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This form is to be completed by the assessor and used as a final record of student competency.
All student submissions including any associated checklists are to be attached to this cover sheet
before placing on the students file. Student results are not to be entered onto the Student
Management Database unless all relevant paperwork is completed and attached to this form.
Student Name:
Result Reassessment
Please attach the following documentation to this form S = Satisfactory
NS = Not Satisfactory
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed NA = Not Assessed
Implement financial
Assessment Task 2 S | NS | NA S | NS | NA
management approaches
__________________________________________________________________________
__________________________________________________________________________
Student Declaration declare that this assessment is my own work Assessor Declaration declare that I have conducted a fair, valid,
based on personal study and research and not plagiarised or copied reliable and flexible assessment with this student. I have provided
from another student’s work or source. appropriate feedback and advised the student of their result.
Page 1 of 40
Assessment Task 1 BSBFIM501 Manage budgets and financial plans
Performance objective
The candidate will demonstrate the ability to plan financial management approaches.
Assessment description
In response to the scenario provided, you will clarify budget plans with your manager and negotiate changes to
the budget. You will then identify and analyze a risk to the budget and prepare a contingency plan to prevent or
minimize the risk.
Procedure
1. Read the scenario provided in Appendix 1 to this assessment task and tasks A
and B.
2. Prepare to meet with your manager (assessor) to clarify budget and negotiate changes:
a. identify areas of the budget that are not achievable, inaccurate or unclear
b. prepare to negotiate necessary changes to the budget
3. Set up a time with your manager to meet. Meet with your manager (assessor) to clarify budget and
negotiate changes:
a. identify at least two issues for clarification
b. negotiate at least two changes
c. include discussion of basic accounting principles
d. refer to relevant legislation and ATO requirements
e. refer to principles and techniques of managing budget items
f. Take and keep notes of agreed changes.
4. Use the template provided in Appendix 3 to this assessment task to prepare a contingency plan
document for persistent risks after budget changes
5. Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of
all work submitted for your records.
Page 2 of 40
Assessment Task 1 BSBFIM501 Manage budgets and financial plans
Specifications
You must:
● meet with your assessor to clarify budget and negotiate changes
Appendix 1 –Scenario
Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles
which it sells to retailers in the domestic Australian market.
The senior management structure of the company appears below.
Person Position
Michelle Yeo Chief Executive Officer (CEO)
According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The
chief risks to this goal are:
● poor sales due to economic downturn
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Assessment Task 1 BSBFIM501 Manage budgets and financial plans
In addition to Australian operations, the company is considering manufacturing overseas to take advantage of
reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales
of one product.
Role
You are the manager of Sales Centre A, based in Adelaide. The Centre has achieved great success over the last
year and consistently outsells other sales centers. In fact, due to the large number of accounts managed by your
sales team and larger staff, your Centre is expected to sell as much volume as the other two sales centers put
together. Naturally, you expect cost allocations to reflect the both the needs and importance to the business of
Cost Centre A.
Task A
The Sales General Manager, Sam Gellar, has asked you to review the master budget and cost Centre budgets
prepared by the Senior Accountant. She would like you to meet with her to discuss the whether the budget
projections are achievable, accurate, understandable and fair.
She would like you to look closely at the budget for your cost Centre, note any changes you think are
necessary, develop an argument for the changes and negotiate those changes with her.
Information you are aware of includes:
● Sales in the first quarter (Q1), third quarter (Q3), and the fourth quarter (Q4) are generally 30% less than
the second quarter (Q2).
● Sales in Q2 depend on completion of 90% of repair and maintenance.
Task B
It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic climate,
sales volume may be 20% below target this financial year. Tom is worried that this may severely impact profit
projections. The company can accept as much as a 10% variance in profit projections; however, more than this
could severely affect the company’s ability to pay obligations and invest. Reliable data to determine whether the
risk has eventuated should be available by mid Q2, when sales data for the company’s product are in.
As a special project, the Managing Director has asked you to perform a risk assessment and develop a
contingency plan to manage the risk of sales falling 20%.
As per organizational policy you should use the contingency plan template provided.
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Assessment Task 1 BSBFIM501 Manage budgets and financial plans
Budget preparations
● The business plan will set the key parameters for all financial budgeting.
● Variations to the business plan must be approved by the CEO and senior management strategic
committee.
● Prior period results are to be analysed to identify the profit level of cost centres, identify correlations
between financial statistics and to set key performance indicators and benchmarks for future budgets.
● The budget planning committee will meet prior to budgets being developed and agree on budget
parameters. The committee will consist of all department managers plus the CEO and CFO.
● A CAPEX budget will be developed from the approved business plan.
● A detailed sales budget must be completed before completing the profit budget for the year.
● A cash flow budget covering the first three months will be prepared after the profit budget is completed.
● A master budget including profit projections will be completed from which cost centre allocations will
be made.
● Budget notes that contain all the assumptions used in the budgets should accompany the master budget
or be made available as a separate document. Where possible, the notes should justify the basis on which
the estimates were made.
● Overheads (non-direct expenses) will be apportioned across the cost centres equally. Exceptions need to
be negotiated with relevant authorities.
● All expenses and income will be spread equally throughout the year unless otherwise required by
business needs or business environment.
● The financial cycle for budgeting purposes will be yearly ending 30 June.
Financial delegations
● Each manager is responsible for achieving the revenue budgets agreed to by the budget committee.
● Each manager is responsible to approve, by signing the necessary paperwork, all expenditures that fall
within their area of responsibility.
● Expenditures must be within the budget guidelines for the individual departments.
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Assessment Task 1 BSBFIM501 Manage budgets and financial plans
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Assessment Task 1 BSBFIM501 Manage budgets and financial plans
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan:
Name: Position:
Risk identified:
Page 7 of 40
Your answers for task 1:
BSBFIM501 Manage budgets and financial plans
As asked by you I reviewed the master budget of the company for the year ending 30 June 2012
and cost Centre budgets prepared by senior accountant in accordance with the budget preparation
policies of the company. During the review I identified some areas which are unclear, inaccurate
and not achievable. I want to discuss the following issues:
1. The budget preparation policies of the company require the cost allocation equally to all cost
centers but they also allow exception after negotiations with authorities and approval of CEO. In
the cost Centre budget the expenses have been allocated equally but the sales at cost Centre A are
generally more than the total sales of other two sales centers. According to the fundamental
accounting principle of prudence the cost allocation shall be made on a fair basis for the cost
centers according to their sales.
2. It is estimated that the sales of Q2 are likely to be $1,000,000 whereas the sales of remaining
three quarters are generally 30% less than the sales in Q2. As per the ATO legislation and
accounting principles, the accounting shall be done on the accrual basis i.e. accounting transactions
should be recorded in the accounting periods when they actually occur, rather than in the periods
when there are cash flows associated with them. This is the foundation of the accrual basis of
accounting. It is important for the construction of financial statements that show what actually
happened in an accounting period, rather than being artificially delayed or accelerated by the
associated cash flows. And therefore the projected sales for each quarter shall be allocated
accordingly. The sales in the master budget have been allocated equally to all the four quarters.
3. The commission on sales is negotiated with the sales team members to be 2/5 =5 of sales but
the commission in the master budget are included @2% of sales.
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Your answers for task 1:
BSBFIM501 Manage budgets and financial plans
4. The presentation of items shall be properly made for calculation of gross profit. Revenues shall be
presented at beginning from which cost of goods sold commission and direct expenses shall be
deducted to arrive at the gross profit.
If you agree with the above changes required to be made in the budgets the proposal could be
made to the CEO for approval.
Task B
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan:
Name: Tom Copeland Position: Managing Director
Risk identified:
● Sales volume is likely to be 20% less than the target for the financial year
● Adverse effect on liquidity resulting in difficulty to pay obligations and invest in the business
operations
Effective marketing and advertising to increase the By the end of Operations general
product demand Q1 manager/ Marketing
Manager
Develop effective financial management plan on the By the end of 1 Senior Accountant/
basis of cash budget to make arrangements for month Finance Manager/
procurement of funds for business. CFO
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Your answers for task 1:
BSBFIM501 Manage budgets and financial plans
Notes:-
Effective marketing
Customization of products
Increase in productivity
Effective management
Budgeting
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Your answers for task 1:
BSBFIM501 Manage budgets and financial plans
Page 11 of 40
Facilitator Guide BSBFIM501 _Marking Guide_Task 1
Marking Guide
Assessment Task 1: Plan financial management approaches
Assessment site
Outcomes
Satisfactory
Submit notes?
Page 12 of 40
Facilitator Guide BSBFIM501 _Marking Guide_Task 1
Performance indicators
Satisfactory
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Facilitator Guide BSBFIM501 _Marking Guide_Task 1
Satisfactory
Page 14 of 40
Facilitator Guide BSBFIM501 _Marking Guide_Task 1
Comments/feedback to candidate
Assessor name:
Assessor signature:
Page 15 of 40
Assessment Task 2 BSBFIM501 Manage budgets and financial plans
Performance objective
The candidate will demonstrate the ability to implement financial management approaches.
Assessment description
In response to the scenario provided, you will access and communicate details of budget to a team member
(assessor). You will then support the team member to perform their required role with respect to software
resources and systems.
This assessment adds to the assessment one and introduces the use of spread sheets and excel.
Procedure
1. Read the scenario provided in Appendix 1 to this assessment task and tasks A
and B.
2. Prepare to meet with your team member(assessor) to communicate budget and then coach and train
them in new role:
a. access required budget information from assessor
b. Determine organisational needs. Consider describing how a budget is used to monitor work
performance, variation and team/division outputs.
c. Identify coaching/training needs of team member.
d. plan coaching/training session:
i. Outcome: team member produces spreadsheet to meet management requirements.
Consider why organisations need accurate and timely financial information.
ii. Include activities/elements to instruct, practice, test, motivation techniques to help aid
the team understand the importance of change and new measurement for the budget.
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Assessment Task 2 BSBFIM501 Manage budgets and financial plans
iii. keep notes of your conversation with your assessor and write a summary of them on one
page.
e. Set up a time with your team member to have a coaching/training session.
3. Meet with your team member (assessor) to coach them in role:
a. Explain budget and relevance to team member’s accountabilities
b. Use appropriate coaching techniques or models such as GROW
c. Use appropriate motivational theory
d. Train learner in required spreadsheet techniques, include elements of instruction, practice and
testing/feedback
e. Include recordkeeping requirements for Australian Taxation Office (ATO) and auditing
purposes, for items such as petty cash, and GST.
4. Submit all documents required in the specifications below to your assessor. Ensure you keep a copy
of all work submitted for your records.
Specifications
You must:
● meet with your assessor to role-play support of team memberapprox tens
● knowledge of basic accounting principles to identify and use account balances in communication and
training
● knowledge of organisational requirements related to financial management, such as those contained
in organisational policies and procedures
● requirements for organisational recordkeeping and auditing with respect to petty cash
Appendix 1 – Scenario
Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces
bicycles which it sells to retailers for on-sale in the domestic Australian market.
The senior management structure of the company appears below:
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Assessment Task 2 BSBFIM501 Manage budgets and financial plans
Person Position
Michelle Yeo Chief Executive Officer (CEO)
According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000.
The chief risks to this goal are:
● poor sales due to economic downturn
In addition to Australian operations, the company is considering manufacturing overseas to take advantage
of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor
sales of one product.
Role
You are the manager of Sales Team A. You manage a small team of sales team members. Your duties
include accessing budget information for your team, explaining relevant aspects of budgets and features of
budget documents to your team, and supporting team members to achieve performance goals.
Task A
You have determined that you will need to access budget information from the Senior Accountant to explain
to your team. You will explain the overall financial objective of the business, provide an overview of the
budget and explain how the budget translates to expense allocations for the team.
Task B
You have determined that one team member, Bill Goodale, will be responsible for tracking expenses and
petty cash throughout the financial year. To meet organisational needs, this duty will need to be performed
in accordance with policies and procedures.
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Assessment Task 2 BSBFIM501 Manage budgets and financial plans
You have determined that expenses will need to be divided equally and tracked by quarter. Bill will need
to develop a spreadsheet to keep track of actual expenditure by account. To help control expenses, the
spreadsheet will need to provide an ongoing tally of expense by account.
Bill’s skills include basic accounting. Bill needs to be informed of Big Red Bicycle policies and procedures
for petty cash. Bill is familiar with Microsoft Excel but does not know how to use formula and functions to
sum columns or rows of figures.
Consider part of this process is the way organisations maintain business records.
Think about computer based systems like excel that can be used effectively instead of the manual system
The spreadsheet used is important and what sort of training is required to help the team members as if not
used correctly there may be underlying errors that affect the accuracy of the accounts.
Think why organisations need correct and timely information.
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Assessment Task 2 BSBFIM501 Manage budgets and financial plans
Expense reimbursement
Purpose of the policy
To detail procedures to be followed in relation to expense reimbursement of expenses that have been
incurred on behalf of the organisation.
The policy
Big Red Bicycle will reimburse staff for reasonable and authorised expenses that have been incurred by
them on behalf of the organisation or in the course of conducting Big Red Bicycle business.
Procedure
1. Staff will not be reimbursed in the following circumstances:
a. any late payment penalties, e.g. overdue interest on credit cards
b. expenses that are usually recovered from a third party
c. penalties and fines, e.g. parking, traffic
d. those claims that should have been made using the purchase order system
e. those expense claims made by staff as a tax deduction
f. those expenses that were not made for business purposes.
2. Travel expenses claims:
a. insurance for trip cancellation will be reimbursed
b. mileage allowance will be given for the use of a staff member’s vehicle when used for work-
related travel
c. personal stopovers or indirect routes will not be reimbursed
d. travel reimbursement is provided for the most direct and economical mode of travel available;
circumstances will be considered on a ‘case-by-case’ basis.
3. Accommodation expenses:
a. reimbursement will cover moderate accommodation expenses; circumstances will be
considered on a ‘case-by-case’ basis
b. items of a personal nature that are charged to a hotel account will not be reimbursed.
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Assessment Task 2 BSBFIM501 Manage budgets and financial plans
Petty cash
Purpose of the policy
To detail procedures to be followed in relation to tracking petty cash expenditure.
The policy
Big Red Bicycle maintains a petty cash system to allow authorised personnel to pay for small expenditures
in connection with business activity.
Procedure
1. One team member is authorised to disburse petty cash with one alternate in case of sickness or
emergency.
2. Petty cash is to be kept secure, locked in safe.
3. Receipts for cash must be issued.
4. Receipts must be reconciled at the close of each business day.
5. Amounts over $800 must be banked.
6. Petty cash expense will be recorded as miscellaneous expense.
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Your answers for task2
BSBFIM501 Manage budgets and financial plans
Task A
The budget is being prepared for the company in accordance with the business plan which relates
to establishing major parameters for all the financial requirements (Kung et al, 2013). The
benchmarks for the budgets will be determined on the basis of comparison of results of previous
periods with current profit level of cost centres and using financial statistics to identify the
correlations.
Functional objectives of business – The functional objectives of the budget will include
preparation of CAPEX budget on the basis of strategic plan of business. His sales budget will be
prepared before the profit budget. After the profit budget is prepared the cash flow budget will be
prepared for the first three months. After this the master budget will be prepared including the
projection of profit and on this basis the allocation of expenses to the cost centres will be made.
The overheads are to be apportioned equally unless exceptions are negotiated and approved. The
expenses and incomes are divided equally unless the business situations require otherwise. The
financial cycle will be one year which ends on 30 June.
Budget overview – The budget is prepared for the financial year ending 30 June 2012 and the
bifurcation of incomes and expenses has been for all the four quarters equally. The expenses are
classified as general and administration expenses, marketing expenses, employment expenses
and occupancy costs. The sakes cost centre expense budget has also been prepared which
includes bifurcation of commission, wages, and telephone and office supplies equally to all the
cost centres (Ferry et al, 2014).
Expenses allocation
Expense reimbursement policy – This policy relates to reimbursement of expenses which are
reasonable and authorised for conducting the Red Cycle business incurred by employees, The
expenses for which staff will not be reimbursed are specifically provided. The details of clams to
be made for travel expenses, accommodation expenses and employee’s own meals have also
been provided. A signed Expense Reimbursement Form has to be submitted with the relevant
documents attached.
Petty Cash Policy – This policy relates to procedures for tracking the petty cash expenses under
which the authorisedbusiness persons could make small business payments. The disbursement of
petty cash is made by one team member with one alternate for emergency. The cash is locked in
safe and secured. All the receipts are issued for cash and are reconciled at the end of the day. The
amounts of cash receipts exceeding 800 are deposited into bank. The expenses are recorded as
miscellaneous expenses.
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Your answers for task2
BSBFIM501 Manage budgets and financial plans
Task B
Training needs
Bill Good ale who is one of the team members is required to keep tracking of petty cash and
expenses throughout the financial year. In order to keep the track record of actual expenditure
incurred for different accounts he will help to develop the spread sheet. Bill possesses good
accounting skills but he needs to learn about the policies and procedures of company for petty
cash. Apart from this he will also be required to learn how to use formulas ad functions in
Microsoft Excel.
Procedures to be followed
In order to update and improve his skills Bill shall adopt the GROW model of training. This
model includes four components which are as follows:
1. Goal
2. Current Reality
3. Options or obstacles
The goals to be achieved shall be determined first which include learning the formulas and
functions in excel and understand organizational policies of expense reimbursement and tracking
of petty cash. After this the goals are to be compared with the current situation of reality. The
options shall be explored to achieve the goals and at last stage the ways shall be adopted to learn
the processes (Pascanu et al, 2013).
The spread sheet techniques will include the formulas of calculating sum of many columns or
rows, using variance function and statistical functions to calculate the deviations of petty cash
expenses and tracking actual expenses by each account.
The organizational policies require keeping records for all the budget variation and deviations of
expenses reimbursements with the actual expenses. The tracking of petty cash shall be recorded
properly and regularly. Bill will have to maintain proper records of petty cash in the petty cash
register. The documents required by ATO and for GST compliance will have to be kept with tax
returns.
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Facilitator
Guide BSBFIM50
1_Marking Guide_Task 2
Marking Guide
Assessment Task 2: Implement financial management
approaches
Assessment site
Outcomes
Satisfactory
Performance indicators
Satisfactory
Page 24 of 40
Facilitator
Guide BSBFIM50
1_Marking Guide_Task 2
Satisfactory
Page 25 of 40
Facilitator
Guide BSBFIM50
1_Marking Guide_Task 2
Comments/feedback to candidate
Assessor name:
Assessor signature:
Page 26 of 40
Assessment Task 3 BSBFIM501 Manage budgets and financial plans
Performance objective
The candidate will demonstrate the ability to monitor and control finances.
Assessment description
In response to the scenario provided, you will create a simple spreadsheet budget to capture monitoring
information. Using information provided to you by your assessor, you will then use the budget spreadsheet
to produce a report on expenditure in accordance with organisational policies and procedures. You will also
modify a contingency plan.
Procedure
1. Read through the scenario provided in Appendix 1 to this assessment task and tasks A and B.
2. Design and develop a spreadsheet to capture budgeted and actual figures to produce a variance report.
3. Access actual budget figures from relevant managers and accounting systems (assessor).
4. Monitor and record actual figures.
5. Consider feedback from team members.
6. Produce a variance report as per organisational requirements.
7. Consider the scenario information and contingency plan provided and analyse the variance report.
8. Modify the contingency and implementation plans provided in the scenario to improve effectiveness.
9. Submit all documents required in the specifications below to your assessor. Ensure you keep a copy
of all work submitted for your records.
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Assessment Task 3 BSBFIM501 Manage budgets and financial plans
Specifications
You must provide:
● a budget variance report
● knowledge of principles and techniques involved in budgeting, profit and loss statements, electronic
spreadsheets.
Appendix 1 – Scenario
Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces
bicycles which it sells to retailers in the domestic Australian market.
The senior management structure of the company appears below.
Person Position
Michelle Yeo Chief Executive Officer (CEO)
Page 28 of 40
Assessment Task 3 BSBFIM501 Manage budgets and financial plans
According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000.
The chief risks to this goal are:
● poor sales due to economic downturn
In addition to Australian operations, the company is considering manufacturing overseas to take advantage
of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor
sales of one product.
Role
You are the Senior Accountant at Big Red Bicycle. A major component of your role is setting budgets and
monitoring budgetary performance for the organisation.
Task A
The Managing Director, Tom Copeland, has asked you to implement a process to monitor expenditure and
income. He has asked you to prepare a spreadsheet to capture and compare actual income and expenditure
to budgeted figures. Your spreadsheet must contain columns for each of the four quarters of the financial
year. You are required to gather data from the relevant managers (your assessor) to complete a budget
variance report.
The report should conform to organisational requirements in policies and procedures
and contain:
● columns to show actual account values
● absolute variance
● Percentage variance.
Task B
It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic
climate, sales volume may be 20% below target this financial year. Tom is worried that this may severely
impact profit projections. The company can accept as much as a 10% variance in profit projections;
however, more than this could severely affect the company’s ability to pay obligations and invest. Reliable
data to determine whether the risk has eventuated should be available by midway through the second quarter
(Q2), when sales data for the company’s product are in.
Consider the contingency plan and the implementation plan for the contingency below. You have already
implemented a portion of the contingency plan, namely the monitoring of budget performance in the
variance report you have prepared. You should now analyse the report to determine the effectiveness of the
contingency plan and its implementation.
You have received the following feedback from team members:
● Full-time workers and sales people are resentful of time wasting and distracting contract employees.
● Overtime not used but employees resentful of suggestion it might not be approved if needed.
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Assessment Task 3 BSBFIM501 Manage budgets and financial plans
● Training suited the needs of many sales team members but was not relevant to about half the team
members.
● Sales team members were happy with the incentives program and tried hard to make sales in the third
quarter (Q3); however, they were also resentful at the threatening tone of emails and soon lost
enthusiasm.
● Effect of one-day training wearing off.
● Fifty percent of direct wages costs are attributable to short-term contract employees whose contracts
have expired and who are no longer needed.
● Employees concerned about lack of attention paid to wastage: water; electricity: paper; raw materials.
The Managing Director would like you to submit a revised contingency plan and contingency
implementation plan to bring income and expenses under more effective control.
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Assessment Task 3 BSBFIM501 Manage budgets and financial plans
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan:
Name: Tom Copeland Position: Managing Director
Risk identified: Profit for FY more than 10% less than budgeted
Reduce overtime. Q2 PR
Risk identified: Profit for FY more than 10% less than budgeted
Email to inform employees that overtime will no Monitoring of variance report results:
PR
longer be approved. Q3.
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Assessment Task 3 BSBFIM501 Manage budgets and financial plans
Budget preparations
● The business plan will set the key parameters for all financial budgeting.
● Variations to the business plan must be approved by the CEO and senior management strategic
committee.
● Prior period results are to be analysed to identify the profit level of cost centres, identify correlations
between financial statistics and to set key performance indicators and benchmarks for future budgets.
● The budget planning committee will meet prior to budgets being developed and agree on budget
parameters. The committee will consist of all department managers plus the CEO and Chief Financial
Officer.
● A CAPEX budget will be developed from the approved business plan.
● A detailed sales budget must be completed before completing the profit budget for the year.
● A cash-flow budget covering the first three months will be prepared after the profit budget is
completed.
● A master budget including profit projections will be completed from which cost centre allocations
will be made.
● Budget notes that contain all the assumptions used in the budgets should accompany the master
budget or be made available on a separate document. Where possible, the notes should justify the
basis on which the estimates were made.
● Overheads (non-direct expenses) will be apportioned across the cost centres equally. Exceptions need
to be negotiated with relevant authorities.
● All expenses and income will be spread equally throughout the year unless otherwise required by
business needs or business environment.
● The financial cycle for budgeting purposes will be yearly ending 30 June.
Reporting requirements
Software applications to be used in reporting:
● Environment – MS Windows.
Actual results will be produced monthly by the MYOB accounting system. Actual variances to budget will
be produced using Excel with a report prepared for senior management for significant variances.
Financial delegations
● Each manager is responsible for achieving the revenue budgets agreed to in the budget committee.
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Assessment Task 3 BSBFIM501 Manage budgets and financial plans
● Each manager is responsible to approve, by signing the necessary paperwork, all expenditures that
fall within their area of responsibility.
● Expenditures must be within the budget guidelines for the individual departments.
● name of the budget/report, i.e. sales, expenses, CAPEX, cash flow, budget
variance report
● Period of the budget.
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Facilitator Guide BSBFIM501_Marking Guide_Task 3
Page 34 of 40
Facilitator Guide BSBFIM501_Marking Guide_Task 3
Variance Report
The sales variance is adverse due to changes in economic climate. This resulted in decline in sales
of business during the year by 20%. The change in sales volume also resulted inn decline in direct
cost of sales by 20%. The commission on sales was negotiated with the sales team members to be
2. % on sales instead of 2% which resulted in no decline even after decrease in sales. The direct
wages reduced by 50% resulting in favorable variance since the 50% direct labor was short term
contractors which were no longer needed for the business. Due to decrease in sales by 20% the
gross profit also declined but the rate of decline was less which is 17.95%. The general and
administration expenses reduced by 50% which is an advantage for the business. The employee
expenses increased substantially since the full time workers and sales personnel were involved in
time wasting and also distracted other contracted employees. The objectives of training and
incentive program were not achieved.
There were no variations in the marketing cost since the advertisement expense is the fixed cost.
The occupancy costs increased since less attention was paid by the employees towards the
reduction in cost of wastage, raw material, water, electricity and paper. He employees feel
dissatisfied due to lack of participation in decision making for budget. The net profit declined
substantially by 45% however the projected profits could be reduced only up to 10%. Thus
managers will have to adopt effective measures to improve efficiency and reduce costs.
Task B
Revised contingency plan
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan:
Name : Tom Copeland Position: Managing Director
Risk identified: Profit for FY more than 10% less than budgeted
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Facilitator Guide BSBFIM501_Marking Guide_Task 3
Risk identified: Profit for FY more than 10% less than budgeted
Monitoring activity and
Activity Person/s
date
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Facilitator Guide BSBFIM501_Marking Guide_Task 3
Marking Guide
Assessment Task 3: Monitor and control finances
Assessment site
Outcomes
Satisfactory
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Facilitator Guide BSBFIM501_Marking Guide_Task 3
Performance indicators
Satisfactory
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Facilitator Guide BSBFIM501_Marking Guide_Task 3
Satisfactory
Comments/feedback to candidate
Assessor name:
Assessor signature:
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Unit Feedback BSBFIM501 Manage budgets and financial plans
Please help us to improve our services to you. We would appreciate your honest feedback on the training provided
for this unit.
Thinking about your experience while participating in the training for this unit, please read the following statements
and tick one response only.
Trainer name
Learner name
Disagree Unsure Agree Not applicable
The facilities and online resources if needed for this unit were
adequate.
The knowledge and skills you have learned will assist you in your
career.
You are satisfied with the quality of this training.
If you ticked “Disagree” for any questions above, could you please provide an explanation?
What did you find most challenging about studying this unit? Please specify.
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