Reference no: EM132002515

Activity 1 - Answer each question in as much detail as possible, considering your organisational requirements for each one.

1. You have just been taken on in the financial management department of your organisation. You have been told that you need to:
> Plan for financial management
> Establish budgets and allocate funds
> Implement budgets
> Report on finances
Over the next financial year.
For this activity you will have to document your work in your department, demonstrating all of the skills and knowledge listed above.
Firstly, you will have to plan for financial management.
Explain how you did this, including:
> Reviewing previous financial data
> Looking into areas of profit and loss
> Identifying important business dates
> Analysing cash flow trends
> Understanding different tax liabilities
> Deciding if the current financial management software is still suitable.
Next, you will have to establish and implement budgets for the financial year.
Explain how you did this, including:
> Examining previous data
> Estimating new areas of the budget
> Preparing the budget in line with your organisation's policies and protocols
> Distributing budget information to managers and staff
> Removing and minimising opportunities for the, misappropriation of funds
> Working with ageing summaries
> Revising budgets in the case of contingencies
> Maintaining audit trails
> Ensuring compliance of self and others.
At the end of the year, you have to report on the business' finances.
Explain how you did this, including:
> Writing the report in formats and styles approved and required by the organisation
> Highlighting important issues
> Advise on the financial viability of the organisation
> Evaluate the effectiveness of the financial management process used.

Objective - To provide you with an opportunity to demonstrate your knowledge of the foundation skills, knowledge evidence and performance evidence.

Activity 2- Complete the following individually and attach your completed work to your workbook.

The answers to the following questions will enable you to demonstrate your knowledge of:

> 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
> 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
> Reading skills
> Writing skills
> Oral communication skills
> Numeracy skills
> Navigate the world of work
> Interact with others
> Get the work done
> Identify the requirements for financial probity
> Describe the principles of accounting and financial systems
> Explain Australian, international and local legislation and conventions that are relevant to financial management in the organisation
> Outline the requirements of the Australian Tax Office, including Goods and Services Tax, Company Tax, Pay As You Go.