Financial Management Assessment for BSB61215 Advanced Diploma of Program Management

T-1.8.1
Details of Assessment
Term and Year 2, 2019 Time allowed 7 Weeks
Assessment No 1 Assessment Weighting 100%
Assessment Type Portfolio of
Due Date Week 7 Room TBA
Details of Subject
Qualification BSB61215 Advanced Diploma of Program Management
Subject Name Financial Management
Details of Unit(s) of competency
Unit Code (s) and
Names
BSBFIM601 Manage finances
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work
submitted is my own, and has not been
copied or plagiarised from any person or
source.
Signature: ___________________________
Date: _______/________/_______________
Details of Assessor
Assessor’s Name
Assessment Outcome
Results Competent Not Yet Competent Marks / 100
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Student Declaration: I declare that I have been
assessed in this unit, and I have been advised of my
result. I am also aware of my right to appeal and the
reassessment procedure.
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have provided
appropriate feedback
Student did not attend the feedback session.
Feedback provided on assessment.
Signature: ____________________________
Date: ____/_____/_____
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T-1.8.1
Purpose of the Assessment
The purpose of this assessment is to assess the student in the following
learning outcomes:
Competent
(C)
Not Yet
Competent
(NYC)
1.1 Review and analyse previous financial data to establish areas which have
generated a profit or loss
1.2 Undertake research to review reasons for previous profit and loss
1.3 Review business plan to establish critical dates and initiatives that will
require or generate resources in the next financial cycle
1.4 Analyse cash flow trends
1.5 Review statutory requirements for compliance and liabilities for tax
1.6 Review existing software and its suitability for financial management
2.1 Use previous financial data to determine allocations for resources
2.2 Make informed estimates of new items for inclusion in budget
2.3 Prepare budgets in accordance with organisational requirements and
statutory requirements
3.1 Circulate budgets and ensure managers and supervisors are clear about
budgets, reporting requirements and financial delegations
3.2 Manage risks by checking there are no opportunities for misappropriation of
funds and that systems are in place to properly record all financial transactions
3.3 Review profit and loss statements, cash flows and ageing summaries
3.4 Revise budgets, as required, to deal with contingencies
3.5 Maintain audit trails to ensure accurate tracking and to identify discrepancies
between agreed and actual allocations
3.6 Ensure compliance with due diligence
4.1 Ensure structure and format of reports are clear and conform to
organisational and statutory requirements
4.2 Identify and prioritise significant issues in statements, including comparative
financial performances for review and decision making
4.3 Prepare recommendations to ensure financial viability of the organisation
4.4 Evaluate the effectiveness of financial management processes
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
Resources required for this Assessment
 Computer with relevant software applications, access to internet and weekly eLearning notes
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within two weeks of the assessment due date. All other
feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of the assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment for more information (Student Handbook).
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T-1.8.1
ASSESSMENT BRIEF
In this assessment task, you will use your skills and knowledge to undertake budgeting,
financial forecasting and reporting and to allocate and manage resources to achieve the
required outputs for the business unit. You work will also include contributing to financial bids
and estimates, allocating funds, managing budgets and reporting on financial activity.
The assessment is divided into three parts and weight allocations as below:
PART A: WRITTEN REPONSES – 25%
PART B: MANAGE FINANCES PROJECT ON A SIMULATED WORK ORGANISATION – 65%
PART C: PRESENTATION OF AUSTRALIAN HARDWARE FINANCIAL ANALYSIS – 10%
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T-1.8.1
PART A: WRITTEN REPONSES – 25%
Instructions: This part of the assessment comprises the knowledge testing required for the unit
BSBFIM601. This part includes 8 questions and you must respond to all. Use the spaces below to
respond to the questions. Weights and marking allocations are in the marking allocating table.
Question 1. Planning for financial management. (2 marks)
Explain why it is necessary for all business organisations to have effective financial
management systems and explaining how the information held in financial management
systems contribute to ongoing business performance and business planning.
In any business irrespective of the company’s business and industry it is woring in the financial
management of the company helps the company effectively in the activities of the business conducted
by the business. The appropriate tool can be used for the effectively manage the financial
transactions of the company. While conducting the business the company gain revenue and made
some expenses which is also look after by the financial managers. One of the major reasons due to
which the company’s financial management team is so important is that the financial management
team takes necessary decisions after applying different tools. The liquidity position of the business is
also look after by the financial management team by looking into the cash inflow and outflow of the
company.The financial management of the company is the one who provides the information about
the finance related and also the amount of capital required by the company in that time period. It is the
financial management team of the company who provides advice to the management of the company
where the company should invest the fund of the company and how much beneficial it will be proved
for the company. The management of the company mostly relies on the financial management team
for the reduction in the cost level for the company so that the company can gain a considerable
amount of profit and alo it can enhance it.
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T-1.8.1
Question 2. Establishing budgets and allocated funds. (3 marks)
a) What is a Budget?
b) What data might inform a new budget?
c) How does analysis of previous financial data assist projected resource estimates and
allocations?
a. Budgeting can be explained as the financial plan formulated by the finance manager and
management of the company to estimate the income and expense which will be incurred by
the company in near future. In a way it is a forecasting of the financial statements of the
company depending on the income and expense structure of the company. It is generally
created for 1 year by analysing the current financial structure, projects in hand, market
surveys and also analysing the movement of the shareholders of the company. The motive
behind such forecasting so that it becomes easier for the management of the company to
take decision which might become fruitful.
b. The budgeting is done after analysing the income and expense statement of the company
which is provided with full authentication. The estimates mainly depend on the trends of the
business and also the trends in which the industry is behaving. The new forecasting
effectively shows the capability of the company to earn profit in the near future which help the
management of the company in the decision making process.
c. The management of the company first analyse the financial statement of the company of the
previous year where the main focus is given on the cash flow statement, income statement
and the balance sheet of the company. The reason behind the preparation of the budget is for
controlling and planning made for the activities of the business conducted by the company. It
sets the target and following which the employees of the company achieve the dedicated goal
irrespective of the department and posts in the company.
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T-1.8.1
Question 3. Implement Budgets. (4 marks)
a) How do profit and loss statements cash flow and using aging summaries contribute to
new budgets?
b) How can you ensure that managers and supervisors in the organisation understand
the budget and understand their reporting requirements with regard to financial
management?
c) Budgets are used to identify and track discrepancies between agreed and actual
allocations. Explain.
d) How do budgets contribute to analysis of existing financial management approaches?
a. The profit and loss statement of the financial statement of the company states the income and
expense structure made by the company in a period. The profit which is a primary motive for
every profit organisations in the world shows the appropriate calculation of the profit. The
budget for the debtors can be estimated for the credit sales of the company and it also affects
the revenue structure of the company which is basically generated by the management of the
company.
b. The budget which is generated by the management of the company needs to involve
everyone who is associated with the business of the company so that the required goal can
be reached in the time period. The budget is also be successful in reality if is explained and
well communicated in the business of the company. The best way to communicate the budget
among the business is to conduct a business and explained it to every head of the
department so that they can convey it to their peer. The management can send the budget by
using any formal way and asks for clarification in the case of any kind of issue.
c. The budgeting process used by the management of the company also uses for controlling the
activities of the business. It also look after any certain rising of variances which disrupt the
wavelength of everyday activities of the business. The management of the company also
tends to take some corrective action if some situation arises as mentioned above.
d. The process of budgeting includes the forecasting of the financial document which includes
the income and expense which the company may fetch and incur in near future. This
Analysis helps the management of the company to take corrective actions in terms of utilising
the capital of the company. It can be stated that budgeting helps the management of the
company to take decision and take actions so that the company can generate desirable
income and also can lessened the expenses of the company. In short it can be state that the
company can reach the desirable position in future with the help of the budgeting or
forecasting.
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