Manage Finances: Assessment Guide for BSBFIM601

The assessment guide for BSBFIM601 Manage Finances includes two assessments: Research Questions and Case Study. The guide provides information about the assessment schedule, instructions, assessment outcomes, and reasonable adjustments. The research questions cover topics such as obligations under the Corporations Act 2001, Australian Accounting Standards, and Privacy Acts and Principles. The case study requires students to undertake budgeting, financial forecasting, and reporting for a simulated business. The guide also outlines the statutory requirements related to tax law compliance for Goods and Services Tax, Fringe Benefits Tax, and Payroll Tax.

ASSESSMENT GUIDE
Student
BSBFIM601 Manage finances

BSBFIM601 Manage finances
ASSESSMENT
BSBFIM601 Manage finances
There are two assessments for this unit:
1. Research Questions
Students are to read the questions and respond in writing with the most suitable answer. There are
six questions, all of which must be completed. Most questions require short answers although
some questions require a more detailed response. Students may use various sources of
information including workbooks, internet and other documents, but must list and reference their
sources. Suggested sources and websites are provided.
You need to advise students when this is due. Model answers and a record sheet are provided.
2. Case Study
For this assessment students are to undertake budgeting, financial forecasting and reporting and
to allocate and manage resources to achieve the required outputs for a simulated business.
The case study is in two stages each with 2 parts. Students must complete them all.
 Stage One: – based on the given financial information about the simulated business, students
are to prepare a number of budgets and then using appropriate formulae, to analyse financial
data to assess and manage risk and identify discrepancies.
 Stage One – requires students to analyse discrepancies and produce a report in which they
account for variations. They are then required to participate in a role play, with you, acting in
the role of company CEO in which they discuss the variances and make financial
recommendations in relation to the company’s financial situation.
Instructions and roles for the role play are provided.
You need to advise students when this is due. A marking guide and record sheet are provided. A
model budget and Sample report and ratios are provided in the Appendices.
Students will need access and are expected to use suitable financial management software
Assessment Schedule
Assessment Due Date
1. Research Questions
2. Case Study:
 Stage One
 Stage Two
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INFORMATION FOR STUDENTS
General Assessment Information
This information is designed to provide you with a full overview of the tasks you need to
successfully complete to be deemed competent in this unit.
You must achieve a satisfactory performance in each of the assessment tasks in order to be
deemed competent in the relevant unit. Where necessary, the assessment tasks are divided into
parts or steps. These are designed to take you through a step by step approach to completing the
activities.
Instructions
First and foremost, please contact your assessor to discuss any necessary adjustments that may
need to be made prior to completing these tasks. The instructions for each of the assessment
tasks are logically sequenced. If you have any questions, contact your assessor immediately. If
there is a practical component to your assessment, you will need to discuss the arrangements for
its completion with your assessor in advance.
Assessment Cover Sheet
Once you have completed all of the tasks, complete the Assessment Cover Sheet, sign the
declaration and forward along with your documentation to your assessor. It should be uploaded
along with the assessment on to the RTO manager.
Submitting Assessment Tasks
All written assessment tasks must be typed and submitted with the provided cover sheet.
Your trainer/assessor will tell you when assessments are due. It is your responsibility to ensure
that assessment tasks are submitted on or before their due date.
Extensions for individual assessment tasks may be negotiated with your trainer in specific
circumstances. You must request this prior to the due date, and extensions due to illness will
require a medical certificate. Extensions will be confirmed by your trainer/assessor.
Where assessment tasks are submitted following the conclusion of the unit of competency without
a medical certificate or extension, a late submission fee for each assessment task will be charged.
Assessment Outcomes
There are two outcomes of assessment tasks: S = Satisfactory and NS = Not Satisfactory (requires
more training and experience).
You will be awarded C = Competent on completion of the unit when you have achieved S for all
completed assessment tasks and by meeting all the performance criteria. If you fail to meet this
requirement, you will receive the result NYC = Not Yet Competent and will be eligible to be re-
assessed according to George Brown College policy.
If you are deemed Not Competent by your assessor and require re-assessment, you will be
informed of the process. A fee may be charged according to George Brown College policy.
If all assessment tasks are not completed for a qualification, a certificate will not be awarded. A
Statement of Attainment for completed units of competency will be provided.
Your Results
Your assessor is committed to providing you with detailed feedback on the outcomes of the
assessment and will provide guidance on areas for improvement. In most instances, you should
only need to complete the sections of the assessment that were deemed not satisfactory.
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BSBFIM601 Manage finances
However, it is important to remember that depending on the task, it may be necessary to repeat the
whole task (for example presentations or the delivery of a training session).
You are entitled to view your results at any time by viewing them once they are uploaded on
RTOManager.
Reasonable Adjustment
George Brown College supports individual differences in the learning environment and provides
‘reasonable adjustment’ in training and assessment activities to support every learner. If you have
any special needs that make it difficult for you to complete your learning or assessments, you
should discuss this with your assessor beforehand and will be provided with reasonable
alternatives to assist you to complete the required tasks such as completing tests verbally or using
an interpreter.
What happens if you do not agree with the assessment result?
If you do not think the assessment process is valid, or disagree with the decision once it is made,
or believe that you have been treated unfairly, you can appeal. The first step is to discuss the
matter with your trainer.
If you still do not agree with the results, refer to the GBC Complaints and Appeals Policy and speak
to the Student Services Team.
Support
While we may not be in a position to assist you with language training or specific LLN training, our
assessors will work with you to ensure that you are supported throughout your qualification. If you
require individual tutoring this may attract an additional fee (see Student Handbook). Support may
be offered by your assessor, or for more specialist support you may need to contact GBC
administration.
A Note on Plagiarism and Referencing
Plagiarism is a form of theft where the work, ideas, inventions etc. of other people are presented as
your own. Information, ideas etc. quoted or paraphrased from another source such as the Internet,
must be acknowledged with “quotation marks” around the relevant words/sentences or ideas and
the source listed in brackets. You must also list the sources at the end of your assessment.
Sources of information, ideas etc. must be provided in alphabetical order by author’s surname
(including author’s full name, name of document/ book / internet etc. and year and place of
publishing) or may be included in brackets in the text.
As a general rule it is advisable to never copy another person’s work. Should it appear that a
student’s work has been copied or does not appear to be authentic, you will be asked to speak to
your Course Coordinator and required to re-submit it. A fee may be charged according to George
Brown College policy.
Contacting the RTO
If you should need further support or assistance please do not hesitate to contact The Student
Services Team.
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BSBFIM601 Manage finances
ASSESSMENT
BSBFIM601 Manage finances
There are two assessments for this unit:
1. Research Questions
For this assessment, you are to read the questions and respond in writing with the most suitable
answer. There are six questions, all of which must be completed. Most questions require short
answers although some questions require a more detailed response. You may use various sources
of information including workbooks, internet and other documents, but must list and reference their
sources. Suggested resources and websites are provided.
Your assessor will advise you when this is due.
2. Case Study
For this assessment you are to undertake budgeting, financial forecasting and reporting and to
allocate and manage resources to achieve the required outputs for a simulated business.
The case study is in two stages each with 2 parts. You must complete them all.
 Stage One: – based on the given financial information about the simulated business, you are
to prepare a number of budgets and then using appropriate formulae, to analyse financial data
to assess and manage risk and identify discrepancies.
 Stage One – requires you to analyse discrepancies and produce a report in which you account
for variations. You are then required to participate in a role play, with the assessor, acting in the
role of company CEO, in which you discuss the variances and make financial
recommendations in relation to the company’s financial situation.
Your assessor will advise when each part is due.
You will need access and are expected to use suitable financial management software
Assessment Schedule
Assessment Due Date
1. Research Questions
2. Case Study:
 Stage One
 Stage Two
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ASSESSMENT COVER SHEET
Student Name:
Student ID:
Contact Number:
Email:
Trainer / Assessor Name:
Qualification: BSB60915 Advanced Diploma of Management (Human
Resources
Unit of Competency: BSBFIM601 Manage finances
Assessment:
☐ Research Questions
☐ Case Study:
 Stage One
 Stage Two
Due Date: Date Submitted:
If your assessment is being submitted after the due date, please attach a copy of the written
confirmation of extension received from your assessor.
Declaration: I have read and understood the following information at the
beginning of this assessment guide (please tick):
☐ Assessment information
☐ Submitting assessments
☐ Plagiarism and referencing
I declare this assessment is my own work and where the work is
of others, I have fully referenced that material.
Name (please print) Signature Date
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BSBFIM601 Manage finances
ASSESSMENT 1: RESEARCH QUESTIONS
You are required to research and write answers to each of the following questions are topic areas.
There are six topics. You must complete them all. Indications of required length are included with
the questions.
You may use various sources of information including your workbook, internet and other
documents. Your assessor will advise when this is due. For each response you must correctly site
your source/s.
Question 1
List the obligations under the Corporations Act 2001 List at least six (6) obligations)
1) Section 181 of the corporation act obtrude civil obligation on directors, secretaries and other
officers to exercise their power in good faith of firm without involving self or third party interest.
2) Duty to act with care and due diligence, section 180 tells regarding the judgment of business
matter to extent they are appropriate and rational in the interest of firm.
3) Under section 183 it informs us that no director, or top-level management should use important
details to gain advantage for themselves by defrauding the company.
4) Duty to avoid unacceptable use of position in section 182, prohibits officers / employees in
gaining benefit of their status or cause detriment to entity.
5) Section 191 of corporation act requires director to disclose its personal interest in a matter that
relate to the affairs of the firm.
Under section 184, secretaries, directors or officers are obligated to penalized if they commence any
offense.
Question 2
Briefly explain the following Australian, international and local legislation and conventions that are
relevant to financial management in the organisation
(a) Australian Accounting Standards
Australian accounting standards are analogous to international financial reporting standards
which provides detailed guidelines for particular types of transactions. Moreover, publicly listed
companies need to follow this while drafting financial position, performance and cash flows.
(b) Australian Securities and Investments Commission
The ASIC regulates registered companies, financial markets, providers of credit services with
the aim to promote fair, effective and efficient exchange house. They follow the principle of
integrity, transparency, confidentiality. Moreover, Australian securities and investments
commission also issues financial licenses and keep track record of businesses that provides
such services.
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BSBFIM601 Manage finances
(c) Privacy Acts and Principles
Privacy act 1988, is a principal of Australian legislation. This includes the collection, protection, use,
store and disclosing personal information in federal public sector and private sector whenever required.
Principles of privacy act are:
1) Accountability: The resource person must be accountable to the person for any misuse of his
personal information which is shared with or transferred to other organization.
2) Identify the purpose: Member of commission should identify the reason of procuring
information from the person, what is its purpose, how it will be used, etc.
3) Obtain consent: Before acquiring any personal data from the individual the purpose must be
disclosed to them, and should take consent, Therefore, consent should not obtain by ambiguous
way or providing misleading details.
4) Be accurate: Information collected must be accurate and complete so that decisions can be made
by another organization easily.
(d) International regulations (a brief overview)
This regulation occurs at international level, exercised by foreign organisations. Moreover, aims at
preventing, reducing and controlling pollution of the marine environment from ships to a global level.
Hence, it is the body of legal rules, norms and standards that apply between sovereign states with other
legal entities.
Question 3
Research tax law compliance and outline statutory requirements related to each of the following:
Tax Requirements
(a) Goods and Services Tax It is the tax which is payable by the company or the
individual on the import of goods and services and must
be registered for GST if it exceeds the threshold limit.
(b) Payroll tax Payroll tax is a self-assessed, general purpose state and
territory tax assessed on wages paid or payable by an
employer to its employees,
(c) Income tax It is the tax which is being paid on the income earned by
the individual or the business. For individual, tax is
payable when income exceeds $18200
(d) Fringe benefit tax It is the tax employers pays on the benefits paid to an
employee in addition to their salary and wages.
(e) PAYG withholding payable When payment is made to employees, contractors or the
other businesses, there is a need to withhold an amount
from the payment and send it to the ATO which is called
PAYG withholding and it prevents workers from having a
large amount of tax to pay at year end.
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BSBFIM601 Manage finances
(f) Company tax It is the tax amount which the companies are required to
pay on the income earned by the business. The current
company tax rate is 30%.
Question 4
Describe the “principles of accounting” and financial systems.
1) Revenue recognition principle: The company follows accrual basis of accounting. Therefore,
revenue is recognised in the period when goods or services are provided and not when cash is
received.
2) Cost principle: It states that entities assets are recorded in the books of accounts at the price it is
acquired and not on the resell cost.
3) Matching principle: In this the expenses and revenues of companies need to be matched within
same accounting year to derived accurate profit of that period.
4) Objectivity principle: The accounting is done on the basis of assumptions and concepts so in this
case company always states verifiable data in its financial books. Further, they ignore subjective
details even if it seems to be important.
Question 5
Describe the requirements and implications of “financial probity”.
Requirements and implications of financial probity:
 The company must comes with the tender that is true and fair by following the proper code of
conduct which will not harm the environment.
 Tender participants must be treated equally by the procurement agencies. They ought to have
same information as all contenders are having.
 Agencies must have to keep the competitors safely without the purpose embezzling them.
 Procurement institutions must be accountable to all partakers involve in the business and should
provide some access towards their rights.
 Tender participant and agency must move on parallel basis, they both need to disclose every
material details that is necessary for selection process and take decision.
Question 6
Recommend commercially available software that is suitable for financial management.
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The best available software for financial management are mentioned below:
 Quick books: This software aids the small and medium enterprises accountants with the bank
reconciliation, invoices, payroll, tracking record and advanced reporting. Moreover, it's a
powerful feature for the entities who deal in high volume of manufacturing or retail sector.
 Zoho finance plus: Zoho software helps the employees working in back office operations like
accounts department, finance department, inventory handling department, etc. Therefore, this
application acts as a backbone for systematic arrangement of all crucial business related data.
 Oracle financials cloud: It is an enterprise resource planning system accessed on the cloud.
Moreover, this is good for the organisation who looks towards controllability with scalability, they
are the comprehensive and integrated ecosystem of finance tools.
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BSBFIM601 Manage finances
Suggested Resources:
Manage finance – BSBFIM601, 2015, 1st Edition, Version 1, Innovation and Business Industry Skills
Council Ltd Australia, East Melbourne, VIC, Australia
 Australian Taxation Office viewed November 2017
https://www.ato.gov.au/
 Policy and legislation, Australian Government, Department of finance, viewed
November2017
https://finance.gov.au/policy-legislation.html
 Federal register of legislation, Corporations Act 2001- C2017C00328, In force-
latest version,
Australian Government, viewed November 2017
https://www.legislation.gov.au/Details/C2017C00328
 Budget 2017-18 Viewed November 2017
http://www.budget.gov.au/
 Budget, budgeting and variance analysis, Building the business case analysis,
viewed November 2017
https://www.business-case-analysis.com/budget.html
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BSBFIM601 Manage finances
ASSESSMENT 2: CASE STUDY – STAGE ONE
Overview
For this assessment you are to demonstrate that you have the skills and knowledge to:
 Plan for financial management
 establish budgets and allocate funds
This assessment is the first of two stages in this case study, each of which has several parts. You
must complete them all.
For this stage you are to read the business scenario and complete the tasks or answer the
questions.
There are two parts to this assessment. You must complete them both.
Tasks:
Part A
Read and analyse the case study information that follows and complete the tasks or answer the
questions.
Make sure you analyse the business plan summary, and the previous year’s financial data.
Now complete the following.
1. Develop a:
(a) Sales Budget,
(b) Profit Budget,
(c) Cash Flow Budget
(d) Debtor Ageing Summary
Instructions:
 You must use electronic spreadsheets, for example MS Excel, and each budget must be in
a separate worksheet
 Each budget must be divided into quarterly periods
 Make sure that you use the previous year’s financial data to determine allocations for
resources.
 Ensure each budget you prepare complies with the organisational and policies and
procedures as provided.
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SALES BUDGET
Sales
Budget 2017/18 Quarter 1 Quarter 2 Quarter 3 Quarter 4
BUDGET Total Budget 20% 24% 26% 30%
Total Sales 1,69,71,237 33,94,247 40,73,097 44,12,522 5,09,13,721
Bathroom
fittings 30% 50,91,371 10,18,274 12,21,929 13,23,756 15,27,411
Bedroom
fittings 25% 42,42,371 8,42,562 10,18,274 11,03,130 12,72,843
Mirrors 15% 25,45,685 5,09,137 6,10,965 6,61,878 7,63,706
Decorative
items 10% 16,97,124 3,39,425 4,07,310 4,41,252 5,09,137
Lighting
Fixtures
20% 33,94,247 6,78,849 8,14,619 8,82,504 10,18,274
PROFIT BUDGET
Profit Budget 2017/18 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue 8% 20% 24% 26% 30%
Sales 1,69,71,23
7 33,94,247 40,73,097 44,12,522 50,91,371
- Cost of goods
sold 96,73,605 19,34,721 23,21,665 25,15,137 29,02,081
Gross profit 72,97,632 14,59,526 17,51,526 18,97,384 2,18,290
Gross profit % 43% 43% 43% 43%
Expenses
- Accounting
Fees 10,000 2,500 2,500 2,500 2,500
- Interest
Expense 84,508 21,127 21,127 21,127 21,127
- Bank charge 1,600 400 400 400 400
- Depreciation 1,70,000 42,500 42,500 42,500 42,500
-Insurance 13,390 3,348 3,348 3,348 3,348
- Store supplies 3,749 750 900 975 1,125
- Advertising 3,50,000 2,00,000 50,000 50,000 50,000
- Cleaning 16,282 3,256 3,908 4,233 4,885
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BSBFIM601 Manage finances
Repairs &
Maintenance 64,272 16,068 16,068 16,068 16,068
- Rent 26,40,508 6,60,127 6,60,127 6,60,127 6,60,127
-Telephone 14,997 2,997 3,599 3,899 4,499
-Electricity
expense 26,780 5,356 6,427 6,963 8,034
-Luxury Car Tax 12,000 12,000
-Fringe Benefit
Tax 28,000 7,000 7,000 7,000 7,000
-
Superannuation 1,87,020 37,404 44,885 48,625 56,106
-Wages &
salaries 20,78,000 4,15,600 4,98,720 5,40,280 6,23,400
-Payroll Tax 98,705 19,741 23,689 25,663 29,612
-Workers'
compensation 41,560 8,312 9,974 10,806 12,468
Total Expenses 58,41,371 14,58,488 13,95,172 14,44,514 15,43,197
Income Tax 4,36,878 311 1,06,878 1,35,861 1,93,828
Net Profit 10,19,383 727 2,49,382 3,17,009 4,52,265
GST CASH FLOW ANALYSIS
GST 2017/18 Quarter 1 Quarter 2 Quarter 3 Quarter 4
GST Collected 16,97,124 3,39,425 4,07,310 4,41,252 5,09,137
Less GST
Paid 1,22,81,358 2,82,913 3,06,854 3,26,325 3,65,267
GST Payable 4,15,765 56,512 1,00,456 1,14,927 1,43,870
AGED DEBTORS BUDGET
AGED
DEBETORS
BUDGET
TOTAL Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales 1,69,71,23
7 33,94,247 40,73,097 44,12,522 50,91,371
% Debtors Sales 20% 20% 20% 20%
Total Debtors 100% 6,78,849 8,14,619 8,82,504 10,18,274
Current 84% 5,70,234 6,84,280 7,41,304 8,55,350
30 Days 10% 67,885 81,462 88,250 1,01,827
60 Days 5% 33,942 40,731 44,125 50,914
90 Days 1% 6,788 8,146 8,825 10,183
2. Now provide written responses under the following headings:
(a) Previous year’s profits and losses
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BSBFIM601 Manage finances
Identify the reasons for the previous year’s profits and losses.
