ASSESSMENT 1 – CASE STUDY - STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements.
Student Instructions
You are required to demonstrate your ability to read and review profit and loss statements, cash flows and aging summaries, prepare, implement and revise a budget, and establish a budget and allocate funds
For this assessment you may choose to use as a business model-
i. The organisation where you currently work or another organisation that you are familiar with, provided in either case that you have access to, and permission from the organisation to use, the necessary information and data (see * below), or
ii. An organisation to be allocated to you by your Assessor
You may be required to use the same business model for the other assessments in this unit.
If you choose option (i) above, you must discuss which organisation you will use with your Assessor and have it approved by your Assessor BEFORE you start, to ensure it is of appropriate scope and to confirm that have access to the required information. You must be able to provide copies of the documents described below * for your Assessor if asked.
If you choose option (ii), your Assessor will provide you with the necessary links to Bounce Fitness or a similarly appropriate business model.
*At a minimum, you will need to have access to the following information for the organisation -
? Business Plan, including KPI’s
? Financial Policy and Budget Policy
? Profit and Loss Statements
? Financial Budgets
This assessment is to be undertaken in four parts, which should be undertaken consecutively following each of the twelve steps.
TASK 1
1. Review the latest Business Plan to gain an understanding of the business and its key financial drivers, budgets and anticipated financial outcomes
2. Review the Profit and Loss Statements to establish where the profits and losses have been generated and whether the financial goals are being met
3. Analyse the actual trends in cash flows over the previous 12 months, and available ageing data, and summarise your findings, including whether future cash flows are likely to be adequate. If not, make recommendations for change
4. Research relevant statutory requirements and review / confirm legislative financial liabilities are being met for all taxation. If not, make recommendations for change
5. Determine the critical dates and initiatives that will require or generate resources in the next financial cycle
TASK 2
Based on your findings and conclusions from Task 1, including any recommendations:
6. Determine the appropriate allocation of available (financial) resources, including allowance for any new items based on research and informed estimates
7. Identify any significant contingencies and recommend how they may be dealt with
8. Research and review the organisation’s budgeting policies and procedures, and any relevant statutory requirements, to determine appropriate processes for preparing budgets
9. Prepare (or revise existing) Profit and Loss Budget and a Cash Flow Forecast for the following 12 months
TASK 3
10. Identify who are the appropriate managers and supervisors responsible and accountable for the budget outcomes. For each person, determine the particular aspects of the budget they have control and responsibility. You need to maintain confidentiality and ensure individuals are only provided with budget information under their control or relevant for them.
11. Develop a communication strategy to ensure those managers and supervisors are clear about their budgets, reporting requirements and financial delegations. (This may be for example individualised detailed budgets or briefing papers, or other communication).
TASK 4
12. Prepare a report for the CEO and senior executives to support the budgets and forecasts developed in Task 2. Your report is to detail the results of your findings and analysis from Task 1 and Task 2, with any recommendations, including in particular-
i. The key financial drivers, budgets and anticipated financial outcomes
ii. Where profits and losses have been generated and if the financial goals are being met
iii. Adequacy of future cash flows
iv. Taxation liabilities
v. Critical dates and initiatives that will require or generate resources
vi. Allocation of available resources, and how estimates were made for any new items
vii. Contingencies and how they may be dealt with
viii. Any significant issues not already covered, and how to prioritise them
DOCUMENTS TO BE SUBMITTED to complete this assessment-
Profit and Loss Budget (Task 2.9)
Cash Flow Forecast (Task 2.9)
Summary of responsibilities and accountabilities (Task 3.10)
Communication strategy (Task 3.11)
Report for CEO (Task 4)
vi) If you have used a business model that was not Bounce Fitness or one provided by your Assessor, copies of the relevant Business Plan, Financial Policy and Budget Policy, Profit and Loss Statements and Financial Budgets that you have used for this assessment
ASSESSMENT 1 – ASSESSOR CHECKLIST
This checklist is to be used when assessing the students in this task. This checklist is to be completed for each student. Please refer to separate mapping document for specific details relating to alignment of this task to the unit requirements.
Did the student: Satisfactory Comments
determine appropriate processes for preparing budgets ? Yes ? No
appropriately prepare or revise Profit and Loss Budget ? Yes ? No
appropriately prepare or revise Cash Flow Forecast ? Yes ? No
correctly identify the responsible and accountable managers and supervisors ? Yes ? No
develop a suitable communications strategy ? Yes ? No
maintain confidentiality and ensure individuals are only provided with budget information relevant to them ? Yes ? No
identify the key financial drivers, budgets and anticipated financial outcomes ? Yes ? No
identify where profits and losses have been generated and if the financial goals are being met ? Yes ? No
determine the adequacy of future cash flows ? Yes ? No
identify all taxation liabilities ? Yes ? No
identify critical dates and initiatives that will require or generate resources ? Yes ? No
appropriately allocate available resources, and how estimates were made for any new items ? Yes ? No
use informed estimates if new items were required ? Yes ? No
identify significant contingencies if any and recommend how they may be dealt ? Yes ? No
address any significant issues not already covered, and how to prioritise them ? Yes ? No
Profit and Loss Budget attached ? Yes ? No
Cash Flow Forecast attached ? Yes ? No
Responsibilities and accountabilities attached ? Yes ? No
Communication strategy attached ? Yes ? No
Report for CEO attached ? Yes ? No
copies of the relevant documents cited or attached ? Yes ? No
? N/A
Comments
Result: Satisfactory / Not Satisfactory
Assessor: I declare that I have conducted a fair, valid, reliable, and flexible assessment with this student, and I have or will provide appropriate feedback Signature: ____________________________
Date: ____/_____/_____