Assessor Resource

BSBMGT504A
Manage budgets and financial plans

Assessment tool

Version 1.0
Issue Date: March 2024


Not applicable.

This unit covers all of the significant aspects of financial management for operational managers who are not financial specialists. It emphasises the preparation of users of budgets/financial plans through communication and training and consistent surveillance over budget performance, with early intervention where required.

Consider co-assessment with BSBMGT503A Prepare budgets and financial plans.

This unit covers all of the significant aspects of financial management for operational managers who are not financial specialists. It emphasises the preparation of users of budgets/financial plans through communication and training and consistent surveillance over budget performance, with early intervention where required.

Consider co-assessment with BSBMGT503A Prepare 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

Evidence must cover all aspects of business operations in which financial management and decision-making occurs. Period activities relating to revenue expenditure and cash flow management, as well as capital expenditure proposals and capital budgeting, must be incorporated into the assessment

The role of the operational manager as a communicator and trainer in respect to the implementation of the budget needs, also must be integrated into the overall assessment, along with regular and quality reporting of budget performance

Evidence of analysis of budget performance and follow up action

OHS considerations may include:

establishment and maintenance of OHS records

assessment of OHS performance in financial and non-financial terms

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

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

Communication and training skills to ensure team members and other managers understand the budget/financial planning objectives and processes

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

Analysis skills to interpret positive and negative variances from budget/plan, determine the reasons therefore, and identify potential actions to remediate the situation

Systems management skills to ensure financial performance records are collected, maintained and properly reported

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 monitor budget performance

Communicating ideas and information (Level 3) - to ensure the budget and its impact on people is understood

Planning and organising activities (Level 3) - to train users in the elements of the budget which affect them

Working with teams and others (Level 3) - to review budget performance

Using mathematical ideas and techniques (Level 2) - to measure budget performance, calculate variances and present outcomes

Solving problems (Level 3) - to maintain operations within budget

Using technology (Level 2) - to manage budget performance and develop performance reports

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

Evidence must cover all aspects of business operations in which financial management and decision-making occurs. Period activities relating to revenue expenditure and cash flow management, as well as capital expenditure proposals and capital budgeting, must be incorporated into the assessment

The role of the operational manager as a communicator and trainer in respect to the implementation of the budget needs, also must be integrated into the overall assessment, along with regular and quality reporting of budget performance

Evidence of analysis of budget performance and follow up action

OHS considerations may include:

establishment and maintenance of OHS records

assessment of OHS performance in financial and non-financial terms

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

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

Communication and training skills to ensure team members and other managers understand the budget/financial planning objectives and processes

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

Analysis skills to interpret positive and negative variances from budget/plan, determine the reasons therefore, and identify potential actions to remediate the situation

Systems management skills to ensure financial performance records are collected, maintained and properly reported

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 monitor budget performance

Communicating ideas and information (Level 3) - to ensure the budget and its impact on people is understood

Planning and organising activities (Level 3) - to train users in the elements of the budget which affect them

Working with teams and others (Level 3) - to review budget performance

Using mathematical ideas and techniques (Level 2) - to measure budget performance, calculate variances and present outcomes

Solving problems (Level 3) - to maintain operations within budget

Using technology (Level 2) - to manage budget performance and develop performance reports

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

Training activities may include:

small group discussions

informal meetings

formal, structured competency standards/training

tele and video conferencing

e-learning

Delegations and budget accountabilities may include:

monitoring expenditure

authorising expenditure within limits

reporting on variances to budget/plan

taking remedial action within budget authority

Audit requirements refer to:

the internal standards required in the management of budgets and financial plans, approved by external/internal auditors

Risk management means:

the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur

Real time refers to:

on-line, instantaneous monitoring of performance/activities

Appropriate non financial objectives may include:

environmental

OHS

quality

market share

customer service

security or any other key result area

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

Training activities may include:

small group discussions

informal meetings

formal, structured competency standards/training

tele and video conferencing

e-learning

Delegations and budget accountabilities may include:

monitoring expenditure

authorising expenditure within limits

reporting on variances to budget/plan

taking remedial action within budget authority

Audit requirements refer to:

the internal standards required in the management of budgets and financial plans, approved by external/internal auditors

Risk management means:

the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur

Real time refers to:

on-line, instantaneous monitoring of performance/activities

Appropriate non financial objectives may include:

environmental

OHS

quality

market share

customer service

security or any other key result area

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
Budget/financial plan communication package reviewed by finance specialists 
Package is amended/revised where appropriate 
Training activities are undertaken with users of the budget and plans across the organisation 
All data and terms are defined and understood by the users of the plans 
Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities 
Delegations and budget accountabilities are confirmed in writing prior to budget period 
Funds are allocated in accordance with budget objectives and parameters 
Recording systems and documentation meet all audit requirements and legal obligations 
Risk management plans are implemented and contingency plans in place for all financial plans 
Performance is monitored and variances identified on a real time basis 
Variances are analysed in conjunction with relevant experts to determine cause and effect 
Remedial action is taken swiftly to minimise negative impact and maximise benefits 
Budgets and plans are renegotiated/restructured where necessary to optimise organisational performance 
Records of financial performance are properly maintained within organisational systems 
Financial performance is analysed and reported in a form and language appropriate to the audience 
Non financial objectives are reported in the context of overall organisational performance 
Strategies and plans are reviewed and updated to optimise organisational performance 

Forms

Assessment Cover Sheet

BSBMGT504A - Manage 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

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

BSBMGT504A - Manage 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: