Assesment 2

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Assessment Task 2: Implement financial management approaches
CONTENT
TASK A
EXPLANATION OF BUDGET INFORMATION 2
FUNCTIONAL OBJECTIVES OF BUSINESS 2
BUDGET OVERVIEW 2
EXPENSES ALLOCATION 2
TASK B
TRAINING NEEDS 3
PROCEDURES TO BE FOLLOWED 3
RECORD KEEPING REQUIREMENTS 4
MARKING GUIDE 5
COMMENTS/ FEEDBACK TO CANDIDATE 7

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Task A
Explanation of budget information
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
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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.
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
4. Will or way forward
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).
Spread sheet techniques

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.
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Record keeping requirements

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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Marking Guide
Assessment Task 2: Implement financial management approaches
Candidate’s name Phone no.
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Outcomes
Satisfactory
Did the candidate: Yes No
Role-play support of team member?
Submit copy of coaching/training plan?
Complete assessment within agreed deadline?
Performance indicators
Satisfactory
Access budget/financial plans for the work team?
Candidate must:
● access budget spreadsheet from assessor.
Disseminate relevant details of the agreed budget/financial plans to team

members?
Candidate must:
explain budget and explain relevance to team member’s (assessor’s)

accountabilities.
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Satisfactory
Provide support to ensure that team members can competently perform

required roles associated with the management of finances?
Candidate must:
● develop a plan for explaining petty cash duties to team member

and training team member to develop an appropriate spreadsheet
to track expense; plan should contain activities to motivate team
member
● deliver coaching/training to team member:
○ training must include elements of instruction, practise and

feedback
○ coaching should be positive and motivational
○ coaching should be collaborative (candidate should allow
input from learner)
● explain budgeting elements and activities
● explain modifications to a financial contingency plan
● demonstrate how to monitor expenditure and control costs
● describe basic accounting principles, ATO legislation and GST
● explain key requirements of financial recordkeeping
describe principles and techniques of managing a budget and electronic

spreadsheet.
Determine and access resources and systems to manage financial

management processes within the work team?
Candidate must:
● set and communicate accountabilities
assist team member to develop spreadsheet to meet management

requirements
(see BSBFIM501_AT2_Budget_for_Team_sample for
possible outcome).
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Comments/feedback to candidate
Outcome:
Successful Unsuccessful
Assessor name:
Assessor signature:

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1

Assessment Task 2: Implement financial management approaches

FUNCTIONAL OBJECTIVES OF BUSINESS 2

RECORD KEEPING REQUIREMENTS 4

COMMENTS/ FEEDBACK TO CANDIDATE 7

Explanation of budget information

Expense reimbursement policy – This policy relates to reimbursement of expenses which

4. Will or way forward

Spread sheet techniques

Record keeping requirements

Candidate’s name Phone no.

Assessor’s name Phone no.

Assessment date/s Time/s

Did the candidate: Yes No

Role-play support of team member?

Submit copy of coaching/training plan?

Complete assessment within agreed deadline?

Did the candidate: Yes No

Access budget/financial plans for the work team?

● access budget spreadsheet from assessor.

Disseminate relevant details of the agreed budget/financial plans to team

explain budget and explain relevance to team member’s (assessor’s)

Did the candidate: Yes No

Provide support to ensure that team members can competently perform

● develop a plan for explaining petty cash duties to team member

○ training must include elements of instruction, practise and

● explain modifications to a financial contingency plan

● demonstrate how to monitor expenditure and control costs

● describe basic accounting principles, ATO legislation and GST

● explain key requirements of financial recordkeeping

describe principles and techniques of managing a budget and electronic

Determine and access resources and systems to manage financial

● set and communicate accountabilities

assist team member to develop spreadsheet to meet management

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