Assessor Resource

CPPDSM4086
Oversee preparation of strata community budgets

Assessment tool

Version 1.0
Issue Date: March 2024


This unit of competency specifies the outcomes required to oversee the preparation of the annual budget for a strata community. It includes gathering budget information, identifying projected income and expenditure, overseeing the preparation of a budget, and presenting the budget to the strata community.

The unit supports the work of those involved in preparing budgets for strata communities. It applies to strata managers.

Licensing, legislative, regulatory or certification requirements apply to this unit in some States and Territories. Relevant state and territory regulatory authorities should be consulted to confirm those requirements.

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



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.

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions.

1.

Gather and analyse relevant budget information for strata community.

1.1.

Legislative provisions relating to strata community administrative funds, fee and contribution levies, as well as sinking funds and fees, are identified.

1.2.

Budgeting method is selected.

1.3.

Previous year’s budget performance is reviewed.

1.4.

Budget planning information is collated.

1.5.

Strata community’s expenditure priorities are identified.

2.

Identify and document projected income and expenditure.

2.1.

Sources of income and expenditure are identified.

2.2.

Estimates of expenditure relating to administrative activities, including repairs and maintenance, are prepared.

2.3.

Potential variations to income and expenditure estimates are identified and their impact on overall budget is assessed.

2.4.

Identified items are documented and stored for easy retrieval.

3.

Oversee budget preparation.

3.1.

Budget preparation is coordinated in consultation with owners committee and professional financial advisors.

3.2.

Budget documentation is reviewed and where necessary clarification is sought from owners committee or professional financial advisors.

3.3.

Expenditure commitments are checked against final income estimates.

3.4.

Cash flow forecasts are prepared.

3.5.

Contingencies are identified and included in draft budget.

3.6.

Draft budget is reviewed and modifications are proposed as required.

4.

Present strata community budget.

4.1.

Owner’s committee is engaged in finalising and approving draft budget.

4.2.

Draft budget and schedule of contribution levies and fees are presented to strata community for approval.

4.3.

Budget is regularly reviewed and variances are reported to owners committee.

A person demonstrating competency in this unit must satisfy all of the elements, performance criteria, foundation skills and range of conditions of this unit.

The person must also oversee the preparation of the annual budget for one strata community, in which the work must involve:

identifying typical information to be included in budget

recognising when budget indicates expenditure is greater than income, and suggesting modifications that will bring it into balance

overseeing the preparation of budget in collaboration with others in a manner that meets the strata community’s identified needs.

A person demonstrating competency in this unit must demonstrate knowledge of:

components of a typical budget

concept of and procedures for financial contingency planning

concept of strata community control and how it applies to budgetary decision making

provisions of federal, state or territory legislation and funding body requirements that affect how finances and assets can be used by strata communities

sources of income and expenditure for strata communities

standard budgeting procedures.

The following must be present and available to learners during assessment activities:

equipment:

computer system with internet, email and printing facilities

specifications:

organisational policies and procedures relating to budget preparation

relevant codes, standards, legislation and regulations relating to preparing budgets for strata communities

relationship with team members and supervisor:

member of a work team in a property industry context.

Assessor requirements

As a minimum, assessors must satisfy the assessor requirements in the Standards for Registered Training Organisations (RTOs) current at the time of assessment.


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.

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions.

1.

Gather and analyse relevant budget information for strata community.

1.1.

Legislative provisions relating to strata community administrative funds, fee and contribution levies, as well as sinking funds and fees, are identified.

1.2.

Budgeting method is selected.

1.3.

Previous year’s budget performance is reviewed.

1.4.

Budget planning information is collated.

1.5.

Strata community’s expenditure priorities are identified.

2.

Identify and document projected income and expenditure.

2.1.

Sources of income and expenditure are identified.

2.2.

Estimates of expenditure relating to administrative activities, including repairs and maintenance, are prepared.

2.3.

Potential variations to income and expenditure estimates are identified and their impact on overall budget is assessed.

2.4.

Identified items are documented and stored for easy retrieval.

3.

Oversee budget preparation.

3.1.

Budget preparation is coordinated in consultation with owners committee and professional financial advisors.

3.2.

Budget documentation is reviewed and where necessary clarification is sought from owners committee or professional financial advisors.

3.3.

Expenditure commitments are checked against final income estimates.

3.4.

Cash flow forecasts are prepared.

3.5.

Contingencies are identified and included in draft budget.

3.6.

Draft budget is reviewed and modifications are proposed as required.

4.

Present strata community budget.

4.1.

Owner’s committee is engaged in finalising and approving draft budget.

4.2.

Draft budget and schedule of contribution levies and fees are presented to strata community for approval.

4.3.

Budget is regularly reviewed and variances are reported to owners committee.

This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below.

Budgeting method must include:

historical

zero.

Sources of income must include:

bank interest

contribution levies

embedded network

fees from owners corporation records

interest from investments

penalty interest

recovered fees, such as from debt collection or insurance excess

rental income.

Sources of expenditure must may include:

debt collection cost

insurance

grounds

strata manager

utilities.

A person demonstrating competency in this unit must satisfy all of the elements, performance criteria, foundation skills and range of conditions of this unit.

The person must also oversee the preparation of the annual budget for one strata community, in which the work must involve:

identifying typical information to be included in budget

recognising when budget indicates expenditure is greater than income, and suggesting modifications that will bring it into balance

overseeing the preparation of budget in collaboration with others in a manner that meets the strata community’s identified needs.

A person demonstrating competency in this unit must demonstrate knowledge of:

components of a typical budget

concept of and procedures for financial contingency planning

concept of strata community control and how it applies to budgetary decision making

provisions of federal, state or territory legislation and funding body requirements that affect how finances and assets can be used by strata communities

sources of income and expenditure for strata communities

standard budgeting procedures.

The following must be present and available to learners during assessment activities:

equipment:

computer system with internet, email and printing facilities

specifications:

organisational policies and procedures relating to budget preparation

relevant codes, standards, legislation and regulations relating to preparing budgets for strata communities

relationship with team members and supervisor:

member of a work team in a property industry context.

Assessor requirements

As a minimum, assessors must satisfy the assessor requirements in the Standards for Registered Training Organisations (RTOs) current at the time of assessment.

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
Legislative provisions relating to strata community administrative funds, fee and contribution levies, as well as sinking funds and fees, are identified. 
Budgeting method is selected. 
Previous year’s budget performance is reviewed. 
Budget planning information is collated. 
Strata community’s expenditure priorities are identified. 
Sources of income and expenditure are identified. 
Estimates of expenditure relating to administrative activities, including repairs and maintenance, are prepared. 
Potential variations to income and expenditure estimates are identified and their impact on overall budget is assessed. 
Identified items are documented and stored for easy retrieval. 
Budget preparation is coordinated in consultation with owners committee and professional financial advisors. 
Budget documentation is reviewed and where necessary clarification is sought from owners committee or professional financial advisors. 
Expenditure commitments are checked against final income estimates. 
Cash flow forecasts are prepared. 
Contingencies are identified and included in draft budget. 
Draft budget is reviewed and modifications are proposed as required. 
Owner’s committee is engaged in finalising and approving draft budget. 
Draft budget and schedule of contribution levies and fees are presented to strata community for approval. 
Budget is regularly reviewed and variances are reported to owners committee. 

Forms

Assessment Cover Sheet

CPPDSM4086 - Oversee preparation of strata community budgets
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:

Signature:

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Assessment Record Sheet

CPPDSM4086 - Oversee preparation of strata community budgets

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: