Carefully read the following scenario.

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

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

Over the last two years, the company has diversified, and now offers regular professional development workshops on all aspects of leading and managing staff. These workshops are conducted approximately every 3 months in all major cities including Sydney, Brisbane and Melbourne. In 2016 - 2017, the company ran a total of 36 workshops. The company has also recently produced an E-book about leadership techniques.

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

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

As the General Manager for the company and with responsibility for finances, you are currently completing the financial planning for the year ahead. This involves a review of the company's business plan, previous year's profit and loss statement, the current business plan and strategic directions and cash flow statements. Based on the review, you will be establishing budgets and allocating funds.

In developing the budget, you are to assume a 5% increase in cost of sales, as well as a 10% increase in sales for consulting services and executive search.

As set out in the business plan, the company plans to run an annual conference each year starting in 2018. The costs for the conference have been estimated by the Principal Consultant and are set out in the Estimated Costs and Income document. Conference attendance is aimed at 100 people paying $750 each.

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

Complete the following activities:

1.Prepare a financial performance report

Review the case study scenario above, as well as the information provided in Profit and Loss 2016/17 and Cash Flow Statement 2016/17 Using this information, identify areas of the business that have generated a profit and those that have generated a loss.

Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you and economic conditions and business trends that may have resulted in the profit or loss.

Your report should include the following:

Overview of the purpose of the report.

Analysis of the previous year's (2016 - 2017) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin and net profit/loss margin.

Analysis of overall business performance, as well as performance of each of the income streams for 2016 - 2017.

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

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

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

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

Use the Finance Report Template to guide your work.

2.Develop Budget Forecast

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

Use the Budget Forecast Template to guide your work.

Ensure that your budgetincludes the estimated income and costs for the conference and e-book to be implemented in 2018 in the document Costs and Income

Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as set out in the Costs and Income data.

3.Develop report on key financial compliance requirements and liabilities for tax

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

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

The report should explain:

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

PAYG withholding obligations

PAYG income tax instalment

Payroll tax obligations (state government)

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

4.Draft an email to the Principal consultant (Assessor)

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments. Ask them to read the documents in preparation for discussing them at the upcoming meeting.

Attach the following to the email:

Your financial report

Your budget forecasts

Your financial compliance and tax liabilities report

5.Prepare for Meeting

The Principal Consultant has approved your budget for the upcoming financial year, 2017 - 2018. You are now required to meet with the Senior Managers to communicate the budgets you have developed.

Print off a copy of the following to take with you to the meeting:

The budget that you have developed.

The Financial Policy and Procedures. You will be required to explain key reporting requirements to the Managers attending the meeting, as well as financial delegations. Review this document and highlight the relevant passages.

Your report on key financial compliance requirements and liabilities for tax

At the meeting, you will need to:

Discuss the budget you have developed and the rationale for the budget figures.

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

Explain that there will be no more workshops conducted.

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

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

6.Conduct Meeting

Conduct the meeting as set out in the requirements above, making sure that you provide the team with all the required documentation.

During the meeting, demonstrate effective communication skills including:

Speaking clearly and concisely

Using non-verbal communication to assist with understanding

Asking questions to identify required information

Responding to questions as required

Using active listening techniques to confirm understanding

ASSESSMENT TASK 3:BUDGET REVIEWPROJECT

Task summary

This assessment task requires you to review Grow Management Consultants' Profit and Loss and Cash Flow statements for 2017-18.

This assessment is to be completed in the simulated work environment in theSCA.

Required

Access to textbooks/other learning materials

ComputerwithMicrosoft Officeand internet access

Profit and Loss 2016/17

Profit and Loss 2017/18

Cash Flow Statement 2016/17

Cash Flow Statement 2017/18

Financial Performance Report Template

Estimated Costs and Income

Timing

Your assessor will advise you of the due date of these submissions.

Submit

Write a financial performance report

Draft an email to the Principal Consultant

Assessment criteria

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.