Unit Code_AE_Sk_#of#
Skills assessment
Criteria
Unit code and name
BSBFIN501 | Manage budgets and financial plans
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Assessment declaration
Note: If you are an online student, you will be required to complete this declaration on the TAFE NSW online learning platform when you upload your assessment.
This assessment is my original work and has not been:
· plagiarised or copied from any source without providing due acknowledgement.
· written for me by any other person except where such collaboration has been authorised by the Teache
Assessor concerned.
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Date created: 3 July 2018
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This assessment can be found in the: Learning Bank
The content in this document is copyright © TAFE NSW 2021 and should not be reproduced without the permission of TAFE NSW. Information contained in this document is co
ect at the time of printing: 13 December 2023. For cu
ent information please refer to our website or your Teache
Assessor as appropriate.
Assessment instructions
Table 1 - Assessment instructions
Assessment details
Instructions
Assessment overview
The purpose of this assessment task is for you to demonstrate your ability to manage the budget and financial performance of an organisation for one reporting period (one quarter).
Assessment event numbe
2 of 2
Instructions for this assessment
This assessment is divided into five key tasks as follows:
1. Access and analyse organisational budgets and financial statements.
2. Negotiate changes to budgets and financial plans.
3. Implement and communicate budgets and financial plans to the work team.
4. Monitor financial performance in line with the budget.
5. Evaluate and report on financial performance for one reporting period.
Each task outlines specific instructions and criteria that must be met for successful completion.
Note: This assessment contains links to external resources. If a link does not work, copy and paste the URL directly into your
owser.
The assessment includes several tasks which are required to be observed by your assessor. In these cases, your assessor will use observation checklists (contained in this document) to ensure your performance meets the relevant criteria.
Feedback will be provided after each observation.
Submission instructions
On completion of this assessment, you are required to submit it to your Teache
Assessor for marking. Where possible, submission and upload of all required assessment files should be via the TAFE NSW online learning platform.
It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.
What do I need to do to achieve a satisfactory result?
To achieve a satisfactory result for this assessment you must meet all the criteria outlined in each of the five tasks.
In the case of tasks that are observed by your assessor, all parts of the observable task must be performed to a satisfactory level as indicated in the criteria section of the observation checklist.
All questions must be answered co
ectly to be deemed satisfactory in this assessment task; however, Teachers/Assessors may ask you additional questions to confirm your understanding of the task.
What do I need to provide?
TAFE NSW student account username and password.
Access to:
· computer with relevant software
· internet
· student workbook, training materials and other research you have completed
· interaction with others, including persons that you source to participate in your role play, where required
· participants to support your tasks
· video recording device such as a smartphone
What the Teache
Assessor will provide
Access to the workplace or simulated environment
Access to:
· learning materials, student workbook and online learning platforms
· supporting resources for you to complete your assessment
· TAFE NSW li
ary resources
Video recording instructions Long URL: https:
share.tafensw.edu.au/share/items/744af7d4-a241-45e2-adb0-0e13f2fe4950/0/?attachment.uuid=01c3c87a-4599-48c2-91f0-68a00b5
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Due date
Time allowed
Venue
The assessment must be submitted by the due date noted on the Unit Assessment Guide.
Students should allow a minimum of five hours to complete this assessment. Students may need additional time for preparation, research, revision group work and stakeholder engagement activities to ensure you have responded to each question satisfactorily.
TAFE NSW campus/ TAFE Digital Campus/ TAFE NSW Moodle/ a location determined by your Teache
Assesso
Assessment feedback, review or appeals
In accordance with the TAFE NSW policy Manage Assessment Appeals, all students have the right to appeal an assessment decision in relation to how the assessment was conducted and the outcome of the assessment. Appeals must be lodged within 14 working days of the formal notification of the result of the assessment.
If you would like to request a review of your results or if you have any concerns about your results, contact your Teache
Assessor or Head Teacher. If they are unavailable, contact the Student Administration Officer.
Contact your Head Teache
Assessor for the assessment appeals procedures at your college/campus.
Task 1: Access and analyse organisational budgets and financial statements.
For this task, you need to read a case study, analyse several financial statements and then answer a series of questions.
Supporting documentation
To complete this task, you will need to access the following financial statements provided in the appendix below.
· Perfect Plants Profit and Loss Statement Q2 FY2021-22.
· Perfect Plants Quarterly Budget Q2 FY2021-22.
· Perfect Plants Quarterly Budget Q3 FY2021-22.
You will also be required to access the ATO website to prepare your responses and provide adequate referencing where applicable.
Case Study Scenario
Perfect Plants Pty Ltd is a mid-sized wholesale plant nursery based in the western subu
s of Sydney. As well as their wholesale business, they have a small retail operation and propagation facility where they grow a select number of specialist varieties of orchids.
You are the Sales Manager for the Wholesale Department at Perfect Plants Pty Ltd. You have a team of nine salespeople and one horticulturalist who assists in the filling of specialist orders.
Due to the volatility of the environment that you operate in, the revenue or cost figures usually fluctuate. Also, in the last couple of days, the company has gone through internal changes and fluctuations as well.
Market Fluctuations:
· Over the past few months, the market has witnessed an increased inclination in consumers to spend on plants for their homes and businesses. Also, given the increased income in the hands of buyers, there has been an increase in sales of nurseries in the country. The average increase in sales for these competitor nurseries has been 20%, as per a market report.
· The fuel and transport costs have risen throughout the country. This has been due to the oil crises that have recently hit the world economy. This increase in fuel costs will also cascade in the cost of raw materials being transported throughout the country and, therefore, not only impacting the consumer transport but production transports as well. The cu
ent average increase in travel costs has been 18%.
Internal changes:
· The dealer who supplied your organisation with raw materials has also collaborated with some competitor firms and thus increased his prices by 13%. At the moment, you are bound to deal with him till you find another dealer.
· The top management of the firm has undergone some shifts due to which a number of people have left the organisation. This attrition is expected to get even worse in the coming months before getting stable again. Cu
ently, 23% of our wage expense has fallen and shall fall further.
While operating in the second quarter, you expect certain figures to drop and rise in the proposed budget.
Questions
1. Based on your analysis of the proposed budget along with the highlights of the external and internal environment, what do you think would be an issue with the proposed budget? List at least four issues and provide your reasons.
2. What contingencies plans would be needed for addressing the budget ove
uns?
Table 2 Contingency plan
Variation
Contingency Plan
Sales
Transport cost
Cost of sales
Attrition
3. Evaluate the income tax rate applied and if GST will be applicable for Perfect Plants Pty Ltd.
Task 2: Negotiate changes to budgets and financial plans.
For this assessment task, you need to need to organise a meeting with three other stakeholders.
During the meeting, you will discuss Perfect Plants’ proposed budget for Quarter 3 and negotiate for the changes you identified in Assessment Task 1.
To complete this assessment task, you will need to a
ange for three other people to attend your meeting. These could be people in your network who may have relevant workplace experience.
Your selected meeting participants will play the role of senior managers from Perfect Plants Pty Ltd.
Importantly, you will need to record your meeting and submit the recording file to your assessor. For ease of recording, we suggest you organise a virtual meeting using MS Teams or Zoom.
Please refer to the observation checklists to understand the criteria required to be fulfilled for the successful completion of this task.
Some important areas to be covered while discussing the budget:
· concerns identified in Task 1
· contingencies to overcome budget ove
uns
· negotiate for changes to the budget
· seek agreement from other stakeholders to amend the budget.
Submission details
For this task, you need to submit a video file of your stakeholder meeting. Ensure that your meeting meets all the criteria outlined previously.
Useful tips
Follow the Video recording instructions (pdf). This one-pager includes useful tips, links to resources, and a demonstration video.
URL: https:
share.tafensw.edu.au/share/items/744af7d4-a241-45e2-adb0-0e13f2fe4950/0/?attachment.uuid=01c3c87a-4599-48c2-91f0-68a00b5
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Task 3: Implement and communicate budgets and financial plans to the work team.
For this assessment task, you need to implement and communicate Perfect Plants’ Q3 budget to your team.
This task is divided into two parts, Part A and Part B.
Part A
For Part A, you will need to update Perfect Plants’ Q3 proposed budget with the agreed changes discussed in Task 2.
For Part A of this task, you will need to update the Perfect Plants’ Q3 budget to:
1. Reflect the agreed changes discussed with stakeholders in Task 2.
2. Highlight your changes to the budget using the highlight functions in MS Excel.
3. Include an additional spreadsheet tab that outlines at least three contingencies for addressing potential budget ove
uns.
Part B
For Part B, you will need to a
ange a meeting with four other people who will play the role of your work team at Perfect Plants Pty Ltd. During the meeting, you will present your updated budget and discuss what is required and how it will be achieved.
Importantly, you will need to record your meeting and submit the recording file to your assessor. For ease of recording, we suggest you organise a virtual meeting using MS Teams or Zoom.
Please refer to the observation checklists to understand the criteria required to be fulfilled for the successful completion of this task.
Submission details
For this task, you need to submit:
1. An updated budget (Excel Spreadsheet).
2. A video file of your meeting.
Ensure that both meet all the criteria outlined previously.
Useful tips
Follow the Video recording instructions (pdf). This one-pager includes useful tips, links to resources, and a demonstration video.
URL: https:
share.tafensw.edu.au/share/items/744af7d4-a241-45e2-adb0-0e13f2fe4950/0/?attachment.uuid=01c3c87a-4599-48c2-91f0-68a00b5
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Task 4: Monitor financial performance in line with the budget.
For this task, you need to analyse a financial statement relating to Perfect Plants’ Pty Ltd. actual performance in the mid-quarter.
Once analysed, you will need to write a draft email to the Perfect Plants finance team and advise on your teams’ financial performance.
Use the draft email template below to write your email.
Criteria for Success
To achieve a satisfactory result, your email will need to:
1. Highlight any significant budget variances (5% or more) expressed in both percentage and dollar terms. For example, ‘Transport costs are 6.2% or $4,354 above the budget allocation’.
Note: You will need to calculate the dollar figure variances by using the percentage variances outlined in the case study.
2. Recommend improvements for addressing budget ove
uns.
3. Propose the contingencies you will implement to address budget issues.
4. Outline the support you will provide the team to ensure financial targets are achieved.
5. Ensure your email is professionally written.
Submission details
For this task, you need to submit a draft email using the template on the following page. Ensure your email meets all the criteria outlined above.
Scenario
The company’s actual performance for the mid-quarter saw some variances from the budget you had previously worked on and proposed in Task 2. These changes are as follows:
· There was a -19% in revenue due to unanticipated low customer demand in the retail cash sales.
· There was a +12% in wages due to overtime expenditure to manage retail orders.
· There was a -27% in transport costs due to a sudden shift to cheaper sources of transport.
· Telephone costs witnessed a +23% due to the