• This assessment task is in two parts.
• For Part A, the student is required to review existing financial information and prepare budgets.
• For Part B, the student is required to meet with the management team to discuss budgets, as well as reporting requirements and delegations.

Resources and equipment required to this assessment

• Computer and Microsoft Office
• Access to the internet for research and to access web sites such as the Australian Tax Office:
• Printer to print off meeting documents (if required)
• Meeting space
• 2014 - 2015 Profit and Loss Statement,SD Profit and Loss Grow Management Consultants 2014 V2.0 (ID 122482).xls,SD Profit and Loss Grow Management Consultants 2015 - 2016 V2.0 (ID 122481).xls
• 2014 - 2015 Cash flow statements,SD 2014-2015 FY Cash Flow Statement V1.0 (ID 102211).xlsx,SD 2015-2016 FY Cash Flow Statement V1.0 (ID 102212).xlsx
• Financial performance report template,SD Finance report template V1.0 (ID 102216).docx
• Business Plan Grow Management Consultants,SD Business Plan V1.0 (ID 102218).doc
• Financial Management Policy and procedure,SD Financial Management policy and procedure V1.0 (ID 102217).doc
• Conference/e-book costs and income,SD Estimated conference and e-book costs and income V1.0 (ID 102215).docx

What do I need to submit?

• Financial performance report
• Completed budgets for 2015 - 2016

What happens if I get something wrong?

If your assessor sees that you have not completed all parts of this task satisfactorily, the details of re-submission will be discussed with you directly. You will only need to redo the parts that are not satisfactory, however you will need to resubmit the entire assessment.

Instructions:

Complete part A and then Part B of this assessment task.

Complete the following activities:

1. Conduct research in preparation for your financial performance report.

• Review the scenario information above and the 2014-2015 Profit and Loss Statements and the 201-2015 Cash Flow Statements provided to you. Using this information, identify areas of the business that have generated a profit and those that have generated a loss.
• Conduct research to establish why those areas have made a profit or loss. Your research should include a review of the financial data provided to you, economic conditions and business trends that may have resulted in the profit or loss. You will be required to report on your findings in the financial performance report as outlined below.
• Conduct research on financial software systems as per the scenario information. Make notes for use in your report.

1. Prepare a financial performance report for the Principal Consultants using the template provided by your assessor that includes an:

• Overview of the purpose of the report.
• Analysis of the previous year's (2014 - 2015) profit and loss statement for Grow Management Consultant, including revenue generated, cost of sales, gross profit/loss margin and net profit/loss margin.
• Analysis of overall business performance including the performance of each of the income streams for 2014 - 2015.
• Outline of reasons for profit or loss based on your analysis of the data and research on economic conditions and business trends.
• Analysis of the organisation's goals and priorities for the upcoming financial year as documented in the Strategic Business Plan and financial resources required to achieve these goals, as well as key dates.
• An analysis of cash flow trends as per the cash flow statements.
• Review and analysis of at least three other financial software packages that the business could use, including the advantages and disadvantages of each, as well as the advantages and disadvantages of MYOB that is currently used.

1. Develop budget forecasts for the next financial year.

• Ensure that the analysis of the previous year's data and future plans as indicated in the business plan is taken into account in determining projected income and expenditure.
• As per the organisation's financial management policy and procedure, the budget forecasts are to be submitted in Excel. Develop a suitable format within Excel for your budget.
• Ensure that your budget includes the estimated income and costs for the conference and e-book to be implemented in 2016. This is provided to you as a separate document.
• Assume a 5% increase in all general costs, as well as a 10% increase in income for consulting and executive recruitment service. Input costs and income for the conference and e-book as per the data indicated in the document.

1. Circulate report and budgets

• Ensure your documents are accurate and error free, and set out in a standard business format.
• Submit the completed report and budgets to the Principal Consultants (your assessor) for discussion at the meeting in Part B.

Complete the following activities:

1. . Conduct research and develop a report on key financial compliance requirements and liabilities for tax in preparation for your meeting.

• Develop a short report to provide to the management team at the meeting. The report should explain:
• GST reporting requirements (the company is required to report quarterly)
• PAYG withholding obligations
• PAYG income tax instalment
• Payroll tax obligations (state government)
• Superannuation entitlements and requirement to comply with legislation regarding frequency of payment, choice of fund and reporting to staff.
• Review the financial management policy and procedure that sets out reporting requirements and financial delegations. Include your findings in your report.
• Ensure your report is accurate and error free, and set out in a standard business format.
• Print copies of your report and your budget that you have developed for your meeting.

1. Participate in the budget meeting.

• At the meeting you will need to discuss:
• Discuss the budget you have developed and the rationale for the budget
• Discuss the amounts allocated to activity, including the conference and the e-book.
• Provide an outline of the financial policy and procedure so as to ensure that roles and responsibilities are understood and risks of misappropriation of funds/incorrect recording of financial transactions is minimised.
• Explain the company's key financial compliance requirements and tax liabilities.
• At the meeting ensure you provide your assessor with all required documentation and you will need to demonstrate effective communication skills by:
• Speaking clearly
• Providing concise information in a language that is appropriate for the audience
• Responding to questions as required