SITXFIN003 Manage Finances Within Budget :
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| Assessment Details | |||||
| Qualification Code/Title | |||||
| Assessment Type | Assessment 2 | Time allowed | |||
| Due Date | Location | SCCM | Term / Year | ||
| Unit of Competency | |
| National Code/Title | SITXFIN003 Manage finances within a budget |
| Student Details | ||||||
| Student Name | Student ID | |||||
| Student Declaration: I declare that the work submitted is my own and has not been copied or plagiarised from any person or source. | Signature: ____________________________ Date: _____/_/_________ | |||||
| Assessor Details | ||||||
| Assessor’s Name | ||||||
| RESULTS (Please Circle) | ☐SATISFACTORY | ☐NOT SATISFACTORY | ||||
| Feedback to student: | ||||||
| *If Student is Not Satisfactory Reassessment Required ☐ Yes ☐ No | Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback. Signature: ________________________ Date: ______/_______/___________ |
| Comment: | |
| Instructions to the Candidates aware of and understand the SCCM’s policy on plagiarism and certify that this assignment is their own work, except where indicated by referencing, and that student have followed the good academic practices noted above. | |
SITXFIN003 Manage finances within a budget describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. It requires the ability to interpret budgetary requirements, allocate resources, monitor actual income and expenditure, and report on budgetary deviations.
For youto be assessed as competent, you must successfully complete two assessment tasks:
Please read through all of the SITXFIN003 Manage Finances Within Budget assessment tasks and related documents carefully before you get started. Ensure that you have everything that you need and seek clarification from your trainer, assessor or workplace supervisor if you have any questions.
| Supporting resources: Supporting resources include templates, journals, workbooks and portfolios which can be used to support you in providing evidence of your competence. Your assessor will provide you with these documents before you begin your assessment tasks. For this unit, the supporting resources comprise: |
Once you have read through the SITXFIN003 Manage Finances Within Budget assessment tasks and are satisfied that you are clear on the requirements and submission dates, complete and sign a Student Assessment Agreement. Your assessor will countersign the agreement and keep it on file. You will find a Student Assessment Agreement in Appendix B of your Hospitality Works Student User Guide or your RTO will provide you with one.
Remember to check your Hospitality Works Student User Guide for information about:
Assessment Task 2: Project
Task summary
This SITXFIN003 Manage Finances Within Budget assessment task requires you to manage finances within a budget for a case study organisation and then report on your findings.
This assessment is to be completed in the simulated work environment in the RTO.
Required
Ensure that you:
Timing
Your assessor will advise you of the due date of these submissions.
Assessment criteria
For your performance to be deemed satisfactory in this SITXFIN003 Manage Finances Within Budget assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor of SITXFIN003 Manage Finances Within Budget prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Assessment Task 2: Project
Complete the following activities.
| You are the café manager of a popular café within the Blue Healer Hotel and Spa. The owner has provided you with the budget for the next quarter and it is part of your responsibility to allocate resources and manage the finances within the budget. The budget has been increased in month three as this is a popular month where lots of visitors stay at the Blue Healer and neighbouring guest houses as there is a music festival on. As such, additional wait staff will be hired on a casual basis and less private catering jobs will be booked in as the café will be at its peak. Additional information: |
| Review the following: Look at the cost of sales figures related to food and beverage purchases which is the food and beverage budget that is allocated to you. Do some research and source some local meat suppliers in your area and check out the costs of menu items you have planned for previously in the past, or meals you are familiar with and see what that 7% could look like and the impact over a three-month period. Bring this information with you to the meeting in the next activity step to provide recommendations to the owner. Think about how you can work effectively with the budget allocated to you and the changes you could make to manage the finances more effectively. Make notes on your research and findings for use in the following activity. Answer The following documents were thoroughly studied This document is Café Quarterly Budget for the unit SITXFIN003 Account Month 1 Month 2 Month 3 Income Food sales 36,000 36,000 52,000 Beverage sales 24,000 24,000 40,000 Catering fees 10,000 10,000 5,000 Total income 70,000 70,000 97,000 Cost of sales Food purchases 15,000 15,000 24,000 Beverage purchases 5,000 5,000 12,000 Total cost of sales 20,000 20,000 36,000 Gross profit 50,000 50,000 61,000 Operating Expenses Wages 17,000 17,000 21,000 Insurance 600 600 600 Utilities 2,000 2,000 2,000 Rent 5,000 5,000 5,000 Marketing 2,000 2,000 2,000 Phone 100 100 100 Live music 500 500 500 Repairs and maintenance 500 500 500 Total operating expenses 27,700 27,700 31,700 Net profit/loss 22,300 22,300 29,300 past information of café operation Last month’s cost of sales Last month’s food and beverage budget: $20,000 Supplier Category Cost Fresh Farms (meat) Food $8,500 Donna’s wholesale pastries (cakes and pastries) Food $2,000 Wild Beans (coffee beans and flavoured syrups) Beverages $4,000 Fizzy Lizzy (soft drinks) Beverages $1,200 Fromo Fruits (fruit for smoothies) Beverages $1,000 Byron’s Baking Supplies Food $500 Coles (milk and sundries) Food $1,500 Ferguson Family Farms (vegetable crates) Food $2,000 Total $20,700 Food sales $14,500 Beverage sales $6,200 The increase of 7% in the cost of meats from fresh farms will increase the cost of meat to $9,095 increasing the cost by $595. This increase in the cost of food supplies is likely to force the café to increase its food budget as well as the amount of money to be allocated to the purchase which is shown in the fund allocations shown below in this document. |
| Now that you have reviewed all the information, have a meeting with the manager (your assessor) at the date and time advised to discuss any concerns, priorities and changes you would like to make before you allocate the funds. Review the new suppliers you have sourced with your assessor. During the meeting, you will need to demonstrate effective communication skills including: Answer Me: Sir, I am very glad that you were able to allocate your valuable time for this meeting. To, make it precise and short I want to start by informing you about the allocation of funds of the company and the suppliers of our food products. Owner: Please go ahead. Me: As you are already familiar with the current business condition. The company has invested heavily on infrastructures and the café is also in dire need of expanding cost. The cost of materials as well as the supply is being increased very drastically as a result we are compelled to find the new source of suppliers for us. I have collected the potential suppliers that can be contacted by us to supply us the food materials. I want to ask for your permission to proceed with the plan that I have devised. Owner: I would like you to study the matter more seriously and I believe in your rational judgement please proceed with what you have planned. Me: Thank you for your time I will keep on reporting to you. |
| Using the Café Quarterly Budget template – Fund allocation page, allocate the funds for the quarter to the relevant areas and what you will purchase from existing or new suppliers. Make notes in the relevant column to support your choice and rationale. Add or delete rows as necessary and apply cell formatting and the use of formula functions as necessary. Submit to your assessor. Answer The fund is allocated for the three months as follows: Fund allocation $20,000 $30,000 $35,000 Food Type Month 1 Month 2 Month 3 cakes $500 $1,000 $1,000 Fruits $500 $3,000 $2,500 Bakery $1,000 $3,000 $1,500 Fresh farms $7,000 $12,000 $11,000 Pastries $4,000 $3,000 $5,000 Milk and sundries $2,000 $2,000 $2,000 Vegetables crates $2,000 $1,000 $2,000 Total $17,000 $25,000 $25,000 Beverages Type Month 1 Month 2 Month 3 Soft drinks $2,500 $1,000 $2,000 Smoothies $250 $500 $2,000 Milk $500 $500 $2,000 Flavored syrups $2,000 $3,000 $4,000 Total $3,000 $5,000 $10,000 Combined total $20,000 $30,000 $35,000 |
| Briefly meet with your assessor to discuss the resource allocations and the planning for the next quarter in relation to fresh produce, reduction of wastage and recipe variation. Make sure that you discuss the importance of sticking to the budgeted allocations and discuss ways that food wastage can be avoided to ensure the budget is met. During the meeting, you will need to demonstrate effective communication skills including: Answer Me: Welcome everyone. Today we are all gathered here to discuss about the newly drafted budget of the company fort eh coming three months. The section in which the budget is separated and the amount of money allocated is all in detail described in the budget. However our main concern for today’s meeting is to find ways to minimize the food waste in the café as per the company requirement so that the budget can be properly implemented. Participant: Thank you. Can you please brief us about the Ways we can follow to avoid food wastage in the cafe. Me: We can use effective techniques for reduction of food waste we should increase the efficiency and skills of the cooks to minimize the food waste. Also the quantity of foods brought in the café on daily basis should be monitored on a daily basis. |
| It is the end of month 1. You have kept to the budget and the funds have been allocated as you planned for. Using the relevant accounting software and the exact figures from your fund allocation document, enter the expenses you have incurred over the first month exactly as they are represented in your fund allocation page of your spreadsheet. Print a report of the entries or take a screenshot and submit to your assessor. Answer The expenses incurred over the first months for food are as follows: Fund allocation $20,000 Food Type Month 1 cakes $500 Fruits $500 Bakery $1,000 Fresh farms $7,000 Pastries $4,000 Milk and sundries $2,000 Vegetables crates $2,000 Total $17,000 Beverages Type Month 1 Soft drinks $2,500 Smoothies $250 Milk $500 Flavored syrups $2,000 Total $3,000 Combined total $20,000 The operating expenses incurred over the period of first month is: Wages $17,000 Insurance $600 Utilities $2,000 Rent $5,000 Marketing $2,000 Phone $100 Live music $500 Repairs and maintenance $500 Total operating expenses 27,700 |
| It is the end of month 2. You have kept to the overall budget but funds have had to be rearranged in the following ways: Enter the expenditure figures into the accounting software as outlined in your fund allocation document but consider the information above and work out the variances. Print a report of the entries or take a screenshot and submit to your assessor. Answer The expenses for the second month are as Operating Expenses Wages 17,000 Insurance 600 Utilities 2,000 Rent 5,000 Marketing 2,000 Phone 100 Live music 500 Repairs and maintenance 500 Total operating expenses 27,700 The actual fund allocation after the variances are as: Fund allocation $30,000 Food Type Month 2 cakes $900 Fruits $3,000 Bakery $3,000 Fresh farms $12,000 Pastries $3,000 Milk and sundries $2,000 Vegetables crates $1,100 Total $25,000 Beverages Type Month 2 Soft drinks $1,000 Smoothies $500 Milk $500 Flavored syrups $3,000 Total $5,000 Combined total $30,000 |
| It is the end of month 3. The following has happened: Due to recent environmental conditions, less people came to the local area than planned for and many people cancelled their accommodation at Blue Healer. Some of the food for the first week had already been ordered and as such – there was a lot that went to waste. The figures have been calculated for the month based on 4 weeks. $6000 was spent on food in preparation for the increased numbers but during the first week there was a total waste of 35%. Many items were able to be frozen, and as such the budget can be amended for the next quarter to try and recoup some of the losses. The following three weeks the same amount was spent as budgeted for the two prior months, being $3,750 per week and a total of $6000 for the month was spent on beverages. Enter the expenditure figures into the accounting software as outlined in your fund allocation document but consider the information above and work out the variances. Print a report of the entries or take a screenshot and submit to your assessor. Answer The expenses for month three are: Operating Expenses Wages 21,000 Insurance 600 Utilities 2,000 Rent 5,000 Marketing 2,000 Phone 100 Live music 500 Repairs and maintenance 500 Total operating expenses 31,700 The fund allocated as per variances is as Fund allocation $35,000 Food Type Month 3 cakes $1,000 Fruits $2,500 Bakery $1,500 Fresh farms $11,000 Pastries $5,000 Milk and sundries $2,000 Vegetables crates $2,000 Total $25,000 Beverages Type Month 3 Soft drinks $1,000 Smoothies $1,000 Milk $1,000 Flavored syrups $3,000 Total $6,000 Combined total $35,000 |
| Develop an actual budget using the past information and your financial records you complied and submitted in the previous activity steps. Make a new page in the Café Quarterly Budget spreadsheet and name it ‘Actual Budget’. Assume the following information: Submit to your assessor. The variances of 10% are not considered unusual The actual income is as follows The operating expenses are all correct Account Month 1 Month 2 Month 3 Income Food sales 36,000 36,000 52,000 Beverage sales 24,000 24,000 40,000 Catering fees 10,000 10,000 5,000 Total income 70,000 70,000 97,000 Cost of sales Food purchases 17,000 25,000 25,000 Beverage purchases 3,000 5,000 10,000 Total cost of sales 20,000 30,000 35,000 Gross profit 50,000 40,000 62,000 Operating Expenses Wages 17,000 17,000 21,000 Insurance 600 600 600 Utilities 2,000 2,000 2,000 Rent 5,000 5,000 5,000 Marketing 2,000 2,000 2,000 Phone 100 100 100 Live music 500 500 500 Repairs and maintenance 500 500 500 Total operating expenses 27,700 27,700 31,700 Net profit/loss 22,300 12,300 30,300 |
| Compile a report to the owner about what has occurred over the past three months. You will also need to conduct some research when writing this report as outlined below. Submit in the timeframe as provided to you by your assessor. Include the following in your report: Make sure you use correct budget terminology and your report is neatly presented, clear and concise with the use of statistical representations. Use the Budget report template to guide your work. Submit to your assessor. Answer Budget report Introduction. The main purpose of this report is to find the allocated budget of the Blue Healer café. This report focuses on the efficient and effective allocation of budget to the operation of the company. This report outlines the sections and the food as well as beverages in which the budget was allocated. The evaluation of budget as well as the variances occurred in the budget are also included in this report along with the necessary recommendations for the future. Body The allocation of funds and the budget is attached below. The budget throughout its implementation was strictly followed by each and every members of the company however there were variances that arise din the course of implementation of the budget. The issue mainly about the food wastage was one of the major issue causing the variance in the budget. Also some of the variances in the allocated fund of one was managed by cutting off funds from the other food material in such a way that it does not affect the overall functioning of the company. The budget of the café was allocated as: The variances of 10% are not considered unusual The actual income is as follows The operating expenses are all correct Account Month 1 Month 2 Month 3 Income Food sales 36,000 36,000 52,000 Beverage sales 24,000 24,000 40,000 Catering fees 10,000 10,000 5,000 Total income 70,000 70,000 97,000 Cost of sales Food purchases 17,000 25,000 25,000 Beverage purchases 3,000 5,000 10,000 Total cost of sales 20,000 30,000 35,000 Gross profit 50,000 40,000 62,000 Operating Expenses Wages 17,000 17,000 21,000 Insurance 600 600 600 Utilities 2,000 2,000 2,000 Rent 5,000 5,000 5,000 Marketing 2,000 2,000 2,000 Phone 100 100 100 Live music 500 500 500 Repairs and maintenance 500 500 500 Total operating expenses 27,700 27,700 31,700 Net profit/loss 22,300 12,300 30,300 The fund allocated for the budget are as: Fund allocation $20,000 $30,000 $35,000 Food Type Month 1 Month 2 Month 3 cakes $500 $1,000 $1,000 Fruits $500 $3,000 $2,500 Bakery $1,000 $3,000 $1,500 Fresh farms $7,000 $12,000 $11,000 Pastries $4,000 $3,000 $5,000 Milk and sundries $2,000 $2,000 $2,000 Vegetables crates $2,000 $1,000 $2,000 Total $17,000 $25,000 $25,000 Beverages Type Month 1 Month 2 Month 3 Soft drinks $2,500 $1,000 $2,000 Smoothies $250 $500 $2,000 Milk $500 $500 $2,000 Flavored syrups $2,000 $3,000 $4,000 Total $3,000 $5,000 $10,000 Combined total $20,000 $30,000 $35,000 Recommendations Based on the current budget and the fund allocated by the management for the operations of the company there are certain changes and ways for better functioning of company finances. The result obtained after evaluating budget for three months also sows the amount of food waste and the un precented growth in demand and reduction in demand for certain food products. There must be some reserves for purchasing additional food products in the café so that the demand can be fulfilled and the customer pressure for certain food products can be handled. The expenses for such products should be managed from the less demanded food product in the café and the money for purchasing the less demanded product should be cut off and should be used to purchase highly anticipated product there should the provision for this in the café. |
Assessment Task 2: Checklist
| Student’s name: | |||||
| Did the student: | Completed successfully? | Comments | |||
| Yes | No | ||||
| Review the relevant information and the consult with the owner to assess and discuss budget priorities, concerns and changes prior to allocating funds? | |||||
| During the meeting to discuss the budget and fund allocation demonstrate effective communication skills including: | |||||
| Allocate funds according to the budget and agreed priorities? | |||||
| Consult with your assessor about the resource allocations and the planning for the next quarter in relation to fresh produce, reduction of wastage and recipe variation and stress the importance of budget control? | |||||
| During the meeting with personnel demonstrate effective communication skills including: | |||||
| Monitor financial activities over a three-month period and use accounting software to keep track of financial expenses? | |||||
| Develop an actual budget from the past three month’s activity to provide an accurate and complete picture for the quarter? | |||||
| Identify and report deviations of the projected versus actual budget and discuss impacts? | |||||
| Investigate and report on appropriate options for future budget management to avoid a report of month three’s situation? | |||||
| Outline the benefits and disadvantages of researched approaches? | |||||
| Present the information to the owner using correct budget terminology and in a neatly presented report using clear and concise language with the use of statistical representations and in the timeframe provided to them. | |||||
| Task outcome: | |||||
| Assessor signature: | |||||
| Assessor name: | |||||
| Date: | |||||
| Student Overall Assessment Record Sheet This form is to be completed by the assessor and used 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 Database unless all relevant paperwork is completed and attached to this form. | ||||||||||
| Qualification Code and Title | ||||||||||
| Student Name: | ||||||||||
| Student ID No: | ||||||||||
| Final Completion Date: | ||||||||||
| Unit Code and Title | SITXFINOO3 Manage finances within a budget | |||||||||
| Term Year | Date Assessed | |||||||||
| Please attach the following documentation to this form | Result | |||||||||
| Assessment 1 | ☐Written Questions | ☐S ☐NYS ☐DNS | ||||||||
| Assessment 2 | ☐Project | ☐S ☐NYS ☐DNS | ||||||||
| Final Assessment Result for this unit | ☐C ☐ NYC | |||||||||
| C=Competent NYC= Not Yet Competent S= Satisfactory NYS= Not Yet Satisfactory DNS= Did Not Submit | ||||||||||
| Feedback: | ||||||||||
| Any Adjustment Made to The Assessment: | ||||||||||
| Student Declaration:I declare that this work has been completed by me honestly and with integrity and that I have been assessed in a fair and flexible manner. I understand that the Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these assessment tasks. 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: ____/_____/_____ | |||||||||
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