SITXFIN004 - Assessment Task 2: Budget planning project

Overview

Introduction

Welcome to the Student Assessment Tasks for SITXFIN004 Prepare and monitor budgets. These
tasks have been designed to help you demonstrate the skills and knowledge that you have learnt
during your course.

Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Hospitality Works Student User Guide. The Student User Guide
provides important information for you relating to completing assessment successfully.

Assessment for this unit

SITXFIN004 Prepare and monitor budgets describes the performance outcomes, skills and
knowledge required to analyse financial and other business information to prepare and monitor
budgets. It requires the ability to draft and negotiate budgets, identify deviations, and manage the
delivery of successful budgetary performance. 

For you to be assessed as competent, you must successfully complete the assessment task:

 Assessment Task 2: Budget planning project – You must complete a budget template and
participate in a meeting to discuss the budget. You must then present the budget to your
team.

 
Preparing for assessment

Please read through all of the 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:

 Marketing Budget Briefing Report Template (Assessment Task 2)

 Profit and Loss Reports 2017/18 and 2018/19 (Assessment Task 2)
 Finance Policy and Procedures (Assessment Task 2)
Item 1 of 8
Carefully read the following scenario:
 
Blue Healer is a health resort and convention centre based in the Blue Mountains near Sydney
which has been operating for 5 years. The resort, Blue Healer, is made up of five areas: catering,
spa, meeting rooms accommodation, and administration.
Blue Healer is very popular due to its competitive pricing structure, quality service and state of the
art facilities.
The resort was set up by Paul Byrnes, a burnt out consultant who wanted to provide a service for
corporate executives to retreat from their business for at least a short time. Paul had a lot of
networks and to date most of the business has been from Paul’s existing networks and word of
mouth referrals.  The business has a functional web site.
Sales continue to increase but Paul wants to retire completely and step back from the business.
Thus he has hired a Resort Manager to oversee the business (you). An important aspect of the
business that he wants the Resort Manager to focus on is preparing and monitoring budgets.
Current staff include an Accounts and Administration Manager, Resort Supervisor, Housekeeping
staff, receptionist and contract therapists.
Profit and loss reports show the status of the business’ financial health. 

Item 2 of 8
Determine and confirm scope and nature of the budgets
In your new role, the first step you need to take is to the determine the scope and nature of all of the
budgets that need to be prepared for Blue Healer.
Draft an email to send to Paul to find out this information. Ensure your email includes questions that
will provide all of the information you need to know, as well as identifies internal data sources that
you need to access.
Paul Byrnes (your assessor) will answer your email so that you are able to forget ahead with
developing the required budgets. 

Item 3 of 8
Develop a Marketing Budget Briefing Report
As per the response provided to you, you are to focus on developing a Marketing Budget Briefing
Report.  
Use Marketing Budget Briefing Report Template to develop your report.
Review profit and loss for previous financial years to identify amounts spent on marketing for the
previous two financial years, as well as the information provided to you by Paul
FY18
FY19
Identify at least two sources of information on recommended marketing expenditure that could be
used to inform the marketing budget.
In addition, identify external factors that could impact on the marketing budget. This means that you
should conduct market research on trends within the industry in terms of growth and opportunities
and the types of marketing that similar businesses are conducting.

Item 4 of 8
Send an email to the CEO and Accounts and Administration Manager (your assessor)
The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.
It should introduce and summarise the contents of the attachment.
Attach your Marketing Budget Briefing Report to the email.
Ask for input on your Marketing Budget Briefing Report. The CEO and Accounts and Administration
Manager (your assessor) will provide you with feedback for input into your budget. 

Item 5 of 8
Draft Marketing Budget
You are required to draft a Marketing Budget based on your Marketing Briefing Report and the input
provided from the CEO and Accounts and Administration Manager (your assessor).
To develop the Marketing Budget, you should use the accounting software used by your RTO.
Save this document as draft Marketing Budget and send it via email to the CEO and Accounts and
Administration Manager (your assessor). Your email should clearly outline the options for marketing
expenditure as per your marketing budget, as well as your recommendations for the budget.
You will discuss your draft budget at a meeting with the CEO and Senior Managers. Your assessor
will advise you of the date of the meeting.

Item 6 of 8
Participate in a budget meeting.
The next part of the assessment requires you to participate in a meeting with the CEO (role-played
by your assessor) and the Accounts and Administration Manager (role-played by another student to
discuss the marketing budget. At the meeting, the CEO will attempt to negotiate another option for
the budget. You are required to demonstrate your negotiation skills to persuade the meeting
participants that your budget is the best option.
At the meeting, you will need to:
·           Explain the marketing budget you have developed and the various options.
·           Seek input on the budget.
·           Negotiate for your budget as presented.
During the meeting, you will need to demonstrate effective communication skills including:
·           Speaking clearly and concisely
·           Using non-verbal communication to assist with understanding
·           Asking questions to identify required information
·           Responding to questions as required.
 
Please put your meetings notes below

Item 7 of 8
Revise the marketing budget
Following the meeting, revise your marketing budget to incorporate feedback from the CEO and
Accounts and Administration Manager.
You are to revise your marketing budget and send it out as Final Marketing Budget within 2 days of
holding the meeting. You will be assessed on meeting this timeline.
Save this document as Final Marketing Budget and send it out via email to the CEO and Senior
Managers.
The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.
It should introduce and summarise the contents of the attachment. 

Item 8 of 8
Meet with colleagues to discuss the marketing budget.
The final part of the assessment requires you to meet with colleagues to confirm the Marketing
Budget for the year.
You are also required to introduce the team to the company’s Finance Policies and Procedures. This
is to ensure that they understand financial management responsibilities and reporting arrangements
so that the marketing budget can be accurately implemented and monitored.
These requirements form part of the company’s requirements for finalising budgets.
At the meeting, you will need to:
·           Discuss the overall budget allocation for marketing
·           Discuss the amounts allocated to each marketing activity
·           Provide an outline of the Finance Policies and Procedures.
During the meeting, you will need to demonstrate effective communication skills including:
·           Speaking clearly and concisely
·           Using non-verbal communication to assist with understanding
·           Asking questions to identify required information
·           Responding to questions as required.
·           Using active listening techniques to confirm understanding.
 
Place your discussion notes below