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

The following skills must be assessed as part of this unit

research critical thinking and problemsolving skills to investigate and develop options for potential budget performance improvements

communication skills to discuss budget requirements and to seek and provide feedback

literacy skills to interpret a wide range of business and financial documents and to create accurate budget reporting and recommendations documentation

numeracy skills to interpret and use budget figures in daytoday work operations and to develop budget estimates and scenarios for performance improvement

The following knowledge must be assessed as part of this unit

knowledge and understanding of budgets specifically how a budget is structured and how to interpret a budget

any legislative requirements in relation to disbursement of funds and record keeping

techniques related to maximising budget performance relevant to the organisation or industry sector

budgeting terminology relevant to a specific industry context

financial reporting procedures and cycles relevant to the organisation or industry sector

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

knowledge of basic budget principles and structures

budgeting terminology relevant to a specific industry context

ability to monitor budgeted income and expenditure and to identify ways of improving budget performance

understanding of the main types of budgets that apply in the specific organisation or industry context

management of and reporting on a budget for a specific project or operational area over a period of time so that the monitoring and implementation aspects of managing finances within a budget can be assessed

Context of and specific resources for assessment

Assessment must ensure

use of figures and data that reflect the realistic financial operating conditions of industry

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate

evaluation of reports produced by the candidate detailing the processes undertaken to manage finances within a budget

case studies and problemsolving to assess application of the principles of budget management to different situations

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the candidate

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example

SITXFINA Prepare and monitor budgets

SITXFIN005A Prepare and monitor budgets.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors How these skills are applied varies between occupations and qualifications due to the different work functions and contexts

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role

Budgets may include:

Appropriate colleagues may include:

Research to investigate new approaches may include:

Financial and statistical reports may relate to: