Manage budgets and financial plans

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TAFE NSW - Sydney Institute *

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BSB50420

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Accounting

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Jun 11, 2024

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docx

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Skills assessment Criteria Unit code and name BSBFIN501 | Manage budgets and financial plans Qualification/Course code and name Select your Qualification/Course code and name from the dropdown. Student details Student number Student name 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 Teacher/Assessor concerned. Student signature and date Document title: BSBFIN501 _AE_Sk2of2 Page 1 of 22

Version: 20220616 Date created: 20 December 2021 For queries, please contact: Technology & Business Services Ultimo © 2021 TAFE NSW RTO Provider Number 90003 | CRICOS Provider Code: 00591E 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 correct at the time of printing: 9 June 2024. For current information please refer to our website or your Teacher/Assessor as appropriate. Document title: BSBFIN501 _AE_Sk2of2 Page 2 of 22

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 number 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 browser. 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 Teacher/Assessor for marking. Where possible, submission and upload of all required assessment files should be Document title: BSBFIN501 _AE_Sk2of2 Page 3 of 22

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Assessment details Instructions 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 correctly 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 Teacher/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 library resources Document title: BSBFIN501 _AE_Sk2of2 Page 4 of 22

Assessment details Instructions Video recording instructions Long URL: https://share.tafensw.edu.au/share/items/744af7d4-a241-45e2- adb0-0e13f2fe4950/0/?attachment.uuid=01c3c87a-4599-48c2- 91f0-68a00b5bbb4c 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 Teacher/Assessor 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 Teacher/Assessor or Head Teacher. If they are unavailable, contact the Student Administration Officer. Contact your Head Teacher/Assessor for the assessment appeals procedures at your college/campus. Document title: BSBFIN501 _AE_Sk2of2 Page 5 of 22

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 suburbs 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 Document title: BSBFIN501 _AE_Sk2of2 Page 6 of 22

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and, therefore, not only impacting the consumer transport but production transports as well. The current 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. Currently, 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. Document title: BSBFIN501 _AE_Sk2of2 Page 7 of 22

2. What contingencies plans would be needed for addressing the budget overruns? 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. Document title: BSBFIN501 _AE_Sk2of2 Page 8 of 22

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 arrange 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 overruns  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-4599-48c2-91f0-68a00b5bbb4c Document title: BSBFIN501 _AE_Sk2of2 Page 9 of 22

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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 overruns. Part B For Part B, you will need to arrange 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. Document title: BSBFIN501 _AE_Sk2of2 Page 10 of 22

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-4599-48c2-91f0-68a00b5bbb4c 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 overruns. 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. Document title: BSBFIN501 _AE_Sk2of2 Page 11 of 22

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 call per minute charges, which were raised by the network provider - Office supplies, which always remained the same, suddenly saw a +67% because of fire in the biggest nursery which damaged a lot of office supplies. Email Template To: finance@perfectplants.com.au Subject: Document title: BSBFIN501 _AE_Sk2of2 Page 12 of 22

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Document title: BSBFIN501 _AE_Sk2of2 Page 13 of 22

Task 5: Evaluate and report on financial performance for one reporting period. For this task, you need to read a case study, analyse a financial statement relating to Perfect Plants’ PTY LTD end-of-quarter performance. Once analysed, you will need to update your budget with the end-of-quarter results and record a video summarising the results. Your video must be supported by a short PowerPoint Presentation. Importantly, you will need to record your presentation and submit the recording file to your assessor. For ease of recording and sharing your PowerPoint slides, we suggest you use MS Teams or Zoom to record the presentation. Criteria for Success To achieve a satisfactory result, you will need to: 1. Update your budget with the end-of-quarter results outlined in the case study. Ensure you update both the dollar figure variance and the percentage variance. Note: You will need to calculate the dollar figure variances by using the percentage variances outlined in the case study. 2. Create a video where you: a. Summarise the end-of-quarter budget results. b. Comment on the effectiveness of your contingency strategies. c. Make at least two recommendations for improving budget performance in the future. d. Present some of the financial results using MS PowerPoint. e. Are dressed appropriately for a business presentation. Submission details For this task, you need to submit: 1. An updated and fully completed budget outlining the end-of-quarter results. 2. A video file where you outline the financial results in line with the criteria above. Ensure that both meet all the criteria outlined previously. Document title: BSBFIN501 _AE_Sk2of2 Page 14 of 22

Scenario The company’s actual performance for the quarter saw some variances as follows: - There was a +26% in revenue due to high customer demand in online plant sales - There was a +30% in cost of sales due to a sudden increase in a nutritional supplement used as a raw material - There was a -25% in travel cost due to shift to cheaper sources of transport. - There was a +3% in wages due to the continued effect of overtime expenditure. Observation checklist The observation checklist will be used by your Teacher/Assessor to mark your performance in the previous event type/s. Use this checklist to understand what skills you need to demonstrate in the role plays. The checklist lists the assessment criteria used to determine whether you have successfully completed this assessment event. All the criteria must be met. Your demonstration will be used as part of the overall evidence requirements of the unit. The Teacher/Assessor may ask questions while the demonstration is taking place or, if appropriate, directly after the task/activity has been completed Task 2: Negotiate changes to budgets and financial plans Table 3 - Student and assessor details Student name Student number Assessor name Date of meeting Assessor signature Date signed Table 4- Meeting details Meeting location Length of meeting Table 5- Assessor observations during the meeting Behaviour observed during the meeting S U/S Assessor feedback a. Student has proposed the budget and discussed the concerns ☐ ☐ b. Outlined the proposed changes with reasons ☐ ☐ c. Negotiated for the changes proposed ☐ ☐ Document title: BSBFIN501 _AE_Sk2of2 Page 15 of 22

