Assessor Resource

SIRXFIN005A
Manage operations to budget

Assessment tool

Version 1.0
Issue Date: March 2024


This unit applies to personnel with managerial responsibility who estimate expenditure, prepare budgets and monitor performance against those budgets within an appropriate business accounting system. It includes some supervision of other staff.

This unit describes the performance outcomes, skills and knowledge required to control cost expenditure while managing the overall activities of a wholesale or retail operational area to budget.

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

Prerequisites

Nil


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, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

negotiating, developing and implementing budgets according to business policy and procedures

managing and maintaining accounting systems according to business policy and procedures

monitoring, analysing and reporting on operational areas income and expenditure against budget

taking corrective actions, where appropriate, where income and expenditure performance is not being completed according to budget or business targets

consistently producing financial reports to standard business requirements over a period of time

consistently implementing policy and procedures for the reporting and recording of budgetary and financial information within an operational area

developing, advocating and gaining approval for an operational area's budget.

Context of and specific resources for assessment

Assessment must ensure access to:

a real or simulated work environment

business or sample policy and procedures in regard to financial management

an accounting system

budgetary information

a team involved in budget control.

Methods of assessment

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

observation of performance in the workplace

third-party reports from a supervisor

a case study

written or verbal questioning to assess knowledge and understanding

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

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.


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

Required skills

interpersonal skills to:

encourage team members to control costs

provide information to relevant personnel where potential occurs for budget under or overspend

negotiate budgets and provide information on budget decisions through clear and direct communication

ask questions to identify and confirm requirements

use language and concepts appropriate to cultural differences

use and interpret non-verbal communication

planning and self management skills to:

prepare budgets and monitor performance against those budgets within set timeframes

manage resources

literacy skills to:

write and present reports

interpret business policy and procedures

generate reports

numeracy skills in regard to:

budget calculation and control

using accounting systems

Required knowledge

principles and techniques in:

interpersonal communication

monitoring resource utilisation and costs

analysing efficiency and effectiveness

cost-benefit analysis

differential analysis

risk analysis

resource planning

interpreting and analysing budget and accounting documentation

information sources on product and supply arrangements for customers

business policy and procedures affecting job role or function

resource utilisation, including capital, material and human

business revenue

capital and overhead costs

interest rates

cost of stock, materials and equipment

accounting and reporting protocols and professional standards

staffing costs

operational costs

relevant legislation relating to finance management

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.

Company policy and procedures in regard to:

operating procedures and instructions

financial management

resource management

reporting mechanisms.

Information may be obtained by:

direct observation

accessing written reports

accessing numerical data.

Resources may include:

people

materials

equipment and technology

finances

time.

Team members may include:

full-time, part-time, casual or contract staff

people from a range of social, cultural and ethnic backgrounds

people with varying degrees of language and literacy levels.

Relevant personnel may include:

senior managers

team members.

Proposals may:

be long-term or short-term

include potential improvements in profitability

productivity

quality of service

environmental impact

working conditions

working relationships

team motivation.

Record-keeping systems may include:

manual

computerised.

Relevant legislation may include:

taxation law, including GST

superannuation guarantee

awards, workplace agreements, and other industrial arrangements

WHS

workplace relations

workers' compensation

industry codes of practice

transport, storage and handling of goods

Australian Competition and Consumer Commission provisions

Trade Practices and Fair Trading Acts.

Budget or target figures may encompass:

sales

cash flow

net profit

payroll

staff expenditure

capital

maintenance costs.

Review of management systems may include:

stakeholder consultation

modelling results

cost-benefit analysis

data analysis.

Audit mechanisms may be:

manual or electronic

cyclical

automated.

Budget decisions may vary according to:

key performance indicators

strategic objectives

cash flow

net profit or loss

market and sales indicators

brand value

quality standards and criteria

performance benchmarks.

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
Implement effective cost reduction measures, according to company policy and procedures. 
Assess and interpret information on costs and resource allocation. 
Encourage team members actively to control costs in their areas of responsibility. 
Implement recommendations promptly for improving cost reduction or communicate to relevant personnel. 
Monitor and maintain expenditure within budget targets according to business policy. 
Compare actual income and expenditure to budget targets at regular intervals according to business policy. 
Analyse gross profit and loss figures by business areas and compare with budget targets. 
Monitor net profit figures and report according to budget targets. 
Inform relevant personnel promptly where potential occurs for budget under or overspend. 
Take prompt corrective action where significant deviations from budget occur. 
Negotiate necessary changes to agreed budget allocations in advance of requirement. 
Authorise modifications to existing budgets according to business policy. 
Ensure estimates of costs and benefits are supported by valid, relevant information. 
Ensure final recommendations are supported by realistic alternatives and contain accurate, clear proposals. 
Ensure recommendations clearly indicate net benefits over designated timeframe and related changes in operations. 
Clarify contentious issues by further explanation. 
Compare estimates to actual costs and benefits to improve future proposals. 
Manage and maintain business policy and procedures in regard to record-keeping systems. 
Monitor and maintain business systems for recording sales figures, revenue and expenditure. 
Monitor and maintain systems for recording and retrieving financial, personnel and payroll information as required by business policy and relevant legislation. 
Observe business policy and procedures in regard to preparation of budget or target figures. 
Compare, analyse, document and report budget and accurate sales revenue and expenditure figures, according to budget targets and business policy. 
Maintain accurate records on past sales budgets or targets according to business policy. 
Present proposed budgets or targets accurately and concisely. 
Justify variations to proposed targets and report according to business policy. 
Report sales budgets accurately and concisely. 
Conduct budget negotiations within a set timeframe and in a manner likely to promote good relationships. 
Ensure budget negotiations reflect the overall business policies and objectives relevant to the manager’s area of responsibility. 
Acquire and deploy resources, according to relevant legislation and company guidelines. 
Maintain accurate and up to date records of resource allocation and usage according to company guidelines. 
Develop and review management systems that enable timely collection, management and processing of information. 
Complete records of budget performance and expenditure and report according to company procedures and guidelines. 
Enforce budget audit mechanisms and compliance requirements. 
Inform relevant personnel promptly of budget decisions. 

Forms

Assessment Cover Sheet

SIRXFIN005A - Manage operations to 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

SIRXFIN005A - Manage operations to 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: