BSBFIM501 Manage Budgets and Financial Plans: Student Assessment Tasks

This document contains a student's comprehensive response to the assessment tasks for the BSBFIM501 unit, focusing on managing budgets and financial plans. The assessment includes various tasks such as answering written questions on accounting principles, GST, taxation, and superannuation obligations. Additionally, the student undertakes a budget planning project, a project to monitor and control finances, a profit and loss analysis project, and a debtor management project, demonstrating their understanding of financial management processes. The assessment covers a wide range of topics, including double-entry bookkeeping, cash and accrual accounting, and GST reporting, with detailed explanations and practical application of financial concepts. The document provides a complete solution for the assessment, showcasing a strong grasp of the unit's learning objectives.

Student Assessment Tasks
BSBFIM501 Manage budgets and financial plans
1

1. Table of Contents
1.Table of Contents...................................................................................................................... 2
2.Assessment Information............................................................................................................ 3
3.Assessment Instructions............................................................................................................ 5
4.Assessment Task 1: Written Questions ....................................................................................7
5.Assessment Task 1 Instructions................................................................................................8
6.Assessment Task 1 Checklist.................................................................................................. 11
7.Assessment Task 2: Budget planning project..........................................................................13
8.Assessment Task 2 Instructions ............................................................................................. 15
9.Assessment Task 2 Checklist.................................................................................................. 18
10.Assessment Task 3: Monitor and control finances project.....................................................19
11.Assessment Task 3 Instructions ........................................................................................... 21
12.Assessment Task 3 Checklist................................................................................................ 22
13.Assessment Task 4: Profit and loss review project................................................................24
14.Assessment Task 4 Instructions ........................................................................................... 25
15.Assessment Task 4 Checklist................................................................................................ 26
16.Assessment Task 5: Debtor management project.................................................................28
17.Assessment Task 5 Instructions ........................................................................................... 30
18.Assessment Task 5 Checklist................................................................................................ 32
2

2. Assessment Information
The assessment tasks for BSBFIM501 Manage budgets and financial plans are included in this Student
Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, the student must complete all of the assessment tasks
satisfactorily.
Assessment Plan
Assessment Task Overview
1. Written questions Students must correctly answer all questions.
2. Budget planning project Students must complete a budget template and participate in
a meeting to discuss the budget. They must then present the
budget to their team.
3. Monitor and control finances project Students must review budget figures as part of a monitoring
process and report on these.
4. Profit and loss analysis project Students must review financial performance from a profit and
loss account
5. Debtor Management project Students must review and evaluate financial management
processes
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for
clarification if you have any questions at all.
When you have read and understood this unit’s assessment tasks, print out the Student Assessment
Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.
Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your Alpha
Institute (Australia’s) assessment appeals process.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Naming electronic documents
Students are directed to name documents logically.
Each should include:
Course identification code
Assessment Task number
3

Document title (if appropriate)
Student name
Date it was created
For example, BSBFIM501 AT2 Revised Marketing Budget Joan Smith 20/04/18
Additional Resources
The following resources have been added to appendix.
Assessment Task 2
Marketing Budget Template
Finance Policy and Procedures
Assessment Task 3
Marketing Expenditure
Assessment Task 4
Profit and Loss Account
Assessment Task 5
Aged Debtors Report
4

3. Assessment Instructions
Each assessment task in this booklet consists of the following:
Assessment Task Cover Sheet
This must be filled out, signed and submitted together with your assessment responses.
If you are submitting hardcopy, the Cover Sheet should be the first page of each Assessment’s submission.
If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit
the file.
The Assessment Cover Sheet will be returned to you with the outcome of the assessment, which will be
satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your
assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your
assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per
your Alpha Institute (Australia’s) re-assessment policy.
Depending on the task, this may include
resubmitting incorrect answers to questions (such as short answer questions and case studies)
resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
redoing a role play after being provided with appropriate feedback about your performance
being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily
completed the first time, after being provided with appropriate feedback.
Assessment Task Information
This gives you:
a summary of the assessment task
information on the resources to be used
submission requirements
re-submission opportunities if required
Assessment Task Instructions
These give questions to answer or tasks which are to be completed.
Your answers need to be typed up using software as indicated in the Assessment Task Instructions.
Copy and paste each task’s instructions into a new document and use this as the basis for your assessment
task submission. Include this document’s header and footer.
If you are submitting electronically, give the document a file name that includes the unit identification
number, the task number, your name and the date.
Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation
before beginning the assessment task. It will give you a good idea of what your assessor will be looking for
when marking your responses.
5

4. Assessment Task 1: Written Questions
Task summary
You need to answer all of the written questions correctly.
Your answers must be word processed.
Required
Access to learning materials
Computer and Microsoft Office
Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit
Answers to all questions
Assessment criteria
All questions must be answered correctly in order for a student to be assessed as having completed the
task satisfactorily.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
6

Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell
you how you should answer the question. Use the definitions below to assist you to provide the type of
response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify
important points and key features. Generally, you are expected to write a response one or two paragraphs
long.
Compare – when a question asks you to compare something, you will need to show how two or more things
are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected
to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things
are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write
a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or
features, and express some form of critical judgement. Generally, you are expected to write a response one
or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities
or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments
for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should
provide a detailed response with key points and features and provide critical analysis. Generally, you are
expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something
happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe
the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information
in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally,
you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the
main points. Generally, you are expected to write a response a few sentences long.
5. Assessment Task 1 Instructions
Provide answers to all of the questions below:
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1. Explain the basic principle of double entry bookkeeping.
The basic principle reflects that transactions are recorded with both aspects that is debit and credit. In other
words for every entry there is a debit and credit effect.
2. Describe the principle of cash accounting and one advantage and one disadvantage of this method
of accounting.
It is the method in which the payment and the receipts are been recorded when they are actually been paid
and received.
 Advantage: Cash accounting method is counted as simplest method where only cash transactions
is been recorded.
 Disadvantage: Chances of discrepancies are more as only cash related transactions are entered
so business can get it involved in some unfair practices.
3. Describe the principle of accrual accounting and one advantage and one disadvantage of cash
accounting
It is the concept that is to be recorded in period within which it actually occurs instead of the period within
which the cash flows regarding it occurs.
 Advantages: This method takes into consideration both cash as well as credit transaction which in
turn gives a clear picture of the company's records.
 Disadvantage: It requires more and more estimation and judgement as compared to cash basis.
4. Explain the two accounting principles on which the calculation and reporting of deprecation is
based.
 Cost principle- It refers to the principle where amount of depreciation expense that is reported on
P&L and an asset amount on balance sheet must be on the basis of historical cost that is original
cost.
 Matching principle- This principle states that cost of asset allocated in terms of depreciation
expense over useful life of asset. This means that asset's cost must match with revenues earned.
5. Identify and explain three key features of A New Tax System (GST) Act 1999.
 Dual GST
 computing GST based on the method of invoice credit
 Uniform process for collecting GST
6. Identify and then explain the four main taxation and superannuation obligations for a business.
Briefly discuss each obligation.
 Withholding tax from the report and the wages
 Paying super, at least on quarterly basis for the eligible employees
 Reporting and paying the fringe benefits taxes
 FBT obligation
7. According to GST legislation, list four items that do not attract GST.
 Dairy products
 vegetables
 coffee
 Tea
8

8. Explain the process by which a business reports GST to the Australian tax office.
 Using the default simpler BAS
 using full reporting technique
 By making use of GST instalment method
9. What is the penalty rate to be applied if a supplier does not provide an ABN?
In this case he has to pay for the highest tax rate as the penalty payment.
10. A non-profit organisation needs to register for GST after it has a turnover of more than how much?
Until and unless their projected annual turnover exceeds AUD 150000 or greater than this amount excluding
the GST.
11. List the key information that must be included on a tax invoice for sales of $1,000 or more.
Tax invoice needs to include at least 7 pieces of an information that is to be valid. For tax invoice in respect
of sales amounting to $ 1000 or more, it is important to shows the identity of buyer with its ABN.
12. Identify and explain three types of financial statements and their purpose.
 Profit and loss statement – It is the report that stores information relating to all kinds of income
and the expenditures of an enterprise. The main purpose of framing this statement is evaluate
financial performance of the firm.
 Balance sheet- It refers to the statement that is considered as the final output for all final reports
and records for assets and liabilities of the company. The major purpose of this report is analysing
financial position of the company.
 Cash flow statement- Under this statement all the cash transactions are shown in business. In
order to ascertain cash position, this statement is counted as most suitable.
13. Describe the type of entity that is required to have financial reports audited.
All the companies other than the small proprietary firms, registered scheme, disclosing enterprise must have
to audit its final reports.
14. Explain the purpose of a financial audit and auditor’s report.
The aim of auditors report is documenting reasonable assurance that the financial statement of the company
remains error free. Along with the balance sheet, P&L, Directors report and an auditors report make up as
the part for the statutory accounts of the company.
15. Describe why companies may choose to develop budgets.
By creating budget, manager can hold an organisation accountable relating to its expenses, cost etc. It is
been served as the measurement tool which helps in visualising enough cash in operating the growth.
16. Explain the main steps in the budgeting process.
 Setting goals
 Identifying the income and the expenses
 separating the needs and the wants
 Designing the budget
 Putting the plan into an action
 Seasonal expenses
 Looking ahead
9

17. List 5 ways to improve cash inflow and give examples.
The main five ways that could be adopted for improving the cash flow are as follows-
 Reevaluating pricing of the product
 Replacing inventory and an old equipment
 Re-negotiating the long term contracts
 Developing incentives for the early payments and the penalties for the delayed payment
 Improving marketing
18. Explain the use of electronic spreadsheets in developing budgets and give two of their key features.
Use of an electronic spreadsheets means that contains automatic formulas with graphs and the charts so
that it becomes easy in producing duplicates with the electronic spreadsheets. It helps in enhancing
accuracy, speed and an efficiency in the budget.
19. Explain three key principles relating to the management of a chart of accounts.
The 3 main principles for charting the account are as follows-
 Debiting the receiver, crediting the giver
 Debit what comes inside and credit what goes outside
 Debiting all the expenses and the losses and crediting all the income and the gains
20. Explain the purpose of a profit and loss statement and give two of its key features.
The purpose of P&L account is to facilitate the financial earnings performance of an enterprise over the
particular time period.
The features are as follows-
 It accounts for recording income and the expenses occurred from the business activities.
 It provides for computation of the profits earned by the firm.
10

6. Assessment Task 1 Checklist
11

Student’s name:
Did the student provide a sufficient and
clear answer that addresses the
suggested answer for:
Completed
successfully
Commen
ts
Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
Question 19
Question 20
Task Outcome:
Satisfactory  Not
Satisfact
ory 
12

7. Assessment Task 2: Budget planning project
Task summary
This assessment task requires you in the role of the Marketing Manager for King Edward VII College to
review the budget you have been assigned for the upcoming financial year and to participate in a meeting
with the CEO (role-played by your assessor) to discuss and negotiate the budget.
You are then required to meet with your team to discuss the budget allocation for the year, as well as
explain the key features of the company’s financial policy and procedure.
This assessment is to be completed in the simulated work environment in Alpha Institute (Australia’s).
Required
 Computer and Microsoft Office
 Access to the internet for research
 Marketing Budget Template
 Finance Policies and Procedures
 Space for a meeting
 Roleplay participants
Timing
Your assessor will advise you of the due date of these submissions.
Submit
 Email to assessor with the Draft Marketing Budget attached
 Email to assessor with the Revised Marketing Budget attached
Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily
address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to
complete further assessment to demonstrate competence.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
13

8. Assessment Task 2 Instructions
Carefully read the following:
King Edward VII College has been operating for 5 years. The College is based in Melbourne CBD and has
an additional campus in Sydney. The College offers a range of courses in management, marketing, human
resources and international business. It currently has around has around 500 students enrolled across all of
its courses. Courses are offered at all levels, from Certificate II to Graduate Diploma.
King Edward VII College is very popular due to its competitive pricing structure, innovative teaching methods
and state of the art facilities.
The College currently employs 24 staff members that include the CEO, a Marketing Manager and Marketing
Assistant, Promotions Officer, Human Resources Manager, Operations and Finance Manager,
Administration Manager, Office Assistant, Receptionist, Academic Manager, Student Services Officer and
approximately 14 trainers.
As the Marketing Manager for the company, you are allocated a budget each year to spend on marketing.
This year the budget you have been allocated is $25,000, which is approximately 10% of revenue. Your
budget does not include salaries and wages of staff, which is accounted for through another cost centre.
Your marketing plan for the year includes the activities below. The amounts in brackets are your cost
projections for each activity:
 Redesign web site to improve branding ($5,000)
 Design and implement an incentive scheme for referrals by students ($2,400)
 Conduct a radio advertising campaign ($10,000)
 Online communications: newsletters, websites. Blogs, Twitter (zero cost: staff time only)
 Stand at VCE Careers Expo 2016 (Stand package $3,300)
 Develop and publish 2016 promotional brochure ($1,500)
 Sponsor community organisation to improve local community profile ($2,000)
 Contingency amount ($800)
You would also like to conduct a TV advertising campaign, and have been quoted a price of $30,000 to run
the campaign. As this is obviously well over the budget limit, you need to negotiate an increase in budget. In
order to negotiate this increase, you will need to research and present an argument for using TV advertising
and the benefits to the company.
14

Complete the following activities:
1. Develop a draft marketing budget
Table 1Draft marketing budget
2017 Projected Expenses
Marketing Program Q1 2016 Q2 2016 Q3 2017 Q4 2017
2017
Total
Paid Advertising $0 $0 $0 $0 $0
Content $375 $375 $375 $375 $1,500
Events $2,500 $2,500 $2,500 $2,500 $10,000
Public Relations $825 $825 $825 $825 $3,300
Branding & Creative $600 $600 $600 $600 $2,400
Product Marketing $1,250 $1,250 $1,250 $1,250 $5,000
Other $700 $700 $700 $700 $2,800
Total $6,250 $6,250 $6,250 $6,250 $25,000
benefits of television advertising
l Wide reach to geographic area
l Promoting word of mouth marketing
21. Send an email to the CEO (your assessor).
As year started and we are preparing budget. Sir/Mam please note that budget contain multiple
items like content, event and PR etc. Event, public relation and product marketing cover major portion in
overall expenses. Sir/Mam appointment is required to discuss budget. Kindly, send time of meeting.
22. Participate in a budget meeting
From table it can be observed that higher amount of expenditure is made on advertisement that is made
through events which cover 40% of budget. Thereafter, focus is on product marketing which cover website
improvement. It covers 20% of overall budget. Public relation and brand activity have share of 13% and
10% in the budget. Major benefit of TV advertisement is that it allows wide reach and due to this reason
expenditure must be made on it.
23. Revise the marketing budget
Marketing Program Q1 2016 Q2 2016 Q3 2017 Q4 2017 2017 Total
Paid Advertising $1,250 $1,250 $1,250 $1,250 $5,000
Content $375 $375 $375 $375 $1,500
Events $2,500 $2,500 $2,500 $2,500 $10,000
Public Relations $825 $825 $825 $825 $3,300
Branding & Creative $600 $600 $600 $600 $2,400
Product Marketing $1,250 $1,250 $1,250 $1,250 $5,000
Other $700 $700 $700 $700 $2,800
Total $7,500 $7,500 $7,500 $7,500 $30,000
15

24. Send an email to the CEO (your assessor).
In the budget slight modification is made and in paid advertisement section expenditure of 1250 is proposed.
Please, communicate time and date when meeting can be organized to discuss modification made in
budget.
25. Meet with your team to discuss the budget.
10% is allocated for contingencies and 90% is allocated for other activities. This 90% amount cover paid,
content (5000, 18% share) , event (10000, 37% share), PR (3300, 12% share), branding (2400, 9% share)
and product advertisement (5000, 18% share). Thus, higher share is given to event and product
advertisement. For contingencies 2800 amount is allotted.
16

9. Assessment Task 2 Checklistent is to be completed in the
simulated work environment in the Alpha Institute
(Australia’s).
17

Student’s name:
Did the student:
Completed
successfully
C
o
m
m
e
n
t
s
Yes No
Access budget information from the case study and
use this to develop the marketing budget?
ent is to be completed in the simulated work
environment in the Alpha Institute (Australia’s).
In the meeting, discuss and confirm the marketing
budget with the CEO?
Negotiate changes to the budget based on presenting
coherent arguments for the use of television
advertising?
Allow for contingencies within the budget?
During the meeting to discuss budgets and financial
policies and procedures, demonstrate effective
communication skills including:
 Speaking clearly and concisely
 Using non-verbal communication to assist with
understanding
 Asking questions to identify required information
 Responding to questions as required
 Using active listening techniques to confirm
understanding
Discuss the budget with the team?
Use templates to record all information according to
company procedures?
Provide information to team members to follow
required financial procedures?
Task Outcome: Satisfactory  N
o
t
S
a
ti
s
f
a
18

Student’s name:
Did the student:
Completed
successfully
C
o
m
m
e
n
t
s
Yes No
c
t
o
r
y

10. Assessment Task 3: Monitor and control
finances project
Task summary
This assessment task requires you to monitor and control finances for the marketing department for King
Edward VII College and provide a budget and expenditure report to the CEO.
This assessment is to be completed in the simulated work environment in the Alpha Institute (Australia’s).
Required
 Access to learning materials
 Computer with Microsoft Office and internet access
 Marketing Expenditure
Timing
Your assessor will advise you of the due date of these submissions.
ent is to be completed in the simulated work environment in the Alpha Institute (Australia’s).
Submit
 Email to assessor with budget report and updated marketing budget attached
19

Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily
address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to
complete further assessment to demonstrate competence.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
20

11. Assessment Task 3 Instructions
Carefully read the following:
As per company policy, you are responsible for monitoring and recording expenditure each month.
The finance department has provided you with Marketing Expenditure, a report on expenditure for 2015/16.
There will also be some notes included to assist you to complete this task.
Note: that the company deems a standard variance in budgets of up to 5% acceptable.
Complete the following activities:
1. Update the marketing budget.
2017 Actual Expenses
Marketing Program Q1 2016 Q2 2016 Q3 2
Paid Advertising $0 0
Content $337.50 $337.50
Events $2,250.00 $2,250.00
Public Relations $742.50 $742.50
Branding & Creative $540.00 $540.00
Product Marketing $1,125.00 $1,125.00
Other $630.00 $630.00
Total $5,625 $5,625
2. Write a report on the budget and expenditure
From the report it has been assessed that budgeted expenses are higher than the actual expenses in
context of each and every marketing activity which indicates a favourable variance and better performance
of an organisation. Overall variance resulted as 625 for the year 2016 and for individual activity it attained as
38 for content, for an event activity equates to 250 which means overall the variance resulted is favourable.
3. Send an email to the CEO (your assessor).
To: [e-mail]
From: [e-mail]
Subject: Updated budget
Respected sir,
This is to inform you that the variance in between the actual and the budgeted figures in relation
to marketing activities shows is been reflected of a lower value and positive variances is resulted
which means firm has adopted right marketing strategies and is performing efficiently.
21

Yours sincerely,
Kings Edward
22

12. Assessment Task 3 Checklist
23

Student’s name:
Did the student:
Completed
successfully Comments
Yes No
Interpret and analyse information for
budget reporting?
Monitor and report on expenditure and
costs?
Record budget information in required
documents?
Modify contingency plans?
Report on budget and expenditure?
Task Outcome:
Satisfactory 
Not
Satisfactory

24

13. Assessment Task 4: Profit and loss
review project
Task summary
This assessment task requires you to assume a different role as Operations Manager for King Edward VII
College and to report on an interim profit and loss account.
This assessment is to be completed in the simulated work environment in the Alpha Institute (Australia’s).
Required
 Access to learning materials
 Computer and Microsoft Office
 Access to the internet
 Profit and Loss Account
Timing
Your assessor will advise you of the due date of these submissions.
Submit
 Email to assessor with performance report attached
Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily
address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to
complete further assessment to demonstrate competence.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
25

14. Assessment Task 4 Instructions
Complete the following activities:
1. Write a report for the CEO on the College’s performance for the last six months
Analyse the information provided in the interim Profit and Loss Account, and write a short report
on this.
Your performance report should:
a. Outline financial performance based on the figures in the profit and loss account
In accordance with the financial statements it has been determined that the financial performance of college
is good as the actual sales is more than the expected sales which means college had performed beyond
expectation which is good sign. Similarly, the expenses are also increasing which reflects that college must
take corrective measure for ensuring control over expenses.
b. Identify variances higher than 10%
Variance of electricity ad gas resulting as 100% as the actual expense resulted just doubled the expected or
budgeted value. Similarly, for office supplies, stationery and water the variance resulted more than 10%
because the gap resulted was of greater value.
c. Compare the performance of each campus
Melboure
Budget Actual Variance (+/-)
Income:
Sales $4,50,000 $4,75,000 6%
Expenses:
Electricity and gas $1,500 $3,000 100%
Internet $1,000 $1,100 10%
Office supplies $700 $1,200 71%
Rent $2,25,000 $2,20,000 -2%
Stationary $800 $1,300 63%
Wages and salaries $1,15,000 $1,17,000 2%
Superannuation $15,000 $16,000 7%
Travel and
accommodation $2,500 $2,700 8%
Water $2,000 $2,600 30%
Work cover insurance $900 $900 0%
Total expense $3,64,400 $3,65,800 0%
Net Profit $85,600 $1,09,200 28%
Sydney
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Budget Actual Variance (+/-)
Income:
Sales $3,50,000 $4,10,000 17%
Expenses:
Electricity and gas $1,200 $2,800 133%
Internet $1,100 $1,100 0%
Office supplies $650 $1,300 100%
Rent $1,85,000 $1,90,000 3%
Stationary $700 $1,250 79%
Wages and salaries $1,15,000 $1,17,000 2%
Superannuation $15,000 $16,000 7%
Travel and
accommodation $2,100 $2,300 10%
Water $1,900 $2,100 11%
Work cover insurance $870 $870 0%
Total expense $3,23,520 $3,34,720 3%
Net Profit $26,480 $75,280 184%
By comparing the performance of each campus it is been analysed that the performance of Melbourne
campus is better than Sydney because the value of profits is greater and the sales is also high.
d. Recommend solutions in relation to expenditure items where variances are higher than 10%
 Measures for controlling expenses
 Boosting sales by reducing fees and changing the criteria
2. Send an email to the CEO (your assessor).
To: [e-mail]
From: [e-mail]
Subject: Updated budget
Respected sir,
In order to inform you for about the financial performance of both the campus of King Edward VII
that Melbourne campus is performing in more better way than the Sydney campus as it indicates
higher profitability. The variances resulted for expenses are higher and for the sales is lower
which means effective strategies has to be created for increasing the sales.
Yours sincerely,
Kings Edward
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15. Assessment Task 4 Checklist
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Student’s name:
Did the student:
Completed
successfully Comments
Yes No
Interpret a profit and loss account?
Evaluate performance based on financial
information provided?
Recommend solutions in relation to
variances?
Task Outcome:
Satisfactory 
Not
Satisfactory

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16. Assessment Task 5: Debtor management
project
Task summary
This assessment task requires you to review and evaluate financial management processes.
This assessment is to be completed in the simulated work environment in the Alpha Institute (Australia’s).
Required
 Access to learning materials
 Computer and Microsoft Office
 Access to the internet
 Aged Debtor Summary
 Aged Debtor Monitoring Summary
Timing
Your assessor will advise you of the due date of these submissions.
Submit
 Email to the CEO (assessor) with Aged Debtor Report attached.
 Email to the CEO (assessor) with Debtor Management Procedures.
 Email to the CEO (assessor) regarding monitoring of aged debts
Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily
address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to
complete further assessment to demonstrate competence.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
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17. Assessment Task 5 Instructions
Complete the following activities:
1. Write an Aged Debtor Report for the CEO.
Firm three clients have higher debt amount and hold it for more then one month. This
reflect that firm is giving more time to debtor to pay debt amount. Recommendation given
below.
l Debt must be given to less number of people
l Less amount of debt must be given
l Time to time mail must be send to recover debt.
2. Send an email to the CEO (your assessor).
On viewing values, it can be observed that condition is not good. Debtors may default.
Hence, recommendations are proposed for approval.
l Debt must be given to less number of people
l Less amount of debt must be given
l Time to time mail must be send to recover debt.
3. Implement debtor management procedures
Process for debt management is given below.
l Receiving debt request.
l Demanding P&L statement
l Computing ratio
l Discussion whether debt must be given to applicant.
4. Monitor debtor management procedures
Steps taken to great extent prove effective as there is one client whose amount not recovered.
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5. Send an email to the CEO (your assessor).
It is identified that debtor management plan is working and reduce number of debtors with large amount not
paid debt amount for long time. It can be said that plan is good for the firm.
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18. Assessment Task 5 Checklist
34

Student’s name:
Did the student:
Completed
successfully Comments
Yes No
Analyse information on the effectiveness
of financial management processes?
Recommend improvements to financial
management approaches based on best
practice approaches?
Implement improved financial
management approaches?
Monitor improved financial management
approaches?
Task Outcome: Satisfactory 
Not
Satisfactory

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