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SITXFIN005 Assessment 2 - Project
SITXFIN005 Assessment 2 - Project
Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN005 Manage physical assets
Stream/Cluster
Trainer/Assessor
Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required
Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:
Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date
develop a plan for the acquisition, maintenance and replacement of at least three different types of
physical assets listed in the knowledge evidence
demonstrate procedures to:
o monitor the utility of above assets to meet business needs
o provide regular financial reports on the assets
o record formal and informal customer and staff feedback
o integrate day-to-day condition reports
o schedule internal or external inspections or audits
o schedule management reports
o develop and maintain a current register for the above assets.
Place/Location where assessment will be conducted/Timeframes
RTO to complete
Resource Requirements
Refer to the Assessment conditions attached to the Futura Group Mapping Document located in the teacher
support tools folder or the “Assessment Conditions” for this unit in the SIT 1.0 Training Package.
Computer, Internet Access, financial data, organisational procedures relevant to the organisation for which
physical assets are managed and to be acquired.
For Part A
you are required to develop a resource acquisition plan for the acquisition of 3 different resources from the
following main categories:
buildings
computer systems
equipment fixtures, fittings and furniture in one of the following:
o accommodation establishments
o commercial kitchens
o restaurants and bars
o storage areas
o tourism, hospitality and event offices
o transportation depots
gardens
pools
rides and games
vehicles
vessels
For Part B
you are required to develop an asset register which needs to list the details for the 3 new physical assets you
have determined in Part A. You must include the maintenance requirements and schedule of maintenance for
each asset.
For Part C
you are required to develop a resource management strategy which provides details on how the efficiency of
each asset is monitored
Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201
This assessment:
First Attempt 2nd Attempt 3nd Attempt Extension – Date: / /
Assessor(s)
Date: / /
Signature(s):
Student Signature Date: / /
Assessment 2
Part A
Requires you to develop a resource acquisition plan for the acquisition of 3 different resources from the
following main categories:
buildings
computer systems
equipment fixtures, fittings and furniture in one of the following:
o accommodation establishments
o commercial kitchens
o restaurants and bars
o storage areas
o tourism, hospitality and event offices
o transportation depots
gardens
pools
rides and games
vehicles
vessels
Part B
Requires you to develop an asset register which needs to list the details for the 3 new physical assets you have
determined in Part A. You must include the maintenance requirements and schedule of maintenance for each
asset.
Part C
Requires you to develop a resource management strategy which provides details on how the efficiency of each
asset is monitored
PART A – Acquisition Plan
Task:
You are required to choose 3 different physical assets, relevant for an organisation in the Tourism, hospitality or
event industries, which may include any of the following:
buildings
computer systems
equipment fixtures, fittings and furniture in one of the following:
o accommodation establishments
o commercial kitchens
o restaurants and bars
o storage areas
o tourism, hospitality and event offices
o transportation depots
gardens
pools
rides and games
vehicles
vessels
1. Provide an overview of the business activities of the organisation relevant to the physical assets selected.
The physical assets selected for this project are:
1. Buildings,
2. Vehicles
3. Commercial kitchen
Organizational actions that are pertinent to gardens and gardening tools include the following:
1. Cleaning of the grills and griddles, burners, and grease filters.
2. Every 15-20 cycles, clean the filter.
3. To avoid clogs and drainage problems, train staff to rinse food and debris off plates and cookware
before loading the dishwasher.
4. Check the chemical (detergent, sanitizer, and rinse aid) levels.
5. Check the tank's water and replace it if needed.
6. Check dish racks for cracks, dents, or other damage.
7. periodically remove soiled oil
8. examine for damage and clean the fry baskets.
9. Examine and maintain combustion fans.
10. You should pay particular attention to the fryer's oil quality.
11. A lookout for gas leaks
12. Regularly grease valve knobs
13. Make sure that secure grates and burners are used.
14. Verify the thermostat is operating properly.
15. teach kitchen workers proper range usage
16. make sure that proper refrigeration is maintained
17. check electrical connections for safety
18. Examine the insulation on the suction line and Make thermometers accurate.
19. Categorize and label all the food according to type and expiration date
20. Maintain kitchen hygiene
21. Look for any floor imperfections that could pose a tripping danger, such as cracks or holes.
22. Verify the appropriate drainage of all floor drains. Etc.
2. List the purpose of the acquisition or replacement of the physical assets, providing detailed information
what informs the decision to acquire these new assets.
The following are the reasons for buying or replacing physical assets:
1. Assets have outlived the lifespan for which they were initially intended.
2. The old asset's repair costs are more than the purchase price.
3. They need to be replaced, but have not, resulting in high energy use.
4. High maintenance expenditures have resulted from the failure to replace them.
5. The risk of accidents and disasters has increased as a result of the failure to replace them.
6. The term "sunk cost" refers to a cost that has already been incurred and cannot be recovered in
economics and corporate decision-making. Organizations try to hold onto their surviving assets till
the end of their remaining lifetimes if the sunk cost of the current asset is a sizable sum.
7. Before purchasing a new asset to replace an existing one, there are five cost factors to take into
account. They are procurement cost (the price of buying new machines), holding cost (cost incurred
when a new or ideal machine is kept in storage), repairing cost (cost incurred when an asset is
restored following an unexpected breakdown), preventive maintenance cost (cost incurred when
preventive maintenance is performed to keep an asset in good condition), and operations cost
(equipment running cost such as electricity cost, fuel cost).
3. Write an overview of specifications for each asset which clearly outline what requirements each asset needs
to fulfil in terms of capacity, performance, size, location requirements and maximum budget for each or for
the overall budget parameter.
Building:
Capacity: The ability of an entity to achieve its goals, particularly in relation to its overall mission, is measured by
an entity's capability. Capacity is the highest output that a business can sustain in producing a good or providing
a service. The building should have enough space to meet the requirements.
Performance: The asset's performance is measured by its capacity to offer consumers the necessary degree of
service. This can typically be evaluated in terms of dependability, availability, capacity, and satisfaction of client
demands and needs.
Size: at least 10 rooms with contemporary amenities, enough parking for clients, sufficient Dining room, and
restrooms in the lobby
Location needs: With transportation options and favourable weather, a nice site that is easily accessible.
Budget: the budget allocated for the building keeping in consideration all the construction expenses, furnishing
expenses, operational costs, and other developmental fees is a total sum of $600,000
Vehicles:
We need a minimum of 5 vehicles. We need 3 pickup vans to pick our customers up. Additionally, 1 temperature
controllable vehicle to bring in the food without damaging them and 1 van to take and bring the laundry. The
pickup vans should fit 5 customers with their items of luggage easily.
Budget: the budget for the vehicles is $50,000 per vehicle.
Commercial kitchen:
Commercial kitchen equipment should include a combination oven, two deep fryers, two hot plates that are
freestanding, a six-burner gas oven, a huge walk-in refrigerator, and other items. To make cleaning up simple,
there should be enough of a prep room, under-counter refrigerators, and a pass-through dishwasher. The
allocated spending amount is $100,000.
4. Obtain 3 prices or quotes from different suppliers or sources for each asset. Attach the correspondence and
final quote received for each asset to this project.
Price quotes for buildings
$300,000 $555,000 $590,000
Price quotes for vehicles
$47,999 $45,955 $50,990
Price quotes for commercial
kitchen
$90,000 $95,000 $100,000
hotel | Business For Sale | Gumtree Australia Free Local Classifieds
https://www.gumtree.com.au/s-business-for-sale/hotel/page-2/k0c18468
2017 Mitsubishi Pajero NX MY18 GLX Grey 5 Speed Sports Automatic Wagon | Cars, Vans & Utes | Gumtree
Australia Victoria Park Area - Victoria Park | 1302617482
2017 Ford Ranger PX MkII Wildtrak Double Cab White 6 Speed Sports Automatic Utility | Cars, Vans & Utes |
Gumtree Australia Melville Area - Myaree | 1302481633
2013 Toyota Hilux KUN26R MY12 SR5 Xtra Cab Tidal Blue 5 Speed Manual Utility | Cars, Vans & Utes | Gumtree
Australia Wanneroo Area - Wangara | 1302617443
https://www.hkn.com.au/
https://caterlink.com.au/
5. Contact a financial institution and at least 2 different suppliers and obtain information on 3 different
financing options available and costs (attach copies of your correspondence).
Financial institutions: Financial institutions, including banks, building societies, and credit unions, offer a
variety of financing products with short- and long-term funding options. Business loans, lines of credit,
overdraft services, invoice finance, equipment leases, and asset financing are some of the available
offerings.
Grants To finance sustainable energy and energy efficiency initiatives in mission-driven organizations,
foundations, governments, and other funders occasionally give grants, repayable grants, or program-related
investments (PRIs). A repayable grant comes with the condition that the principal is paid back to the donor,
whereas a grant is a direct donation and is therefore not regarded as a loan or debt. A PRI is a relatively new
structure in which the donor offers a loan with an interest rate substantially lower than the typical market
rate. As long as the PRI complies with specific IRS rules, the donor may count the PRI as a charitable
donation. Each program has its own target audience and overarching objectives, and it is offered by a range
of local, regional, and national organizations.
Suppliers: The majority of suppliers provide trade credit, which enables companies to postpone paying for
goods. Trade credit may only be provided to companies with established commercial relationships, and the
terms are frequently variable.
6. Calculate the finance variants offered to you and determine the best options for each asset. Your options
need to include potential factors for depreciation, consideration for technology changes and financial
impacts on the organisation and financial aspects for which you will seek specialist advice. (Your
depreciation calculations must consider the current regulations published on the ATO website).
The depreciation calculations are presented below:
The depreciation was calculated by the prime cost method and are according to the ATO website.
https://www.ato.gov.au/Calculators-and-tools/Depreciation-and-capital-allowances-tool/
For buildings:
Based on the depreciation and the financial budget allocated for building and the goal of the organization,
the third building, costing $590,000 is the best choice.
For vehicles:
The depreciation for the options for vehicles is presented below:
Based on the depreciation and the financial budget allocated for building and the goal of the organization, the
second vehicle, costing $45,955 is the best choice
Based on the depreciation and the financial budget allocated for building and the goal of the organization, the
third option, costing $100,000 is the best choice
7. Based on your calculations in Q.7, explain the official process that now needs to be followed to finalise the
acquisition of each asset. This may include processes in your existing workplace or common industry
standards and needs to provide:
details for detailed specifications,
legal contracts,
requirements and documentation applicable to different acquisition and financing methods,
preparation of documentation for disposal of assets that are being replaced including tax
obligations.
The process of organizing and inspecting physical resources while keeping in mind their importance to the
government is known as resource securing. An abnormal level of administrative intrigue is necessary for
effective resource management, and the worry must continue the entire time the benefit is retained in
government custody. The main objective of benefits administration is to find the least expensive way to secure,
use, sustain, and transfer benefits in accordance with program objectives. Accordingly, physical asset
management is the planning, acquisition, maintenance, and transfer of (physical) resources while fully adhering
to all applicable legal requirements, strategic directives, and regulatory restrictions.
In terms of the following program expenses, effective asset management implementation will be addressed:
To help the consultants prepare their bids, the TOR must explicitly state the objectives, goals, and scope of the
assignment as well as provide background information (such as a list of current relevant research and basic
data). If knowledge transfer or training is a goal, it should be clearly stated together with information about how
many employees will be instructed, among other things, so that consultants can calculate the number of
resources needed. The scope of work (TOR) must specify the services, surveys, and results that are required to
complete the task (for example, reports, data, maps, and surveys). However, the TOR should not be overly rigid
and specific so that other consultants can offer their own methods. Businesses are urged to provide comments
on the TOR in their applications. The TOR should specify in detail the Ministry's and consultants' respective
obligations. The concerns listed in paragraphs 2.0 (Types of Consultancy Contracts avoiding percentage contracts
as much as possible) and 3.0 (Conflict of Interest) must be taken into consideration when drafting the TOR.
Financial Assessment
An asset purchase agreement (APA), which is a contract between a buyer and a seller, is used to settle the
specifics of the acquisition and sale of a company's assets. An asset retained by a business with the intention of
generating income is referred to as a capital asset. A capital asset is not meant to be sold during regular business
operations.
Examples of capital assets include automobiles, manufacturing equipment, office supplies, Land, and structures.
You must account for GST on the sale of a capital asset if you sell, transfer, or otherwise dispose of it and you are
registered for GST or are obliged to be registered for GST. On your activity statement for the applicable tax
period, you must detail the payment (or other consideration) you received at G1 (total sales).
Referred to:
https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/Business-asset-transactions/
GST-and-the-disposal-of-capital-assets/
Part B – Asset Register
Task:
1. Develop an asset register which lists the 3 assets determined in Part A. Your asset register needs to include
the following details:
Asset Details
Asset description/model/type
Serial Numbers
Purchase date
Cost
Depreciation amount (from when you undertake this assessment to the end of the financial
year). If you have no current value, then base this calculation on the approximate price you have
determined using the ATO guidelines.
Closing Written Down Values (at the End of financial year where you undertake this assessment)
ASSET REGISTER
2. Develop a maintenance register and identify the maintenance requirements for each asset accordingly. For
some assets that might be determined through lease clauses or service contract agreements. If so, include
these including the details. For the remaining assets consult the user manuals or manufacturer’s
recommendations with consideration to frequency of use relevant to your organisation. For example if a
post-mix machine or coffee machine is connected to water filter then this needs to be reflected in the
maintenance requirements.
Task:
1. Develop a maintenance regime for each asset based on the maintenance requirements you have
determined in Part B.
2. The maintenance regime needs to include the following details and outline how each aspect is affected
and as a result addressed:
1) Reporting and monitoring mechanisms to ensure assets are functioning effectively and issues are
reported by using correct and suitable procedures including provisions for specialist advice for complex
issues.
2) Provisions for collecting feedback from customers and reports from staff.
3) Types of maintenance required including common routine maintenance based on the organisation’s
activities for example adjusting doors, fixing furniture, cleaning air-conditioning filters in guest rooms,
etc.
4) Location of maintenance, e.g. can it be done off-site or away from heavily-trafficked areas?
6) Timing of scheduled maintenance, e.g. slow periods such as during the day for a nightclub, or during the
night in high frequency areas.
7) Likely disruption to operations – what are the disruptions and what are the expected impacts?
8) WHS issues
9) Legal and regulatory requirements which apply for the physical assets during the course of the financial
year (for example for vehicles carrying passengers, electrical equipment or as relevant to the specifc
assets)
10) Summary of cost impacts for human resources (for examples where maintenance would, e.g. require
penalty rates for maintenance staff) or the costs where contractors are engaged for specific
maintenance requirements
11) Costs of scheduled maintenance in terms of parts, required equipment to perform the maintenance and
consumables
12) Provisions for monitoring of financial performance of the assets over the budget period.
13) Occurrences based on the details outlined in the questions above which would inform to review or audit
the performance or viability of the assets.
The cost of maintaining the building would be about $25,000 covering all the areas, meeting all the legal
criteria, and following the WHS codes.
The cost of maintaining the building would be about $3,700 covering all the areas, meeting all the legal
criteria, and following the WHS codes.