Assessor Resource

SITXFIN004
Prepare and monitor budgets

Assessment tool

Version 1.0
Issue Date: April 2024


This unit describes the performance outcomes, skills and knowledge required to analyse financial and other business information to prepare and monitor budgets. It requires the ability to draft and negotiate budgets, identify deviations, and manage the delivery of successful budgetary performance.

The unit applies to all tourism, travel, hospitality and event sectors. The budget may be for an entire organisation, for a department or for a particular project or activity.

It applies to senior personnel who operate independently or with limited guidance from others and who are responsible for making a range of financial management decisions.

No occupational licensing, certification or specific legislative 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)


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.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Prepare budget information.

1.1.Determine and confirm scope and nature of required budgets.

1.2.Identify, access and interpret data and data sources required for budget preparation.

1.3.Analyse internal and external factors for potential impact on budget.

1.4.Provide opportunities for colleagues to contribute to budget planning process.

2. Prepare budget.

2.1.Draft budget based on analysis of all available information.

2.2.Estimate income and expenditure and support with valid, reliable and relevant information.

2.3.Reflect organisational objectives within draft budget.

2.4.Assess and present options and recommendations in a clear format.

2.5.Circulate draft budget to colleagues and managers for input.

3. Finalise budget.

3.1.Negotiate budget according to organisational policy and procedures.

3.2.Agree on and incorporate modifications.

3.3.Complete final budget in a clear format within designated timelines.

3.4.Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.

4. Monitor and review budget.

4.1.Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.

4.2.Incorporate all financial commitments into budget and budget reports.

4.3.Investigate and take appropriate action on significant deviations.

4.4.Analyse changes in internal and external environment and make necessary adjustments.

4.5.Collect and record relevant information to assist in future budget preparation.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

prepare a budget for a business that meets the specific business’ needs

demonstrate the following when preparing the above budget:

consultation on components

analysis of factors that impact on the budget

completion of draft and final versions of budget within designated timelines

monitor and review the above budget against performance over its life cycle.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

types of budgets:

cash budgets

cash flow budgets

departmental budgets

event budgets

project budgets

purchasing budgets

sales budgets

wage budgets

whole of organisation budgets

budget terminology

specific industry sector and organisation:

role and nature of budgets

budget formats, budget performance and financial reports

financial reporting procedures and cycles

features and functions of accounting software programs used to prepare and monitor budgets

internal and external factors that impact on budget development:

growth or decline in economic conditions

human resource requirements

new legislation or regulation

organisational and management restructures

organisational objectives

scope of the project

shift in market trends

significant price movement for certain commodities or items

supplier availability and cost

budget preparation and monitoring practices and techniques:

sources and contents of data required for budget preparation:

competitor research

customer or supplier research

declared commitments in areas of operation

financial information from suppliers

financial proposals from key stakeholders

income and expenditure for previous time periods

departmental, event or project budgets

grant funding guidelines or limitations

management policies and procedures

organisational budget preparation guidelines

performance information from previous periods

techniques for making budget estimates

common reasons for deviations and budget deviation management.

Skills must be demonstrated in an operational tourism, travel, hospitality or events business operation or activity for which budgets are prepared. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

computers, printers and accounting software packages

financial and operational data and reports used to prepare budgets

others with whom the individual can discuss, and negotiate draft and final budget components; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

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.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Prepare budget information.

1.1.Determine and confirm scope and nature of required budgets.

1.2.Identify, access and interpret data and data sources required for budget preparation.

1.3.Analyse internal and external factors for potential impact on budget.

1.4.Provide opportunities for colleagues to contribute to budget planning process.

2. Prepare budget.

2.1.Draft budget based on analysis of all available information.

2.2.Estimate income and expenditure and support with valid, reliable and relevant information.

2.3.Reflect organisational objectives within draft budget.

2.4.Assess and present options and recommendations in a clear format.

2.5.Circulate draft budget to colleagues and managers for input.

3. Finalise budget.

3.1.Negotiate budget according to organisational policy and procedures.

3.2.Agree on and incorporate modifications.

3.3.Complete final budget in a clear format within designated timelines.

3.4.Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.

4. Monitor and review budget.

4.1.Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.

4.2.Incorporate all financial commitments into budget and budget reports.

4.3.Investigate and take appropriate action on significant deviations.

4.4.Analyse changes in internal and external environment and make necessary adjustments.

4.5.Collect and record relevant information to assist in future budget preparation.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

prepare a budget for a business that meets the specific business’ needs

demonstrate the following when preparing the above budget:

consultation on components

analysis of factors that impact on the budget

completion of draft and final versions of budget within designated timelines

monitor and review the above budget against performance over its life cycle.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

types of budgets:

cash budgets

cash flow budgets

departmental budgets

event budgets

project budgets

purchasing budgets

sales budgets

wage budgets

whole of organisation budgets

budget terminology

specific industry sector and organisation:

role and nature of budgets

budget formats, budget performance and financial reports

financial reporting procedures and cycles

features and functions of accounting software programs used to prepare and monitor budgets

internal and external factors that impact on budget development:

growth or decline in economic conditions

human resource requirements

new legislation or regulation

organisational and management restructures

organisational objectives

scope of the project

shift in market trends

significant price movement for certain commodities or items

supplier availability and cost

budget preparation and monitoring practices and techniques:

sources and contents of data required for budget preparation:

competitor research

customer or supplier research

declared commitments in areas of operation

financial information from suppliers

financial proposals from key stakeholders

income and expenditure for previous time periods

departmental, event or project budgets

grant funding guidelines or limitations

management policies and procedures

organisational budget preparation guidelines

performance information from previous periods

techniques for making budget estimates

common reasons for deviations and budget deviation management.

Skills must be demonstrated in an operational tourism, travel, hospitality or events business operation or activity for which budgets are prepared. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

computers, printers and accounting software packages

financial and operational data and reports used to prepare budgets

others with whom the individual can discuss, and negotiate draft and final budget components; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
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
Determine and confirm scope and nature of required budgets. 
Identify, access and interpret data and data sources required for budget preparation. 
Analyse internal and external factors for potential impact on budget. 
Provide opportunities for colleagues to contribute to budget planning process. 
Draft budget based on analysis of all available information. 
Estimate income and expenditure and support with valid, reliable and relevant information. 
Reflect organisational objectives within draft budget. 
Assess and present options and recommendations in a clear format. 
Circulate draft budget to colleagues and managers for input. 
Negotiate budget according to organisational policy and procedures. 
Agree on and incorporate modifications. 
Complete final budget in a clear format within designated timelines. 
Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities. 
Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports. 
Incorporate all financial commitments into budget and budget reports. 
Investigate and take appropriate action on significant deviations. 
Analyse changes in internal and external environment and make necessary adjustments. 
Collect and record relevant information to assist in future budget preparation. 

Forms

Assessment Cover Sheet

SITXFIN004 - Prepare and monitor budgets
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SITXFIN004 - Prepare and monitor budgets

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