Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSACC503A Mapping and Delivery Guide
Manage budgets and forecasts

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSACC503A - Manage budgets and forecasts
Description This unit describes the performance outcomes, skills and knowledge required to prepare, document and manage budgets and forecasts, and encompasses forecasting estimates and monitoring budgeted outcomes.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application The unit has application to job roles that have responsibility for managing budgets and forecasts such as accountants and chief financial officers.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
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
Elements of Competency Performance Criteria              
Element: Prepare budget
  • Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget
  • Budget objectives are clear and consistent with organisational aims and projects
  • Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation
  • Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends
       
Element: Forecast estimates
  • Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation
  • Relevant data for forecasts are identified and changes in circumstances anticipated
  • Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies
  • Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies
       
Element: Document budget
  • Data are presented in a format that is easily understood and appropriate to budget reporting
  • Reports are completed within timelines and distributed for specified periods and projects
  • Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis
  • Feasibility is identified by comparison of projections with market growth and development
       
Element: Monitor budget outcomes
  • Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person
  • Budget processes are reviewed and implemented as required
       


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 provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

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

Evidence of the ability to:

prepare and document budgets and forecasting estimates

monitor budget outcomes periodically

apply accounting principles and practices and organisational policies and procedures

use an organisational chart of accounts.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment

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

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Required skills

communication skills to:

determine and confirm budgeting requirements and deal with clients, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills for accessing and managing financial services information

literacy skills for analysingbudget needs and preparing clear written advice for organisational clients

numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using spreadsheets and databases and using internet information

learning skills to maintain knowledge of budgeting principles and procedures

problem solving skills to identify any budgeting issues that have the potential to impact on clients and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule budget monitoring and reporting

Required knowledge

ethical considerations for budgetary forecasting and projections such as:

strength of assumptions

forecast reliabilities

forecasting techniques

organisational procedures and policies

principles and practices of accrual accounting

principles of budgetary control

principles of corporate governance

principles of double-entry bookkeeping

principles of statistical analysis and measures of variance

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, if used in the performance criteria, is detailed below. Essential operating conditions that 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) may also be included.

Expenditure and revenue items may include:

capital expenditure

client and supplier payments such as:

sales

commissions

community service obligation expenditure

discretionary expenditure

fees and charges

occasional expenditures

other revenues

revenue producing expenditures

sales

service fees.

Budgets may include:

cash budgets

labour budgets

manufacturing budgets

production budgets

purchase budgets

sales budgets

statements of financial performance

statements of financial position.

Budget objectives may include:

annual planning

business expansion and growth

cost reduction

debt reduction

rolling forecasts:

next period

monthly

next year

solvency

strategic review for the long term

Stakeholders may include:

chief executive and financial officers

clients

employees

financial institutions

managers and company officers such as:

company directors

boards of management

government ministers

suppliers

Milestones and performance indicators may include:

compliance with scheduled payment dates

debt reduction targets

profits and losses

reports

quarterly

half yearly

annually

unit costs.

Verifiable evidence and source documentation may include:

financial institution statements

invoices and receipts

order and supplier documentation

taxation and statutory returns.

Data may include:

cash flow projections

fixed costs

sales records and projections

variable business costs.

Assumptions and parameters may include:

cash and business returns

competitors' behaviour

expenditure limits

market share growth

productivity levels

regulatory stability.

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
Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget 
Budget objectives are clear and consistent with organisational aims and projects 
Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation 
Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends 
Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation 
Relevant data for forecasts are identified and changes in circumstances anticipated 
Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies 
Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies 
Data are presented in a format that is easily understood and appropriate to budget reporting 
Reports are completed within timelines and distributed for specified periods and projects 
Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis 
Feasibility is identified by comparison of projections with market growth and development 
Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person 
Budget processes are reviewed and implemented as required 

Forms

Assessment Cover Sheet

FNSACC503A - Manage budgets and forecasts
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

FNSACC503A - Manage budgets and forecasts

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: