Activities

Complete the following activities individually or in a group (as applicable to the specific activity and the assessment environment).

Activity 1A

Objective	To provide you with an opportunity to assess reasons for losses or profits identified from previous financial reports.
	Referring to your workplace, or an example provided by your assessor, access previous financial reports and identify any profits and losses. Refer to Profit and Loss statement. Using the information you identified in Question 1, list the possible reasons for the profits and losses.

Activity 1B

Objective	To provide you with an opportunity to analyse critical dates and initiatives in business plan and cash flow trends.
	Refer to the case study. Referring to your workplace, or an example workplace, access the business plan and identify any critical dates or future initiatives. Make a list of your findings and attach them to your workbook. Using workplace financial reports, or examples provided by the assessor, analyse the cash flow trends and explain the possible reasons for them.

Activity 1C

Objective	To provide you with an opportunity to review statutory requirements for compliance and liabilities for tax.
Equipment needed	Access to a computer connected to the internet.
	Refer to Case Study. Referring to your workplace, undertake research to review what the statutory requirements for compliance and liabilities for tax are for the business. Write the research findings below.

Activity 1D

Objective

To provide you with an opportunity to analyse existing software and its suitability for financial management.

Equipment needed

Organisational financial management software.

Your task:For this task, you need to download a free trial of Xero accounting software. Xero is an industry recognised accounting software program which is used to manage the finances of a business or organisation. Currently, it is a popular choice by many industries, due to the user-friendly features and set-up.

Download & Registration:

Xero Limited, 2016, '30 Day Free Trial', from: https://www.xero.com/au/signup/

Referring to your workplace and the financial management software, write a short 30-50 word summary of its suitability for financial management in the workplace.

Your summary must include:

• What software is currently being used
• The benefits of the software
• The disadvantages of the software
• Whether it is suitable for the current business needs.

Write your summary below.

	Summary
What software is currently being used?
The benefits of the software
The disadvantages of the software
Whether it is suitable for the current business needs

Activity 2A

Objective

To provide you with an opportunity to develop budget from previous financial data according to compliance, organisational and statutory requirements.

Using previous financial data from the workplace, or an example workplace, develop a budget that complies with statutory requirements. Refer to the case study and below scenario. Complete the Establish a Budget spreadsheet and upload. The budget must: Show fixed and variable costs Include estimated revenue Include any expenses Forecast profit Include cash flow Be developed according to organisational requirements Include financial delegations. Your task: In this assignment you are to prepare a detailed budget for I Love Coffee Shop. Analyse the following to determine the budget allocations and forecasting (estimating): profit and loss cash flow business plan (Case Study). You must also consider the following assumptions and /or directives: rent will go up to $75,000 per year starting from July 2020 insurance will go up by 5% sales for December to January will decrease again due to holidays the superannuation rate is 9.5% of wages and salaries Sandra will leave for 12 months maternity leave from 3rd October. Her annual wage is $25,000 and a replacement staff member will join the team from October earning $50,000 per annum. The following criteria must be met in this assignment: a prepared budget as per organisational standards for 2020 which aligns to the business plan and Case Study present informed and reasonable estimates and forecasting for allocations allocation of funds in accordance with statutory and organisational requirements (e.g. reasonable wage allocation and accurate superannuation allocation).

Activity 2B

Objective

To provide you with an opportunity to identify how to circulate budgets and confirm managers and supervisors understand budgets, reporting requirements and financial delegations.

This activity follows on from Activity 2A. List two (2) ways in which you could circulate the budget you developed in Activity 2A. Explain how you would ensure that managers and supervisors understand the information in the budget, the reporting requirements and the financial delegations. outline a strategy you can implement to ensure that all financial transactions are recorded Write your answer in 30-50 words.

Activity 2C

Objective

To provide you with an opportunity to identify how to confirm there are no opportunities for misappropriation of funds.

Imagine that the new full-time member has commenced working. Billy is very experienced and is great with people. But you notice that the finances are not balancing over the last 2 months since his employment. You believe that Billy has been stealing cash from the till. Complete theMisappropriation of Funds Table, providing the following information: describe how you would manage this serious risk to the business outline steps you could take to resolve the situation. Write your answer in 30-50 words.

Activity 2D

Objective	To provide you with an opportunity to review profit and loss statements, cash flows and ageing summaries and revise, where required.
	Refer to Ageing Summary. Access and review the workplace, or example workplace, profit and loss statements, cash flows and ageing summaries and write a report on your findings. Your report must include: Whether performance is as expected What revisions are required. Write the report below.

Activity 2E

Objective

To provide you with an opportunity toidentify discrepancies between agreed and actual allocations using audit trails.

What is an audit trail?
What is an audit trail used for?
List three (3) strategies to identify and improve discrepancies.	1. 2. 3.

Activity 3A

Objective

To provide you with an opportunity to identify organisational and statutory financial reporting requirements.

Equipment needed

A computer connected to the internet.

Using the internet and any workplace, or example workplace, documentation, identify and make a list of the financial reporting requirements.

This includes:

Organisational requirements
Statutory requirements

Activity 3B, 3C & 3D

Objective

To provide you with an opportunity to identify and prioritise significant issues in statements for review and decision making.

In your role as Financial Manager it is time to prepare a report for Sandra and Grant which explains your proposed budget for 2020, as well as recommendations for financial management. Complete the table, providing all the required information.

Report of Recommendations Table

Report of Recommendations for the 2020 Budget I Love Coffee Shop Pty Ltd
BUDGET 2020
Justification Justify the estimations and reasons for allocations in the budget.
Budget Implementation and Monitoring Strategies Clearly outline who is responsible for implementing the budget. What are the strategies for implementation and monitoring?
RECOMMENDATIONS
Financial Activity Recommendations Make a minimum of four (4) recommendations for strategies to ensure financial viability of the organisation.Think about ways that you could increase revenue and profitability of the business?
Priorities and Issues What are the priorities and issues that stand out? Where are the significant costs that are arising? What are the risks to the business?

Summative Assessments

The summative assessments are the major activities designed to assess your skills, knowledge and performance, as required to show competency in this unit. These activities should be completed after finishing the Learner Guide. You should complete these as stated below and as instructed by your trainer/assessor.

Skills, knowledge, and performance may be termed as:

• Skills- skill requirements, required skills, essential skills, foundation skills
• Knowledge - knowledge requirements, required knowledge, essential knowledge, knowledge evidence
• Performance - evidence requirements, critical aspects of assessment,performance evidence.

Section A: Skills Activity

The Skills Activity is designed to be a series of demonstrative tasks that should be assessed by observation (by the assessor or third party, depending on the circumstances). In some cases, skills will be demonstrated in writing, where the criteria fits.

It will demonstrate all of the skills required for this unit of competency - your assessor will provide further instructions to you, if necessary.

Section B: Knowledge Activity (Q & A)

The Knowledge Activity is designed to be a verbal questionnaire where the assessor asks you a series of questions to confirm your competency for all of the required knowledge in the unit of competency.

Section C: Performance Activity

The Performance Activity is designed to be a practical activity performed either in the workplace or a simulated environment. You should demonstrate the required practical tasks for the unit of competency and be observed by the assessor and/or third party, as applicable to the situation. If the third party is required to observe you, you will need to make the required arrangements with them.

If necessary for the activities, you should attach completed written answers, portfolios, or any evidence of competency to this workbook.

Section B: Knowledge Activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

• Processes to establish and review profits and losses from financial statements
• Requirements for financial probity
• Principles of accounting and financial systems
• Key functions of financial management software
• Key components of a financial budget
• Legislation and conventions relevant to financial management in organisation
• Australian Tax Office (ATO) requirements for Goods and Services Tax, Company Tax, Pay As You Go (PAYG).

Answer each question in as much detail as possible.

1. List the financial documents that you might use to establish profits and losses.

1. Explain the process you would use to review profits and losses.Max. 50 words.

1. Explain how financial probity is undertaken in your workplace.Max. 50 words.

1. Explain the financial reporting requirements for your workplace.Max. 50 words.

1. List the key functions of the financial management software in your workplace.

1. What financial information might you use to develop a budget?Max. 50 words.

1. List the information that you need to include in a budget.Max. 50 words.

1. At what point does a business have to register for Goods and Services Tax?Max. 50 words.

1. What are the high and low rates of Company Tax?

1. What type of businesses pay Company Tax?Max. 50 words.

1. Explain what the Australian Tax Office requirements are for Pay As You Go Withholding.

Max. 50 words.

1. Referring to your organisation, explain the legislation and conventions that apply to financial management in the business.Max 50 words.

Section C: Performance Activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

This activity will enable you to demonstrate the followingperformanceevidence:

• Manage finances for at least one organisation or work area.

In the course of the above, the candidate must:

• Review previous financial statements
• Prepare, implement and revise a budget that:
• aligns with business plan
• is based on research and analysis of previous financial data and cash flow trends
• meets compliance, statutory and organisational requirements
• Contribute to financial bids and estimates
• Communicate with other people, including:
• reporting on financial activity and making recommendations
• ensuring managers and supervisors understand key elements of relevant budgets
• Analyse effectiveness of existing financial management approaches, including:
• reviewing financial management software
• managing risks of misappropriation of funds
• ensuring systems are in place to record all transactions
• maintaining audit trail
• complying with due diligence.

Answer the activity in as much detail as possible.

1. This activity will require observation. Your assessor has a list of criteria to base your assessment on.

This is a roleplay activity; you are the manager and a small group of peers are the other managers and supervisors.

You must present the I Love Coffee budget to the group and explain the details.

During the presentation, you must:

• Give everyone a copy of the budget
• Explain the contents of the budget
• Inform the group of the reporting requirements
• Explain the financial delegations
• Ask questions to confirm the information has been understood
• Answer any questions you are asked.

1. Undertake a review of the budget to confirm that there are no opportunities for misappropriation of funds.

Write a short 30-50 word summary detailing the steps you have taken to do this.

The summary must include:

• Risks that have been identified
• How they have been managed.

Write the summary below.

1. Using workplace financial documentation, identify and prioritise any significant issues that require reviewing or revising.

Write the findings below.

1. Using the information gathered in Question 3, prepare a financial recommendations report.

The report must include:

• A summary that outlines the reason for the report
• A main body that includes the issues and recommendations
• Any actions that need to be taken.

Write the report below.

1. Review the financial management processes in your workplace and write a report on their effectiveness.

Your report must include:

• The workplace processes
• What works well
• What could be improved.

Write the report below.