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SITXFIN010 - Task 2 – Skill Test Unit Code SITXFIN010 Unit Description Prepare and monitor budgets Assessment Type Task 2 – Skills Test Assessment Location Level 6, 245-257 Castlereagh Street, Sydney NSW 2000 By submitting this work, I declare that: · I have been advised of the assessment requirements, have been made aware of my rights and responsibilities as an assessment learner, and choose to be assessed at this time. · I am aware that there is a limit to the number of submissions that I can make for each assessment, and I am submitting all documents required to complete this Assessment. · I have organised and named the files I am submitting according to the instructions provided, and I am aware that my assessor will not assess work that cannot be clearly identified and may request the work be resubmitted according to the correct process. · This work is my own and contains no material written by another person except where due reference is made. I am aware that a false declaration may lead to the withdrawal of qualification or statement of attainment. · I am aware that there is a policy of checking the validity of qualifications that I submit as evidence as well as the qualifications/evidence of parties who verify my performance or observable skills. I give my consent to contact these parties for verification purposes. Student ID Student Name Submission Date Assessment Task 2: Project Scenario: You are a project manager for Melbourne Events, an event management company. You need to organise a charity program to raise fund for the Royal Children’s Hospital. The event is planned to take place in Swanston Street, at Melbourne Town Hall, a historic landmark of the city. The Royal Children’s Hospital wants a green-themed event with entertainment, music and dance, along with a charity auction. The event is planned to be held on the first Saturday in December, before Christmas and they hope to sell 350 tickets. As a project manager, you need to organise food and beverages, along with a master of ceremonies, entertainment and music for the night. The charity will source all items for the auction. The program preparation should start from the first week of August. The goal is to conduct a successful event and collect at least 25% of the profit from the event and the auction, for charity. As part of the planning process, you must prepare a series of budgets to help achieve these goals. Part A As a project manager, analyse and prepare the budget information as requested below: PR2.1. For the event, which budgets should be prepared to achieve the goal. Mention the scope and nature of selected budgets. PR2.2. To prepare the budget, you are required to gather the necessary information. Outline six (6) sources of data and the information these data sources will provide to meet the organisation’s requirements. Fill in the template below with the information gathered. Data / Information Data Sources PR2.3. Analyse three (3) internal and three (3) external factors that can impact on the budget. List them and provide a brief description of the positive / negative impact of each. Use the template provided below. Factor Impact Part B: Conduct a discussion session with three (3) stakeholders (Finance manager, Food and beverage manager, event committee chair) to obtain input on the possible budget items. Instructor and two (2) students will act as the stakeholders for the meeting. If there are insufficient student numbers, the trainer will assume multiple roles. PR2.4. Share the information on the type of budget, external and internal factors affecting the budget and obtain input on the ideas and/or any concerns/missing areas to cover in the budget. Gather the following input from the stakeholders: · Finance manager: Key performance indicators to be used in the budget to measure its performance. · Food and beverage manager: How to account for significant price movements for certain commodities, if any. · Event committee chair: Objectives to be achieved. Use the following template to gather the input: Suggestion / Input on budget planning Input by Part C For this part, use MS Excel for calculating and preparing the budget. Assume you have conducted research on the available vendors/suppliers and have received the following information: Expense item Quote ($) Comments Venue 2,000.00 Main hall and stage Stationery items / Postages 225.00 Communication 250.00 Event staff uniform 650.00 T-shirt for service staff in the event. Hire audio-visual equipment 3,500.00 Projector, microphones, sound systems, screens Floral arrangements 4,000.00 35 x table centres, 8 x large stands Stage and lighting hire 5,500.00 For stage and dance floor with colourful spotlights Food and service equipment lease 1,570.00 Food preparation and service equipment Master of ceremonies 900.00 6 hours including auction Consultant fees 4,000.00 PR2.5. Prepare linen hire cost for the event The financial information from suppliers on the cost of linen for the event is provided below. Prepare the linen hire cost based on the following information. Linen type Price per item ($) Quantity Cost ($) Round tablecloths 8.50 35 Trestle tablecloths 8.50 10 Table overlays 5.50 35 Napkins 0.70 350 Chair covers 3.00 350 Total linen hire costs PR2.6. Prepare an expense budget Based on the quotes provided by suppliers and your calculations, prepare an expense budget for the event. Expense budget Expense item ($) Venue Stationery items / Postages Communication Event staff uniform Hire audio-visual equipment Floral arrangements Stage and lighting hire Food and service equipment lease Master of ceremonies Consultant fees Linen hire Total expenses PR2.7. Prepare a wage budget for the event For the event, all human resources required are managed by an HR firm. The financial information from the company on wages is provided below. Besides the listed wages, an extra $10 per hour penalty will need to be paid, for anyone that worked more than 8 hours in a day, after the allotted time. The staff are required for two days. Friday – for room set-up and food preparation Saturday – for the day of the event. The required resources are listed in the table below: Job role No. of staff Rostered hours per person Pay rate per hour Friday Saturday Weekday ($) Weekend Cook 2 8 8 30.00 35.00 Kitchen assistant 2 6 8 22.00 25.00 Kitchen hand 2 8 18.00 20.00 Waiters 5 8 8 20.00 25.00 Waiters 10 8 20.00 25.00 Bar attendant 2 4 6 20.00 25.00 Security 1 1 3 pm to 11 pm 3 pm to 11 pm 35.00 45.00 Security 2 1 11 am to 7 pm 6 pm to 2 am 35.00 45.00 Security 3 1 7 am to 3 pm 35.00 45.00 Supervisor 2 10 10 40.00 50.00 Based on the information provided, prepare a wage budget using the template below: Job role Wages Total wages Friday ($) Saturday ($) $($) Cook Kitchen assistant Kitchen hand Waiters Waiters Bar attendant Security 1 Security 2 Security 3 Supervisor Total event wages PR2.8. Prepare food and beverages cost For the food and beverages, assume the following: · Ticket prices will include a four-course meal with wine, beer, soft drinks and juices. · Every meal caters for two (2) customers, except for the tapas appetiser, which is a shared platter for each table. · An extra 50 meal sets are required for staff and entertainers. · Beverages include a variety of red and white wines to match each course, bottled light and heavy beer, post-mix soft drinks and orange juice. · Standard recipes have been costed for each course, and an individual cost per serve determined. Calculate the food costs, including food cost per head, assuming 350 customers bought the tickets and attended the charity ball. Menu item Cost x 1 serve ($) No. serves required Food cost ($) Tapas platter 6.75 2 per table x 35 tables Baby beetroot with aged balsamic salad 3.84 175 Pan fried potato gnocchi, crispy bacon pasta 2.60 175 Portuguese marinated chicken 5.27 200 Mustard and macadamia rack of lamb 6.22 200 Sticky date chocolate pudding 2.00 175 Baileys tiramisu 1.95 175 Tea/coffee 0.25 350 Petits fours 0.35 350 Total food costs Food cost per head Calculate the beverage costs, including beverage cost per head. Beverage item Cost per item per bottle/serve ($) Forecasted requirements Beverage cost ($) Sparkling wine 14.52 60 Sauvignon Blanc 15.07 55 Chardonnay 14.21 60 Botrytis Riesling 22.53 45 Merlot 8.80 50 Shiraz 12.45 45 Cabernet Sauvignon 15.01 55 Light beer (750 ml) 3.40 50 Heavy beer (750 ml) 3.99 30 Soft drink 0.20 400 Juice 0.31 225 Total beverage costs Beverage cost per head PR2.9. Prepare draft event budgets Based on the information provided below, prepare the event budget The event committee has asked you to prepare two alternative revenue statement budgets based on ticket prices of $100.00 and $200.00. They wish to determine the most feasible and profitable alternative for their organisation. From previous experience in projects, it has been identified that a specific percentage of ticket sales revenue is spent on additional expenses, such as advertising, printing, decorating the venue and entertainment for the event. These expenses need to be included in the revenue statement budgets. Additional expenses % of revenue Advertising 1% Printing 0.25% Room decoration 3% Entertainment 5% Total 9.25% Calculate the revenue for both ticket prices No. of tickets Ticket price = $100.00 Ticket price = $200.00 350 Prepare alternative revenue statement budgets using the information you have accumulated so far. Alternative 1 % of sales Alternative 2 % of sales 350 tix x $100 350 tix x $200 Sales $ % $ % Revenue from ticket sales Cost of goods sold Food cost Beverage cost Total cost of goods Gross profit Expenses Labour costs Venue Stationery items / Postages Communication Event staff uniform Hire audio-visual equipment Floral arrangements Stage and lighting hire Food and service equipment lease Master of ceremonies Consultant fees Linen hire Advertising Printing Room decor Entertainment Total expenses Profit/loss PR2.10. Identify the breakeven ticket price to achieve a 25% profit. PR2.11. Calculate the revenue for the breakeven ticket price. No. of tickets sold Ticket price = 350 Prepare alternative revenue statement budgets using the information you have accumulated so far. Amount ($) % of sales Sales Revenue from ticket sales Cost of goods sold Food cost Beverage cost Total cost of goods Gross profit Expenses Labour costs Venue Stationery items / Postages Communication Event staff uniform Hire audio-visual equipment Floral arrangements Stage and lighting hire Food and service equipment lease Master of ceremonies Consultant fees Linen hire Advertising Printing Room decor Entertainment Total expenses Profit/loss Part D PR2.12. Circulate the draft budget to the event committee for input. Prepare an email with the detailed draft budget, including two alternatives and breakeven price, seeking input from the relevant stakeholders (those who gave input in 2.4). The email should be 150-200 words long. Email addresses will be provided by the trainer/assessor. Performance Criteria/Performance Checklist Your task must address the following performance criteria/ performance checklist. To be assessed as satisfactory (S) in this assessment task the participant needs to demonstrate competency in the following critical aspects of evidence S N/S Trainer/Assessor to complete (Comment and feedback to students) a) Identified the scope and nature of the required budget and the data and data source for budget preparation. · · b) Analysed the potential impact on the budget by internal and external factors. · · c) Engaged colleagues and required stakeholders to get input during the budget planning process. · · d) Drafted budget with estimated income and expenditures based on valid, reliable and relevant information. · · e) Reflected organisational objectives while drafting the budget. · · f) Analysed and provided options and recommendations on the budget in clear format and circulated it to the relevant stakeholders for their input. · ·