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Elements and Performance Criteria

  1. Prepare budgets
  2. Forecast estimates
  3. Document budget
  4. Reports are completed within timelines and distributed for specified periods and projects
  5. Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis
  6. Feasibility is identified by comparison of projections with market growth and development
  7. Monitor budget outcomes

Required Skills

REQUIRED KNOWLEDGEampSKILLS

Knowledge requirements include

principles of budgetary control

forecasting techniques

principles of double entry bookkeeping

principles of statistical analysis and measures of variance

organisational procedures and policies

principles and practices of accrual accounting

ethical considerations for budgetary forecasting and projections eg strength of assumptions forecast reliabilities

principles of corporate governance

Skills requirements include

interpersonal skills and communication skills eg liaising listening consulting

information technology use for the set up and analysis of spreadsheets

estimating forecasting and analysis skills

reading and interpreting financial statements and reports

writing skills for reports and recommendations

numeracy for financial calculations and analysis

recording gathering and classifying financial information

Evidence Required

EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context The Evidence Guide identifies the critical aspects knowledge and skills to be demonstrated to confirm competency for the unit Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace

Overview of assessment requirements

To achieve competency in this unit a person must be able to demonstrate

ability to prepare budgets

ability to forecast estimates

ability to document budget

ability to monitor budget outcomes

knowledge of accounting principles and practices

knowledge of organisational policies and procedures

knowledge of organisational chart of accounts

Critical aspects of evidence

Evidence required for demonstration of consistent performance

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment

Deliveryassessment relationship to other units

This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge

Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit or a cluster of units of competency

Assessment requirements

Method of assessment

For valid and reliable assessment of this unit evidence should be gathered through a range of methods to indicate consistent performance

Assessment of this unit of competence will usually include observation of processes and procedures oral andor written questioning on underpinning knowledge and skills and other methods as required

Context of assessment

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personalfinancial responsibility and accountability

Aspects of competency including the attainment of relevant knowledge and skills may be assessed in a relevant workplace a closely simulated work environment or other appropriate means that clearly meet industry competency requirements

Resources required for assessment

Assessment of this unit of competence requires access to suitable resources to demonstrate competence

Assessment instruments including personal planner and assessment record book

Access to registered provider of assessment services


Range Statement

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Expenditure and revenue items may include:

revenue producing expenditures

occasional expenditures

discretionary expenditure

client and supplier payments (eg sales and commissions)

fees and charges

capital expenditure

community service obligation expenditure

sales

service fees

other revenues

Budgetsmay include:

sales budgets

purchase budgets

labour budgets

production budgets

manufacturing budgets

statement of financial performance

statement of financial position

cash budgets

Budget objectives may include:

annual planning

rolling forecasts (next period, monthly, next year)

strategic review (long term)

debt reduction

business expansion and growth

cost reduction

solvency

Stakeholders may include:

employees

clients

managers and company officers (eg company directors and board of management)

financial institutions

suppliers

ministers

chief executive officers

Milestones and performance indicators may include:

reports (quarterly, half yearly, annual)

compliance with scheduled payment dates

profits and losses

debt reduction targets

unit costs

Verifiable evidence and source documentation may include:

order and supplier documentation

invoices/receipts

financial institution statements

taxation and statutory returns

Datamay include:

cash flow projections

fixed costs

variable business costs

sales records and projections

Assumptions and parameters may include:

expenditure limits

productivity levels

cash and business returns

market share growth

competitors' behaviour

regulatory stability