Google links for BSBMGT503A - Prepare budgets and financial plans

Elements and Performance Criteria

Required Skills

Evidence Required

The Evidence Guide identifies the critical aspects knowledge and skills to be demonstrated to confirm competence for this unit This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement

Critical Aspects of Evidence

Each of the elements needs to be clearly evidenced both in terms of outcome and process but this can be achieved through a holistic project approach to assessment

Evidence needs to determine that people not only have done and can do what is required but that they understand why these activities need to be undertaken

Evidence of preparation and negotiation of proposed with clear links to strategic and operational plans

OHS considerations may include

sufficient resources for OHS in strategic and operational plans

proposals include OHS risk assessment and control

proposals meet OHS legislative requirements and address organisational OHS objectives

Underpinning Knowledge

At this level the learner must demonstrate understanding of a broad knowledge base incorporating theoretical concepts with substantial depth in some areas

Relevant legislation from all levels of government that affects business operation especially in regard to Occupational Health and Safety and environmental issues equal opportunity industrial relations and antidiscrimination

Financial planning within the organisation

Budgeting

Organisations objectives and plans strategic tactical and operational

Consultative methods and processes

Capital investment evaluation techniques

Performance measurement

Organisation roles in respect to financial delegations accountabilities and responsibilities

Standards for organisational recordkeeping and audit requirements

Underpinning Skills

Analytical skills to analyse and interpret relevant financial information

Financial planning skills to develop formal estimates of reviews costs cash flows and logistic requirements

Communicationconsultation skills to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input

Cost and benefit analysis skills to produce balanced arguments to support financial proposals

Risk management skills to assess probability and consequences of any potential negative event

Investment analysis skills to evaluate capital expenditure proposals NPV IROR etc

Negotiation skills to negotiate agreement on budgets and financial plans with the relevant managers

Ability to relate to people from a range of social cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Contexts of Assessment

Competency is demonstrated by performance of all stated criteria including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting analysing and organising information Level to support budget proposals

Communicating ideas and information Level to develop a communication plan for the budget

Planning and organising activities Level to develop budgets

Working with teams and others Level to ensure appropriate groups and individuals participate in the process

Using mathematical ideas and techniques Level to build the budget and other financial plans

Solving problems Level to successfully negotiate commitment to the plans

Using technology Level to assemble the plans and communicate them to users of the plans

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies

The Evidence Guide identifies the critical aspects knowledge and skills to be demonstrated to confirm competence for this unit This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement

Critical Aspects of Evidence

Each of the elements needs to be clearly evidenced both in terms of outcome and process but this can be achieved through a holistic project approach to assessment

Evidence needs to determine that people not only have done and can do what is required but that they understand why these activities need to be undertaken

Evidence of preparation and negotiation of proposed with clear links to strategic and operational plans

OHS considerations may include

sufficient resources for OHS in strategic and operational plans

proposals include OHS risk assessment and control

proposals meet OHS legislative requirements and address organisational OHS objectives

Underpinning Knowledge

At this level the learner must demonstrate understanding of a broad knowledge base incorporating theoretical concepts with substantial depth in some areas

Relevant legislation from all levels of government that affects business operation especially in regard to Occupational Health and Safety and environmental issues equal opportunity industrial relations and antidiscrimination

Financial planning within the organisation

Budgeting

Organisations objectives and plans strategic tactical and operational

Consultative methods and processes

Capital investment evaluation techniques

Performance measurement

Organisation roles in respect to financial delegations accountabilities and responsibilities

Standards for organisational recordkeeping and audit requirements

Underpinning Skills

Analytical skills to analyse and interpret relevant financial information

Financial planning skills to develop formal estimates of reviews costs cash flows and logistic requirements

Communicationconsultation skills to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input

Cost and benefit analysis skills to produce balanced arguments to support financial proposals

Risk management skills to assess probability and consequences of any potential negative event

Investment analysis skills to evaluate capital expenditure proposals NPV IROR etc

Negotiation skills to negotiate agreement on budgets and financial plans with the relevant managers

Ability to relate to people from a range of social cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Contexts of Assessment

Competency is demonstrated by performance of all stated criteria including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting analysing and organising information Level to support budget proposals

Communicating ideas and information Level to develop a communication plan for the budget

Planning and organising activities Level to develop budgets

Working with teams and others Level to ensure appropriate groups and individuals participate in the process

Using mathematical ideas and techniques Level to build the budget and other financial plans

Solving problems Level to successfully negotiate commitment to the plans

Using technology Level to assemble the plans and communicate them to users of the plans

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies

Range Statement

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Strategic opportunities may include:

new product/service development

new models/revisions of products/services

expansion/contraction of operational activities

alliances/joint ventures

outsourcing/in-sourcing

Budgets and plans may include:

operation/production budgets

financial budgets

sales budgets

capital expenditure budgets

cash flow plans

Relevant groups and individuals means:

all personnel within the organisation affected by the budgets and financial plans being developed

Investment target rates refers to:

the minimum percentage rate of return required by the organisation for a capital investment project to proceed

Capital expenditure means:

those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects

Legal and ethical obligations means:

compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation's policies and values

Supporting evidence may include:

cost/benefit analyses

risk management plans

market research results

net present value

interest rate of return

pay pack calculations

Delegations means:

the decision-making accountabilities relating to the person's position description and/or other written and verbal delegations

Accountabilities and responsibilities means:

clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Strategic opportunities may include:

new product/service development

new models/revisions of products/services

expansion/contraction of operational activities

alliances/joint ventures

outsourcing/in-sourcing

Budgets and plans may include:

operation/production budgets

financial budgets

sales budgets

capital expenditure budgets

cash flow plans

Relevant groups and individuals means:

all personnel within the organisation affected by the budgets and financial plans being developed

Investment target rates refers to:

the minimum percentage rate of return required by the organisation for a capital investment project to proceed

Capital expenditure means:

those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects

Legal and ethical obligations means:

compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation's policies and values

Supporting evidence may include:

cost/benefit analyses

risk management plans

market research results

net present value

interest rate of return

pay pack calculations

Delegations means:

the decision-making accountabilities relating to the person's position description and/or other written and verbal delegations

Accountabilities and responsibilities means:

clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing

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BSBMGT503A - Prepare budgets and financial plans

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Elements and Performance Criteria

Required Skills

Evidence Required

Range Statement