Elements and Performance Criteria
- Prepare a budget
- Information on past receipts and payments is obtained from previous records, compared to current prices and cost trends, and compiled in a form that enables projections of future receipts and expenditures.
- A plan is prepared for a period which allows for expected expenditure and financial reporting requirements, using the 'most likely' prices and costs.
- Implement and monitor a budget
- Receipts and payments are monitored and reconciled against the original budget.
- Variances against the original plan are identified, and the impact on overall profit/loss and cash flow is calculated.
- Funds are allocated in accordance with budget objectives and parameters.
- Adjustments are made where necessary to respond to unacceptable variations.
- Budgets and plans are renegotiated/ restructured where necessary to optimise enterprise performance.
- Prepare financial report
- Records of financial performance are properly maintained within enterprise systems.
- Information with source documents is assembled according to the requirements of the report recipient.
- Documentation is forwarded in a timely and efficient manner.
- Non-financial objectives are reported in the context of overall enterprise performance.