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.