Assessment Resource Summary
Unit Details FNSACC503 Manage budgets and forecasts
Assessment Methods Case Study Assessment Task 1
Project Assessment Task 2
Written Questions Assessment Task 3
Unit Summary
This unit describes the performance outcomes, skills and knowledge required to prepare, document and manage budgets and forecasts, and encompasses forecasting estimates and monitoring budgeted outcomes.
The unit has application to job roles that have responsibility for managing budgets and forecasts such as accountants and chief financial officers.
Prerequisite Units
There are no recommended pre-requisite units for this competency.
Possible Co-requisite Units
Competence in this unit may be assessed in conjunction with other units which together form part of a holistic work role.
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Summative Assessment - Assessor Instructions
It is important that in conducting assessment, the assessor undertakes the following:
Prior to conducting the assessment
• Read the assessment tasks as detailed throughout this document
• Contextualise the task (and checklist) to ensure it reflects the students working environment. (Be sure to check with the mapping document to ensure any contextualisation still covers the unit requirements)
• Read the assessor instructions and checklist prior to commencing the assessment
• Ensure the assessment environment is suitable for the parameters of the task, to ensure the students will have an appropriate opportunity to demonstrates their skills
• Make suitable modifications to the assessment environment (if required), to allow all tasks to be observed
• Ensure the student is allocated the appropriate time and resources for the task
• If undertaken on the job - discuss the assessment with the workplace supervisor, to so they are aware of what will happen throughout the process
• If undertaken on the job - Determine and agree with the supervisor an acceptable time frame for each assessment.
• Advise the student prior to conducting the assessment of:
o what will occur throughout the assessment process?
o when the assessment will occur
o the level of competency expected (review the checklist or the criteria for the task to ensure the student understands the assessment process and the expectations)
o the RTO reasonable adjustment process and offer adjustment for any students needing assistance
o the RTO re-assessment and appeals process
• You should not tell the student how to undertake the task, as it would lead the student and render the assessment process invalid. The student should have been taught -How- to perform each task during the training stage, and is expected to know this prior to commencing the assessment.
• Do not give the student a copy of the Assessor Checklist or Sample Answers prior to the assessment. The student instructions provide appropriate detail for the student on the expected level of competency for each task.
Conducting the assessment
• Establish and oversee the evidence gathering process to ensure it remains valid, reliable, fair and flexible
• Advise the student when to commence the assessment
• Observe the student undertake the tasks as outlined
• Record your observations in the assessor checklist
• Where a checklist point is not observed due to an inappropriate environment, or for a reason outside the students control, modify the scenario to allow the student an opportunity to perform the associated task
• Where a checklist point is not appropriate, write -N/A- in the space provided
• Incorporate allowable adjustments to the assessment procedure without compromising the integrity of the assessment. Be sure to make appropriate notations on the assessment checklist to explain any variances to the assessment process (such as probing questions, alterations to assessment environment, etc.) to ensure the assessment process is transparent (and the assessment remains Valid)
• Gather supporting documentation where available and appropriate (as evidence)
• Do not interfere with the assessment unless the student’s actions impose a risk to themselves or anyone else. In the event that the actions of the student impact on the safety of any person - you are to immediately cease the assessment and take actions to reduce the identified risk.
• If a student performs an action incorrectly, mark it as such. Record what you see, not what you want to see.
• Once the assessment is complete, advise the student that the assessment has ceased, and record your comments in the sections provided.
Making and recording the decision
• The student needs to be deemed satisfactory in all assessments to gain competency.
• You are to provide feedback* to the student on their performance and/or the outcome from their assessment (whether satisfactory or not yet satisfactory)
• If a student has been assessed as -Not Yet Satisfactory- on their performance in an assessment they should be offered information about the appeal process and/or a reassessment opportunity.
• Using the evidence gathered and the rules of evidence (validity, reliability, sufficiency, currency and authenticity) determine the final outcome for the student. If you are in doubt, gather further evidence to help guide your decision.
• Assess the students on what you observe during the assessment period, not on their actions before or after the assessment.
• If you are marking the student NYC, ensure you outline why you have made this decision, and provide advice on how the student can improve their skills / knowledge prior to reassessment; or if the re-assessment opportunities have lapsed, provide advice on appeals and or re-enrolment.
• Record the assessment results onto the Assessment Summary / Cover Sheet, ensuring each section is complete
• Attach all evidence (projects / checklists / tests, etc.) to this form.
• Submit the completed Assessment Summary/ Cover sheet and associated evidence for processing as per your RTO procedures
Providing feedback
• Provide constructive feedback to the student on their performance during the assessment period. Do not make any comments on actions undertaken prior or after the assessment period.
• Provide the student with:
o Their assessment result
o Clear and constructive feedback based on the assessment decision
o The reasons underpinning your assessment decision
o Information on ways of overcoming any identified gaps in competency revealed by the assessment the opportunity to discuss the assessment process and outcome information on reassessment and the appeals processes.
o An opportunity for reassessment if appropriate or requested by the candidate

ASSESSMENT SUMMARY / COVER SHEET
This form is to be completed by the assessor and used as a final record of student competency.
All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file.
Student results are not to be entered onto the Student Management Database unless all relevant paperwork is completed and attached to this form.
Student Name:
Student ID No:
Final Completion Date:
Unit Code: FNSACC503
Unit Title: Manage budgets and forecasts
Please attach the following documentation to this form Result
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed Reassessment
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed
Assessment Task 1 ? Case study S | NS | NA S | NS | NA
Assessment Task 2 ? Project S | NS | NA S | NS | NA
Assessment Task 3 ? Answers to written questions S | NS | NA S | NS | NA
Final Assessment Result for this unit C / NYC
Assessor Notes: (inclusive of reassessment, reasonable adjustment, further opportunities for gap training etc):
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Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights.
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
Name: ____________________________
Signature: ____________________________
Date: ____/_____/_____
Administrative use only
Entered onto Student Management Database ? ________________
Date
Initials

ASSESSMENT 1 – STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements.
Instructions for Students:
Whilst researching and writing your project it is important to:
• Read the Assessment description carefully.
• Assessment should be in a Word format.
• Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
• Acknowledge clearly when and how you are drawing on the ideas or phrases of others;
• Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
• Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
• Student can seek clarification regarding the assessment required to be done.
• Students can ask for reasonable time from Assessor for preparation of project or Assessment.
• Students can seek information on additional reading material and reference for completion of the assessments.
• Students with special needs can seek assistance from Assessors depending upon the nature of the need.
• Submit this document
Case Study Assessment Task 1
For this assessment, you are required to go through the case study and answer the questions that follow the case study.
Task:
You have been asked by the Owner of A2Z Pty Ltd to prepare the master budget. The owner who charges out at $68 per hour and the junior staff who are charged out at $42 per hour. The owner of A2Z has advised you that the following hours are forecast for each quarter.
The A2Z core business is consultancy providing to different RTO’s. The A2Z has a credit system of payment with 60% of payment received the quarter in which they are earned and the remaining 40% earned the following month. The opening accounts receivable is $13200 incl GST. The GST is accounted for on an accrual basis.
Additional Information:
The Owner will purchase a new vehicle in the September quarter for $27,500. In March they will purchase photocopiers for $5500 and a computer system for $5500 with an upgrade in March for further $2750. Each item is inclusive of GST.
The information in the below table is based on sources documentation from A2Z Solutions’ previous operations. GST Expenses are show. Use the information in the table to prepare the budget in Q2.
2013 September December March June
Motor Vehicle 1300 1495 300 450
Printing 200 50 200 50
Electricity 600 555 500 500
Rent 4500 4500 4500 4500
Depreciation is $700 per quarter and tax payable at 30% of net profit per quarter. Wages for the senior staff are $8000 per quarter and Junior $5000
Q1.
Prepare the revenue receipts forecast and cash collections forecast for the 2013-year.
Hours Sept Dec March June
Senior 250 230 230 230
Junior 210 220 210 220
Q2. Prepare the Capital Expense Budget for the 2013-Year.
Q3. Suppose the A2Z Pty Ltd. Has no n- current assets valued at $55000 with accumulated depreciation at the beginning of the year of 20,000. Use the depreciation expense for the forecast year and other relevant items to complete the budgeted statement of financial position as at 30.06.2013. Hint: assume no depreciation on new non – current assets and all equity is represented by retained profits.
Q4. What makes setting budget accounts assumptions time – consuming for A2Z Pty Ltd. And what must it consider?
ASSESSMENT 2 – STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
Instructions for Students:
Whilst researching and writing your project it is important to:
• Read the Assessment description carefully.
• Assessment should be in a Word format.
• Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
• Acknowledge clearly when and how you are drawing on the ideas or phrases of others;
• Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
• Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
• Student can seek clarification regarding the assessment required to be done.
• Students can ask for reasonable time from Assessor for preparation of project or Assessment.
• Students can seek information on additional reading material and reference for completion of the assessments.
• Students with special needs can seek assistance from Assessors depending upon the nature of the need.
• Submit this document
Project Assessment Task 2
• You need to answer all questions of the Project task
Part 1: Defining Your Objectives
You’re an accountant who’s been brought in to manage the books of a small electronics store, Noob’s Choice. Noob’s Choice operates in the South Eastern area of Melbourne. Steve, the owner/manager has brought you in because up till now he has been the one handling the accounts and has noticed a few worrying trends:
• New competition has recently increased and Noob’s Choice is losing market share
• They’ve been experiencing continuous cash flow issues, which means they have a shortage of cash when it comes to paying monthly and quarterly bills
Steve’s long term goal is to take back their market share and bring the cash balance back to surplus. As part of the company’s organisational aims and projects, Steve wants to regain their market share to become the number 1 computer store in the Southern Eastern area and have enough cash reserves to open up a proper online shop. Steve also has budget objectives, which are:
• Increasing sales by 10% over a 12-month period
• Increasing market share by 10%
• Bring back cash balance to surplus, so we can stop paying overdraft interest to the bank.
Questions:
1.1 What are Noob’s Choice budget objectives?
1.2 Are the budget objectives in line with Noob’s Choice’s organisational aims and projects? Why?
Part 2: Organisational Sales Targets
Below is a table containing the 3 last year’s best-selling models.
Model name HP 3225C Student Asus 9560 Sport SONY 1000 Game
Sales units Average selling price $ Sales units Average selling price $ Sales units Average selling price $
2010 20 560 22 520 15 650
2011 18 540 21 500 14 620
2012 17 520 20 480 13 590
Noob’s Choice’s sales staff have performance indicators for different quarters, for high season, set sales targets 25%-30% of annual sales, low season 20%-25%. They must reach these milestones in order to get their commission for each quarter.
Average percentage % achieved in 2010 2011 2012 2013
Quarter 1 20 21 22
Quarter 2 25 24 23
Quarter 3 20 21 22
Quarter 4 24 23 22
2.1. Which model sells the best and creates the most revenue in the last three years?
2.2 Steve wants all staff to be on board with budget implementation. He wants you to create a survey asking for their input. What are some goodwill-inducing strategies Noob’s Choice could implement to ensure staff cooperation?
2.3 For the first quarter of this year in the budget, what percentage of annual sales should be achieved for each quarter in 2013?
Part 3:
After you have prepared the survey, Steve (micromanaging) totally ignores their suggestions and decides to stick to his personal assumptions in improving sales turnover:
• More budget for marketing campaigns – tap into a new market, promotions
• Clean the shop more!
• Audit of where the money is going (further on into the case study they discover the staff are buying stationary for themselves, staff accounts ore ticking up)
3.1 Steve has informed you that Noob’s Choice is going to have some cash outflow in paying bills, such as electricity every month $340, staff monthly wages $3000 and mortgage interest $1200 in the first month of each quarter and decreasing revenue of 10% from last year’s total cash sales of $ 87,400 as a result of new competitors. Use average percentage achieved in each quarter from Part 2 and work out the cash balance on the end of each quarter based on all these factors. Use relevant data to help support your budget. Opening cash balance in quarter 1 is -$13,000.
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Cash receipts
Cash payments
Electricity
Mortgage Interest
Staff wages
Total Cash payments
Net cash surplus/deficit
Opening cash balance
Closing cash balance
3.2 The internal policy is that staff must pay for their purchases within 7 days. After checking the account, you discover they haven’t paid at all! You look at the sales data and notice something funny going on with the staff accounts; they seem to be in the red. What do you think is most likely to happen to the business within the next 6 months if this trend continues? Comment on Steve’s assumptions and give recommendations.
Part 4:
Steve prepares sales report by himself (He does accounting too!) and has shown you a sales report sample below:
Monthly sales report ASUS 9150 SONY 6520 ACER 5460
Steve 2 3 5
Jake 5 6 6
Charlie 6 2 2
Allen 2 3 3
Q1. Do you think this report shows necessary details for monthly sales? What other information could be added to give an understandable and appropriate report?
Q2. Steve likes to leave monthly sales report after he finishes everything (he never finishes) and that has caused a few problems in remuneration, stock purchase and marketing campaign. How often do you suggest that Steve should distribute the report to staff members? What suggestion do you give him to stick to the timeline?
Q3. Some changes have happened to Steve’s business territory:
A new store opened a few weeks ago, attracting a lot of attention from households and businesses;
Existing customers are moving to other suburbs;
A lot of retirees have just moved into this suburb;
A primary school is on schedule to be built later this year;
Identify the positive and negative impacts of those events to Steve’s business. What issues should Steve take into consideration for those changes? Provide detail analysis.
Q4. Due to an increasing competition from new stores on the same street, Steve has decided to relocate his shop to another suburb which is further away from CBD. The new suburb is still undergoing constructions in infrastructure including setting up optical cables and exchange portals. The new suburb has a lot of young families with low to medium income. The shopping centre where Steve wants to open the shop has a lot of vacancy with affordable rent.
Please discuss the feasibility for Steve to relocate his shop to this new suburb. You may include different scenarios in your analysis.
ASSESSMENT 3 – STUDENT INFORMATION
Student Instructions: (Written Assessment Only)
This is a closed book written assessment. In allocated time of 3 hours, you are to answer all of the following questions. Make sure you:
• Print Clearly
• Answer all questions
• Use a pen. Assessments written in pencil will not be accepted.
• Ask your assessor if you do not understand a question. Whist your assessor cannot tell you the answer, he/she may be able to re-word the question for you
• Do not talk to your classmates. If you are caught talking, you will be asked to leave and your assessment will not be marked.
• Do not cheat. Anyone caught cheating will automatically be marked Not Yet Competent for this unit. There are NO EXCEPTIONS to this rule.
Written Questions Assessment Task 3
1. A2Z has an organisational policy saying variance in office expense must be no more than 5% compared to budget. As a Finance Officer at A2Z Training Solutions, you have noticed a constant variance in stationery purchases of 10%. Please list three reasons behind the variance.
2. After investigation, you believe the high usage of stationery is due to a high turnover of casual staff members who deliver training on XXXXX. It is possible that they have taken some stationery for personal use. What do you recommend to management in order to prevent/reduce their personal possession?
3. Knifepoint Hideout Hotel is undergoing a budget process for next year. The finance officer simply takes the figures from last year and increases all revenue and expenses by 2-3%. However you have a feeling that some expenses will increase by up to 10%. What recommendations do you give to the finance officer in order to review the unusual increase in those expenses?
4. Due to environmental groups’ constant lobbying, the government has decided to charge a tax on non-recycling paper, which is the main print resource for your business. What measures could you take to implement the tightly budgeted office expense to minimize the impact?
5. Briefly describe what quantitative and qualitative data are in regard to budgeting?
6. What does the budget audit examine?
7. What corrective action does the budget audit consider?
8. How should budget assumptions be dealt with to guard against unethical assumptions?
9. To be able to complete budget reporting on time, how should accountants approach new project reporting in a manufacturing business?
10. In order to be effective, which type of executions should make up the majority of the audit committee members?
UNIT SUMMARY RESULT
This form is to be completed by the Trainer/Assessor and attached as a summary page for each student. To provide the outcome of the Assessment, a photocopy will be given to the student.
Student Name
Student ID
Unit Name Manage budgets and forecasts Unit Code FNSACC503
Unit start date
Unit end date
Summary of Assessments
Satisfactory Not Yet Satisfactory
Assessment Task 1
Assessment Task 2
To achieve competency for the unit, student must be COMPETENT in all tasks.
COMPETENT NOT YET COMPETENT
FINAL FEEDBACK FOR THE STUDENT:
ASSESSOR / TRAINER DECLARATION
I declare that I performed the assessment for this student as per the principles of assessment and to the best of my knowledge all evidences attached are the student works. Furthermore, I declare that I have conducted a fair, valid, reliable and flexible assessment for this student and provided appropriate feedback.
Assessor / Trainer Name ___________________________
AGREEMENT THAT ASSESSMENT COMPETENCY HAS BEEN ACHIEVED:
Student Signature _______________________________________
Date ____________________
Assessor / Trainer Signature ___________________________
Date: ___________________
USE FOR REASSESSMENT ONLY
Task No/s. ________________________________________
Components: _____________________________________
RESULT OF REASSESSMENT: COMPETENT NOT YET COMPETENT
ASSESSOR / TRAINER FEEDBACK
Student Signature _______________________________________
Date ____________________
ASSESSOR / TRAINER DECLARATION
I declare that I have assessed the student as per the principles of assessment and to the best of my knowledge all evidences attached are the student works.
Assessor / Trainer Name ______________________________
Assessor / Trainer Signature ___________________________
Date: ___________________
Student Assessment Receipt:
Student Name
Student ID
Unit Name
Manage budgets and forecasts Unit Code FNSACC503
Summary of Assessments
Satisfactory Not Yet Satisfactory
Assessment Task 1
Assessment Task 2
Assessment Task 3
Assessor / Trainer Name: ___________________________
Assessor / Trainer Signature: ___________________________
Date: ___________________