- BSBMGT504A - Manage budgets and financial plans
Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners
BSBMGT504A Mapping and Delivery Guide
Manage budgets and financial plans
Version 1.0
Issue Date: May 2024
Qualification | - |
Unit of Competency | BSBMGT504A - Manage budgets and financial plans |
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Description | This unit covers all of the significant aspects of financial management for operational managers who are not financial specialists. It emphasises the preparation of users of budgets/financial plans through communication and training and consistent surveillance over budget performance, with early intervention where required.Consider co-assessment with BSBMGT503A Prepare budgets and financial plans.This unit covers all of the significant aspects of financial management for operational managers who are not financial specialists. It emphasises the preparation of users of budgets/financial plans through communication and training and consistent surveillance over budget performance, with early intervention where required.Consider co-assessment with BSBMGT503A Prepare 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: Communicate budget and financial plans |
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Element: Monitor and control activities against plans |
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Element: Report outcomes of 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
Evidence must cover all aspects of business operations in which financial management and decision-making occurs. Period activities relating to revenue expenditure and cash flow management, as well as capital expenditure proposals and capital budgeting, must be incorporated into the assessment
The role of the operational manager as a communicator and trainer in respect to the implementation of the budget needs, also must be integrated into the overall assessment, along with regular and quality reporting of budget performance
Evidence of analysis of budget performance and follow up action
OHS considerations may include:
establishment and maintenance of OHS records
assessment of OHS performance in financial and non-financial terms
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
Financial planning skills to develop formal estimates of reviews, costs, cash flows and logistic requirements
Communication and training skills to ensure team members and other managers understand the budget/financial planning objectives and processes
Risk management skills to assess probability and consequences of any potential negative event
Analysis skills to interpret positive and negative variances from budget/plan, determine the reasons therefore, and identify potential actions to remediate the situation
Systems management skills to ensure financial performance records are collected, maintained and properly reported
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 monitor budget performance
Communicating ideas and information (Level 3) - to ensure the budget and its impact on people is understood
Planning and organising activities (Level 3) - to train users in the elements of the budget which affect them
Working with teams and others (Level 3) - to review budget performance
Using mathematical ideas and techniques (Level 2) - to measure budget performance, calculate variances and present outcomes
Solving problems (Level 3) - to maintain operations within budget
Using technology (Level 2) - to manage budget performance and develop performance reports
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
Evidence must cover all aspects of business operations in which financial management and decision-making occurs. Period activities relating to revenue expenditure and cash flow management, as well as capital expenditure proposals and capital budgeting, must be incorporated into the assessment
The role of the operational manager as a communicator and trainer in respect to the implementation of the budget needs, also must be integrated into the overall assessment, along with regular and quality reporting of budget performance
Evidence of analysis of budget performance and follow up action
OHS considerations may include:
establishment and maintenance of OHS records
assessment of OHS performance in financial and non-financial terms
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
Financial planning skills to develop formal estimates of reviews, costs, cash flows and logistic requirements
Communication and training skills to ensure team members and other managers understand the budget/financial planning objectives and processes
Risk management skills to assess probability and consequences of any potential negative event
Analysis skills to interpret positive and negative variances from budget/plan, determine the reasons therefore, and identify potential actions to remediate the situation
Systems management skills to ensure financial performance records are collected, maintained and properly reported
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 monitor budget performance
Communicating ideas and information (Level 3) - to ensure the budget and its impact on people is understood
Planning and organising activities (Level 3) - to train users in the elements of the budget which affect them
Working with teams and others (Level 3) - to review budget performance
Using mathematical ideas and techniques (Level 2) - to measure budget performance, calculate variances and present outcomes
Solving problems (Level 3) - to maintain operations within budget
Using technology (Level 2) - to manage budget performance and develop performance reports
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
Training activities may include:
small group discussions
informal meetings
formal, structured competency standards/training
tele and video conferencing
e-learning
Delegations and budget accountabilities may include:
monitoring expenditure
authorising expenditure within limits
reporting on variances to budget/plan
taking remedial action within budget authority
Audit requirements refer to:
the internal standards required in the management of budgets and financial plans, approved by external/internal auditors
Risk management means:
the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur
Real time refers to:
on-line, instantaneous monitoring of performance/activities
Appropriate non financial objectives may include:
environmental
OHS
quality
market share
customer service
security or any other key result area
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
Training activities may include:
small group discussions
informal meetings
formal, structured competency standards/training
tele and video conferencing
e-learning
Delegations and budget accountabilities may include:
monitoring expenditure
authorising expenditure within limits
reporting on variances to budget/plan
taking remedial action within budget authority
Audit requirements refer to:
the internal standards required in the management of budgets and financial plans, approved by external/internal auditors
Risk management means:
the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur
Real time refers to:
on-line, instantaneous monitoring of performance/activities
Appropriate non financial objectives may include:
environmental
OHS
quality
market share
customer service
security or any other key result area
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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Budget/financial plan communication package reviewed by finance specialists | |||
Package is amended/revised where appropriate | |||
Training activities are undertaken with users of the budget and plans across the organisation | |||
All data and terms are defined and understood by the users of the plans | |||
Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities | |||
Delegations and budget accountabilities are confirmed in writing prior to budget period | |||
Funds are allocated in accordance with budget objectives and parameters | |||
Recording systems and documentation meet all audit requirements and legal obligations | |||
Risk management plans are implemented and contingency plans in place for all financial plans | |||
Performance is monitored and variances identified on a real time basis | |||
Variances are analysed in conjunction with relevant experts to determine cause and effect | |||
Remedial action is taken swiftly to minimise negative impact and maximise benefits | |||
Budgets and plans are renegotiated/restructured where necessary to optimise organisational performance | |||
Records of financial performance are properly maintained within organisational systems | |||
Financial performance is analysed and reported in a form and language appropriate to the audience | |||
Non financial objectives are reported in the context of overall organisational performance | |||
Strategies and plans are reviewed and updated to optimise organisational performance |
Forms
Assessment Cover Sheet
BSBMGT504A - Manage budgets and financial plans
Assessment task 1: [title]
Student name:
Student ID:
I declare that the assessment tasks submitted for this unit are my own work.
Student signature:
Result: Competent Not yet competent
Feedback to student
Assessor name:
Signature:
Date:
Assessment Record Sheet
BSBMGT504A - Manage budgets and financial plans
Student name:
Student ID:
Assessment task 1: [title] Result: Competent Not yet competent
(add lines for each task)
Feedback to student:
Overall assessment result: Competent Not yet competent
Assessor name:
Signature:
Date:
Student signature:
Date: