Assessor Resource

FNSACC608A
Evaluate organisation's financial performance

Assessment tool

Version 1.0
Issue Date: May 2024


This unit can be applied to all sectors within the financial services industry and has application to job functions that have responsibility for determining the organisation's financial performance such as an accountant.

This unit describes the performance outcomes, skills and knowledge required to evaluate returns to operations, determine short-term and long-term needs and evaluate an organisation's financial position and performance.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.

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

Prerequisites

FNSACC503A

Manage budgets and forecasts

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 ability to:

use standard financial analysis techniques and accounting techniques plus organisational policies and procedures to evaluate returns to operations

determine long and short-term organisational needs

review financial performance across an organisation.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to an integrated financial software system and data.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for 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.

Required skills

well-developed communication skills to:

evaluate an organisation's financial performance, using questioning of personnel and management for confirmation

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research skills for accessing and managing financial services information

well-developed literacy skills for analysingfinancial information and performance indicators and preparing forecasts, financial options and clear written advice

numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using integrated financial systems, spreadsheets and databases and internet information

learning skills to maintain knowledge of organisational performance best practice principles, processes and procedures

problem solving skills to identify performance issues that have the potential to impact on organisations and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule financial performance monitoring and reporting

Required knowledge

techniques for developing long and short-term plans

undertaking a SWOT analysis

duties of auditors

ethical considerations for compliance purposes

financial legislation such as:

taxable transactions

reporting requirements

principles of cash flow and budgetary control

principles of cost-benefit analysis and use of forecasting techniques

principles of internal control including statutory requirements

principles of risk management

organisational structures and lines of management authority

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.

Strengths and weaknesses may include:

budget estimates

cash flow schedules

financial monitoring

internal control compliance

revenue forecasts

unit costs.

Short-term and long-term obligations may include:

capital structure decisions

debt retirement

dividends

periodic payments such as:

leases

loans

salaries

superannuation

taxation payments.

Standard financial analysis techniques may include:

'what if' analysis

bivariate and multivariate analysis

break-even analysis

cost-benefit analysis

time series.

Financial priorities may include:

cost minimisation:

capital

recurrent costs

periodic monitoring and transparency of expenditure

rates of returns

revenue estimates

sales targets

Investments may include:

debentures

interest bearing accounts

plant and equipment

preference shares

property

shares and securities.

Financial options may include:

adjustment of borrowings

asset liquidation

budget absorption

cost recoveries

equity injections

expenditure reprioritisation

long-term investments

purchases.

Assets and liabilities may include:

cash

investments

loans, leases and debts

plant and equipment

property investments

shares, bonds and securities.

Organisational policies and procedures may include:

financial analysis assessments

financial management manuals

price and exchange parameters

recording and filing systems

reporting requirements

standard financial analysis techniques.

Standard accounting techniques may include:

break-even analysis

deprival asset valuations

direct allocation

discounted cash flows

impact statements

pay-back periods

pro rata and percentage apportionment

rates of return.

Risk strategies may include:

capital structure

comparative analysis

decision making authorities

forecasting

periodic reporting

policy statements

quantification of risks.

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
Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations 
Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance 
Investment returns are evaluated against risk, profit and capital budget requirements 
Resources required by organisation to meet short-term and long-term obligations are identified and costed using standard financial analysis techniques 
Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments 
Financial options are reviewed and analysis of a range of possible assets and liabilities to optimise the capital mix is conducted to support operations and trading need 
Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles 
Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques 
Forecasts made are justifiable given observed trends, information, events and assumptions with standard errors calculated to produce levels of accuracy suitable for planning purposes 
Forecasts are reviewed regularly in line with actual performance and alternative sources of information 
Risk strategies are assessed for long-term viability and harmonised with short-term goals and obligations 

Forms

Assessment Cover Sheet

FNSACC608A - Evaluate organisation's financial performance
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

FNSACC608A - Evaluate organisation's financial performance

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: