2009 DECA Ontario Provincials

ACT Oral Event 2 Proudly sponsored by

OCCUPATIONAL CATEGORY Accounting Application Series INSTRUCTIONAL AREA Financial Analysis

PARTICIPANT INSTRUCTIONS
PROCEDURES 1. The event will be presented to you through your reading of these instructions, including the Performance Indicators and Event Situation. You will have up to 10 minutes to review this information to determine how you will handle the role-play situation and demonstrate the performance indicators of this event. During the preparation period, you may make notes to use during the role-play situation. 2. You will give an ID label to your adult assistant during the preparation time. 3. You will have up to 10 minutes to role-play your situation with a judge (you may have more than one judge). 4. You will be evaluated on how well you meet the performance indicators of this event. 5. Turn in all your notes and event materials when you have completed the role-play.

PERFORMANCE INDICATORS 1. Maintain daily financial transactions. 2. Prepare cash flow statements. 3. Interpret financial statements.

Students Demonstrating Excellence Celebrating Achievement since 1979

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4. Explain cash-control procedures. 5. Make oral presentations.

2009 DECA Ontario Provincials ACT Oral Event 2 EVENT SITUATION You are to assume the role of treasurer of the DELTA EPSILON CHI FOUNDATION for PROFESSIONAL EXCELLENCE UNIVERSITY. Your faculty advisor has asked you to prepare a T account for last July and discuss it with him/her. The foundation was originally set up by alumni as a 501c3 not for profit foundation as a way to fund the expenses of the chapter including travel to the International Career Development Conference. Your faculty advisor (judge) has asked you to clean up a mess left by the graduating treasurer. Apparently, the former treasurer has not worked on the cash account for months, and you must start with last Julys cash account because the foundation operates on a fiscal year basis. Here is what you know about what went on in July of last year: 7-1 7-31 7-1 7-9 7-31 7-14 7-5 7-14 7-2 7-7 7-30 7-18 7-23 7-31 Sales from Senior Gala Tickets, $2,000.00. Computer expense for ink cartridges, $50.00 Borrowed money from University for CDC, $2,000.00 Cookie Sales in Student Union to Soccer Camp Participants, $270.00 University office rent, $178.00 Flower Sale Income, $90.00 Advisors Annual Expense Stipend, $800.00 Alumni Donation, $45.00 Paper Purchase, $180.00 Postage Expense, $150.00 Alumni Donation, $80.00 University Copy Machine Expense, $50.00 Phone Bill, $60.00 Internet expenses included Google and Yahoo Search Words, $250.00

You are to prepare a T account showing the foundations cash position for the start of the fiscal year. Assume there is a beginning balance of $0.00 in the account. You will discuss the preparation of the cash analysis with your faculty advisor (judge). Be prepared to justify each entry on the T account, as this report will be included in annual foundation report to the IRS. You will explain your account to the faculty advisor (judge) in a role-play to take place in the faculty advisors (judges) office. The faculty advisor (judge) will begin the role-play by greeting you and asking you to explain why you developed the T account as you did. After you have explained the T account and have answered the faculty advisors (judges) questions, the faculty advisor (judge) will conclude the role-play by thanking you for your work.

2009 DECA Ontario Provincials

ACT Oral Event 2

JUDGES INSTRUCTIONS
DIRECTIONS, PROCEDURES AND JUDGES ROLE In preparation for this event, you should review the following information with your event manager and other judges: 1. 2. 3. Procedures and Performance Indicators Event Situation Judge Role-play Characterization Participants may conduct a slightly different type of meeting and/or discussion with you each time; however, it is important that the information you provide and the questions you ask be uniform for every participant. Judges Evaluation Instructions and Judges Evaluation Form Please use a critical and consistent eye in rating each participant.

4.

JUDGE ROLE-PLAY CHARACTERIZATION You are to assume the role of the Delta Epsilon Chi faculty advisor at PROFESSIONAL EXCELLENCE UNIVERSITY. You have asked the newly elected treasurer (participant) of the DELTA EPSILON CHI FOUNDATION to organize last Julys cash account and discuss it with you. As a part of your duties as faculty advisor, you advise the chapter and serve as a trustee for the PROFESSIONAL EXCELLENCE DELTA EPSILON CHI FOUNDATION. The foundation was originally set up as a 501c3 not for profit foundation by alumni as a way to fund the expenses of the chapter including travel to the International Career Development Conference. You have asked the newly elected Delta Epsilon Chi treasurer (participant) to clean up a mess left by the graduating treasurer that can adversely impact the solvency of the DELTA EPSILON CHI FOUNDATION. Apparently, the former treasurer did not work on the cash account for months. You have asked the incoming treasurer (participant) to prepare last Julys cash account, because the foundation operates on a fiscal year basis. Julys cash position is the jumping off point for the remainder of the fiscal year, and you do not want the treasurer (participant) to go beyond the first month without conferring with you. Here is what you know about what went on in July: 7-1 Sales from Senior Gala Tickets, $2,000.00. 7-31 Computer expense for ink cartridges, $50.00 7-1 Borrowed money from University for CDC, $2,000.00 7-9 Cookie Sales in Student Union to Soccer Camp Participants, $270.00 7-31 University office rent, $178.00 7-14 Flower Sale Income, $90.00 7-5 Advisors Annual Expense Stipend, $800.00 7-14 Alumni Donation, $45.00 7-2 Paper Purchase, $180.00 7-7 Postage Expense, $150.00 7-30 Alumni Donation, $80.00 7-18 University Copy Machine Expense, $50.00 7-23 Phone Bill, $60.00 7-31 Internet expenses included Google and Yahoo Search Words, $250.00
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2009 DECA Ontario Provincials ACT Oral Event 2 You have asked the new treasurer (participant) to prepare a T-account showing the foundations cash position for the start of the fiscal year. He/she is to assume there is a beginning balance of $0.00 in the account. You would like the newly elected treasurer (participant) to discuss the cash analysis with you. The treasurer (participant) should be prepared to justify each entry on the T account as this report will be included in annual foundation report to the IRS. The participant will explain the account to you in a role-play to take place in your office. You will begin the role-play by greeting the participant and asking why he/she developed the T account in this manner. During the course of the role-play you are to ask the following questions of each participant:
1.

What are some implications to PROFESSIONAL EXCELLENCE UNIVERSITY, since this report will be included in the annual foundation report to the IRS?

2. What are the advantages and disadvantages of double entry accounting? Once the treasurer (participant) has explained the T account and has answered your questions, you will conclude the role-play by thanking the treasurer (participant) for the work. You are not to make any comments after the event is over except to thank the participant.

Here is how the T account should look when the participant presents it to you: The order may vary, but dates and amounts should be very close. The balance must be exact. Beg. Bal $0.00 DR 7-1 2,000.00, Sales 7-1 2,000.00 University Loan 7-9 270.00 Sales 7-14 90.00 Sales 7-14 45.00 Donation 7-30 80.00 Donation Cash CR

$4,485.00 -$1,718.00 $2,767.00 Balance Role Play Answers:

7-2 180.00 Supplies (Paper) 7-5 800.00 Advisor Expense 7-7 150.00 Postage 7-18 50.00 Copy Machine 7-23 60.00 Phone 7-31 250.00 Internet 7-31 178.00 Rent 7-31 50.00 Ink $1,718.00

2009 DECA Ontario Provincials ACT Oral Event 2 1. What are some implications to our chapter since this report will be included in the annual foundation report to the IRS? Answers will vary. Tax implications, need for accuracy, future of the foundation, audit implications, etc. 2. What are the advantages and disadvantages of double entry accounting? Again answers will vary. Advantage: accuracy by being able to double-check. Disadvantage: time-consuming.

2009 DECA Ontario Provincials

ACT Oral Event 2

JUDGES EVALUATION INSTRUCTIONS

Evaluation Form Information The participants are to be evaluated on their ability to perform the specific performance indicators stated on the cover sheet of this event and restated on the Judges Evaluation Form. Although you may see other performance indicators being demonstrated by the participants, those listed in the Performance Indicators section are the critical ones you are measuring for this particular event. Evaluation Form Interpretation The evaluation levels listed below and the evaluation rating procedures should be discussed thoroughly with your event chairperson and the other judges to ensure complete and common understanding for judging consistency. Level of Evaluation Exceeds Expectations Interpretation Level Participant demonstrated the performance indicator in an extremely professional manner; greatly exceeds business standards; would rank in the top 10% of business personnel performing this performance indicator. Participant demonstrated the performance indicator in an acceptable and effective manner; meets at least minimal business standards; there would be no need for additional formalized training at this time; would rank in the 70-89th percentile of business personnel performing this performance indicator. Participant demonstrated the performance indicator with limited effectiveness; performance generally fell below minimal business standards; additional training would be required to improve knowledge, attitude and/or skills; would rank in the 50-69th percentile of business personnel performing this performance indicator. Participant demonstrated the performance indicator with little or no effectiveness; a great deal of formal training would be needed immediately; perhaps this person should seek other employment; would rank in

Meets Expectations

Below Expectations

Little/No Value

2009 DECA Ontario Provincials ACT Oral Event 2 the 0-49 percentile of business personnel performing this performance indicator.
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DO NOT WRITE ON THIS PAGE. RECORD ALL SCORES ON THE SCANTRON SHEET PROVIDED.

JUDGES EVALUATION FORM

ACT-09 Financial Analysis

DID THE PARTICIPANT: 1. Maintain daily financial transactions?

Little/No Value 0, 2 Attempts at maintaining daily financial transactions were inadequate or weak. Below Expectations 4, 6, 8 Adequately maintained daily financial transactions. Meets Expectations 10, 12, 14 Effectively maintained daily financial transactions. Exceeds Expectations 16, 18 Very effectively maintained daily financial transactions.

2. Prepare cash flow statements?

Little/No Value 0, 2 Attempts at preparing the cash flow statement were inadequate or weak. Below Expectations 4, 6, 8 Adequately prepared the cash flow statement. Meets Expectations 10, 12, 14 Effectively prepared the cash flow statement. Exceeds Expectations 16, 18 Very effectively prepared the cash flow statement.

3. Interpret financial statements?

Little/No Value 0, 2 Attempts at interpreting financial statements were weak or incorrect. Below Expectations 4, 6, 8 Adequately interpreted financial statements. Meets Expectations 10, 12, 14 Effectively interpreted financial statements. Exceeds Expectations 16, 18 Interpreted financial statements exceedingly well.

4. Explain cash-control procedures?

Little/No Value 0, 2 Attempts at explaining cashcontrol procedures were inadequate or unclear. Below Expectations 4, 6, 8 Adequately explained cash control procedures. Meets Expectations 10, 12, 14 Effectively explained cash control procedures. Exceeds Expectations 16, 18 Very effectively explained cash control procedures.

5. Make oral presentations?

Little/No Value 0, 2 Attempts at making an oral presentation were inadequate or weak. Below Expectations 4, 6, 8 Made an adequate oral presentation. Meets Expectations 10, 12, 14 Made an effective oral presentation. Exceeds Expectations 16, 18 Made a very effective oral presentation.

6. Overall impression and response to the judges questions.

Little/No Value 0, 1 Demonstrated few skills; could not answer the judges questions. Below Expectations 2, 3, 4 Demonstrated limited ability to link some skills; answered the judges questions adequately. Meets Expectations 5, 6, 7 Demonstrated the specified skills; answered the judges questions effectively. Exceeds Expectations 8, 9, 10 Demonstrated skills confidently and professionally; answered the judges questions very effectively and thoroughly.

DO NOT WRITE ON THIS PAGE. RECORD ALL SCORES ON THE SCANTRON SHEET PROVIDED.

Judges Initials

TOTAL SCORE

10