BSBFIM601 Manage Finances - Assessment Task 4

ASSESSMENT TASK 4: REVIEW PROJECT

This assessment task requires you to review and analyse the draft Profit and Loss Statement and associated account ledgers for Grow Management Consultants for the 2019 financial year, identify and fix any errors you find, keeping an audit trail of your changes and then compare financial results with the budgeted amounts. You must then prepare a report to summarise your analysis and make recommendations on the effectiveness of financial management systems.

1. Review the draft profit and loss statement. You must ensure that the draft Profit and Loss Statement is accurate, based on the account ledgers provided. To do this:

1. Review each entry on the Profit and Loss Statement, comparing them with any provided account ledgers in the other excel sheets.
2. Ensure any entries into the ledgers are relevant to the account it has been put into.
3. Where any mistakes are identified, update the ledger page and the corresponding entry on the profit and loss statement (where applicable) and highlight your changes in red text.
4. Keep an audit trail of your changes, by writing in the changes you make at the bottom of each page in the space provided.
5. Ensure the profit and loss statement is accurate and shows correct figures.

2. Now that you have fixed the errors in the Profit and Loss Statement, analyse the information and compare it with projected results from the budget you prepared in Assessment Task 2. Write a report, using the Financial Review Report template provided, that you can provide to the Principal Consultant, covering the following items:

1. Overall performance of the year.
2. Calculation of variation in actual versus budgeted amounts for each income source.
3. Calculation of variation in actual versus budgeted costs, focusing particularly on conference costs. Include in your report any information or reasoning about why there are variances.
4. A summary of the recommended revisions to the budget in 2020 to ensure financial viability of the organisation.
5. An outline of significant issues in the financial statements, comparing these financial statements to the year prior.
6. Provide advice on any allowances that should be made for contingencies in the next year’s budget, including dollar amounts, and rationale.
7. A summary of the effectiveness of the financial management processes and any changes that should be made to ensure ongoing financial viability.