STUDENT NUMBER ASSESSOR’S NAME
ASSESSMENT DUE DATE: 5.00 pm, insert date
ASSESSMENT TYPE: Individual assessment
ASSESSMENT FORMAT: Case study Project
? This assessment task is due to be submitted at reception by 5.00 pm on the insert date .
? Any variations to this arrangement must be approved in writing by your assessor. Students may request alternative arrangements subject to individual circumstances in consultation with the course coordinator and trainer of the unit.
? Your assessment must be word-processed and submitted with any required evidence attached, unless specified otherwise.
? A completed cover sheet must be submitted with all assessments.
? Failure to submit your completed assessment at the date specified will be deemed as non-submission.
? You are required to fill in, sign the academic honesty statement, and attach the assessment cover sheet to the front of your submitted assessment. Ensure you sign the receipt form when submitting.
? Plagiarism: Failure to adhere to the plagiarism policy, as outlined on the assessment cover sheet, will lead to the non-acceptance of the submitted assessment, as well as a written warning for breach of the policy.
PERFORMANCE OBJECTIVE AND ASSESSMENT DESCRIPTION
The learner is required to demonstrate their ability to conduct and analyse a range of financial and management documentation in order to develop appropriate financial management plans and approaches. The learner is also required to demonstrate their skills and knowledge to review, contribute to and develop financial management processes and procedures, and continuous improvement in organisational financial processes.
The assessment item is to be submitted as a Project Report, including appropriate responses to all of the associated questions following the brief project scenario and instructions.
INSTRUCTIONS FOR STUDENTS
Assessment 1 is compulsory. You are required to achieve competency in all questions in order to be deemed Competent for this unit.
Read the brief scenario below, followed by instructions for this project. Ensure you have access to all required information and documents before you begin, then answer all of the questions and complete all of the required tasks under 'questions'.
You have received an email from Mike Booth, Managing Director of Financial Operations at BizOps' Enterprises, as follows:
In order to complete this assessment, you must have access to the following documents:
• Budgeting and financial planning procedures (Appendix A)
• Financial reports (Appendix B)
• BizOps Company Business Plan (Appendix C)
• Cashflow worksheet assumptions (Appendix D)
• Profit and loss worksheet assumptions (Appendix E)
• Balance sheet worksheet assumptions (Appendix F)
• Aging Summaries (Appendix G)
• BizOps Risk Management Policy (Appendix H)
• Risk Management Procedures (Appendix I)
• Risk management plan template (Appendix J)
The documents are available as electronic and printed Assessment Appendices and will be supplied by the trainer/assessor. You can also access the required documents by accessing the web link or scanning the QR codes on p. 98-99 of your unit resource.
Carefully read and analyse the required documents and all of the requirements in each question. You are required to provide responses to each question or task in the question section below and submit it in the required format and before the due date for the task. You must meet all of the criteria for each question in order for your performance to be deemed satisfactory in the task overall.
1. Review the budgeting and financial planning procedures document (Appendix A) and note the steps of the budgeting process. Using the procedures document as a guide, prepare a financial and budgeting plan for BizOps for the next financial year. Add timelines showing critical dates.
2. Review the BizOps' Business Plan (Appendix C) and note the goals/objectives for maintaining financial stability. Using a spreadsheet, prepare a histogram clearly showing a 5 year financial plan for BizOps. Generate a one-page document that includes your histogram and summarised points of the financial direction for future budgets.
3. Review BizOps’ financial reports (profit and loss statements-Appendix E, cash flows-Appendix D and aging summaries-Appendix G) and consider the information for planning future budgets. Prepare a report to BizOps Managers and Supervisors about the organisation's current financial position. The report needs to be clear and concise and include the following:
a) Demonstrated analysis of the:
- net profit margin
- net profit ratio
- cash flow return on assets
b) Demonstrated analysis of the areas of the business that have the greatest impact on the business's profit and loss
c) Identify major variances in the profit and loss budget and explain the likely impact on annual performance
d) Show the organisation's current position as compared to the previous years by summarising the cashflow trends
e) Include a list of recommendations for the ongoing maintenance of financial viability
4. Prepare preliminary budgets for BizOps for the next financial year (2016/17) which align with the business plan. Note: Base information, worksheets and underlying assumptions for each preliminary budget have been provided. The budgets that you need to prepare must be clear for Managers and Supervisors and must include:
a) A forecasted cashflow budget for the next financial year
b) A forecasted profit and loss budget for the next financial year
c) A forecasted balance sheet as at end of next financial year (currently 30 June 2017).
5. Review BizOps' budgeting and financial planning procedures. Using the budgets and balance sheet as prepared in question 4 (a-c), create a checklist to ensure these documents comply with organisational and statutory requirements.
6. Review and analyse BizOps existing financial management approaches, and advise suggestions for improvement to the following systems:
a) The financial management software used
b) Managing risks of misappropriation of funds (refer to BizOps’ Risk Management Policy and Procedure)
c) The systems in place to record all transactions and maintain audit trails – ensuring discrepancies are identified between agreed and actual allocations
d) Compliance with due diligence