- BSBFIM501A - Manage budgets and financial plans
Assessor Resource
BSBFIM501A
Manage budgets and financial plans
Assessment tool
Version 1.0
Issue Date: April 2024
This unit addresses the requirement for managers to ensure that financial resources are used effectively. This is done by ensuring access to budget/s and ongoing monitoring expenditure against the budget/s.
The unit applies to managers working in small and large business environments and not for profit organisations.
This unit describes the performance outcomes, skills and knowledge required to undertake financial management within a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)
Employability Skills
This unit contains employability skills.
Evidence Required
List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. | |
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the following is essential: financial skills required to work with and interpret budgets, ageing summaries, cash flow, petty cash, GST, and profit and loss statements knowledge of the record keeping requirements for the ATO and for auditing purposes. |
Context of and specific resources for assessment | Assessment must ensure: access to appropriate documentation and resources normally used in the workplace. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: assessment of written reports indicating broad knowledge of managing budgets and managing financial resources in the organisation demonstration of techniques using financial record keeping software direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate oral or written questioning to assess knowledge of requirements for organisational record keeping and auditing review of contingency plans review of identification of cost variations and expenditure overruns evaluation of documentation reportingon budget and expenditure review of documentation identifying and recommending improvements to financial management processes. |
Guidance information for assessment | Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: other units from the Diploma of Management. |
Submission Requirements
List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here
Assessment task 1: [title] Due date:
(add new lines for each of the assessment tasks)
Assessment Tasks
Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
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Required skills |
numeracy skills to read and understand a budget and to update a budget technology skills to use software associated with financial record keeping. |
Required knowledge |
basic accounting principles organisational requirements related to financial management relevant legislation and current requirements of the Australian Taxation Office, including GST requirements for organisational record keeping and auditing principles and techniques involved in: budgeting cash flows electronic spreadsheets GST ledgers and financial statements profit and loss statements. |
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. | |
Budget/financial plans may include: | cash flow projections long-term budgets/plans operational plans short-term budgets/plans spreadsheet-based financial projections targets or key performance indicators for production, productivity, wastage, sales, income and expenditure |
Relevant personnel may include: | financial managers, accountants or financial controllers supervisors, other frontline managers |
Contingency plans may include: | contracting out or outsourcing human resources and other functions or tasks diversification of outcomes finding cheaper or lower quality raw materials and consumables increasing sales or production recycling and re-using rental, hire purchase or alternative means of procurement of required materials, equipment and stock restructuring of organisation to reduce labour costs risk identification, assessment and management processes seeking further funding strategies for reducing costs, wastage, stock or consumables succession planning |
Support may include: | access to specialist advice documentation of procedures help desk or identified experts within the organisation information briefings or sessions intranet-based information training including mentoring, coaching and shadowing |
Required roles may include: | arranging for use of corporate credit cards banking debt collection ensuring security, accuracy and currency of financial operations invoicing clients, customers and consumers maintaining journals, ledgers and other record keeping systems maintaining petty cash system purchasing and procurement wages and salaries payments and record keeping |
Resources and systems may include: | hardware and software human, physical or financial resources record keeping systems (electronic and paper-based) specialist advice or support |
Processes to monitor actual expenditure and to control costs across the work team include: | reporting of: assets consumables equipment expenditure income stock wastage |
Reporting may include data from: | bank statements credit card statements financial reports invoices and receipts ledgers and journals logs petty cash records spreadsheet-based records |
Data and information on the effectiveness of financial management processes may include records (paper-based and electronic) related to: | bank account records cash flow data contracts credit card receipts employee timesheets files of paid purchase and service invoices income and expenditure insurance reports invoices job costings petty cash receipts quotations taxation records wages/salaries books |
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist
| Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice | Yes | No | Comments/feedback |
|---|---|---|---|
| Access budget/financial plans for the work team | |||
| Clarify budget/financial plans with relevant personnel within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible | |||
| Negotiate any changes required to be made to budget/financial plans with relevant personnel within the organisation | |||
| Prepare contingency plans in the event that initial plans need to be varied | |||
| Disseminate relevant details of the agreed budget/financial plans to team members | |||
| Provide support to ensure that team members can competently perform required roles associated with the management of finances | |||
| Determine and access resources and systems to manage financial management processes within the work team | |||
| Implement processes to monitor actual expenditure and to control costs across the work team | |||
| Monitor expenditure and costs on an agreed cyclical basis to identify cost variations and expenditure overruns | |||
| Implement, monitor and modify contingency plans as required to maintain financial objectives | |||
| Report on budget and expenditure in accordance with organisational protocols | |||
| Collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team | |||
| Analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes | |||
| Implement and monitor agreed improvements in line with financial objectives of the work team and the organisation |
Forms
Assessment Cover Sheet
BSBFIM501A - Manage budgets and financial plans
Assessment task 1: [title]
Student name:
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I declare that the assessment tasks submitted for this unit are my own work.
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Result: Competent Not yet competent
Feedback to student
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Assessment Record Sheet
BSBFIM501A - Manage budgets and financial plans
Student name:
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Assessment task 1: [title] Result: Competent Not yet competent
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Feedback to student:
Overall assessment result: Competent Not yet competent
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