The work you submit
FMA 2016 Assignment: Budgets and financial plans 1 Assignment: Manage budgets and financial plans The work you submit will be assessed to determine whether you have achieved a competent result in the unit you have submitted, the results of this assessment will be provided to you. Assessment tasks Assessment tasks are indicated by this icon. All assessment tasks must be submitted in order to successfully complete the assignment. What do I have to do? To successfully complete this assignment you will need to demonstrate the required level of skills and knowledge for each of the elements involved in managing budgets and financial plans in the role as a Facility Manager. The elements are: Plan financial management approaches Implement financial management approaches Monitor and control finances Review and evaluate financial management processes The required skills you will need to demonstrate are: to use numeracy skills read and understand a budget and to update a budget to use technology skills to employ software associated with financial record keeping The required knowledge you will need to demonstrate is of: basic accounting principles organisational requirements related to financial management relevant legislation and current requirements of the Australian Taxation Office, including GST, requirements for organisational record keeping and auditing and principles and techniques involved in: o budgeting o cash flows FMA 2016 2 Assignment: Budgets and financial plans o electronic spreadsheets o GST o ledgers and financial statements o profit and loss statements FMA 2016 Assignment: Budgets and financial plans 3 Assessment tasks In this Assignment there are four assessment tasks. Assessment task 1 Using the Learner Resource, the Internet and workplace experience, research the following concepts and techniques, and write short answers to the accompanying questions. List of concepts: Approaches to budgeting: o What form of budgeting is used in your facility? o In your opinion, is it the most appropriate approach to use? Explain why or why not. o If it isnt, which approach would you prefer, and why? Contingency plans: o How would (or do) you plan for contingencies in staffing in your team? o How would (or do) you plan for contingencies in delivering the services of the facilities management work area within your budget? o Describe the impact this has on your budget and/or financial plan. Asset registers: o Explain how you use asset registers to assist you in managing the budget and/or financial plan for your area. o Could the process you currently use be improved? Explain how, or why not. Expenses/trading expenditure: o What are the more common expenses incurred in running your facilities management work area? o How do you track these, and ensure they are accounted for? How do you use records of this expenditure to plan for future budgeting/financial planning? FMA 2016 4 Assignment: Budgets and financial plans Assessment task 2 Choose two examples from the following list, of budget or financial plans that you have worked on in your workplace: Cash flow projections Long-term budgets plans Operation plans Short term budgets/plans Spreadsheet based financial projections Targets or key performance indicators for production, productivity, wastage, sales, income and expenditure. For each of the chosen plans provide examples of the following: Show how you have clarified the plan with relevant personnel within your organisation to ensure that the document outcomes are achievable, accurate and comprehensible. Relevant personnel you need to refer are: o Financial managers, accountants or financial controllers o Supervisors, other frontline managers How did you negotiate any changes required to be made to the plan with relevant personnel within the organisation? Show a prepared contingency plan in the event that the initial plans need to be varied. FMA 2016 Assignment: Budgets and financial plans 5 Assessment task 3 The annual budget for your facility has already been approved. Two months into the budget period, you need to introduce a new item of plant or machinery to improve one of the processes in your facility. For the new item of plant or machinery, select a regularly used, existing item in your facility, and use that for the purposes of this assessment task. (In other words, assume your facility does not have this item and you have decided it is now required to improve processes in the facility.) Find out some general information about the item including its initial cost, ongoing maintenance needs and costs, etc. How would you go about funding this item (or requesting funding)? What is the initial cost? What are the anticipated ongoing costs per year ongoing maintenance needs and costs? How will the purchase and ongoing costs affect your current year operational budget and next years operational budget. How will the purchase affect the organisations financial statements (profit and loss, balance sheet and cash flow statement) for the year of purchase. List the benefits of purchasing the item. Assume there is a financial savings of 15% of the purchase price per year over a period of five years. What is the payback period? What is the net present value? For this calculation, consider only purchase price and savings. Do not consider the ongoing maintenance costs. FMA 2016 6 Assignment: Budgets and financial plans Assessment task 4 Write a short report that reviews the financial management processes of your work team. Identify two areas for improvement and explain how you would negotiate these changes. The data and information you need to address should reference at least three of the following: Bank account records Cash flow data Contracts Credit card receipts Insurance reports Invoices Job costings Petty cash receipts Taxation records You must show evidence of how you identified, documented and recommended any improvements to existing processes, and then describe how you would implement and monitor (or have implemented and monitored) these improvements, in line with financial objectives of your team and organisation.