BSBFIM601 Manage Finances Awser

BARKLY INTERNATIONAL COLLEGE
CRICOS PROVIDER NUMBER 03136D (VIC)

RTO PROVIDER NUMBER 22238
STUDENT ASSESSMENT INFORMATION
BSBFIM601 MANAGE FINANCES
Name of the Student:

Student ID:
UNIT DESCRIPTION
This unit describes the performance outcomes, skills and knowledge required 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.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of
endorsement.
PREREQUISITES UNITS
Not applicable.
EMPLOYABILITY SKILLS
This unit contains employability skills.
METHOD OF ASSESSMENT
IS THIS UNIT CO-ASSESSED No
ASSESSMENT TYPE 1 Project Work
ASSESSMENT TYPE 2 Project Work
OVERVIEW OF ASSESSMENT
Critical aspects for assessment and evidence required to demonstrate competency in this unit
BSBFIM601 Student Assessment Pack

Release Date April 2015 V.1 Page 1 of 27
BSBFIM601 Manage finances
Evidence of the following is essential:
 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.
ASSESSMENT TASK (1) PROJECT WORK
STUDENT ASSESSMENT TASK

ASSESSMENT DUE DATE:
ASSESSMENT LOCATION: North Melbourne Campus, Barkly International College
ASSESSMENT DURATION :
RESOURCES REQUIRED:
 Audio Visual Presentation kit
 Access to PC/Laptop
 Access to printer
Please return this form with Assessment report.
ZieTel Pty Ltd has recently appointed you as the business manager promoting you from a store manager
which you have been for past 5 years. ZieTel Pty Ltd is a 15-store retail chain located mostly in shopping
malls and is headquartered in Melbourne. ZieTel is the leading homeware retailer, catering to the growing
need of people in Melbourne and suburban areas. The range on offer of kitchenware, decorative and gift
items together with the recently added lighting fixtures has positioned ZieTel as a leader in homeware
retailing in Melbourne. ZieTel Pty Ltd is a proprietary limited company.
Since the current accounting information system has not adequately provided sufficient analysis of
revenue and expenditure and has made it difficult to make informed estimates of future profits. ZieTel Pty
Ltd wants to upgrade their existing accounting system which will manage the company accounts more
efficiently in the long run. They request that the new system you recommend to them to be compliant
with all legislative and statutory requirements for small to medium businesses.
ZieTel’s charges GST on all their products, however the accounting information system records the GST
collected as well as the input tax credits earned on the purchases of stock and assets. These amounts
are reported and paid in accordance with the business activity statement (BAS) schedule determined by
the Australian Tax Office. They have 100 fulltime and 50 part-time employees, but only 10 of the
employees will have access to the financial software. Some employees have arrangement of fringe
benefits tax. They are anticipating that within five years they will have over 250 full-time employees, and at
least 20 employees will require access to the financial system by then.
The payroll system deducts withholding tax from the employees and remits this along with the firm’s pay
as you go (PAYG) instalment each quarter as reported on the firm’s business activity statement. Income

tax return for the company and its annual statement is completed by the firm’s accountant. Taxes and
fees due are paid by the due dates. Financial records are kept at ZieTel’s principle place of business.
ZieTel have just upgraded their computers for financial team to comply with the requirements of financial
software.
Jerry, the CEO, has asked you to prepare some financial budgets for the 2014/15 financial year as a
preliminary overview of the financial year ahead. He asked you to first prepare a 12 months budget and
then break it up over the four quarters. The areas he is particularly interested in seeing is:
1. Sales budget for 2014/15 by department by quarter.
2. Profit budget (including detailed expenses) for 2014/15 by quarter.
3. The cash flow result per quarter of the GST after adjusting the GST collected by the allowable GST
tax credits.
The CEO wants to be given all the budgets which accountant can monitor. The CEO produced a
summary of the current business plan that covered the budget year to highlight some of the key goals,
objectives and strategies he would like incorporated into the budget.
Following are the projections that you can estimate while working on financial reports:
1. The 2014/15 financial year would maintain the same sales growth as it was between 2012/13 and
2013/14.
2. An increase in inflation to 4% per annum and that all costs are subjected to this inflation.
3. A new car costing $97,466 including GST has been planned for in the coming period to replace the
five year old vehicle currently used by the chairman. This fuel inefficient car will attract a luxury car
tax.
4. Sales breakup over the departments is anticipated to be kitchenware 30%, bedroom decorative
25%, gifts 15%, decorative items 10% and lighting fixtures 20%.
5. Profits are based on growing customer base which will generate loyalty sales and possibility of
referring other customers.
6.
7. Reduction on the principle of the loan by a payment of $100,000 by 30 June 2012 from the profits
generated by the business.
8. The expectation that 2014/15 would be a difficult trading year but that the budget net profit should
target the same result as achieved in the 2013/14. The strategy to achieve this in the business plan
included three key elements:
a. To reduce the expected gross profit rate by 1% on the 2013/14 result in the hope that lower
prices on the products would increase sales growth even in tough trading period.
b. To increase the advertising budget by $70,000 over the 2013/14 results in the hope that ZieTel
can secure a greater market share in a constricting market. $200,000 is planned for the first
quarter with the balance apportioned equally over the following three quarters.
c. To increase wages and salaries by $172,500 over the 2013/14 amounts to cater higher
commission earned by casual employees thus maintaining ZieTel’s sales growth.
You need to review and analyse previous financial data to establish areas which have generated higher

revenues. Conduct a research on all assets and liabilities.
Sales information:
Your CFO has explained to you that the only budget she monitors on a day-to-day basis is the cash flow
budget and the store manager is primarily responsible for the sales budget.
Following are the points that your CFO has in his diary for you:
● The overall sales for 2014/15 target set by the business plan should align with the quarters in the
same % as was achieved in 2013/14.
● This was: (Amount in $)
Quarter 1 Quarter 2 Quarter 3 Quarter 4 2013/14
3,142,822 3,771,386 4,085,668 4,714,232 15,714,108
20% 24% 26% 30%
● Cost of goods sold is the inverse of the gross profit rate determined by the business plan and is
determined by the quarterly sales budget.
● Accounting fees is fixed at $10,000 to be paid in 4 equal instalments.
● The interest charges on the bank loan stands at $84,508 repayment of loan principal. This is to
be paid in equal amounts each quarter.
● Bank charges are expected to be the same as 2014 and paid in equal amounts each quarter.
● You are asked to include store supplies as new expense in the budget as it was previously
included in with the cleaning expense. Store supplies in the 2012/13 results was $3,500 of the
cleaning expense and $3,605 of the 2013/14 result.
● Depreciation is expected to be the same as 2014 and in equal amounts each quarter.
● Advertising is based on the business plan and the amount is distributed equally in 4 quarters.
● The following expenses are expected to increase by the determined inflation rate in the business
plan summary:
○ Insurance –equal amounts each quarter.
○ Store supplies – is calculated for to each quarter using the same % as determined by the
sales for each quarter.
○ Cleaning – is calculated for each quarter using the same % as determined by the sales for
each quarter.
○ Repairs and maintenance – apportioned in equal amounts each quarter.
○ Rent – apportioned in equal amounts each quarter.
○ Telephone – is calculated for to each quarter using the same % as determined by the sales
for each quarter.
○ Electricity – is calculated for to each quarter using the same % as determined by the sales for
each quarter.
● Fringe benefits tax is same as 2014 and is payable in equal amounts each quarter.
● Wages and salaries are calculated for each quarter using the same % as determined by the sales

for each quarter.

● The statutory requirements are:
○ Superannuation is 9% of wages and salaries for each quarter
○ Payroll tax is 4.75% of wages and salaries for each quarter
○ Workers compensation is 2% of wages and salaries for each quarter
○ Company tax is 30% of net profit before tax for each quarter.
ZieTel Pty Ltd (All amounts in $)
For 12 months ended
Profit & Loss Actuals 2010/11 2011/12 2012/13 2013/14
Revenue
Sales 12,474,336 13,472,315 14,550,100 15,714,108
– Cost Of Goods Sold 6,860,901 7,409,773 8,002,555 8,799,900
Gross Profit 5,613,465 6,062,542 6,547,545 6,914,208
Expenses
– Accounting Fees 5,500 6,500 8,500 9,000
– Interest Expense 45,000 65,000 96,508 90,508
– Bank Charges 1,200 1,300 1,580 1,600
– Depreciation 170,000 170,000 170,000 170,000
– Insurance 12,500 12,500 12,500 12,875
– Store Supplies - - - -
– Advertising 50,000 100,000 280,000 280,000
– Cleaning 12,560 15,652 18,700 19,261
– Repairs & Maintenance 40,250 52,600 60,000 61,800
– Rent 2,465,000 2,465,000 2,465,000 2,538,950
– Telephone 9,862 12,523 14,000 14,420
– Electricity Expense 22,500 23,658 25,000 25,750
– Luxury Car Tax - - 12,400 -
– Fringe Benefits Tax 26,000 26,000 26,000 28,000
– Superannuation 148,500 160,737 166,500 171,495
– Wages & Salaries 1,649,998 1,785,965 1,850,000 1,905,500
– Payroll Tax 78,375 84,833 87,875 90,511
– Workers’ Compensation 33,000 35,719 37,000 38,110

Total Expenses 4,770,245 5,017,987 5,331,563 5,457,780
Net Profit (Before Tax) 843,220 1,044,554 1,215,982 1,456,428
Income Tax 252,966 313,366 364,795 436,928
Net Profit 590,254 731,188 851,188 1,019,499
ZieTel Pty Ltd (All amounts in $)

Statement of Financial Position as at 30 2012/13 2013/14
June
Assets
Current Assets
– Cash On Hand 50,000 55,000
– Cheque Account 144,842 160,314
– Deposits Paid 950,000 950,000
– Trade Debtors 850,000 975,000
– Merchandise Inventory 1,530,000 1,430,000
Total Current Assets

Fixed Assets
– Motor Vehicles At Cost 500,000 500,000
– Motor Vehicles Accum Dep ( 100,000 ) ( 125,000 )
– Furniture & Fixtures At Cost 1,950,000 2,250,000
– Furniture & Fixtures Accum Dep ( 650,000 ) ( 770,000 )
– Office Equip At Cost 400,000 400,000
– Office Equip Accum Dep ( 90,000 ) ( 115,000 )
Total Fixed Assets 2,010,000 2,140,000
Total Assets 5,534,842 5,710,314
Liabilities
Current Liabilities
– MasterCard 17,800 14,860
– Trade Creditors 780,000 679,000
– GST Collected 1,455,010 1,571,411
– GST Paid ( 943,125 ) ( 987,626 )
– Superannuation Payable 100,000 120,000
– Luxury Car Tax Payable 20,920 -
– income Tax Payable 364,795 436,928

– PAYG Withholding Payable 65,000 44,872
Total Current Liabilities 1,860,400 1,879,445

Long-Term Liabilities - -
– Bank Loans 1,608,459 1,508,459
Total Liabilities 3,468,859 3,387,904
Equity
– Owner/Shareholder’s Equity 500,000 500,000
– Retained Earnings 850,000 1,565,982
– Dividends Paid ( 500,000 ) ( 1,200,000 )
– Current Year Earnings 1,215,982 1,456,428
Total Equity 2,065,982 2,322,410
Internal audit
The board members and financial team are given profit and cash flow budgets. You are required to
conduct an internal audit to look for weaknesses in the system. You have identified the following:
● The overall customer base has increased from year to year but retaining these customers is an
issue.
● Discounts given to customers were recorded as a net amount on the invoices and gave no
indication of the discount from standard prices.
● Cash registers were not reconciling with the cash.
● Not all timesheet overtime amounts were being authorised by the line manager.
● Debtor reconciliations were not done monthly.
● Job roles were not clearly defined so that responsibilities and liability can be identified.
GST cash flow budget

A statutory requirement for GST is 10% of the recorded amounts in sales. The only capital purchase
planned for the year is the luxury car for the chairman. Those expense payments on which 10% GST was
paid include the following:
● Cost of goods sold:
○ Accounting fees
○ Insurance
○ Store supplies
○ Advertising
○ Cleaning
○ Repairs and maintenance
○ Rent
○ Telephone
○ Electricity expense.

Prepare GST amount payable each quarter is the difference between the GST collected from sales and
the GST paid – format as per policy and procedures.
CASH FLOW
ANALYSIS – GST 2014/15 Quarter 1 Quarter 2 Quarter 3 Quarter 4
GST Collected 16,971,237 3,394,247 4,037,097 4,412,522 5,091,371
Less GST Paid 1,281,358 282,913 306,854 326,325 365,267
GST Payable 415,765 56,512 100,456 114,927 143,870
Debtors ageing budget

The historical records show that the debtors balance at the end of each quarter is usually about 20% of
the quarter’s sales. At any time in the debtors balances 1% of the total debtors is overdue 90 days and
over, 5% is 60 days overdue, 10% is 30 days overdue and the balance of the total debtors is current. The
aged debtors’ budgets are only distributed to the accountant and the accounts receivable clerk.
Budget variances and schedules

● Key performance indicators are based on:
○ Total sales
○ Gross profit (GP) %
○ Wages and salaries as % of total sales
○ Total expenses as % of total sales
○ Net profit (NP)
You are required to prepare the following reports/statements for ZieTel Pty Ltd (prescribed format
attached for all reports/statements).
1. Sales and Profit Budget and Variance Report

2. GST/BAS statement
3. Aged Debtors
You can use the following formats when preparing financial reports/statements.
Sales and profit budgets

PROFIT BUDGET 2014/15 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue 20% 24% 26% 30%
Sales 16,971,237 3,394,247 4,073,097 4,412,522 5,091,371
– Cost of Goods Sold 9,673,605 1,934,721 2,231,665 2,515,137 2,902,081

Gross Profit 7,297,632 1,459,526 1,751,432 1,897,384 2,189,290
Gross Profit % 43% 43% 43% 43% 43%
Expenses
– Accounting Fees $10,000 2,500 2,500 2,500 2,500
– Interest Expense 84,508 21,127 21,127 21,127 21,127
– Bank Charges 1,600 400 400 400 400
– Depreciation 170,000 42,500 42,500 42,500 42,500
– Insurance 13,390 3,348 3,348 3,348 3,348
– Store Supplies 3,749 750 900 975 1,125
– Advertising 420,000 200,000 73,333 73,333 73,333
– Cleaning 16,282 3,256 3,908 4,233 4,885
– Repairs & 64,272 16,068 16,068 16,068 16,068

Maintenance
– Rent 2,640,508 660,127 660,127 660,127 660,127
– Telephone 14,997 2,999 2,999 2,999 2,999
– Electricity Expense 26,780 5,356 6,427 6,963 8,034
– Luxury Car Tax 12,000 12,000 - - -
– Fringe Benefits Tax 28,000 7,000 7,000 7,000 7,000
– Superannuation 187,020 37,404 44,885 48,625 56,106
– Wages & Salaries 2,078,000 415,600 498,720 540,280 623,400
– Payroll Tax 98,705 19,741 23,689 25,663 29,611
– Workers’ 41,560 8,312 9,974 10,806 12,468

Compensation
Total Expenses 5,911,371 1,458,488 1,418,505 1,467,847 1,566,531
Net Profit (Before Tax) 1,386,261 1,038 332,926 529,537 622,759
Income Tax 415,878 311 99,878 128,861 186,828
Net Profit 970,382 727 233,048 300,676 435,931
GST Cash flow budget

CASH FLOW ANALYSIS

– GST 2014/15 Quarter 1 Quarter 2 Quarter 3 Quarter 4
GST Collected 1,697,124 339,425 407,310 441,252 509,137
Less GST Paid 1,281,358 282,913 306,854 326,325 365,267
GST Payable 415,765 56,512 100,456 114,927 143,870
Sales budget
SALES % 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4
BUDGET Total 20% 24% 26% 30%

Budget
Total Sales 16,971,237 3,394,247 4,073,097 4,412,522 5,091,371
Bathroom 30 5,091,371 1,018,274 1,221,929 1,323,756 1,527,411

fittings %
Bedroom 25 4,242,371 848,562 1,018,274 1,103,130 1,272,843

fittings %
Mirrors 15 2,545,685 509,137 610,965 661,878 763,706

%
Decorative 10 1,697,124 339,425 407,310 441,252 509,137

items %
Lighting 20 3,394,247 678,849 814,619 882,504 1,018,274

fixtures %
Aged debtors
AGED DEBTORS TOTAL
BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales 16,971,237 3,394,247 4,073,097 4,412,522 5,091,371
% Debtors Sales 20% 20% 20% 20%
Total Debtors 100% 678,849 814,619 882,504 1,018,274
Current 84% 570,234 684,280 741,304 855,350
30 Days 10% 67,885 81,462 88,250 101,827
60 Days 5% 33,942 40,731 44,125 50,914

90 Days 1% 6,788 8,146 8,825 10,183
You are been asked to present the entire financial reports and current and proposed scenarios in front of
senior management and board members. Answer the following questions in the meeting, assuming them
as queries/concerns raised by attendees.
1. What current statutory and organizational requirements you have considered. Also
explain tax compliance the tax liabilities for ZieTel Pty Ltd under taxation legislation.
Income Tax: this the tax which every business and individual has duty to pay on net income of the
year
GST: this tax is paid by the business which provide goods and services. It could be different due to the
kinds of goods and services and some goods and services could be free from this tax.
Company Tax: this kind of tax is paid by the company on the assessable income tax rate fixed at 30%
of income.
Superannuation: this kind of tax is paid by the organisation on the behalf of employee and is
calculated by the company’s payroll system
Following are the calculated tax of the organisation
 Income tax: 415,878
 Payroll Tax: 98,705
 Superannuation: 187,020
 Fringe Benefits: 28,000
 Worker’s Compensation 41,560
 Luxury Car Tax: 12,000
2. Identify the current compliance requirements and liabilities for this organisation under the
Corporations Act 2001.
The Corporations Act, or CA 2001) is an Act of the Commonwealth of Australia which sets out the laws
dealing with business entities in Australia at federal and interstate level. It deals primarily with
companies but also with other entities, such as partnerships and managed investment schemes. The
Act is the primary basis of Australian corporations law. Following Documents must be provided by the
Company due to the Act:
1. Financial Statement
2. Cash record
3. Sales/debtor record
4. Creditors record
5. Wages and superannuation record
 Company must register as per the Corporation Act 2001
 Auditing should be done
 Financial reporting to ASIC

3. Explain the effectiveness and suitability of financial management software (e.g. MYOB).
MYOB’s cloud offering is currently used by over one million small businesses in Australia and New
Zealand. This accounting software helps organisations efficiently manage cash flow, payroll and day-
to-day bookwork.
MYOB’s cloud accounting system can dramatically reduce time wasted on manual processes, which
cause bottlenecking and inaccuracies. Organisations using MYOB end up saving a great deal of time
and money, especially since there’s no need for upfront capital expenditure on computing resources.
MYOB automates many manual accounting processes that waste valuable time and money. MYOB
syncs information and reduces time-consuming processes by automating credit notes, purchase
orders, payroll and more. This software allows organisations to predict events like cash flow problems
or periods of growth, helping them plan for the future with confidence. MYOB automates these
manual processes, reducing the room for human error. Furthermore, there are built in controls
designed to detect and remove duplicate entries and redundancy errors. MYOB ensures content
updates occur in real time, so employees are always working with the latest information. For example,
updated accounting records are instantly reflected in account balances in customer accounts. Also,
MYOB’s cloud offering reduces financial and operational expenditure. MYOB provides enterprise-
grade tools to not only reduce expenditure on assets, but also operational costs, giving organisations
the opportunity to enhance their productivity.
However, there is one challenge of MYOB; an organisation’s workforce must be trained on the
software to avoid employees continuing with inefficient manual processes.
http://blog.rgtechnologies.com.au/myob
4. Suggest other commercially available software (any 2) and compare it with its usability,
technological requirements and suitability with advantages and limitations.
SAP
SAP is an acronym that represents “Systems, Applications, and Products”. This is a very common
acronym that will come up when dealing with data processing. The use of SAP is mainly in Enterprise
Resource Planning (ERP), which functions to integrate different business software applications
designed to function for specific types of businesses. The use of SAP has been synonymous with large
corporations such as Microsoft and IBM.
Advantages
SAP is an important business management tool as it allows for real time tracking and management of
sales, finance, accounting, and human resources in a given organization or enterprise. SAP breaks
away from the traditional information system management that considered each management tool as
an individual system that operated independently. Processes such as accounting, production, sales
and accounting were managed independently.
SAP ensures that applications cannot interact with their own systems as was traditionally done but
must interact with other processes in order for tangible business events to occur.
In creating synchrony of all business processes, SAP ensures that the functions of management are
made easier from the integration, as most processes are performed automatically, which cuts back on

the personnel required to carry out the different tasks.

Disadvantages
SAP has the high cost of purchasing and implementing this program. The company must purchase
the software and hardware necessary to run the programs company-wide. Costs include labor costs
of internal information technology (IT) employees or external consultants overseeing the process.
Another disadvantage of SAP is the complexity built into the software. Most companies implement one
feature or function of the software at a time, allowing employees to gain familiarity with the software
before moving forward.
https://bizfluent.com/13364016/how-to-track-employee-expense-receipts
Oracle
Oracle stands for “Object Relational Database Management Systems (ORDBMS)”, and can be
hosted in numerous platforms. Versions of the ORDBMS are available from simple versions which can
be quite well employed for personal use to enterprise class versions. Oracle is defined as a single use
tool based on the client-server system that allows the management of databases known as a more
complete database system.
Advantage
 Centralized control and management system: This allows the data to be controlled completely
from a tabular exchange since it is responsible for assigning, adding, deleting records and
modifying them.
 Standardization: Allows standardization between different implementations of SQL.
 Grouping of transactions: It allows to group several transactions and divide each activity into
segments and thus achieve a better performance in less time possible.
 Performance methods: Applies methods to improve the database through a Cluster
application.
Disadvantages
 Incompatibility and complexity: This is presented as a limitation in the areas of time, data
syntax, and character sensitivity.
 Management of the structure: Oracle often tends to be complex or sometimes difficult to
manage for certain activities, so it is recommended to install a basic version and configure
with a minimal customization.
 The price: Many times; there is no price or a specific budget for the Oracle license as it usually
changes over time depending on the change of policies, patches and updates by the
company.
https://www.symantec.com/connect/articles/oracle-definition-functions-advantages-and-
disadvantages
5. Explain how you can apply the following principles of accounting in developing the budgets

required for this task:

a. Matching principle
The matching principle requires that revenues and any related expenses be recognized
together in the same reporting period. Thus, if there is a cause-and-effect relationship between
revenue and certain expenses, then record them at the same time. If there is no such
relationship, then charge the cost to expense at once. For example, Commission. A salesman
earns a 5% commission on sales shipped and recorded in January. The commission of $5,000
is paid in February. You should record the commission expense in January.
b. Account groups
Account groups are used in providing a budget by separating the revenue and expense
accounts into the profit budgets and the asset, liability and equity accounts into the capital
budgets similar to cash flow and capital expenditure.
c. Time periods
Time periods are used in preparing a budget by applying the accounting assumptoion that a
going concern can be divided into shorter time periods of week, month, quarter and year for
the purpose of budgeting and reporting.
https://www.accountingtools.com/articles/2017/5/14/the-matching-principle
6. Explain the implications of probity when preparing and revising budgets.

Financial probity requires the provider of budgets to do so with honestly, integrity and in an ethical
ways. This would require objectivity and conduct that ensures no conflict of interest occurs or is
perceived to exist in the preparing and revising the budgets
7. What critical dates and initiatives that will require or generate resources for ZieTel Pty Ltd in the
next financial cycle.
 A new car costing $97,466 including GST has been planned for in the coming period to replace
the five-year old vehicle currently used by the chairman. This fuel inefficient car will attract a
luxury car tax.
 Reduction on the principle of the loan by a payment of $100,000 on the 31 December from the
profits generated by the business
 Manage to the debtors more efficiently in the current period. This will involve an anlysis of the
debtors to indicate strategies to decrease the amount of cash tied up in outstanding debtors.
 Decrease the expected Gross Profit rate by 1% results in the hope that lower prices on the
products would help maintain the sales growth even in difficult trading conditions
8. What items you would recommend for inclusion in the budgets for ZieTel Pty Ltd.
 Benefits: this budget consists of pensions, health care, social security and payroll taxes
including typically a percentage of salaries, estimated annually.
 Travel: provide separate categories for transportation, airline costs, business related meals, etc.
 Training costs: provide costs for tuition, training and other development sessions this category
is essential in corporation when the business sort out competitive funding as training costs
reflect the involvement of business with employees

 Consultation or specialists: outsourcing specialist is essential for specific issues or concerns

because they have plenty experiences in dealing with a wide range of business industries
 Equipment and furniture costs for fixing and replacement: the business may consider for
computers, printers, and other relevant digital devices including office furniture as desks,
chairs, etc.
9. What new or modified internal controls could improve risk management for ZieTel Pty Ltd
including maintaining audit trail.
The recommended new or modified internal controls that could improve risk management and
maintenance for ZieTel Pty Ltd including maintaining audit trail may include:
 Developed an annual budget, as appropriate
 Developed suitable budget motes
 Responded appropriately to the questions presented by the CEO
ASSESSOR INTERVENTION AND REASONABLE ADJUSTMENT

Assessor Intervention
For each assessment, trainer/assessor is required to act as a supervisor and not interfere with the
assessment. In the event that the assessment contains activities that will impact on the safety of a
student or becomes a hazard, the assessment must be stopped immediately.
Resources and facilities provide students with options to complete each unit of competency. If the
student is deemed not yet competent or if he/she does not show an understanding of the course being
taught, the student may be asked to:
 Discuss an intervention plan with the Trainer.

 Sit for a re-assessment.
 Attend a number of supervised studying hours.
 Repeat the unit
All students, including those with special needs, are treated equally, with dignity and will be able to enjoy
the benefits of the educational experience in the same way. If there are students with special needs, the
trainer/assessor takes into account
Students’ needs and makes appropriate adjustments to the training environment, wherever feasible and
practicable and in consultation with the Training Manager and Student Support Officer. Reasonable
adjustments could include real time scenarios, case studies and one-on-one interview/interaction with
student.
ASSESSOR MARKING CHECKLIST
ASESSMENT TASK 1
All assessors must use this checklist when assessing student(s) project work. One checklist is to be
completed per student(s).
Student Name: Student ID:

Date of Assessment:
Assessment Task 1: Project Checklist
Please carefully read the students project and record their result below
The student must successfully complete the following points to achieve a satisfactory outcome in this
assessment.
 Student project attached
RESULT ACHIEVED BY STUDENT Satisfactory

Did the student successfully complete the following?
No:1
Review the available previous financial data  Yes  No
No:2
Analyse the financial data  Yes  No
No:3
Identify and analyse the areas which has generated profits or losses  Yes  No
No:4
Undertake research on the reasons for previous losses  Yes  No
No:5
Undertake research of profit data and the areas from where the most profit is  Yes  No
generated
No:6
Review and analyse the business plan to identify financially critical dates  Yes  No
No:7 Identify, document and analyse the resource generating initiatives for next financial
 Yes  No
period
No:8
Identify and analyse the trend of cash flow  Yes  No
No:9
Analyse and review the statutory requirements for financial compliance  Yes  No
No:10
Analyse and review the statutory requirements for any tax liabilities  Yes  No
No:11
Identify the software’s available for financial management  Yes  No
No:12
Review the advantages, disadvantages and suitability of the software  Yes  No
No:13 Compare the software with other commercially available softwares for financial
 Yes  No
management
No:14
Use previous financial data to determine allocation of resources  Yes  No
No:15
Prepare an estimate for inclusion of new items in the budget  Yes  No
No:16 Ensure that the budget is prepared in accordance with organisational

 Yes  No
requirements

No:17
Ensure that the statutory requirements are met while preparing budget  Yes  No
No:18
Circulate the budget to responsible managers, supervisors and members of  Yes  No
management
No:19
Ensure that managers and supervisors understood about the following:  Yes  No
 Budgets
 Reporting requirements
 Financial delegations
No:20
Manage risk by closing all loop and possibilities of misappropriation of funds  Yes  No
No:21
Ensure that appropriate financial software and systems are in place for accurate  Yes  No
recording of all financial transactions

No:22
Review the following financial documents:  Yes  No
 Profit and loss statement
 Cash flows
 Ageing summaries
No:23
Ensure the contingency are dealt appropriately  Yes  No
No:24
Revise the budget, if necessary  Yes  No
No:25 Ensure that the prescribed formats and structures of financial reports are clear to
 Yes  No
understand
No:26 Ensure that the prescribed formats and structures of financial reports comply with
 Yes  No
organisational and statutory requirements

STUDENT ASSESSMENT RESULT:
 SATISFACTORY  NOT SATISFACTORY  NOT COMPLETED
Assessor Feedback:
Assessor Declaration:
Signature:
I declare that I have conducted a fair, valid, reliable and flexible
___________________________
assessment with this Student, and I have provided appropriate
feedback.
Student Declaration: Signature:

___________________________
I declare that I have been assessed in this unit, in a fair and flexible
manner.
I have been provided with verbal feedback on my performance.

ASSESSMENT TASK (2) PROJECT WORK
STUDENT ASSESSMENT TASK

ASSESSMENT DUE DATE:
ASSESSMENT LOCATION: North Melbourne Campus, Barkly International College
ASSESSMENT DURATION :
RESOURCES REQUIRED:
 Audio Visual Presentation kit
 Access to PC/Laptop
 Access to printer
You were being asked to follow up with ZieTel’s accountant to compare the actual results with the budget
you had prepared three months ago. You are required to do the analysis on the reports.
At the board meeting, it was decided to spend money on marketing in the next quarter. The industry
benchmark for wages and salaries is close to 11% of sales. You have been provided with the
following report on the actual results for the recent quarter ended.
1. Develop a variance report based on the format and template provided by ZieTel.
2. Complete a cash flow analysis based on the financial reports in Assessment 1.
3. Examine the sales budget, profit budget, cash flow budget and debtor ageing summary.
4. Identify the issue of financial probity that was identified or considered when monitoring these
budgets.
5. Develop an actual-to-budget variance report using the template provided.
6. Determine variances by comparing actual results with the established budget provide suggestions
to board members why these variances may have occurred.
7. Compare financial performance of the organisation and respond to the board about gross profit
margins and financial viability.
8. Outline your recommendations for ongoing financial viability based on variance report and provide
suggestions about effectively managing contingencies.
9. Provide a summary of the financial management processes in place for the organisation and
reasons for variances. Include in this section any recommendations you have for modifying
management processes.
Actual Results obtained
ZieTel Pty Ltd
Actual Results Quarter 1

Revenue
Sales 3,371,200

– Cost Of Goods Sold 1,955,296

Gross Profit 1,415,904
Gross Profit % 42%
Expenses
– Accounting Fees 2,500
– Interest Expense 28,150
– Bank Charges 380
– Depreciation 42,500
– Insurance 3,348
– Store Supplies 790
– Advertising 150,000
– Cleaning 3,325
– Repairs & Maintenance 16,150
– Rent 660,127
– Telephone 3,100
– Electricity Expense 5,245
– Luxury Car Tax 12,000
– Fringe Benefits Tax 7,000
– Superannuation 37,404
– Wages & Salaries 410,500
– Payroll Tax 19,741
– Workers’ Compensation 8,312
Total Expenses 1,410,572
Net Profit (before tax) 5,333
Income Tax 1,600
Net Profit 3,733
GST cash flow – Actual Aged debtors – Actual

Cash flow analysis – GST Quarter 1 AGED DEBTORS
Quarter 1
GST Collected 337,120 BUDGET
Less GST Paid 279,988 Sales 3,371,200
GST Payable 57,132 % Debtors Sales 22%

Total Debtors 741,664
Current 585,915
30 days 111,250
60 days 37,083
90 days 7,417

Total Debtors 741,664
Budget variance report template

According to the organisational policy and procedures, the following format is to be used when
preparing a budget variance report.
ZieTel Pty Ltd

Variance to Budget
Quarter ended June - 2014/15
$ %
Actual Results Budget-Q1 Actual-Q1 Variance Variance F or U
Sales 3,394,247 3,371,200 (23,047) (0.7%) U
– Cost Of Goods Sold 1,934,721 1,955,296 20,575 1.1% F
Gross Profit 1,459,526 1,415,904 (43,622) (3.0%) U
Gross Profit % 42.99% 42.00% (0.01%) (2.3%) U
Expenses
– Accounting Fees 2,500 2,500 0 0% F
– Interest Expense 21,127 28,150 (7,023) (33.2%) U
– Bank Charges 400 380 20 5.0% F
– Depreciation 42,500 42,500 0 0% F
– Insurance 3,348 3,348 0 0% F
– Store Supplies 750 790 (40) (5.4%) U
– Advertising 200,000 150,000 50,000 25.0% F
– Cleaning 3,256 3,325 (69) (2.1%) U
– Repairs & 16,068 16,150 (82) (0.5%0 U
Maintenance
– Rent 66,0127 66,0127 0 0% F
– Telephone 2,999 3,100 (101) (3.4%) U
– Electricity Expense 5,356 5,245 111 2.1% F
– Luxury Car Tax 12,000 12,000 0 0% F
– Fringe Benefits Tax 7,000 7,000 0 0% F
– Superannuation 37,404 37,404 0 0% F
– Wages & Salaries 415,600 410,500 5,100 1.2% F
– Payroll Tax 19,741 19,741 0 0% F
– Workers’ 8,312 8,312 0 0% F
Compensation

Total Expenses 1,458,488 1,410,572 47,916 3.3% F
Net Profit (Before Tax) 1,038 5,332 4,294 413.6% F
Income Tax 311 1,600 (1,288) (413.6%) U
Net Profit 727 3,732 3006 413.6% F
Note: F = Favourable, U = Unfavourable
Debtor ageing ratio template
2012/13 2013/14 2014/15
Trade Debtors 850,000 975,000 1,118,325
Sales 14,550,100 15,714,108 16,971,237
Debtor Days 21 22 24
Assessor instructions:
The students are required to perform and should be able to carry out:
● Rising interest rates that increases costs due to the variable interest rates held on company’s loans.
● Performance review.
● Profitable quarter that is ahead of expectations, but is still a low margin for the quarter.
● Financial viability and Gross profit margins.
● Review the discount policy to protect the gross profit margin.
● Reduce loans to reduce exposure to rising interest rates.
● Review salaries and wages to reduce costs and improve viability.
● Revised budget to include adjustments to the advertising budget with the $50,000 added to the next
quarter.
ASSESSOR INTERVENTION AND REASONABLE ADJUSTMENT

Assessor Intervention
For each assessment, trainer/assessor is required to act as a supervisor and not interfere with the
assessment. In the event that the assessment contains activities that will impact on the safety of a
student or becomes a hazard, the assessment must be stopped immediately.
Resources and facilities provide students with options to complete each unit of competency. If the
student is deemed not yet competent or if he/she does not show an understanding of the course being
taught, the student may be asked to:
 Discuss an intervention plan with the Trainer.

 Sit for a re-assessment.
 Attend a number of supervised studying hours.

 Repeat the unit
All students, including those with special needs, are treated equally, with dignity and be able to enjoy the
benefits of the educational experience in the same way. If there are students with special needs, the
trainer/assessor takes into account
Students’ needs and makes appropriate adjustments to the training environment, wherever feasible and
practicable and in consultation with the Training Manager and Student Support Officer.
Reasonable adjustments could include real time scenarios, case studies and one-on-one
interview/interaction with student.
ASSESSOR MARKING CHECKLIST

ASESSMENT TASK 2
All assessors must use this checklist when assessing student(s) project work. One checklist is to be
completed per student(s).
Student Name: Student ID:
Date of Assessment:

Assessment Task 1: Observation Checklist
Please carefully read the students project and record their result below
The student must successfully complete the following points to achieve a satisfactory outcome in this
assessment.
 Student project attached
RESULT ACHIEVED BY STUDENT Satisfactory
Did the student successfully complete the following?

No:1
Undertake research of profit data and the areas from where the most profit is  Yes  No
generated
No:2
Identify and analyse the trend of cash flow  Yes  No
No:3
Analyse and review the statutory requirements for financial compliance  Yes  No
No:4
Analyse and review the statutory requirements for any tax liabilities  Yes  No
No:5
Circulate the budget to responsible managers, supervisors and members of  Yes  No
management
No:6
Ensure that managers and supervisors understood about the following:  Yes  No
 Budgets
 Reporting requirements
 Financial delegations
No:7
Manage risk by closing all loop and possibilities of misappropriation of funds  Yes  No
No:8
Ensure that appropriate financial software and systems are in place for accurate  Yes  No
recording of all financial transactions

No:9
Review the following financial documents:  Yes  No
 Profit and loss statement
 Cash flows
 Ageing summaries
No:10
Ensure the contingency are dealt appropriately  Yes  No
No:11
Revise the budget, if necessary  Yes  No
No:12
Ensure accurate tracking by maintaining appropriate audit trails  Yes  No
No:13
Identify and document if there are any discrepancies between agreed and actual  Yes  No
allocations of financial and other budgetary resources

No:14
Ensure that all compliance requirements are met with due diligence  Yes  No
No:15 Ensure that the prescribed formats and structures of financial reports are clear to
 Yes  No
understand
No:16 Ensure that the prescribed formats and structures of financial reports comply with
 Yes  No
organisational and statutory requirements
No:17
Identify and document the issues identified in financial reports  Yes  No
No:18
Prioritise the issues for further review and related decisions  Yes  No
No:19 Perform comparative financial analysis for review, suggestions and decision
 Yes  No
making
No:20 Prepare a recommendation report to ensure that the financial viability is
 Yes  No
maintained of the organisation
No:21 Evaluate, analyse and document the effectiveness of financial management
 Yes  No
including all financial statements, reports and ratio analysis

STUDENT ASSESSMENT RESULT:
 SATISFACTORY  NOT SATISFACTORY  NOT COMPLETED
Assessor Feedback:
Signature:
I declare that I have conducted a fair, valid, reliable and flexible
___________________________
assessment with this Student, and I have provided appropriate
feedback.

___________________________
I declare that I have been assessed in this unit, in a fair and flexible
manner.
I have been provided with verbal feedback on my performance.

UNIT OF COMPETENCY ASSESSMENT SUMMARY SHEET
This form is to be completed by the assessor and used a final record of student competency.
All student submissions including any associated checklists (outlined below) are to be attached to this cover
sheet before placing on the students file.
Student results are not to be entered onto the Student Database unless all relevant paperwork is completed
and attached to this form.
Student
Student Name:
ID:
Unit Code and
Unit Title:
Unit Completion
Date:
Please attach the following documentation

Result achieved
to this form
 Not
Assessment Task 1 Project Work  Satisfactory  Not completed
Satisfactory
 Not
Assessment Task 2 Practical Observation  Satisfactory  Not completed
Satisfactory
Final Assessment  Not Yet  Student  Student
 Competent
Result for this unit Competent Adjustment Intervention
I declare that I have conducted a fair, valid, reliable and flexible Signature: ___________________________
assessment with this student, and I have provided appropriate Date: ____/_____/_____
feedback.

I confirm this is my own work. Further I declare that I have been ____________________________
assessed in this unit, in a fair and flexible manner. I have been
provided with verbal feedback on my performance Date: ____/_____/_____
Administrative use only:

Evidence and competency checked by Compliance Department
Signature: Date:


BSBFIM601 Manage Finances Awser

Uploaded by

Copyright:

Available Formats

BSBFIM601 Manage Finances Awser

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BSBFIM601 Manage Finances Awser

Uploaded by

Copyright:

Available Formats

BARKLY INTERNATIONAL COLLEGE

CRICOS PROVIDER NUMBER 03136D (VIC)

Name of the Student:

ASSESSMENT TYPE 1 Project Work

ASSESSMENT TYPE 2 Project Work

BSBFIM601 Student Assessment Pack

Evidence of the following is essential:

ASSESSMENT TASK (1) PROJECT WORK

STUDENT ASSESSMENT TASK

Please return this form with Assessment report.

BSBFIM601 Student Assessment Pack

1. Sales budget for 2014/15 by department by quarter.

2. Profit budget (including detailed expenses) for 2014/15 by quarter.

BSBFIM601 Student Assessment Pack

revenues. Conduct a research on all assets and liabilities.

● This was: (Amount in $)

Quarter 1 Quarter 2 Quarter 3 Quarter 4 2013/14

3,142,822 3,771,386 4,085,668 4,714,232 15,714,108

20% 24% 26% 30%

BSBFIM601 Student Assessment Pack

for each quarter.

ZieTel Pty Ltd (All amounts in $)

For 12 months ended

Profit & Loss Actuals 2010/11 2011/12 2012/13 2013/14

Sales 12,474,336 13,472,315 14,550,100 15,714,108

– Cost Of Goods Sold 6,860,901 7,409,773 8,002,555 8,799,900

Gross Profit 5,613,465 6,062,542 6,547,545 6,914,208

– Accounting Fees 5,500 6,500 8,500 9,000

– Interest Expense 45,000 65,000 96,508 90,508

– Bank Charges 1,200 1,300 1,580 1,600

– Depreciation 170,000 170,000 170,000 170,000

– Insurance 12,500 12,500 12,500 12,875

– Advertising 50,000 100,000 280,000 280,000

– Cleaning 12,560 15,652 18,700 19,261

– Repairs & Maintenance 40,250 52,600 60,000 61,800

– Rent 2,465,000 2,465,000 2,465,000 2,538,950

– Telephone 9,862 12,523 14,000 14,420

– Electricity Expense 22,500 23,658 25,000 25,750

– Luxury Car Tax - - 12,400 -

– Fringe Benefits Tax 26,000 26,000 26,000 28,000

– Superannuation 148,500 160,737 166,500 171,495

– Wages & Salaries 1,649,998 1,785,965 1,850,000 1,905,500

– Payroll Tax 78,375 84,833 87,875 90,511

– Workers’ Compensation 33,000 35,719 37,000 38,110

BSBFIM601 Student Assessment Pack

Total Expenses 4,770,245 5,017,987 5,331,563 5,457,780

Net Profit (Before Tax) 843,220 1,044,554 1,215,982 1,456,428

Income Tax 252,966 313,366 364,795 436,928

Net Profit 590,254 731,188 851,188 1,019,499

ZieTel Pty Ltd (All amounts in $)

Total Current Assets

Total Fixed Assets 2,010,000 2,140,000

Total Assets 5,534,842 5,710,314

BSBFIM601 Student Assessment Pack

– PAYG Withholding Payable 65,000 44,872

Total Current Liabilities 1,860,400 1,879,445

Total Liabilities 3,468,859 3,387,904

Total Equity 2,065,982 2,322,410