gagandeep kaur1-BSBFIM601 Manage Finances

BSBFIM601 - Manage Finance Student Assessment Booklet Standard formats .................................................................................................................................... 33 Sales and profit budgets ......................................................................................................................... 33 GST Cash flow budget ........................................................................................................................... 34 Aged debtors .......................................................................................................................................... 34 Scenario ..................................................................................................................................................... 34 Prompt questions ....................................................................................................................................... 34 Assessment Task 1 Checklist ........................................................................................................................ 36 Assessment Task 1 Cover Sheet .................................................................................................................. 37 Assessment Task 2 – Monitor and review budget ...................................................................................... 39 Task summary ........................................................................................................................................... 39 Resources required .................................................................................................................................... 39 Due date of submission ............................................................................................................................. 39 Specifications ............................................................................................................................................. 40 Case study: Houzit Pty Ltd ......................................................................................................................... 41 Budget variance report template ............................................................................................................ 43 Debtor ageing ratio template .................................................................................................................. 44 Assessment Task 2 Checklist ........................................................................................................................ 45 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 3 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Assessment Submission Checklist To be filled by the Trainer and Assessor S # Has the learner Checked/ Performed Comments (if any) Yes No 1 Completed ALL assessment tasks for this unit of competency? 2 Answered all theory questions in their own words? 3 Attended all the practical sessions (if any)? 4 Provided evidence of practical sessions (if applicable)? (Photographs/any workbooks/written tasks or checklists that go with the practical) 5 Signed and dated the ‘ Student declaration’ ? (Which says ‘this is all my own work and I have not cheated or plagiarized.) 6 Completed cover sheets for ALL assessment tasks? 7 Been informed about the assessment process and has been provided with an opportunity to challenge the result of the assessment and be reassessed, if required? 8 Agreed and signed that they have accepted the assessment outcome? Have you 9 Checked all the work for plagiarism? Please make sure if proper referencing and citation is followed and mentioned. 10 Provided feedback to the student for each assessment task/activity in detail including observation checklist and overall assessment outcome? 11 Checked student’s work for grammatical errors, spellings or language accuracy? 12 Completed and attached the Assessment Outcome Form (AOF) with handwritten outcome? 13 Is the judgement of competence based on evidence of learner’s performance that is aligned to the unit of competency and associated assessment requirements? 14 Does the learner have skills, knowledge and attributes as described in the unit of competency and associated assessment requirements? Trainer and Assessor Robin Stephen Signatures: Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 6 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Research tasks Research tasks are provided to help you to demonstrate your ability to conduct and analyse research or to gather information. They also help you demonstrate your knowledge about a particular topic. When completing research tasks, consider the following tips.  Ensure that you accurately quote your sources (including on-line sources).  Use information from reliable, relevant sources.  Use information sources that are current (while there are exceptions, a good guide is not more than six years old). You should also refer to the section on Completing Written Assessment Tasks below for additional information. Projects Projects are provided to help you demonstrate a range of knowledge and skills that you have developed during your course. They may be completed in your own workplace, in a simulated workplace, in the classroom or in your own time. Supporting templates and resources are usually provided to help you. They often have a range of tasks within them which will include observations and portfolio completion. You should also refer to the section on Completing Written Assessment Tasks below for additional information. Assessor observations Assessor observations are used where the unit of competency requires that you must be observed by an assessor demonstrating the skills and knowledge that you have learnt during your course. Before being observed, make sure that you read through the task information so that you understand what it is that you must demonstrate. Your assessor will advise you of when you will be observed for the purposes of assessment. Observations may be in person, via video conferring software as and when necessary/relevant (e.g. pandemic conditions or distance-based learners) or you may like to video record evidence for your assessor to watch later. When submitting video evidence ensure the quality is suitable enough for the assessor to clearly observe what you are doing and that the audio quality is sufficient. Otherwise, you may be asked to resubmit. Round table discussions Round table discussions are a fantastic way for you to discuss your own real experiences and apply them in the context of the case study. Even though you may be participating in a project based on a case study business, you have a wealth of knowledge, experience and skills that you have gathered over the course of your life that can be reflected on and applied in discussion with your peers and fellow students. These can then be discussed and applied to the project you are working on, making it more industry realistic. Role plays Role plays are used to assess your knowledge and skills where it would not be possible to provide evidence in another way. For example, many Human Resources (HR) units will require you to demonstrate competency in processes like recruitment or termination of employment. When participating in role plays, ensure that you behave as you would in real workplace. You will find more information about simulated workplaces below. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 9 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet 4: Following assessment As you complete and submit each assessment task, your assessor will mark it and complete the Assessment Task Cover Sheet. 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 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 knowledge 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. Your assessor will provide you with an appropriate timeframe in which to resubmit your work, according to your RTO’s reassessment policy and procedure. Right of appeal You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal. You should refer to your RTO’s assessment appeals process for more information. Referring to sources of information used in your assessments Include a reference list at the end of your work on a separate page, if required. You should reference the sources you have used in your assessments in the Harvard Style/APA. For example: Website Name – Page or Document Name, Retrieved insert the date. Webpage link. For a book: Author surname, author initial Year of publication, Title of book, Publisher, City, State Assessment Information The assessment tasks for BSBFIM601 Manage Finance 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. This will be an open book assessment and will be conducted face to face class and online research. All assessments should be printed and submitted as hard copy. Assessment Plan Assessment Task Overview Time Allowed Assessment Task 1: Prepare budgets (Written task, written questions and Role play) For this assessment participants undertake budgeting, financial forecasting and reporting requirements for an organisation. Participants will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and 2 Hours Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 12 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet one word or a phrase. Description A ‘statement’ in words or account that describes something. 50 – 250 words unless otherwise stipulated in the assessment task instructions. Explain A statement made to clarify something and make it understandable. 50 – 350 words unless otherwise stipulated in the assessment task instructions. Report An account given of a particular matter, especially in the form of an official document, after research / thorough investigation or consideration by an appointed person or body (approximately 500- 1000 words unless otherwise stipulated in the assessment task instructions) Assignment Guidelines The length of your answers will be guided by the description in each assessment, for example: Type of Answer Answer Guidelines Short Answer 4 typed lines = 50 words, or 5 lines of handwritten text Long Answer 8 typed lines = 100 words, or 10 lines of handwritten text = 1 3 of a foolscap page Brief Report 500 words = 1 page typed report, or 50 lines of handwritten text = 1 1 2 foolscap handwritten pages Mid Report 1,000 words = 2 page typed report 100 lines of handwritten text = 3 foolscap handwritten pages Long Report 2,000 words = 4 page typed report 200 lines of handwritten text = 6 foolscap handwritten pages Your assessor will provide you with further information about any specific requirements. Referring to sources of information used in your assessments Include a reference list at the end of your work on a separate page, if required. You should reference the sources you have used in your assessments in the Harvard Style/APA. For example: Website Name – Page or Document Name, Retrieved insert the date. Webpage link. For a book: Author surname, author initial Year of publication, Title of book, Publisher, City, State Performance Standards The following table shows you how to achieve a satisfactory result against the criteria for each type of assessment task. The following is a list of general assessment methods that can be used in assessing a unit of competency. Check your assessment tasks to identify the ones used in this unit of competency. Assessment Method Satisfactory Outcome (S) Not Satisfactory Outcome (NS) You will receive an overall result of Competent (C) or Not Yet Competent (NYC) for the unit. The assessment process may comprise of a number of assessment tasks each with specific requirements. You are required to achieve a satisfactory result in each of these to be deemed as attain a competent outcome for the unit. Your assessment may include the following assessment types. Written Questions All questions answered correctly Incorrect answers for one or more questions Answers address the question in full; referring to appropriate sources from your workbook and/or workplace Answers do not address the question in full. Does not refer to appropriate or correct sources. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 15 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Section B (Student Assessment Tasks) Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 18 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Assessment Task1 –Prepare budgets. Task summary For this task you are required to respond to a range of questions that examine your understanding of key legislative and financial management requirements for a case study organisation. This assessment also requires you to review available financial information and establish a budget for the organisation. Resources required In order to complete this assessment task you will require:  Access to textbooks/other learning materials  You are required to bring two black or blue ballpoint pens for this written task  Computer and Microsoft Office  Access to the internet Due date of submission The Assessment Task is due on the date specified by your assessor. Your due date to submit this assignment is unit end date on your timetable. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Assessment Task This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation Part 1 1. Read and analyse the case study information (including business plan summary and previous financial data) and complete the following. a. Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources. i. Ensure each budget you prepare complies with the organisational policies and procedures as provided. b. Develop budget notes that include: i. identification of reasons for previous profits and losses ii. your comment on the effectiveness of existing financial management approaches iii. all assumptions and bases that have been made or used to form budgets iv. any relevant notes regarding implementation and monitoring of budget expenditure. Part 2 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 21 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet 1. Communicate information regarding the budget. Participate in a Communication role play (10 Minutes) to:  Circulate budgets and ensure managers and supervisors are clear about budgets  Clarify reporting requirements and financial delegations with the implementation team  systems are in place to properly record all financial transactions Submit communication meeting minutes to your assessor. 2. Answer a series of eight questions (see end of this task) in written or oral form as agreed with your assessor. Specifications You must submit: ● a completed annual budget in a single spread sheet with a separate sheet for each budget component ● Participate in a Communication role play (10 Minutes) and submit communication meeting notes. ● question answers in a written format. Your assessor will be looking for: ● evidence you have reviewed the case study information provided by submitting an appropriate budget with budget notes ● evidence that you understand, and can explain, the required legislative requirements of financial management (and outline statutory requirements of ATO, GST, company tax, PAYG) ● evidence that you can outline compliance requirements for the Corporations Act 2001 ● evidence that you can identify and recommend use of suitable software for financial management ● evidence that you have clearly communicated information regarding the budget and correctly responded to a series of questions (e.g. describe the principles of accounting and financial systems) ● evidence that you can describe implications of financial probity ● evidence that you can outline the critical dates/initiatives that will require or generate resources ● evidence that you have provided for additional items (as necessary and appropriate) in the budget ● evidence that you have recommended new or modified internal controls that could improve risk management and maintenance of audit trails ● evidence that you have developed an annual budget, as appropriate ● evidence that you have developed appropriate budget notes ● evidence that you have responded appropriately to the questions presented by ‘Jim Schnieder’, the CEO in the case study in this assessment task. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 22 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Case study: Houzit Pty Ltd You have recently been appointed as the business manager of Houzit Pty Ltd having been a store manager for the past three years. Houzit Pty Ltd is a 15 store retail chain located in Brisbane. Houzit is the leading homewares retailer, catering to the growing need for furnishing new and renovated dwellings in the greater Brisbane area. The assortment on offer of bathroom fittings, bedroom fittings, mirrors and decorative items together with the recently added lighting fixtures has positioned Houzit as a leader in homewares retailing in Australia. Houzit has grown over the past five years from a single store to the current chain. Houzit prides itself on superior after sales service which has been a key reason for the continued growth in sales and corresponding profit increases. Today Houzit employs over 150 staff. Houzit Pty Ltd is a proprietary limited company (ACN 34 765 234 02) registered with the Australian Securities and Investment Commission. The registered address is with Houzit’s solicitors (Langs Lawyers, 535 Queen Street, Brisbane, QLD 4000) and the principle place of business is 505 Boundary Street Spring Hill Brisbane QLD 4000. Computer software requirement The current accounting information system has not adequately provided sufficient analysis of revenue and expenditure and has made it difficult to make informed estimates of future profits. Estimates have relied on the ‘gut feel’ of the experienced traders on the board and of the senior managers. The board sees the need to apply more analysis to past results that they believe could be done with the introduction of state-of-the-art computer software. Houzit Pty Ltd wants to upgrade their existing accounting system which will manage the company accounts more efficiently in the long run. They request that the new system you recommend to them to be compliant with all legislative and statutory requirements for small to medium businesses. None of Houzit’s products are GST free however the accounting information system records the GST collected as well as the input tax credits earned on the purchases of stock and assets. These amounts are reported and paid in accordance with the business activity statement (BAS) schedule determined by the Australian Tax Office. They have 100 fulltime and 50 part-time staff, but only 10 of the staff will have or need access to the financial system. Some staff are paid on a salary sacrifice arrangement that attracts fringe benefits tax. The staff with access to the financial system want software that is a single purchase with no ongoing license fees, and a plan to keep using if for the next 3–5 years, while the organisation continues to grow. They are anticipating that within five years they will have over 250 full-time staff, and at least 20 staff will require access to the financial system by then. The payroll system deducts withholding tax from the employees and remits this along with the firm’s pay as you go (PAYG) instalment each quarter as reported on the firm’s business activity statement. Income tax return for the company and its annual statement is completed by the firm’s accountant. Taxes and fees due are paid by the due dates. Financial records are kept at Houzit’sprinciple place of business. Houzit have just upgraded their computers and have five new desktop PCs which will be used by the finance staff. They are current (for 2011) specification machines with i5 CPUs and 4Gb RAM each, and all have Windows 7 Professional and Norton’s 360 installed with the professional version of Microsoft Office Small Business as well. Other staff will use their machines at various times, so it is important that the software requires a login to access data and that data stored by the software cannot be accessed in any other way. Corporate details Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 23 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Jim Schneider, the CEO, has asked you to prepare some financial budgets for the 2011/12 financial year as a preliminary overview of the financial year ahead. He asked you to first prepare a 12 months budget and then break it up over the four quarters. The areas he is particularly interested in seeing is: 1. Sales budget for 2011/12 by department by quarter. 2. Profit budget (including detailed expenses) for 2011/12 by quarter. 3. The cash flow result per quarter of the GST after adjusting the GST collected by the allowable GST tax credits. 4. The anticipated aged debtors summary at the end of each quarter. The CEO wants to be given all the budgets except for the aged debtors budget which the accountant and accounts receivable clerk can monitor. The CEO produced a summary of the current business plan that covered the budget year to highlight some of the key goals, objectives and strategies he would like incorporated into the budget. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 24 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Business plan summary 1. The anticipation that the coming financial year would maintain the same sales growth as the growth that took place between 2007/08 to 2010/11. 2. To budget for an increase in inflation to 4% per annum and that all costs subject to inflation should incorporate this particular increase. 3. A new car costing $97,466 including GST has been planned for in the coming period to replace the five year old vehicle currently used by the chairman. This fuel inefficient car will attract a luxury car tax. 4. Sales breakup over the departments is anticipated to be bathroom fittings 30%, bedroom fittings 25%, mirrors 15% and decorative items 10% together with the recently added lighting fixtures 20%. 5. Profits are to be built on securing a growing customer base which will generate loyalty sales and become the refer other customers to the organisation. The superior after-sales service is the key strategy to achieve this. 6. Reduction on the principle of the loan by a payment of $100,000 on the 31 December 2011 from the profits generated by the business. 7. One objective in this plan is to manage the debtors more efficiently in the current period. This will involve an analysis of the debtors to identify ways to reduce the amount of cash tied up in outstanding debtors. 8. The expectation that 2011/12 would be a difficult trading year but that the budget net profit should target the same result as achieved in the 2010/11. The strategy to achieve this in the business plan included three key elements: a. To reduce the expected gross profit rate by 1% on the 2010/11 result in the hope that lower prices on the products would help maintain the sales growth even in difficult trading conditions. b. To increase the advertising budget by $70,000 over the 2010/11 results in the hope that Houzit can secure a greater market share in a constricting market. $200,000 is planned for the first quarter with the balance apportioned equally over the following three quarters. c. To increase wages and salaries by $172,500 over the 2010/11 amounts in the hope that allowing the existing high number of casual staff to earn commissions on sales that should help to maintain Houzit’s sales growth. After going through the business plan summary, the CEO gave you the previous year’s financial reports and asked you to speak with the accountant Celina Patel to get some of the figures and detailed expectations for the coming year. You arrange a meeting with Celina Patel, Houzit’s accountant, and she gives you the following insight into the historical expense relationships and the current statutory compliance liabilities. Sales and profit budget information Celina explained that the only budget she monitors on a day-to-day basis is the cash flow budget and the store manager is primarily responsible for the sales budget. These are the notes you take at the meeting: Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 25 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet ● The overall sales for 2011/12 target set by the business plan should be apportioned across the quarters in the same % as was achieved in 2010/11. This was: Qtr 1 Qtr 2 Qtr 3 Qtr 4 2010/11 3,142,822 3,771,386 4,085,668 4,714,232 15,714,108 ● Cost of goods sold is the inverse of the gross profit rate determined by the business plan and is determined by the quarterly sales budget. ● Accounting fees have been negotiated for the year at a fixed amount of $10,000 to be paid in equal amounts each quarter. ● The interest charges on the bank loan are anticipated at a reduced amount of $84,508 due to an agreed repayment of some of the loan principal. This is to be paid in equal amounts each quarter. ● Bank charges are expected to be the same as 2011 and paid in equal amounts each quarter. ● Celina has requested that a new expense (store supplies) be recognised in the new budget that was previously included in with the cleaning expense amounts. Store supplies in the 2009/10 results was $3,500 of the cleaning expense and $3,605 of the 2010/11 result. Cleaning expense will then be lower but identify the real labour costs involved in the cleaning expense. ● Depreciation is expected to be the same as 2011 and allocated in equal amounts each quarter. ● Advertising is to be apportioned to each quarter based on the business plan. ● The following expenses are expected to increase by the determined inflation rate in the business plan summary: ○ Insurance – apportioned in equal amounts each quarter. ○ Store supplies – is calculated for to each quarter using the same % as determined by the sales for each quarter. ○ Cleaning – is calculated for each quarter using the same % as determined by the sales for each quarter. ○ Repairs and maintenance – apportioned in equal amounts each quarter. ○ Rent – apportioned in equal amounts each quarter. ○ Telephone – is calculated for to each quarter using the same % as determined by the sales for each quarter. ○ Electricity – is calculated for to each quarter using the same % as determined by the sales for each quarter. ● Fringe benefits tax is expected to be the same as 2011 and paid in equal amounts each quarter. ● Wages and salaries are calculated for each quarter using the same % as determined by the sales for each quarter. ● The statutory requirements are: ○ superannuation is 9% of wages and salaries for each quarter ○ payroll tax is 4.75% of wages and salaries for each quarter ○ workers compensation is 2% of wages and salaries for each quarter ○ company tax is 30% of net profit before tax for each quarter. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 26 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Houzit Pty Ltd For 12 months ended Profit & Loss Actuals 2007/08 2008/09 2009/10 2010/11 Revenue Sales 12,474,336 13,472,315 14,550,100 15,714,108 – Cost Of Goods Sold 6,860,901 7,409,773 8,002,555 8,799,900 Gross Profit 5,613,465 6,062,542 6,547,545 6,914,208 Expenses – Accounting Fees 5,500 6,500 8,500 9,000 – Interest Expense 45,000 65,000 96,508 90,508 – Bank Charges 1,200 1,300 1,580 1,600 – Depreciation 170,000 170,000 170,000 170,000 – Insurance 12,500 12,500 12,500 12,875 – Store Supplies - - - - – Advertising 50,000 100,000 280,000 280,000 – Cleaning 12,560 15,652 18,700 19,261 – Repairs & Maintenance 40,250 52,600 60,000 61,800 – Rent 2,465,000 2,465,000 2,465,000 2,538,950 – Telephone 9,862 12,523 14,000 14,420 – Electricity Expense 22,500 23,658 25,000 25,750 – Luxury Car Tax - - 12,400 - – Fringe Benefits Tax 26,000 26,000 26,000 28,000 – Superannuation 148,500 160,737 166,500 171,495 – Wages & Salaries 1,649,998 1,785,965 1,850,000 1,905,500 – Payroll Tax 78,375 84,833 87,875 90,511 – Workers’ Compensation 33,000 35,719 37,000 38,110 Total Expenses 4,770,245 5,017,987 5,331,563 5,457,780 Net Profit (Before Tax) 843,220 1,044,554 1,215,982 1,456,428 Income Tax 252,966 313,366 364,795 436,928 Net Profit 590,254 731,188 851,188 1,019,499 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 27 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Houzit Pty Ltd Statement of Financial Position As at 30 June 2009/10 2010/11 Assets Current Assets – Cash On Hand 50,000 55,000 – Cheque Account 144,842 160,314 – Deposits Paid 950,000 950,000 – Trade Debtors 850,000 975,000 – Merchandise Inventory 1,530,000 1,430,000 Total Current Assets Fixed Assets – Motor Vehicles At Cost 500,000 500,000 – Motor Vehicles Accum Dep ( 100,000 ) ( 125,000 ) – Furniture & Fixtures At Cost 1,950,000 2,250,000 – Furniture & Fixtures Accum Dep ( 650,000 ) ( 770,000 ) – Office Equip At Cost 400,000 400,000 – Office Equip Accum Dep ( 90,000 ) ( 115,000 ) Total Fixed Assets 2,010,000 2,140,000 Total Assets 5,534,842 5,710,314 Liabilities Current Liabilities – MasterCard 17,800 14,860 – Trade Creditors 780,000 679,000 – GST Collected 1,455,010 1,571,411 – GST Paid ( 943,125 ) ( 987,626 ) – Superannuation Payable 100,000 120,000 – Luxury Car Tax Payable 20,920 - – income Tax Payable 364,795 436,928 – PAYG Withholding Payable 65,000 44,872 Total Current Liabilities 1,860,400 1,879,445 Long-Term Liabilities - - – Bank Loans 1,608,459 1,508,459 Total Liabilities 3,468,859 3,387,904 Equity – Owner/Shareholder’s Equity 500,000 500,000 – Retained Earnings 850,000 1,565,982 – Dividends Paid ( 500,000 ) ( 1,200,000 ) – Current Year Earnings 1,215,982 1,456,428 Total Equity 2,065,982 2,322,410 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 28 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Internal auditor Carl Kerns is one of the directors of the board. Carl said that as a board member they are given the profit and cash flow budgets. He was appointed by the board to conduct an internal audit of operations to look for weaknesses in the internal control system. His report uncovered the following processes that he believed needed to be strengthened. ● While the overall customer base is increasing from year to year, there may be internal control issues relating to how these new customers are secured. ● Some discounts that were being given to customers were recorded as a net amount on the invoices and gave no indication of the discount from standard prices. ● Some cash registers in the stores were not reconciling the cash in drawer with the register printout. ● Not all timesheet overtime amounts were being authorised by the line manager. ● Service invoices for some items of equipment were not signed or linked to a purchase order. There was no check that the work had actually been carried out. ● Not all assets in the stores had unique codes fixed to the asset. ● There was minimal feedback lines of communication from the shop floor to head office, particularly when an error in the budgeting report process was recognised. ● Debtor reconciliations were not done monthly and sometimes not at all. ● In busy times the cashiers that operated the registers were also asked to do their own reconciliations and banking. Sometimes the cash was held in the store for a day or two. ● Job roles were not clearly defined so that responsibilities and liability can be identified. ● There was little rostering of duties and cash receipts were not pre-numbered. Of particular concern to Carl was the directive given by the board to ensure that audit trails were created and maintained. These included: ● Signing the timesheets for employees under the authority of a department manager. ● Maintenance of a numbered cash receipts book. ● Using sequenced cheques as a systematic way of evidencing all monies paid out. ● Ensuring proper coding of evidenced transactions against appropriate general ledger account and cost centre. ● Ensuring reconciliations between company books and third party bank statements are performed. GST cash flow budget Statutory requirements for GST is 10% of the recorded amounts in sales. The only capital purchase planned for the year is the luxury car for the chairman. Those expense payments on which 10% GST was paid include the following: ● Cost of goods sold: ○ accounting fees ○ insurance ○ store supplies ○ advertising ○ cleaning ○ repairs and maintenance Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 29 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet ○ rent ○ telephone ○ electricity expense. The GST amount payable each quarter is the difference between the GST collected from sales and the GST paid – format as per policy and procedures. CASH FLOW ANALYSIS – GST 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 GST Collected 1,697,1 24 339,425 407,310 441,252 509,137 Less GST Paid 1,256,3 58 280,489 302,781 321,912 369,175 GST Payable 431,765 58,935 104,52 9 119,34 0 148,962 Debtors ageing budget The historical records show that the debtors balance at the end of each quarter is usually about 20% of the quarter’s sales. At any time in the debtors balances 1% of the total debtors is overdue 90 days and over, 5% is 60 days overdue, 10% is 30 days overdue and the balance of the total debtors is current. The aged debtors’ budgets are only distributed to the accountant and the accounts receivable clerk. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 30 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Houzit Budgeting Policy and Procedures Budget development process The standard process for developing budgets will follow the following steps: 1. Establish the budget objective. 2. Gather prior period data. 3. Discuss prior period information and anticipated changes in the budget period with stakeholders. 4. Research relevant external information. 5. Incorporate identified trends to determine assumptions and parameters. 6. Prepare budgets in standard formats. 7. Submit budgets for approval. Budget objectives Houzit prepares budgets to meet various company objectives. Budgets are prepared: ● for a specific expansion of the business activities: ○ business case to be prepared covering a cost-benefit analysis, market research report and summary profit and investment expectations ● to outline a specific debt reduction initiative: ○ company-wide summary of profit expectations, planned debt and equity funding arrangements, CAPEX plans summarised ● annually to cover the next financial year: ○ for the 12 month period from the beginning to the end of the financial year ○ budget to include four quarter milestones in line with seasonal trends identified from prior year data ○ initial preparation includes a preliminary overview of the financial year ahead ○ sales budget for next year to be prepared by department by quarter ○ profit budget (including detailed expenses) for the next year to be prepared by quarter ○ cash flow effect of the GST payable per quarter to be prepared (scheduled compliance payment date is the 21 st day after the end of the quarter) ● To satisfy the statutory requirements relating to the current and short-term solvency of the company: ○ three monthly rolling forecast of cash flows to be prepared ● To qualify the strategic plans for the next 3–5 years planning cycle: ○ profit and CAPEX budget to be prepared. Budget variances and schedules ● Key performance indicators that should be closely monitored and reported on include variances to: ○ total sales ○ gross profit (GP) % ○ wages and salaries as a % of total sales ○ total expenses as a % of total sales Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 31 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet ○ net profit in dollars ○ net profit as a percentage. ● Budget variances will be reported using the standard format provided in this policy and procedures document. ● Budget variances must be completed within five working days of quarter end. ● Actual results for the month will be provided by the accounting information system. ● An analysis of the variance between the actual and the budget must include $ and % variance. ● Report with explanations and recommendations to be complete within seven working days of quarter end and be given to the CEO. ● Analysis and investigation of variances will include the following priority: 1. Establish the primary causes for variances to key performance indicators of total sales, gross profit % and net profit $. 2. Establish reasons for those individual items in the variance report that represent the greatest $ variance. 3. Establish reasons for those individual items in the variance report that represent the greatest % variance. ● Schedules relating to compliance due dates must be prepared and monitored by the accountant. Managers supplying information to the accountant regarding the compliance schedule must submit it at least five working days prior to the due date deadline. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 32 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Standard formats The following formats will be used when preparing Houzit budgets and variance reports. Sales and profit budgets PROFIT BUDGET 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Revenue 8% 20% 24% 26% 30% Sales $16.971. 237,00 $3.394.2 47,82 $4.073.0 96,98 $4.412.5 21,53 $5.091.3 70,68 – Cost of Goods Sold $9.673.6 05,09 $1.934.7 21,27 $2.321.6 65,26 $2.515.1 37,28 $2.902.0 81,27 Gross Profit $7.297.6 31,91 $1.459.5 26,57 $1.751.4 31,70 $1.897.3 84,26 $2.189.2 89,39 Gross Profit % 43% 43% 43% 43% 43% Expenses – Accounting Fees $10.000, 00 $2.500,0 0 $2.500,0 0 $2.500,0 0 $2.500 – Interest Expense $84.508, 00 $21.127, 00 $21.127, 00 $21.127, 00 $21.127 – Bank Charges $1.600,0 0 $400,00 $400,00 $400,00 $400 – Depreciation $170.000 ,00 $42.500, 00 $42.500, 00 $42.500, 00 $42.500 – Insurance $13.390, 00 $3.347,5 0 $3.347,5 0 $3.347,5 0 $3.347 – Store Supplies $3.749,0 0 $749,84 $899,81 $974,79 $1.124 – Advertising $350.000 ,00 $200.00 0,00 $200.00 0,00 $50.000, 00 $50.000 – Cleaning $16.282, 24 $3.256,0 0 $3.907,7 4 $4.233,3 8 $4.884 – Repairs & Maintenance $64.272, 00 $16.068, 00 $16.068, 00 $16.068, 00 $16.068 – Rent $2.640.5 08,00 $660.12 7,00 $660.12 7,00 $660.12 7,00 $660.12 7 – Telephone $14.996, 80 $2.999,3 6 $3.599,2 3 $3.899,1 7 $4.499 – Electricity Expense $26.780, 00 $5.356,0 0 $6.427,2 0 $6.962,8 0 $8.034 – Luxury Car Tax $12.000, 00 $12.000, 00 – Fringe Benefits Tax $28.000, 00 $7.000,0 0 $7.000,0 0 $7.300,0 0 $7.000 – Superannuation $187.020 ,00 $37.404, 00 $44.884, 80 $48.625, 20 $56.106 – Wages & Salaries $2.078.0 00,00 $415.60 0,05 $498.72 0,01 $540.27 9,99 $623.39 9 – Payroll Tax $98.705, 00 $19.741, 00 $23.689, 20 $25.633, 30 $29.611 – Workers’ Compensation $41.560, 00 $8.312,0 0 $9.974,4 0 $10.805, 60 $12.468 Total Expenses $5.841.3 71,24 $1.458.4 88,21 $1.395.1 71,89 $144.51 3,73 $1.543.1 97 Net Profit (Before Tax) $1.456.2 60,67 $1.038,3 6 $356.25 9,81 $452.87 0,53 $646.09 1 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 33 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Income Tax $436.878 ,20 $311,51 $106.87 7,94 $135.86 1,16 $193.87 2 Net Profit $1.019.3 82,00 $726,85 $249.38 1,86 $317.00 9,37 $452.26 4 GST Cash flow budget CASH FLOW ANALYSIS – GST 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 GST Collected 1,697,1 24 339,425 407,310 441,252 509,137 Less GST Paid 1,256,3 58 280,489 302,781 321,912 369,175 GST Payable 431,765 58,935 104,52 9 119,34 0 148,962 Aged debtors AGED DEBTORS BUDGET TOTAL Qtr 1 Qtr 2 Qtr 3 Qtr 4 Sales 16,971, 23 3,394,24 8 4,073,09 7 4,412,52 1 5,091,37 1 % Debtors Sales 20% 20% 20% 20% Total Debtors 100% 678,850 814,619 882,504 1,018,27 4 Current 84% 570,234 684,280 741,304 855,350 30 Days 10% 67,885 81,462 88,250 101,827 60 Days 5% 33,942 40,731 44,125 50,914 90 Days 1% 6.788,50 8.146,19 8.825,04 10.182,7 4 Scenario The CEO of Houzit Pty Ltd, Jim Schnieder explained that he prefers to discuss the budgets with all senior managers prior to their distribution in order to ensure a corporate view of the strategic plans. He then meets with each group separately to answer questions and concerns about their particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as an electronic spreadsheet. Upon completion of the budgets you meet with Jim to provide an overview of the information contained within the budgets, the budget notes and recommendations regarding the internal controls to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Jim asks you a series of questions (listed below, which you will complete written or orally as agreed with your assessor). Houzit pty. Ltd . Role play presentation Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 34 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Meeting minutes Date: 14/09/2023 time: 2:00pm Attended by: Jim, CEO; Senior manager, Collin jones; me, business manager # Agenda Discussed 1 Budget, actual-to-budget variance report, Debtor aging ration Budget, actual-to-budget variance report, Debtor aging ration have been despatched to the individuals with the aid of e mail on 13.10.2020 and attached 2 Issues High financial institution pastime rates. As the economic system is slightly slowing down, banks will hold up on their business yielding them to enlarge their financial institution interest. Houzit is affected by using this occasion as the mortgage cash are in variable activity rate. for the1s quarter, the allotted budget for this is simply $400.if the pastime price will increase any further, adjustment with the budgeting allocations need to be made. 3 Variances • Sales 1% much less from the price range that huge expenditure on the income advertising and advertisement activities the enterprise has no longer been in a position to gain the desired income which have been a end result of the economic slowdown diagnosed in the market. • Interest prices 33% extra it is lowering in rates additionally had a great influence on the consequences of the company. The accounting expenses of the agency noticed 75% minimize and the financial institution costs which elevated in the quarter have been no longer tremendous for the company. • Advertising 25% much less due to the fact they minimise, they’re cost in this so that they can cover their other expenses. • Luxury auto tax 300% they didn’t manage and monitor to this expend. • Net income 107% extra it is beneficial but they are bad in budget. 4 Financial performance • Wages & salaries (industry benchmark is Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 35 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet 11% & we are at 12.25%) - They furnish excessive revenue extra than the enterprise benchmark via 1.5%. they didn’t screen it carefully and it will have an effect on the company’s profit. • Sales low - due to lack of enticing in magazine advertising and it doesn’t promote properly the company’s product. • Jump in earnings aided by way of marketing saving the company is no longer spending the $50,000 for advertising. 5 Prioritized recommendations There have been important adverse variances all through the first quarter of the FY 2011/2012. To negate and address this occurrence, month-to-month evaluation ought to be done at some stage in the 2nd quarter so as to immediately address and alter the finances closer to the expenses. In that way, decrease system variance will be discovered which can be beneficial in the lengthy run. Moreover, some estimated budgets must be adjusted since majority of it yielded to a poor variance. For an instance, the price range for the save supplies, it may additionally be a trial and error thing due to the fact that it is the first time that it has been set apart from upkeep budget. 6 Reporting requirements and financial delegations These are the troubles & motives for variance and performance. Rough quarter with the financial system nonetheless in recession due to slowdown of funding boom and increasing hobby rates. Bank growing pastime rates, variable hobby fee will have an impact on the hobby payout directly due to recession. Discounts that had to be given to generate these income this entice clients and increase income volume. Advertising price range reviewing the budget to allocate extra price have to be prepared. Wages & salaries offering excessive revenue greater than the industry benchmark by using 1.5% ought to be assessment and monitor. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 36 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Prompt questions Based on the information provided in the case study answer the following questions in the space provided below: 1. Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Houzit Pty Ltd under taxation legislation. ANS. The present day statutory necessities are: a. superannuation is 9% of wages and salaries for every quarter b. payroll tax is 4.75% of wages and salaries for every quarter c. employees compensation is 2% of wages and salaries for every quarter d. organisation tax is 30% of internet income earlier than tax for every quarter. Liabilities 2009/2010 2010,2011 2011/2012 Current Liabilities – MasterCard 17,800 14,860 12,408 – Trade Creditors 780,000 679,000 590,730 – GST Collected 1,455,010 1,571,411 1,687,695 – GST Paid ( 943,125 ) ( 987,626 ) (1,032,069) – Superannuation Payable 100,000 120,000 144,000 – Luxury Car Tax Payable 20,920 - - – income Tax Payable 364,795 436,928 509,021 – PAYG Withholding Payable 65,000 44,872 30,961 Total Current Liabilities 1,860,400 1,879,445 1,942,743 Long-Term Liabilities - - - – Bank Loans 1,608,459 1,508,459 1,414,632 Total Liabilities 3,468,859 3,387,904 3,357,375 2. Identify the current compliance requirements and liabilities for this organisation under the Corporations Act 2001 . ANSWER The normal income for 2011/12 goal set with the aid of the enterprise layout must be apportioned throughout the quarters in the identical percent as was once carried out in 2010/11. Cost of items bought is the inverse of the gross earnings charge decided by means of the enterprise layout and is decided via the quarterly income budget. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 37 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet • Accounting costs have been negotiated for the 12 months at a constant quantity of $10,000 to be paid in equal quantities every quarter. • The pastime costs on the financial institution mortgage are expected at a decreased quantity of $84,508 due to an agreed compensation of some of the mortgage principal. This is to be paid in equal quantities every quarter. • Bank expenses are predicted to be the equal as 2011 and paid in equal amountseach quarter. • Celina has requested that a new fee (store supplies) be regarded in thenew price range that used to be in the past protected in with the cleansing price amounts. Store elements in the 2009/10 outcomes used to be $3,500 of the cleansing cost and $3,605 of the 2010/11 result. Cleaning fee will then be lowerbut perceive the actual labour charges concerned in the cleansing expense. • Depreciation is anticipated to be the equal as 2011 and allotted in equal amounts every quarter. • Advertising is to be apportioned to every quarter based totally on the enterprise plan. The following fees are anticipated to amplify through the decided inflation price in the commercial enterprise diagram summary: • Insurance – apportioned in equal quantities every quarter. • Store components – is calculated for to every quarter the use of the identical p.c as decided by way of the income for every quarter. • Cleaning – is calculated for every quarter the use of the equal p.c as decided via the income for every quarter. • Repairs and protection – apportioned in equal quantities every quarter. • Rent – apportioned in equal quantities every quarter. • Telephone – is calculated for to every quarter the use of the identical p.c as decided with the aid of the income for every quarter. • Electricity – is calculated for to every quarter the use of the identical percent as decided by way of the income for every quarter. ❖ Fringe advantages tax is anticipated to be the equal as 2011 and paid in equal quantities every quarter. ❖ Wages and salaries are calculated for every quarter the usage of the equal percent as decided by using the income for every quarter. Review commercially available financial management software to select the most Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 38 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet suitable software for Houzit Pty Ltd. 3. Review commercially available financial management software to select the most suitable software for Houzit Pty Ltd. Ensure you diagnose software options by comparing two commercially available software titles against the capabilities of the existing technology for the organisation and against the prioritised requirements, and outline the reasons that lead you to this recommendation. ANSWER The economic administration programming will empower the Houzit Party's management. The organization's transactions will be precisely and well timed recorded. The variety of cash administration purposes have been examined, and pointers have been made accordingly. ❖ MYOB: The MYOB bookkeeping framework is a single customer part degree accounting framework that is exceptional appropriate for small businesses. This kind of programming makes use of built-in modules. ❖ XERO: XERO is the on-line bookkeeping software program for small businesses. The product aids in figuring out the organization's ongoing income streams. ❖ Recommendation for Houzit: The Houzit Pty Ltd ought to undertake and buy XERO software program due to the fact the product will enable the business enterprise to have continuous access to the company's cash streams and the on- line bookkeeping software program will enable the agency to stay continuously refreshed. 4. Explain how you can apply the following principles of accounting in developing the budgets required for this task: a. matching principle b. account groups c. time periods. ANSWER • Matching principle - The accounting matching precept states that charges have to be diagnosed in the identical length that profits associated to these charges is diagnosed in the monetary reports. This coverage has been applied with the aid of the company in order to hold the readability of its records. • Account groups- It refers to the precis of the document primarily based on the standards used to create ace documents and decide the variety of intervals from which money owed are made from the GL. The corporation used historic information related with a variety of debts in the planning of financial records. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 39 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet • Time periods - The accounting groups' time durations will aid the corporation in differentiating and acquiring the outcomes bought in a number time frames of the company. The received outcomes will then be used for in addition comparison and selection making. 5. Explain and discuss the implications of probity when preparing and revising budgets. ANSWER • Ethics- Probity has been stated as proof of moral behaviour and can be described as affirmed and whole trustworthiness, genuineness, and uprightness in the unique process of planning. • Responsibility- The responsibilities difficulty the reception of modern methodologies and necessitate inward talent at some stage in the time spent preparing and re-examining monetary plans for estimation and forecasting functions for the executives. • Decency- The device for making use of probity in the planning method will be linked acceptably and reasonably, however it need to now not be used to keep away from good dialogs. • Conflict of Interest- To preserve a strategic distance from a battle of interest, authorities must now not use their function and their plausible for distinct instances in the identical way. The administration have to correct screen conflicts of interest. The authority has to now not recognize any local advantages. Budget variances will be stated the use of the preferred layout furnished in this policy and techniques document.  Budget variances ought to be done within 5 working days of quarter end.  Actual consequences for the month will be supplied through the accounting statistics system  An evaluation of the variance between the real and the price range have to consist of $ and% variance.  Report with explanations and suggestions to be entire inside seven working days of quarter quit and be given to the CEO. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 40 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet  Analysis and investigation of variances will consist of the following priority: 1. Establish the most important motives for variances to key overall performance symptoms of complete sales, gross earnings percent and internet earnings $. 