Activity 3.4: Evaluate and determine the effectiveness of existing financial management approaches. 

This activity is a continuation of Activity 3.1- Activity 3.3.

This activity requires you to evaluate and determine the effectiveness of existing financial management approaches.

To do so, you are required to follow the steps given in Checklist 4 and complete the templates associated with each step. 

The Supervisor or trainer/assessor will: 

• Supervise and observe the student performing this activity. 

• Place a tick mark against each step given in the checklist after the student performs/implements the step. 

• Sign off the checklist and ask the student for the submission of templates associated with each step.

Checklist 4: Evaluate and determine the effectiveness of existing financial management approaches.

Step 1: Determine the requirements for organisational and statutory financial reporting. 

• Assess the financial operations of the workplace, determine and document the following using Template 6. 

 Organisational budget reporting requirements. 

 Statutory financial reporting requirements.

Step 2: Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making. 

• Determine two (2) significant issues in statements, including comparative financial performances for review and decision making. 

• Assess how each significant issue would impact the workplace. 

• Further, document the following using Template 7. 

 Two (2) significant issues in statements, including comparative financial performances for review and decision making.

 How would each significant issue impact the workplace?

Step 3: Prepare recommendations to ensure the financial viability of the organisation. 

• Assess the issues identified in step 2. 

• Evaluate the financial viability of the business to generate sufficient income to meet operating payments, debt commitments. 

• Investigate underlying causes of the issues identified. 

• Generate possible solutions for addressing the issues identified using Template 8. Include the following information: 

 Financial viability of the business to generate sufficient income to meet operating payments, debt commitments. 

 Issues identified. 

 Underlying causes of the issues identified

 Possible solutions/recommendations for addressing the issues.

Step 4: Prepare an evaluation report on the effectiveness of financial management processes using Template 9. 

• Analyse the effectiveness of financial management processes/approaches, including: 

 Analysis of financial management software

 Managing the risks of Fund Misappropriation

 Ensuring that financial management systems for recording all transactions are in place. 

 Maintaining an audit trail. 

 Complying with the requirements of due diligence. 

• Prepare an evaluation report using Template 9. Follow the guidelines provided. 

Guidelines for the preparation of the evaluation report. 

 The evaluation report must be prepared using Template 9. 

 The evaluation report must include the following: 

 Background information 

 Objectives of writing the report

 Analysis of financial management software

 Managing the risks of Fund Misappropriation

 Ensuring that financial management systems for recording all transactions are in place. 

 Maintaining an audit trail. 

 Complying with the requirements of due diligence. 

 Conclusion of the report. 

Template 6: Requirements for organisational and statutory financial reporting.

Requirements for organisational and statutory financial reporting

Organisational budget reporting requirements. 

Statutory financial reporting requirements. 

Template 7: Identify and prioritise significant issues in statements

Identify and prioritise significant issues in statements

Two (2) significant issues in statements, including comparative financial performances for review and decision making.

How would each significant issue impact the workplace?

Template 8: Possible solutions for addressing the issues identified

Possible solutions for addressing the issues identified

Financial viability of the business to generate sufficient income to meet operating payments, debt commitments.

Issues identified.

Underlying causes of the issues identified

Possible solutions/recommendations for addressing the issues.

Template 9: Evaluation report 

Evaluation report

Background information 

Objectives of writing the report

Analysis of financial management software

Managing the risks of Fund Misappropriation

Ensuring that financial management systems for recording all transactions are in place.

Maintaining an audit trail.

Complying with the requirements of due diligence.

Conclusion of the report.