Assessment task 4

BSBFIM501A Manage budgets and financial plans

Knowledge qui
!andidate"s name Assesso'"s name Assessment site Assessment date(s )ime(s #$one %o& #$one %o&

#e'fo'mance ob*ecti+e
Investigate and discuss the importance of review and evaluation of financial performance planning monitoring.

Assessment desc'iption
This assessment requires candidates to answer the questions to demonstrate their knowledge and skills in regards to the effectiveness of financial management processes.

#'ocedu'e
1. Read the budgeted figures and complete the table. 2. Look for any outstanding variances and list possible reasons and preventive measures you would take. . Look at different scenarios and at the processes involved. !. "omplete an evaluation grid looking at improvements to processes. #. "omplete the short answer questions.

Specifications

relevant skills are identified a demonstrated understanding of specific and transferable skills specific development opportunities are suggested.

Submission guidelines
The assessment task is due on the date specified by your facilitator. $ny variations to this arrangement must be approved by your facilitator in writing. The method of submitting the assessment %electronic or hardcopy& will be specified by your facilitator prior to due date.
#age 1 of 11

Assessment task 4 BSBFIM501A Manage budgets and financial plans Ad*ustment fo' distance,based lea'ne's 'o ad(ustment necessary.

#age - of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

#a't 1
)elow are the 2**+ budgeted cash flow figures from the ,olimont accountancy firm- as was the e.ample in the workbook. "an you use the figures from the income statement below- to complete the actual figures for ,olimont accountancy firm for 2**+/ Look at where the cash for the company has come from and e.plain if this is a sustainable cash resource for the business. List any outstanding variances for the business and possibilities for the variances. 0hat corrective measures would you put in place to help control these costs in the future/
.olimont accountanc/ fi'm 2**+ 1 !as$ flows f'om ope'ating acti+ities "ollections from debtors "ollections from cash sales Interest received 3ayments to creditors 0ages and salaries Interest 3ayments 5ther operating e.penses paid Income ta. paid )otal cas$ flows f'om ope'ating e0penses !as$ flows f'om in+esting acti+ities 3roceeds from sale of property 3ayment for motor vehicle 3urchase of shares in 8ingh9s Ltd )otal cas$ flows f'om in+esting acti+ities !as$ f'om financing acti+ities 3roceeds from call on shares Loan from $bbotsford :ortgage "o. Loan repayments ;ividends 3aid <8T "ollections <8T 3aid $T5=<8T 8ettlement )otal cas$ flows f'om financing acti+ities %et c$ange in cas$ 1pening bank balance !losing bank balance 21*-*** 12*-*** 2- ** 4121-*** 412-*** 4 -#** 416-*** 421-*** 17 -+** 2**+ 1 Total 1

412-*** 412***

6-*** 41!-*** 42+-*** 12-!** 41 -+** 41-!** 4 2-!** 1!#-!** ##7-22* 6*!-22*

#age 2 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans Income Statement fo' -003

Account !as$ flows f'om ope'ating acti+it/ "ollections form debtors "ollections from cash sales Interest received 3ayments to creditors 0ages and salaries Interest e.pense 5ther operating e.penses paid Income ta. paid )otal cas$ flow f'om ope'ating acti+it/ !as$ flow f'om in+esting 3urchase of shares in 8ingh9s Ltd )otal cas$ flow f'om in+esting acti+it/ !as$ flows f'om financing 3roceeds from call on shares Loan from $bbotsford :ortgage "o. Loan repayments ;ividends paid <8T collected <8T paid $T5 <8T settlement %refund& )otal cas$ flow f'om financing acti+ities %et c$ange in cas$ flows 1pening bank balance !losing bank balance

4ebit

!'edit

1+*-*** 16*-*** 2- ** 1 7-*** 21-*** 1*-7** !+-12* 7-7+! 7 -272

1+-***

21-*** 1+*-*** 2 -*** !1-*** 12-*** 1!-*** 2-*** 1 6-*** 212-272 ##7-22* 661-#12

#age 4 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

1. >.plain if the source of cash sustainable- and list any outstanding variances you have noticed below?

2. 'ow in the space provided- list the corrective measures you would implement? "orrective measure 1?

"orrective measure 2?

"orrective measure ?

"orrective measure !?

. The financial controller has decided to increase debt repayment time for debtors from 2* days to 12*. This had led to an increase in sales but what are the consequences/ 0here do we look for this information in our business records/

#age 5 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

#age 5 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

#a't 0rite down what processes and data you would analyse when looking at the following scenarios and write down any improvements you could include to ensure that the problem would be less likely to occur in the future. @sing these improvements- complete the evaluation grid below. $n employee who has been paid too much annual leave?

$ large ta. liability owed to the $T5?

$n inflated budgeted e.pense account?

$ sales representative9s overpaid bonus?

$ large bank overdraft?

$ trial balance that does not balance?

5verstated bad debts allowance?

@nderstated accounts payable?

#age 6 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

7+aluation g'id
Suitabilit/ fo' ta'get audience )ec$nical feasibilit / )ime 70plo'e fu't$e'9 const'ain :es(%o ts

Idea

!omme'cial potential

#ossible impacts

8esou'ces 'equi'ed

; -010 Inno+ation and Business Indust'/ Skills !ouncil <td

#age 3 of 11

Assessment task 4 S$o't answe' questions

BSBFIM501A Manage budgets and financial plans

1. 0hat are the roles and responsibilities of an auditor/

2. 0hat is an ageing summary/

. List the process you would follow if you identified a cost variation.

!. 0hat is the difference between a favourable and unfavourable variance/

#. List the advantages of ensuring effective monitoring of financial processes.

#age = of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

2. List the steps you would follow to implement and monitor improvements or changes made to the financial management process.

6. List the communication strategies you would use to disseminate information about budgetsAfinancial plans to team members.

+. List the advantages and disadvantages of the communication strategies identified in question 6.

#age 10 of 11

Assessment task 4

BSBFIM501A Manage budgets and financial plans

#age 11 of 11