Trainer Assessment Pack (TAP)
Course and Unit Details
Course code
BSB60215
Course name
Advanced Diploma of Business
Unit code
BSBFIM601
Unit name
Manage finances
Assessment Plan
To demonstrate competence in this unit, the student must be assessed as satisfactory in each of the
following assessment tasks.
Evidence recorded
Evidence Type/ Method of assessment
Unit Assessment Task 1
Unit Knowledge Test (UKT)
Unit Assessment Task 2
Unit Skills Test (UST)
Unit Assessment Task 3
Unit Project (UP)
Instructions to complete the “Assessment Plan” Outcome Records
You are required to fill out this “assessment plan” outcome records in the assessment pack, when:
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The Student has completed and submitted all requirements for the assessment tasks for this
cluster or unit of competency.
The Student’s work has been reviewed and assessed by you.
You have recorded a satisfactory/unsatisfactory result for each assessment task within each
unit of competency.
Relevant and detailed feedback has been provided to Student.
Every assessment has a “Feedback to Candidate” section to record the following information. You
must also ensure that all sections are filled appropriately, such as:
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Result of Assessment (satisfactory or unsatisfactory)
Student name, signature and date
Assessor name, signature and date
Relevant and detailed feedback
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment Conditions
Unit purpose/application
This unit describes the skills and knowledge required to undertake budgeting, financial forecasting
and reporting and to allocate and manage resources to achieve the required outputs for the business
unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and
reporting on financial activity.
It applies to individuals who have managerial responsibilities which include overseeing the
management of financial and other resources across a business unit, a series of business units or
teams, or an organisation. It covers all areas of broad financial management. In a larger organisation,
this work would be supported by specialists in financial management.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
What the student can expect to learn by studying this unit of competency
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Plan for financial management
Establish budgets and allocate funds
Implement budgets
Report on finances
Training and assessment resources required for this unit of competency
The student will have access to the following:
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Learner guide
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PowerPoint presentation
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Unit Assessment Pack (UAP)
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Access to other learning materials such as textbooks
The resources required for these assessment tasks also included:
• Access to a computer, the Internet and word-processing system such as MS Word
• An operational business environment to implement the learning plan
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Computer technology and documentation as required
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Codes of practice and standards issued by government regulators or industry groups
Simulated assessment environments must simulate the real-life working environment where these
skills and knowledge would be performed, with all the relevant equipment and resources of that
working environment.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Submission instructions
Trainer/assessor must confirm the assessment submission details for each assessment task.
Academic integrity, plagiarism and collusion
Academic Integrity
Academic Integrity is about the honest presentation of your academic work. It means acknowledging
the work of others while developing your own insights, knowledge and ideas.
As a student, you are required to:
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Undertake studies and research responsibly and with honesty and integrity
Ensure that academic work is in no way falsified
Seek permission to use the work of others, where required
Acknowledge the work of others appropriately
Take reasonable steps to ensure other students cannot copy or misuse your work
Plagiarism
Plagiarism means to take and use another person's ideas and or manner of expressing them and to
pass them off as your own by failing to give appropriate acknowledgement. This includes material
sourced from the internet, RTO staff, other students, and from published and unpublished work.
Plagiarism occurs when you fail to acknowledge that the ideas or work of others are being used, which
includes:
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Paraphrasing and presenting work or ideas without a reference
Copying work either in whole or in part
Presenting designs, codes or images as your own work
Using phrases and passages verbatim without quotation marks or referencing the author or
web page
Reproducing lecture notes without proper acknowledgement
Collusion
Collusion means unauthorised collaboration on assessable work (written, oral or practical) with other
people. This occurs when a student presents group work as their own or as the work of someone else.
Collusion may be with another RTO student or with individuals or students external to the RTO. This
applies to work assessed by any educational and training body in Australia or overseas.
Collusion occurs when you work without the authorisation of the teaching staff to:
• Work with one or more people to prepare and produce work
• Allow others to copy your work or share your answer to an assessment task
• Allow someone else to write or edit your work (without rto approval)
• Write or edit work for another student
• Offer to complete work or seek payment for completing academic work for other students.
Both collusion and plagiarism can occur in group work. For examples of plagiarism, collusion and
academic misconduct in group work please refer to the RTO’s policy on Academic integrity, plagiarism
and collusion.
Plagiarism and collusion constitute cheating. Disciplinary action will be taken against students who
engage in plagiarism and collusion as outlined in RTO’s policy.
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
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Proven involvement in plagiarism or collusion may be recorded on students’
academic file and could lead to disciplinary action.
Other Important unit specific Information
N/A
Unit outcome
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This unit is not graded and the student must complete and submit all requirements for the
assessment task for this cluster or unit of competency to be deemed competent.
Students will receive a 'satisfactorily completed' (S) or 'not yet satisfactorily completed (NS)
result for each individual unit assessment task (UAT).
Final unit result will be recorded as competency achieved/competent (C) or competency not
yet achieved/not yet competent (NYC).
Prerequisite/s
Nil
Co-requisite/s
Nil
Foundation Skills
The Foundation Skills describe those required skills (learning, oral communication, reading, writing,
numeracy, digital technology and employment skills) that are essential to performance. Foundation
skills essential to performance are explicit in the performance criteria of this unit of competency.
Relevant Legislation
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Australian Human Rights Commission Act 1986
Age Discrimination Act 2004
Disability Discrimination Act 1992
Racial Discrimination Act 1975
Sex Discrimination Act 1984
The Privacy Act 1988 (Privacy Act) and Australian Privacy Principles (APPs)
Occupational Health and Safety Act 2004 – Applicable in Victoria
Work Health and Safety Act 2011
Principles of assessment and rules of evidence
All assessment tasks will ensure that the principles of assessment and rules of evidence are adhered
to.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
The principles of assessment are that assessment must be valid, fair, flexible,
reliable and consistent. The rules of evidence state that evidence must be sufficient, valid, current and
authentic.
Principles of Assessment
Validity:
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Each assessment task has been mapped to unit of competency requirements.
Refer to the ‘Unit Mapping’ document for more information.
Assessment tasks are varied and are required to be completed over a period of time and,
where required, on a number of occasions.
Practical observations provide opportunities for students to demonstrate both knowledge and
skills.
Assessment of knowledge and skills is integrated with their practical application;
Assessment to be based on evidence that demonstrates that a learner could demonstrate
these skills and knowledge in other similar situations.
Reliability:
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Reliability refers to the degree of consistency and accuracy of the assessment outcomes. That
is, the extent to which the assessment will provide similar outcomes for students with equal
competence at different times or places, regardless of the Assessor conducting the
assessment.
Trainer Assessment Pack provides benchmark answers for each assessment task to ensure
accuracy and consistency in the assessment decision-making process.
Flexibility:
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All students should be fully informed of the purpose of assessment, the assessment criteria,
methods and tools used, and the context and timing of the assessment.
A range of assessment methods are provided that are relevant to the unit’s context.
Assessment methods are appropriate to the context, the unit of competency and associated
assessment requirements, and the individual.
Fairness:
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Students are required to declare reasonable adjustments if they have any special needs or
considerations that may affect their ability to complete the assessments.
• Any reasonable adjustments that are required to be made to these assessment tasks must be
recorded in the reasonable adjustment strategies matrix section, in the unit pre-assessment
checklist for the relevant task.
• An assessment should not place unnecessary demands on students that may prevent a
student from demonstrating competence (for example, an assessment should not demand a
higher level of English language or literacy than that which is required to perform to the
workplace standard outlined in the competencies being assessed).
• The RTO informs the learner about the assessment process, and provides the learner with the
opportunity to challenge the result of the assessment and be reassessed if necessary.
• Students are provided with information about the appeals process in their Student Handbook.
Rules of Evidence
Validity:
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The Marking Guide provides a set of benchmark responses for each assessment task.
There is a clear relationship between the evidence requirements of the unit of competency
and the evidence on which the assessment judgment is made.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
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Assessors are to record assessment outcomes for each task in the
accompanying Unit Assessment Result Sheet (UARS).
Assessor observations require the Assessor to watch and observe the student complete
specific workplace-related activities in which they can demonstrate the skills and knowledge
required.
Sufficiency:
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The ‘Unit Mapping’ document demonstrates how assessment tasks align with unit of
competency requirements.
Some units may require the student to demonstrate assessment over a period of time and
more than once. These requirements will be made clear in the relevant assessment task.
All dimensions of competency are addressed.
Competency in different contexts is demonstrated.
The Assessor is assured that the quality, quantity and relevance of the assessment evidence
enables a judgment to be made of a learner’s competency.
Currency:
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Evidence for each assessment task will be gathered over the duration of the course.
Evidence for each assessment task must demonstrates the student’s current knowledge and
skills.
Workplace-based related tasks will allow the student to draw from current workplace
conditions and experiences, and students will be able to use technology, tools and equipment
specific to their workplace.
The Assessor is assured that the assessment evidence demonstrates current competency. This
requires the assessment evidence to be from the present or the very recent past.
Authenticity:
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Students are required to sign the Unit Assessment Task Cover Sheet, indicating that the work
they have submitted for assessment is their own.
The Assessor is assured that the evidence presented for assessment is the student’s own work.
AQF Level
AQF levels and the AQF levels criteria are an indication of the relative complexity and/or depth of
achievement and the autonomy required to demonstrate that achievement.
All assessment tasks must ensure compliance with the requirements of AQF level and the AQF level
criteria. For more information, please visit http://www.aqf.edu.au/
Further Information
For further information about this unit go to https://training.gov.au/Training/Details/BSBFIM601
And Assessment Guidelines and Trainer/Assessor Instructions to assess Student’s Work.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Additional Information
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This information will be managed by the provisions of the Privacy Act and the Freedom of
Information Act.
Students are required to satisfactorily complete and submit all assessment tasks that
contribute to the assessment for a unit.
Student will be provided with one more attempt to complete this Unit assessment pack
(UAP), if trainer/assessor deemed them not yet satisfactorily completed (NS) in any Unit
assessment task (UAT).
Unit Pre-Assessment Checklist (UPAC) will be reviewed by the trainer/assessor to ensure
the student is ready for the assessment.
Feedback regarding this Unit assessment pack (UAP) can be emailed to compliance and
quality assurance department/administration department in your RTO for continuously
improving our assessment and student resources.
Feedback to student
Feedback on students’ assessment performance is a vital element in their learning. Its purpose is to
justify to students how their competency was assessed, as well as to identify and reward specific
qualities in their work, to recommend aspects needing improvement, and to guide students on what
steps to take.
Feedback defines for students what their trainer/assessor thinks is important for a topic or a subject.
At its best, feedback should:
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Be provided for each Unit Assessment Task (UAT)
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Guide students to adapt and adjust their learning strategies
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Guide trainers/assessors to adapt and adjust teaching to accommodate students’ learning
needs
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Be a pivotal feature of learning and assessment design, not an add-on ritual
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Focus on course and unit learning outcomes
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Guide students to become independent and self-reflective learners and their own critics
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Acknowledge the developmental nature of learning
Please do not provide short/one-word comments, such as “Fantastic” or “Great work!”. Feedback
needs to be:
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Constructive - highlighting the strengths and weaknesses of a given piece of work, it should
set out ways in which the student can improve the work.
Timely – should be given while the assessed work is still fresh in a student's mind, before
the student moves on to subsequent tasks.
Meaningful- should target individual needs, be linked to specific assessment criteria, and be
received by a student in time to benefit subsequent work.
If students have not received proper feedback, they can speak to compliance and quality assurance
department/administration department in the RTO/person responsible for looking after the quality
and compliance services of the RTO.
For more information, please refer to RTO Staff Handbook.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Pre-Assessment Checklist
(UPAC)
UAT 1 – Unit Knowledge Test (UKT)
Purpose of the checklist
The pre-assessment checklist helps students determine if they are ready for assessment. The
trainer/assessor must review the checklist with the student before the student attempts the
assessment task. If any items of the checklist are incomplete or not clear to the student, the
trainer/assessor must provide relevant information to the student to ensure they understand the
requirements of the assessment task. The student must ensure they are ready for the assessment task
before undertaking it.
Section 1: Information for Trainers/Assessors
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Please make sure the student has completed the necessary prior learning before attempting
this assessment.
Please make sure you as a trainer/assessor have clearly explained the assessment process and
tasks to be completed.
Please make sure the student understands what evidence is required to be collected and how.
Please make sure the student knows their rights and the Complaints and Appeal process.
Please make sure the student has discussed any special needs or reasonable adjustments to
be considered during the assessment (refer to the Reasonable Adjustments Strategy Matrix).
Please make sure the student has access to a computer and the internet (if they prefer to type
the answers).
Please ensure that your student must have all the required resources needed to complete this
Unit Assessment Task (UAT). (Refer to Training and assessment resources for more
information).
Due date of this assessment task is according to the timetable.
In exceptional (compelling and compassionate) circumstances, an extension to submit an
assessment can be granted by the trainer/assessor.
Evidence of the compelling and compassionate circumstances must be provided together with
the request for extension to submit the assessment work.
Request for an extension to submit assessment work must be made before the due date of
this assessment task.
Section 2: Reasonable adjustments
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Students with carer responsibilities, cultural or religious obligations, English as an additional
language, disability etc. can request for reasonable adjustments.
Please note, academic standards of the unit/course will not be lowered to accommodate the
needs of any student, but there is a requirement to be flexible about the way in which it is
delivered or assessed.
The Disability Standards for Education requires institutions to take reasonable steps to enable
the student with a disability to participate in education on the same basis as a student without
a disability.
Trainer/Assessor must complete the section below “Reasonable Adjustment Strategies
Matrix” to ensure the explanation and correct strategy have been recorded and implemented.
Trainer/Assessor must notify the administration/compliance and quality assurance
department for any reasonable adjustments made.
All evidence and supplementary documentation must be submitted with the assessment pack
to the administration/compliance and quality assurance department.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Reasonable Adjustment Strategies Matrix (Trainer/Assessor to complete)
Category
Possible Issue
 LLN
 Speaking
 Reading
 Writing
 Confidence

NonEnglish
Speaking
Background
 Speaking
 Reading
 Writing

Cultural
background
 Confidence

Indigenous
 Knowledge and
understanding
 Flexibility
 Services

Inappropriate
training
and
assessment

Educational
background
 Limited study
skills
 Age
Reasonable Adjustment Strategy
(select as applicable)
 Verbal assessment
 Presentations
 Demonstration of a skill
 Use of diagrams
 Use of supporting documents such as wordlists
 Discuss with the student and supervisor (if applicable)
whether language, literacy and numeracy are likely to
impact on the assessment process
 Use methods that do not require a higher level of
language or literacy than is required to perform the job role
 Use short sentences that do not contain large amounts of
information
 Clarify information by rephrasing, confirm understanding
 Read any printed information to the student
 Use graphics, pictures and colour coding instead of, or to
support, text
 Offer to write down, or have someone else write, oral
responses given by the student
 Ensure that the time available to complete the
assessment, while meeting enterprise requirements, takes
account of the student’s needs
 Culturally appropriate training
 Explore understanding of concepts and practical
application through oral assessment
 Flexible delivery
 Using group rather than individual assessments
 Assessment through completion of practical tasks in the
field after demonstration of skills and knowledge.
 Make sure font size is not too small
 Trainer/Assessor should refer to the student’s experience
 Ensure that the time available to complete the
assessment takes account of the student’s needs
 Provision of information or course materials in accessible
format.
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a notetaker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift

Educational
background
 Disability
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Speaking
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Discuss with the Student previous learning experience
 Ensure learning and assessment methods meet the
student’s individual need
 Identify the issues
 Create a climate of support
 Ensure access to support that the student has agreed to
 Appropriately structure the assessment
 Provide information or course materials in accessible
format, e.g. a text book in braille
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a note
taker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift
Explanation of reasonable adjustments strategy used (If required)
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Assessment Task (UAT)
Assessment Task 1 - Unit Knowledge Test (UKT)
Assessment type:
• Written Questions
Instructions provided to the student:
Assessment task description:
• This is the first (1) unit of assessment task student has to successfully complete to be deemed
competent in this unit of competency.
• The Unit Knowledge Test is comprised of twenty-five (25) written questions.
• Student must respond to all the question and submit them to the Trainer/Assessor.
• Student must answer all questions to the required level, e.g. provide the number of points, to
be deemed satisfactory in this task.
• Trainer/Assessor is required to provide the feedback within two weeks and notify students
when results are available.
Applicable conditions:
• This knowledge test is untimed and are conducted as open book tests (this means student can
refer to textbooks during the test).
• Student must read and respond to all questions.
• Student may handwrite/use computers to answer the questions.
• Student must complete the task independently.
• No marks or grades are allocated for this assessment task. The outcome of the task will be
Satisfactory or Not Satisfactory.
• Trainer /Assessor must assess student’s written skills and knowledge as he/she complete this
assessment task.
• The trainer/assessor may ask student relevant questions on this assessment task to ensure
that this is his/her own work.
Resubmissions and reattempts:
• Where a student’s answers are deemed not satisfactory after the first attempt, a resubmission
attempt will be allowed.
• Student may speak to their Trainer/Assessor if student have any difficulty in completing this
task and require reasonable adjustments (e.g. can be given as an oral assessment).
• For more information, please refer to RTO Staff Handbook.
Location:
• This assessment task may be completed in a classroom, learning management system (i.e.
Moodle), workplace, or independent learning environment.
• Trainer/Assessor will provide student further information regarding the location for
completing this assessment task.
Purpose of the assessment
This assessment task is designed to evaluate student’s knowledge essential to manage finances in a
range of contexts and industry settings & Knowledge regarding to the following:
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Knowledge to regulate allocations for resources from previous financial data.
Knowledge to analysis statutory requirements for compliance and liabilities for tax.
Knowledge to identify risks by checking misappropriation of funds.
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
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Knowledge to check the existing software for financial management.
Knowledge to classify compliance with due diligence.
Knowledge to analysis reasons for previous profit and loss.
Knowledge to make approximations of new items for inclusion in budget.
Knowledge to ensure financial viability of the organisation.
Knowledge to establish areas which have generated a profit or loss.
Knowledge to estimate the effectiveness of financial management processes.
Knowledge to deal with contingencies from revised budgets.
Knowledge to inspect cash flow trends.
Knowledge to make budgets according to organisational requirements and statutory
requirements.
Knowledge to assess business plan to generate resources in the next financial cycle.
Knowledge to certify structure and format of reports are clear and conform to the
requirements.
Instructions for answering written questions:
• Student must have to complete a written assessment consisting of a series of questions.
• It is expected from students to correctly answer all the questions.
• Answers must demonstrate an understanding and application of relevant concepts, critical
thinking, and good writing skills.
• Student must be concise and to the point and write answers according to the given word-limit
to each question and do not provide irrelevant information.
• Student must use non-discriminatory language. The language used should not devalue,
demean, or exclude individuals or groups on the basis of attributes such as gender, disability,
culture, race, religion, sexual preference or age. Gender inclusive language should be used.
• Assessor should not accept answers copied directly from texts without acknowledgement of
the text.
How trainer/assessor will assess the work?
This assessment task requires the student to answer all the questions.
• Answers must demonstrate the student’s understanding and knowledge of the unit.
• If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
• If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
• Once all assessment tasks allocated to this Unit of Competency have been undertaken,
trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome
will be either Competent (C) or Not Yet Competent (NYC).
• The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Instructions for assessors:
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Assesses each student’s answers in accordance with the guidelines provided in the “Trainer
Assessment Pack”.
Should not accept answers copied directly from texts without acknowledgement of the text
Assess each student’s answers and provide feedback within two weeks of submission
Notify each student that they are Satisfactory/ Not Satisfactory via the learning management
system.
Submit assessed unit assessment pack to student administration within one week of marking,
so that results can be uploaded into the student management system.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment Task 1 - Unit Knowledge Test (UKT)
Instructions for trainers/assessors:
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The following forms the basis of specific evidence that you need to collect from students for
assessment in this assessment task.
The task and specific assessment requirements that are given to students are also outlined.
Refer to all the red, bold and italic text for a guide to suggested answers for assessments
and also for instructions on how to use the assessment tools.
Ensure all outlined conditions of assessment requirements are met.
For each assessment task a Unit Assessment Result Sheet (UARS) form is to be completed.
This is located at the end of each assessment task.
This Unit Assessment Result Sheet (UARS) allows the trainer/assessor to record the following
items correctly:
o Outcome of the assessment task as either Satisfactory (S) or Not Satisfactory (NS).
o Feedback to candidate
o Student declaration
o Trainer/Assessor declaration
The trainer/assessor and the student must sign the Unit Assessment Result Sheet (UARS) to
show that the student was provided with the task outcome.
The mapping document should be referred to identify what aspects of the Unit of
Competency are being addressed by each assessment task.
Once all assessment tasks allocated to this Unit of Competency have been undertaken, an
Assessment plan is to be completed to record the unit outcome. The outcome will be either
Competent (C) or Not Yet Competent (NYC).
The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Each “Assessment Plan” should be referred to note the Unit Assessment Result Sheet (UARS)
outcome as Satisfactory (S) or Not Satisfactory (NS), and this information then transferred
to the final result in the “Assessment Plan” as Competent (C) or Not Yet Competent (NYC).
If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
The following Information is attached to all the assessment tasks:
o Assessment type
o Assessment task description
o Applicable conditions
o Resubmissions and reattempts
o Location
o Instructions for answering the assessment task
o How trainers/assessors will assess the work
o Task-specific instructions for students
Assessment task Instructions
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There are twenty-five (25) written questions in this assessment pack.
Student must attempt all the questions according to the given Instructions/guidelines.
Instructions/guidelines such as word-limit, what is expected from the student, example as
an answer etc. have been given to each question.
Student must complete this task individually.
Student’s answers must demonstrate their understanding and application of relevant
concepts, critical thinking, and good writing skills.
Questions:
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 1: Explain the following methods of analysing a financial statement,
in 30-50 words each:
a.
b.
c.
d.
Vertical analysis
Horizontal Analysis
Ratio Analysis
Trend Analysis
Answer may vary but must include the following information:
•
Explanation of following methods of analysing a financial statement:
o Vertical analysis
o Horizontal Analysis
o Ratio Analysis
o Trend Analysis
Example:
a. Vertical Analysis
Vertical analysis is a method of financial statement analysis in which each entry for each of the
three major categories of accounts, or assets, liabilities and equities, in a balance sheet is
represented as a proportion of the total account. Vertical analysis is also used across other
financial statements as a percentage measure
b. Horizontal Analysis
Horizontal analysis is the comparison of data sets for two periods. Financial statements users
review the change in data much like an indicator. Optimistic analysts look for growth in revenue,
net income and assets in addition to reductions in expenses and liabilities.
c. Ratio Analysis
Ratios express a relationship between two more financial statement totals and compare to
budgets and industry benchmarks. Five common categories of ratios exist: liquidity, asset
turnover, leverage, profitability and solvency.
d. Trend Analysis
A trend analysis is an aspect of technical analysis that tries to predict the future movement of a
stock based on past data. Trend analysis is based on the idea that what has happened in the past
gives traders an idea of what will happen in the future.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 2: What are the legislative requirements that a public authority must
comply with to maintain financial probity? Write your answer in 100-150 words.
Answer may vary but must include the following information:
•
Requirements for maintaining financial probity
Example:
A public authority must be able to demonstrate to suppliers and the community that it conducts
its procurement activities with high standards of probity and accountability.
Probity requires that a public authority conduct its procurement activities ethically, honestly and
fairly. Elements of a procurement culture that promotes and demonstrates high standards of
probity include the following:
•
•
•
•
•
•
•
Expected behaviour is articulated and enforced.
Officers involved are skilled, knowledgeable and experienced.
Appropriate checks and balances are in place at various stages in the procurement
process.
The concept of conflict of interest is well understood and strategies are in place to identify
and manage potential issues.
Communication with suppliers is consistent and does not disadvantage or advantage one
supplier over others.
Officers are not compromised in their ability to act, or to be seen to act, impartially.
Confidentiality of supplier information and evaluation processes is secure.
Question 3: Explain the following principles of accounting and financial systems, in 40-60 words each:
a.
b.
c.
d.
Accrual principle
Cost principle.
Going concern principle.
Revenue recognition principle.
Answer may vary but must include the following information:
•
Explanation of following principles of accounting and financial systems:
o Accrual principle
o Cost principle.
o Going concern principle.
o Revenue recognition principle.
Example:
Principles of accounting and financial systems:
a. Accrual principle. This is the concept that accounting transactions should be recorded in
the accounting periods when they actually occur, rather than in the periods when there
are cash flows associated with them. This is the foundation of the accrual basis of
accounting.
b. Cost principle. This is the concept that a business should only record its assets, liabilities,
and equity investments at their original purchase costs. This principle is becoming less
valid, as a host of accounting standards are heading in the direction of adjusting assets
and liabilities to their fair values.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
c. Going concern principle: This is the concept that business will remain in operation for the
foreseeable future. This means that you would be justified in deferring the recognition of
some expenses, such as depreciation, until later periods. Otherwise, you would have to
recognize all expenses at once and not defer any of them.
d. Revenue recognition principle. This is the concept that you should only recognize revenue
when the business has substantially completed the earnings process. So many people
have skirted around the fringes of this concept to commit reporting fraud that a variety
of standard-setting bodies have developed a massive amount of information about what
constitutes proper revenue recognition.
Question 4: What are the advantages of a financial statement analysis? Write your answer in 50-100
words.
Answer may vary but must include the following information:
•
Advantages of financial statement analysis
Example:
Some of the different advantages of financial statement analysis may include the following:
•
provides an idea to the investors about deciding on investing their funds in a particular
company.
•
regulatory authorities like International Accounting Standards Board (IASB) can ensure
the company is following the required accounting standards.
•
helpful to the government agencies in analysing the taxation owed to the firm.
•
the company is able to analyse its own performance over a specific time period.
Question 5: How are the following calculated in a Profit and Loss Statement and how can they assist
in reviewing previous profit and loss?
a.
b.
c.
d.
Gross profit
Gross profit margin
Operating profit
Net profit
Write your answer in 100-150 words.
Answer may vary but must include the following information:
•
Method to calculate the following using profit and loss report:
o Gross profit
o Gross profit margin
o Operating profit
o Net profit
Example:
•
Gross
profit
=
revenue
–
cost
of
goods
sold
The difference between total sales and the cost of producing the goods or services you
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
sell. An indicator of overall production efficiency and a key figure for setting prices and
sales targets.
•
Gross
profit
margin
=
(gross
profit
÷
revenue)
x
100
Shows what proportion of gross profit you keep from each dollar of revenue generated
(e.g. 20% gross profit margin means you keep a gross profit of $0.20 for every $1.00 of
revenue generated).
•
Operating
profit
=
gross
profit
–
operating
expenses
Profit generated from core operations. It does not include expenses from interest or taxes
(often called 'earnings before interest and tax' or EBIT).
•
Net
profit
=
operating
profit
–
(taxes
+
interest)
Also known as the 'bottom line', net profit is the total amount earned (or lost) after paying
all expenses.
Question 6: How often and why should you review a business plan? Write your answer in 100-150
words.
Answer may vary but must include the following information:
•
When to review your business plan
Example:
The process of reviewing and analysing is called the business plan cycle. The cycle could be a
continuous process with the plan being regularly updated and monitored. Most businesses will
use an annual plan broken down into four quarterly operating plans. Businesses that are heavily
sales driven can use a monthly operating plan, and weekly targets and reviews if needed.
Major events in your business' target marketplace (eg changes to competitors or customers) or in
the broader environment (eg new legislation) should trigger a review of your strategic objectives.
Regardless of whether or not there are fixed time intervals in your business plan, it must be part
of a rolling process that enables Regular performance assessment against a forecast.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 7: How would you use the following ratios to analyse the
organisation’s cash flow? Explain in 40-60 words each:
a. Cashflow solvency
b. Cashflow margin
c. Cashflow return on assets
Answer may vary but must include the following information:
•
Way to use the following ratios to analyse the organisation’s cash flow:
o Cashflow solvency
o Cashflow margin
o Cashflow return on assets
Example:
a. Cash flow solvency
This ratio measures the organisation’s ability to pay debts, and therefore indicates financial
strength or problems, and give you the ability to implement strategies for paying your debts. A
low ratio indicates the organisation may not be able to meet debts. The formula is:
Cashflow solvency = Cashflow from operating activities / Total liabilities
b. Cashflow margin
The cashflow margin measures how an organisation converts sales to cash. The higher the
margin, the more cash is available to engage in business activities to meet organisational
objectives. The Formula is:
Cashflow margin = Cashflow from operating activities / Sales
c. Cashflow return on assets
The cashflow return on assets (ROA) ratio enables managers to see how efficient the organisation
is compared to similar organisations. The return can also be compared with past ratios to identify
trends. The formula is:
Cashflow return on assets = Cashflow from operating activities / Total assets
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 8: Explain each of the below listed obligations a business has with
regards to taxation in Australia. Write your answer in 40-60 words for each
Answer may vary but must include the following information:
•
Obligations of a business have with regards to taxation in Australia
Obligation
Explanation with regards to taxation in Australia
Pay as You Go (PAYG)
Pay as You Go (or PAYG) is the method used in Australia for the payment
of business taxation. Business tax is the system used to calculate and
pay withholding amounts for your taxation obligations. In most cases,
businesses will pay instalments based on their income - with
the
instalment rates calculated by the ATO.
Good and Services Tax
(GST)
GST is a tax charged on all goods and services sold in Australia. There
are some goods that may be exempt to GST. Generally, only businesses
with an income over $75,000 need to register to pay GST. Again, this
will be a net cash outflow from your business.
Fringe Benefits Tax
(FBT)
FBT is paid by any business that provides any non-monetary
employment benefits. You must self-assess your fringe benefits tax
(FBT) payable when you lodge your FBT return at the end of each FBT
year (beginning 1 April and ending 31 March).
Business Activity
Statement (BAS)
A Business Activity Statement is a statement that is submitted to the
ATO indicating all business activity of the business, which is generally
used to calculate taxation obligations. BAS can now be submitted online
to simplify the overall process.
Superannuation
Guaranteed Scheme
Superannuation is money that businesses must pay for workers to
provide for their retirement. Generally, if an employer pays an
employee $450 or more before tax in a calendar month, the employer
must pay super on top of their wages. The minimum payment an
employer must pay is called the super guarantee (SG): The SG is
currently 9.5% of an employee’s ordinary time earnings
Question 9: When choosing an accounting software for your business, what would you consider as
important factors? Identify any six (6) in 50-100 words
Answer may vary but may include the following information:
•
Any six (6) out of seven (7) questions that needs consideration when choosing an accounting
software for your business
Example:
Does the system calculate all payroll requirements (PAYE, annual leave, long service leave
etc.)?
2. Does the system track stock, work in progress, orders, jobs and other task management
requirements?
3. Will the system be able to handle multiple bank accounts?
4. Does the system need to handle foreign currency?
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1.
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Does the system track separate financial records for each business or department within
the business?
6. Does the system allow for interface with other computer systems such as online payments?
7. Does the system keep detailed records on customers including what they buy, how often
they buy and when they buy (often referred to as a Customer Relationship Manager
system)?
5.
Question 10: How is an organisation's financial performance measured and managed? Write your
answer in 50-100 words.
Answer may vary but must include the following information:
•
Ways to measure organisation's financial performance
Example:
The following measurements can be used to evidence achievements in effective financial
management in organisation:
•
•
•
•
•
•
•
the board of trustees agrees budgets annually
there are quarterly reports on accounts
the board receives quarterly finance reports comparing actual income and expenditure
against the budget
there are accurate minutes of financial decisions and action to be taken
the financial procedures manual is kept up to date and reviewed every two years
ensure banking procedures are in place and up-to-date
ensure compliance with Inland Revenue and Charities Act regulations.
Question 11: What are the requirements of the Australian Tax Office when establishing a new
business? Explain in 50-100 Words.
Answer may vary but must include the following information:
•
Requirements of the Australian Tax Office to establish a business
Example:
Following are the requirement of the Australian Tax Office to establish a business:
•
•
•
•
•
•
Must apply for a tax file number (TFN) and use it when lodging its annual tax return
Must be registered for GST if its annual GST turnover is $75,000 or more
Must lodge an annual company tax return
Pay income tax by instalments through the Pay As You Go (PAYG) instalments system
Pay tax at the company tax rate
Must pay super guarantee contributions (SGC) for any eligible workers. This includes
directors of the company, and any other company directors.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 12. Answer the following:
a. What Is Financial Statement Fraud? Write your answer in 30-50 words.
b. How can reconciliation of bank accounts and management review of periodic account
reconciliations (bank reconciliations, petty cash, etc.) and bank statements manage
misappropriation of funds? Write your answer in 50-100 words.
Answer may vary but must include the following information:
•
•
Definition of Financial Statement Fraud
Reconciliation of bank accounts and management review of periodic account
reconciliations (bank reconciliations, petty cash, etc.) and bank statements manage
misappropriation of funds
Example:
a. The Association of Certified Fraud Examiners (ACFE) defines fraud as "deception
or misrepresentation that an individual or entity makes knowing that the
misrepresentation could result in some unauthorized benefit to the individual or to the
entity
or
some
other
party."
b. Bank reconciliations provide insight into the differences between an organisation’s cash
balance per the balance sheet and per the bank statement, while also proving the
completeness and accuracy of the data recorded in the organization’s cash
ledger. Depending on the size of the organization and the volume of cash transactions,
bank reconciliations may be performed anywhere from a daily to monthly
basis. Adequate separation of duties should also be implemented in the bank
reconciliation process, in that the cash bookkeeping, bank reconciliation and check signer
functions should be separated.
Question 13: Why is it required to use previous financial data to determine allocations for resources
for the next budget? Explain in 50-100 words.
Answer may vary but must include the following information:
•
Reason to use previous financial data to determine allocations for resources for next
budget
Example:
It is required for Financial forecasting. Financial forecasting allows management teams to
anticipate end results based on previous financial data. Companies use financial forecasting to
determine how they should allocate their budgets for a future period. Unlike budgeting, financial
forecasting does not analyze the variance between financial forecasts and actual performance.
Financial forecasts are updated regularly when there is a change in operations, inventory and
business plan. A management team can use financial forecasting and take immediate action
based on the forecast data.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 14: How can planning help a business to become viable and
profitable? Write your answer in 50-100 words.
Answer may vary but must include the following information:
•
Way a business support planning helps the business become viable and profitable
Example:
Effective business support planning becomes one of the most critical activities within successful
small business maintenance and development. By developing a complete business support plan,
company owners, managers and executives get more chances to make their businesses viable,
stable and profitable.
A business support plan gives a clear explanation on how each of the business activities
maintained by a company can fit together to produce profits and how it will be managed.
Question 15: Identify any ten (10) steps to follow when preparing a budget to ensure it meets
organisational and statutory requirements? Write your answer in 50-100 words.
Answer may vary but must include the following information:
•
Ten (10) of thirteen (13) basic steps to follow when preparing a budget
Example:
1. Review the assumptions about the company's business environment that were used as the
basis for the last budget, and update as necessary.
2. Review bottlenecks
3. Determine the most likely amount of funding that will be available during the budget
period
4. Determine whether any step costs will be incurred during the likely range of business
activity in the upcoming budget period, and define the amount of these costs and at what
activity levels they will be incurred.
5. Create budget package.
6. Issue budget package.
7. Obtain revenue forecast
8. Obtain department budgets
9. Obtain capital budget requests
10. Update the budget model
11. Review the budget
12. Process budget iterations
13. Issue the budget
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Question 16: Identify and explain five (5) circulation methods that are used to
circulate budgets to managers and supervisors of the organisations. Write your answer in 50-100
words
Answer may vary but may include the following methods:
•
Five (5) circulation methods that are used to circulate budgets to managers and
supervisors of the organisation
Example:
Circulation methods include:
1. formal meetings – where the recipients are identified and presented with specific
budgetary information relevant to their roles and responsibilities
2. group meetings/sessions – where a specific focus is required and those attending have a
common area or linked activity
3. written communication – where the information is sent via paper-based letter or report
4. face-to-face presentations – where an audience can be selected, and videoconferencing
may be used
5. electronic communication – where emails are sent to individuals or groups, or
documentation is made available on the wiki or intranet.
Question 17: Assume that you are working as an Accountant for an organisation. The organisation
wants to conduct a financial statement audit as part of closing the financial books and before filing an
income statement during closing.
Explain in 350-400 words, the four (4) steps that you will take to conduct the audit.
Answer may vary but must include the following information:
•
Four (4) steps that you will take to conduct the audit
Example:
a. Statement Calculation
The first step in auditing financial statements is to verify the summary calculations. Start
with the income section, confirming that the total revenue amount is equal to the sum of
the income lines. Repeat this process for the expense category. Manually calculate the
difference between the revenue and expense numbers to verify the equity section, as
owner's equity is simply the difference between the revenue and expenses.
b. Income Details
Once you determine that the calculations on the income statement itself are accurate,
you need to review the detail that contributes to the figures. Pull summary transaction
reports from the general ledger for each revenue account. Review the overall data on the
summary reports for accuracy. Run transaction-level reports for the accounts so that you
can view the details to confirm that the summary report figures are accurate. Each
transaction-level report shows you what has posted to the account. Compare the
transactions in the ledger to the hard copy files, such as invoices or check stubs that
support the journal entries, to confirm that they were posted correctly
c. Expense Review
Pull ledger reports of the transactions in the expense accounts. Review the transaction
detail reports for each expense account to confirm that the expense totals on the income
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
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statement report are accurate compared to the ledger activity. View the detail level in the
ledger for the individual transactions posted in the period to confirm that they were
recorded properly. Check the dates on the expenses to be sure that they apply to the
period in question, and manually verify the calculations by adding them up yourself, / to
ensure that the recorded totals are correct.
d. Paper Audit Sampling
When you complete a full audit of the income statement, select a few transactions from
each relevant account, such as a few credits posted to each revenue account and a few
payments issued from each expense account. Request the documentation of the
transactions you selected to complete a sample audit of the account activity. The
documentation in question would consist of check stubs and invoices or paperwork filed
to support journal entries. Check the calculations of the invoices or the payment vouchers,
and verify that the entries in the system match the documentation.
Question 18: What are five (5) types of financial statement fraud that you can find when reviewing
financial statements.
Answer may vary but must include the following information:
•
Five (5) basic types of financial statement fraud
Example:
Five basic types of financial statement fraud exist:
1.
fictitious sales
2.
improper expense recognition
3.
incorrect asset valuation
4.
hidden liabilities and
5.
unsuitable disclosures
Question 19: Explain in 150-200 words, the “Budget Revision Process”.
Answer may vary but must include the following information:
•
Explanation of the “Budget Revision Process”
Example:
Analyse Budget
Before any revisions or changes take place, the revision process needs to include learning how the
business budget is currently functioning. During the analysis, the budget specialist or business
owner needs to find out what the business needs in terms of expenses and earnings to operate
without going into debt.
Make Changes
Make gradual changes to the budget by cutting down expenses in order to use the money to pay
off liabilities or provide funding in categories in the budget that is in need. If there are numerous
changes, make some changes first and let the new budget function for a few months.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Monitor and Revise
Simply because the changes have been made does not mean that the budget is now functioning
ideally and successfully. The budget needs to be monitored frequently to ensure that no one is
spending beyond each category's limitations or continuing to spend frequently on luxurious
expenses, like business dinners or travels.
Question 20: Considering yourself as an Accountant, answer the following questions:
a. What is due diligence? (10-20 words)
b. When should you perform due diligence? Write your answer in 30-50 words.
c. What should you review? Write your answer in 30-50 words.
Answer may vary but must include the following information:
•
•
•
Definition of due diligence
Time to perform due diligence
Things to review
Example:
a. Due diligence is the assessment of the legal, financial, and business risks associated with
a merger or acquisition.
b. Due diligence starts the first time you meet a potential candidate for a business
combination, even when you first review data on the firm. Every step along the way, you
should be assessing whether a combination of your firm and theirs would meet your
financial and business goals.
c. Generally, a due diligence process will review historical financial data, details on owners
and employees, client categories and specific material clients, service methodologies,
benefit plans, policies, procedures, the quality-control system, legal matters such as
litigation and licensing, and the condition of assets being acquired.
Question 21: Answer the following:
a. What is the benefit of conducting a risk analysis for financial statement items and its
accompanying notes? Write your answer in 30-50 words.
b. Explain in 250-300 words, the four (4) practical steps in conducting a risk analysis.
Answer may vary but may include the following information:
•
•
Benefit of conducting a risk analysis for financial statements item and its accompanying
notes
Four (4) practical steps in conducting a risk analysis
Example:
a. Conducting a risk analysis for each financial statement item and its accompanying notes
can assist management to prioritise the resources allocated to the preparation of the
financial statements (including the extent of quality assurance required) and to determine
whether there is scope to improve controls.
b. The following provides four practical steps in conducting a risk analysis:
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Step 1: Conduct inherent risk assessment
I.
Assess the financial statements item against key inherent reporting risk factors.
Each entity should decide on the inherent risk factors most appropriate to its own
operations and circumstances and the weightings to be applied to each factor.
Examples of factors that can impact inherent risk are materiality, the level of
judgment involved, disparity of data sources and results of previous audits by
internal audit and the ANAO.
II.
Based on the results of Step (a), determine an overall inherent risk of High,
Medium or Low.
Step 2: Conduct residual risk assessment
The effectiveness of existing controls is then assessed and an overall residual reporting risk rating
of High, Medium or Low is assigned for each financial statement item. The risk rating is the same
as the ones used in Step 1.
Step 3: Summarise all risk ratings
Collate all individual risk ratings for each financial statement item to give an overall picture of the
reporting risk for all financial statements items.
Step 4: Determine actions required
The final step involves determining the action required for the entity taking into account the risk
rating for each financial statement item. This may include assigning a risk owner.
Question 22: Answer the following:
a. Explain in 100-150 words, the significance and objective of “Accounting standard AASB 101”.
b. Where is the standard Aus 1.1 applicable? Write your answer in 30-50 words.
Answer may vary but must include the following information:
•
•
Significance and objective of “Accounting standard AASB 101”
Application of standard Aus 1.1
Example:
a. The Australian Accounting Standards Board made Accounting Standard AASB 101
Presentation of Financial Statements under section 334 of the Corporations Act 2001 on
15 July 2004. This compiled version of AASB 101 applies to annual reporting periods
beginning on or after 1 January 2006. It incorporates relevant amendments contained in
other AASB Standards made by the AASB up to and including 8 September 2005.
The objective of this Standard is to prescribe the basis for presentation of general purpose
financial reports, to ensure comparability both with the entity’s financial reports of
previous periods and with the financial reports of other entities. To achieve this objective,
this Standard sets out overall requirements for the presentation of financial reports,
guidelines for their structure and minimum requirements for their content. The
recognition, measurement and disclosure of specific transactions and other events are
dealt with in other Australian Accounting Standards.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
b. Aus1.1 This Standard applies to:
(a) each entity that is required to prepare financial reports in accordance with Part 2M.3
of the Corporations Act;
(b) general purpose financial reports of each reporting entity; and
(c) financial reports that are, or are held out to be, general purpose financial reports.
Question 23: Answer the following:
a. Explain in 30-50 words, “IPSAS 1 - Presentation of Financial Statements “.
b. What are the key differences between IPSAS 1 and AASB 101? Write your answer in 50-100
words.
Answer may vary but must include the following information:
•
•
Definition of “IPSAS 1 - Presentation of Financial Statements “
Key differences between IPSAS 1 and AASB 101
Example:
a. International Public-Sector Accounting Standards (IPSASs) are issued by the International
Public-Sector Accounting Standards Board of the International Federation of Accountants.
IPSAS 1 Presentation of Financial Statements (May 2000) is drawn primarily from IAS 1
Presentation of Financial Statements (revised 1997).
b. The main differences between IPSAS 1 and AASB 101 are:
(a) AASB 101 allows the presentation of either a statement showing all changes in net
assets/equity, or a statement showing changes in net assets/equity other than those
arising from capital transactions with owners and distributions to owners in their capacity
as owners. IPSAS 1 requires the presentation of a statement showing all changes in net
assets/equity; and
(b) IPSAS 1 allows the presentation of “extraordinary items”. In contrast, AASB 101 does
not permit extraordinary items to be presented.
Question 24: Explain in 150-200 words, the “Financial Management and Accountability Act 1997 (FMA
Act)”.
Answer may vary but must include the following information:
•
Explanation of the “Financial Management and Accountability Act 1997 (FMA Act)”
Example:
The Financial Management and Accountability Act 1997 (FMA Act) provides the framework for
the proper management of public money and public property by the Executive arm of the
Commonwealth. Public money and public property is defined in the Act as money and property in
the custody or control of the Commonwealth.
The principal matters covered by the FMA Act are
• the responsibilities and powers of the Minister for Finance and Deregulation
• the collection and custody of public money and the control and management of public
property
• the accounting framework, Parliamentary appropriations and certain payments matters
• borrowing and investment powers of the Finance Minister and the Treasurer
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
•
•
•
special responsibilities of Chief Executives of Agencies for the control and management of
public money and public property
audit of the financial statements of the Commonwealth as a whole and of individual
Commonwealth Agencies by the Auditor-General
delegation of powers or functions of the Finance Minister, the Treasurer and Chief
Executives.
Question 25: Assume that a manufacturer determines that its cost of electricity and supplies for the
factory are approximately $10 per machine per hour (MH). It also knows that the factory
supervision, depreciation, and other fixed costs are approximately $40,000 per month. Typically, the
production equipment operates between 4,000 and 7,000 hours per month. Based on this
information, what would be the flexible budget for each month?
Answer must include the following information:
•
Calculation on flexible budget
Example:
The flexible budget formula is:
Fixed cost + (cost of electricity and supplies x Machine hours for the month)
Example:
If machine hours were 4,500, the flexible budget would be:
$85,000 (40,000 + ($10 x 4,500)
Page | 28
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Pre-Assessment Checklist
(UPAC)
UAT 2 – Unit Project (UP) – Prepare Budgets
Purpose of the checklist
The pre-assessment checklist helps students determine if they are ready for assessment. The
trainer/assessor must review the checklist with the student before the student attempts the
assessment task. If any items of the checklist are incomplete or not clear to the student, the
trainer/assessor must provide relevant information to the student to ensure they understand the
requirements of the assessment task. The student must ensure they are ready for the assessment task
before undertaking it.
Section 1: Information for Trainers/Assessors
•
•
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•
•
•
•
•
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•
•
Please make sure the student has completed the necessary prior learning before attempting
this assessment.
Please make sure you as a trainer/assessor have clearly explained the assessment process and
tasks to be completed.
Please make sure the student understands what evidence is required to be collected and how.
Please make sure the student knows their rights and the Complaints and Appeal process.
Please make sure the student has discussed any special needs or reasonable adjustments to
be considered during the assessment (refer to the Reasonable Adjustments Strategy Matrix).
Please make sure the student has access to a computer and the internet (if they prefer to type
the answers).
Please ensure that your student must have all the required resources needed to complete this
Unit Assessment Task (UAT). (Refer to Training and assessment resources for more
information).
Due date of this assessment task is according to the timetable.
In exceptional (compelling and compassionate) circumstances, an extension to submit an
assessment can be granted by the trainer/assessor.
Evidence of the compelling and compassionate circumstances must be provided together with
the request for extension to submit the assessment work.
Request for an extension to submit assessment work must be made before the due date of
this assessment task.
Section 2: Reasonable adjustments
•
•
•
•
•
•
Students with carer responsibilities, cultural or religious obligations, English as an additional
language, disability etc. can request for reasonable adjustments.
Please note, academic standards of the unit/course will not be lowered to accommodate the
needs of any student, but there is a requirement to be flexible about the way in which it is
delivered or assessed.
The Disability Standards for Education requires institutions to take reasonable steps to enable
the student with a disability to participate in education on the same basis as a student without
a disability.
Trainer/Assessor must complete the section below “Reasonable Adjustment Strategies
Matrix” to ensure the explanation and correct strategy have been recorded and implemented.
Trainer/Assessor must notify the administration/compliance and quality assurance
department for any reasonable adjustments made.
All evidence and supplementary documentation must be submitted with the assessment pack
to the administration/compliance and quality assurance department.
Page | 29
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Reasonable Adjustment Strategies Matrix (Trainer/Assessor to complete)
Category
Possible Issue
 LLN
 Speaking
 Reading
 Writing
 Confidence

NonEnglish
Speaking
Background
 Speaking
 Reading
 Writing

Cultural
background
 Confidence

Indigenous
 Knowledge and
understanding
 Flexibility
 Services

Inappropriate
training
and
assessment

Educational
background
 Limited study
skills
 Age
Reasonable Adjustment Strategy
(select as applicable)
 Verbal assessment
 Presentations
 Demonstration of a skill
 Use of diagrams
 Use of supporting documents such as wordlists
 Discuss with the student and supervisor (if applicable)
whether language, literacy and numeracy are likely to
impact on the assessment process
 Use methods that do not require a higher level of
language or literacy than is required to perform the job role
 Use short sentences that do not contain large amounts of
information
 Clarify information by rephrasing, confirm understanding
 Read any printed information to the student
 Use graphics, pictures and colour coding instead of, or to
support, text
 Offer to write down, or have someone else write, oral
responses given by the student
 Ensure that the time available to complete the
assessment, while meeting enterprise requirements, takes
account of the student’s needs
 Culturally appropriate training
 Explore understanding of concepts and practical
application through oral assessment
 Flexible delivery
 Using group rather than individual assessments
 Assessment through completion of practical tasks in the
field after demonstration of skills and knowledge.
 Make sure font size is not too small
 Trainer/Assessor should refer to the student’s experience
 Ensure that the time available to complete the
assessment takes account of the student’s needs
 Provision of information or course materials in accessible
format.
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a
notetaker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
Page | 30
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift

Educational
background
 Disability
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Speaking
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Discuss with the Student previous learning experience
 Ensure learning and assessment methods meet the
student’s individual need
 Identify the issues
 Create a climate of support
 Ensure access to support that the student has agreed to
 Appropriately structure the assessment
 Provision of information or course materials in accessible
format, e.g. a text book in braille
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a note
taker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift
Explanation of reasonable adjustments strategy used (If required)
Page | 31
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Assessment Task (UAT)
Assessment Task 2 – Unit Project (UP) – Prepare Budgets
Assessment type:
• Unit Project (UP) - Prepare Budgets
Instructions provided to the student:
Assessment task description:
• This is the second (2) unit assessment task that student has to successfully complete to be
deemed competent in this unit of competency.
• This assessment task is comprised of a Unit project.
• Student is required to prepare budgets in this assessment task.
• Student must attempt all criteria to the required level, e.g. Assessment criteria mentioned in
the performance checklist to be deemed satisfactory in this task.
• Student must prepare budgets by following all given instructions, for the trainer/assessor to
assess competency in this assessment task.
Applicable conditions:
• Part A of this project is untimed and are conducted as open book tests (this means you are
able to refer to your textbook).
• Student must follow the budget templates given in the assessment task to prepare the
budgets in MS-Excel.
• Time limit to complete the part B of this assessment task is 10-15 minutes.
• Student must read and respond to all criteria of the project.
• Student may handwrite/use computers to answer the criteria of the project.
• Student must complete the task independently.
• No marks or grades are allocated for this assessment task. The outcome of the task will be
Satisfactory or Not Satisfactory.
• As student complete this assessment task student predominately demonstrating his/her
practical skills, techniques and knowledge to trainer/assessor.
• The trainer/assessor may ask student relevant questions on this assessment task to ensure
that this is his/her own work.
Resubmissions and reattempts:
• Where a student’s answers are deemed not satisfactory after the first attempt, a resubmission
attempt will be allowed.
• Student may speak to their Trainer/Assessor if student have any difficulty in completing this
task and require reasonable adjustments (e.g. can be given as an oral assessment).
• For more information, please refer to RTO Staff Handbook.
Location:
• This assessment task may be completed in a classroom, learning management system (i.e.
Moodle), workplace, or independent learning environment.
• Trainer/Assessor will provide student further information regarding the location of
completing this assessment task.
General Instructions for attempting the project:
• Student must correctly attempt all activities of this assessment task.
• Student will prepare budgets in this assessment task.
• Answers must demonstrate an understanding and application of relevant concepts, critical
thinking, and good writing skills.
• Student must concise to the point and write answers according to the given word-limit to each
question and do not provide irrelevant information.
Page | 32
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
•
•
Student must use non-discriminatory language. The language used
should not devalue, demean, or exclude individuals or groups on the basis of attributes such
as gender, disability, culture, race, religion, sexual preference or age. Gender inclusive
language should be used.
Assessor should not accept answers copied directly from texts, paraphrased or summarized
information without acknowledgement of the source.
How trainer/assessor will assess the work?
• This assessment task requires the student to will prepare budgets.
• Answers must demonstrate the student’s understanding and knowledge of the unit.
• If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
• If at least one of the assessment tasks is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
• Once all assessment tasks allocated to this Unit of Competency have been undertaken,
trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome
will be either Competent (C) or Not Yet Competent (NYC).
• The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Purpose of the assessment task:
This assessment task is designed to evaluate student’s following skills and abilities:
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Skills to create a budget for financial management.
Skills to find out financial data and cash flow trends.
Skills to read and find aging summaries.
Skills to identify the organisational requirements.
Skills to implement business plan.
Skills to implement statutory requirements for tax law compliance in the budget.
Skills to identify compliance requirements for the Corporations Act 2001.
Skills to recommend commercially available software.
Skills to discuss the implementation of principles of accounting.
Skills to outline critical dates/initiatives that will require or generate resources.
Skills to make informed estimates of new items for inclusion in budget.
Skills to recommend new or modified internal controls that could improve risk management
and maintenance of audit trails.
Reading skills to collect, review, interpret/understand and analyse/review text-based business
information from a range/number of sources
Written and oral/speech communication skills to organise and deliver information to
effectively communicate manage finance processes to a range of stakeholders/interested
people.
Numeracy/numbers- mathematical skills to interpret/understand mathematical data when
reviewing and analysing scenario/setting-situation business information
Assessor’s instructions:
• Assesses each student’s performance in accordance with the performance criteria for
competency listed in the Unit Trainer and Assessor Pack (UTAP).
• Assess each student’s performance and provide feedback within two weeks of student
attempting this assessment task.
• Notify each student that they are Satisfactory/ Not Satisfactory via the student portal.
• Submit assessed unit assessment pack to student administration within one week of marking
so results can be uploaded into the student management system.
Page | 33
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment Task 2 - Unit Project (UP) – Prepare
Budget
Instructions for trainers/assessors:
• The following forms the basis of specific evidence that you need to collect from students for
assessment in this assessment task.
• The task and specific assessment requirements that are given to students are also outlined.
• Refer to all the red, bold and italic text for a guide to suggested answers for assessments
and also for instructions on how to use the assessment tools.
• Ensure all outlined conditions of assessment requirements are met.
• For each assessment task a Unit Assessment Result Sheet (UARS) form is to be completed.
This is located at the end of each assessment task.
• This Unit Assessment Result Sheet (UARS) allows the trainer/assessor to record the following
items correctly:
o Outcome of the assessment task as either Satisfactory (S) or Not Satisfactory (NS).
o Feedback to candidate
o Student declaration
o Trainer/Assessor declaration
• The trainer/assessor and the student must sign the Unit Assessment Result Sheet (UARS) to
show that the student was provided with the task outcome.
• The mapping document should be referred to identify what aspects of the Unit of
Competency are being addressed by each assessment task.
• Once all assessment tasks allocated to this Unit of Competency have been undertaken, an
Assessment plan is to be completed to record the unit outcome. The outcome will be either
Competent (C) or Not Yet Competent (NYC).
• The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
• Each “Assessment Plan” should be referred to note the Unit Assessment Result Sheet (UARS)
outcome as Satisfactory (S) or Not Satisfactory (NS), and this information then transferred
to the final result in the “Assessment Plan” as Competent (C) or Not Yet Competent (NYC).
• If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
• If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
• The following Information is attached to all the assessment tasks:
o Assessment type
o Assessment task description
o Applicable conditions
o Resubmissions and reattempts
o Location
o Instructions for answering the assessment task
o How trainers/assessors will assess the work
o Task-specific instructions for students
Resources required to complete the assessment task:
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Computer
Internet
MS Word
Printer or e-printer
Adobe acrobat/reader
Learning management system
Calculator
Page | 34
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment task Instructions
• This assessment task is divided into following two parts:
o Part A: Prepare budgets
o Part B: Presentation/Role play
• This assessment task requires student to assume/ take on the role of a Business Manager at
Pearl food distributors Pty LTD. (organisation as given in case study).
• Student must identify and analyse business plan summary, income statement and statement
of financial position given in case study to prepare budgets.
• Student must follow the budget templates given in the assessment task to prepare the
budgets in MS-Excel.
• Time limit to complete the part B of this assessment task is 10-15 minutes.
• You must assess the performance as per the performance criteria and checklist provided
Page | 35
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Project task:
This assessment task requires you to determine the requirements to undertake budgeting, financial
forecasting and reporting requirements for an organisation.
You will need to read the below given case study, analyse the information provided and complete the
given tasks.
This project task will be divided into following two (2) parts:
Part 1: Prepare budgets
Part 2: Presentation/Role play
Case study
Assume that you have been appointed as the Business Manager at Pearl food distributors PTY LTD.,
having been a store manager for the past three years. It is a 12-store chain located in Victoria and is a
leading food distributor, providing a high-quality distribution service of food ingredients to cater for
cafes, restaurants, pizzerias and manufacturers.
Pearl food distributors PTY LTD. has become a customers’ preferred supplier for quality food
ingredients & products.
It has grown over the past five years from a single store to the current chain. It prides itself on quality
food ingredients and their timely delivery. This has been the main reason that the company has seen
increase in the sales and profits. At present, it employs over 120 staff.
It is a proprietary limited company (ACN 007 249 989) registered with the Australian Securities and
Investment Commission.
Computer software requirement
The current accounting information system used by Pearl food distributors has not been able to
provide adequate and sufficient analysis of its revenue and expenditure and that has led to difficulties
in making informed estimates of future profits.
The future estimates of the profits that the company can make are not based on the statistical figures
and facts. They are merely predictions of top management. The board of directors feel that to have
more realistic figures on the company’s future growth and profit, they need to use an accounting
software that can analyse the past results and trends that took place in previous years. This will not
only help them to identify the future profits but will also help them to expand the business.
So, they have decided to use a new system that can manage the financial information more effectively
and have the capabilities to analyse the data and provide realistic statistics to create budgets and
forecasts to provide the owner and leadership team the ability to measure where the company was
at and where it is headed financially. The senior management team believe that better information
will allow them to prepare for the future, allocate resources more efficiently and improve profit
margins.
Page | 36
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
The senior management wants you to recommend a new system. They have provided you with the
following guidelines for selection of the new system. The system must:
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•
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•
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•
•
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comply with all the legislative requirements.
calculate all payroll requirements
prepare information for compliance requirements
track stock, work in progress, orders, jobs and other task management requirements
handle multiple bank accounts and automatically imports and processes bank data
handle foreign currency
be able to produce separate financial reports for each business or department within the
business
easily integrate with other systems you are operating such as online payments, point of sale
equipment, customer relationship management records, stock records and payroll software
keep detailed records on customers, including what they buy, how often they buy and when
they buy produces reports such as ‘dashboard’ reports. Ask whether such reports can be
configured to meet your requirements without impacting maintenance and support
allow you to manage permissions so that users only have access to the parts of the system
that is relevant to their work
allow users to securely access data remotely (cloud computing)
have no ongoing license fees
They are well aware of the fact that checking the software for the requirements will take time. The
new budget is also expected to be projected this month. So, they want this to be done after
preparation of the budget for year 2018/2019.
Task 1:
The end of financial year 2017/2018 is approaching near. The decision on new accounting system is
still to be made. However, to get accurate predictions, the CEO of the organisation gathered
information from the company’s accountant and the internal auditor and conducted analysis of the
past outcomes and they want the budgets to be prepared based on this analysed information and the
budget plan summary.
The CEO wants you to prepare the following budgets for 2018/19 financial year:
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•
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Sales and profit budget
GST Cash flow budget
Debtor ageing summary
The budgets must be prepared on quarterly basis.
The CEO has provided you the following information from the previous financial year budgets:
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Business plan summary
Income statements for year 2016/17 and 2017/18
Statement of financial position
Notes from meeting with the accountant
Budget policies and procedures
Page | 37
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Business plan summary:
Business Plan Summary
1. Sales are expected to grow to $18,000,000 in next financial year.
2. Expenses will be the same as previous year. Though, some of the expenses will increase.
Some expenses will increase by a direct amount and other expenses will be accounted for
with the inflation rate. Information on expenses that will have increase by direct amount is
given in meeting notes.
3. Inflation rate for expenses is given below. The expenses that will be impacted by inflation
are as follow: (further information on expenses in given in meeting notes with accountant)
a. Cleaning, repair and maintenance expenses (3%)
b. Electricity (3%)
c. Wages and salaries (10%)
d. Fringe benefit tax (5%)
e. Website and marketing expense (10%)
4. Profits will be built by making a secure customer base. Loyalty cards will be given at the
stores. The total cost to do so will be $12,000 to be included in advertising expenses.
5. To reduce the principle of loan amount by $80,000 from the current year profits generated.
6. Manage debtors more efficiently and reducing the mount in trade debtor account by
$200,000.
Page | 38
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Income statements for year 2016/17 and 2017/18
Pearl food distributors Pty LTD.
For 12 months ended
Profit & Loss Actuals
2016/17
2017/18
Sales
12,600,000
14,260,000
– Cost of Goods Sold
5,200,000
6,100,000
Gross Profit
7,400,000
8,160,000
– Interest Expense
90,000
88,000
– Depreciation expenses
160,000
160,000
– Insurance expenses
24,000
24,600
– Store Supplies
-
4,300
– Advertising
246,000
260,000
– Cleaning, Repairs & Maintenance
82,000
84,000
– Rent
2,500,000
2,750,000
– Website marketing expenses
14,000
16,000
– Electricity Expense
30,000
32,000
– Fringe Benefits Tax
34,000
38,000
– Wages & Salaries
2,200,000
2,400,000
– Superannuation
209,000
228,000
– Workers’ Compensation
44,000
48,000
Total Expenses
5,633,000
6,132,900
Net Profit (Before Tax)
1,767,000
2,027,100
Income Tax
530,100
608,130
Net Profit
1,236,900
1,418,970
Revenue
Expenses
Page | 39
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Statement of financial position
Pearl food distributors Pty LTD.
Statement of Financial Position
As at 30 June
2016/17
2017/18
– Cash on Hand
90,000
98,000
– Cheque Account
180,000
220,000
– Deposits Paid
1,200,000
1,200,000
– Trade Debtors
1,115,000
1,230,000
– Merchandise Inventory
1,600,000
1,720,000
Total Current Assets
4,185,000
4,468,000
– Cost of motor vehicle
600,000
600,000
– Accumulated Dep
(120,000)
(120,000)
– Cost of Furniture & Fixtures
2,400,000
2,600,000
– Furniture & Fixtures Accumulated Dep
(720,000)
(780,000)
– Cost of Office Equip
500,000
500,000
– Office Equip Accumulated Dep
(100,000)
(120,000)
Total Fixed Assets
2,560,000
2,680,000
Total Assets
6,745,000
7,148,000
– Credit card
32,000
36,000
– Trade Creditors
700,000
730,000
– GST Collected
1,260,000
1,426,000
– GST Paid
(840,000)
(890,000)
– Superannuation Payable
209,000
228,000
– income Tax Payable
530,100
608,130
Total Current Liabilities
1,891,100
2,138,130
Assets
Current Assets
Fixed Assets
Liabilities
Current Liabilities
Page | 40
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Long-Term Liabilities
-
– Bank Loans
1,800,000
1,600,000
Total Liabilities
3,691,100
3,738,130
– Owner/Shareholder’s Equity
700,000
700,000
– Retained Earnings
1,000,000
1,200,000
– Dividends Paid
(397,100)
(497,230)
– Current Year Earnings
1,767,000
2,027,100
Total Equity
3,053,900
3,409,870
Equity
Page | 41
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Notes provided by the CEO:
Notes from meeting with Accountant:
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•
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•
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Sales target for the year 2018/2019 set in business plan are 18,000,000. The proportion
expected from the analysis of previous study for each quarter is as follow:
Quarter 1:
22%
Quarter 2:
30%
Quarter 3:
21%
Quarter 4:
27%
Cost of goods sold will be in same proportion as 2017/18.
Rent expense will increase by 10% this year.
Store supplies will be same as previous year.
Interest expense for the current year will decrease by the amount of $6,000.
A new expense is to be included in the new budget that will be under the name of cleaning
and maintenance labour charges. 60% of the amount from cleaning and maintenance
expenses will be included in this expense. Only 40% will be accounted in cleaning and
maintenance expense.
Depreciation will be same as previous year.
Expected increase in expenses: (inflation rate given in business plan summary)
o Cleaning, repair and maintenance expenses
o Electricity
o Wages and salaries
o Fringe benefit tax
o Website and marketing expense
The following expenses will be paid in equal amount for each quarter:
o Rent expense
o Interest expense
o Insurance expense
o Website marketing expense
o Depreciation expense
o Advertising expense
Store supplies expense will be paid in the third quarter.
Other expenses will be distributed based on the proportion of sales made in each quarter.
Statutory requirements
o Superannuation: 9.5%
o Company tax: 30%.
o Workers compensation: 2%
Based on the analysis of historical data, it is expected that the debtors balance at the end
of each quarter is expected to be 15% of the sales made. Furthermore, it is expected that
1% of debtor balance will be overdue for 90 days, 4% overdue for 60 days and 10% for 30
days.
Page | 42
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
For GST cash flow budget:
•
•
Statutory requirements: 10% of recorded sales. No capital purchase is recorded for this
year. Though the expenses where the GST will be paid include.
o Insurance expense
o Store supplies
o Advertising expense
o Cleaning, Repairs & Maintenance
o Electricity expense
o Website marketing expense
GST cash flow is to be maintained to maintain audit trial. This will ensure that there are
discrepancies between agreed and actual allocations for cash flow analysis for GST are
identified.
Pearl food distributors Budgeting Policy and Procedures
Budget Development Process
The standard process for developing budgets will follow the following steps:
1. Identify budget objectives
2. Gather previous years financial data.
3. Gather anticipated changes in budget from the stakeholders.
4. Incorporate identified trends.
5. Develop budget based on the formats provided in MS excel.
6. Final approval.
Budget Objectives
Pearl food distributors prepares budgets to meet various company objectives. Budgets are
prepared:
● To have more realistic figures on the company’s future growth and profit.
● To predict cash flow.
● To comply with the statutory and legislative requirements.
● To allocate funds.
● To have birds eye view on the trade debtors.
Budget Variances and Schedules
● KPI’s that should be monitored:
○ Variance in sales
○ Variance in gross profit
○ Variance in total expenses as percentage of sale
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
● Budget variance is to be calculated for each quarter. It should be completed within the last
week of the quarter.
● Reports on variance is to be provided to the CEO of the organisation.
● Priorities in investigation of the variances”
○ Identifying the primary cause of the variance.
○ Identify the reasons that led to this cause.
● Accountant has the responsibility to manage compliance due dates.
When preparing the budgets, you must ensure that you must:
•
•
•
•
Conduct a detailed analysis on previous financial data to identify different quarters of the
financial-year that have generated a profit or loss and to accurately determine the allocation
of resources for each quarter of budget.
Ensure that you critically review the ‘Business plan summary’ given in the case study to
establish critical dates of the transactions and allocate the same in the budget for next
financial-year.
Make informed estimates of new items given in ‘Business plan summary’ for inclusion in
budget
Review statutory requirements given in the case study to prepare a budget that is compliant
and correctly documents the company’s liabilities for tax.
Page | 44
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
The following formats will be used when preparing Pearl food distributors
budgets. You must create similar templates in MS-Excel to prepare budgets and submit the print out
of the budgets to your trainer/assessor.
Sales and Profit Budgets:
PROFIT BUDGET
2018/19
Revenue
Qtr. 1
Qtr. 2
Qtr. 3
Qtr. 4
-
22%
30%
21%
27%
18,000,000
3,960,000
5,400,000
3,780,000
4,860,000
7,698,888
1,693,755
2,309,666
1,616,767
2,078,700
10,301,112
2,366,245
3,090,334
2,163,233
2,781,300
82,000
20,500
20,500
20,500
20,500
160,000
40,000
40,000
40,000
40,000
24,600
6,150
6,150
6,150
6,150
4,300
-
-
4,300
-
272,000
68,000
68,000
68,000
68,000
&
34,608
7,614
10,382
7,268
9,344
– Cleaning and maintenance
labour charge
51,912
11,421
15,573
10,902
14,016
3,025,000
756,250
756,250
756,250
756,250
– Website marketing expenses
17,600
4,400
4,400
4,400
4,400
– Electricity Expense
32,960
7,251
9,888
6,922
8,899
– Fringe Benefits Tax
39,900
8,778
11,970
8,379
10,773
2,640,000
580,800
792,000
554,400
712,800
250,800
55,176
75,240
52,668
67,716
52,800
11,616
15,840
11,088
14,256
Sales
– Cost of Goods Sold
Gross Profit
Expenses
– Interest Expense
– Depreciation expenses
– Insurance expenses
– Store Supplies
– Advertising
–
Cleaning,
Maintenance
Repairs
– Rent
– Wages & Salaries
– Superannuation
– Workers’ Compensation
Page | 45
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Total Expenses
6,688,480
1,577,956
1,826,193
1,551,227
1,733,104
Net Profit (Before Tax)
3,612,632
788,289
1,264,141
612,006
1,048,196
Income Tax
1,083,790
379,242
183,602
314,459
Net Profit
2,528,842
884,899
428,404
733,737
236,487
551,802
GST Cash Flow Budget
CASH FLOW ANALYSIS
– GST
2018/19
Qtr. 1
Qtr. 2
Qtr. 3
Qtr. 4
GST Collected
1,800,000
396,000
540,000
378,000
486,000
Less GST Paid
38,606.8
9,341.5
9,882
9,704
9,679.3
1,761,393.2
386,658.5
530,118
368,296
476,320.7
Qtr. 1
Qtr. 2
Qtr. 3
Qtr. 4
GST Payable
Aged Debtors
AGED DEBTORS
BUDGET
Total Debtors
TOTAL
1,030,000
226,600
309,000
216,300
278,100
30 Days
103,000
22,660
30,900
21,630
27,810
60 Days
41,200
9,064
12,360
8,652
11,124
90 Days
10,300
2,266
3,090
2,163
2,781
Current
Page | 46
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Part 2:
This part of assessment task is in continuation with part 1. In this assessment task:
•
•
•
•
•
•
Your role will be to act as Business manager.
Your trainer will act as Chris (CEO of the business)
Your trainer/assessor will allocate the role of Senior managers and Supervisors (2 each) to the
students present in the classroom. If there are insufficient number of students in the class,
then, your trainer/assessor will take on multiple role switching roles based on the task
requirements.
You will first document the budgetary notes and distribute it to the senior managers and
supervisors.
You will then deliver a presentation on the budgets prepared in part 1 of this assessment task.
At last, you will engage in discussion with the stakeholders (Senior Managers, Supervisors and
CEO) to address their issues.
Scenario
You have successfully prepared the budget for the financial year 2018/2019. As per the company’s
procedures, the budget must be approved by the stakeholders before its implementation.
So, the CEO of Pearl food distributors Pty LTD “Jeff Hardy” has called a meeting with you, senior
managers and the supervisors. The CEO also provided you with the information that he wants to
discuss the best option for the new accounting system based on the company guidelines of selecting
the accounting software (provided in the case study) in this meeting.
Task:
The CEO of the organisation has asked you to prepare and deliver a presentation to provide an
overview of the information contained within the budget.
Before delivering the presentation, he wants you to prepare key notes from the budget and
disseminate them to the stakeholders (Senior Manager, Supervisors and CEO of the company).
The key points that the notes must include are as follow:
•
•
•
Major reasons for the previous profits and losses.
Assumptions made within the budget.
Notes to implement and monitor the budget expenditure on regular basis.
After distributing the budget notes to the stakeholders (Senior Managers, Supervisors and CEO), he
wants you to prepare a presentation that must include the following:
•
Overview of the following budgets:
o sales and profit budget
o GST cash flow budget
o debtor ageing summary
Note: You can use screenshots of budgets you prepared in the spreadsheets in your presentation.
•
•
•
Reporting requirements for each quarter.
Financial delegations of Senior managers, store managers and supervisor for budget
implementation.
Reasons for previous profit and loss for each quarter.
Page | 47
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
After the completion of the presentation, you will be required to address the
concerns of the stakeholder’s present during the meeting and address the questions and concerns of
the Senior managers.
The following questions are to be asked by the stakeholders (Senior Managers, Supervisors and CEO)
Questions
Senior Manager 1:
1. What are the current statutory requirements for tax compliance?
Senior manager 2:
2. Which is the most suitable commercially available financial-management accounting
software for Pearl food distributors Pty LTD.?
Supervisor 1:
3. What are the implications of probity in preparation and revision of budgets?
4. What are the critical dates and initiatives that will require or generate resources for Pearl
food distributors Pty LTD. in the next financial cycle.
Supervisor 2:
5. What other items do you think should be included in the budgets for the company?
6. What internal controls should be implemented to improve risk management for
maintaining audit trials?
Page | 48
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Sample answers
1. Statutory requirements
• Good and services tax
• Payroll tax
• Income tax returns
• Fringe benefit tax
• PAYG witholding payables
2. This software is to be identified by the student based on his/her research. There are number
of softwarees available including XERO, MYOB.
3. Financial probity requires:
• Budgets preparer to prepare budget with honesty, integrity and in ethical way.
• That others must be advised to be truthful in their assessments, responses and the
documentation of financial transactions and notes to the budget.
4. Critical dates:
• Reduction on principlal of loan amount
• Debtor analysis
• Advertisements budget increase.
5. Cleaning and maintenence labour charges.
6. Internal controls that should be implemented to improve risk management:
• Discounts to be recorded
• Reconcilition after every month.
• Reconcillliation of case registers on daily basis.
• Maintaining currency of asset register.
• Open communication.
Page | 49
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Performance criteria checklist for unit assessment
task:
Trainer/ Assessor to complete
Assessment activities to be completed
Resources required for the unit assessment
task
•
•
Prepare budgets.
For a full project outline, please refer to
the student assessment instructions.
•
•
•
•
Unit assessment guide template.
Case study
Calculator
Access to live or simulated working
environment
• Interaction with others.
Does the candidate meet the following Yes No Trainer/Assessor Comments
criteria
a) Implemented statutory requirements for
tax law compliance in the budget.
•
Included Goods and services tax – collect
GST on all sales by adding 10% to the
transaction price.
•
Considered workers compensation for
each quarter.
•
Deducted company tax from net profit
before tax for each quarter.
b) Recommend
software.
•
commercially
available
Identified software that:
o includes at least two titles
o works
with
the
current
technology
capabilities
as
indicated in case study
o Compares the identified titles
against the list of requirements.
c) Discussed the following implications of
financial probity:
•
Financial probity requires the preparer
of budgets to do so with honesty,
integrity and in an ethical way.
•
Others must be advised to be truthful in
their assessments, responses and the
documentation of financial transactions
and notes to the budgets.
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Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
d) Outlined
the
following
critical
dates/initiatives that will require or
generate resources.
•
Reduction in principle of loan by
$100,000.
•
Increased advertising.
•
Inflation rates increase.
e) Made informed estimates of new items
for inclusion in budget:
•
Included cleaning labour cost.
f)
Appropriately recommend new or
modified internal controls that could
improve
risk
management
for
maintaining audit trails.
g) Developed an annual budget.
•
All budgets show four quarterly periods.
•
All budgets are in the format as
described in the Pearl food distributors
Pty LTD. policy and procedures.
h) Presented overview of the budget and
responded to questions present by
Senior managers.
•
•
•
Presented information incorporated a
detailed analysis of factual and
forecasted information.
Demonstrated knowledge of active
listening and questioning techniques to
elicit views and opinions of stakeholders
in discussion.
o Used effective speaking and
listening techniques:
➢ Student was responsive to the
listener
(trainer/assessor)
considering what the listener
knows.
➢ Student successfully determined
whether the message is getting
across
➢ Student successfully determined
when
it
is
his or her turn to become the
listener or speaker.
Demonstrated ability to provide
answers
based
on
background
knowledge and experiences
Page | 51
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
•
•
•
•
Demonstrated ability to construct and
purposefully dispense well thought out
questions.
Presented reporting requirements for
each quarter.
Allocated financial delegations of Senior
managers, store managers and
supervisor for budget implementation
appropriately.
Demonstrated knowledge to identify
reasons for previous profit and loss for
each quarter.
Page | 52
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Pre-Assessment Checklist
(UPAC)
UAT 3 – Unit Project (UP) - Monitor and
review budget
Purpose of the checklist
The pre-assessment checklist helps students determine if they are ready for assessment. The
trainer/assessor must review the checklist with the student before the student attempts the
assessment task. If any items of the checklist are incomplete or not clear to the student, the
trainer/assessor must provide relevant information to the student to ensure they understand the
requirements of the assessment task. The student must ensure they are ready for the assessment task
before undertaking it.
Section 1: Information for Trainers/Assessors
•
•
•
•
•
•
•
•
•
•
•
Please make sure the student has completed the necessary prior learning before attempting
this assessment.
Please make sure you as a trainer/assessor have clearly explained the assessment process and
tasks to be completed.
Please make sure the student understands what evidence is required to be collected and how.
Please make sure the student knows their rights and the Complaints and Appeal process.
Please make sure the student has discussed any special needs or reasonable adjustments to
be considered during the assessment (refer to the Reasonable Adjustments Strategy Matrix).
Please make sure the student has access to a computer and the internet (if they prefer to type
the answers).
Please ensure that your student must have all the required resources needed to complete this
Unit Assessment Task (UAT). (Refer to Training and assessment resources for more
information).
Due date of this assessment task is according to the timetable.
In exceptional (compelling and compassionate) circumstances, an extension to submit an
assessment can be granted by the trainer/assessor.
Evidence of the compelling and compassionate circumstances must be provided together with
the request for extension to submit the assessment work.
Request for an extension to submit assessment work must be made before the due date of
this assessment task.
Section 2: Reasonable adjustments
•
•
•
•
•
Students with carer responsibilities, cultural or religious obligations, English as an additional
language, disability etc. can request for reasonable adjustments.
Please note, academic standards of the unit/course will not be lowered to accommodate the
needs of any student, but there is a requirement to be flexible about the way in which it is
delivered or assessed.
The Disability Standards for Education requires institutions to take reasonable steps to enable
the student with a disability to participate in education on the same basis as a student without
a disability.
Trainer/Assessor must complete the section below “Reasonable Adjustment Strategies
Matrix” to ensure the explanation and correct strategy have been recorded and implemented.
Trainer/Assessor must notify the administration/compliance and quality assurance
department for any reasonable adjustments made.
Page | 53
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
•
All evidence and supplementary documentation must be submitted
with the assessment pack to the administration/compliance and quality assurance
department.
Page | 54
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Reasonable Adjustment Strategies Matrix (Trainer/Assessor to complete)
Category
Possible Issue
 LLN
 Speaking
 Reading
 Writing
 Confidence

NonEnglish
Speaking
Background
 Speaking
 Reading
 Writing

Cultural
background
 Confidence

Indigenous
 Knowledge and
understanding
 Flexibility
 Services

Inappropriate
training
and
assessment

Educational
background
 Limited study
skills
 Age
Reasonable Adjustment Strategy
(select as applicable)
 Verbal assessment
 Presentations
 Demonstration of a skill
 Use of diagrams
 Use of supporting documents such as wordlists
 Discuss with the student and supervisor (if applicable)
whether language, literacy and numeracy are likely to
impact on the assessment process
 Use methods that do not require a higher level of
language or literacy than is required to perform the job role
 Use short sentences that do not contain large amounts of
information
 Clarify information by rephrasing, confirm understanding
 Read any printed information to the student
 Use graphics, pictures and colour coding instead of, or to
support, text
 Offer to write down, or have someone else write, oral
responses given by the student
 Ensure that the time available to complete the
assessment, while meeting enterprise requirements, takes
account of the student’s needs
 Culturally appropriate training
 Explore understanding of concepts and practical
application through oral assessment
 Flexible delivery
 Using group rather than individual assessments
 Assessment through completion of practical tasks in the
field after demonstration of skills and knowledge.
 Make sure font size is not too small
 Trainer/Assessor should refer to the student’s experience
 Ensure that the time available to complete the
assessment takes account of the student’s needs
 Provision of information or course materials in accessible
format.
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a
notetaker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
Page | 55
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift

Educational
background
 Disability
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Speaking
 Reading
 Writing
 Numeracy
 Limited study
skills and/or learning
strategies
 Discuss with the Student previous learning experience
 Ensure learning and assessment methods meet the
student’s individual need
 Identify the issues
 Create a climate of support
 Ensure access to support that the student has agreed to
 Appropriately structure the assessment
 Provision of information or course materials in accessible
format, e.g. a text book in braille
 Changes in teaching practices, e.g. wearing an FM
microphone to enable a student to hear lectures
 Supply of specialised equipment or services, e.g. a note
taker for a student who cannot write
 Changes in lecture schedules and arrangements, e.g.
relocating classes to an accessible venue
 Changes to course design, e.g. substituting an assessment
task
 Modifications to physical environment, e.g. installing
lever taps, building ramps, installing a lift
Explanation of reasonable adjustments strategy used (If required)
Page | 56
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Unit Assessment Task (UAT)
Assessment Task 3 – Unit Project (UP) - Monitor and review budget
Assessment type:
• Unit Project (UP) - Monitor and review budget
Instructions provided to the student:
Assessment task description:
• This is the third (3) unit assessment task that student has to successfully complete to be
deemed competent in this unit of competency.
• This assessment task is comprised of a Unit project.
• Student is required to monitor and review budget in this assessment task.
• Student must attempt all criteria to the required level, e.g. Assessment criteria mentioned in
the performance checklist to be deemed satisfactory in this task.
• Student must monitor and review budget by following all given instructions, for the
trainer/assessor to assess competency in this assessment task.
Applicable conditions:
• This project is untimed and are conducted as open book tests (this means you are able to refer
to your textbook).
• Student must read and respond to all criteria of the project.
• Word limit to complete part B (report) is 600-800 words.
• Student must prepare budget variance report in MS Excel by following the structure of
template provided in the assessment task itself.
• Student may handwrite/use computers to answer the criteria of the project.
• Student must complete the task independently.
• No marks or grades are allocated for this assessment task. The outcome of the task will be
Satisfactory or Not Satisfactory.
• As student complete this assessment task student predominately demonstrating his/her
practical skills, techniques and knowledge to trainer/assessor.
• The trainer/assessor may ask student relevant questions on this assessment task to ensure
that this is his/her own work.
Resubmissions and reattempts:
• Where a student’s answers are deemed not satisfactory after the first attempt, a resubmission
attempt will be allowed.
• Student may speak to their Trainer/Assessor if student have any difficulty in completing this
task and require reasonable adjustments (e.g. can be given as an oral assessment).
• For more information, please refer to RTO Staff Handbook.
Location:
• This assessment task may be completed in a classroom, learning management system (i.e.
Moodle), workplace, or independent learning environment.
• Trainer/Assessor will provide student further information regarding the location of
completing this assessment task.
General Instructions for attempting the project:
• This assessment task is in continuation to the previous task.
• Student must correctly attempt all activities of this assessment task.
• Student will monitor and review budget in this assessment task.
• Answers must demonstrate an understanding and application of relevant concepts, critical
thinking, and good writing skills.
Page | 57
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
•
•
•
Student must concise to the point and write answers according to the
given word-limit to each question and do not provide irrelevant information.
Student must use non-discriminatory language. The language used should not devalue,
demean, or exclude individuals or groups on the basis of attributes such as gender, disability,
culture, race, religion, sexual preference or age. Gender inclusive language should be used.
Assessor should not accept answers copied directly from texts, paraphrased or summarized
information without acknowledgement of the source.
How trainer/assessor will assess the work?
• This assessment task requires the student to monitor and review budget.
• Answers must demonstrate the student’s understanding and knowledge of the unit.
• If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
• If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
• Once all assessment tasks allocated to this Unit of Competency have been undertaken,
trainer/assessor will complete an Assessment plan to record the unit outcome. The outcome
will be either Competent (C) or Not Yet Competent (NYC).
• The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
Purpose of the assessment task:
This assessment task is designed to evaluate student’s following skills and abilities:
•
•
•
•
•
•
•
Skills to manage risks so that no opportunities for misappropriation of funds and that systems
are in place to properly record all financial transactions.
Skills to review profit and loss statements, cash flows and ageing summaries and revise
budgets based on requirements.
Skills to maintain audit trails to ensure accurate tracking and to
identify discrepancies between agreed and actual allocations.
Skills to ensure compliance with due diligence and make sure that the structure and format of
reports are clear and conform to organisational and statutory requirements.
Skills to identify and prioritise significant issues in the case study.
Skills to determine a trend of the average debtor days and the impact to the cash flow of Pearl
food distributors.
Skills to 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.
Assessor’s instructions:
• Assesses each student’s performance in accordance with the performance criteria for
competency listed in the Unit Trainer and Assessor Pack (UTAP).
• Assess each student’s performance and provide feedback within two weeks of student
attempting this assessment task.
• Notify each student that they are Satisfactory/ Not Satisfactory via the student portal.
• Submit assessed unit assessment pack to student administration within one week of marking
so results can be uploaded into the student management system.
Page | 58
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment Task 3 - Unit Project (UP) - Monitor and
review budget
Instructions for trainers/assessors:
• The following forms the basis of specific evidence that you need to collect from students for
assessment in this assessment task.
• The task and specific assessment requirements that are given to students are also outlined.
• Refer to all the red, bold and italic text for a guide to suggested answers for assessments
and also for instructions on how to use the assessment tools.
• Ensure all outlined conditions of assessment requirements are met.
• For each assessment task a Unit Assessment Result Sheet (UARS) form is to be completed.
This is located at the end of each assessment task.
• This Unit Assessment Result Sheet (UARS) allows the trainer/assessor to record the following
items correctly:
o Outcome of the assessment task as either Satisfactory (S) or Not Satisfactory (NS).
o Feedback to candidate
o Student declaration
o Trainer/Assessor declaration
• The trainer/assessor and the student must sign the Unit Assessment Result Sheet (UARS) to
show that the student was provided with the task outcome.
• The mapping document should be referred to identify what aspects of the Unit of
Competency are being addressed by each assessment task.
• Once all assessment tasks allocated to this Unit of Competency have been undertaken, an
Assessment plan is to be completed to record the unit outcome. The outcome will be either
Competent (C) or Not Yet Competent (NYC).
• The “Assessment Plan” is available with the Unit Assessment Pack (UAP) – Cover Sheet.
• Each “Assessment Plan” should be referred to note the Unit Assessment Result Sheet (UARS)
outcome as Satisfactory (S) or Not Satisfactory (NS), and this information then transferred
to the final result in the “Assessment Plan” as Competent (C) or Not Yet Competent (NYC).
• If all assessment tasks are deemed Satisfactory (S), then the unit outcome is Competent (C).
• If at least one of the assessment task is deemed Not Satisfactory (NS), then the unit outcome
is Not Yet Competent (NYC).
• The following Information is attached to all the assessment tasks:
o Assessment type
o Assessment task description
o Applicable conditions
o Resubmissions and reattempts
o Location
o Instructions for answering the assessment task
o How trainers/assessors will assess the work
o Task-specific instructions for students
Resources required to complete the assessment task:
•
•
•
•
•
•
•
Computer
Internet
MS Word
Printer or e-printer
Adobe acrobat/reader
Learning management system
Calculator
Page | 59
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Assessment task Instructions
• This assessment task is divided into two parts:
o Part 1: Prepare budget variance report
o Part 2: Report on effectiveness of existing financial-management approaches.
• Student must compare the outcomes of budget prepared as part of assessment task 2 with
actual results given in the case study to prepare budget variance report.
• Word limit to complete part B (report) is 600-800 words.
• Student must prepare budget variance report, GST Cash Flow Budget variance report and
debtor ageing variance report in MS Excel by following the structure of template provided
in the assessment task.
• You must assess the performance as per the performance criteria and checklist provided.
Page | 60
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Task:
This assessment task is in continuation with previous assessment task. In this task, you will monitor
the implementation of the budget that you have prepared in assessment task 2.
This task is divided into two parts:
•
•
Part A requires you to prepare budget variance report.
Part B requires you to prepare a report on effectiveness of existing financial-management
approaches.
Case Study
After end of the first quarter of the financial year, Jeff Hardy, the CEO of the company called up a
meeting to discuss the analysis report provided to him by the accountant of the organisation.
This analysis report includes the outcomes of the actual budget analysis for the first quarter budget.
The outcomes of the analysis report outcomes are not as expected. Following are some of the vital
outcomes:
•
•
•
•
•
•
•
Sales are 3% less than budgeted.
Gross profits have been impacted as the expenses are same, but sales have gone down.
The company had most part of their loan on variable interest rates. The interest rates have
increase and that has impacted the interest expenses. The interest expense for this quarter is
increase by $4500.
To maintain the sales the stores had to further give discounts of 5% on each item. That has
impacted the budget.
Other actual expenses were same as allocated.
Total debtor sale decreased by 40,000.
2% of debtor balance will be overdue for 90 days, 6% overdue for 60 days and 13% for 30 days.
You had discussion with the CEO. You both have agreed that this is largely due to the following
reasons:
•
•
The economy overall is in recession that is impacting the sales in the retail sector.
The first quarter is generally impacted by the factors relating to public and school holidays.
The CEO is also concerned about the outcomes of the audit trial conducted by one of the internal
auditors. Some of the outcomes are as follow:
•
•
Cash record books not maintained properly.
Some of the times the company books and third-party bank statements were not reconciled
appropriately.
Page | 61
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Part 1:
Considering the outcomes of the analysis report, the CEO of the company wants you to prepare a
budget variance report to manage risks that may occur in the organisation in case of misappropriation
of the funds.
This is also to be done to maintain audit trials for accurate tracking and identification of discrepancies
between agreed and actual allocations.
To do so, you are required to:
•
•
•
Prepare the actual budget based on the outcomes of the analysis report.
Compare the outcomes of the actual budget with the outcomes of the allocated budget (refer
to the assessment task 2).
Prepare budget variance report, GST Cash Flow Budget variance report and debtor ageing
variance report in MS excel by following the structure of templates provided.
You must make sure that when conducting audit trial, you comply with due diligence in reviewing
financial statements.
Sales and Profit Budgets variance report:
PROFIT BUDGET
Allocated Qtr. 1
Revenue
Actual Qtr. 1
22%
19%
Sales
3,960,000
3,420,000
– Cost of Goods Sold
1,693,755
1,462,789
Gross Profit
2,366,245
1,957,211
– Interest Expense
20,500
25,000
– Depreciation expenses
40,000
40,000
6,150
6,150
68,000
68,000
– Cleaning, Repairs & Maintenance
7,614
7,614
– Cleaning and maintenance labour
charge
11,421
11,421
Expenses
– Insurance expenses
– Advertising
Page | 62
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
– Rent
756,250
756,250
– Website marketing expenses
4,400
4,400
– Electricity Expense
7,251
7,251
– Fringe Benefits Tax
8,778
8,778
– Discount provided
-
198,000
– Wages & Salaries
580,800
580,800
– Superannuation
55,176
55,176
– Workers’ Compensation
11,616
11,616
1,577,956
1,780,456
Net Profit (Before Tax)
788,289
176,755
Income Tax
236,487
53,027
Net Profit
551,802
123,728
Total Expenses
GST Cash Flow Budget variance report:
CASH FLOW ANALYSIS – GST
Allocated Qtr. 1
Actual Qtr. 1
GST Collected
396,000
342,000
Less GST Paid
9,341.5
9,341.5
386,658.5
332,658.5
GST Payable
Aged Debtors variance report:
AGED DEBTORS BUDGET
Sales
Allocated Qtr. 1
Actual Qtr. 1
396,000
342,000
226,600
186,600
30 Days
22,660
24,258
60 Days
9,064
11,196
90 Days
2,266
3,732
% Debtors Sales
Total Debtors
Current
Page | 63
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Part 2:
After preparing the budget variance report, the CEO of the organisation wants you to analyse and
prepare a report on effectiveness of existing financial-management approaches.
To do so, you are required to:
•
Analyse budget variance report, GST Cash Flow Budget variance report and debtor ageing
variance report: /Check template for answers/
o Identify the issues based on the information provided within the case study.
o Present views on how these issues can be resolved.
•
Analyse the “Sales and Profit Budgets variance report”, identify and prioritise the significant
issues, including the financial performance. /Check template for answers/
o Identify variances.
o Provide reasons for the variance.
o Document the steps that should be taken to maintain gross profit margins after
increasing expenses and downturn in the amount of sales.
•
Conduct cash flow analysis to identify the debtor days. The analysis is to be conducted based
on the information provided in the assessment task 2. /Check template for answers/
•
Check the financial viability of the company by comparing the performance of the company
with the industry benchmarks for retail trade sector.
•
Present recommendations about the financial viability for the organisation based on the
analysis of the issues given in the case study, the identified reasons and the organisational
performance.
•
Provide recommendation to manage such contingencies in the future.
•
Review the financial management process based on your assessment of the issues, reasons
and organisational performance. Also provide recommendations for improvement in
improving financial management processes.
•
Identify and document some of the risks that the company can face in future based on the
outcomes of the audit trial conducted. Also identify the risk of misappropriation of funds and
document a risk management approach.
Page | 64
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Template to complete the report:
Report on the effectiveness of existing financial-management approaches/finances
•
•
•
•
•
•
•
•
•
•
•
•
•
Issues
Steps to resolve these issues
Variances
Reason for variances
Steps to maintain gross profit margins
Debtor days
Financial viability of the company
Your recommendations on the viability of the company
Your recommendations for managing contingencies
Recommendations for improvement in improving financial management processes.
Risks that company can face in future based on the outcomes audit trial
Risk of misappropriation of funds
Risk management approach
Sample answers
1. Reasons for variance
• Sales are 3% less than budgeted.
• Gross profits have been impacted as the expenses are same, but sales have gone
down.
• The company had most part of their loan on variable interest rates. The interest rates
have increase and that has impacted the interest expenses. The interest expense for
this quarter is increase by $4500.
• To maintain the sales the stores had to further give discounts of 5% on each item. That
has impacted the budget.
• Other actual expenses were same as allocated.
• Total debtor sale decreased by 40,000.
• 2% of debtor balance will be overdue for 90 days, 6% overdue for 60 days and 13% for
30 days.
2. Fincial viability: profit on target for the first quarter which is the seasonally slowest quarter
of the year.
a. Reasons:
i. The economy overall is in recession that is impacting the sales in the retail
sector.
ii. The first quarter is generally impacted by the factors relating to public
and school holidays.
b. Expected:
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Page | 65
i. As the company has already provided discouts for the current quarter. For
the next quarter, if again the discouts are required to be made to
maintain the sales, then the company might fall into state where they
might have losses.
3. Financial probity requires:
• Budgets preparer to prepare budget with honesty, integrity and in ethical way.
• That others must be advised to be truthful in their assessments, responses and the
documentation of financial transactions and notes to the budget.
4. TO manage these contigencies, the organisation has to keep in mind these fators and the
economic situtaions in the market, so that the budget can be prepred with more accuracy
amd resources can be better allocated.
5. Recommendations:
•
•
•
Review discount policy.
Reduce loans to reduce exposure to rising interest rates.
Review salaries and wages to reduce costs
6. Recommendations for improvement in improving financial management processes.
• Reconcile cash registers daily.
• Proper authorisation
• maintain cash records properly.
7. Based on the outcomes of the audit trial, the company might face following risks:
• Misppropriation of funds.
• Decrease in gross profits.
Page | 66
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances
Performance checklist criteria
Trainer/ Assessor to complete
Assessment activities to be completed
Resources required for the unit assessment task
Does the candidate meet the following criteria
Yes
•
•
Monitor and review budgets.
For a full project outline, please
refer to the student assessment
instructions
•
•
•
•
Unit assessment guide template
Case study
Calculator
Outcomes of assessment task 2
No Trainer/Assessor Comments
a) Completed actual-to-budget variance report
according to organisational requirements
b) Completed debtor ageing ratio for required
periods
c) Provided responses for issues that reflected in
the case study.
d) Documented the steps to resolve complex
issues.
e) Identify variances.
f)
Provide reasons for the variance.
g) Document the steps that should be taken to
maintain gross profit margins after increasing
expenses and downturn in the amount of
sales.
h) Debtors days identified were correct.
i)
Present recommendations about the financial
viability for the organisation
j)
Provided recommendation to manage such
contingencies in the future.
k) Provided recommendations for improvement
in improving financial management processes.
l)
Identified the risk of misappropriation of
funds and document a risk management
approach.
Page | 67
Document Type: Traine r Assessment Pack (TAP )
Release Date: Fe b 2017
Review Date: Dec 201 9
Complianc e and Quality Assurance Department
Unit Name: BSBF IM601 - Manage finances