The previous years incurred profits and the reason behind the rise in profit is because of the rise
in the customer base and also the business is built upon the high quality after sales service. The
store supplies, cleanings, payroll tax, electricity expenses and the other expenses have relatively
resulted into decline in profits while other expenses have remained the same.
(b) Financial management approaches
Comment on the effectiveness of existing financial management approaches
The stated expenses have risen due to the inflation and thus, the profits had been derived from
the prior years are the results of the outcome of the right and accurate control. Thus, there were
no losses and for the future years, it is important to have more strict control over the business
expenses. Along with this, it is crucial to be able to effectively handling the money and
understanding how and where to spend.
(c) Budget assumptions
What assumptions did you make in creating the budgets?
In developing budgets, inflation is taken to be 4% each year and all the costs have seen this
increase and along with that, the extra business-related expenses and taxes such as the
bathroom and bedroom fittings and the mirrors and the decorative items in addition to the
lighting fixtures. The main aspect for meeting higher profits is the high quality after sales service
which assists in establishing a strong customer base which assisted in generating loyalty sales.
It has been assumed that the sales will grow at the same rate 2017-18 as 2016-17 and the rate
of inflation will be 4% annually with the gross profit expected to reduce by 1%. Apart from this,
there is increase in the budget for advertising by $70,000 over the 2016-17 outcome. $200,000
was planned for the 1st quarter with the balance to be apportioned equally in the other quarters.
There is rise in wages and salaries by $172,500 over the 2016-17 amounts and the accounting
fees is the fixed amount of $10,000.
(d) Implementation and monitoring of budget
What relevant thoughts do you have regarding the implementation and monitoring of budget
expenditure?
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BSBFIM601 Manage finances
Determining the ways in which the assumptions can be implemented effectively which will help
in ensuring that budgets are prepared as per the business requirements. Along with this,
determining the time period in which monitoring of the budget should be carried out.
Budget Evaluation/Audit-
Major Activities:
 Physical assessment to determine value for money,
 Prevent or reduce the impact of frauds and losses
 Determine compliance or violations of financial rules and procedures.
Part B
Based on the information provided in the case study answer the following questions in the space
provided below: You must read and analyse the information in the case study on page 12
1. Identify the current statutory requirements for tax compliance and list and calculate the
tax liabilities for Habitania Pty Ltd under taxation legislation.
Income Tax: This is the amount which every business organization and individuals are
required to pay on its income of the year.
GST: It is paid by the business which provides goods and services.
Superannuation: This tax is paid by the organization on the behalf of the employee and itis
calculated by the organization's payroll system.
Company tax: It is the tax which is being paid by the company on the assessable income and
the tax rate is 30% of the income.
Following are the calculated tax of the organization:
 Income tax: 436,878
 Payroll tax: 98,705
 Superannuation: 187,020
 Fringe Benefits Tax: 28,000
 Luxury Car Tax: 12,000
2. Identify the current compliance requirements and liabilities for this organisation under
the Corporations Act 20XX.
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BSBFIM601 Manage finances
Following are the certain essential requirements which are needed to be complied by
this organization under the Corporation Act.
 An annual return along with all the information pertaining to the company and its
activities must to submitted to the Australian Securities and Investment Commission.
 Keeping the complete information and records in order to explain reports and the
records for at least 7 years.
 The organization is required to abide by the rules and guidelines set out by ASIC for
the purpose of internal management of the company.
 The directors of the company are required to act within the set limits. In addition to
this, the directors must keep the records of minutes and resolution in writing.
 The organization should notify ASIC of the registered office along with the principle
place of business.
 It mandatory to make use of the company name and CAN on all the public
documents, business premises, cheques and the ASIC lodged documents.
 The organization is required to submit its financial statements and is required to
have their financial statements audited.
3. Review commercially available financial management software to select the most suitable
software for Habitania Pty Ltd.
Ensure you diagnose software options by comparing two commercially available software titles
against the capabilities of the existing technology for the organisation and against the prioritised
requirements, and outline the reasons that lead you to this recommendation.
MYOB:
It is a single user bookkeeping system which is mainly suitable for micro-level businesses.
It has integrated modules and the software remains up to date with ATO and along
with this, it provides fast and easy tax updates.
XERO:
It can be stated as an online accounting software pertaining to the business concerns. It
assists in identifying the real time cash flows of the business. It also offers various
other features such as invoicing and quotes, bank reconciliation and managing the
inventory records.
EXCEL:
It is a entire accounting solution in respect to the small business concerns which helps in
offering benefits like non complex accounting terms, easy management of account
book. It is not essential to have bookkeeping knowledge and skills.
Recommendation for Habitania Pty Ltd
The company should adopt and purchase XERO financial accounting software as
supports real time access to the cash flow and it remain updated all the time. Thus,
the existing accounting software must be replaced and the add-on must be made in
respect to the accounting system of the organization.
4. Explain how you can apply the following principles of accounting in developing the
budgets required for this task:
(a) matching principle
(b) account groups
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BSBFIM601 Manage finances
(c) time periods.
(a) Matching Principle: It states that the expenses should be recognized in the same period
in which the revenues related to those expenses are recognized within the financial
statements. It is essential to acknowledge that the most of the company’s planning are
made through specialists who acquires a commission. If the association has $60000 of
offers in December, then the amount of commission would be $6000 @10%.
(b) Account groups: It accounts for the summary of the accounts which is based upon the
criteria of how master records are being created and also determines the number of
intervals from which the accounts is being created from the general ledger. In creation of
the financial records, the company makes use of the past information pertaining to the
various accounts. This will result into providing more accurate and appropriate
disclosure about the accounts leading to preparing relevant reports.
(c) Time periods: It will support the organization in differentiating and obtaining the results in
different time frames. This can be further utilized for the purpose of evaluation and
decision making.
5. Explain and discuss the implications of probity when preparing and revising budgets.
Strict adherence to the code of ethics based upon the undeviating honesty mainly in
respect to monetary matters and the beyond legal needs. Implications of probity while
preparing and revising budgets are- providing accountability, maintaining integrity,
complying with the processes, avoiding the chances of misconduct, fraud and
corruption.
6. List the critical dates and initiatives that will require or generate resources for Habitania
Pty Ltd in the next financial cycle.
 Completion of debtor analysis to reduce cash tied up in outstanding debts.
 Increase in the wages and salaries by $172,500.
 Reduction of the principal loan by $100,000 on 31st December.
 Gross profit rate reduction by 1%.
 Increase in the advertising budget by $70,000.
7. List the additional items you would recommend for inclusion in the budgets for Habitania
Pty Ltd.
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BSBFIM601 Manage finances
Warehouse expenses and cleaning and maintaining expenses could be included. The
training fees should be recognized as an administrative expense for the company for
making its employees efficient and suitable for the job.
8. List the new or modified internal controls that could improve risk management for
Habitania Pty Ltd including the maintenance of audit trails.
Risk management would include internal control additions and modifications like:
 Safeguard assets - well designed internal controls protects the assets from
accidental loss or loss from fraud.
 Ensure the reliability and integrity of financial information – Internal controls ensure
that management has accurate, timely and complete information, including
accounting records, in order to plan, monitor and report business operations.
 Accomplishment of goals and objectives - Internal controls system provide a
mechanism for management to monitor the achievement of operational goals and
objectives.
Audit trail includes:
 Paperwork with all the required details must be filled and provided with which is used
as a evidence of any receipt or payment.
 Secondary control of the receipt of cash like the cash register or a second person.
9. Case study situation:
The CEO of Habitania Pty Ltd, Tom Salinas explained that he prefers to discuss the budgets with
all senior managers prior to their distribution in order to ensure a corporate view of the strategic
plans. He then meets with each group separately to answer questions and concerns about their
particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as
an electronic spreadsheet.
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BSBFIM601 Manage finances
Upon completion of the budgets you meet with Tom to provide an overview of the information
contained within the budgets, the budget notes and recommendations regarding the internal
controls to prepare him for the meetings with the senior managers. To clarify his understanding of
the information, Tom asks you a series of questions, which you are to answer orally to Tom (played
by your assessor).
Submission Requirements
You must submit:
 a completed annual budget in a single spread sheet with a separate sheet for each budget
component (Refer to instructions under Task 1)
 budget notes and question answers in a written format. (Refer to instructions under Task 1)
Assessment Criteria
Your assessor will be looking for:
 evidence you have reviewed the case study information provided by submitting an
appropriate budget with budget notes
 evidence that you understand, and can explain, the required legislative requirements of
financial management (and outline statutory requirements of ATO, GST, company tax,
PAYG) (Refer to online resources)
 evidence that you can outline compliance requirements for the Corporations Act 2001
(Refer to online resources)
 evidence that you can identify and recommend use of suitable software for financial
management
 evidence that you have clearly communicated information regarding the budget and
correctly responded to a series of questions (e.g. describe the principles of accounting and
financial systems)
 evidence that you can describe implications of financial probity
 evidence that you can outline the critical dates/initiatives that will require or generate
resources
 evidence that you have provided for additional items (as necessary and appropriate) in the
budget
 evidence that you have recommended new or modified internal controls that could improve
risk management and maintenance of audit trails
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BSBFIM601 Manage finances
 evidence that you have developed an annual budget, as appropriate
 evidence that you have developed appropriate budget notes
 evidence that you have responded appropriately to the questions presented by ‘Tom
Salinas, the CEO in the case study in this assessment task.
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BSBFIM601 Manage finances
Case study Scenario: Habitania Pty Ltd (Stage One)
You have recently been appointed as the business manager of Habitania Pty Ltd having been a
store manager for the past three years. Habitania Pty Ltd is a 15 store retail chain located in
Brisbane. Habitania is the leading homewares retailer, catering to the growing need for furnishing
new and renovated dwellings in the greater Brisbane area.
The assortment on offer of bathroom fittings, bedroom fittings, mirrors and decorative items
together with the recently added lighting fixtures has positioned Habitania as a leader in
homewares retailing in Australia. Habitania has grown over the past five years from a single store
to the current chain. Habitania prides itself on superior after sales service which has been a key
reason for the continued growth in sales and corresponding profit increases. Today Habitania
employs over 150 staff.
Habitania Pty Ltd is a proprietary limited company (ACN 37 765 234 02) registered with the
Australian Securities and Investment Commission. The registered address is with Habitania’s
solicitors (Lloyd Lawyers, 535 Queen Street, Brisbane, QLD 4000) and the principle place of
business is 505 Boundary Street Spring Hill Brisbane QLD 4000.
Computer software requirement
The current accounting information system has not adequately provided sufficient analysis of
revenue and expenditure and has made it difficult to make informed estimates of future profits.
Estimates have relied on the ‘gut feel’ of the experienced traders on the board and of the senior
managers. The board sees the need to apply more analysis to past results that they believe could
be done with the introduction of state-of-the-art computer software.
Habitania Pty Ltd wants to upgrade their existing accounting system which will manage the
company accounts more efficiently in the long run. They request that the new system you
recommend to them to be compliant with all legislative and statutory requirements for small to
medium businesses.
None of Habitania’s products are GST free however the accounting information system records the
GST collected as well as the input tax credits earned on the purchases of stock and assets. These
amounts are reported and paid in accordance with the business activity statement (BAS) schedule
determined by the Australian Tax Office.
They have 100 fulltime and 50 part-time staff, but only 10 of the staff will have or need access to
the financial system. Some staff are paid on a salary sacrifice arrangement that attracts fringe
benefits tax. The staff with access to the financial system want software that is a single purchase
with no ongoing license fees, and a plan to keep using if for the next 3–5 years, while the
organisation continues to grow. They are anticipating that within five years they will have over 250
full-time staff, and at least 20 staff will require access to the financial system by then.
The payroll system deducts withholding tax from the employees and remits this along with the
firm’s pay as you go (PAYG) instalment each quarter as reported on the firm’s business activity
statement. Income tax return for the company and its annual statement is completed by the firm’s
accountant. Taxes and fees due are paid by the due dates. Financial records are kept at
Habitania’s principle place of business.
Habitania have just upgraded their computers and have five new desktop PCs which will be used
by the finance staff. They are current (for 2017) specification machines with i5 CPUs and 4Gb
RAM each, and all have Windows 7 Professional and Norton’s 360 installed with the professional
version of Microsoft Office Small Business as well. Other staff will use their machines at various
times, so it is important that the software requires a login to access data and that data stored by
the software cannot be accessed in any other way.
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BSBFIM601 Manage finances
Corporate details
Tom Salinas, the CEO, has asked you to prepare some financial budgets for the 2017/18 financial
year as a preliminary overview of the financial year ahead. He asked you to first prepare a 12
months budget and then break it up over the four quarters. The areas he is particularly interested
in seeing is:
1. Sales budget for 2017/18 by department by quarter.
2. Profit budget (including detailed expenses) for 2017/18 by quarter.
3. The cash flow result per quarter of the GST after adjusting the GST collected by
the allowable GST tax credits.
4. The anticipated aged debtors summary at the end of each quarter.
The CEO wants to be given all the budgets except for the aged debtors budget which the
accountant and accounts receivable clerk can monitor. The CEO produced a summary of the
current business plan that covered the budget year to highlight some of the key goals, objectives
and strategies he would like incorporated into the budget.
Student Assessment Guide v 1 January 2019 Page 23 of 55
Board
members
CEO
Accounta
nt
Accounts
receivable
Accounts
payable
Stores
manager
Business
manager

BSBFIM601 Manage finances
After going through the business plan summary, the CEO gave you the previous year’s financial
reports and asked you to speak with the accountant Sarah Patel to get some of the figures and
detailed expectations for the coming year.
Student Assessment Guide v 1 January 2019 Page 24 of 55
Business plan summary
1. The anticipation that the coming financial year would maintain the same sales growth as the
growth that took place between 2013/14 to 2016/17.
2. To budget for an increase in inflation to 4% per annum and that all costs subject to inflation
should incorporate this particular increase.
3. A new car costing $97,466 including GST has been planned for in the coming period to replace
the five year old vehicle currently used by the chairman. This fuel inefficient car will attract a
luxury car tax.
4. Sales breakup over the departments is anticipated to be bathroom fittings 30%, bedroom fittings
25%, mirrors 15% and decorative items 10% together with the recently added lighting fixtures
20%.
5. Profits are to be built on securing a growing customer base which will generate loyalty sales and
become the refer other customers to the organisation. The superior after-sales service is the key
strategy to achieve this.
6. Reduction on the principle of the loan by a payment of $100,000 on the 31 December 2017 from
the profits generated by the business.
7. One objective in this plan is to manage the debtors more efficiently in the current period. This will
involve an analysis of the debtors to identify ways to reduce the amount of cash tied up in
outstanding debtors.
8. The expectation that 2017/18 would be a difficult trading year but that the budget net profit
should target the same result as achieved in the 2016/17. The strategy to achieve this in the
business plan included three key elements:
a. To reduce the expected gross profit rate by 1% on the 2016/17 result in the hope that
lower prices on the products would help maintain the sales growth even in difficult trading
conditions.
b. To increase the advertising budget by $70,000 over the 2016/17 results in the hope that
Habitania can secure a greater market share in a constricting market. $200,000 is planned
for the first quarter with the balance apportioned equally over the following three quarters.
c. To increase wages and salaries by $172,500 over the 2016/17 amounts in the hope that
allowing the existing high number of casual staff to earn commissions on sales that should
help to maintain Habitania’s sales growth.

BSBFIM601 Manage finances
You arrange a meeting with Sarah Patel, Habitania’s accountant, and she gives you the following
insight into the historical expense relationships and the current statutory compliance liabilities.
Sales and profit budget information
Sarah explained that the only budget she monitors on a day-to-day basis is the cash flow budget
and the store manager is primarily responsible for the sales budget.
These are the notes you take at the meeting:
 The overall sales for 2017/18 target set by the business plan should be apportioned across the
quarters in the same % as was achieved in 2016/17.
This was:
Qtr 1 Qtr 2 Qtr 3 Qtr 4 2010/11
3,142,822 3,771,386 4,085,668 4,714,232 15,714,108
● Cost of goods sold is the inverse of the gross profit rate determined by the business plan and
is determined by the quarterly sales budget.
● Accounting fees have been negotiated for the year at a fixed amount of $10,000 to be paid in
equal amounts each quarter.
● The interest charges on the bank loan are anticipated at a reduced amount of $84,508 due to
an agreed repayment of some of the loan principal. This is to be paid in equal amounts each
quarter.
● Bank charges are expected to be the same as 2018 and paid in equal amounts each quarter.
● Sarah has requested that a new expense (store supplies) be recognised in the new budget
that was previously included in with the cleaning expense amounts. Store supplies in the
2015/16 results was $3,500 of the cleaning expense and $3,605 of the 2016/17 result.
Cleaning expense will then be lower but identify the real labour costs involved in the cleaning
expense.
● Depreciation is expected to be the same as 2017 and allocated in equal amounts each
quarter.
● Advertising is to be apportioned to each quarter based on the business plan.
● The following expenses are expected to increase by the determined inflation rate in the
business plan summary:
○ Insurance – apportioned in equal amounts each quarter.
○ Store supplies – is calculated for to each quarter using the same % as determined by
the sales for each quarter.
○ Cleaning – is calculated for each quarter using the same % as determined by the sales
for each quarter.
○ Repairs and maintenance – apportioned in equal amounts each quarter.
○ Rent – apportioned in equal amounts each quarter.
○ Telephone – is calculated for to each quarter using the same % as determined by the
sales for each quarter.
○ Electricity – is calculated for to each quarter using the same % as determined by the
sales for each quarter.
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BSBFIM601 Manage finances
● Fringe benefits tax is expected to be the same as 2018 and paid in equal amounts each
quarter.
● Wages and salaries are calculated for each quarter using the same % as determined by the
sales for each quarter.
 The statutory requirements are:
○ superannuation is 9% of wages and salaries for each quarter
○ payroll tax is 4.75% of wages and salaries for each quarter
○ workers compensation is 2% of wages and salaries for each quarter
○ company tax is 30% of net profit before tax for each quarter.
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BSBFIM601 Manage finances
Habitania Pty Ltd
For 12 months ended
Profit & Loss Actuals 2013/14 2014/15 2015/16 2016/17
Revenue
Sales 12,474,336 13,472,315 14,550,100 15,714,108
– Cost of Goods Sold 6,860,901 7,409,773 8,002,555 8,799,900
Gross Profit 5,613,465 6,062,542 6,547,545 6,914,208
Expenses
– Accounting Fees 5,500 6,500 8,500 9,000
– Interest Expense 45,000 65,000 96,508 90,508
– Bank Charges 1,200 1,300 1,580 1,600
– Depreciation 170,000 170,000 170,000 170,000
– Insurance 12,500 12,500 12,500 12,875
– Store Supplies - - - -
– Advertising 50,000 100,000 280,000 280,000
– Cleaning 12,560 15,652 18,700 19,261
– Repairs & Maintenance 40,250 52,600 60,000 61,800
– Rent 2,465,000 2,465,000 2,465,000 2,538,950
– Telephone 9,862 12,523 14,000 14,420
– Electricity Expense 22,500 23,658 25,000 25,750
– Luxury Car Tax - - 12,400 -
– Fringe Benefits Tax 26,000 26,000 26,000 28,000
– Superannuation 148,500 160,737 166,500 171,495
– Wages & Salaries 1,649,998 1,785,965 1,850,000 1,905,500
– Payroll Tax 78,375 84,833 87,875 90,511
– Workers’ Compensation 33,000 35,719 37,000 38,110
Total Expenses 4,770,245 5,017,987 5,331,563 5,457,780
Net Profit (Before Tax) 843,220 1,044,554 1,215,982 1,456,428
Income Tax 252,966 313,366 364,795 436,928
Net Profit 590,254 731,188 851,188 1,019,499
Student Assessment Guide v 1 January 2019 Page 27 of 55
Habitania Pty Ltd Statement of Financial Position
As at 30 June 2015/16 2016/17
Assets
Current Assets
– Cash on Hand 50,000 55,000
– Cheque Account 144,842 160,314
– Deposits Paid 950,000 950,000
– Trade Debtors 850,000 975,000
– Merchandise Inventory 1,530,000 1,430,000
Total Current Assets
Fixed Assets
– Motor Vehicles at Cost 500,000 500,000
– Motor Vehicles Accum Dep (100,000) (125,000)
– Furniture & Fixtures at Cost 1,950,000 2,250,000
– Furniture & Fixtures Accum Dep (650,000) (770,000)
– Office Equip at Cost 400,000 400,000
– Office Equip Accum Dep (90,000) (115,000)
Total Fixed Assets 2,010,000 2,140,000
Total Assets 5,534,842 5,710,314
Liabilities
Current Liabilities
– MasterCard 17,800 14,860
– Trade Creditors 780,000 679,000
– GST Collected 1,455,010 1,571,411
– GST Paid (943,125) (987,626)
– Superannuation Payable 100,000 120,000
– Luxury Car Tax Payable 20,920 -
– income Tax Payable 364,795 436,928
– PAYG Withholding Payable 65,000 44,872
Total Current Liabilities 1,860,400 1,879,445
Long-Term Liabilities - -
– Bank Loans 1,608,459 1,508,459
Total Liabilities 3,468,859 3,387,904
Equity
– Owner/Shareholder’s Equity 500,000 500,000
– Retained Earnings 850,000 1,565,982
– Dividends Paid (500,000) (1,200,000)
– Current Year Earnings 1,215,982 1,456,428
Total Equity 2,065,982 2,322,410

BSBFIM601 Manage finances
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BSBFIM601 Manage finances
Internal auditor
Karl Cairns is one of the directors of the board. Karl said that as a board member they are given
the profit and cash flow budgets. He was appointed by the board to conduct an internal audit of
operations to look for weaknesses in the internal control system. His report uncovered the following
processes that he believed needed to be strengthened.
 While the overall customer base is increasing from year to year, there may be internal control
issues relating to how these new customers are secured.
● Some discounts that were being given to customers were recorded as a net amount on the
invoices and gave no indication of the discount from standard prices.
● Some cash registers in the stores were not reconciling the cash in drawer with the register
printout.
● Not all timesheet overtime amounts were being authorised by the line manager.
● Service invoices for some items of equipment were not signed or linked to a purchase order.
There was no check that the work had actually been carried out.
● Not all assets in the stores had unique codes fixed to the asset.
● There was minimal feedback lines of communication from the shop floor to head office,
particularly when an error in the budgeting report process was recognised.
● Debtor reconciliations were not done monthly and sometimes not at all.
● In busy times the cashiers that operated the registers were also asked to do their own
reconciliations and banking. Sometimes the cash was held in the store for a day or two.
● Job roles were not clearly defined so that responsibilities and liability can be identified.
● There was little rostering of duties and cash receipts were not pre-numbered.
Of particular concern to Karl was the directive given by the board to ensure that audit trails were
created and maintained. These included:
● Signing the timesheets for employees under the authority of a department manager.
● Maintenance of a numbered cash receipts book.
● Using sequenced cheques as a systematic way of evidencing all monies paid out.
● Ensuring proper coding of evidenced transactions against appropriate general ledger
account and cost centre.
● Ensuring reconciliations between company books and third party bank statements are
performed.
GST cash flow budget
Statutory requirements for GST is 10% of the recorded amounts in sales. The only capital
purchase planned for the year is the luxury car for the chairman. Those expense payments on
which 10% GST was paid include the following:
● Cost of goods sold:
○ accounting fees
○ insurance
○ store supplies
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BSBFIM601 Manage finances
○ advertising
○ cleaning
○ repairs and maintenance
○ rent
○ telephone
○ electricity expense.
The GST amount payable each quarter is the difference between the GST collected from sales and
the GST paid – format as per policy and procedures.
CASH FLOW
ANALYSIS – GST 2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
GST Collected x,xxx x,xxx x,xxx x,xxx x,xxx
Less GST Paid x,xxx x,xxx x,xxx x,xxx x,xxx
GST Payable Calculati
on
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Debtors ageing budget
The historical records show that the debtors balance at the end of each quarter is usually about
20% of the quarter’s sales. At any time in the debtors balances 1% of the total debtors is overdue
90 days and over, 5% is 60 days overdue, 10% is 30 days overdue and the balance of the total
debtors is current. The aged debtors’ budgets are only distributed to the accountant and the
accounts receivable clerk.
Student Assessment Guide v 1 January 2019 Page 30 of 55

BSBFIM601 Manage finances
Habitania Budgeting Policy and Procedures
Budget development process
The standard process for developing budgets will follow the following steps:
1. Establish the budget objective.
2. Gather prior period data.
3. Discuss prior period information and anticipated changes in the budget period with
stakeholders.
4. Research relevant external information.
5. Incorporate identified trends to determine assumptions and parameters.
6. Prepare budgets in standard formats.
7. Submit budgets for approval.
Budget objectives
Habitania prepares budgets to meet various company objectives. Budgets are prepared:
● for a specific expansion of the business activities:
○ business case to be prepared covering a cost-benefit analysis, market research report
and summary profit and investment expectations
● to outline a specific debt reduction initiative:
○ company-wide summary of profit expectations, planned debt and equity funding
arrangements, CAPEX plans summarised
● annually to cover the next financial year:
○ for the 12 month period from the beginning to the end of the financial year
○ budget to include four quarter milestones in line with seasonal trends identified from
prior year data
○ initial preparation includes a preliminary overview of the financial year ahead
○ sales budget for next year to be prepared by department by quarter
○ profit budget (including detailed expenses) for the next year to be prepared by quarter
○ cash flow effect of the GST payable per quarter to be prepared (scheduled compliance
payment date is the 21st day after the end of the quarter)
● To satisfy the statutory requirements relating to the current and short-term solvency of the
company:
○ three monthly rolling forecast of cash flows to be prepared
● To qualify the strategic plans for the next 3–5 years planning cycle:
○ profit and CAPEX budget to be prepared.
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BSBFIM601 Manage finances
Budget variances and schedules
● Key performance indicators that should be closely monitored and reported on include
variances to:
○ total sales
○ gross profit (GP) %
○ wages and salaries as a % of total sales
○ total expenses as a % of total sales
○ net profit in dollars
○ net profit as a percentage.
● Budget variances will be reported using the standard format provided in this policy and
procedures document.
● Budget variances must be completed within five working days of quarter end.
● Actual results for the month will be provided by the accounting information system.
● An analysis of the variance between the actual and the budget must include $ and %
variance.
● Report with explanations and recommendations to be complete within seven working days of
quarter end and be given to the CEO.
● Analysis and investigation of variances will include the following priority:
1. Establish the primary causes for variances to key performance indicators of total sales,
gross profit % and net profit $.
2. Establish reasons for those individual items in the variance report that represent the
greatest $ variance.
3. Establish reasons for those individual items in the variance report that represent the
greatest % variance.
● Schedules relating to compliance due dates must be prepared and monitored by the
accountant. Managers supplying information to the accountant regarding the compliance
schedule must submit it at least five working days prior to the due date deadline.
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BSBFIM601 Manage finances
Standard formats
The following formats will be used when preparing Habitania budgets and variance reports.
Sales and profit budgets
PROFIT BUDGET 2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
Revenue - % % % %
Sales x,xxx x,xxx x,xxx x,xxx x,xxx
– Cost of Goods Sold x,xxx x,xxx x,xxx x,xxx x,xxx
Gross Profit Calculatio
n
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Gross Profit % Calculatio
n
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Expenses
– Accounting Fees x,xxx x,xxx x,xxx x,xxx x,xxx
– Interest Expense x,xxx x,xxx x,xxx x,xxx x,xxx
– Bank Charges x,xxx x,xxx x,xxx x,xxx x,xxx
– Depreciation x,xxx x,xxx x,xxx x,xxx x,xxx
– Insurance x,xxx x,xxx x,xxx x,xxx x,xxx
– Store Supplies x,xxx x,xxx x,xxx x,xxx x,xxx
– Advertising x,xxx x,xxx x,xxx x,xxx x,xxx
– Cleaning x,xxx x,xxx x,xxx x,xxx x,xxx
– Repairs &
Maintenance
x,xxx x,xxx x,xxx x,xxx x,xxx
– Rent x,xxx x,xxx x,xxx x,xxx x,xxx
– Telephone x,xxx x,xxx x,xxx x,xxx x,xxx
– Electricity Expense x,xxx x,xxx x,xxx x,xxx x,xxx
– Luxury Car Tax x,xxx x,xxx x,xxx x,xxx x,xxx
– Fringe Benefits Tax x,xxx x,xxx x,xxx x,xxx x,xxx
– Superannuation x,xxx x,xxx x,xxx x,xxx x,xxx
– Wages & Salaries x,xxx x,xxx x,xxx x,xxx x,xxx
– Payroll Tax x,xxx x,xxx x,xxx x,xxx x,xxx
– Workers’
Compensation
x,xxx x,xxx x,xxx x,xxx x,xxx
Total Expenses Calculatio
n
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Net Profit (Before Calculatio Calculati Calculati Calculati Calculati
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BSBFIM601 Manage finances
Tax) n on on on on
Income Tax Calculatio
n
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Net Profit Calculatio
n
Calculati
on
Calculati
on
Calculati
on
Calculati
on
GST Cash flow budget
CASH FLOW
ANALYSIS – GST 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4
GST Collected x,xxx x,xxx x,xxx x,xxx x,xxx
Less GST Paid x,xxx x,xxx x,xxx x,xxx x,xxx
GST Payable Calculati
on
Calculati
on
Calculati
on
Calculati
on
Calculati
on
Aged debtors
AGED DEBTORS
BUDGET
TOTAL Qtr 1 Qtr 2 Qtr 3 Qtr 4
Sales x,xxx x,xxx x,xxx x,xxx x,xxx
% Debtors Sales % % % %
Total Debtors % Calculatio
n
Calculatio
n
Calculatio
n
Calculatio
n
Current % Calculatio
n
Calculatio
n
Calculatio
n
Calculatio
n
30 Days % Calculatio
n
Calculatio
n
Calculatio
n
Calculatio
n
60 Days % Calculatio
n
Calculatio
n
Calculatio
n
Calculatio
n
90 Days % Calculatio
n
Calculatio
n
Calculatio
n
Calculatio
n
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BSBFIM601 Manage finances
ASSESSMENT 2: CASE STUDY – STAGE ONE MARKING GUIDE & RECORD SHEET
Student’s name:
Student ID:
Assessor’s name:
Date of assessment:
Unit of competency: BSBFIM601 Manage finances
Did the student satisfactorily overall: Yes No Comments
Part A:
Submit
 a completed annual budget?
 answers to all research questions?
 all budget notes in a written format?
Clearly communicate the information within the
budget/s
Part B:
and correctly answer questions related to case
study, as follows:
1. Identify the current statutory requirements for tax
compliance and list and calculate the tax liabilities
for Habitania Pty Ltd under taxation legislation.
2. Identify the current compliance requirements
and liabilities for this organisation under the
Corporations Act 20XX.
3. Review commercially available financial
management software to select the most suitable
software for Habitania Pty Ltd.
4. Explain how you can apply the following
principles of accounting in developing the budgets
required for this task:
(a) matching principle
(b) account groups
(c) time periods.
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BSBFIM601 Manage finances
Did the student satisfactorily overall: Yes No Comments
5. Explain and discuss the implications of probity
when preparing and revising budgets.
6. List the critical dates and initiatives that will
require or generate resources for Habitania Pty Ltd
in the next financial cycle.
7. List the additional items you would recommend
for inclusion in the budgets for Habitania Pty Ltd.
8. List the new or modified internal controls that
could improve risk management for Habitania Pty
Ltd including the maintenance of audit trails.
Respond orally to questions asked by assessor
related to case study scenario:
 Question 1
 Question 2
 Question 3?
Communicate effectively with other people
including:
 Ensuring client is clear about budgets
 Identifying and prioritising significant
issues?
Submit all materials (identified above) within the
agreed timeframe?
Explain financial decisions and outcomes clearly
and use listening and questioning techniques to
exchange information and obtain agreement?
Feedback to student:
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BSBFIM601 Manage finances
Student’s overall performance is: ☐ Satisfactory ☐ Not Satisfactory
Is re-assessment required? ☐ Yes ☐ No
Assessor’s signature: Date:
Student’s signature: Date:
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ASSESSMENT 2: CASE STUDY – STAGE TWO
Overview
For this assessment you are to demonstrate that you have the skills and knowledge to:
 Monitor the implementation of a budget
 Report on the variances, trends and performance
 Provide recommendations for ongoing financial viability
For this assessment, using the case study information, you will:
 Present your analysis and project plan to management for approval
There are two parts. You must complete them both.
Tasks
Part A
Study the Case Study Scenario on the following pages.
To complete this task, you will need to:
1. Undertake a cost–benefit analysis for high-priority change requirements
2. Undertake a risk analysis, identify barriers, and develop mitigation strategies
3. Develop a change management project plan, assign resources and develop a reporting process.
You will then:
4. Submit a complete “actual to budget” variance report in relation to organisational requirements
5. Submit a completed debtor ageing ratio for required periods
6. Submit a report detailing significant issues, reasons for variances, performance and
recommendations
7. Research and provide responses under the following headings:
 Implications of financial probity
 Implications of principles of accounting
 Recommendations for ongoing financial viability
 Evaluation of financial management processes.
8. Provide recommendations for ongoing financial viability.
The following key areas can be considered for recommendations – study the Case Study:
 Review the discount policy to protect the gross profit margin.
 Reduce loans to reduce exposure to rising interest rates.
 Review salaries and wages to reduce costs and improve viability.
 Budgets should be prepared for all cost centres.
 Monitoring and reporting could be shortened to monthly.
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 Restructure loan into fixed interest rate to take out the volatility in results.
Part B
You are to undertake a role-play presentation of your Variance Report:
 Deliver a summary of findings (issues, variances, financial performance)
 Present your prioritized recommendations
1. Read the case study.
2. Develop a variance report based on the format and template provided by Habitania.
Variance report
Habitania Pty Ltd
Variances to Budget
First Quarter ended 30 September 2017
Actual Results Budget Quarter
1 Actual Quarter 1 $ Variances % Variances F or U
Sales 33,94,247 33,71,200 23,047 6% U
- Cost of Goods
Sold 19,34,721 19,55,296 20,575 1% U
Gross profit 14,59,526 14,15,904 43,622 -3% U
Gross profit % 43% 42% 1% -2% U
Expense
- Accounting
Fees 2,500 2,500 0 0% F
- Interest Expense 21,127 28,150 7,023 33% U
- Bank Charges 400 380 20 -5% F
- Depreciation 42,500 42,500 0 0% F
- Insurance 3,348 3,348 0 0% F
- Store Supplies 750 790 40 5% U
- Advertising 2,00,000 1,50,000 50,000 -25% F
- Cleaning 3,256 3,325 ó9 2% U
- Repairs &
Maintenance 16,068 16,150 82 1% U
- Rent 6,60,127 6,60,127 0 O F
- Telephone 2,997 3,100 103 3% U
- Electricity expense 5,356 5,245 111 -2% F
- Luxury Car Tax 12,000 12,000 0 0% F
- Fringe Benefit tax 7,000 7,000 0 0% F
- Superannuation 37,404 37,404 0 0% F
- Wages & 4,15,600 4,10,500 5,100 -1% F
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BSBFIM601 Manage finances
Salaries
- Payroll Tax 19,741 19,741 0 0% F
- Worker compensation 8,312 8,312 0 0% F
Total Expense 14,58,488 14,10,572 47,916 -3% F
Net Profit (Before Tax) 1,038 5,333 4,295 80% F
Income Tax 311 1,600 1289 128% U
Net profit 727 3,733 3006 300% F
3. Written report:
Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify
the following in a written report:
(a) Issues:
i. Identify, describe and prioritise significant issues that are evidenced in the
provided case study information and describe reasons or causes for these
issues. Include in this, issues of financial probity that you have identified or
considered when monitoring these budgets.
Issues Details Reason Priority
Economy
recession
The economy is
under recession
phase and thus,
sales are not
growing according
to the budget.
Slowdown in
investment
growth and
increasing
interest rates.
1
Advertising
budget
Review required A review of the
advertising
budget to allocate
additional cost
should be
prepared.
2
Rise in interest
rate
Due to recession It will have a
direct impact over
the interest
payout directly
6
Financial probity
– bonus sharing
scheme
It is linked to the
performance.
A higher profit will
lead to better
payouts from the
company.
3
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(b) Variances:
ii. Complete an actual-to-budget variance report, using the template provided in the
case study.
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Sales 33,94,247 33,71,200 23,047 6% U
- Cost of
Goods
Sold
Gross
profit 14,59,526 14,15,904 43,622 -3% U
Expense
-
Accounti
ng
Fees
-
Interest
Expense
21,127 28,150 7,023 33% U
- Bank
Charges 400 380 20 -5% F
-
Depreciat
ion
42,500 42,500 0 0% F
-
Insurance 3,348 3,348 0 0% F
- Store
Supplies 750 790 40 5% U
-
Advertisi
ng
2,00,000 1,50,000 50,000 -25% F
-
Cleaning 3,256 3,325 ó9 2% U
-
Repairs
&
Maintena
nce
16,068 16,150 82 1% U
- Rent 6,60,127 6,60,127 0 O F
-
Telephon
e
2,997 3,100 103 3% U
-
Electricit
y expense
5,356 5,245 111 -2% F
- Luxury
Car Tax 12,000 12,000 0 0% F
- Fringe
Benefit
tax
7,000 7,000 0 0% F
-
Superann
uation
37,404 37,404 0 0% F
- Wages
&
Salaries
- Payroll
Tax 19,741 19,741 0 0% F
-
Worker
compensa
tion
8,312 8,312 0 0% F
Total
Expense 14,58,488 14,10,572 47,916 -3% F
Net
Profit
(Before
Tax)
1,038 5,333 4,295 80% F
Income
Tax 311 1,600 1289 128% U
Net profit 727 3,733 3006 300% F
4,15,600 4,10,500 5,100 -1% F
U
2,500 2,500 0 0% F
19,34,721 19,55,296 20,575 1% U
Gross
profit % 43% 42% 1% -2%
Habitania Pty Ltd
Variances to Budget
First Quarter ended 30 September 2017
Actual
Results
Budget
Quarter 1
Actual
Quarter 1
$
Variance
s
%
Variance
s
F or U
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BSBFIM601 Manage finances
iii. Identify variances by comparing actual results with the established budget, and
provide reasons why these variances may have occurred.
Reasons for variances
Mainly this variance report provides a comparison between the actual
and the budgeted figures after which the difference between the two is
determined which is called as variance along with the percentage
variance of the same. It results into featuring the areas which should
have been additionally examined for development. There are different
contrasts which are among the set financial plan for the first quarter of
the Habitania and the actual of a similar time-frame. For instance, there
is a distinction of 6% in deals which negative and the 1% in cost of
merchandise sold (COGS). The distinction in the proportion of gross
profit is 1% which is not good and is also unfavourable. Alongside that,
there are things which are same in both actual and the planned figures
like the bookkeeping expenses, insurance, luxury car, payroll, worker
compensation and so on. The significant distinction is in the net profit
and the income tax. The main cause for the changes is the economic
slowdown with the ascent in the bank loan interest rate. Another factor
corresponding to this or can be the reason is the discount which is being
given for making deals.
(c) Performance:
iv. Compare financial performance of the organisation (according to financial
information provided) to industry benchmarks for this organisation in line with the
retail trade sector.
The entire retail trade industry was into recession at that time which has affected
the profitability. Concern over drop in gross profit margin, the company is having
$50000 savings pertaining to its advertisement which would result into incurring
profits.
v. Respond to the performance questions provided by the CEO, as provided by the
Board of Habitania
Financial Viability- profit on target for the first quarter which is the seasonally
slowest of the year.
Gross profit margins- yes the variance report identifies that the company was able
to maintain its gross profit margin in line with the budget.
vi. Determine a trend of the average debtor days and the impact to the cash flow of
Habitania.
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The average time for the debtors to pay accounts is increasing but there is still no
concern or impact on the cash flow as most of the debtors remain within 30 days
to pay and only 1% of debtors remain within 90 days.
(d) Recommendations:
vii. Outline your recommendations for ongoing financial viability for the organisation,
based on your assessment of the issues, reasons for variances and
organisational performance you have identified (Steps 1–3).
For the purpose of analysing the financial viability and the cash flow of the
Habitania, it is recommended to take into account, the past years of data for
determining the trends pertaining to the data in relation to this analysis which
involves the growth, stability and sustainability.
 The potential in respect to the growth and development which be
managed adequately and likewise, discount policy should be reviewed for
protecting the GP margin.
 Loan amount is required to be reduced in order to decrease the exposure
of interest rate risk.
 Salaries and wages should be reviewed for managing the budget.
viii. Include in this section your plans for a revised budget, effectively managing
contingencies and issues that have been identified in feedback and monitoring of
the budgets.
In order to effectively managing the risks and contingencies, first a provision will
or reserve will be created which can be used during the tough times. Also,
advertisement expenditure will be controlled and the amount of loan which has
been taken in order to reduce the expenses.
(e) Evaluation:
ix. Provide a summary review of the financial management processes in place for
the organisation, in light of your assessment of the issues, reasons for variances
and organisational performance you have identified. Include in this section any
recommendations you have for modifying management processes.
The overall performance of the company is not good as they are not able to get
the set profits. The results are unfavourable as they are getting minimum share of
profits. The management should make use of provisions and reserves which will
help in effectively meeting up with changing economic situations. It should adopt
appropriate strategies in order to accomplish the required sales target using right
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BSBFIM601 Manage finances
pricing policies.
4. Role Play
Prepare for and undertake a role-play presentation in which you present your report to the CEO
of the company (played by your assessor). At the end of the presentation you will be asked two
questions by Tom.
(a) Arrange a time with Tom Salinas, CEO of Habitania Pty Ltd (your assessor), to present
an oral explanation of your variance report. Ensure that your assessor has copies of or
access to documents you will be referring to.
(b) Deliver the presentation of your variance report
x. Summarise your findings (issues, variances, financial performance)
xi. Prioritise and present your recommendations.
(c) Ask for questions, either during or at the end of the presentation, to:
xii. demonstrate your oral communication skills
xiii. use questioning and listening techniques
xiv. demonstrate competent exchange of information
xv. use appropriate conventions and protocols
xvi. ensure the manager/CEO is clear about budgets
(d) Respond to these orally to the CEO (your assessor)
(e) Seek approval (or discuss as required) of your recommendations in the report.
Role Play:
Tom Salinas: Good Morning all.
Finance Manager: Good Morning, Sir.
Tom Salinas: How the company is performing as per your financial report?
Finance Manager: Sir, there are mixed outcomes as some of them are unfavourable and
favourable.
Tom Salinas: What are areas of improvements in relation to cost?
Finance Manager: Sir, because of the increase in the cost of goods sold, our revenue goes
down and which has turned into loss. We have to control the overall cost of production and have
to increase profit margin.
Tom Salinas: Any other Suggestion?
Finance Manager: It has also been observed from the above budget that despite expending
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BSBFIM601 Manage finances
huge expenditure on the sales promotion and advertisement activities the company has not
been able to achieve the desired sales which have been a result of the economic slowdown
recognized in the market. The same requires the efforts to be made in the advertisement sector
for efficient operations to be conducted. Also, the cost of goods sold needs to be controlled by
the company which has been $20575 in this quarter.
The increase in the interest rates also had a significant impact on the results of the company s it
has increased by 33% and the bank charges of the company noticed 5% decrease. The other
administrative expenses of the company including rent, electricity and other charges have been
in control and there is no need to control these expenditures.
The cash flow analysis of the company shows that the cash profits obtained by the company
which is $3006 has been high in comparison to the standard profits determined and this has
been the result of the control over the expenses. The price discounts availed by the company to
its customers should be based on the appropriate pricing policy and the objective of maximizing
profits to be achieved should be fulfilled.
The administration of the organization couldn't assess the right annual income tax obligation of
the organization. The equivalent has been low in the actual figures when contrasted with the
planned figures. Consequently, the organization needs to assess the right measure of obligation
of tax by the organization. The financial probity including bonus sharing immensely affects the
benefits of organization along with the performance audit has been performed to examine the
changes.
Submission Requirements
You must submit:
 a completed annual budget in a single spread sheet with a separate sheet for each budget
component (Refer to instructions under Task 1)
 budget notes and question answers in a written format. (Refer to instructions under Task 1)
Assessment Criteria
Your assessor will be looking for:
evidence you have reviewed the
Suggested Resources:
The following resources can be helpful to complete your research:
 Manage finances - BSBFIM601, 2015, 1st Edition, Version 1, Innovation and Business
Industry Skills Council Ltd Australia, East Melbourne, VIC, Australia
 Budget 2017-18 Viewed November 2017
http://www.budget.gov.au/
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BSBFIM601 Manage finances
 Budget, budgeting and variance analysis, Building the business case analysis, viewed
November 2017
https://www.business-case-analysis.com/budget.html
 Australian Taxation Office viewed November 2017, https://www.ato.gov.au/
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BSBFIM601 Manage finances
ROLE-PLAY – INSTRUCTIONS FOR ASSESSOR
The student will prepare for and undertake a role-play in which their Variance Report will be
presented to you, in role as CEO of Habitania, along with an oral explanation of the contents of the
report.
Preparation:
 You may nominate a time and venue in response to the student’s request for a meeting for this
purpose
 The student should arrange to make copies or access to documents available to you.
Running procedure:
 The student will give an oral presentation based on the contents of their Variance Report
covering the following:
○ a summary of their findings (issues, variances, financial performance)
○ a clear presentation of their prioritised recommendations.
 The student will ask if you have any questions. You should prepare to ask for clarification to
enable the student to:
○ demonstrate their oral communication skills
○ use questioning and listening techniques
○ demonstrate a competent exchange of information
○ use appropriate conventions and protocols
○ ensure you, as manager, are clear about budgets
 Endorse, or otherwise discuss, the requested approval of the student’s recommendations.
Planning the assessment:
 Recommended date for assessment: After the completion of Assessment Task 1.
Time required for assessment: The time required to complete this assessment task will vary
according to the skill level of the student and the depth of analysis, and should be negotiated with
students. You should allow approximately 8 – 10 minutes for each presentation.
 The student must submit:
○ a complete actual-to-budget variance report
○ a completed report detailing the issues, variances, performance, recommendations and
evaluations identified from the financial information for Habitania Pty Ltd.
Questions to ask the student:
The key questions that the Board was most interested to have answered from the budgets and the
variance reports were:
1. To what extent do the reports support the view of the board that Habitania is financially
viable?
2. Will we be able to maintain our gross profit margins in the predicted downturn?’

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Case Study: Habitania Pty Ltd
Soon after the end of the first quarter, Tom Salinas the CEO of Habitania, asked you to follow up
with Sarah Patel, Habitania’s accountant, to see how the actual results compared with the budget
you had prepared three months ago. You explained that you had a meeting with Sarah that
afternoon to get the results and that you would report back as soon as you had done some
analysis.
The key questions that the board was most interested to have answered from the budgets and the
variance reports were:
● ‘To what extent do the reports support the view of the board that Habitania is financially
viable?’
● ‘Will we be able to maintain our gross profit margins in the predicted downturn?’
Tom and you both agreed that it had been a tough quarter with the economy still in recession and
the impact this was having on the retail sector. Banks are raising interest rates in line with the
increased upward international pressure and Habitania has a significant part of their loan funds on
a variable interest rate which changes directly with market conditions. Tom was pleased that the
sales seem to be holding up reasonably well as first quarter results are generally impacted by
factors relating to public and school holidays but he was concerned about the discounts that had to
be given to generate these sales.
‘That’s going to hurt us at some point’ Tom said. ‘Just a pity we could not get into some
national magazines this quarter to promote the store offers. I’m sure that would have helped
us exceed the budgets you set. I guess we will just have to spend that advertising money in
the next quarter’ Tom said. ‘I still think we are running our wages and salaries a bit high.
The industry benchmark for wages and salaries is close to 11% of sales’
Tom went on to explain, ‘One of our contingency plans in a slowing economy is to reduce
our exposure to debt by applying our profits to the repayment of the long term debt. This will
help reduce the interest burden on the business and take some pressure off the diminishing
profits. It would also be of interest to determine the impact that our debtors has on the cash
flow of the business from 2016/17.’
You are a beneficiary of the company’s profit bonus scheme that is based on the profitability of the
company’s financial reports which you are required to prepare. You also prepare the departmental
reports that form the basis of the performance review of the managers. You are the manager of the
finance/administration and prepare this department’s report as well.
You met that afternoon with Sarah and she provided you with the following report on the actual
results for the quarter ended 30 September 2017.
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Student Assessment Guide v 1 January 2019 Page 50 of 55
Habitania Pty Ltd
Actual Results Qtr 1
Revenue
Sales 3,371,200
– Cost Of Goods Sold 1,955,296
Gross Profit 1,415,904
Gross Profit % 42%
Expenses
– Accounting Fees 2,500
– Interest Expense 28,150
– Bank Charges 380
– Depreciation 42,500
– Insurance 3,348
– Store Supplies 790
– Advertising 150,000
– Cleaning 3,325
– Repairs & Maintenance 16,150
– Rent 660,127
– Telephone 3,100
– Electricity Expense 5,245
– Luxury Car Tax 12,000
– Fringe Benefits Tax 7,000
– Superannuation 37,404
– Wages & Salaries 410,500
– Payroll Tax 19,741
– Workers’ Compensation 8,312
Total Expenses 1,410,572
Net Profit (before tax) 5,333
Income Tax 1,600
Net Profit 3,733
GST cash flow – Actual
Cash flow analysis –
GST
Qtr 1
GST Collected 337,120
Less GST Paid 279,988
GST Payable 57,132
Aged debtors – Actual
AGED DEBTORS
BUDGET Qtr 1
Sales 3,371,200
% Debtors Sales 22%
Total Debtors 741,664
Current 585,915
30 days 111,250
60 days 37,083
90 days 7,417
Total Debtors 741,664

BSBFIM601 Manage finances
Budget variance report template
According to the organisational policy and procedures, the following format is to be used when
preparing a budget variance report.
Habitania Pty Ltd
Variance to Budget
xxx Quarter ended mmm-yyyy
Actual Results
Budget-
Qx Actual-Qx
$
Variance
%
Variance
F or
U
Sales x,xxx x,xxx x,xxx x% F or
U
– Cost Of Goods Sold x,xxx x,xxx x,xxx x% F or
U
Gross Profit Calculation Calculation Calculation x% F or
U
Gross Profit % % % % x% F or
U
Expenses
– Accounting Fees x,xxx x,xxx x,xxx x% F or
U
– Interest Expense x,xxx x,xxx x,xxx x% F or
U
– Bank Charges x,xxx x,xxx x,xxx x% F or
U
– Depreciation x,xxx x,xxx x,xxx x% F or
U
– Insurance x,xxx x,xxx x,xxx x% F or
U
– Store Supplies x,xxx x,xxx x,xxx x% F or
U
– Advertising x,xxx x,xxx x,xxx x% F or
U
– Cleaning x,xxx x,xxx x,xxx x% F or
U
– Repairs &
Maintenance
x,xxx x,xxx x,xxx x% F or
U
– Rent x,xxx x,xxx x,xxx x% F or
U
– Telephone x,xxx x,xxx x,xxx x% F or
U
– Electricity Expense x,xxx x,xxx x,xxx x% F or
U
– Luxury Car Tax x,xxx x,xxx x,xxx x% F or
U
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BSBFIM601 Manage finances
– Fringe Benefits Tax x,xxx x,xxx x,xxx x% F or
U
– Superannuation x,xxx x,xxx x,xxx x% F or
U
– Wages & Salaries x,xxx x,xxx x,xxx x% F or
U
– Payroll Tax x,xxx x,xxx x,xxx x% F or
U
– Workers’
Compensation
x,xxx x,xxx x,xxx x% F or
U
Total Expenses Calculation Calculation x,xxx x% F or
U
Net Profit (Before Tax) Calculation Calculation x,xxx x% F or
U
Income Tax Calculation Calculation x,xxx x% F or
U
Net Profit Calculation Calculation x,xxx x% F or
U
Note: F = Favourable, U = Unfavourable
Debtor ageing ratio template
2015/16 2016/17 2017/18
Trade Debtors
Sales
Debtor Days
Anticipate that the trade debtors for the 2017/18 financial period maintain the same growth as that
which took place between 2015/16 to 2016/17.
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BSBFIM601 Manage finances
ASSESSMENT 2: CASE STUDY – STAGE TWO MARKING GUIDE & RECORD SHEET
Student’s name:
Student ID
Assessor’s name:
Date of observation:
Unit of competency: BSBFIM601 Manage finances
Did the student satisfactorily: Yes No Comments
Part A:
Submit:
 a completed actual-to-budget variance
report according to organisational
requirements?
 a completed debtor ageing ratio for
required periods?
 a report detailing issues, reasons for
variances, performance and
recommendations?
Submit all materials (identified above) within the
agreed timeframe?
Part B:
Provide responses for recommendations that
reflect the following?
 Review the discount policy to protect the
gross profit margin.
 Reduce loans to reduce exposure to rising
interest rates.
 Review salaries and wages to reduce costs
and improve viability.
 Revised budget to include adjustments to
the advertising budget with the $50,000
added to the next quarter.
Provide responses for evaluation that reflect the
following?
 Budgets should be prepared for all cost
centres.
 Monitoring and reporting could be
shortened to monthly.
 Restructure loan into fixed interest rate to
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BSBFIM601 Manage finances
take out the volatility in results.
Provide a report that:
 uses the formats as required by the
Habitania policy and procedures
 is clear and conforms to statutory
requirements?
Prepare for and undertake a role-play presentation
of their Variance Report?
 Arrange a time, venue, access to
documents
 Deliver a summary of findings (issues,
variances, financial performance)
 Present their prioritised recommendations?
 Ensure the manager is clear about budgets.
 Seek approval (or discuss as required) of
the recommendations in the report.
Demonstrate oral communication skills (clearly
explain financial decisions and outcomes)
 Use questioning and listening techniques
 Demonstrate a competent exchange of
information
 Use appropriate conventions and
protocols?
Respond appropriately to questions asked by
assessor related to case study scenario:
 Question 1
 Question 2?
Communicate effectively including:
 Ensuring client is clear about budgets
 Identifying and prioritising significant
issues?
Uses appropriate formulae to analyse financial
data to assess and manage risk and identify
discrepancies?
Feedback to student:
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BSBFIM601 Manage finances
Student’s overall performance is: ☐ Satisfactory ☐ Not Satisfactory
Is re-assessment required? ☐ Yes ☐ No
Assessor’s signature: Date:
Student’s signature: Date:
Student Assessment Guide v 1 January 2019 Page 55 of 55