BSBFIM601 Assessment 1 Short Answer Questions
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
BSBFIM601 Assessment
Assessment 1: Short Answer Questions
Question 1
Explain the requirements of financial probity.
Financial probity is the evidence of ethical behaviour, integrity, uprightness and unflinching honesty with regard to financial management. A good system that supports financial probity manages and monitors the organisation, keeping an eye on the success and failure of operations and interactions. It involves precise record keeping, generation of accurate and timely financial statements (balance sheets, income and expenditure statements, cash flow statements, financial ratios etc) plus systems, budgets, forecasting and procedures that support viability.
Question 2
Personnel working in the financial services division of a company need to understand and be able to explain principles of accounting and financial systems (Accounting and Financial Information Management Systems—AIS and FIS). What are accounting and financial systems and how do they assist business operations?
Accounting and Financial Management System provides a complete set of tools to help manage and streamline your financial operation. It automates everyday accounting tasks such as maintaining ledger and journal entries, supporting tax calculations, and enabling multicurrency transactions.
Question 3
List and explain at least 4 forms of legislation and conventions (Australian, international and/or local) that could apply to financial management in the organisation.
The Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act)is the Australian Government's central piece of environmental legislation
whole of government policy aims to move Australian Government agencies to digital recordkeeping for efficiency purposes
Under the policy, the majority of records should be created and managed digitally, and where possible, incoming paper records should be scanned so new paper files are not created. Records that are created digitally after2015 will be accepted for transfer
The standard establishes the criteria that Australian Government digital services must meet to ensure government services are simpler, faster and easier to use.•
This strategy provides the framework to ensure online government services are available when needed and that personal and business information provided to government is protected. The document lists guiding principles, objectives and strategic priorities of cyber security policy program me
the policy explains the Government’s vision, goals and actions in the use of cloud computing. Agencies are required to use cloud services for new ICT services when replacing any existing ICT services, whenever those cloud services are fit for purpose, offer the best value for money, and provide adequate management of risk to information and ICT assets.•
Agencies are to evaluate and select cloud services commensurate with the requirements of the information.
Question 4
Explain the requirements for each of the following:
Goods and Services Tax
Company Tax
PAYG
Different kinds of tax
There are a number of different taxes, which businesses have to pay in Australia. Let's start with income tax. This is the tax you pay on any money your business earns. You'll need to complete a form telling the ATO how much money your business has made. The form is called a tax return and it has to be lodged with the ATO after the 30th of June each year.
This is a tax of 10% on most goods and services sold or traded in Australia. You have to register for GST if your business 'turnover' exceeds a certain amount each financial year. each financial year. If you're a taxi driver, you must register for GST regardless of
your 'turnover' amount
This is a tax of 10% on most goods and services sold or traded in Australia. You have to register for GST if your business 'turnover' exceeds a certain amount each financial year. If you're a taxi driver, you must register for GST regardless of your 'turnover' amount.
Well, if you are registered for GST your customers or clients pay the cost you charge plus 10% when they pay the bill. This 10% is the GST. You then send these 10% GST amounts to the ATO usually four times each year. You must complete and lodge a form called a business activity statement, also known as BAS when sending the GST money to the ATO. The ATO sends you the BAS form for you to complete. You can, of course, ask a registered tax or BAS agent to help you do this. All BAS agents must be registered with the Tax Practitioners Board. To check their registration, search the online register. Just remember ,that you're responsible for ensuring all the information is correct.
Record keeping
Good record keeping makes it easier to meet your tax obligations and makes it easier for you to understand how your business is doing, and to make good business decisions. It also helps you complete your business activity statements and tax returns. You need to keep receipts and other evidence of all sales and purchases you have made for the business. You also need to have tax invoice sand all documents relating to GST, wage and salary records. You must keep records of the purchase, sale and other costs of any business assets like land and buildings or office equipment. And remember to keep all records relating to income tax returns, business activity statements, FBT returns, and contributions to employee superannuation. By law you must keep these records for at least five years, either on paper or electronically. And keep your records secure
Assessment 2: Case Study
You work as financial manager of ABC Company and you need to have all of the organisation’s budgets in place by the beginning of the last quarter in the financial year. All the financial figures and policies and procedures have been provided to you.
Complete the following tasks.
1. Assess and read the budgeting and financial planning procedures to familiarise yourself with the responsibilities and procedures of the budgetary process. Using this document as a guide, prepare a plan and time line with critical dates for preparation of the organisation’s budgets for the next financial year (2016/17). Assume that it is now early March 2016.
According to the budgeting and financial planning procedure I need prepare a plan about organization’s budgets for the next financial year which is 1/7/2016 to 30/6/2017.assume that it is now early march2016.
According to the budgeting and financial planning procedures ABC Company’s budget committee consists of the finance manager business operations manager human resources manager marketing manager sales manager and customer service manager, as a financial manager of ABC Company I need manage financial and produce budgets ,make sure all the department working together to achieve goals 。
2016-/2017 key budget date |
Key budget tasks |
May -August |
Budget office prepares draft budget principles and timeline Principles will consider the strategic plan ,Ed plan, |
June- August |
Planning document preparation work Budget office to calculate 2016-2017 contractual and mandatory obligations and prepare preliminary budget postilion.
|
Fri August 13 |
Present to finance committee of board |
Fri oct 11 |
Meeting with various departments to discuss various budgets for this year |
Tues Nov 14 |
Budget forum – update of preliminary position |
Tues Nov28 |
Release of preliminary budget position, draft budget principles 2016-2017 and budget template package to budget account manager for preparation of 2016-2017 budget submissions. |
Dec 7 |
financial manager’s presentation 20 mins presentation and 20 mins for answer questions . |
2. Access and read the company business plan. Note the business goals that are listed to maintain financial stability. Put the financial information into a spreadsheet and prepare a histogram that clearly shows the financial plan for the next 5 years. Use the histogram and the supporting dot-points from the business plan to promotes the direction that future budgets will need to take.
Next 5 years |
2017 |
2018 |
2019 |
2020 |
2021 |
income |
150000000 |
172500000 |
198375000 |
228131250 |
262350937 |
expenditure |
127500000 |
146725000 |
168618750 |
193875000 |
222998297 |
profit |
22500000 |
25775000 |
29756250 |
34256250 |
39352640 |
reinvest |
16875000 |
19331250 |
22317188 |
25692188 |
29514480 |
3.Access and read the financial reports. Which have been collated from the organisation’s financial system. Using these reports, prepare a report on the organisation’s current financial position to guide the planning for budget preparation. This report needs to:
· Demonstrate analysis of the net profit margin, net profit ratio, cashflow return on assets and return on owner’s equity ratio for 2014/15
· Demonstrate horizontal analyses of the areas of the business that have the greatest impact on the business’s profit and loss
· Identify major variances in the profit and loss budget and explain the likely impact on the business’s annual performance
· Show the organisation’s current position in relation to the previous years by summarising the cashflow trends
· Contain a list of recommendations for ongoing maintenance of financial viability
3. Prepare preliminary 2016/17 budgets for the whole organisation that align with the business plan objectives that will set a framework for the budget committee to use through the budgetary development process. The base information, worksheets and underlying assumptions for each preliminary budget have been provided. It is preferable to develop the budgets using spreadsheet software. The budgets that you need to prepare include:
· A forecasted cashflow budget for the 2016/17 financial year
· A forecasted profit and loss budget for the 2016/17 financial year
· A forecasted balance sheet as at 30 June 2017
4. Prepare a risk management plan to ensure that the risk of funds misappropriation and discrepancies is minimised. This risk management plan should identify the internal controls relating to funds misappropriation and discrepancies.
5. Market position
6. BizOps offer quality, high-end, innovative and exclusive consumer products. We
7. provide a quality service to our customers, focusing on ‘green’ solutions. We
8. participate actively in trade fairs to ensure we have the latest high-end consumer
9. products available for our customers.
10. Unique selling position
11. Our distribution of retail outlets across Australia allows us to provide the personal
12. level of service customers expect with exclusive products, but we also provide
13. service through online and phone stores in each state. Our customer service is
14. knowledgeable and friendly. Were ward our customers for their loyalty.
15. Anticipated demand A large number of customers purchase our lower priced
16. items, valued at $500–750. We sell approximately 16,000 items in this price
17. range every month across our 150 stores. Our large corporate clients purchase
18. on average twice a year, spending approximately $10,000–15,000 per purchase.
19. Our VIP individual customers (approximately 1,000 nationally)purchase on
20. average one larger/high-end item per year and between 5 and 10 lower priced
21. items. Their spend averages to approximately $10,000 per annum
Preventing and detecting possible misuse of funds•BizOpsis committed to the highest standards of accountability and responsibility. An Office of the Inspector General aggressively investigates and audits any inappropriate use of grants. •The measures are as follows:•Overall approach to Grant Risk Management: These risk assessments inform specific risk mitigation measures, including for fraud risks, grant-by-grant. How this is done in practice is described in a comprehensive Grant Management Assurance Framework, that can be summarized as follows:•Up-front capacity standards and enforcement for significant implementer
The Qualitative Risk Assessment, Action Planning and Tracking Tool (‘QUART’) According to the Global Fund As grants are being implemented, the Secretariat’s grant management teams routinely review 19 risk areas grouped in 4 categories for each important grant. As the schematic below illustrates, 20 of the 19risk areas directly cover fraud and misuse: “Fraud, Corruption, or Theft of Global Fund Funds” and “Theft or Diversion of Non-Financial Assets.” •Implementation Arrangement Risk Analysis: The QUART is complemented by an analysis of the various entities implementing the grant. Building on the knowledge obtained during the due diligence carried out prior to grant signing described above, the main implementers’ actual performance on the key identified risks, and the reliability of the assurances around those risks, are assessed and mitigation actions are revised as necessary.
Assuring Quality in Risk Management• Specific fraud risk related measures In addition to the general approach to grant risk management described above, with respect to the specific risks of fraud and misuse of funds the following is relevant:•Local Fund Agent attention to fraud risk• Overhaul of Fund’s financial systems and processes •Codes of Conduct for recipients and suppliers• Learning from OIG audits and investigations• Fraud in Procurement• Drug Theft and Counterfeits •Anti-money laundering• Vetting individuals and entities managing grant funds• Key Mitigation Measures for Portfolios Exhibiting High Risk of fraud .
Key Mitigation Measures for Portfolios Exhibiting High Risk of Fraud•
Portfolios restructured for simplification•
Fiscal Agents•
Direct Contracting with External Auditor•
Zero Cash Policy• Engaging with Supreme Audit Institutions and Accountancy Organization
22. Assess and read risk management policy and risk management procedures. Identify and assess key financial risks to the organisation in achieving its objectives in the 2016/17 financial year. Develop a risk management plan, suing the template below, with appropriate contingency responses for the factors that are identified as high risk (at least 2). The risk management plan should also contain contingency responses in the event that identified risk controls will not be sufficient to manage the issues. Ensure that suitable triggers are identified to determine when contingency responses should be implemented.
BizOps offers high quality, high-end, innovative and exclusive consumer products. We provide excellent service to our customers and focus on "green" solutions. We actively participate in trade fairs to ensure that we provide our customers with the latest high-end consumer products. Unique Sales Locations Our distribution of retail outlets across Australia enables us to personalise our service to customers with exclusive products, but we also offer services through our online store and telephone store in each state. Our customer service is knowledgeable and friendly. Is Ward for customer loyalty
Expect demand for a large number of customers to buy our low price product, worth $500- $750. We sell about 16,000 items a month in this price range across 150 stores. Our large-company customers make an average of two purchases per year and spend about $10,000 to $15,000 per purchase. Our VIP individual customers (about 1,000 nationwide) buy an average of one larger/high-end item per year and five to 10 lower-priced items. They spend an average of about $10,000 a year.
Pricing strategy BizOps applies standard industry markups to low-priced items. Our high-end products are often unique in the market and are priced accordingly based on our purchase price and knowledge of the market. Value to Customers BizOps Individual customers see us as a destination for quality products with a "green" orientation. Our corporate customers trust us to deliver high quality products and services that will exceed expectations and impress their customers. Our VIP customers are discerning and have a responsibility to keep them informed of the latest exclusive consumer products. Growth potential BizOps is targeting 15% annual revenue growth. Part of this growth will come from technological improvements and innovation, resulting in better products with less environmental impact. When that happens, our environmentally conscious customers will want to upgrade their products. As Australia's population continues to grow and wealth accumulates, growth will occur naturally. Residential is an area of furniture that Australians are very proud of, with an increasing number of exclusive products.
2022-08-23