Assessor Resource

FNSACCT503B
Manage budgets and forecasts

Assessment tool

Version 1.0
Issue Date: April 2024


This unit requires the application of skills and knowledge required to prepare and manage budgets and forecasts. The unit encompasses preparing budgets, forecasting estimates and documenting budgets and monitoring budgeted outcomes.

The unit has application to those job functions that have responsibility for managing budgets and forecasts such as accountants and chief financial officers.

This unit requires the application of skills and knowledge required to prepare and manage budgets and forecasts. The unit encompasses preparing budgets, forecasting estimates and documenting budgets and monitoring budgeted outcomes.

The unit has application to those job functions that have responsibility for managing budgets and forecasts such as accountants and chief financial officers.

This unit covers the competency to prepare and manage budgets and forecasts.

This unit covers the competency to prepare and manage budgets and forecasts.

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

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.



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.

EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements

To achieve competency in this unit, a person must be able to demonstrate:

ability to prepare budgets

ability to forecast estimates

ability to document budget

ability to monitor budget outcomes

knowledge of accounting principles and practices

knowledge of organisational policies and procedures

knowledge of organisational chart of accounts

Critical aspects of evidence

Evidence required for demonstration of consistent performance:

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery/assessment relationship to other units:

This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.

Evidence is most relevant when provided through an integrated activity, which combines the elements of competency for the unit, or a cluster of units of competency.

Assessment requirements

Method of assessment:

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:

Assessment of this unit of competence requires access to suitable resources to demonstrate competence.

Assessment instruments, including personal planner and assessment record book.

Access to registered provider of assessment services.

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 KNOWLEDGE&SKILLS

Knowledge requirements include:

principles of budgetary control

forecasting techniques

principles of double entry bookkeeping

principles of statistical analysis and measures of variance

organisational procedures and policies

principles and practices of accrual accounting

ethical considerations for budgetary forecasting and projections (eg strength of assumptions, forecast reliabilities)

principles of corporate governance

Skills requirements include:

interpersonal skills and communication skills (eg liaising, listening, consulting)

information technology use for the set up and analysis of spreadsheets

estimating, forecasting and analysis skills

reading and interpreting financial statements and reports

writing skills for reports and recommendations

numeracy for financial calculations and analysis

recording, gathering and classifying financial information

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Expenditure and revenue items may include:

revenue producing expenditures

occasional expenditures

discretionary expenditure

client and supplier payments (eg sales and commissions)

fees and charges

capital expenditure

community service obligation expenditure

sales

service fees

other revenues

Budgetsmay include:

sales budgets

purchase budgets

labour budgets

production budgets

manufacturing budgets

statement of financial performance

statement of financial position

cash budgets

Budget objectives may include:

annual planning

rolling forecasts (next period, monthly, next year)

strategic review (long term)

debt reduction

business expansion and growth

cost reduction

solvency

Stakeholders may include:

employees

clients

managers and company officers (eg company directors and board of management)

financial institutions

suppliers

ministers

chief executive officers

Milestones and performance indicators may include:

reports (quarterly, half yearly, annual)

compliance with scheduled payment dates

profits and losses

debt reduction targets

unit costs

Verifiable evidence and source documentation may include:

order and supplier documentation

invoices/receipts

financial institution statements

taxation and statutory returns

Datamay include:

cash flow projections

fixed costs

variable business costs

sales records and projections

Assumptions and parameters may include:

expenditure limits

productivity levels

cash and business returns

market share growth

competitors' behaviour

regulatory stability

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, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget 
Budget objectives are clear and consistent with organisational aims and projects 
Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation 
Milestones and performance indicators are identified and included in budgets to monitor financial performance 
Annual budgets are broken down into seasonal periods in accordance with operating trends 
Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation 
Relevant data for forecasts are identified and changes in circumstances anticipated 
Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies 
Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies 
Data is presented in a format that is easily understood and appropriate to budget reporting 
Reports are completed within timelines and distributed for specified periods and projects 
Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis 
 
 
 
Budget variances are prepared in accordance with organisational procedures 
Budget variances are analysed 
Recommendations based on the analysis are made to client/designated person 
Budget processes are reviewed and implemented as required 

Forms

Assessment Cover Sheet

FNSACCT503B - Manage budgets and forecasts
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

FNSACCT503B - Manage budgets and forecasts

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: