- BSBMGT503A - Prepare budgets and financial plans
Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners
BSBMGT503A Mapping and Delivery Guide
Prepare budgets and financial plans
Version 1.0
Issue Date: May 2024
Qualification | - |
Unit of Competency | BSBMGT503A - Prepare budgets and financial plans |
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Description | This unit covers the preparation of financial plans and budgets by operational/non-financial managers, as required by their particular organisation.This unit is related to BSBMGT504A Manage budgets and financial plans.This unit covers the preparation of financial plans and budgets by operational/non-financial managers, as required by their particular organisation.This unit is related to BSBMGT504A Manage budgets and financial plans. | ||
Employability Skills | Not applicable. | ||
Learning Outcomes and Application | Not applicable. | ||
Duration and Setting | X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting. |
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Prerequisites/co-requisites | Not applicable. | ||
Competency Field |
Development and validation strategy and guide for assessors and learners | Student Learning Resources | Handouts Activities |
Slides PPT |
Assessment 1 | Assessment 2 | Assessment 3 | Assessment 4 | |
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Elements of Competency | Performance Criteria | |||||||
Element: Analyse strategic and operational plans |
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Element: Develop revenue, expenditure and capital investment proposals |
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Element: Build agreement for budgets and financial plans |
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Evidence Required
List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
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 anti-discrimination
Financial planning within the organisation
Budgeting
Organisation's 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 record-keeping 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
Communication/consultation 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
Context/s 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 3) - to support budget proposals
Communicating ideas and information (Level 3) - to develop a communication plan for the budget
Planning and organising activities (Level 3) - to develop budgets
Working with teams and others (Level 3) - to ensure appropriate groups and individuals participate in the process
Using mathematical ideas and techniques (Level 2) - to build the budget and other financial plans
Solving problems (Level 3) - to successfully negotiate commitment to the plans
Using technology (Level 2) - 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 anti-discrimination
Financial planning within the organisation
Budgeting
Organisation's 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 record-keeping 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
Communication/consultation 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
Context/s 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 3) - to support budget proposals
Communicating ideas and information (Level 3) - to develop a communication plan for the budget
Planning and organising activities (Level 3) - to develop budgets
Working with teams and others (Level 3) - to ensure appropriate groups and individuals participate in the process
Using mathematical ideas and techniques (Level 2) - to build the budget and other financial plans
Solving problems (Level 3) - to successfully negotiate commitment to the plans
Using technology (Level 2) - 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
Submission Requirements
List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here
Assessment task 1: [title] Due date:
(add new lines for each of the assessment tasks)
Assessment Tasks
Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
Not applicable.
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
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist
Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice | Yes | No | Comments/feedback |
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Strategic opportunities are expressed in terms of tactical and operational objectives | |||
Tactical and operational objectives are converted into special projects or work programs | |||
Financial trends are analysed and interpreted in the context of the organisational strategic objectives | |||
Financial planning objectives, process timeframes and resources are clearly identified | |||
Individuals and groups are given responsibility for the development of specific budgets and plans | |||
Consultation occurs with all relevant groups and individuals throughout the organisation | |||
Proposals are developed taking account of past experience, present trends and future expectations | |||
Outcomes of proposals are clearly linked to organisational strategic objectives | |||
Realistic cost benefit and risk analyses/management plans are incorporated into all proposals | |||
Organisational investment target rates are met for capital expenditure proposals | |||
Performance measures and tactics for monitoring and control processes are identified for each proposal/action | |||
Proposals comply with the organisation's values, policies, Code of Conduct, legal and ethical obligations | |||
Proposals are developed within the agreed timeframes | |||
Supporting evidence is valid and sufficient to allow proper evaluation of the proposals | |||
Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans | |||
Links to the achievement of organisational strategic objectives are identified and agreed | |||
Outcomes are confirmed in terms of clear, concise objectives and timeframes | |||
Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans | |||
Budgets and plans incorporate the outcomes of negotiations and meet organisation's approval processes | |||
Delegations, accountabilities and responsibilities are agreed and confirmed in writing | |||
Final budget and plans are clearly documented and a communication plan developed |
Forms
Assessment Cover Sheet
BSBMGT503A - Prepare budgets and financial plans
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Assessment Record Sheet
BSBMGT503A - Prepare budgets and financial plans
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Assessment task 1: [title] Result: Competent Not yet competent
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Feedback to student:
Overall assessment result: Competent Not yet competent
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