Projects and Budgets in Community Services - Assessment 1

Student Name:IVAN OSAZENOMWAN-OBANOR
Student ID: E0667164
32514/01 –Knowledge Test - Short Answer Questions
E1141
CHC52015 Diploma of
Community Services
Module 8: Projects and
Budgets
This is assessment 1 of 2.
1. Background/Overview
As a community services team leader or manager, you will be
required to develop a good understanding of managing the financial
resources and processes of the organisation, as well as knowing
how to manage projects effectively.
Your role will be responsible for ensuring that the finances of the
organisation are managed in such a way as to be effective, efficient
and in compliance with all legislation.
2. Brief
The tasks in this assessment will focus on the content of Topics 8.1
and 8.2 in relation to finances, and include the following:
● Providing definitions for financial concepts
● Research into financial statements of a community
organisation and what they mean
● Practical worked examples of a quarterly budget review and
action needing to be taken to ensure the budget remains on
track.
Your second assessment will focus on developing a project plan and
demonstrating how you would manage the project.
Deliverables
Please submit this assessment
in Word doc format.
To do list:
1. Write your nameand
student ID at the top of this
page.
2. Read the
background/overview and
brief sections of this
document.
3. Complete the 3parts.
4. Collate your written
answers into one Word
document.
5. Save the Word document
using the naming
convention: your student
number_assessment
number.doc. For example:
“12345678_31135_01.doc.”
6. Upload your document in
Open Space using the
relevant Assessment
Upload link in this Module.
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3. Questions/Task
Part 1
1. Complete the table below by providing a definition for the term and explaining its importance
to the financial management of the organisatio (Megginson and Wei 2014)
Term
Definition
(Approximately 25
words)
Importance for financial
management
(Approximately 25 words)
Budgeting
It is the procedures fir
creating plan to spend the
money
It helps in determing whether the
company has sufficient amount to
fulfil the task needs to be
performed
Cash flows
It states the amont of cash
inflow and outflow in the
business
It helps in determing whether the
company has sufficient amount of
cash to meet the expenses
Electronic spreadsheets
It is the software that helps
in making calculations,
graphs and charts
Iyt improves productivity through
reducing manual labour work
Ledgers
Transactions associated to
particular individual or
particular account gropu are
organised into ledger
It offers complete record for the
financial transactions over the life
of company
Financial statements
It is prepared to record the
financial information over a
specific period of time
It provides information regarding
the financial performance and
financial position of the company
Profit and loss statements
It is the statement that
provides details regarding
the income and expenses of
the company
It gives the idea regarding where
the incomes are coming from and
where the expenses are incurred
Ageing summaries
It is the important tool that
provides details regarding
the debtors and amounts
due from them
It gives an idea of receivable, time
left to receive the amount and the
debtors from whom the amount is
overdue
Petty Cash
It is the accessible money
store maintained by the
company to make expenses
on small items
It enables the company to know
exactly how much miney is left to
meet the small expenses
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2. Identify two accounting principles and explain how they impact on your financial management
processes (Approximately 25-50 words each). We have provided an example in the first row.
Accounting Principle Impact on your financial management
process
E.g. Consistency Principle
Once you adopt an approach for consistency
you should continue to use it. If you use cash
accrual you should continue to be cash
accrual each year.
1.Matching principle
It requires using the accrual accounting method.
As per this principle expenses shall b ematched
with the revenues
2.Revenue recognition principle
It requires using the cash accounting method.
Under this the revenues are immediately
recognised after the sales of the product or
performance of services
3. Locate an annual financial report for a community organisation. Most organisations include
financial statements/reports in their annual report. These may be located on an organisation’s
website.
Answer the following questions in relation to the annual report you have chosen:
a) Provide the organisation’s name:
National council of Churches – Act for peace
b) Provide the URL for financial report:
https://www.actforpeace.org.au/
c) Identify what financial information the report offers – describe the contents of the report
and explain what it tells you about the financial activities of the organisation (50 to 100
words).
Contents –
 MESSAGE from the Executive Director + Chairperson
 About Act for Peace
 CONFRONTing INJUSTICE around the world
 Emergency response and humanitarian assistance
 Sustainable development
 Education, Advocacy and campaigns
 Learning and evaluation
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 2017 Financial report
 Auditor’s report
 Our governing body
The financial statements of the organization states the details about the revenue, expenses,
assets, liabilities, equities and cash flow of the company.
Using the same organisation identified above, examine and comment on the financial
summaries for information about the fiscal condition of the organisation. Confirm the following:
d) Did they have a deficit or surplus budget?
The organization had surplus budget
e) Was this explained in the treasurer’s report?
No it was not mentioned anywhere in the annual report of the company
Read the auditor’s report.
f) Did the auditor find the organisation complied and, if so, with what standards did they
comply? (Approximately 25-50 words)
It is complied with Australian accounting standards and Australian Charities and Not-for-profits
Commission Regulation 2013
g) What ATO record keeping requirements does the organisation need to abide by?
(Approximately 25-50 words).
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