What will be assessed
The purpose of this task portfolio is to assess the following performance requirements outline for the unit of competency BSBFIM601:
• plan for financial management
• read and review profit and loss statements, cash flows and aging summaries
• prepare, implement and revise a budget which aligns with the business plan, is based on research and analysis of previous financial data and cash flow trends, and meets all compliance requirements
• contribute to financial bids and estimates
• establish a budget and allocate funds in accordance with statutory and organisational requirements
• communicate with other people including:
o reporting on financial activity and making recommendations
o identifying and prioritising significant issues
o ensuring managers and supervisors are clear about budgets.
• analyse the effectiveness of existing financial management approaches including reviewing financial management software, managing risks of misappropriation of funds, ensuring systems are in place to record all transactions, maintaining an audit trail and complying with due diligence.
Place/Location where assessment will be conducted
1. An existing Business Plan that can be linked in context to the provided tasks (Must be provided by or with the assistance of the RTO)
2. Internet access
3. Pen and paper
5. Relevant workplace documents or an existing budget to assist evaluation and adjustment of budgets.
Instructions for assessment including WHS requirements
1. Read the following tasks and address each criteria.
2. There are spreadsheets relevant for each task which form the basis to identify, evaluate or amend data as outlined for each task.
3. You are required to submit the completed spreadsheet with all details outlined for each task.
Go to the Spreadsheet Activity 1 Support Material and calculate each of the following values in the orange boxes using the correct formulae:
1. Net Cash Flow from Operations
2. Net Cash Flow from Investing Activities
3. Net Cash Flow from Financing Activities
4. Net Increase in Cash
5. Cash at End of Year
A. Go to the Spreadsheet Activity 2 Support Material. On the first tab “Departments” you will find an overview of the existing budget figures for the 2014/15 financial year.
B. Use the template “Draft Budget” on the second tab of the spreadsheet and perform the calculations below using basic formulas.
C. Your forecast needs to include the Dollar Figures and the % values for all areas affected by changes outlined below.
D. The % values must be listed for each expenses item shown in the Expenses Analysis for each department.
You have met with the department heads of Hotel Futura and the following details have been discussed to prepare your draft budget for 2015/16:
1. Rooms Division:
a. Due to renovations the rooms available have been reduced to 90%.
b. The forecasted occupancy rate has been adjusted to 78%.
c. The revenue per available room needs to be increased to $178.00
d. The COGS will decrease to 13%
e. Staff costs need to be increased to 22% to allow for increases in superannuation and awards.
f. Other Expenses need to increase to 9% to cover electricity price rises.
a. The food revenue will be increased by 15% due to a new marketing campaign and specialty menus
b. The beverage revenue will increase by 8%.
c. Staff costs need to be adjusted to 34% of the food budget.
d. Other Expenses will need to be increased to 7%.
The banquet Division will be directly affected by the new marketing campaign which has been directed at daytime seminars and corporate functions. For this purpose the kitchen has received specialised equipment including multiple combi steamers, hold-o-mats and sous-vide equipment.
a. The new food revenue budget was set at $1,600,000.00 (1.6 Million) and the beverage revenue was increased by 55%.
b. The COGS will increase to 29%.
c. The staff costs have been reduced to 19%.
d. Other Expenses will need to increase by 14%.
4. Room Service:
a. The room service revenue from food needs to be increased by 15%.
b. Due to a different system to clear floors and organise delivery, the staff costs will be reduced to 34%.
5. Mini Bar:
The mini bar budget remains unchanged and increased staff costs are absorbed through different processes.
6. Bar Budget:
a. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
b. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar and happy hour specials.
c. Staff costs will need to be adjusted to 32%.
d. Other Expenses need to be increased to 11%.
A. Go to the Spreadsheet Activity 2 Support Material.
Collate the totals for the actual 2014/15 and the draft budget 2015/2016 in the tab “comparison”.
1. How do the figures compare overall?
2. Which areas would need to be investigated?
B. Go to the tab “Draft Budget”, create a copy and move this copy to the end. Rename and label this copy “Future Potential” and manipulate the scenario below:
Due to renovations for your 2015/16 budget as outlined in Task 2, the number of available rooms had been limited to 90%.
1. How will your budget for 2016/17 be affected once the number of available rooms will be 100% and the occupancy rate will increase to 84% and the average room rate increases to $185.00 per room and “Other Expenses” increases to 14%?
1. Given the suggested changes in the operation for the 2015/2016 as set out in Task 2, discuss which departments you will need to liaise with in terms of financial and HR impacts. Which details will you need to discuss for a successful implementation of the budget?
2. Which factors need to be considered when the hotel reaches full accommodation capacity based on the future forecast for 2016/17?
Given the modernisation of the operation, the director in conjunction with the F&B director have approached you to prepare for the purchase and implementation of a new stock control system linked to a POS to enhance security provisions and prevent theft. Research a suitable system and provide details for the features and a cost estimate including ongoing costs for maintenance or subscriptions. Attach all information you have obtained to this assessment.