Aged Debtor Report

Student Assessment Tasks
BSBFIM501 Manage budgets and financial plans

Table of Contents
Table of Contents 2
Assessment Information 3
Assessment Instructions 5
Student Assessment Agreement 6
Assessment Task 1 Cover Sheet 7
Assessment Task 1: Written Questions 8
Assessment Task 1 Instructions 10
Assessment Task 1 Checklist 12
Assessment Task 2: Budget planning project 14
Assessment Task 3: Monitor and control finances project 21
Assessment Task 4: Profit and loss review project 25
Assessment Task 5: Debtor management project 29
Australian Training School trading as Southern Academy of Business and Technology

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BSBFIM501 Manage budgets and financial plans Student Assessment
Version : 2.0 Tasks Last Updated : 07 May 2018 Next Update: 07 May 2019 Page 2 of 32
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, you must complete all of the assessment tasks satisfactorily.
Assessment Plan
Assessment Task Overview
1. Written questions You must correctly answer all questions.
2. Budget planning project You must complete a budget template and participate in a
meeting to discuss the budget. You must then present the
budget to their team.
3. Monitor and control finances You must review budget figures as part of a monitoring process
project and report on these.
4. Profit and loss analysis project You must review financial performance from a profit and loss
account
5. Debtor Management project You 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 RTO’s
assessment appeals process.
You 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

It is important that you name the documents that you create for this Assessment Task in a logical manner.
Each should include:
 Course identification code
 Assessment Task number
 Document title (if appropriate)
 Student name
 Date it was created
For example, BSBFIM501 AT2 Revised Marketing Budget Joan Smith 20/10/18
Additional Resources
You will be provided with the following resources before you begin each Assessment Task.
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 Debtor Summary
 Aged Debtor Monitoring Summary

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 task’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 Task 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 RTO’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.

Student Assessment Agreement
Make sure you read through the assessments in this booklet before you fill out and sign the agreement
below.
If there is anything that you are unsure of, consult your assessor prior to signing this agreement.
 
Have you read the assessment requirements for this unit? Yes No
 
Do you understand the requirements of the assessments for this unit? Yes No
 
Do you agree to the way in which you are being assessed? Yes No
 
Do you have any specific needs that should be considered? Yes No
If so, explain these in the space below.
Do you understand your rights to re-assessment? Yes No

Do you understand your right to appeal the decisions made in an assessment? Y No
es
Student name
Student number
Student signature
Date
Assessor name
Assessor signature
Date

Page 6 of 32
Version : 2.0
Assessment Task 1 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any
other student(s).
I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me
according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student name
Student ID number
Student signature
Date
Assessor declaration
 I hereby certify that this student has been assessed by me and that the assessment has been carried out
according to the required assessment procedures.
Assessor name
Assessor signature
Date
Assessment outcome S NS DNS Resubmission Y N
Feedback
Student result response

 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 1: Written Questions
Task summary
This is an open book test, to be completed in the classroom.
A time limit of 1.5 hours to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.
Required
 Access to textbooks/other 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 you to be assessed as having completed the task
satisfactorily.
Re-submission opportunities
You will be provided feedback on their performance by the 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, the 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.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any
part of this task or if you have any learning issues or needs that may hinder you when attempting any part of
the assessment.

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.

Assessment Task 1 Instructions
Provide answers to all of the questions below:
1. Explain the basic principle of double entry bookkeeping.

The main principle of double-entry system is that for every debit there is a corresponding
credit for an equal amount of money and for every credit there is a corresponding debit for an
equal amount of money; i.e. for every transaction one account is debited for the amount of
transaction and the other account is credited. One entry is known as a credit entry and the
other a debit entry.
The entries are often displayed in ‘T’ accounts:
2. Describe the principle of cash accounting and one advantage and one disadvantage of this
method of accounting.
Cash accounting is an accounting method in which payment receipts are recorded during
the period they are received, and expenses are recorded in the period in which they are
actually paid. In other words, revenues and expenses are recorded when cash is received
and paid, respectively. Cash accounting is also called cash-basis accounting. Cash
accounting is one of two forms of accounting. The other is accrual accounting, where
revenue and expenses are recorded when they are incurred. Small businesses often use
cash accounting because it is simpler and more straightforward, and it provides a clear
picture of how much money the business actually has on hand. Corporations, however,
are required to use accrual accounting under Generally Accepted Accounting Principles
(GAAP).
Advantages:
Maintenance is easy: Maintaining an accrual system of accounting is tough. Compared to
that maintenance of cash accounting is pretty easy. You will record revenue when cash is
received from customers and you will record expenses when cash is paid to suppliers.
Disadvantages:
Not recognized by Companies Act: Few businesses follow this accounting, but it is not a
recognized method under the Companies Act. As a result, this isn’t practiced by big
companies.
3. Describe the principle of accrual accounting and one advantage and one disadvantage of cash
accounting
Accrual accounting is a method used to record transactions when they happen instead of
when money exchanges hands. For example, if a customer buys $500 worth of merchandise
and you bill them for the items, even though you won't receive the money until later, the sale is
recorded in your accounting system immediately. Expenses can also be treated in the same
fashion. If you buy office equipment and use the company credit card, even if you won't pay off
the card for a month, the expense is entered into the accounting system the day of the
purchase.
Advantages: Accrual accounting has several advantages, most of which are related to
accurate income and expense reporting:
It provides an accurate picture of overall cash flow for the business. Many business
transactions occur over a period of several months and therefore several accounting periods.
Accrual accounting reflects that income and expenses generated in one month can carry over
into the next month or even longer.
Disadvantages: There are some disadvantages to using the accrual accounting method,
most of which revolve around the staff needed to maintain the system:
Small companies might lack the staff needed to manage this method. Larger companies
typically have staff – even an entire department – dedicated to tracking and reporting
transactions. For example, a hospital might have an account receivables department to keep
track of patient billings, and an account payable department to track hospital expenses.
4. Explain the two accounting principles on which the calculation and reporting of deprecation is
based.
The calculation and reporting of depreciation is based upon two accounting principles:
Cost principle:
This principle requires that the Depreciation Expense reported on the income statement, and
the asset amount that is reported on the balance sheet, should be based on the historical
(original) cost of the asset. (The amounts should not be based on the cost to replace the
asset, or on the current market value of the asset, etc.)
Matching principle.
This principle requires that the asset's cost be allocated to Depreciation Expense over the
life of the asset. In effect the cost of the asset is divided up with some of the cost being
reported on each of the income statements issued during the life of the asset. By assigning a
portion of the asset's cost to various income statements, the accountant is matching a
portion of the asset's cost with each period in which the asset is used. Hopefully this also
means that the asset's cost is being matched with the revenues earned by using the asset.
5. Identify and explain three key features of A New Tax System (GST) Act 1999.
 This New Tax System adds more information to the tax invoices relating to goods and
services.
 This focuses on financial supplies which are taxed under the GST Act. The New Tax System
is in charge of finding the actual supplies that are considered financial for the resolution of
goods and services Act.
 It aims to record credit acquisitions and it leads to the privilege of reducing input tax credits.
The regulations also stablish the percentage of reduction.
6. Identify and then explain the four main taxation and superannuation obligations for a business.
Briefly discuss each obligation.
The different types of taxations salary or wages. This is separate to income tax and is
calculated on the taxable value of the fringe benefits provided that may apply to your
business, including:
Fringe Benefits Tax (FBT): Fringe benefits are an important part of business and can be a
useful way of attracting quality staff. However, if you're going to provide fringe benefits to your
staff, you need to be aware of your taxation obligations. Fringe Benefits Tax (FBT) is a tax
payable by employers for benefits paid to an employee (or an employee's associate e.g. a
family member) in place of
Income tax for business: Federal income tax is levied on the taxable income of a person or
a business. It's calculated on assessable income less any allowable deductions.
Assessable income is generally income your business earns - it does not include GST
payable on sales you make, or GST credits.
Allowable deductions are deductions for certain expenses that you necessarily incur in relation
to your business.
Capital Gains Tax (CGT): Capital Gains Tax (CGT) is the tax that you pay on any capital
gain. It's not a separate tax, just part of your income tax.
The most common way of making a capital gain or loss is by selling assets, such as property
or vehicles, which is a CGT event. Examples of a CGT event are when:
you sell or give away an asset to someone else
an asset you own is lost or destroyed
shares you own are cancelled, surrendered or redeemed
you stop being an Australian resident
a company makes a payment (not a dividend to you as a shareholder).
Payroll tax: Payroll Tax is a state tax on the wages paid by employers. It's calculated on the
amount of wages you pay per month and collected in each state or territory that your
employees are located in.
However, not all businesses will have a tax obligation. You are only liable for payroll tax if your
total Australian wages exceed the tax-free threshold that applies in your state or territory —
tax-free thresholds vary between states and territories.
7. According to GST legislation, list four items that do not attract GST.
Most basic foods, some education courses and some medical, health and care products and
services are exempt from GST. Things that are GST-free include:
Most basic food
Some education courses, course materials and related excursions or field trips
Some medical, health and care services
Some menstrual products (from 1 January 2019)
Some medical aids and appliances and medicines
Some childcare services
Some religious services and charitable activities
8. Explain the process by which a business reports GST to the Australian tax office.
GST reporting and payment cycle will be one of the following:
Monthly – if your GST turnover is $20 million or more.
Quarterly – if your GST turnover is less than $20 million – and we have not told you that you
must report monthly.
Annually – if you are voluntarily registered for GST. That is, you are registered for GST; and
your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).
9. What is the penalty rate to be applied if a supplier does not provide an ABN?
If a supplier does not quote their ABN to your organisation and you are not satisfied that one
of the exclusions applies, your organisation must withhold 47% (from 1 July 2017) of the total
payment.
10. A non-profit organisation needs to register for GST after it has a turnover of more than how
much?
Non-profit organisations must register for GST if their GST turnover is $150,000 or more
and they may choose to register if their GST annual turnover is lower. If your organisation
is registered for GST, your organisation must include 10% GST on most, or all, of its sales.
11. List the key information that must be included on a tax invoice for sales of $1,000 or more.
The key information that must be included on a tax invoice for sales of $1,000 or more are:
Tax invoice
Sellers name
ABN number
Date of purchase
Numbers of item
Name of items
Total price
GST included

Version : 2.0 Tasks Last Updated : 07 May 2018 Next Update: 07 May 2019 Page 10
12. Identify and explain three types of financial statements and their purpose.
Three types of financial statements and their purpose are:
Income Statement: The income statement informs the reader about the ability of a
business to generate a profit. In addition, it reveals the volume of sales, and the nature of
the various types of expenses, depending upon how expense information is aggregated.
When reviewed over multiple time periods, the income statement can also be used to
analyse trends in the results of company operations.
Balance Sheet: The purpose of the balance sheet is to inform the reader about the current
status of the business as of the date listed on the balance sheet. This information is used to
estimate the liquidity, funding, and debt position of an entity, and is the basis for a number
of liquidity ratios.
Statement of cash statement: The purpose of the statement of cash flows is to show the
nature of cash receipts and cash disbursements, by a variety of categories. This information
is of considerable use, since cash flows do not always match the sales and expenses
shown in the income statement.
13. Describe the type of entity that is required to have financial reports audited.
Certain types of entities must have their financial reports audited by a registered company
auditor.
A company (other than a small proprietary company), registered scheme (managed
investment scheme) or disclosing entity (a body that holds enhanced disclosure securities)
must have its annual financial report audited and obtain an auditor's report.
However, a proprietary company may be exempt from having its financial report audited. A
disclosing entity must have its interim financial report reviewed and obtain a registered
company auditor's review report.
14. Explain the purpose of a financial audit and auditor’s report.

An auditor’s report is a key tool when reporting financial information to users.
It is an independent opinion provided by an independent external auditor as a result of an
audit, review or agreed procedures conducted on an entity.
The auditor's report is intended to provide an opinion to report users as to whether the
applicable financial reporting framework has been applied in the preparation of the report,
whether they are free from material misstatement and whether they show a true and fair
view of the operating results, financial position and cash flows of the entity.
The preparation and presentation of the financial reports, and the content of those reports,
is ultimately the responsibility of those charged with governance of the entity (for example,
directors of a company).
15. Describe why companies may choose to develop budgets.

Budgeting is the basis for all business success. It helps with both planning and control of the
finances of the business. If there is no control over spending, planning is futile and if there is
no planning there are no business objectives to achieve.
A budget is a plan to:
•control the finances of the business
•ensure that the business can fund its current commitments
•enable the business to meet it objectives and make confident financial decisions; and
•make sure that the business has money for future projects.
The benefits of budgeting should never be underestimated when running a business:

•budgeting estimates revenue, plans expenditure and restricts any spending that is not part
of the plan
•budgeting ensures that money is allocated to those things that support the strategic
objectives of the business
•a well communicated budget helps everyone understand the priorities of the business
•the process of creating a budget provides opportunities to involve staff, resulting in them
sharing the organisation’s vision; and
•engaging the team in reviewing and comparing the budget with actuals can provide
information that highlights the strengths and weaknesses of the business.
If you’re running business without a proper budget, may find you’re actually just running
around in circles and not meeting your long-term goals. By taking the time now to set a
budget, you will free up time in the future and give yourself the best chance of achieving the
rewards you want for your hard work.
16. Explain the main steps in the budgeting process.
STEPS IN THE BUDGETING PROCESS
Budgeting is a detailed process with several intricate steps leading up to understanding it at
large. A step-by-step guide to the budgeting process is given as below.
 Update budget assumptions
Budgets are always prepared on certain assumptions. Those assumptions could be
related to the sales trends, cost trends or environmental conditions.
 Note Available funding
Limited funding can greatly hinder the growth projects of the business. Therefore, in
the preparation of budgets adequate attention has to be given to the available funding
as the availability of investable funds will determine the initiation of viable projects.
 Step costing points
The business environment is subject to dynamism. Every day it is posed with
challenges that can completely change its cost structure. Therefore, in the budgeting
process certain factors that can affect the costing for the business should be closely
considered. These factors should be identified beforehand in order to make the
budget realistic.
 Create budget package
In budget package, previous standards related to the budgeting process are taken in
order to formulate a budget for the current period. Previous standards are updated
according to the recent environmental conditions. Budget package is a kind of outline
according to which budget has to be prepared.
 Obtain revenue forecast
There is no denying the fact that sales budget is the most crucial budget of all. All the
budgets are based on the sales budget. Furthermore, sales budget determines
whether the business is generating enough revenue necessary for its survival.
Therefore, adequate attention must be given to the preparation of sales budget by
forecasting demand accurately.
 Obtain department budgets
The department budgets will help to reach a budgeted expenditure for the budgeted
period. Each department will prepare its own budget and then all of them will be
combined to become a part of the master budget.
 Validate compensation
Compensation plans are a significant component of the budgeting process. As
compensation is subject to an annual increase, therefore, it should be prepared with
great care. The approval for compensation increase should first be taken from the top
management, and then it should be augmented in the budgeted compensation plans.
 Validate bonus plans
In order to maintain the morale of the employees, bonuses are frequently given to out
motivated workers. Bonuses act as an appraisal method.
 Obtain capital budget requests
Capital expenditure ensures expansion of the business. It helps the business to avail
the opportunities necessary for business growth. Any capital expenditure plans
should be taken in advance, and they should be included in the budgeting process
accordingly.
 Update the budget model
Any changes in the assumptions of the budget model should be updated, and final
budget should be prepared accordingly. A delay in this may lead to glitches later that
could cause confusion.
 Review the budget
The budget should be reviewed thoroughly once it is prepared in order to correct any
flaws. A little decimal placed wrongly can create quite an unbalance in the budget
sheet.
 Obtain approval
The budget should be presented to the top management. They will evaluate whether
it has been prepared according to their requirements and finally l approve it if it does
not need any changes.
 Issue the budget
The budget should be formally issued after its approval. All the operations there and
then will take place according to it.
17. List 5 ways to improve cash inflow and give examples.
Five ways to boost your cash flow to do that:
•Re-evaluate and fine-tune the pricing of your products.
•Replace old equipment and inventory.
•Re-negotiate long-term contracts.
•Create incentives for early payments and penalties for late payments.
•Improve your marketing.
•Final thoughts.
18. Explain the use of electronic spreadsheets in developing budgets and give two of their key
features.
Spreadsheets are an essential business and accounting tool. They can vary in complexity
and can be used for various reasons, but their primary purpose is to organize and
categorize data into a logical format. Once this data is entered into the spreadsheet, you
can use it to help organize and grow your business.
Key features:
Spreadsheets provide more than just the ability to enter data in a particular grid-based
format. They generally provide powerful support for mathematical formulas, essentially a
miniature programming language that skilled users can harness to perform calculations
based on entered numeric data. Excel formulas are widely used in the financial industry
for various types of mathematical modeling.
Spreadsheets are also versatile in terms of allowing people to enter data essentially
where they want in ways that make sense to them. While it's often useful to group like
data together in columns and associated data in rows, that's not mandatory, and
spreadsheets can contain headers, notes and other information where people want to put
it.
19. Explain three key principles relating to the management of a chart of accounts.
Principles for Developing a Chart of Accounts:
1. Financial Statements should present information simply.
This is especially important when those who must read the financial statements do not
have financial management training.
2. Be cautious about adding extra accounts to the chart of accounts.
Sometimes it is necessary to add extra accounts but more usually it's not!
20. Explain the purpose of a profit and loss statement and give two of its key features.
Use of Profit and loss:
It is important to compare the income statement with the cash flow statement since, under
the accrual method of accounting, a company can log revenues and expenses before cash
changes hands. It is important to compare income statements from different accounting
periods, as the changes in revenues, operating costs, research and development spending,
and net earnings over time are more meaningful than the numbers themselves. The income
statement follows a general form as seen in the example below. It begins with an entry for
revenue, known as the top line, and subtracts the costs of doing business, including the cost
of goods sold, operating expenses, tax expenses, and interest expenses.
Key Features:
The P&L statement is a financial statement that summarizes the revenues, costs, and
expenses incurred during a specified period.
The P&L statement is one of three financial statements every public company issue
quarterly and annually, along with the balance sheet and the cash flow statement.
It is important to compare P&L statements from different accounting periods, as the
changes in revenues, operating costs, R&D spending, and net earnings over time are more
meaningful than the numbers themselves.
Together with the balance sheet and cash flow statement, the P&L statement provides an
in-depth look at a company's financial performance.

Assessment Task 1 Checklist
Student’s name:
Completed
Did the student provide a sufficient and successfully
Comments
clear answer that addresses the
suggested answer for the following? 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 Satisfactory
Assessor signature
Assessor name
Date

BSBFIM501 Manage budgets and financial plans Student Assessment Tasks
Version : 2.0 Last Updated : 07 May 2018 Next Update: 07 May 2019 Page 12 of 32
Cover Sheet
Student Declaration
other student(s).
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date
Feedback

Student signature
Date

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 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 procedures.
This assessment is to be completed in the simulated work environment in the RTO.
Required
 Computer with Microsoft Office and internet access
 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 with Draft Marketing Budget attached
 Email with Revised Marketing Budget attached
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all
of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete
further assessment to demonstrate competence.

the assessment.

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.
Complete the following activities:

1. Develop a draft marketing budget

As the Marketing Manager for King Edward VII College, you are required to develop a budget
for marketing for the year. Review the case study information provided to you and, based on
amounts allocated to each marketing activity, develop a marketing budget using the
Marketing Budget Template to discuss at a meeting with the CEO.
Save this document as Draft Marketing Budget.
Prior to the meeting, you are also required to research the benefits of television advertising in
order to present a case for an increase in budget. Make notes to assist you at the meeting.
2. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.
It should introduce and summarise the contents of the attachment and ask for an appointment to
discuss it with them.
Attach your draft marketing budget to the email.
Your assessor will advise you of the time and date of the meeting.
3. Participate in a budget meeting
The next part of the assessment requires you to participate in a meeting with the CEO (role-
played by your assessor) to discuss the marketing budget. At the meeting, you will need to:
 Provide a copy of your completed budget to the CEO
 Explain each of the planned marketing activities
 Confirm the amount allocated to each of the marketing activities, including the
amount allocated for contingencies.
 Negotiate to increase the budget to accommodate the TV advertising campaign you wish
to run (as per the case study information, you will need to present the benefits of television
advertising to convince the CEO).
During the meeting, 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

4. Revise the marketing budget

Following the meeting, revise your marketing budget to incorporate feedback from the CEO.
5.
Send an email to the CEO (your assessor).

It should introduce and summarise the contents of the attachment, and seek their feedback and
ask for the place, date and time of the meeting with your team.
Attach your revised marketing budget to the email.
6. Meet with your team to discuss the budget.

The final part of the assessment requires you to meet with your team to confirm the budget for
the year.
You are also required to introduce the team to the company’s Finance Policies and Procedures, so
revise this before the meeting, and write a short summery of it to share with your team.
At the meeting, you will need to:

 Discuss the overall budget allocation
 Discuss the amounts allocated to each marketing activity
 Discuss the amount allocated for contingencies
 Provide an outline of the Finance Policies and Procedures.
During the meeting, demonstrate effective communication skills including:

 Using non-verbal communication to assist with understanding
 Using active listening techniques to confirm understanding

Student’s name:
Completed
successfully
Did the student: Comments
Yes No
Access budget information from the case study and

use this to develop the marketing budget?
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:
 Using non-verbal communication to assist with
understanding
 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 Not Satisfactory
Assessor signature
Assessor name
Date


Student Declaration
other student(s).
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date
Feedback

Student signature
Date

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.
Required
 Marketing Expenditure
Timing
Submit
 Email with budget report and updated marketing budget attached
Assessment criteria
the assessment.

Carefully read the following:
As set out in the 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 2016/17.
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.

1. Update the marketing budget.
Enter the amounts in Marketing Expenditure into your budget under actual expenses.
Save this document as Updated Marketing Budget.
2. Write a report on the budget and expenditure

 Projected budget and actual budget and variations
The projected budget is $25000 in different activities such as website design, education
expo, incentive scheme, community sponsorship, radio advertisement and others. Maximum
budget is allocated on radio advertisement that is $10,000 and minimum budget allocated in
contingency which is $800.
The actual budget is higher than projected budget that is by $28,400. Due to increase in rate
of goods and wages of workers there are some changes in different activities. Website
designing is increased by value $2000 and similarly, incentive scheme has increased by
$2000. Contingency amount doesn’t have any expenditure. The actual budget is 14% higher
than projected budget.
 Overall level of variance, as well as variance for individual marketing activities
The projected expenses are $25000 and Actual expense is $28400. The variance of budget
is 14%. Total expenditure is increased by 14%
web site redesign variance 40%
Incentive scheme variance 83%
Education Expo variance 7%
2016 promotional brochure 0%
Community sponsorship 0%
Radio adv. variance 0%

Reasons for overruns
 Because of issues with the plan and substance, there was a need to build SEO streamlining
to upgrade sites.
 Because of expanded fame of the understudy impetus conspire, the motivation instalments
surpassed the anticipated spending plan.
 The sum distributed for possibility was not adequate to meet invaded.
Proposed solutions for following year’s budget

Adding a long-term focus
Setting targets
Strengthening enforcement.
Plan, track, and control spending.
The purpose is to ensure that spending follows a plan, supports business objectives, stays
within pre-set limits, and does not exceed available funds.

It should introduce and summarise the contents of the attachments.
Attach your budget report and updated marketing budget to the email.

Student’s name:
Completed
successfully Comments
Did the student: 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
Assessor signature
Assessor name
Date


Student Declaration
other student(s).
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date
Feedback

Student signature
Date

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.
Required
 Profit and Loss Account
Timing
Submit
 Email with performance report attached
Assessment criteria
unfairly, or have other appropriate grounds for an appeal.
the assessment.


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
b. Identify variances higher than 10%
c. Compare the performance of each campus
d. Recommend solutions in relation to expenditure items where variances are higher than 10%
Profit and Loss

Six months to December 16
Melbourne
Budget Actual Variance (+/-)
Income:
Sales $450,000 $475,000 6%
Expenses:
Electricity and gas $1,500 $3,000 100%
Internet $1,000 $1,100 10%
Office supplies $700 $1,200 71%
Rent $225,000 $220,000 -2%
Stationary $800 $1,300 63%
Wages and salaries $115,000 $117,000 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 $364,400 $365,800
Net Profit $85,600 $109,200
Sydney
Budget Actual Variance (+/-)
Income:
Sales $350,000 $410,000 17%
Expenses:
Electricity and gas $1,200 $2,800 133%
Internet $1,100 $1,100 0%
Office supplies $650 $1,300 100%
Rent $185,000 $190,000 3%
Stationary $700 $1,250 79%
Wages and salaries $115,000 $117,000 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 $323,520 $334,720
Net Profit $26,480 $75,280

Performance for Melbourne and Sydney
Six months to December 16
The college performance for the last six months has improved significantly in terms of
performance. King Edward has just completed its second year of operations from June to Dec.
Some things look good and some don’t. Sales were really good in Melbourne compared to
Sydney. Based on the given figure for both Sydney and Melbourne college Melbourne college
has performed better than Sydney college. The expected total expenses for Melbourne campus
are $364,400 and net profit is $85,600. Similarly, the actual budgeted for Melbourne campus is
$365,800 and net profit is $109,200. The expected total expenses for Sydney campus are
$323,520 and net profit is $26,480. Similarly, the actual budgeted for Melbourne campus is
$334,720 and net profit is $75,280.
The money spent on Rent in Sydney when compared to budget and Actual budget the difference
is $5,000. In Sydney Except the work cover insurance the money spent on expenses in actual
when compared to the estimated budget is high. The sales were high when compared to
estimate sales were a really good in these six months.
College in Melbourne spent more and expenses by Sydney were less. Overall net profit in
Melbourne was good but sales were less when compared to Sydney. There was not much
difference in the expenses by college in both the cities. It was an approx. $30,000 difference.
When it comes to profit Melbourne did really well.
variances higher than 10%
Variances higher than 10% for Melbourne campus are:
Electricity and gas:100%
Internet:10%
Office supplies:71%
Stationary:63%
Water: 30%
Variances higher than 10% for Sydney campus are:
Electricity and gas:133%
Office supplies:100%
Stationary:79%
Water: 11%
Travel and accommodation:10%
Solutions to variances:
In my point of view for Melbourne college need to consider reducing the electricity because it was
higher than projected other penny expenses also need to be consider.
For Sydney college also need to consider using the electricity and office suppliers because it is
more than doubled than projected, other penny expenses also need to be reduce than planning.
There are various ways to save energy costs in working place like:
Turn off lights when not in use
Upgrades lights as LED and UID lights
Replace old equipment with energy star rated equipment
Colleges can use solar panels to reduce the energy consumption which will have its effect on the
bill.
Office supplies should be maintained on quarterly basis to lessen its requirement. Someone
should be in charge and take care of all of it.
water storage can definitely reduce bill.
Water conservation is the best way to decrease water consumption.

It should introduce and summarise the contents of the attachment.
Attach your performance report to the email.

Student’s name:
Completed
successfully
Comments
Interpret a profit and loss account?
Evaluate performance based on financial

information provided?
Recommend solutions in relation to

variances?
Task Outcome:  
Satisfactory Not Satisfactory
Assessor signature
Assessor name
Date


Student Declaration
other student(s).
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date
Feedback

Student signature
Date

Assessment Task 5: Debtor management project

Task summary
This assessment task requires you to review and evaluate financial management processes.
Required
 Computer and Microsoft Office
 Access to the internet
 Aged Debtor Summary
 Aged Debtor Monitoring Summary
Timing
Submit
 Email with Aged Debtor Report attached.
 Email with Debtor Management Procedures attached.
 Email regarding the monitoring of aged debts
Assessment criteria
the assessment.


1. Write an Aged Debtor Report for the CEO.

Analyse the information in the Aged Debtor Summary.
Note that the company’s usual terms are payment 14 days from invoice.
Research best practice debtor management and then write an Aged Debtor Report.
Your report should include:
 An outline of the information in the Aged Debtor Summary.
 What this says about the company’s aged debtor processes.
 At least 5 recommendations that could be adopted by the company in response to your
analysis. This should be based on the debtor management research you conducted.
Your aged debtor report should be approximately one-page long.
Aged Debtor Summary:

The table showcases list of customers that owe money to the college. The customers have
outstanding money. Simply, the aged debtor report lists a detailed account of which customers
(debtors) owe company money, and when they are supposed to complete payment. Having a
high total number of customers who have owed you money for more than 30 days (for example)
could indicate that you are not being paid by your customers (debtors) in a timely manner. The
aged debtors report not only provides important information to you as a business owner but can
be useful to others as well. Money owed to the business indicates future income and suggest
that the credit limits offered to customers should be re-evaluated. Based on the “Aged Debtor
Summary” we can summarise that the company has 3 clients that owes payments to the
business. First client owes the highest amount of $4,356 that has crossed over 90 days of
payment. Second client owes the amount of $2,714 over the period of 120+ days. Third client
has debt of $3,781 over the period of 60 days. In summary, the company needs to collect
$10,851 in total.
The company’s aged debtor processes:

The process of designing and monitoring the policies that govern how a company extends credit
to its customer base. The idea behind this process is to minimize the amount of bad debt that
the company will eventually incur due to customers failing to honour their commitments to repay
the total amount of the credit purchases.
Benefits of debtor management:

 Less credit risks
 Reduces debt repayment amounts and increases cash flow by managing debt.
 Motivates you to stop living beyond your means and to live a simpler, stress-free life.
 Gives the opportunity to improve your credit score and become debt-free!
 Helps clients keep control of their money and make well informed decisions about monthly
debt payments.
 Extend terms with confidence
5 recommendations adopted by company:

 The account holders don't get or will in general disregard the solicitations. In this way, for past
due instalments, contact the indebted person immediately to affirm they've gotten their receipt.
 It is significant for business to direct a month to month examination of the borrowers. Month
to month examination keeps the records receivables on track and helps business from
insolvency.
 Make an account holder's day remarkable diagram to distinguish potential income
enhancements if your business could limit past due instalments.
 Development and screen normally the borrower the executive’s framework with the goal that
no exceptional or past due instalments exist.
 Guarantee all instalment courses of action with account holders are constantly affirmed
recorded as a hard copy. Along these lines, the update can be sent in connection to the
terms and states of the obligation the board.
It should introduce and summarise the contents of the attachment and seek their approval
to implement best practice debtor management processes.
Attach your aged debtor report to the email.
3. Implement debtor management procedures

Assume that the CEO advises that, in response to your recommendations, debtor management
procedures should be developed and implemented in relation to customer invoices.
You are required to develop simple debtor management procedures for customer payments.
It should include a range of simple steps from a friendly reminder to sending a formal letter of
demand.
Your debtor management procedures should be approximately one-page long.
Debtor Management Procedure

Purpose:
The usage of the proposals as recommended in the Aged Debtor Summary Report will presently
be utilized to build up a basic indebted person the board method for client instalments. It will
incorporate a scope of basic strides from a cordial leftover portion to conveying a proper letter of
interest.
Procedures:
 Send unpaid receipt through bookkeeping framework: Just to be sure about the two
sides and accept they've missed the receipt, send a duplicate of unpaid receipt to
customers through bookkeeping arrangement of the business.
 Contact with a well-disposed instalment update including receipt: When the instalment
initially gets past due, give your client a graciousness update through telephones,
messages or sending them a letter including the receipt. As referenced in the proposals,
at times the customers will in general disregard the bills, or any minor issues that can be
effectively settled.
 Contact with a past due instalment update: If the instalment still stays extraordinary after
the primary update and has missed the following concurred instalment date or the
customer has not made any contacts at that point attempt to reach client through
telephone, email or letter to demand instalments.
 Contact your client with a last notice: When the client neglects to pay according to the
terms of instalment and has ceaselessly missed the all-inclusive dates of instalments.
For this situation, call or email them to examine the exceptional receipt or solicitation
instalments.
 Attempt to reach concerned staff of customers: If there is still no instalments or

reactions, at that point it is the following stage to think about reaching the concerned
staff of customers by either visiting them or legitimately calling them.
 Send a conventional letter of interest: When every one of the endeavours you have
reached and gather the instalment have fizzled, at that point the last advance is to
convey the proper letter of interest. This is the final hotel of the methodology, which can
cause a potential harm in the connection between the customer and the business,
hence the language must be formal and expert that doesn't annoy the customer.
 Lawful activity: After every one of these means, in the event that the customer still
neglects to pay the due sum, at that point the organization can make the legitimate
move and indict the customer for this issue.

It should introduce and summarise the contents of the attachment.
Attach your debtor management procedures to the email.

5. Monitor debtor management procedures

Assume it is six months later and you are required to review a summary of current aged debts to
determine the effectiveness of the implementation of the debtor management procedure.
Review the Aged Debtor Monitoring Summary.
Compare it against the previous Aged Debtor Summary to determine the effectiveness of
the procedure.
The introduced developed obligated individual blueprint following a half year it shows that
there is little commitment estimating $457 with less days due which is 30 days while the past
developed borrower rundown had three developed record holders who held commitment of
creating $10851 at any rate 60 days late and most extraordinary late was 120+ days.
Consequently, it shows that execution of obligated people the administrator’s technique is
apparently working suitably. Similarly, we can see a basic improvement from past to current
developed borrower layout

It should summarise your findings regarding your analysis of the Aged Debtor Monitoring
Summary.

Student’s name:
Completed
successfully Comments
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
Assessor signature
Assessor name
Date


Aged Debtor Report

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Student Assessment Tasks

BSBFIM501 Manage budgets and financial plans

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task Overview

1. Written questions You must correctly answer all questions.

Australian Training School trading as Southern Academy of Business and Technology

Naming electronic documents

Australian Training School trading as Southern Academy of Business and Technology

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet

Depending on the task, this may include

Assessment Task Information

Assessment Task Instructions

Australian Training School trading as Southern Academy of Business and Technology

Student Assessment Agreement

Do you understand your rights to re-assessment? Yes No

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 1 Cover Sheet

Assessment outcome S NS DNS Resubmission Y N

Student result response

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 1: Written Questions

Australian Training School trading as Southern Academy of Business and Technology

Written answer question guidance

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 1 Instructions

Provide answers to all of the questions below:

1. Explain the basic principle of double entry bookkeeping.

Australian Training School trading as Southern Academy of Business and Technology

14. Explain the purpose of a financial audit and auditor’s report.

15. Describe why companies may choose to develop budgets.

The benefits of budgeting should never be underestimated when running a business:

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 1 Checklist

Australian Training School trading as Southern Academy of Business and Technology

Assessment outcome S NS DNS Resubmission Y N

Student result response

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 2: Budget planning project

This assessment is to be completed in the simulated work environment in the RTO.

Australian Training School trading as Southern Academy of Business and Technology

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 2 Instructions

Carefully read the following:

Complete the following activities:

Australian Training School trading as Southern Academy of Business and Technology

1. Develop a draft marketing budget

2. Send an email to the CEO (your assessor).

Australian Training School trading as Southern Academy of Business and Technology

4. Revise the marketing budget

Send an email to the CEO (your assessor).

6. Meet with your team to discuss the budget.

At the meeting, you will need to:

During the meeting, demonstrate effective communication skills including:

Australian Training School trading as Southern Academy of Business and Technology

Assessment Task 2 Checklist

Access budget information from the case study and

In the meeting, discuss and confirm the marketing

Negotiate changes to the budget based on presenting

Allow for contingencies within the budget?

During the meeting to discuss budgets and financial

Discuss the budget with the team?

Use templates to record all information according to

Provide information to team members to follow