statement
 Value added statement
 Report on accumulated profit
 Explanatory note
 Analytical table
Question 3. Implement Budgets. (4 marks)
a) How do profit and loss statements cash flow and using aging summaries contribute
to new budgets?
b) How can you ensure that managers and supervisors in the organisation understand
the budget and understand their reporting requirements with regard to financial
management?
c) Budgets are used to identify and track discrepancies between agreed and actual
allocations. Explain.
d) How do budgets contribute to analysis of existing financial management
approaches?
a. There is great contribution of P&L and cash flow in making new budgets. The cash flow
eases preparation of new budget by providing that –
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 There is visibility of financial result
 It can state upcoming issues with future working capital.
The main drawback of cash flow is that it has lower amount of data. In addition, there is no
any particular method for the flow.
b. The functions of manager, objectives of business as well as objective reports are helpful in
maintaining the value of company. It is essentially required by supervisors and managers to
have proper understanding about the report as well as updated budgets.
c. The proper formation of budget can be ensured by –
 Develop understanding about cost reduction in some accountable areas
 Review and control finance
 Ensure avaikbikity for the investigation of particular area
 Authorise expenses
d. There is great contribution of budget in analysing the current approach of the financial
management. It can say that budget tells about finance as well as operations. It enables the
manager to utilise money in better way.
Question 4. Explain financial probity. (3 marks)
The financial probity refers to the strict obedience to the code of ethics depended on absolute
morality, particularly commercial subjects and beyond judicial needs. The requirement for financial
probity as worker or entity is discussed below -
 Officials should perform in ethical manner according to the APS Values
 Handle tender members in equal as well as fair way, and ignore rendering one tender member an
inappropriate advantages over other tender member.
 Keep secrecy of confidential data of members, including commercially sensitive data as well as
intellectual properties.
 Make sure procedure of tender, negotiation, process of assessment, as well as contract
management process is auditable, clear and responsible.
 Proactively recognise as well as handle conflict of interest whether real, prospective or apparent
properly and in accordance with needs of judicial policies, involving applicable Victorian Public
Sector code of conduct.
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