• BSBMGT503A - Prepare budgets and financial plans

Assessor Resource

BSBMGT503A
Prepare budgets and financial plans

Assessment tool

Version 1.0
Issue Date: March 2024


Not applicable.

This unit covers the preparation of financial plans and budgets by operational/non-financial managers, as required by their particular organisation.

This unit is related to BSBMGT504A Manage budgets and financial plans.

This unit covers the preparation of financial plans and budgets by operational/non-financial managers, as required by their particular organisation.

This unit is related to BSBMGT504A Manage budgets and financial plans.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Not applicable.


Employability Skills

Not applicable.




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 identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement.

Critical Aspects of Evidence

Each of the elements needs to be clearly evidenced, both in terms of outcome and process, but this can be achieved through a holistic project approach to assessment

Evidence needs to determine that people not only have done and can do what is required, but that they understand why these activities need to be undertaken

Evidence of preparation and negotiation of proposed with clear links to strategic and operational plans

OHS considerations may include:

sufficient resources for OHS in strategic and operational plans

proposals include OHS risk assessment and control

proposals meet OHS legislative requirements and address organisational OHS objectives

Underpinning Knowledge*

* At this level the learner must demonstrate understanding of a broad knowledge base incorporating theoretical concepts, with substantial depth in some areas.

Relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

Financial planning within the organisation

Budgeting

Organisation's objectives and plans (strategic, tactical and operational)

Consultative methods and processes

Capital investment evaluation techniques

Performance measurement

Organisation roles in respect to financial delegations, accountabilities and responsibilities

Standards for organisational record-keeping and audit requirements

Underpinning Skills

Analytical skills to analyse and interpret relevant financial information

Financial planning skills to develop formal estimates of reviews, costs, cash flows and logistic requirements

Communication/consultation skills to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input

Cost and benefit analysis skills to produce balanced arguments to support financial proposals

Risk management skills to assess probability and consequences of any potential negative event

Investment analysis skills to evaluate capital expenditure proposals (NPV, IROR, etc)

Negotiation skills to negotiate agreement on budgets and financial plans with the relevant managers

Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Context/s of Assessment

Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting, analysing and organising information (Level 3) - to support budget proposals

Communicating ideas and information (Level 3) - to develop a communication plan for the budget

Planning and organising activities (Level 3) - to develop budgets

Working with teams and others (Level 3) - to ensure appropriate groups and individuals participate in the process

Using mathematical ideas and techniques (Level 2) - to build the budget and other financial plans

Solving problems (Level 3) - to successfully negotiate commitment to the plans

Using technology (Level 2) - to assemble the plans and communicate them to users of the plans

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies

The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement.

Critical Aspects of Evidence

Each of the elements needs to be clearly evidenced, both in terms of outcome and process, but this can be achieved through a holistic project approach to assessment

Evidence needs to determine that people not only have done and can do what is required, but that they understand why these activities need to be undertaken

Evidence of preparation and negotiation of proposed with clear links to strategic and operational plans

OHS considerations may include:

sufficient resources for OHS in strategic and operational plans

proposals include OHS risk assessment and control

proposals meet OHS legislative requirements and address organisational OHS objectives

Underpinning Knowledge*

* At this level the learner must demonstrate understanding of a broad knowledge base incorporating theoretical concepts, with substantial depth in some areas.

Relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

Financial planning within the organisation

Budgeting

Organisation's objectives and plans (strategic, tactical and operational)

Consultative methods and processes

Capital investment evaluation techniques

Performance measurement

Organisation roles in respect to financial delegations, accountabilities and responsibilities

Standards for organisational record-keeping and audit requirements

Underpinning Skills

Analytical skills to analyse and interpret relevant financial information

Financial planning skills to develop formal estimates of reviews, costs, cash flows and logistic requirements

Communication/consultation skills to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input

Cost and benefit analysis skills to produce balanced arguments to support financial proposals

Risk management skills to assess probability and consequences of any potential negative event

Investment analysis skills to evaluate capital expenditure proposals (NPV, IROR, etc)

Negotiation skills to negotiate agreement on budgets and financial plans with the relevant managers

Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Context/s of Assessment

Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting, analysing and organising information (Level 3) - to support budget proposals

Communicating ideas and information (Level 3) - to develop a communication plan for the budget

Planning and organising activities (Level 3) - to develop budgets

Working with teams and others (Level 3) - to ensure appropriate groups and individuals participate in the process

Using mathematical ideas and techniques (Level 2) - to build the budget and other financial plans

Solving problems (Level 3) - to successfully negotiate commitment to the plans

Using technology (Level 2) - to assemble the plans and communicate them to users of the plans

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies


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.

Not applicable.

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Strategic opportunities may include:

new product/service development

new models/revisions of products/services

expansion/contraction of operational activities

alliances/joint ventures

outsourcing/in-sourcing

Budgets and plans may include:

operation/production budgets

financial budgets

sales budgets

capital expenditure budgets

cash flow plans

Relevant groups and individuals means:

all personnel within the organisation affected by the budgets and financial plans being developed

Investment target rates refers to:

the minimum percentage rate of return required by the organisation for a capital investment project to proceed

Capital expenditure means:

those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects

Legal and ethical obligations means:

compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation's policies and values

Supporting evidence may include:

cost/benefit analyses

risk management plans

market research results

net present value

interest rate of return

pay pack calculations

Delegations means:

the decision-making accountabilities relating to the person's position description and/or other written and verbal delegations

Accountabilities and responsibilities means:

clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Strategic opportunities may include:

new product/service development

new models/revisions of products/services

expansion/contraction of operational activities

alliances/joint ventures

outsourcing/in-sourcing

Budgets and plans may include:

operation/production budgets

financial budgets

sales budgets

capital expenditure budgets

cash flow plans

Relevant groups and individuals means:

all personnel within the organisation affected by the budgets and financial plans being developed

Investment target rates refers to:

the minimum percentage rate of return required by the organisation for a capital investment project to proceed

Capital expenditure means:

those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects

Legal and ethical obligations means:

compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation's policies and values

Supporting evidence may include:

cost/benefit analyses

risk management plans

market research results

net present value

interest rate of return

pay pack calculations

Delegations means:

the decision-making accountabilities relating to the person's position description and/or other written and verbal delegations

Accountabilities and responsibilities means:

clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing

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
Strategic opportunities are expressed in terms of tactical and operational objectives 
Tactical and operational objectives are converted into special projects or work programs 
Financial trends are analysed and interpreted in the context of the organisational strategic objectives 
Financial planning objectives, process timeframes and resources are clearly identified 
Individuals and groups are given responsibility for the development of specific budgets and plans 
Consultation occurs with all relevant groups and individuals throughout the organisation 
Proposals are developed taking account of past experience, present trends and future expectations 
Outcomes of proposals are clearly linked to organisational strategic objectives 
Realistic cost benefit and risk analyses/management plans are incorporated into all proposals 
Organisational investment target rates are met for capital expenditure proposals 
Performance measures and tactics for monitoring and control processes are identified for each proposal/action 
Proposals comply with the organisation's values, policies, Code of Conduct, legal and ethical obligations 
Proposals are developed within the agreed timeframes 
Supporting evidence is valid and sufficient to allow proper evaluation of the proposals 
Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans 
Links to the achievement of organisational strategic objectives are identified and agreed 
Outcomes are confirmed in terms of clear, concise objectives and timeframes 
Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans 
Budgets and plans incorporate the outcomes of negotiations and meet organisation's approval processes 
Delegations, accountabilities and responsibilities are agreed and confirmed in writing 
Final budget and plans are clearly documented and a communication plan developed 

Forms

Assessment Cover Sheet

BSBMGT503A - Prepare budgets and financial plans
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

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Assessor name:

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Assessment Record Sheet

BSBMGT503A - Prepare budgets and financial plans

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: