Demonstration 1:

This task will be conducted in a simulated environment that replicates the workplace.

For this task, you must review the following policies and procedures provided by Gelos Enterprises Pty Ltd:

• Finance Authorisation Policy
• Payments and Accounts Payable Policy
• Found in Assessment Event Overview on Page 3
  • FNSACC526_AE_Sk2of4_App_Finance Authorisation Policy
  • FNSACC526_AE_Sk3of4_App_ Payments and Accounts Payable policy

In the table provided, assign each authorised person with a suitable financial delegation limit and whether the delegation is joint or singular.

Table 6 information table

Finance Transaction	Authorised Person/s	Authorisation Limit $	Joint or Singular
Issuing Petty Cash	Financial Accountant	$500	Singular
Business Credit Cards	Administration and Finance Director	$500 (in accordance with A/P policy)	Joint
	Financial Accountant	$500 (in accordance with A/P policy)	Joint
Payment of Invoices	Administration and Finance Director	$10000	Joint
	Operations and Marketing Director	$10000	Joint
	Managing Director	$10000	Joint

Demonstration 2:

Gelos Enterprises Pty Ltd has provided you performance indicators.

1. In the following table, evaluate each performance indicator by identifying the variances and evaluating their possible causes.

Table 7 information table

Performance indicator	Actual	Budget	Variance (amount/F or UF)	Evaluation of possible cause
Inventory turnover an average measure of the number of times inventory was sold during the year	10 times pa	12 times pa
Sales Cost of goods sold	$2,500,600 $956,450	$2,500,000 $842,500
Accounts receivable	$1,352,750	$1,100,000

1. Prepare a brief report to the Gelos board of directors of your findings. While this is only to be a brief report, ensure that you include inventory turnover, COGS, accounts, a summary of your findings, and recommendations for continuous improvements.

Document your report using the outline below.

Introduction:

Introduce your topic and describe the purpose of your report.

Body:

Conclusion:

Provide an overview of the results of the evaluation and any recommendations.