What you have to do
This assessment consists of financial questions to be answered adequately to demonstrate your knowledge and understanding of the concepts of Preparing, monitoring and managing budgets in order to be deemed competent in this unit.
The following pages detail five (5) tasks required to be completed in order of Task 1 to 5.
TASK 1 – Prepare a source of information memo report – 10 marks
TASK 2 – Prepare profit and loss budget – 30 marks
TASK 3 – Prepare a cash flow budget – 20 marks
TASK 4 – Monitor budget & manage variances – 20 marks
TASK 5 – Reporting and keeping records – 20 marks
This is a graded unit. Your result is based on the evidence you provide to meet the criteria for competence as specified in the unit of competency and grading criteria. You will receive a result of Achieved Competency (AC) or Not yet Competent (NC).
You may need to SAVE your work into a Zipped File with both Word and Excel documents.
Information on how to submit your assignment is located on the OLS OTEN website.
CASE STUDY SCENARIO
Places To Go Travel
The management of Places To Go Travel, a retail travel business, has planned to open a new branch, a second travel agency located in a large retail/office complex in a suburban residential and commercial hub. The new office will be known as ‘Places To Go Travel Huntington’
It is expected that the new agency will be selling both domestic and international leisure travel to local shoppers and residents. There are also a number of small corporate accounts who have signed agreements to book with the new agency, which will contribute much needed income for the short to long term. It is predicted that eventually additional various corporate accounts will be booking with the agency, once it has become well established.
You are one of Places To Go Travel’s top sales performers, and also a senior team leader in the parent travel office. You have been offered a promotion to Travel Manager and asked to run the new agency. This is an acknowledgment of your superb leadership & sales abilities.
The Travel Manager role also requires responsibility for preparing and managing the agency’s budgets. As part of your job role you will need to assist with staffing, as well as negotiating expenses and costs for the running of the new office. Staff for the new office will include you, the Travel Manager (selling role), another senior consultant, one junior corporate consultant and one junior leisure consultant. You will be able to liaise with Sally Morgan in HR in regards to wages, the financial controller Mary Tran in regards to some accounting/legal fees and coordinate negotiated rent with the landlords Ascot Holdings. Additionally, in the first 3 months you will have another experienced manager Peter Lee to assist with operational advice and canvassing for new corporate accounts, however he is only on loan from the parent company.
As you are new to managing, the operations manager, Howard Min, has provided you with the brief for planning and preparing the new office’s budgets to organisational standards as follows:
Source information and data for use in preparing budgets
Prepare budgets in accordance with organisations policies and procedures
Monitor budgets evaluating performance
Manage budget variances and make decisions for adjustments
Report to management and staff regarding budget outcomes.
TASK 1 – Prepare a memo report – 10 marks
Prepare a memo report for the operations manager on ten (10) sources of information you have referred to in preparation for budgeting. Explain for each the reason you used these sources. You will need to consider how you will find information, data, figures and statistics that will have an effect on the running of the business; all income/revenue and operating costs. Where can you source information or whom can you consult to provide you with the information on; rent essential services, wages, superannuation, taxes, demographics for the area, tourism statistics, customer sales etc?
Places to Go Travel – Huntington Office
Source of information/data for budget preparation: Why consulted?
Internal staff I have consulted in preparation for budgeting are as follows:1.