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 orcolluded with any other student(s).

? I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

? I have correctly referenced all resources and reference texts throughout these assessment tasks.

Assessor declaration

? I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Student result responseFeedback

? My performance in this assessment task has been discussed and explained to me.

? I would like to appeal this assessment decision.

A copyof this pagemust be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 2 Part A: Financial Management planning project

This assessment task is in two parts.

For Part A, you are required to review existing financial information and prepare budgets.

For Part B, you are required to meet with the management team to discuss budgets, as well as reporting requirements and delegations.

Task summary

You are required, in the role of the General Manager for Grow Management Consultants, to review existing financial information and prepare budgets for the following financial year based on your review. This task will also require to you review existing financial software to ensure that it is meeting the company’s needs.

This task will be completed in the simulated work environment at your RTO.

Required

•Computer and Microsoft Office including Excel

•Access to the internet for research

•Profit and Loss 2015/16

•Strategic Business Plan

•Cash Flow Statement 2015/16•Costs and Income

•Finance Report template

Timing

The assessor will advise you of the due date of this submission.

Write in the due date below as advised by your assessor:

Submit

•Finance Report

•Financial Management Policy and Procedure

•Completed budgets for 2016/17

Assessment criteria

All tasks must be carried out correctly in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt/ s will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 2 Part A Instructions

Carefully read the following:

Grow Management Consultants is a consultancy business specializing in leadership consultancy and has been operational for the last five years. The company offers a range of services to assist companies to assess leadership behaviour of existing managers and performance metrics. They alsodesign and implement customized leadership programs based on the assessment. Services are offered Australia-wide.

The company employs a General Manager (you), 2 Principal Consultants (who are also Directors), 1 Senior Consultant, an Administration Officer and Receptionist.

Over the last two years, the company has diversified, andnowoffers regular professional development workshops on all aspects of leading and managing staff. These workshops are conducted approximately every 3 months in all major cities includingSydney, Brisbane and Melbourne. In 2014 – 2015, the company ran a total of 36 workshops. The company has also recently produced an E-book about leadership techniques.

The intention is to replace the workshops with the annual conference in the next financial year as the workshops were not well attended. Client feedback and continued business indicates a personalized, company focused approach in the form of consulting services is the service of choice.

The E-book has had reasonable sales, but there needs to be a wider selection of books, as well as more marketing. The plan is to generate $10,000 worth of sales for the e-books during the next financial year and increasing over time.

As the General Manager for the company and with responsibility for finances, you are currently completing the financial planning for the year ahead. This involves a review of the company’s business plan, previous year’s profit and loss statement, the current business plan and strategic directions and cash flow statements. Based on the review, you will be establishing budgets and allocating funds. In developing the budget, you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting services and executive search.

As per the business plan, the company plans to run an annual conference each year starting in 2017. The costs for the conference have been estimated by the Principal Consultant as set out in the Estimated Conference Costs document. Conference attendance is aimed at 100 people paying $750 each.

The Principal Consultant has also asked you to review the current accounting software used by business. The company is currently using MYOB but as it has grown, the Principal Consultant wishes to review whether this is the best accounting software for the business. He has also requested that the software have a cloud feature.

Complete the following activities:

1.Prepare a financial performance report

•Review the scenario information above, as well as Profit and Loss and Cash Flow Statements provided to you.

•Using this information, identify areas of the business that have generated a profit and those that have generated a loss.

•Prior to preparing your financial performance report, conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you and economic conditions and business trends that may have resulted in the profit or loss. You will be required to report on your findings in the financial performance report as outlined below.

•You should also conduct research on financial software systems as per the scenario information. Make notes for use in your report.

•Prepare a financial performance report for the Principal Consultants using the template provided by your assessor that includes an:

•Overview of the purpose of the report.•Analysis of the previous year’s (2015 – 2016) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.

•Analysis of overall business performance, as well as performance of each of the income streams for 2015 – 2016.

•Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.

•Analysis of the organisation’s goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates.

•An analysis of cash flow trends as per the cash flow statements.

•Review and analysis of at least three other financial software that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used.

2.Develop forecasts

•Develop budget forecasts and ensuring that the analysis of the previous year’s data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure.

•As per the organisation’s policy, the budget forecasts are to be submitted in Excel. Develop a suitable format within Excel for your budget.

•Ensure that your budget includes the estimated income and costs for the conference ande-book to be implemented in 2017. This is provided to you as a separate document.

•Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as per the data indicated in the document.

3.Circulate report and budgets to staff•Send the completed report and budgets to the Principal Consultants (your assessor) for discussion at the meeting in Part B.

Assessment Task 2Part AChecklist

Assessment Task 2 Part B:Meet with management team

Task summary

For this assessment task you are required to meet with the management team (your assessor) to discuss the budgets you have prepared for the upcoming financial year, as well as to confirm reporting requirements and financial delegations as documented in the financial management policy and procedure.

You are also required to research and report on as a guide for managers about the business’s financial compliance requirements, as well as tax liabilities.

This task will be completed in the simulated work environment at your RTO.

Required

•Computer and Microsoft Office•Access to the internet for research and to access web sites such as:

www.ato.gov.au

•Printer to print off meeting documents•Meeting space•Role-play participant (assessor)•Finance Report•Finance Policy and Procedures•Completed budgets for 2016/17 (developed in Assessment Task 2 Part A)

Timing

The assessor will advise you of the due date of this submission.

Write in the due date below as advised by your assessor:

Submit

You do not have to submit anything for this assessment task as your assessor will observe you conducting the meeting.

Assessment criteria

The tasks must be carried out such that they satisfy the assessment criteria in the checklist in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt/ s will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 2 Part B Instructions

Carefully read the following:

The Principal Consultant has approved the budget for the upcoming financial year 2016 – 2017. You are now required to meet with the Senior Managers to communicate the budgets you have developed.

So as to that financial risks are managed in relation to the misappropriation of funds and recording of transactions, you are also required to outline reporting requirement and financial delegations as outlined in the company’s financial policy and procedures, as well as research and report on the company’s compliance requirements and tax liabilities.

Complete the following activities:

1.Develop report on key financial compliance requirements and liabilities for tax in preparation for meeting

Research and report on the business’ key financial compliance requirements and liabilities for tax.

Develop a short report to provide to the management team at the meeting. The handout should explain:

•GST reporting requirements (the company is required to report quarterly)

•PAYG withholding obligations

•PAYG income tax instalment

•Payroll tax obligations (state government)

•Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff.

When you have developed your handout, print off a copy to provide to your assessor at the meeting.

1.Prepare for meeting

In preparation for the meeting, review the financial management policy and procedure that sets out reporting requirements and financial delegations.

You will be required to explain key reporting requirements to the Managers attending the meeting, as well as financial delegations. Print off a copy to take to the meeting to remind you of the key points in the financial policy and procedure.

Print off a copy of the budget you have developed in preparation for the meeting.

At the meeting you will need to:

•Discuss the budget you have developed and the rationale for the budget

•Discuss the amounts allocated to activity, including the conference and the e-book.

•Explain that there will be no more workshops conducted.

•Provide an outline of the financial policy and procedure so as to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised.

•Explain the company’s key financial compliance requirements and tax liabilities.

2.Conduct meeting

Conduct the meeting as per the requirements above, making sure you provide the team with all required documentation.

During the meeting you will need to demonstrate effective communication skills by:

•Speaking clearly

•Responding to questions as required

•Using active listening techniques to confirm or clarify information

At the meeting, your assessor will provide you with information that you will need to use to revise the budget.

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Assessment Task3Cover 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 orcolluded with any other student(s).

? I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

? I have correctly referenced all resources and reference texts throughout these assessment tasks.Assessor declaration

? I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Student result response

? My performance in this assessment task has been discussed and explained to me.

? I would like to appeal this assessment decision.

A copyof this pagemust be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 3:Budget review project

Task summary

This assessment task requires you to review the profit and loss statement for 2015 – 2016, as well as the cash flow statement for Grow Management Consultants.

This task will be completed in the simulated work environment at your RTO.

Required

•Computer and Microsoft Office

•Access to the internet for research

•Profit and Loss2016/17

•Cash Flow Statement 2016/17

Timing

The assessor will advise you of the due date of this submission.

Write in the due date below as advised by your assessor:

Submit

•Report on performance, including revisions to budget

Assessment criteria

The tasks must be carried out such that they satisfy the assessment criteria in the checklist in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt/ s will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues/ needs that may hinder them when attempting any part of the assessment.

Assessment Task 3 Instructions

Carefully read the following:

It is now 1 year later and you are required to review theprofit and loss account for 2016 – 2017, as well as the cash flow statement.

The Principal Consultant has also asked you to focus on reviewing the conference costs as, while there was very positive feedback from the conference and the company wishes to run it next year, there needs to be revisions to the budget and a potential price increase for the conference fee to make the conference profitable.

The Principal Consultant would like you to report on a proposed conference fee given a 10% increase in all the recorded costs for the conference as shown in the profit and loss statement (and that match the conference costs for the document you reviewed in Assessment Task 2) and assuming 70 people will attend the 2017 conference. The Principal Consultant would also like a 20% return on the conference costs.

Complete the following activity:

1.Analyse financial information

Analyse the information provided in the profit and loss account and cash flow statement including:

•Review of overall performance and gross/net profit margins.

•Calculation of variation in actual versus budgeted amounts for each income source.

•Calculation of variation in actual versus budgeted costs, focusing particularly on conference costs.

•Recommended revisions to the budget for conference costs for 2017 – 2018.

•Proposed conference fee for 2018 conference assuming attendance of 70 people and to make a profit of at least 20%.

Based on your analysis of the profit and loss account, develop a short report to send to the Principal Consultant that includes your analysis as above.

Email your report to the Principal Consultant (your assessor).

Assessment Task 3 Checklist