INTRODUCTION:
Instructions to Candidates
This assessment has been developed to provide you with the opportunity to demonstrate your skills knowledge and ability to undertake budgeting, financial forecasting and reporting requirements, 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
To be deemed competent you will be required to provide evidence of:
- preparation of budgets which align with the business plan, use previous financial data and meet all compliance requirements analysis of the effectiveness of existing financial management approaches knowledge of the requirements of the Australian Tax Office If you are not in the workplace please request your assessor to provide you with the assistance required to enable you to address all assessment items. It is essential that you have access to:
- appropriate documentation and resources normally used in the workplace
SECTION ONE
Practical Assessment
Your task
From the historical data provided in the following tables, calculate the budget figures for Income and Expenses for the next twelve months and enter them into a spreadsheet similar to the example below
| Income |
Total
Budget
Figure |
Quarterly Budget Figure
|
Actual Budget Figure |
Variance |
|
Grants
|
$115,000.00
|
$28,750.00
|
$75,000.00
|
$46,250.00
|
|
Subsidies
|
$285,000.00
|
$71,250.00
|
$70,000.00
|
-$1,250.00
|
|
Donations
|
$1,500.00
|
$375.00
|
$175.00
|
-$200.00
|
|
Sales
|
$977.50
|
$244.38
|
$200.00
|
-$44.38
|
|
Memberships
|
$650.00
|
$162.50
|
$180.00
|
$17.50
|
|
Special fundraising events
|
$2,875.00
|
$718.75
|
$365.00
|
-$353.75
|
|
Total income
|
$406,002.50
|
$101,500.63
|
$145,920.00
|
$44,419.38
|
Task Two
The organisation is hopeful of a surplus of $120,000 at the end of the financial year, which will enable them to commence Stage 2 of their building program. Are they on track to meet this target?
Task Three
Using the report structure provided by your organisation prepare a report for the management committee, outlining the current situation, areas of concern and suggested actions
Task Four
Complete the table below to show the meaning of the following incoterms acronyms
Task Five
PAYG
(a) Briefly explain the role of the Australian Taxation Office (ATO)
(b) List two types of taxes collected by the ATO
(c) List two other responsibilities of the ATO
Task Six
Explain the meaning of each of the following terms
(i) Goods and Services Tax
(ii) Company Tax
(iii) PAYG
Case Studies
1. Lazy Days Retirement Village has been receiving government grants to the tune of $115,000 per annum. A recent change of Government has resulted in a reduction to $95,000.00 per annum.
Explain what changes you would make to your budget to accommodate this reduction.
2. Lazy Days Retirement Village has been receiving government grants to the tune of $115,000 per annum. A recent change of Government has resulted in an increase to $125,000.00 per annum.
Explain what changes you would make to your budget to accommodate this reduction. How would you handle this increase?
3. If you were faced with an unexpected CPI increase, suggest one action you could take.
SECTION Two Written Questions
1 Explain the system used in your organisation to ensure systems, records and reporting procedures are maintained.
2 Explain the process followed in your organisation when budgets are being prepared
3 To whom are you do required to report on budget tracking?
4 Explain how collaboration with all departments will assist in the development and maintenance of the budget
5 What is meant by the term "forecasting* in relation to a budget?
6 What strategies have you implemented to ensure your time is managed in such a way that all required tasks are completed in accordance with legislation and the organisation's requirements?
7 The organisation for whom you work collects a deposit refundable if all conditions are met. Where would you allocate this money in your budget?
8 What procedures does your organisation follow to ensure they remain compliant with scheduled payment dates?
9 On what formula does a business generally set its bottom line? Generally the profit should be 10% of the total business assets
10 Explain the difference between cash and accrual accounting systems
11 Explain the basic difference in philosophy and governance of a profit and not-for-profit organisation.
12 List the possible order of a Chart of Accounts
13 List the principles of budgetary control
14 Explain the principle of double-entry bookkeeping
15 (a) What formula would you use to achieve the variable between actual and budget figure
(b) Why is it necessary to determine the variable figure?
16 Explain your organisation's policies and procedures for managing budgets and forecasts
17 Explain the principles behind accrual accounting
18 What procedures does your organisation follow to ensure the integrity of the accounting system?
19 What systems does your organisation have in place to ensure that information provided in forecasts is an accurate prediction for the organisation? Responses will vary depending on the nature and size of the organisation
20 Suggest three possible benefits of a bi-lateral trade agreement
21 What are incoterms
22 From 1 January 2011 the Trade Practices Act 1974 (Cth) has been replaced by the Competition and Consumer Act2010 (Cth)
Suggest three ways in which trade practices have been affected by this action.
23 Briefly explain the purpose of the Warsaw Convention
24 Define World Trade Organisation
Attachment:- assessment.pdf