QUESTION 1

Blue Healer is a health resort and convention centre based in the Blue Mountains near Sydney which has been operating for 5 years. The resort, Blue Healer, is made up of five areas: catering, spa, meeting rooms accommodation, and administration. Blue Healer is very popular due to its competitive pricing structure, quality service and state of the art facilities. The resort was set up by Paul Byrnes, a burnt out consultant who wanted to provide a service for corporate executives to retreat from their business for at least a short time. Paul had a lot of networks and to date most of the business has been from Paul's existing networks and word of mouth referrals. The business has a functional web site. Sales continue to increase but Paul wants to retire completely and step back from the business. Thus he has hired a Resort Manager to oversee the business (you). An important aspect of the business that he wants the Resort Manager to focus on is preparing and monitoring budgets. Current staff include an Accounts and Administration Manager, Resort Supervisor, Housekeeping staff, receptionist and contract therapists. Profit and loss reports show the status of the business' financial health.

QUESTION 2

Determine and confirm scope and nature of the budgets

In your new role, the first step you need to take is to the determine the scope and nature of all of the budgets that need to be prepared for Blue Healer. Draft an email to send to Paul to find out this information. Ensure your email includes questions that will provide all of the information you need to know, as well as identifies internal data sources that you need to access. Paul Byrnes (your assessor) will answer your email so that you are able to forget ahead with developing the required budgets.

QUESTION 4

Item 4 of 8

Send an email to the CEO and Accounts and Administration Manager (your 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 attachment. Attach your Marketing Budget Briefing Report to the email. Ask for input on your Marketing Budget Briefing Report. The CEO and Accounts and Administration Manager (your assessor) will provide you with feedback for input into your budget.

Marketing Budget Briefing Report

Summary

Summary of information provided regarding the marketing budget briefing report.

Marketing expenditure

Review of expenditure on marketing for 2017/2018 and 2018/2019.

Sources of information

Identify at least two sources of information on recommended marketing expenditure that could be used to inform the marketing budget. Describe the sources of information and what they tell you.

External factors

Identify and describe external factors that could impact on the marketing budget. This means that you should conduct market research on trends within the industry in terms of growth and opportunities and the types of marketing that similar businesses are conducting.

QUESTION 5

Item 5 of 8

Draft Marketing Budget

You are required to draft a Marketing Budget based on your Marketing Briefing Report and the input provided from the CEO and Accounts and Administration Manager (your assessor). To develop the Marketing Budget, you should use the accounting software used by your RTO. Save this document as draft Marketing Budget and send it via email to the CEO and Accounts and Administration Manager (your assessor). Your email should clearly outline the options for marketing expenditure as per your marketing budget, as well as your recommendations for the budget. You will discuss your draft budget at a meeting with the CEO and Senior Managers. Your assessor will advise you of the date of the meeting.

QUESTION 6

Item 6 of 8

Participate in a budget meeting.

The next part of the assessment requires you to participate in a meeting with the CEO (role-played by your assessor) and the Accounts and Administration Manager (role-played by another student to discuss the marketing budget. At the meeting, the CEO will attempt to negotiate another option for the budget. You are required to demonstrate your negotiation skills to persuade the meeting participants that your budget is the best option. At the meeting, you will need to: Explain the marketing budget you have developed and the various options. Seek input on the budget. Negotiate for your budget as presented. During the meeting, you will need to 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.

QUESTION 7

Item 7 of 8

Revise the marketing budget

Following the meeting, revise your marketing budget to incorporate feedback from the CEO and Accounts and Administration Manager. You are to revise your marketing budget and send it out as Final Marketing Budget within 2 days of holding the meeting. You will be assessed on meeting this timeline. Save this document as Final Marketing Budget and send it out via email to the CEO and Senior Managers. 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 attachment.

QUESTION 8

Item 8 of 8

Meet with colleagues to discuss the marketing budget.

The final part of the assessment requires you to meet with colleagues to confirm the Marketing Budget for the year. You are also required to introduce the team to the company's Finance Policies and Procedures. This is to ensure that they understand financial management responsibilities and reporting arrangements so that the marketing budget can be accurately implemented and monitored. These requirements form part of the company's requirements for finalising budgets. At the meeting, you will need to: Discuss the overall budget allocation for marketing Discuss the amounts allocated to each marketing activity Provide an outline of the Finance Policies and Procedures. During the meeting, you will need to 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.

Blue Healer Spa

Finance Policy and Procedures

Blue Healer Spa

Finance Authorisation Policy and Procedures

Purpose of the Policy

All finance transactions as noted in this policy are to be authorised by the noted authorised person prior to the transaction being undertaken.

This policy is to be read in conjunction with other specific finance policies where relevant.

Procedures

Prior to any of the following finance transactions being undertaken, the authorising person noted must authorise the transaction.

Where additional policy is noted, this policy must also be adhered to when undertaking the finance transaction.

Finance Transaction	Authorised Person
Bank Accounts	CEO/Accounts and Administration Manager
Issuing Petty Cash	Senior Managers
Business Credit Card	Senior Managers
Authorising New Customers	Accounts and Administration Manager
Authorising New Suppliers	Accounts and Administration Manager
Purchasing Stock	Senior Managers
Purchasing Assets/ Equipment	CEO
Debt Collection	Senior Managers
Payment of Invoices	Senior Managers

Petty Cash Policy

Purpose of the Policy

Petty cash should be used to pay for small business expenses up to $100 where payments through accounts payable or credit card are not justified or appropriate

Procedures

Issuing Petty Cash

Petty cash vouchers must be completed before any cash is taken from the petty cash float.

Only up to $100 can be disbursed at any one time.

All petty cash vouchers issued must be approved by a Senior Manager.

Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent

All completed vouchers must have the following details included:

• Issue date of voucher
• Name of person who issued the voucher
• Amount of monies disbursed
• Details of expense
• Invoice or receipt
• Signature of approval person.

Reconciling Petty Cash

Petty cash float is to be reconciled at least monthly. This is the responsibility of {insert relevant job title here}

All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled.

The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made.

Reimbursement of petty cash will be authorised by a Senior Manager.

Use of Business Credit Card Policy

Purpose of the Policy

This policy provides guidelines for the issue and use of business credit cards.

Procedures

An employee will only be issued a credit card once the Credit Card Authorisation Form has been completed.

The business credit card can only be used for travel, authorised entertainment and purchases of small value expenses or equipment up to the value of $500.

No cash advances are to be taken using the business credit card unless authorised by the Finance Manager.

Where a business credit card is lost or stolen, the owner of this card is to notify the Finance Manager, who is responsible for notifying the issuing agency and ensuring the card is cancelled.

The business credit card is not to be used for personal expenses.

All holders of business credit cards are required to reconcile the monthly credit card statement to the expense form, attach all receipts for payments made on the credit card and have the expense statement authorised by the Finance Manager.

Upon completion and authorisation of the monthly expense statement, these documents are to be forwarded to the Finance Manager for payment of the credit card statement.

All business credit cards are to be returned to the business when the person is requested to by the Finance Manager or where they are no longer an employee of the business.

New Supplier Policy

Purpose

All new suppliers to the business must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the business objectives.

Procedures

Choosing a New Supplier

A new supplier must provide our business with quality products, great service, competitive pricing and efficient delivery.

The following information table must be completed prior to agreeing to services

Supplier Selection Background Information

Business Name of Supplier:

Location of Supplier:

Products/Services provided by supplier: (Attach a list if necessary)

Name of business owner/ sales representative:

For how many years has the supplier been trading?

Supplier Selection Review Checklist

For each new supplier being considered the following checklist must be completed:

Is the supplier pricing competitive? Attach list to this checklist:

What are the payment terms for this supplier?

What is the return policy for this supplier?

Does the supplier provide warranties, guarantees etc.?

Are the suppliers' representatives knowledgeable of the products/services and industry?

Is there an alternative to this supplier, has the alternative supplier been considered?

What are the delivery services of the supplier?

Has a credit check been undertaken for the supplier? (attach to this checklist)

Has thePersonal Property Securities Register (PPSR). been reviewed?

Has the supplier been trade checked? (attach this to this checklist)

insert relevant additional information to assist in the decision of appointing a new supplier

Appointment of Supplier

The appointment of a new supplier will be authorised by the Finance Manager.

All relevant details of the supplier will be entered into the financial system by Administration Assistance once approval is obtained from the Finance Manager.

The Finance Manager will review information entered into the financial system and independently verify the bank account or other payment details of the supplier to ensure payments made are to the correct supplier

Supplier Payment Terms

All purchases from suppliers must be supported by a purchase order.

Payment terms for all suppliers must be reviewed by {Insert relevant job title here} every {Insert timing of review here, recommended at least once a year}.Following this review each supplier must be approached to seek improved payment terms by Finance Manager.

All supplier payment terms must be a minimum of 30 days.

Any variation to the above must be authorised by Finance Manager.

All supplier payments are to be reviewed once a quarter to ensure that payment terms are adhered to. For payments made to any suppliers earlier or later than the agreed terms. The Finance Manager will preparea report that details the reasons why payment terms have not been adhered to.

This report will be reviewed and authorised by the CEO.