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

MTMBUS701A Mapping and Delivery Guide
Manage financial performance

Version 1.0
Issue Date: March 2024


Qualification -
Unit of Competency MTMBUS701A - Manage financial performance
Description This unit covers the skills and knowledge required to manage financial performance in an organisation or business unit. 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 Leaders in agri-business are typically required to forecast future financial resource needs, analyse current asset performance and capacity to a standard expected in a commercial environment, and to set business targets. There will be a requirement to manage compliance mechanisms, to manage financial risk within agreed plans and mechanisms, and to monitor compliance with financial projections.This unit will have specific relevance for leaders or managers working in a competitive commercial environment.
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: Forecast future financial resource needs
  • The capacity of existing financial systems is established and assessed.
  • Financial data and business system requirements are forecasted.
  • Forecasted requirements are analysed.
  • Budget forecasts are prepared and planned according to organisational and statutory requirements.
  • Recommendations for budget expenditure or for modification of existing projections are prepared and presented.
       
Element: Analyse current asset performance and capacity
  • The costs of, and returns from, assets and liabilities are analysed using standard accounting reports identifying the extent of the debt and equity financing.
  • Management responsibilities and legal requirements for reporting are identified in consultation with relevant organisational staff.
  • Financial reports and key information are analysed and interpreted.
  • The effects of financial decisions on the ability of the organisation to meet planned outcomes in relation to a specific activity or specified timeframe are analysed and evaluated.
       
Element: Set business targets and compliance mechanisms
  • Comparative and trend information is collected and needs for future budget and associated resources confirmed.
  • Consultation on relevant short-term and long-term needs is completed.
  • Resources are allocated against the budget to maximise organisation's performance.
  • Accurate and up-to-date records of resource allocation and usage are maintained according to organisational requirements.
  • Management systems which enable timely collection, management and processing of information are developed and reviewed.
  • Records of budget performance and expenditure are completed and accurately reported according to organisational procedures and statutory requirements.
  • Budget audit mechanisms and compliance requirements are evaluated and improved, as required.
       
Element: Manage financial risk
  • Financial risk factors are identified and analysed.
  • Financial risks are documented and managed according to organisational policies and procedures.
  • Procedures are implemented to review financial risk management activities regularly.
       
Element: Monitor compliance with financial projections
  • Deviations from budgets that generate an adverse affect on budget objectives are identified.
  • Action plans to remedy significant deviations from budget objectives and projections are promptly developed.
  • Financial documentation is monitored and reviewed against organisational objectives.
  • Budget priorities are revised and renewed to meet operational contingencies and risk management.
  • Costs to targets set in the budget are managed.
       


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 following is essential:

preparing a financial resource plan/budget

monitoring and managing financial resources over a full planning cycle

effectively communicating financial reports and operational execution

making adjustments to changing circumstances and responding to unusual situations

knowledge of relevant legislation.

Context of and specific resources for assessment

Assessment must ensure:

access to workplace contractual and procurement documentation

competence is consistently demonstrated over time, and over a range and variety of situations

access to appropriate documentation and resources normally used in the workplace

access to an appropriate operating environment.

Method of assessment

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

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

completion of applied projects or learning activities, such as budget preparation, analysis and reporting, preparation of financial forecasts, and review and analysis of costs

direct observation of contextual application of skills

oral or written questioning to assess knowledge of risk and return

review of documentation displaying compliance with professional and regulatory standards for financial management.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example, with other units in the qualification in which this unit is packaged.


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

Ability to:

identify and analyse potential risks of any type

identify financial information and to follow relevant accounting procedures

apply decision making skills

use interpersonal skills to:

maintain appropriate relationships with colleagues

establish trust

value and be open to, the opinions of others

work as part of a team

listening actively

negotiate effectively

timetable and schedule reports and lodgements

use problem-solving, initiative and enterprise skills to prepare budgets and to monitor their implementation

use research skills to identify asset management valuations

apply applicable professional standards

manage risk

Required knowledge

Knowledge of:

accounting, financial statements and cash flow

communication processes and methods

compliance requirements

cost of capital, capital structure and working capital

finance and investment decisions

goal of financial resource management

legislation, codes and by-laws relevant to the organisation's operations

principles of finance management

relevant legislation

risk and return

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.

Systems are defined as:

a detailed description/depiction of how organisations relate to their environments and how they process information through strategic and tactical management to develop actual operating procedures

electronic financial management systems used by the organisation.

Financial data may include:

Australian Bureau of Statistics (ABS) economic data

balance sheet

benchmarks or trend analysis

budget variances

budgets and forecasts

cash flow/profit reports

financial/operational statements and reports (e.g. expenditures and receipts, and profit and loss statements)

financial markets monitoring services (e.g. Reuters)

income statements

market valuations.

Statutory requirements may include:

delegated authorities

internal control procedures

reporting periods

taxation payment timings.

Standard accounting reports may include:

deprival asset valuations

direct and indirect allocation

discounted cash flows

impact statements

internal rate of return

net present value

pay back break even periods

pro-rata and percentage apportionment

rates of return.

Management responsibilities may include:

organisational policies, procedures, guidelines, ethical and/or professional standards.

Legal requirements may include:

private sector requirements, such as:

Australian Accounting Standards (SAC 1, 2, Framework AASB1001)

Corporations Act 2001

GST and income tax reporting

public sector requirements, such as:

Financial Administration and Audit Act 1977

Financial Management Standard 1997.

Key information may include:

gross profit

net profit

return on investment

for public or not-for-profit organisations:

best use of resources

surplus/deficit against budget

value for money.

A specific activity might include:

significant project (e.g. new product line)

introduction of new technology

partnership arrangement with another organisation

introduction of a new customer.

A specified time frame may:

be long enough to be able to undertake a meaningful impact evaluation of an activity (e.g. over a period of several months or a full planning cycle)

cover the lifetime of a specific project.

Comparative and trend information includes:

benchmarks as agreed

business activity

brand value

expenses

leverage

liquidity

profitability

return on equity

sales

wages.

Organisational requirements may include:

financial analysis assessments

financial management manuals

legal and organisational policies, guidelines and requirements

Occupational Health and Safety (OH&S) policies, procedures and programs

price and exchange parameters

quality assurance and/or procedures manuals

recording and filing systems

reporting requirements

standard financial analysis techniques.

Risks may include:

damage to property/equipment

environmental

equipment/system failures

financial/economic loss/failure

industrial disputation

market changes

natural disasters

OH&S (e.g. disease)

contamination

political events

product failure

professional incompetence

security failure (e.g. criminal or terrorist activities).

Risk management is:

the process of identifying potential negative events and developing plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur.

Financial documentation may include:

balance sheets

budgetary analysis

electronic forms

financial year reports

forecasts and estimates

operating statements

order and supplier documentation

returns on investments

spreadsheets

taxation and statutory returns.

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
The capacity of existing financial systems is established and assessed. 
Financial data and business system requirements are forecasted. 
Forecasted requirements are analysed. 
Budget forecasts are prepared and planned according to organisational and statutory requirements. 
Recommendations for budget expenditure or for modification of existing projections are prepared and presented. 
The costs of, and returns from, assets and liabilities are analysed using standard accounting reports identifying the extent of the debt and equity financing. 
Management responsibilities and legal requirements for reporting are identified in consultation with relevant organisational staff. 
Financial reports and key information are analysed and interpreted. 
The effects of financial decisions on the ability of the organisation to meet planned outcomes in relation to a specific activity or specified timeframe are analysed and evaluated. 
Comparative and trend information is collected and needs for future budget and associated resources confirmed. 
Consultation on relevant short-term and long-term needs is completed. 
Resources are allocated against the budget to maximise organisation's performance. 
Accurate and up-to-date records of resource allocation and usage are maintained according to organisational requirements. 
Management systems which enable timely collection, management and processing of information are developed and reviewed. 
Records of budget performance and expenditure are completed and accurately reported according to organisational procedures and statutory requirements. 
Budget audit mechanisms and compliance requirements are evaluated and improved, as required. 
Financial risk factors are identified and analysed. 
Financial risks are documented and managed according to organisational policies and procedures. 
Procedures are implemented to review financial risk management activities regularly. 
Deviations from budgets that generate an adverse affect on budget objectives are identified. 
Action plans to remedy significant deviations from budget objectives and projections are promptly developed. 
Financial documentation is monitored and reviewed against organisational objectives. 
Budget priorities are revised and renewed to meet operational contingencies and risk management. 
Costs to targets set in the budget are managed. 

Forms

Assessment Cover Sheet

MTMBUS701A - Manage financial performance
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

MTMBUS701A - Manage financial performance

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: