Have reviewed and analysed the financial data

ASSESSMENT TOOL
Qualification:

	BSBFIN601 Manage Organisational Finances
Student’s ID:

	Research and explain the following Australian, international and local legislations and conventions that are relevant to financial management in the organisation and how it is relevant. Record your answers in the table below. (350 - 400 words)

ASSESSMENT TOOL
Qualification:	BSB60720 Advanced Diploma of Program Management


Student’s ID:	Please advise all students to insert their ID this column and on all pages, they submit.

1.3	Explain in 150 words, “IPSAS 1 - Presentation of Financial Statements and explain what are the key

1.4

.Financial Management and Accountability Act 1997 (FMA Act) is to provide a framework for the proper management of public money and public property. Public money and public property are defined in section 5. Broadly, those terms refer to money or property that is owned or held by the Commonwealth, including money or property held on trust.

Public money and public property is defined in Act as money and property in the custody or control of the commonwealth.

financial probity? Write your answer in 250 - 300 words.

(d) Ensure fair and reasonable allocation of site visits (if any).

3. Maintain confidentiality of tender participants' confidential information

(g) records of actions taken to address any real, potential or perceived conflicts of interest; (h) the contract and contract documents; and
(i) documents issued pursuant to the contract, including variations, formal notices, performance security given and received by the Agency (as applicable), certificates and supplier performance reports.

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5. Commitment from tender participants
when conducting Public Construction Procurement Agencies must obtain a commitment from each tender participant, as a condition of participating in the process.

- Appropriate checks and balances are in place at various stages in the procurement process
The concepts of conflict of interest is well understood and strategies are in place to -
indentify and manage potential issues
- Communications with supplier is consistent and does not disadvantage or
advantage one supplier over others.

- Officers are not compromised in their ability to act, or to be seen to act, impartially.

d. Revenue recognition principle is the concept that you should only recognize revenue when the business has substantially completed that earnings process. So many people have skirted around the fringes of this concepts to commit reporting fraud that a variety of standard setting bodies have develop a massive of information about what constitutes proper revenue recognition.





Business Activity Statement (BAS)
Superannuation Guarantee Schem

1.10 An understanding of financial management requires knowledge of the relationship between financial management and accounting, accounting principles, and accounting standards. Explain the following accounting principles (Guide: 450 – 500 words)

ASSESSMENT TOOL

Cluster number and name:	PMAD-20_2.2_Manage organisational finances


Assessor’s name:	Please ensure your name or assessor name is inserted.

A financial statement audit is the examination of an entity's financial statements and
accompanying disclosures by an independent auditor. The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures. The auditor's report must accompany the financial statements when they are issued to the intended recipients.

The purpose of a financial statement audit is to add credibility to the reported financial position and performance of a business.

Pull ledger reports of the transactions in the expense accounts. Review the transaction detail reports for each expense account to confirm that the expense totals on the income statement report are accurate compared the ledger activity. View the detail level in the ledger for the individual transactions posted in the period to confirm that they were recorded properly. Check the dates on the expenses to be sure that they apply to the period in question, and manually verify the calculations by adding them up yourself / to ensure that the recorded totals are correct.

4. Paper Audit Sampling

Vertical analysis Vertical analysis is the proportional analysis of a , where each line item on a

A trend analysis is an aspect of technical analysis that tries to predict the future movement of a stock based on post data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what happen in the future

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b. Gross profit margin = (Gross profit / revenue ) x 100 . Shows what proportion of gross profit you keep from each dollar of revenue generated (eg. 20% gross profit margin means you keep gross profit of 0.20 for every $1.00 of revenu

1.13 How often should you review a business plan and explain why? Write your answer in 100-150 words.

1.14 How would you use the following ratios to analyse the organisation’s cash flow? Explain in 30-50 words each:

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ASSESSMENT TOOL

	PMAD-20_2.2_Manage organisational finances
Units of competency:

	Please ensure your name or assessor name is inserted.

1.15 When choosing an accounting software for your business, what should you consider as important factors? List any six (6).

1.18 List any ten (10) basic steps to follow when preparing a budget.

1.19 List five (5) circulation methods that are used to circulate budgets to managers and supervisors of the organisations.

misappropriation of funds? Write your answer in 50-100 words.

1.21 List five (5) basic types of financial statement fraud that you can find when reviewing financial statements.

ASSESSMENT TOOL

Cluster number and name:	PMAD-20_2.2_Manage organisational finances


Assessor’s name:	Please ensure your name or assessor name is inserted.

	When should you perform due diligence? Write your answer in 30-50 words. What should you review? Write your answer in 30-50 words.

1.24 Answer the following:

b.

1.26 How is an organisation's financial performance measured and managed? Write your answer in 50- 100 words.

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ASSESSMENT TOOL

	PMAD-20_2.2_Manage organisational finances
Units of competency:

	Please ensure your name or assessor name is inserted.

ASSESSMENT TASK 2: PLAN FOR FINANCIAL MANAGEMENT AND PREPARE BUDGETS AND ALLOCATE FUNDS

Instructions to the Students
This assessment task requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will need to read the below given case study, analyse the information provided and complete the given tasks.

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stagnant increase in the sales and profits. At present, it employs over 120 staff.

It is a proprietary limited company (ACN 007 249 989) registered with the Australian Securities and Investment Commission.

The senior management wants you to recommend a new system. They have provided you with the guidelines for selection of the new system. The system must:

 comply with all the legislative requirements.

 handle foreign currency

 be able to produce separate financial reports for each business or department within the business

 Business plan summary
 Income statements for year 2019/20 and 2020/2021 Statement of financial position
 Notes from meeting with the accountant
 Budget policies and procedures

Document your analysis and discussions once you have reviewed and analysed the financial data (Guide: 250 words).

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ASSESSMENT TOOL


Units of competency:	BSBFIN601 Manage Organisational Finances

Business Plan Summary

Business Plan Summary – 2021/22

3. Inflation rate for expenses is given below. The expenses that will be impacted by inflation are as

follow: (further information on expenses in given in meeting notes with accountant)

e. Website and marketing expense (10%)

4. Profits will be built by making a secure customer base. Loyalty cards will be given at the stores.

Pearl food distributors Pty LTD.
For 12 months ended


Sales	12,600,000

Gross Profit	7,400,000


		88,000
– Depreciation expenses
		24,600
– Store Supplies
		260,000
– Cleaning, Repairs & Maintenance
		2,750,000
– Website marketing expenses
		32,000
– Fringe Benefits Tax
		2,400,000
– Superannuation
		48,000
Total Expenses

		2,027,100
Income Tax
		1,418,970

Statement of financial position