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Elements and Performance Criteria

1. Prepare a budget
   • Obtain information on past receipts and payments and compare to current prices and cost trends
   • Prepare gross margin projections for each production enterprise of the business
   • Identify projected non-enterprise income and overhead costs for the business
   • Identify projected capital-based income and costs for the business
   • Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs
   • Ensure the plan allows the business to meet financial reporting requirements
2. Implement and monitor a budget
   • Monitor receipts and payments and reconcile against the original budget
   • Allocate funds in accordance with budget objectives and parameters
   • Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow
   • Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations
   • Renegotiate and restructure budgets and plans to optimise enterprise performance
3. Prepare financial report
   • Maintain records of financial performance
   • Assemble information with source documents according to the requirements of the report recipient
   • Prepare financial reports to meet both management and legislative requirements
   • Forward documentation in a timely and efficient manner

Range Statement

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Performance Evidence

The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.

The candidate must provide evidence that they can:

develop a budget

prepare financial reports to meet industry standards

monitor receipts and payments

negotiate and restructure budgets

implement and monitor a budget.

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Knowledge Evidence

The candidate must demonstrate knowledge of:

budget formulation

financial information systems

budget analysis and reporting processes

standards for organisational recordkeeping and audit requirements.

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