Assessor Resource

LGAGCM707A
Use financial and economic information for strategic decision making

Assessment tool

Version 1.0
Issue Date: April 2024


This unit supports the attainment of skills and knowledge required for competent workplace performance in councils of all sizes. Knowledge of the legislation and regulations that provide the boundaries for the operation of councils is essential. The unique nature of councils, as a tier of government, directed by elected members and reflecting the needs of local communities must be appropriately reflected.

This unit covers the use and analysis of financial and economic information to achieve the objectives of the council. The use and interpretation of financial information to support business decision making, as well as the analysis and use of budget systems and reporting processes are addressed. The impact of micro and macro economic information on council and regional economic planning is also addressed.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.

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

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.

Overview of assessment requirements

A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making.

Critical aspects of evidence to be considered

The demonstrated ability to:

use and analyse financial and economic information to achieve council objectives

understand and apply tasks associated with interpreting and using the financial information outlined in the range statement

Context of assessment

Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.

Method of assessment

The following assessment methods are suggested:

preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit

observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies

written and oral questioning to assess knowledge and understanding

completion of workplace documentation

third-party reports from experienced practitioner

completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor

Evidence required for demonstration of consistent performance

Evidence should be gathered over a period of time in a range of actual or simulated management environments.

Resource implications

Access to a workplace or simulated case study that provides the following resources:

relevant council documents, such as strategic and operational plans

relevant local government legislation and regulations

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.

This describes the essential skills and knowledge and their level, required for this unit

Required Skills

high-level research, analysis and interpretation skills in relation to management accounting and finance

negotiation

numeracy skills to support budgeting, budget analysis and financial and economic analysis, including modelling

decision making

application of decision making strategies to a range of business and financial scenarios

Required Knowledge

relevant financial and accounting principles relating to analysis and interpretation of financial reports and resources

financial and accounting terminology and systems

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 in the Performance Criteria is detailed below.

Economic factors may include:

interest rates

regional, state and national economic conditions and trends

unemployment rates

inflation

government fiscal and monetary policies

consumer confidence

Financial information include:

accountant prepared reports

balance sheets

profit and loss statements

cash flow statements

financial ratios

budgets:

operational

departmental

council

estimated and actual cost and revenue

Performance indicators include:

return on investment

credit ratings

reductions in expenditure

increases in income

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
Financial resources required to achieve council objectives are identified and incorporated within budgets. 
Additional expenditure required is forecast and provisions are made for access to required finances. 
Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds. 
Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios. 
Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated. 
Financial performance of business units/councils are reviewed and reported appropriately. 
Different financial scenarios are identified and modelled to support decision-making process. 
Cost-benefit analysis is conducted to support viability of council activities. 
Appropriate financial advisers are consulted when using financial information to support business decisions. 
Accurate financial information is obtained and analysed when developing business unit plans. 
Decisions are made using updated financial information. 
Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded. 
Corrective action is taken when deviations in budgets occur, and variations are explained. 
Data on the use of financial resources is collected, analysed and reported appropriately. 
Recommendations for improving returns on financial resources are communicated to management. 
Performance indicators are discussed with managers and staff and agreed upon. 

Forms

Assessment Cover Sheet

LGAGCM707A - Use financial and economic information for strategic decision making
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

LGAGCM707A - Use financial and economic information for strategic decision making

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: