ASSESSMENT 1 – STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
For this assessment, you are required to prepare an annual budget for a business of your choice. Students may liaise with their supervisor when choosing a business or may utilise the example of Appendix 1.
Task: Taking into account previous years figures, available current year figures and any additional information, you are to create an annual budget for your chosen business.
- Undertake discussions with stakeholders (Your instructor will role play these parts) to determine budget objectives and set milestones and / or performance indicators
- Discuss and review assumptions and budget parameters – review these during the budget process as needed. (Some assumptions are included in Appendix 1 Anzel Boutiqe).
- Clearly details any Cash, expenditure and revenue items
- Ensure your budget objectives are clear & conform with the business’ expectations
- Include milestones and performance indicators to monitor financial performance
- Include a detailed breakdown of your annual budget into seasonal periods as required by the business
- Identify any financial risks and incorporate protection strategies according to business
- Include contingency plans for budget blow-outs or changes
- Include a monitoring process to monitor implementation of budget
Details: Students should keep the following points in mind when creating the budget
- Set profit targets/goals to reflect the business’ (or Anzel Boutique’s) returns
- Identify the non-current asset requirements and consider alternative asset management strategies
- Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
- Select budget targets to enable ongoing monitoring of financial performance
- Relevant taxes such as GST and BAS should also be included.
Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts.
Once completed, you are to present your annual budget to your supervisor (your assessor) for approval
Assessment Summary
You are to submit the following evidence / perform the following tasks
- Develop and submit your annual budget as outlined above
ASSESSMENT 2 – STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
Following Assessment 1, you are to prepare for and implement your budget part.
Your implementation will encompass running a meeting for your team in which you:
- Explain and discuss the budget in detail
- Explain how your budget will be implemented
- Explain how your budget will be monitored
- Allocate responsibilities for at least 2 different budget components
- Instruct / mentor each person to whom you have allocated a responsibility to, to ensure they understand and are empowered to perform their allocated task
It is important that you are prepared for this session, ensuring you:
- prepare for the session to ensure everything is covered
- develop and provide relevant documentation / supporting materials to your team
Your assessor will observe you running the meeting.
Meeting Context
- Each meeting will consist of yourself (running the meeting), and at least 2 other people, who will role-play the employees. Other people may include trainers or students from your course
Things to consider whilst performing this task:
- Be organised – prepare and plan for the session thoroughly.
- Know your budget thoroughly
- Arrange access to all required documentation for this process
- Be prepared to ask questions
- Be prepared to be asked questions
Things to consider whilst role-playing an employee:
- Be prepared
- Act professionally throughout the process
- Be prepared to ask questions when you require more information
- Answer all questions to the best of your ability
- Make sure that by the end of the session, you are fully aware of the strategy you have been allocated, along with the actions you would need to perform to achieve this.
Remember, you will be required to both run the meeting, and role-play an employee (during another students assessment), so be sure to perform at your best at all times.
Assessment Summary
You are to submit the following
- Your meeting plan
- Copies of documentation provided to employees
- Your assessor will observe you running the meeting
ASSESSMENT 3 – STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
For this assessment, you are to interview your assessor and gather the required data to review the implementation of your budget. To perform this task satisfactorily, you must be prepared, as your assessor will only provide you with answers to questions asked.
In performing this task, you should:
- Consider your budget plan developed in Assessment 1.
- Identify the type of information required to determine the effectiveness of each KPI
- Assess the profitability and productivity outcomes of budget as per Appendix 2.
- Identify areas of underperformance
- Identify improvements that are appropriate to ensure the viability of the budget
Once you have gathered this information, you are to provide a written report that:
- comments on the effectiveness of the plans implementation
- reviews the financial outcome (in terms of viability, profitability and productivity) of each part of the budget
- outlines the areas of underperformance, along with recommendations for improvements
- includes an amended version of your budget, with the changes highlighted
- outlines in detail how the changes will be implemented
Your report should also include:
- A detailed comparison of budgeted forecasts and actual figures for the 3 month period – including comparison trends and other graphs as required demonstrating the information clearly including validity of analysis.
- An analyse the budget variances
- A recommendation to Anzel Boutique regarding his business’ performances and
- A reviewed budget taking into account the latest figures. Anzel Boutique’s goals are skill the same – is he on track? If not, what needs to be dome for Anzel Boutique business to get back on track? Are her goals too unrealistic? Complete a feasibility report answering these questions.
Assessment Summary
You are to submit the following
- A detailed report to give to Proprietor of Anzel Boutique (instructor) with your recommendations and covering the above points.