Learner Assessmenpt Ack: Sitxfin005 Manage Physical Assets

SITXFIN005 Manage physical assets
Learner AssessmenPt ack
V2.0_August2019
Evidence recorded Evidence Type/ Method of assessment Evidence Submitted
Unit Assessment Part 1 Unit Knowledge Assessment (UKA) Yes / No
Unit Assessment Part 2 Unit Skils Assessment (USA) Yes / No

CONTENTS
UNIT OVERVIEW.................................................................................................................................................................3
Unit Description..........................................................................................................................................................3
AQF SPECIFICATIONS FOR ASSESSMENTS..................................................................................................................................................................5
Knowledge..................................................................................................................................................................5
Skills............................................................................................................................................................................5
Application.................................................................................................................................................................5
ACSF SPECIFICATIONS AND FOUNDATION SKILLS.....................................................................................................................................................6
SUBMITTING ASSESSMENTS........................................................................................................................................................................................6
TRAINING RESOURCES..................................................................................................................................................................................................6
UNIT ASSESSMENT PLAN....................................................................................................................................................6
UNIT ASSESSMENT PART 1.................................................................................................................................................7
UNIT KNOWLEDGE ASSESSMENT (UKA)............................................................................................................................7
STUDENT TO COMPLETE AND SUBMIT..............................................................................................................................7
STUDENT INSTRUCTIONS..............................................................................................................................................................................................8
UNIT ASSESSMENT PART 2...............................................................................................................................................13
UNIT SKILLS ASSESSMENT (USA)......................................................................................................................................13
STUDENT TO COMPLETE AND SUBMIT............................................................................................................................13
STUDENT INSTRUCTIONS...........................................................................................................................................................................................14
1. CASE STUDY BASED PROJECT REPORT WITH ROLE PLAY TASK.......................................................................................15
APPENDICES......................................................................................................................................................................20
APPENDIX: 01...............................................................................................................................................................21
Case study – Nara Business Hotel............................................................................................................................21
APPENDIX: 01...............................................................................................................................................................23
Annual Year-end financial performance review form..............................................................................................23
APPENDIX: 03...............................................................................................................................................................24
Internal Memo Template.........................................................................................................................................24
UNIT OVERVIEW
SITXFIN005 Manage physical assets
UNIT DESCRIPTION
This unit describes the performance outcomes, skills and knowledge required to manage the
physical assets of an organization. It requires the ability to establish systems and practices for asset
monitoring, maintenance and acquisition.
It applies to senior managers who operate with significant autonomy and who are responsible for
making a range of strategic management decisions.
Element Performance Criteria

1. Develop 1.1.Develop and maintain an accurate and current physical assets register.
practices for 1.2.Develop practices for managing physical assets that reflect overall business
systematic objectives.
maintenance, 1.3.Establish and implement maintenance and repair regimes that minimize
repair and disruption and loss of revenue.
purchase of 1.4.Integrate practices to support environmental sustainability into use of
physical assets. physical assets.
1.5.Evaluate current and potential financial ability to acquire physical assets.
2. Monitor the 2.1.Establish and implement regular reporting practices to ensure effective
condition and performance of physical assets.
performance of 2.2.Identify physical asset problems promptly and take appropriate action.
physical assets. 2.3.Assess long-term physical asset performance.
2.4.Evaluate need for, and access, specialist assistance.
3. Coordinate 3.1.Prepare accurate equipment specifications to guide acquisition process.

financing and 3.2.Estimate acquisition costs based on evaluation of current, accurate and
purchase of relevant data.
physical assets. 3.3.Make decisions on replacing and acquiring physical assets.
3.4.Select methods of financing to meet current financial objectives.
3.5.Finance acquisitions in consultation with financial specialists.
3.6.Keep accurate records of all financial agreements.
Performance Evidence
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:
• monitor the utility of above assets to meet business needs
• provide regular financial reports on the assets
• record formal and informal customer and staff feedback
• integrate day-to-day condition reports
• schedule internal or external inspections or audits
• schedule management reports
• develop and maintain a current register for the above assets.
Knowledge Evidence
business objectives relevant to the management of physical assets:
34
Apex Institute of Education | SITXFIN005 Learner Assessment Pack V2.0_Aug ’19 | CRICOS: 03156M Page 3 of
• profitability
• growth
• providing quality products and services to customers • adhering to: o codes of conduct
o environmental sustainability philosophies and practices •
industry accreditation schemes
types of physical assets required by tourism, hospitality and event organisations and the organisation in
particular:
• 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
maintenance requirements for different types of physical assets

considerations for long-term assessment of physical assets:
• ability to meet business objectives
• cost of maintenance over a period of time
• customer and staff feedback
• input from specialists where required
• operational efficiency
• safety
equipment specifications to guide acquisition process:
• budget parameters
• environmental sustainability policies for the business
• floor plans
• numbers and types of required equipment fixtures, fittings and furniture • operational
performance requirements: o efficiency o customer traffic o staff usage
• types of products and services offered by the business
formats for and inclusions of asset registers specified in performance evidence

features and benefits of different financing options for asset acquisition:
• hire purchase
• lease
• purchase
• rent
depreciation that can be applied to different types of physical assets
data used in the estimation of asset acquisition:
• current maintenance contracts
34
34
• estimates and quotations from suppliers
• previous contracts and costs
• published or advertised prices
practices to support environmental sustainability using different types of physical assets
Skills must be demonstrated in an operational tourism, travel, hospitality or event operation for which
physical assets are monitored and maintained. This can be:
an industry workplace a
simulated industry environment.
Assessment must ensure access to:
▪ current commercial purchase specifications, supplier product and cost information, and
contractual documentation used for the purchase of assets.
AQF SPECIFICATIONS FOR ASSESSMENTS
AQF Specifications for Assessments in Advanced Diploma Qualifications:

This assessment is set in accordance with the criteria for AQF Level 4. As stated in the AQF specification for the
Advanced Diploma qualifications must be designed and accredited to enable graduates to demonstrate the learning
outcomes expressed as knowledge, skills and the application of knowledge and skills specified in the level 5 criteria
and the Advanced Diploma descriptor.
Students at this level will have specialised knowledge and skills for skilled/paraprofessional work and/or further
learning.
KNOWLEDGE
Students at this level will have broad theoretical and technical knowledge of a specific area or a broad field of work
and learning.
SKILLS
Students at this level will have a broad range of cognitive, technical and communication skills to select and apply
methods and technologies to:
• analyse information to complete a range of activities
• interpret and transmit solutions to unpredictable and sometimes complex problems
• transmit information and skills to others
APPLICATION
Students at this level will apply knowledge and skills to demonstrate autonomy, judgement and defined
responsibility in contexts that are subject to change and within broad parameters to provide specialist advice and
functions.
ACSF SPECIFICATIONS AND FOUNDATION SKILLS
34
The term ‘Foundation Skills’ is currently used to include the core skills defined in the Australian Core Skills
Framework (ACSF) as well as the employability skills identified by employers as critical for effective performance in
the workplace.
Foundation skills encompass both the core skills of reading, writing, oral communication, numeracy and learning as
described by the Australian Core Skills Framework (ACSF), and the Employability Skills/Core Skills for Work. They
exist on a continuum from very basic skills to highly-developed and specialist skills. The foundation skills for this unit
are located in the Unit Outline Booklet and have been addressed in the assessment as part of the performance
criteria for this unit.
SUBMITTING ASSESSMENTS
Students should submit assessment tasks with the provided cover sheet.
Assessments should be submitted on or before their due date. Extensions for individual assessment tasks may be
negotiated in specific circumstances. Consultation on this must occur prior to the due date and extensions due to
illness will require a medical certificate. Extensions must be confirmed by the Academic Manager in writing.
TRAINING RESOURCES
The student will have access to the following:

• AIE Student Workbook
• PowerPoint presentation
• Learner Assessment Pack (LAP)
• Access to a computer, the Internet and word-processing system such as MS Word and MS Excel
UNIT ASSESSMENT PLAN
To demonstrate competence in this unit, you must be assessed as satisfactory in each of the following assessment
part.
Evidence recorded Evidence Type/ Method of assessment Evidence Submitted
Unit Assessment Part 1 Unit Knowledge Assessment (UKA) Yes / No
Unit Assessment Part 2 Unit Skills Assessment (USA) Yes / No
34
UNIT ASSESSMENT PART 1
UNIT KNOWLEDGE ASSESSMENT
STUDENT TO COMPLETE AND SUBMIT
STUDENT INSTRUCTIONS:
You are required to demonstrate the knowledge you have gained from undertaking SITXFIN005 Manage physical
assets unit of competency.
• All questions must be answered correctly to be completed satisfactorily.
• All knowledge assessments are untimed and are conducted as open book (this means student can refer to
textbooks or any resources).
34
• Student may handwrite/use computers to answer the questions.
• This assessment task may be completed in a classroom, at home, learning management system (i.e.
Moodle), or independent learning environment.
• You must complete all questions unassisted by the assessor or other personnel but may refer to reference
material as needed.
Submission details
• The Assessment Task is due on the date specified by your trainer. Any variations to this arrangement must
be approved in writing by your trainer.
• Fill out and attach the Assessment Submission form to the documents you are submitting to be marked.
• Please answer each question on a separate page provided and clearly indicate the question number at the
top of the page.
• The Trainer/Assessor may further prompt and question in order to receive answers of appropriate quality
or if further clarification is required and to validate authenticity of your submitted work.
Answer all of the following questions.
1. How can the following business objectives influence the methods used for managing physical
assets in an organization? Provide 1 example for each:
Profitability
If profitability is the main thing, you need to do a detailed ROI, and the total cost is an
important factor in your decision. In other situations, certain assets may be absolutely
necessary to provide services. In this situation, the total cost remains operational.
Growth
34
If the company are aiming for business growth, asset purchase and management should
consider the future use of your assets. Every new asset must have the ability to handle the
current or future required workload or activity.
Providing quality products and services to customers
If the quality of products and services is a major concern, it should clearly reflect the
possibility of improvement of the product. Increase returns customs, reviews and increase
business value.
Adhering to: o codes
of conduct
o environmental sustainability philosophies and practices
If the Code of Conduct applies to your business, for example, the intended purchase of an
asset must comply with established standards. This may include ethical practices and
methods of decision making.
Industry accreditation schemes
Industry accreditation schemes are specific standards and therefore purchase and
maintenance must reflect initial expenditures, potential revenues and overall ROI, such as
star ratings in hotels, attractions or travel.
2. Provide 8 examples for different types of physical assets required by tourism, hospitality and
event organizations:
1. Buildings and other structures

2. Fittings and fixtures
3. Recreation equipment, e.g. pool table, rides and games
4. Gardening equipment
5. Vehicles and vessels
6. Equipment
7. Computer and other IT systems
8. Furniture
3. List 5 physical assets relevant to your workplace or training and provide the maintenance
details typically required for each:
Physical asset Maintenance requirements

Building maintenance requirements include
cleaning, electrical, and other requirements in
1.Buildings
the office or building to meet the building's
goals and objectives.
2. Computers The computer needs to be scanned for viruses
and software and hardware updates in
34
34
connection with maintenance.
Furniture is one of the main requirements for
workshops and training for the placement of
3. Furniture equipment and computers. Basically, things
like workstations, tables and chairs are
included in the list that needs repair.
The gardens, grounds and surroundings were
well trimmed in part due to the maintenance of
4. Gardening equipment all gardening equipment. Maintenance
personnel have been recognized for the merits
they have incorporated into environmentally
friendly business practices.
The store area is a tightly regulated area due
to the frequency of entering and exiting other
5. Storage area
departments. You should take a good look at
all the equipment used and check it regularly.
4. List 6 key aspects which must be considered for the long-term assessment of physical assets in
terms of nature of requirements and necessity of acquisition. Who could be typically involved
in this in terms of feedback and specialist advice?
Responses
Achieve business goals through the use of physical assets
2. Evaluation of safety conditions and consideration of safety standards
3. Efficiency of results through management of operational efficiency of physical assets
4. Logically identify the need for input requirements based on advice from experts
5. Calculate maintenance cost for a specific period to manage budget and avoid results
6. Continuous feedback from employees and customers
Involvement
Employees and customers get feedback and need it at work.
-Company managers that determine the assets needed to achieve business goals
-Technical team analyzing assets to address the need for improvement.
-Company operation team
-HR team evaluating requirements to specify required costs
-National health and safety standards
5. The following are parameters which are used to guide the acquisition of physical assets.
Provide examples and details for what should be considered, for each aspect.
Budget parameters
Has the budget already been allocated for this acquisition? Are the assets you want within your
budget? Need to adjust your budget to accommodate your assets? Impact on other areas of business
operations
34
Environmental sustainability policies for the business
In order to select the right asset, we need to develop a specification detailing emission, resource
efficiency, sustainable resource use, etc. The asset acquisition must meet the business environment
policy.
Site plans
There may be physical constraints that must be met. And it is important to understand if your
assets will improve or fit in your workflow. For example, new kitchen equipment must fit into a
specific area so as not to interfere with employee movement and item workflow.
Auxiliary items
Companies may need to analyze various possibilities for specific assets. This may include fixtures,
fittings and furniture needed to complete or enhance a central asset.
Performance requirements
It is necessary to determine the required output level and other operational aspects of the
acquired assets. You need to develop aspects such as items produced per hour, efficiency, staff
usage, failure rate, maintenance requirements and other parameters.
Suitability to products and services offered
The company need to consider the products and services offered by the business to achieve
desired service level and customer results. For example, if you're going on a car-off-road tour, 4wd
is best.
6. Which details need to be recorded in an asset register for each physical asset?
Responses
Name or type of asset
-Purchase date
-Original cost
-Opening Written Down Value (WDV)
-Depreciation rate and calculation type
-Depreciation amount for the year
-Accumulated depreciation
-Closing WDV
7. Provide an overview of the features, advantages, and disadvantages of each of the following financing
options when acquiring assets:
1. Hire purchase
Appropriate financing methods when buyers do not have enough capital to pay the full price. Instead, after a
certain percentage has been paid as a deposit, it is split until the total price and interest are paid.
Advantages Disadvantages
-Lower capital expenditure meaning a better -Termination of lease may be costly and/or
cash-flow situation difficult
34
-Option to purchase item at end of lease -Business does not have full control over assets
-Increased flexibility and opportunity for growth -Maintenance costs on an asset not fully owned by
the business
2. Lease
Essentially the same concept as renting but is conducted over a longer time period. Leasing arrangements
are formal and require a contract signed by both parties
-Lower capital expenditure meaning a better -Termination of these may be costly and/or
cash flow situation difficult
-Avoids risk of fluctuations in market value -Rent can increase significantly at lease-renewal
-Increased flexibility and opportunity for growth -Business does not have full control over assets
3.Purchase
Many businesses believe that outright purchasing of an asset is the most cost-effective option. all financing
options should be considered for each individual asset, at the time it is being acquired
-Ownership of asset - High risk in acquiring assets
-Increase of equity -Maintenance costs
-Potential for capital gains -Cashflow can be adversely affected
4.Rent
Short-term solution often used for short-term or one-time events. Employment involves paying a fixed amount of
money in exchange for the use of assets.
-Low capital outlay -High cost per use
-No risk associated with acquiring the asset -No ownership
-No maintenance costs
8. Explain the methods for calculating the depreciation of assets using each of the following methods:
a) Prime cost method
b) Diminishing Value Method
a) Prime cost method
34
The prime cost method (also known as straight-line method) of depreciation assumes that the value of the
asset diminishes by a fixed amount every year, over the useful life of the asset. Using the prime cost method
to depreciate an asset, you will need to know three things:
-Cost price
-Expected useful life
-Expected residual value
-The annual depreciate amount can be determined using the following equation:
-Annual depreciation amount = (cost - residual value) ÷ life
b) Diminishing Value Method
The second method for calculating the depreciation is the diminishing value method. Using this method, the
depreciation value changes each year rather than staying fixed.
The formula for the diminishing value method is:
-Depreciation amount = base value X (days held ÷ 365) X (200% ÷ asset's effective life)
This will tell you the amount to depreciate for the FIRST year
9. Go to the ATO website link provided below and source the information for the current
simplified depreciation rules which apply:
From 7.30pm (AEST) on 12 May 2015 until 28 January 2019:can immediately deduct the business portion
of most depreciating assets costing less than $20,000 each
-From 29 January 2019 until before 7.30pm (AEDT) 2 April 2019:can immediately deduct the business
portion of most depreciating assets costing less than $25,000 each
-From 7.30pm (AEDT) on 2 April 2019 until 30 June 2020:can immediately deduct the business portion of
most depreciating assets costing less than $30,000 each
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Depreciatingassets/Simpler-
depreciation-for-small-business/
10. Provide 4 examples of sources for data to enable you to estimate reliable acquisition costs.
What does this need to consider in terms of contractual obligations and ongoing maintenance?
Responses
1. Bottom-Up Estimating
2. Parametric Estimate
3. Analogous Estimate
4. Vendor Bid Analysis
Aspects to consider
34
Bottom-up estimation
-It is one of the most time consuming and accurate ways to identify activities that look for
product costs, including material and labor costs.
Parameter estimation
-The estimation process takes into account all the projects and average costs required for the
activity, but the forecasts are made on a per unit basis, such as the quantity per unit required
to complete the building.
Similar estimation
-The complexity and scale of the project is estimated based on the proposed reason. Learning
experiences are used in the field to judge problems and select effective projects.
Supplier bid analysis

-The problems of products and services are solved through this method, so we can improve
the quality of our products and meet the required standards at all levels.
11. List 3 examples for environmental sustainability that applies to physical assets and outline
the environmental and financial benefits as applicable:
Example Environmental and financial benefits

The use of recycled water in the garden
Use Grey Water for Your Gardens
significantly reduces water consumption
and costs.
Many of the waste generated by businesses
can be recycled, which is a simple way to
Institute a Recycling Policy
reduce environmental impact. If you throw
away objects, the amount of landfill will
increase, and land pollution may occur in the
long run.
Reducing well pollution is also an
Reduce the Amount of Noise Pollution environmental consideration. Installing
insulation reduces the noise that leaves the
site and reduces the cost of air conditioning.
34
UNIT ASSESSMENT PART 2
UNIT SKILLS ASSESSMENT
STUDENT TO COMPLETE AND SUBMIT
STUDENT INSTRUCTIONS:
The project consists of 3 parts, Part 1, 2 and 3 based on simulated business - ‘Nara Business Hotel.
• If you are not sure about any aspect of the assessment or would like to discuss your particular needs, please
speak to your trainer.
• Your trainer will tell you the date you need to submit your assignment.
• You need to complete all parts and submit them together by the due date.
• This project assignment is to be completed using the “Nara Business Hotel” case study. It is included in the
“Appendix”.
34
• The checklist table will identify the records that you are required to prepare and submit (as a single
submission).
• Your assignment must be typed (in 12 point type on A4 paper) and you need to complete an Assessment
Cover Page.
• Make sure you keep a copy of your assignment before you hand it in to your trainer
Note :
Any Role Play or Presentation needs to be completed in the class with your Trainer / Assessor on the date
specified by your trainer.
1. CASE STUDY BASED PROJECT REPORT WITH ROLE PLAY TASK
This project assignment is to be completed using the “Nara Business Hotel” case study. It is included in the
“Appendix”. The assessment has three parts and the details are provided below:
Part 1
Requires you to develop a resource acquisition plan for the acquisition of 3 different resources from the following
main categories:
• buildings
• equipment fixtures, fittings and furniture in one of the following:
• gardens
• pools
• rides and games
• vehicles
• vessels
34
Part 2
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 3
Requires you to develop a resource management strategy which provides details on how the efficiency of each asset
is monitored
Part 1. – Acquisition Plan
You are working as a manager at the Nara Business Hotel. You have been informed of the hotels expansion plans
by the senior management. You are required to choose 3 different physical assets, relevant to Nara Business Hotel,
which may include any of the following:
• buildings
• 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
34
 Task 1
1. Provide an overview of the business activities of the hotel relevant to the physical assets
selected.
3 Physical assets chosen are;
✓ Buildings
✓ Computer System
✓ Gardens
- Building include
✓ Building maintenance requires regular inspection and to properly maintain building services that include
✓ Lifts
✓ Air conditioning
✓ Emergency Evacuations testing
- Computer System
✓ Hardware inventories.
✓ Software inventory and installation.
✓ Anti-virus and anti-malware management.
✓ User's activities monitoring.
- Gardens includ
✓ Cleaning of garden on daily basis
✓ Hoses and sprinklers maintenance and repair if needed.
✓ Security of asset to avoid theft and damage.
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.
-Buildings
In the last financial year, more than 600 business travelers from all over the world have visited our Nara business
hotel. We need to provide an environment where they can use the hotel comfortably. Last year, there were complaints
from customers due to the facilities of the hotel that broke down, and there were financial losses. This year, the facility
needs to be maintained and maintained. This will please the customer and help them earn more money from the
evaluation they receive.
-Computer System
In the last financial year, more than 600 business travelers from all over the world visited our business hotels in
Korea. In order to provide the best service to our customers, we need to provide personalized service for them.
34
For example, in order to provide the services that the customer wants, such as the customer's reservation date, check-in
and out, and use of additional services, it is necessary to check the computer system for any abnormalities.
Missing reservations from different customers can be the worst for a hotel.
Companies should reduce financial losses through regular system checks.
This allows you to satisfy your customers and earn more money from the evaluations they have received.
-Gardens
In the last financial year, more than 600 business travelers from all over the world have visited Nara business hotel.
In addition to the external facilities to make your hotel comfortable, it is important.
External facilities are highlighted by the image of the hotel.
The landscaping should be repaired so that the moment they enter the hotel, they feel like they are in a special
place.
This allows you to please your customers and earn more money from the evaluations they have received.
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.
Energy
Asset Locations Size Capacity Service quality Budget
Aspects
-At least 100
bedrooms with
Building should be
modern facilities Customer
spacious enough to -Human labor
-Spacious parking for satisfaction The greater part
Buildings Sydney CBD fulfil the -Electricity
customers through of total budget
requirements. -Water
-Dining area cleaning service
-Reception
-Bathrooms
Expensive
Building should be maintenance is
Customer
-Dining area spacious enough to -Human labor required because
Computer satisfaction
Lab Room -Reception fulfil the -Electricity of the need for
System through fast
requirements. the expensive
service
hardware
equipment.
These assets add
Customer
the beauty to
Building should be satisfaction
Outside of Gardens are located on -Human labor building and not
Gardens spacious enough to through
hotel ground floor and very expensive to
fulfil the environmental
outside maintain.
requirements services
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.
Building
Ozi Cleaning1 : $88,000 White Cleaning 2 : $85,000 Best Cleaning 3: $87,000
34
Computer System
S&S Software 1: $180.500 Fast Software 2: $200,000 No1. Software 3: $170,990
Gardens
Beauty Garden 1: $40,000 BTS Garden 2: $35,000 Green Garden 3: $38.000
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).
A) Email 2 email
b)
1. Interest free purchase and instalment options
Interest-free purchase and instalment options are what allows retailers to take their products home before buying
them. There are periods of deferred repayment that do not require repayment on a regular monthly basis during
the interest-free period or until the end of the interest-free period.
2. Lease
Financial Leasing is an alternative way of financing whereby a licensed leasing company purchases an asset on behalf
of its customer in return for a contractually agreed series of payments which usually include an element of interest.
3. Car Loan
Car loans are loans taken to purchase a car, such as a car, motorcycle, or other road vehicle.
Car loans are a common type of personal loan. Categories of personal loans cover a wide range of loans.
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 organization and financial aspects for which you will seek
specialist advice. (Your depreciation calculations must consider the current regulations
published on the ATO website).
- Building ->White Cleaning 2 : $85,000
Computer System ->No1. Software 3: $170,990
34
Gardens -> BTS Garden 2: $35,000
https://www.ato.gov.au/Calculators-and-tools/Depreciation-and-capital-allowances-tool/
https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DCA&anchor=DCA#DCA/questions/assets
(b)
• These methods help you calculate the deductible or capital allowances available on depreciable assets
and the claims that can be claimed for capital work purposes.
• This method can calculate the following items.
-Depreciation calculation
-Rental real estate
-Small Business Pool
-Your low-value pool
-Capital works
-Asset-based depreciation
• The company can get the following output
- Calculate equity of depreciable assets in partnership
-Depreciation of multiple assets
-Comparison of depreciation between cost and depreciation method
-Determination of throughput, including balancing
-If you have a myGov account, save the calculation so that the future year amount to be used for tax calculation is
automatically filled.
34
-Save the record calculation or send it to your tax agent. https://www.ato.gov.au/Calculators-
and-tools/Depreciation-and-capital-allowances-tool/
7. Based on your calculations in Q.6, explain the official process that now needs to be followed to
finalize 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.
• Details for detailed specifications
-Present all options in detail to related persons
-Finales the option
-Get approval from required authorities
-Discuss with staff regarding all specifications of the assets
• Legal contracts
-Legal advice fir formulating the contracts
-Finalizing contracts
-Fill up and mortgage loan papers

• Requirements and documentation applicable to different acquisition and financing methods
-Final cost calculation report
-Advice form accounts department
-Finance authorization
-Loan or mortgage loan papers

• Preparation of documentation for disposal of assets that are being replaced including tax obligations
-Prepare to dispose old asset
-Do all calculations
-Consider any tax obligations
-New asset purchase documents
-Asset manuals
PART 1: Your assessor will be looking for:
34
Before you hand in the Part 2 assessment tasks, use the checklist below to make sure you have completed all the
activities and have included all relevant information.
• Provided an overview of the business activities

• Listed the purpose of the acquisition or replacement of the physical assets
• Overview of specifications for each asset clearly outlined
• Prices or quotes from different suppliers taken
• Contacted a financial institution
• Calculated the finance variants offered to you
• Explained the official process that needs to be followed to finalise the acquisition of each asset.
Part 2. – Asset Register
 Task 1
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)
Closing
Asset Seria Purchase Description
Asset Cost Written
Description l No. Date amount
down value
Customer
-Cleaner : 20
satisfaction White
Buildings
through 133 01.01.2019 Cleaning $76.476.88
-Machines :2
cleaning : $85,000
-Chemicals : 30
service
Computer Customer 05 02.01.2019 No1. -Specialist $153.844.4

System satisfaction Software : -Main 9
34
hardware : 2
through fast
$170,990 -Soft ware:
service
POS : 20
Customer -Specialist : 2
BTS
satisfaction
Garden :
Gardens through 71 05.01.2019 $3.149.05
$35,000
environmenta
l services
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 organization.
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.
Name of the
Maintenance Criteria Other Considerations
asset
-Building maintenance requires regular inspection
and to properly maintain building services that
WHS considerations
include
Buildings -Electricity safety
-Lifts
-Safety sign
-Air conditioning
-Emergency evacuation
-Emergency Evacuations testing
-Cleaning
-Hardware inventories. WHS considerations
Computer
-Software inventory and installation. -Electricity safety
System -Anti-virus and anti-malware management. -Safety Sign
-Cleaning of garden on daily basis
WHS considerations
-Hoses and sprinklers maintenance and repair if
Gardens -Electricity safety
needed.
-Safety Sign
-Security of asset to avoid theft and damage.
Before you hand in the Part 2 assessment tasks, use the checklist below to make sure you have completed all the
activities and have included all relevant information.
• Developed an asset register which lists the 3 assets determined in Part 1.

• Developed a maintenance register and identified the maintenance requirements for each asset
Part 3 – Resource management strategy
34
Continuing from Part 1 and 2 complete the following:
1. Develop a maintenance regime for each asset based on the maintenance requirements you have
determined in Part 2.
Asset 1 : Building
Maintenance regime
Description of Service Frequency of Service
Empty waste baskets Daily

Dust Furniture Daily
Clean Washrooms Daily
Restore paper and soap dispensers 2 times a week
Floor sweeping Daily
Window Cleaning weekly
Checking working condition of Monthly
Lifts
Lights
Air conditioner
Colour and paint Yearly
Asset 2 : Computer System
Maintenance regime
Backup the data Daily

Check the computer Weekly
Do the service Monthly
Scan your all documents and keep it in hard drive Monthly
Backup your hard drive as an image. Also check the Twice a Year
computers if anything need to be replace then replace
it.
Asset 3 : Gardens
Maintenance regime
Cleaning Daily
Watering plants Weekly
Weed removal Monthly
Grass cutting Monthly
Clean-up Seasonal
New plants growing Yearly
2. The maintenance regime needs to include the following details and outline how each aspect is
affected and as a result addressed:
34
a) 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.
-Follow
-Checking
-Report any problem
-Documentation
-Ask specialist’s advice
-Quickly resolve the problem
b) Provisions for collecting feedback from customers and reports from staff.
Collecting feedback from customer
-Online survey
-Offline survey
-Social media
-Face to face interview
Report from staff

-Any complaints
-Feedback received
-Quality of staff performance
- Staff meetings
c) Types of maintenance required including common routine maintenance based on

the organization’s activities for example adjusting doors, fixing furniture, cleaning
air- conditioning filters in guest rooms, etc.
-Supply and fitting of light tubes and globes
-Replacement of castors on chairs
-Regular inspections of gutters and down pipes
-Cleaning of silt and acid traps
-Checks of security fences and minor repairs as required
-Replacing signs
-Repair of insect screens
-Minor repairs to furniture and equipment
-Minor wall, ceiling and door repairs
d) Location of maintenance, e.g. can it be done off-site or away from heavily trafficked areas?
Maintain the necessary devices, equipment, machinery, and support utilities in industrial and business
facilities.
34
If there is equipment to do maintenance in the workshop, otherwise we can fix it. Otherwise, all
machines must be taken to a workshop or factory. This brings waste of time and economic losses to the
company.
e) Expected duration of maintenance works

Managers need to make sure that the right people are in the right places at the right time to do their job.
However, it takes a few days to maintain the entire workplace, so check everything out. That way, you can determine whether
you need the company's additional assets.
f) Timing of scheduled maintenance, e.g. slow periods such as during the day for a nightclub,
or during the night in high frequency areas.
It is important to consider all areas and equipment of a commercial kitchen to be cleaned, and to plan what
to clean, when to clean, and how to clean.
Use this template to plan a weekly cleaning schedule for your kitchen. Print it and place it on a wall or keep it
in your food safety plan document.
g) Likely disruption to operations – what is the disruptions and what are the expected impacts?
For example, there is a peak time in the hotel's kitchen. During off-peak hours, call the maintenance personnel to fix
the problem, but during peak hours, contact the repair personnel. And the problem can't be solved.
If a customer asks what kind of noise they are experiencing in the kitchen or why the service is delayed, they
should be politely informed.
h) WHS issues
-Any relevant accepted industry practice, if that practice is consistent with the WHS Act and the WHS
Regulations.
-The requirements for the management of risks (WHS Act s17).
-What (if any) temporary measures are required.
-What (if any) further information is required.
-A method and timeline for resolution of the issue.
-Whether any other persons may reasonably be required to assist the early resolution of the issue.
i) Legal and regulatory requirements which apply for the physical assets during the financial
year (for example for vehicles carrying passengers, electrical equipment or as relevant to the
specific assets)
In general, all buildings must comply with the relevant building codes during construction, and maintenance
of the building is the responsibility of the building owner. Therefore, if the owner cannot directly manage it, it
is essential to maintain the building regulations with the help of a professional company.
The landlord must have a good repair of the rented or leased building, regardless of whether the building is
used for residential or non-residential use.
Examples include:
- Lifts
Applicable requirements in relation to the minimum and mandatory compliance standards for lifts are documented in
work health and safety legislation
34
-Air conditioning
In general, landlords have a duty to ensure that appliances and facilities
-Automated fire detection and suppression systems
In New South Wales, building certifiers will generally require a smoke detector compliance certificate
-Whole building' emergency evacuation testing
In most states and territories, under work health and safety legislation, a person conducting a business or
undertaking at a workplace must ensure an emergency plan
j) 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
Maintenance contracts are usually the most economical way to service or maintain highly technical,
scientific, or complex assets, equipment, due to the nature of assets, equipment, and the need to minimize
downtime.
For example, a building needs a pumping facility that draws water. However, pump motors are enormously
expensive (over $20,000).
So, if the company need to decide when a replacement is needed, you will have to make a careful
decision.
k) Costs of scheduled maintenance in terms of parts, required equipment to perform the

maintenance and consumables
Physical asset lifecycle costs can be substantial and are often not transparent to budget managers. The hidden
operating costs associated with physical assets pose significant challenges for budget forecasting and cash flow
management.
When buying a new capital asset, it is important to identify the cost of the asset lifecycle, so it can be included
in future budget forecasts compared to alternative purchases.
For example, Special cleaning materials and any parts of machinery, it is applicable when purchasing the
following items.
l) Provisions for monitoring of financial performance of the assets over the budget period.
Since sales, profit margins, and cash flow are key elements of any business, owners should pay particular
attention to receiving regular reports on these areas of the business. Without accurate and timely knowledge of
current financial conditions, business failures can lead to consequences.
Provisions for monitoring the financial performance of assets during the budget period include: -
-Change in customer volume
-Change in sales
-Change in staff performance
m) Occurrences based on the details outlined in the questions above which would inform to
review or audit the performance or viability of the assets.
34
The frequency and method of inspection and the data to be collected should always be related to the
services provided by a particular asset. The goal should always be to ensure that data is used to determine
the need and timing of preventive or therapeutic measures to maintain the desired level of service.
Examples include; increased customer dissatisfaction, decreased sales, increased operating costs, and
frequent accidents at the workplace.
http://ledger-paper.org/11-apartment-building-maintenance-checklist/
https://www.pcworld.com/article/188123/pc_maintanence.html
https://www.doityourself.com/stry/gardenjournal1
https://higherlogicdownload.s3.amazonaws.com/IPWEA/1605183f-a91c-4680-b953-
cde30dd2c09a/UploadedImages/Bookshop/PN%20Preamble_lp_v2.pdf
Before you hand in the Part 3 assessment tasks, use the checklist below to make sure you have completed all the tasks
and have included all relevant information.
• Developed a maintenance regime for each asset based on the maintenance requirements
• The maintenance regime that includes the details mentioned and outlined how each aspect is affected
and as a result addressed
34
APPENDICES
34
APPENDIX: 01
CASE STUDY – NARA BUSINESS HOTEL
Background
The Nara Business Hotel has been operating within the Sydney CBD as a boutique hotel for the past 20
years. In this time the NBH has built a reputation as a high quality boutique hotel which offers residents a
unique and flawless stay in one of their 100 rooms. The hotel was initially founded by Greg Mathews who
later sold the hotel to a group of investors who have given the hotels management to the Australian Hotel
Management Group (AHMG). The AHMG is responsible for all matters related to the operation of the
hotel and are required to meet strict financial performance objectives. The AHMG must therefore budget
all hotel expenses and regularly produce reports which are presented to the Hotel’s investors.
Mission
The Nara Business Hotel’s mission is to consistently deliver an enjoyable and memorable accommodation
experience for travellers visiting the Sydney CBD in a business context.
Vision
The Nara Business Hotel’s vision is to become an industry leader in boutique business accommodation.
Growth Objectives
The Nara Business Hotel has been known for its boutique size. However, over the past 5 years the demand
for rooms in the NBH has been far greater than supply. As such, many residents are left upset when they
cannot get a booking. The investors wish to overcome this problem, and have asked the AHMG to budget
for the expansion of the hotel. Additionally, the investors wish to achieve a 50% growth in profits over the
next 2 years.
In order to achieve these growth objectives the AHMG has decided to expand the hotel by introducing 50
new rooms. They believe that due to the high demand for rooms the full cost of the expansion will be
recovered within a year, making the expansion a viable business opportunity.
Forecast Revenue Figures for 2019 and 2020
Number of Rooms Revenue Per Room Occupancy Rate

2019 150 $90,000 67%
2020 150 $90,000 91%
Note: the occupancy rate is lower in 2019 due to the time required to furnish the 50 new rooms early in the
year.
Organisation Finance Policy and Procedures
Reporting Policy
34
The Nara Business Hotel requires its financial managers to report deviations between the forecasted
budget and actual budget to the Hotel’s investors. The managers are only required to report upon
deviations of 5% or greater.
Financing Policy
The Nara Business Hotel requires its financial managers to responsibly manage the cashflows of the hotel.
If there is a need to raise cash for hotel operations or expansion the policy requires the financial
management team uses short term loans from ANZ Bank. The loans are typically 1 year long and at an
interest rate of 4% and the loan amounts are rounded to the nearest hundred thousand.
Staffing Policy
The Nara Business Hotel prioritises excellent customer service and as such the policy requires employing 1
staff member per 5 rooms. For example, if the hotel has 100 rooms, 20 staff members will need to be
actively working within the hotel at any given time.
Corporate Real Estate Policy

The Nara Business Hotel policy requires that its real estate assets are rented and not bought. The current
hotel building is rented at the rate of $3,000,000 per annum and which equates to $30,000 per room per
annum. The Hotel policy requires that any future real estate that is to be attained is negotiated to the same
rate of $30,000 per room per annum.
Hotel Maintenance Policy

The Nara Business Hotel policy requires that every year 10 existing rooms are completely refurnished. The
cost of completely refurnishing a room is $20,000 as per the Hotel’s contractor agreements. This policy
ensures that the hotel’s rooms are up-to-date and the décor is of latest style. Additional rooms may be
refurnished based on management’s requirements, however a minimum of 10 old rooms must be
refurnished annually.
Australian Hotel Management Group Agreement

As per the agreement between the Nara Business Hotel and the Australian Hotel Management Group, the
AHMG is responsible for the Hotel’s management for a 40 year period at the rate of $1,000 per room per
annum.
Investor Returns Policy

The Nara Business Hotel policy requires it’s financial managers to provide a fixed return of $2,000,000 to
its investors per annum. Any additional income/cashflow will be reinvested into the business in the next
year.
APPENDIX: 01
ANNUAL YEAR-END FINANCIAL PERFORMANCE REVIEW FORM
NBH Annual Year-End Financial Performance Review
34
Name of Reviewer:
Date:
Year in Review:
What was the profit for the year in review? Please provide a short description and justification.
Was there any exceptional financial activity which has caused the year in review’s financial
performance to be different from previous years?
Were there any deviations greater than 5% in the year in review from the budget?
Has the year in review met it’s investor return requirements of $2,000,000? If not, please
explain.
Signature of Reviewer:
APPENDIX: 03
INTERNAL MEMO TEMPLATE
Nara Business Hotel – Internal Memo

Name:
34
Date:
Department:
Memo Subject:
Notes:
34

Learner Assessmenpt Ack: Sitxfin005 Manage Physical Assets

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Learner Assessmenpt Ack: Sitxfin005 Manage Physical Assets

Uploaded by

Copyright:

Available Formats

SITXFIN005 Manage physical assets

Learner AssessmenPt ack

Evidence recorded Evidence Type/ Method of assessment Evidence Submitted

Unit Assessment Part 1 Unit Knowledge Assessment (UKA) Yes / No

Unit Assessment Part 2 Unit Skils Assessment (USA) Yes / No

Element Performance Criteria

3. Coordinate 3.1.Prepare accurate equipment specifications to guide acquisition process.

maintenance requirements for different types of physical assets

formats for and inclusions of asset registers specified in performance evidence

simulated industry environment.

Assessment must ensure access to:

AQF SPECIFICATIONS FOR ASSESSMENTS

AQF Specifications for Assessments in Advanced Diploma Qualifications:

ACSF SPECIFICATIONS AND FOUNDATION SKILLS

The student will have access to the following:

UNIT ASSESSMENT PLAN

Evidence recorded Evidence Type/ Method of assessment Evidence Submitted

Unit Assessment Part 1 Unit Knowledge Assessment (UKA) Yes / No

Unit Assessment Part 2 Unit Skills Assessment (USA) Yes / No

UNIT KNOWLEDGE ASSESSMENT

STUDENT TO COMPLETE AND SUBMIT

• All questions must be answered correctly to be completed satisfactorily.

Answer all of the following questions.

1. Buildings and other structures

Physical asset Maintenance requirements

b) Diminishing Value Method

a) Prime cost method

-Expected useful life

-Expected residual value

-Annual depreciation amount = (cost - residual value) ÷ life

b) Diminishing Value Method

The formula for the diminishing value method is:

Supplier bid analysis

Example Environmental and financial benefits

STUDENT TO COMPLETE AND SUBMIT

1. CASE STUDY BASED PROJECT REPORT WITH ROLE PLAY TASK

Part 1. – Acquisition Plan

o accommodation establishments o commercial kitchens o restaurants and bars

✓ Emergency Evacuations testing

✓ Software inventory and installation.

✓ Anti-virus and anti-malware management.

✓ User's activities monitoring.

✓ Cleaning of garden on daily basis

✓ Hoses and sprinklers maintenance and repair if needed.

✓ Security of asset to avoid theft and damage.

Ozi Cleaning1 : $88,000 White Cleaning 2 : $85,000 Best Cleaning 3: $87,000

Beauty Garden 1: $40,000 BTS Garden 2: $35,000 Green Garden 3: $38.000

- Building ->White Cleaning 2 : $85,000

Computer System ->No1. Software 3: $170,990

• Details for detailed specifications

-Present all options in detail to related persons

-Finales the option

-Get approval from required authorities

-Discuss with staff regarding all specifications of the assets

-Legal advice fir formulating the contracts

-Fill up and mortgage loan papers

-Final cost calculation report

-Advice form accounts department

-Loan or mortgage loan papers

-Prepare to dispose old asset

-Do all calculations

-Consider any tax obligations