2. Establish motives for these man or woman objects in the variance record that characterize the biggest $ variance. Establish motives for these individual items in the variance file that signify the greatest percent variance. Schedules pertaining to to compliance due dates have to be organized and monitored via the accountant. Managers offering records to the accountant related to the compliance time table should post it at least 5 working days prior to the due date deadline 6. List the critical dates and initiatives that will require or generate resources for Houzit Pty Ltd in the next financial cycle. ANSWER Houzit prepares budgets to meet a variety of corporation objectives. Budgets are prepared: • for a unique growth of the enterprise activities: o business case to be organized protecting a cost-benefit analysis, market lookup file and précis earnings and funding expectations • to define a particular debt discount initiative: o company-wide précis of earnings expectations, deliberate debt and fairness funding arrangements, CAPEX plans summarised • annually to cowl the subsequent monetary year: o for the 12 month duration from the opening to the stop of the economic yr o budget to encompass 4 quarter milestones in line with seasonal tendencies recognized from prior yr data o initial instruction consists of a preliminary overview of the economic 12 months ahead o sales price range for subsequent 12 months to be organized by using branch via quarter o profit budget (including exact expenses) for the subsequent 12 months to be organized by using quarter. Cash float impact of the GST payable per quarter to Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 41 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet be organized (scheduled compliance charge date is the twenty first day after the quit of the quarter) • to fulfil the statutory necessities pertaining to to the cutting-edge and non permanent solvency of the company: o three month-to-month rolling forecast of money flows to be prepared • to qualify the strategic plans for the subsequent 3–5 years planning cycle: profit and CAPEX price range to be prepared. Schedules touching on to compliance due dates need to be organized and monitored through the accountant. Managers offering records to the accountant concerning the compliance agenda should publish it at least 5 working days prior to the due date deadline 7. List the items you would recommend for inclusion in the budgets for Houzit Pty Ltd. ANSWER Houzit is the main homewares retailer, catering to the developing want for furnishing new and renovated dwellings in the higher Brisbane area. Houzit normally sells toilet fittings, bed room fittings, mirrors and ornamental objects collectively with the currently introduced lighting fixtures. In addition to these items, Houzit ought to add to his catalogue Coffee Tables, Libraries, Living Room Accessories (sofas, lamps, tables ...), Kitchen Fitting and Kitchen Tools. 8. List the new or modified internal controls that could improve risk management for Houzit Pty Ltd including the maintenance of audit trails. ANSWER While the usual patron base is growing from yr to year, there might also be inside manipulate troubles touching on to how these new clients are secured. • Some reductions that had been being given to clients had been recorded as a internet quantity on the invoices and gave no indication of the cut price from general prices. • Some money registers in the shops had been no longer reconciling the money in drawer with the register printout. • Not all timesheet beyond regular time quantities have been being permitted via the line manager. • Service invoices for some objects of gear have been now not signed or linked to a buy order. There used to be no take a look at that the work had truly been carried out. • Not all property in the shops had unique codes constant to the asset. • There used to be minimal comments traces of verbal exchange from the save flooring to head office, specially when an error in the budgeting file system was once recognised. • Debtor reconciliations had been no longer achieved month-to-month and from time to time no longer at all. • In busy instances the cashiers that operated the registers had been additionally Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 42 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet requested to do their very own reconciliations and banking. Sometimes the money was once held in the keep for a day or two. • Job roles have been no longer absolutely described so that duties and legal responsibility can be identified. There used to be little rostering of obligations and money receipts had been now not pre- numbered. • Signing the timesheets for personnel below the authority of a branch manager. • Maintenance of a numbered money receipts book. • Using sequenced cheques as a systematic way of evidencing all monies paid out. • Ensuring applicable coding of evidenced transactions towards splendid standard ledger account and price centre. • Ensuring reconciliations between employer books and 0.33 birthday celebration financial institution statements are performed. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 43 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Assessment Task 1 Checklist Please ensure you submit Authentic, sufficient, valid and current evidence submitted by Student (to be completed by Assessor) Submit a completed annual budget? □ Yes □ No Participate in a Communication role play (10 Minutes) and submit communication meeting notes. Clearly communicate the information within the budget/s and correctly answer a series of questions?  Circulate budgets and ensure managers and supervisors are clear about budgets  Clarify reporting requirements and financial delegations with the implementation team  systems are in place to properly record all financial transactions All materials (identified above) within the agreed timeframe? Yes □ No Submit answers to all research questions? Satisfactory Assessor’s comment 1 □ Yes □ No 2 □ Yes □ No 3 □ Yes □ No 4 □ Yes □ No 5 □ Yes □ No 6 □ Yes □ No 7 □ Yes □ No 8 □ Yes □ No Task Outcome: Satisfactory  Not Satisfactory  Assessor’sSignature Assessor’sName Date: Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 44 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Assessment Task 2 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 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 and this submission is based on my own research work.  This piece of work has not previously been submitted for assessment in this or any other subject.  I give permission for my assignment to be scanned for electronic checking of plagiarism. I understand that plagiarism and cheating is against Institution’s policy and will result in NYC outcome Student’s Full Name: Student ID: Student’s Signature: Date of submission: Assessor declaration I hereby certify that this student has been assessed by me and that the assessment has been carried out in accordance with the principles of assessment and relevant assessment procedures Assessor’s Name Assessor’s Signature Date: Assessment Outcome: S: Satisfactory; NS: Not Satisfactory; NA: Not Assessed (Please circle) S NS NA Resubmission  Yes  No  1st resubmission Date of resubmission:  2nd resubmission Date of resubmission: Extension request approved  Yes  No  Revised date of submission 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 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 45 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 46 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Assessment Task 2 –Monitor and review budget Task summary This assessment task requires you to monitor the implementation of a budget and report on the variances, trends and performance of the established budget for a fictional business and provide recommendations for ongoing financial viability. Resources required In order to complete this assessment task you will require:  Access to textbooks/other learning materials  Computer and Microsoft Office  Access to the internet Due date of submission The Assessment Task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. See specifications below for details. Assessment Task You will need to review the provided current case study information and compare it to the budget you established in Assessment Task 1. After evaluating these you will need to report on the following: ● significant issues ● variances from budget ● comparative performances ● recommendations for ongoing financial viability ● evaluation of financial management processes. Procedure 1. Develop a variance report based on the format and template provided by Houzit. 2. Complete a cash flow analysis on the average length of time it takes Houzit to collect funds from its debtors to determine the trend based on the financial reports in Assessment Task 1. 3. Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following in a report: a. Issues: i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes of these issues. Include in this issues of financial probity that you have identified or considered when monitoring these budgets. b. Variances: i. Complete an actual-to-budget variance report, using the template provided in the case study. ii. Identify variances by comparing actual results with the established budget, and provide reasons why these variances may have occurred. c. Performance: Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 47 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet i. Compare financial performance of the organisation (according to financial information provided) to industry benchmarks for this organisation in line with the retail trade sector. ii. Respond to the performance questions provided by the CEO, as provided by the board of Houzit, iii. Determine a trend of the average debtor days and the impact to the cash flow of Houzit. d. Recommendations: i. Outline your recommendations for ongoing financial viability for the organisation, based on your assessment of the issues, reasons for variances and organisational performance you have identified (Steps 1–3). ii. Include in this section your plans for a revised budget, effectively managing contingencies and issues that have been identified in feedback and monitoring of the budgets. e. Evaluation: i. Provide a summary review of the financial management processes in place for the organisation, in light of your assessment of the issues, reasons for variances and organisational performance you have identified. Include in this section any recommendations you have for modifying management processes. 4. Prepare for and undertake the role-play presentation: a. Arrange a time with Jim Schnieder, CEO of Houzit Pty Ltd (your assessor), to present an oral explanation of your variance report. Ensure that your assessor has copies of or access to documents you will be referring to. b. Deliver the presentation of your variance report i. Summarise your findings (issues, variances, financial performance) ii. Prioritise and present your recommendations. c. Ask for questions, either during or at the end of the presentation, to: i. demonstrate your oral communication skills ii. use questioning and listening techniques iii. demonstrate competent exchange of information iv. use appropriate conventions and protocols v. ensure the manager/CEO is clear about budgets d. Seek approval (or discuss as required) of your recommendations in the report. Specifications You must submit: ● a complete actual-to-budget variance report ● a completed report detailing the issues, variances, performance, recommendations and evaluations identified from the financial information for Houzit Pty Ltd. ● Prepare for and undertake the role-play presentation Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 48 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet You will be assessed based on your ability to: ● Review the provided case study information to develop an evaluative report concerning the progress of the budget. ● Select and uses appropriate conventions and protocols when communicating with supervisors and managers to share information or seek agreement. ● Explain financial decisions and outcomes clearly and uses listening and questioning techniques to exchange information and obtain agreement. ● Use logical processes in planning, implementing and evaluating complex tasks to achieve stated goals. ● Investigate new digital technologies and applications to manage and manipulate data. Case study: Houzit Pty Ltd Soon after the end of the first quarter, Jim Schneider the CEO of Houzit, asked you to follow up with Celina Patel, Houzit’s accountant, to see how the actual results compared with the budget you had prepared three months ago. You explained that you had a meeting with Celina that afternoon to get the results and that you would report back as soon as you had done some analysis. The key questions that the board was most interested to have answered from the budgets and the variance reports were: ● ‘To what extent do the reports support the view of the board that Houzit is financially viable?’ ● ‘Will we be able to maintain our gross profit margins in the predicted downturn?’ Jim and you both agreed that it had been a tough quarter with the economy still in recession and the impact this was having on the retail sector. Banks are raising interest rates in line with the increased upward international pressure and Houzit has a significant part of their loan funds on a variable interest rate which changes directly with market conditions. Jim was pleased that the sales seem to be holding up reasonably well as first quarter results are generally impacted by factors relating to public and school holidays but he was concerned about the discounts that had to be given to generate these sales. ‘ That’s going to hurt us at some point’ Jim said. ‘Just a pity we could not get into some national magazines this quarter to promote the store offers. I’m sure that would have helped us exceed the budgets you set. I guess we will just have to spend that advertising money in the next quarter’ Jim said. ‘I still think we are running our wages and salaries a bit high. The industry benchmark for wages and salaries is close to 11% of sales’ Jim went on to explain, ‘One of our contingency plans in a slowing economy is to reduce our exposure to debt by applying our profits to the repayment of the long term debt. This will help reduce the interest burden on the business and take some pressure off the diminishing profits. It would also be of interest to determine the impact that our debtors has on the cash flow of the business from 2010/11.’ You are a beneficiary of the company’s profit bonus scheme that is based on the profitability of the company’s financial reports which you are required to prepare. You also prepare the departmental reports that form the basis of the performance review of the managers. You are the manager of the finance/administration and prepare this department’s report as well. You met that afternoon with Celina and she provided you with the following report on the actual results for the quarter ended 30 September 2011. Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 49 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Houzit Pty Ltd Actual Results Qtr 1 Revenue Sales 3,371,200 – Cost Of Goods Sold 1,955,296 Gross Profit 1,415,904 Gross Profit % 42% Expenses – Accounting Fees 2,500 – Interest Expense 28,150 – Bank Charges 380 – Depreciation 42,500 – Insurance 3,348 – Store Supplies 790 – Advertising 150,000 – Cleaning 3,325 – Repairs & Maintenance 16,150 – Rent 660,127 – Telephone 3,100 – Electricity Expense 5,245 – Luxury Car Tax 12,000 – Fringe Benefits Tax 7,000 – Superannuation 37,404 – Wages & Salaries 410,500 – Payroll Tax 19,741 – Workers’ Compensation 8,312 Total Expenses 1,410,572 Net Profit (before tax) 5,333 Income Tax 1,600 Net Profit 3,733 GST cashflow – Actual Cash flow analysis – GST Qtr 1 GST Collected 337,120 Less GST Paid 279,988 GST Payable 57,132 Aged debtors – Actual AGED DEBTORS BUDGET Qtr 1 Sales 3,371,200 % Debtors Sales 22% Total Debtors 741,664 Current 585,915 30 days 111,250 60 days 37,083 90 days 7,417 Total Debtors 741,664 Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 50 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Budgetvariance report template According to the organisational policy and procedures, the following format is to be used when preparing a budget variance report. Houzit Pty Ltd Variance to Budget xxx Quarter ended mmm-yyyy Actual Results Budget- Qx Actual- Qx $ Varianc e % Varianc e F or U Sales 3394247 3371200 23047 1% U – Cost Of Goods Sold 1934721 1955296 20575 1% U Gross Profit 1459526 1415904 -43622 -3% U Gross Profit % 43% 42% 0% -2x% U Expenses – Accounting Fees 2500 2500 - 0% F – Interest Expense 21,270 28,150 7,023 33% U – Bank Charges 400 380 -20 -5% F – Depreciation 42500 42500 - 0% F – Insurance 3348 3348 - -0% F – Store Supplies 750 790 40 5% U – Advertising 200000 150000 -50000 -25% F – Cleaning 3256 3325 69 2% U – Repairs & Maintenance 16068 16150 82 1% U – Rent 660127 660127 - 0% F – Telephone 2999 3100 101 3% U – Electricity Expense 5356 5245 -111 -2% F – Luxury Car Tax 12000 12000 - 0% F – Fringe Benefits Tax 7000 7000 - 0% F – Superannuation 37404 37404 - 0% F – Wages & Salaries 415600 410500 5100 -1% F – Payroll Tax 19,741 19,741 - 0% F – Workers’ Compensation 8,312 8,312 - 0% F Total Expenses 1,458,48 8 1,410,57 2 -47917 -3% F Net Profit (Before Tax) 1,038 5333 4294 414% F Income Tax 311 1600 1288 414% U Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 51 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Net Profit 727 3733 3006 414% F Note: F = Favourable, U = Unfavourable Debtor ageing ratio template 2009/10 2010/11 2011/12 Trade Debtors 850,000 975,000 1,118,325 Sales 14,550,100 15,714,108 16,971,237 Debtor Days 21 23 24 Anticipate that the trade debtors for the 2011/12 financial period maintain the same growth as that which took place between 2009/10 to 2010/11. Assessment Task 2 Checklist Please ensure you submit Authentic, sufficient, valid and current evidence submitted by Student (to be completed by Assessor) Submit a completed actual-to-budget variance report according to organisational requirements? □ Yes □ No Submit a completed debtor ageing ratio for required periods? □ Yes □ No Submit a report detailing issues, reasons for variances, performance and recommendations? □ Yes □ No Prepare for and undertake the role-play presentation Role Play Checklist Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 52 of 53

BSBFIM601 - Manage Finance Student Assessment Booklet Please ensure you submit Authentic, sufficient, valid and current evidence submitted by Student (to be completed by Assessor) Summarises findings (issues, variances, financial performance) to the attendees □ Yes □ No Prioritise and presents recommendations □ Yes □ No demonstrates oral communication skills □ Yes □ No uses questioning and listening techniques □ Yes □ No demonstrates competent exchange of information □ Yes □ No uses appropriate conventions and protocols □ Yes □ No ensures the manager/CEO is clear about budgets □ Yes □ No Task Outcome: Satisfactory  Not Satisfactory  Assessor’s Signature Assessor’s Name Date: Angad Australian Institute of Technology CRICOS ID: 02970M., RTOID: 22073 SAB BSBFIM601 Version: October 2022 Page 53 of 53