Application
This unit of competency describes the skills and knowledge required to operate within a budget framework.
All work must be carried out to comply with organisational requirements, legislation and codes and in consultation with the management team.
This unit applies to individuals who take responsibility for their own work and provide and communicate solutions to a range of predictable and sometimes unpredictable problems.
No occupational licensing, legislative or certification requirements are known to apply to this unit at the time of publication.
Elements and Performance Criteria
Element | Performance criteria |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Participate in formulation of a budget | 1.1 Gather budget planning information from relevant sources 1.2 Identify priorities in relation to the organisation’s vision and plans 1.3 Identify known sources of income as well as new sources of income 1.4 Review expenditure for existing operations 1.5 Review overhead expenditure 1.6 Estimate expenditure for new initiatives and expansion 1.7 Request budget variations to suit organisational needs |
2.Supervise financial transaction | 2.1 Arrange expenditure within budget delegations 2.2 Record transactions to meet taxation and accounting requirements 2.3 Compare actual sales and expenditure to the enterprise budget 2.4 Check financial reports to ensure operations are within forecast limits 2.5 Adjust expenditure to meet financial targets as required 2.6 Report actual and potential variations in budgeted income 2.7 Develop recommendations to address budget variations |
Evidence of Performance
The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.
The candidate must provide evidence that they can:
identify typical information to be included in a budget
review budgeted income and expenditure and compare to actuals
record transactions and allocate them to cost and income categories
identify and report budget variations
review production and expenditure plans to meet financial targets.
Evidence of Knowledge
The candidate must demonstrate knowledge of:
income and expenditure categories
budgeting procedures and templates
taxation and accounting requirements for recording financial transactions
costing and forecasting mechanisms
cash flow analyses and records`
recording systems
records of receipts and expenditure
work reports
factors that impact upon the timing of sales and purchases, including taxation, GST, and market conditions.
Assessment Conditions
Competency is to be assessed in the workplace or simulated environment that accurately reflects performance in a real workplace setting.
Assessors must satisfy current standards for RTOs.
Foundation Skills
Foundation Skills essential to performance are explicit in the performance criteria of this unit of competency.
Range Statement
Sectors
Business (BUS)