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Elements and Performance Criteria

1. Develop a budget
   • Budgets are developed in the required format and consistent with organisation's guidelines and procedures.
   • Cost elements are identified and quantified to eliminate/reduce wastage.
   • Cost-benefit analyses are prepared for major cost items in accordance with the organisation's policy and procedures.
   • Sub-budgets prepared by other staff are coordinated in order that desired objectives are achieved.
   • Implications of major shifts in proposed or actual budget expenditures are analysed, determined and taken into account.
   • Performance indicators are developed and agreement reached based on the budget.
2. Allocate, authorise and monitor expenditure
   • Financial resources are allocated as agreed to in the operational plan and the budget negotiation process (as appropriate).
   • Expenditure management meets the financial accountability requirements of the organisation.
   • Expenditure is kept within budget or any potential over-runs identified and budget renegotiated accordingly.
   • Expenditure is authorised within financial authority limits established by the organisation.
   • Supply and expenditure processes are in accordance with corporate governance and organisational protocols.
   • Financial reports are produced when and in a format required by the organisation.
   • Sub-budgets are continuously monitored to ensure appropriate controls and authorisations are observed.
   • Finance allocation is continually monitored against organisational objectives and priorities ensuring optimum service delivery.
   • Re-allocation of resources is undertaken taking account of needs and priorities.
3. Utilise relevant financial management information systems
   • Management information systems are used for planning, implementing and monitoring the financial resources usage.
   • Management information system reports are produced, verified and interpreted.

Required Skills

This describes the essential skills and knowledge and their level required for this unit

Required Skills

costbenefit analysis interpret financial reports monitor financial accounts prepare budgets prioritise financial resource allocation produce financial reports utilise management information systems

Required Knowledge

accounting principles accrual and cash management procedures computerbased tools to produce financial reports costing policies and procedures financial management principles legislative and organisations procedures for budget development and financial management management information systems organisations financial accountability requirements

Evidence Required

Critical aspects for assessment and evidence required to demonstrate competency in this unit	It is essential for this unit that competence be demonstrated in application of financial resource management in a wide range of contexts in achieving the organisations financial objectives Consistency in performance Evidence should be gathered over a period of time in a range of actual or simulated workplace environments
Context of and specific resources for assessment	Context of assessment Evidence of competent performance by observing an individual in a financial management role within the workplace or exercise or operational environment Knowledge may be assessed through written assignments projects reports debriefings and action learning projects Specific resources for assessment No special requirements

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Range Statement

The Range Statement relates to the Unit of Competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the Performance Criteria is detailed below.
Budget formats may include:	zero based budgeting program budgeting line item budgeting
Operating budget may include:	staffing costs capital expenditure/income recurrent expenditure/income forward estimates cash flow
Policy may include:	supply procurement expenditure audit reporting and recording policies
Financial reports may include:	annual reports program financial statements accrual reports monthly/quarterly financial reports
Management information systems may include:	computers communication channels records management data procedures protocol legislation guidelines and awards organisation legal and policy materials client information market trends registries and file records library financial records basic statistical information personnel records

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