ASSESSMENT 2 – Project
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This cover sheet is to be completed by the assessor and used as a record of outcome of this assessment task |
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| Student Name: | |||
| Student ID No: | |||
| Unit code | SITXFIN003 | ||
| Unit Title | Manage finances within a budget | ||
| Date of submission: | |||
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Student Declaration: CHEATING & PLAGARISM In accordance with NTCA Institute’s Plagiarism Policy and Procedure, I hereby acknowledge by signing this declaration that I have not cheated or plagiarised any work in all the assessment tasks undertaken in this unit of competency except where the work has been correctly acknowledged or as per the specific assessment task instructions. Student name: _________________________ Signature: ____________________________ |
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Assessment Criteria Did the student: |
Satisfactory |
If Not Satisfactory, please comment |
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| Part A | |||
| Monitor income and expenditure and evaluate budgetary performance over budgetary life cycle. |
r Yes r No |
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| Allocate funds according to budget and agreed priorities. |
r Yes r No |
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| Use financial records to regularly check actual income and expenditure against budgets. |
r Yes r No |
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| Problem solving skills to identify and report deviations according to significance of deviation. |
r Yes r No |
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| Communicate with and advise colleagues of budget status in relation to targets. |
r Yes r No |
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| Assess existing costs and resources and proactively identify areas for improvement. |
r Yes r No |
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| Numeracy skills to interpret and use budget figures in day-to-day work operations. |
r Yes r No |
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| Interpret business and financial documents and document clear recommendations based on budget information and reports. |
r Yes r No |
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| Attach Printed copy of responses to all the question listed under the Task 1 |
r Yes r No |
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| Attach Printed copy of completed comparative analysis report for the Bistro departmental budget – April for Task 2 |
r Yes r No |
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| Attach Printed copy of responses to all the question listed under the Task 3 |
r Yes r No |
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| Part B | |||
| Discuss changes to income and expenditure priorities with appropriate colleagues prior to implementation. |
r Yes r No |
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| Consult with and informs relevant personnel about resource decisions. |
r Yes r No |
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| Use financial records to regularly check actual income and expenditure against budgets. |
r Yes r No |
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| Use problem solving skills to identify and report deviations according to significance of deviation. |
r Yes r No |
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| Investigate appropriate options for more effective management of deviations. |
r Yes r No |
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| Assess existing costs and resources and proactively identify areas for improvement. |
r Yes r No |
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| Discuss desired budget outcomes with relevant colleagues. |
r Yes r No |
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| Undertake appropriate research to investigate new approaches to budget management. |
r Yes r No |
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| Use numeracy skills to interpret and use budget figures in day-to-day work operations. |
r Yes r No |
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| Interpret business and financial documents and document clear recommendations based on budget information and reports. |
r Yes r No |
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| Part C |
r Yes r No |
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| Complete financial reports within designated timelines and using correct budget terminology. |
r Yes r No |
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| Prepare and present clear and concise information to enable informed decision making. |
r Yes r No |
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| Use numeracy skills to interpret and use budget figures in day-to-day work operations. |
r Yes r No |
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| Interpret business and financial documents and document clear recommendations based on budget information and reports. |
r Yes r No |
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| Use problem solving skills to identify and report deviations according to significance of deviation. |
r Yes r No |
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| ð Satisfactory ð Not Yet Satisfactory
(Please tick the assessment result for this task) |
If Not Yet Satisfactory – Please identify the re-assessment arrangements: | ||
| Comments/ Feedback (If the student is deemed Not Satisfactory the Assessor MUST state the circumstances and reasons why this judgment has been made): | |||
| Student Declaration: I declare that I have been assessed in this assessment task, have been provided with feedback and I have been advised of my result. I also am aware of my appeal rights
Student name: _____________________________ Signature: ____________________________ Date: ____/_____/_____ |
Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback
Assessor Name: _____________________________ Signature: ____________________________ Date: ____/_____/_____ |
Assessment Guidelines for Student:
Conditions of assessment:
For this Assessment you are required to follow the instructions provided under Tasks to be completed by the student and submit your response by the date advised to your Assessor.
Your assessor will advise you the Dates and timing for this assessment as per the timetable.
Your evidence submitted for this Assessment Task will be graded as either S – Satisfactory or NS – Not Satisfactory. Your Assessor will provide you with feedback.
If the evidence is graded as NS – Not Satisfactory you will be required to re-submit the evidence. In this case you will be provided with clear and constructive feedback based on the assessment decision so that you can improve your skills / knowledge prior to reassessment.
If you require an allowable adjustment to this assessment procedure you should discuss this with your assessor
If you are dissatisfied with an assessment decision you should make an appeal to NTCAInstitute in writing no longer than 10 days following advice of the assessment decision
Context of and specific resources for assessment
Access to office equipment and learning resources, access to computer with internet, printer, projector, and other office facilities.
Budgets, Bistro May budgets, Bistro reports
Tasks to be completed by the student
This assessment consists of Three Parts namely A, B and C
Part A
This part consists of Three tasks namely 1, 2 and 3
Read the Contextualised scenario and answer the questions outlined in three tasks.
Contextualised scenario
The Jackson hotel has a bistro, two bars (public and sports), a drive-through and walk-in bottle shop and TAB situated beside the sports bar.
You are the manager of JJ’s Bistro. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. This glass walled areas are within view of customers seated in the rear section of the bistro.
The hotel’s management team develop an operational budget for the business based on previous budgets, anticipated business and any special projects, such as renovations or new products. Each operational area within the hotel is given a departmental budget based on organisational goals and their anticipated revenue and expenses.
Budgets are developed on a quarterly basis. Each department has quarterly and monthly budget targets. Monthly budgets can be adjusted during a quarterly cycle if circumstances within the department change.
The following events have taken place during the April budget period.
Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.
Prices for many wines have fallen due to a surplus in the market.
Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.
A major wine supplier has been running an in-house promotional campaign, with staff product knowledge training provided to help increase sales.
The bistro menu changes to the new winter menu on May 1st. Its introduction is being promoted in April throughout the hotel.
Task 1: Monitor budgets
Refer to the document “budgets” provided on Futura Moodle and answer the following questions
Q1: List the hotel’s financial commitments under their correct cost category. Name at least two commitments for each category
Variable direct costs
Variable indirect costs
Fixed indirect costs
Q2: Name the top four cost categories the business has allocated the most funds too in this budget period.
Q3: Why have significant funds been allocated to these categories?
Discuss their importance to the business and consequences if inadequate funds are allocated.
Q4: Using the same document “budgets “go to the Bistro departmental budget – April.
You are holding a team meeting to discuss the financial targets provided in the organisational and April bistro budgets.
What information do you need to communicate to the team to ensure they understand the targets and goals to be achieved?
Q5: What techniques can you use to promote awareness of methods of controlling costs or increasing sales, so you can achieve budget targets?
Task 2: Calculate variances
Refer to the document “budgets” provided to you
Complete the comparative analysis report for the Bistro departmental budget – April by calculating all missing dollar value and percentage variances.
Complete the Favourable/Unfavourable column by indicating if the budget results are favourable (F) or unfavourable (UF) for the business.
Task 3:
Answer the following questions based on the budget outcomes in the completed April budget comparative report in Task 2.
Q1: Are there any significant variances in the sales figures that you should be concerned about? Explain what the results indicate and why you are/are not concerned about them.
Q2: Are there significant variances in any of the expenses categories that you think should be investigated further? If yes, discuss which categories and why you think they need investigation. If no, discuss why the deviations do not warrant investigation.
Q3: Based on your responses to questions 1 and 2, what is your overall evaluation of the budget results? Is the bistro meeting its financial targets?
Q4: Which expense category has the most funds allocated to it? Explain why it is important you manage costs in this category carefully.
Q5: Using the results and information obtained from the April comparative report, your answers to the previous questions and the background information, write a transcript of the outcomes of your report ready to deliver to the bistro staff at the next team meeting. The transcript should include the following information.
The current status of the budget; is the work area meeting its budget targets, is it on track to meet June quarter budget targets?
Which areas are underperforming or performing better than expected?
What changes, if any, need to be made to help the team meet next month’s budget targets?
An outline of budget targets for May.
Organisational factors that contributed to the setting of these targets.
For this part of assessment your assessor will assess your evidence on the criteria listed in the Assessment coversheet
Evidence to be collected for this part of assessment:
Task 1: Printed copy of responses to all the question listed under the Task
Task 2: Printed copy of completed comparative analysis report for the Bistro departmental budget – April
Task 3: Printed copy of responses to all the question listed under the Task
Part B
This part consists of Three tasks namely 1, 2 and 3
Read the Contextualised scenario and answer the questions outlined in three tasks.
Contextualised scenario
JJ’s Bistro is located in Jackson’s hotel. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glass-walled play areas are within view of customers seated in the rear section of the bistro.
The following events took place during the May budget period.
Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.
Prices for many wines have fallen due to a glut in the market.
Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.
Most utility companies increased prices by 7% at the start of May.
The local police started a blitz on drink driving in the middle of May with increased police presence in local suburbs and roadside testing of drivers.
In-house training was provided to key food and beverage staff in April by a coffee supplier. The aim is to increase sales and the quality of coffee served. The training was free of charge as part of a new preferred supplier contract with the coffee supplier.
A major wine supplier has been running an in-house promotional campaign, with staff training provided to help increase product knowledge.
The bistro menu changed to the new winter menu on 1 May 20XX. It was heavily promoted in May throughout the hotel and in local community newspapers.
Task 1: Interpret budget results
Refer to document “Bistro May budgets” provided on Futura Moodle
Evaluate the budget outcomes and their impact on the operation and financial goals of the bistro.
Answer all questions based on the outcomes in the comparative analysis report, Bistro purchasing budget – May and the Contextualised scenario information.
Q1: Discuss how the outcomes food and beverage sales and costs of sales indicated in the May comparative analysis report impact the bistro area and the business overall. Consider the types of deviation (positive or negative) and size of the deviations in food, beverage and total sales and cost of sales categories.
Q2: What are two possible explanations for the deviations in food costs and beverage costs? Consider information provided in the May purchasing budget as well as the comparative report and case study information.
Q3: When preparing the budgets, the hotel forecasted food costs as 37% of food sales and beverage costs as 30% of beverage sales.
Is the bistro meeting organisational goals for cost of sales? What is the difference between the budget target and actual results?
Food purchases
Beverage purchases
Q4: Should these deviations be reported to management? Explain why/why not.
Q5: Based on the May purchasing budget, in what categories are the largest food and beverage cost deviations occurring?
Task 2: Investigate option to improve performance
The food and beverage manager is very concerned about the food and beverage purchasing and cost of sales results. They want the bistro team to make it a priority to meet budget targets for cost of sales in June. Management then plan to reduce budget allocations for food and beverage purchases in the September quarter budget. It is an organisational goal to reduce cost of sales to below the current percentages of 37% food cost and 30% beverage cost. To meet June and September quarter budget targets, new methods of managing costs must be investigated.
Refer to document “Bistro May budgets” provided on Futura Moodle
Answer all questions based on the outcomes in the comparative analysis report Bistro departmental budget – May, Bistro purchasing budget – May and Contextualised scenario
Q1: List four options for managing costs that could be applied to this situation.
Q2: You have decided to source new fruit and vegetable and seafood suppliers. Describe how you would investigate if changing suppliers is a viable option for reducing your cost of sales. How will you obtain information to determine if prices and product quality from alternate suppliers are appropriate for your operation?
Q3: You need to investigate which current suppliers have increased prices for products and services, how much prices have risen and how much of the business’s financial resources are allocated to existing suppliers. What organisational financial documentation will provide this information?
Q4: Your research has revealed that a number of other suppliers can supply similar quality items at cheaper prices than your current supplier. Describe what you would discuss with your current supplier before making a decision.
Q5: Who would you consult with before implementing any changes to the hotel’s suppliers of fruits and vegetable and seafood products?
Task 3: Improve budget performance
Refer to document “Bistro May budgets” provided on Futura Moodle
Read and interpret the information and outcomes contained in the Bistro labour budget – June quarter.
Evaluate their impact on the operation and financial goals of the bistro.
Answer all questions based on the labour comparative analysis report, staffing and Contextualised scenario information.
Q1: Complete the table below by inserting the variance percentage for each category in each month.
| Category |
Bistro labour budget – variance percentage |
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April |
May |
June |
June quarter |
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| Salaries | ||||
| Front of house | ||||
| Kitchen | ||||
| Total labour | ||||
Q2: What do these statistics tell you about the bistro’s performance for the June quarter? Explain what the variances mean and how this affects the department’s ability to meet its financial goals.
Q3: Management think one reason for high bistro labour costs is the department is consistently overstaffed; more staff than necessary are rostered on for most service periods. Rosters have been reviewed and new staffing levels suggested for front of house and kitchen areas. The number of customers served, and sales revenue is expected to remain relatively stable in the near future.
Review the bistro’s current and revised staffing levels in Bistro staffing levels table in the document “Bistro May budgets” provided on Futura Moodle
Discuss the impact these changes could have on customer service levels, your team and budget targets. Consider both positive and negative outcomes.
Q4: What payroll documentation can you use to maintain detailed records and monitor funds allocated to labour costs during the budget period?
Q5: During the initial investigation phase, with whom would you discuss the reasons for changes to rosters and the desired outcomes of the changes?
Q6: You believe the changes will have a negative impact on customer service standards and food quality, leading to an increase in customer complaints. This could lead to lower customer numbers and sales revenue over the next year.
You want to present your concerns to management and recommend smaller cuts to staffing levels, especially to the front of house team during the busiest periods. Your suggestions include better management of hours worked by casual staff and a review of service procedures to streamline work practices.
Prepare a transcript of your recommendations to be presented to management at the next management meeting.
For this part of assessment your assessor will assess your evidence on the criteria listed in the Assessment coversheet
Evidence to be collected for this part of assessment:
Task 1: Printed copy of responses to all the question listed under the Task
Task 2: Printed copy of responses to all the question listed under the Task
Task 3: Printed copy of responses to all the question listed under the Task
Part C
This part consists of Four tasks namely 1, 2, 3 and 4
Read the Contextualised scenario and answer the questions outlined in Four tasks.
Contextualised scenario
It is the end of the June financial quarter and all departments in the Jackson’s hotel are preparing financial and statistical reports
Task 1: Prepare a profit and loss statement
Refer to document “Bistro reports” provided on Futura Moodle
Complete the Bistro profit and loss statement – June quarter by calculating all missing dollar value and percentage variances.
Task 2: Prepare a statistical report
Refer to document “Bistro reports” provided on Futura Moodle and Complete the Trend analysis report – June quarter using the information provided.
Task 3: Prepare a management report
Prepare a short report to management outlining the following information.
Positive and negative budget variations indicated in monthly and quarter analysis reports and profit and loss statement that are significant enough to affect the operation of the bistro and its profitability.
Trends identified in the trend analysis report that have the potential to affect the bistro’s profitability in the immediate future.
Possible reasons for the positive or negative variations and trends.
Any recent actions that have been taken or changes to operational procedures as a result of trends and deviations.
Base the report on the following information.
Profit and loss statement
Trend analysis report
April, May and June comparative analysis reports
Case study information provided in Assessments C and D
Your responses to questions in Assessments C and D
The report should present information in a clear, concise and easy to understand manner, so it supports good decision-making processes.
Submit the completed report to your assessor.
Task 4: Question and answer
Q1: The following factors must be considered when preparing financial and statistical reports. Select three factors that are relevant to one or more of the reports you prepared or completed in Tasks 1, 2 and 3.
Discuss how they influenced preparation or outcomes of the report(s).
Factors for consideration in the preparation of financial and statistical reports.
Performance of department, project and/or products and services
Daily, weekly and monthly transactions
Variances in income and/or expenditure
Sales performance
Sales returns
Staff costs
Cash flow
Covers and financial return
Expenditure
Income
Occupancy rates and financial return
Stock levels
Wastage
Yield
For this part of assessment your assessor will assess your evidence on the criteria listed in the Assessment coversheet
Evidence to be collected for this part of assessment:
Task 1: Printed copy of Complete the Bistro profit and loss statement – June quarter
Task 2: Printed copy of Complete the Trend analysis report – June quarter
Task 3: Printed copy of Management report addressing the task requirements
Task 4: Printed copy of responses to all the question listed under the Task