Assessor Resource

CUEFIN01B
Develop a budget

Assessment tool

Version 1.0
Issue Date: April 2024


Not applicable.

This unit describes the skills and knowledge required to develop a budget. The nature and purpose of the budget will vary according to the work context, but the unit focuses on the key skills of analysing financial information to inform the budget development process and the actual development of a budget. Skills relating to the monitoring of budget performance are found in the unit CUEFIN02B - Manage a budget. Combined assessment of these units is appropriate.

This unit describes the skills and knowledge required to develop a budget. The nature and purpose of the budget will vary according to the work context, but the unit focuses on the key skills of analysing financial information to inform the budget development process and the actual development of a budget. Skills relating to the monitoring of budget performance are found in the unit CUEFIN02B - Manage a budget. Combined assessment of these units is appropriate

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.

Underpinning skills and knowledge

Assessment must include evidence of the following knowledge and skills:

context and typical processes for the budget development process within a given industry context

accounting principles and practices which impact on budget preparation

budget preparation techniques, including:

information required for budget preparation

components of a budget

techniques for making budget estimates

type of supporting information required

presentation techniques/formats for budgets.

negotiating skills in relation to budgetary planning.

Linkages to other units

It is recommended that this unit be assessed and/or trained or after the following unit:

CUEFIN02B - Manage a budget.

Critical aspects of evidence

The following evidence is critical to the judgement of competence in this unit:

understanding of the technical budget preparation process and accounting procedures that must be followed

sound analysis of the factors that impact on the budget development process

preparation of a realistic and accurate budget within the relevant workplace context.

Method and context of assessment

The assessment context must provide for:

project or work activities that allow for the development of a budget for a specific workplace context

involvement of others in the budget development process

use of industry-current technology for the budget preparation process.

Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:

evaluation of budgets prepared by the candidate, including comparison with actual budgetary performance

evaluation of reports prepared by the candidate detailing the processes undertaken to develop a budget

case studies and problem solving to assess application of principles of budget development to different workplace contexts

review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.

Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).

Resource requirements

Assessment of this unit requires access to:

industry-current technology for budget development

sources of information on expenditure and income.

Key competencies in this unit

Key competencies are built into all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.

Level 1 = Perform

Level 2 = Administer and Manage

Level 3 = Design and Evaluate

Collecting, analysing and organising ideas and information (3)

Gathering and analysing data to assist in the budget development process.

Communicating ideas and information (2)

Providing a briefing on a draft budget.

Planning and organising activities (2)

Organising the consultation process during budget development.

Working with others and in teams (2)

Discussing/negotiating potential budget adjustments with colleagues.

Solving problems (3)

Investigating options to address budgetary limitations.

Using mathematical ideas and techniques (2)

Developing different budget scenarios/estimates.

Using technology (2)

Using tools within an accounting software package.

Underpinning skills and knowledge

Assessment must include evidence of the following knowledge and skills:

context and typical processes for the budget development process within a given industry context

accounting principles and practices which impact on budget preparation

budget preparation techniques, including:

information required for budget preparation

components of a budget

techniques for making budget estimates

type of supporting information required

presentation techniques/formats for budgets.

negotiating skills in relation to budgetary planning.

Linkages to other units

It is recommended that this unit be assessed and/or trained or after the following unit:

CUEFIN02B - Manage a budget.

Critical aspects of evidence

The following evidence is critical to the judgement of competence in this unit:

understanding of the technical budget preparation process and accounting procedures that must be followed

sound analysis of the factors that impact on the budget development process

preparation of a realistic and accurate budget within the relevant workplace context.

Method and context of assessment

The assessment context must provide for:

project or work activities that allow for the development of a budget for a specific workplace context

involvement of others in the budget development process

use of industry-current technology for the budget preparation process.

Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:

evaluation of budgets prepared by the candidate, including comparison with actual budgetary performance

evaluation of reports prepared by the candidate detailing the processes undertaken to develop a budget

case studies and problem solving to assess application of principles of budget development to different workplace contexts

review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.

Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).

Resource requirements

Assessment of this unit requires access to:

industry-current technology for budget development

sources of information on expenditure and income.

Key competencies in this unit

Key competencies are built into all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.

Level 1 = Perform

Level 2 = Administer and Manage

Level 3 = Design and Evaluate

Collecting, analysing and organising ideas and information (3)

Gathering and analysing data to assist in the budget development process.

Communicating ideas and information (2)

Providing a briefing on a draft budget.

Planning and organising activities (2)

Organising the consultation process during budget development.

Working with others and in teams (2)

Discussing/negotiating potential budget adjustments with colleagues.

Solving problems (3)

Investigating options to address budgetary limitations.

Using mathematical ideas and techniques (2)

Developing different budget scenarios/estimates.

Using technology (2)

Using tools within an accounting software package.

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 following explanations identify how this unit may be applied in different workplaces, sectors and circumstances.

Budgets may include:

project

departmental

event

sales

grant funding

cash

budgets for a small business.

Relevant colleagues/personnel involved in budget development may include:

creative personnel

technical personnel

management

funding bodies

investors

sponsors.

Data required for budget preparation may include:

performance data from previous projects/periods

financial information from suppliers

customer or supplier research

management policies and procedures

funding body policies and procedures/limitations

budget preparation guidelines

financial proposals from stakeholders.

Internal or external issues that could impact on budget development may include:

activity/project objectives

price movement for different supplies

scope of the project

venue availability (for events)

human resource requirements

timing of project

new legislation or regulation

safety issues

organisational objectives/changes in organisational objectives

required profit margins

change in economic conditions.

The following explanations identify how this unit may be applied in different workplaces, sectors and circumstances.

Budgets may include:

project

departmental

event

sales

grant funding

cash

budgets for a small business.

Relevant colleagues/personnel involved in budget development may include:

creative personnel

technical personnel

management

funding bodies

investors

sponsors.

Data required for budget preparation may include:

performance data from previous projects/periods

financial information from suppliers

customer or supplier research

management policies and procedures

funding body policies and procedures/limitations

budget preparation guidelines

financial proposals from stakeholders.

Internal or external issues that could impact on budget development may include:

activity/project objectives

price movement for different supplies

scope of the project

venue availability (for events)

human resource requirements

timing of project

new legislation or regulation

safety issues

organisational objectives/changes in organisational objectives

required profit margins

change in economic conditions.
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
Confirm the scope and nature of the activity for which budget is being developed with the appropriate personnel, including any guidelines or directives for budget development 
Correctly identify, access and analyse data required for budget preparation 
Analyse internal and external environmental factors to identify potential impacts on budget 
Determine budget parameters with estimates, based on research, consultation and negotiation with the appropriate personnel and organisation/project objectives 
Provide relevant colleagues with the opportunity to contribute to the budget planning process 
Draft budget based on analysis of all available information and in accordance with organisational policy 
Clearly identify and support income and expenditure estimates with valid, reliable and relevant information 
Assess and present options when appropriate 
Present recommendations clearly, concisely and in an appropriate format 
Circulate draft budget to the appropriate personnel for comment at the appropriate time 
Agree and incorporate modifications accurately and in consultation with colleagues 
Negotiate final budget in accordance with organisational procedures and policies 
Complete the final budget in required format within an agreed timeframe 
Inform appropriate personnel of the budget and its application within the relevant area of work, including reporting and financial management responsibilities 

Forms

Assessment Cover Sheet

CUEFIN01B - Develop a budget
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

CUEFIN01B - Develop a budget

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: