SITXFIN010 - Task 2 – Skill Test
Unit Code
SITXFIN010
Unit Description
Prepare and monitor budgets
Assessment Type
Task 2 – Skills Test
Assessment Location
Level 6, XXXXXXXXXXCastlereagh Street, Sydney NSW 2000
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Student ID
Student Name
Submission Date
Assessment Task 2: Project
Scenario:
You are a project manager for Melbourne Events, an event management company. You need to organise a charity program to raise fund for the Royal Children’s Hospital. The event is planned to take place in Swanston Street, at Melbourne Town Hall, a historic landmark of the city. The Royal Children’s Hospital wants a green-themed event with entertainment, music and dance, along with a charity auction. The event is planned to be held on the first Saturday in December, before Christmas and they hope to sell 350 tickets.
As a project manager, you need to organise food and beverages, along with a master of ceremonies, entertainment and music for the night. The charity will source all items for the auction. The program preparation should start from the first week of August.
The goal is to conduct a successful event and collect at least 25% of the profit from the event and the auction, for charity.
As part of the planning process, you must prepare a series of budgets to help achieve these goals.
Part A
As a project manager, analyse and prepare the budget information as requested below:
PR2.1. For the event, which budgets should be prepared to achieve the goal. Mention the scope and nature of selected budgets.
PR2.2. To prepare the budget, you are required to gather the necessary information. Outline six (6) sources of data and the information these data sources will provide to meet the organisation’s requirements. Fill in the template below with the information gathered.
Data / Information
Data Sources
PR2.3. Analyse three (3) internal and three (3) external factors that can impact on the budget. List them and provide a
ief description of the positive / negative impact of each. Use the template provided below.
Facto
Impact
Part B:
Conduct a discussion session with three (3) stakeholders (Finance manager, Food and beverage manager, event committee chair) to obtain input on the possible budget items. Instructor and two (2) students will act as the stakeholders for the meeting. If there are insufficient student numbers, the trainer will assume multiple roles.
PR2.4. Share the information on the type of budget, external and internal factors affecting the budget and obtain input on the ideas and/or any concerns/missing areas to cover in the budget.
Gather the following input from the stakeholders:
· Finance manager: Key performance indicators to be used in the budget to measure its performance.
· Food and beverage manager: How to account for significant price movements for certain commodities, if any.
· Event committee chair: Objectives to be achieved.
Use the following template to gather the input:
Suggestion / Input on budget planning
Input by
Part C
For this part, use MS Excel for calculating and preparing the budget.
Assume you have conducted research on the available vendors/suppliers and have received the following information:
Expense item
Quote ($)
Comments
Venue
2,000.00
Main hall and stage
Stationery items / Postages
225.00
Communication
250.00
Event staff uniform
650.00
T-shirt for service staff in the event.
Hire audio-visual equipment
3,500.00
Projector, microphones, sound systems, screens
Floral a
angements
4,000.00
35 x table centres, 8 x large stands
Stage and lighting hire
5,500.00
For stage and dance floor with colourful spotlights
Food and service equipment lease
1,570.00
Food preparation and service equipment
Master of ceremonies
900.00
6 hours including auction
Consultant fees
4,000.00
PR2.5. Prepare linen hire cost for the event
The financial information from suppliers on the cost of linen for the event is provided below. Prepare the linen hire cost based on the following information.
Linen type
Price per item
($)
Quantity
Cost
($)
Round tablecloths
8.50
35
Trestle tablecloths
8.50
10
Table overlays
5.50
35
Napkins
0.70
350
Chair covers
3.00
350
Total linen hire costs
PR2.6. Prepare an expense budget
Based on the quotes provided by suppliers and your calculations, prepare an expense budget for the event.
Expense budget
Expense item
($)
Venue
Stationery items / Postages
Communication
Event staff uniform
Hire audio-visual equipment
Floral a
angements
Stage and lighting hire
Food and service equipment lease
Master of ceremonies
Consultant fees
Linen hire
Total expenses
PR2.7. Prepare a wage budget for the event
For the event, all human resources required are managed by an HR firm. The financial information from the company on wages is provided below.
Besides the listed wages, an extra $10 per hour penalty will need to be paid, for anyone that worked more than 8 hours in a day, after the allotted time.
The staff are required for two days.
Friday – for room set-up and food preparation
Saturday – for the day of the event.
The required resources are listed in the table below:
Job role
No. of staff
Rostered hours per person
Pay rate per hou
Friday
Saturday
Weekday
($)
Weekend
Cook
2
8
8
30.00
35.00
Kitchen assistant
2
6
8
22.00
25.00
Kitchen hand
2
8
18.00
20.00
Waiters
5
8
8
20.00
25.00
Waiters
10
8
20.00
25.00
Bar attendant
2
4
6
20.00
25.00
Security 1
1
3 pm to 11 pm
3 pm to 11 pm
35.00
45.00
Security 2
1
11 am to 7 pm
6 pm to 2 am
35.00
45.00
Security 3
1
7 am to 3 pm
35.00
45.00
Superviso
2
10
10
40.00
50.00
Based on the information provided, prepare a wage budget using the template below:
Job role
Wages
Total wages
Friday ($)
Saturday ($)
$($)
Cook
Kitchen assistant
Kitchen hand
Waiters
Waiters
Bar attendant
Security 1
Security 2
Security 3
Superviso
Total event wages
PR2.8. Prepare food and beverages cost
For the food and beverages, assume the following:
· Ticket prices will include a four-course meal with wine, beer, soft drinks and juices.
· Every meal caters for two (2) customers, except for the tapas appetiser, which is a shared platter for each table.
· An extra 50 meal sets are required for staff and entertainers.
· Beverages include a variety of red and white wines to match each course, bottled light and heavy beer, post-mix soft drinks and orange juice.
· Standard recipes have been costed for each course, and an individual cost per serve determined.
Calculate the food costs, including food cost per head, assuming 350 customers bought the tickets and attended the charity ball.
Menu item
Cost x 1 serve
($)
No. serves required
Food cost
($)
Tapas platte
6.75
2 per table x 35 tables
Baby beetroot with aged balsamic salad
3.84
175
Pan fried potato gnocchi, crispy bacon pasta
2.60
175
Portuguese marinated chicken
5.27
200
Mustard and macadamia rack of lam
6.22
200
Sticky date chocolate pudding
2.00
175
Baileys tiramisu
1.95
175
Tea/coffee
0.25
350
Petits fours
0.35
350
Total food costs
Food cost per head
Calculate the beverage costs, including beverage cost per head.
Beverage item
Cost per item per bottle/serve ($)
Forecasted requirements
Beverage cost
($)
Sparkling wine
14.52
60
Sauvignon Blanc
15.07
55
Chardonnay
14.21
60
Botrytis Riesling
22.53
45
Merlot
8.80
50
Shiraz
12.45
45
Cabernet Sauvignon
15.01
55
Light beer (750 ml)
3.40
50
Heavy beer (750 ml)
3.99
30
Soft drink
0.20
400
Juice
0.31
225
Total beverage costs
Beverage cost per head
PR2.9. Prepare draft event budgets
Based on the information provided below, prepare the event budget
The event committee has asked you to prepare two alternative revenue statement budgets based on ticket prices of $100.00 and $ XXXXXXXXXXThey wish to determine the most feasible and profitable alternative for their organisation.
From previous experience in projects, it has been identified that a specific percentage of ticket sales revenue is spent on additional expenses, such as advertising, printing, decorating the venue and entertainment for the event. These expenses need to be included in the revenue statement budgets.
Additional expenses
% of revenue
Advertising
1%
Printing
0.25%
Room decoration
3%
Entertainment
5%
Total
9.25%
Calculate the revenue for both ticket prices
No. of tickets
Ticket price = $100.00
Ticket price = $200.00
350
Prepare alternative revenue statement budgets using the information you have accumulated so far.
Alternative 1
% of sales
Alternative 2
% of sales
350 tix x $100
350 tix x $200
Sales
$
%
$
%
Revenue from ticket sales
Cost of goods sold
Food cost
Beverage cost
Total cost of goods
Gross profit
Expenses
Labour costs
Venue
Stationery items / Postages
Communication
Event staff uniform
Hire audio-visual equipment
Floral a
angements
Stage and lighting hire
Food and service equipment lease
Master of ceremonies
Consultant fees
Linen hire
Advertising
Printing
Room deco
Entertainment
Total expenses
Profit/loss
PR2.10. Identify the
eakeven ticket price to achieve a 25% profit.
PR2.11. Calculate the revenue for the
eakeven ticket price.
No. of tickets sold
Ticket price =
350
Prepare alternative revenue statement budgets using the information you have accumulated so far.
Amount ($)
% of sales
Sales
Revenue from ticket sales
Cost of goods sold
Food cost
Beverage cost
Total cost of goods
Gross profit
Expenses
Labour costs
Venue
Stationery items / Postages
Communication
Event staff uniform
Hire audio-visual equipment
Floral a
angements
Stage and lighting hire
Food and service equipment lease
Master of ceremonies
Consultant fees
Linen hire
Advertising
Printing
Room deco
Entertainment
Total expenses
Profit/loss
Part D
PR2.12. Circulate the draft budget to the event committee for input.
Prepare an email with the detailed draft budget, including two alternatives and
eakeven price, seeking input from the relevant stakeholders (those who gave input in 2.4). The email should be XXXXXXXXXXwords long.
Email addresses will be provided by the traine
assessor.
Performance Criteria/Performance Checklist
Your task must address the following performance criteria/ performance checklist.
To be assessed as satisfactory (S) in this assessment task the participant needs to demonstrate competency in the following critical aspects of evidence
S
N/S
Traine
Assessor to complete
(Comment and feedback to students)
a) Identified the scope and nature of the required budget and the data and data source for budget preparation.
·
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b) Analysed the potential impact on the budget by internal and external factors.
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c) Engaged colleagues and required stakeholders to get input during the budget planning process.
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·
d) Drafted budget with estimated income and expenditures based on valid, reliable and relevant information.
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e) Reflected organisational objectives while drafting the budget.
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f) Analysed and provided options and recommendations on the budget in clear format and circulated it to the relevant stakeholders for their input.
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