BSBFIM501: Metharom Has Been Hired To Build A Single-Story Home: Manage Budgets And Financial Plans Assignment, VU, Australia

Assessment 1: Create financial plans. 

Metharom has been hired to build a single-story home in Northcote, Victoria for Mr. Kavi Albif. Metharom has informed the client that the building works will take 35 weeks (approximately 8 months) and will begin on 03/03/16. Mr. Albif has made his initial deposit of 10% of the sale price. (Refer to appendix A for additional information regarding the project) To manage the finances for this build, you will need to forecast cash flow and prepare a plan for money management that includes the following information:

a) A financial plan for the build that shows when payments will be received from the client and the work that those payments will need to cover.

b) A contingency plan, in case of unforeseen circumstances

c) A process for monitoring spending on-site, including the frequency of monitoring

Assessment 2:

Give a presentation to the site supervisor and the work team for the site. Give a presentation to the site supervisor (to be played by your assessor) and the work team (your classmates) of your documentation from assessment 1. You will need to bring feedback forms for the team to provide responses to the financial plans.

a) Accurately explain the plans and the intended outcomes

b) Detail how you will be available to assist the team regarding finances

c) Negotiate documents that will be used on-site to monitor the spending occurring on-site

d) Where the team suggest information that has not been included in your plans, you will need to add this information as an addendum to the plan

Assessment 3: Complete variance analysis and manage finances

With reference to the data provided in the appendices, prepare a report for upper management that includes the following information:

a) Calculation of the variance in terms of both dollars ($) and percent (%) (this may be entered into the table provided)

b) Implementation of a contingency plan that will prevent overspending throughout the rest of the build

c) Recommendation of three improvements to the financial policies to improve financial management (refer to the appendices for additional information)

Assessment 4: Keep records of payments made to the company, as required by the ATO.

The accounts team has cleared several payments that have been made to the company, as described in appendix D.

As the administration manager, you will need to do the following:

a) Input the invoices into the cash receipts book (Appendix E) as required by the ATO.

b) Develop and implement four improvements to the financial policies regarding record keeping.