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Behaviour observed during the meeting S U/S Assessor feedback d. Outlined contingencies for managing potential budget overruns ☐ ☐ e. Used questioning to clarify information and communicated the points clearly ☐ ☐ f. Demonstrated active listening skills and responded to stakeholder responses appropriately. ☐ ☐ g. Dressed appropriately for the meeting ☐ ☐ Table 6 - Assessor observation additional comments Additional comments Task 3: Implement and communicate budgets and financial plans to the work team (PART B) Table 7 - Student and assessor details Student name Student number Assessor name Date of meeting Assessor signature Date signed Table 8 - Meeting details Meeting location Length of meeting Table 9 - Assessor observations during the meeting Behaviour observed during the meeting S U/S Assessor feedback a. Communicated the details of the budget, including revenue targets and key expense items ☐ ☐ b. Explained the supports in place to assist team ☐ ☐ Document title: BSBFIN501 _AE_Sk2of2 Page 16 of 22

Behaviour observed during the meeting S U/S Assessor feedback members in achieving work outcomes within budget constraints c. Outlined the process to control costs and monitor expenditure ☐ ☐ d. Describe the contingencies in place to avoid budget overruns, such as reduced revenue or expenditure. ☐ ☐ e. Used questioning and active listening skills to check to understand and clarify information ☐ ☐ Table 10 - Assessor observation additional comments Additional comments Task 5: Evaluate and report on financial performance for one reporting period Table 11 - Student and assessor details Student name Student number Assessor name Date of meeting Assessor signature Date signed Table 12 - Meeting details Meeting location Length of meeting Table 13 - Assessor observations during the meeting Behaviour observed during the meeting S U/S Assessor feedback a. Summarise the end-of-quarter budget results ☐ ☐ b. Comment on the effectiveness of the contingency strategies ☐ ☐ c. Make at least two recommendations for ☐ ☐ Document title: BSBFIN501 _AE_Sk2of2 Page 17 of 22

Behaviour observed during the meeting S U/S Assessor feedback improving budget performance in the future d. Presentation of financial results using MS PowerPoint ☐ ☐ e. Dressed appropriately for the meeting ☐ ☐ Table 14 - Assessor observation additional comments Additional comments Document title: BSBFIN501 _AE_Sk2of2 Page 18 of 22

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Assessment feedback NOTE: This section must have the Teacher/Assessor and student signature to complete the feedback. If you are submitting through the TAFE NSW online learning platform, your Teacher/Assessor will give you feedback via the platform. Assessment outcome ☐ Satisfactory ☐ Unsatisfactory Assessor feedback ☐ Has the assessment declaration for this assessment event been signed and dated by the student? ☐ Are you assured that the evidence presented for assessment is the student’s own work? ☐ Was reasonable adjustment in place for this assessment event? If yes, ensure it is detailed on the assessment document. Comments : Assessor name, signature and date Student acknowledgement of assessment outcome Would you like to make any comments about this assessment? Student name, signature and date Document title: BSBFIN501 _AE_Sk2of2 Page 19 of 22

Appendix 1 - P&L Statement and Budgets Perfect Plants Profit and Loss Statement Q2 For the year ended 2021-22 Revenue $ $ Retail Cash Sales 1,050,000 Wholesale Credit Sales 900,000 Interest Received 10,000 1,960,000 Less Cost of Sales Cost of Goods Sold 1,000,000 Cartage Inward 7,500 1,007,500 Gross Profit 952,500 Less Expenses Wages & Salaries 200,000 Interest Paid 200,000 Operating Expenses 176,250 Bad Debts 37,500 Depreciation 150,000 Net Profit Before Tax 188,750 Income Tax Expenses 56,625 Net Profit After Tax 132,125 Perfect Plants Q2 Budget Sales Revenue $1,950,000 Cost of Sales ($1,007,500) Wages ($200,000) Telephone ($12,500) Travel ($113,750) Office Supplies ($18,750) Bad Debts ($37,500) Other Operating Expenses ($31,250) Departmental Profit $528,750 Perfect Plants Proposed Q3 Budget Sales Revenue $1,200,000 Cost of Sales ($620,000) Wages ($200,000) Telephone ($12,500) Document title: BSBFIN501 _AE_Sk2of2 Page 20 of 22

Travel ($70,000) Office Supplies ($18,750) Bad Debts ($37,500) Other Operating Expenses ($31,250) Departmental Profit $210,000 Appendix 2 - RECORDING YOUR OBSERVATIONS You are required to record the activities you undertake. Video Recording Instructions You should review the “Video Recording Instructions” on the next page to plan how to record your assessment task. Study this before your assessment activity to make sure you understand what is required and you can talk to your teacher if you don’t understand something. The video must clearly identify: - Your name; - Your TAFE ID; - The unit number; and - The name of the assessment you are demonstrating. You must clearly record yourself demonstrating the task. Helpful Video Tip Links There are some helpful hints to use when recording your videos. How To Film An Assessment? Watch this video about How To Film An Assessment? https://vimeo.com/411271407/8117e1a49f Top 3 Compressor Apps View this article about the Top 3 compressor apps to compress your video files. https://www.iskysoft.com/video-editing/video-compressor-app.html How To Compress Video Files Watch this video about How to compress video files. https://www.youtube.com/watch?v=l0_K3F1UkuI Document title: BSBFIN501 _AE_Sk2of2 Page 21 of 22

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