Application
This unit of competency describes the skills and knowledge required to prepare and monitor budgets and financial reports.
All work must be carried out to comply with organisational requirements, work health and safety legislation and codes and in consultation with the management team.
This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities.
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. Prepare a budget | 1.1 Obtain information on past receipts and payments and compare to current prices and cost trends 1.2 Prepare gross margin projections for each production enterprise of the business 1.3 Identify projected non-enterprise income and overhead costs for the business 1.4 Identify projected capital-based income and costs for the business 1.5 Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs 1.6 Ensure the plan allows the business to meet financial reporting requirements |
2. Implement and monitor a budget | 2.1 Monitor receipts and payments and reconcile against the original budget 2.2 Allocate funds in accordance with budget objectives and parameters 2.3 Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow 2.4 Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations 2.5 Renegotiate and restructure budgets and plans to optimise enterprise performance |
3. Prepare financial report | 3.1 Maintain records of financial performance 3.2 Assemble information with source documents according to the requirements of the report recipient 3.3 Prepare financial reports to meet both management and legislative requirements 3.4 Forward documentation in a timely and efficient manner |
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:
develop a budget
prepare financial reports to meet industry standards
monitor receipts and payments
negotiate and restructure budgets
implement and monitor a budget.
Evidence of Knowledge
The candidate must demonstrate knowledge of:
budget formulation
financial information systems
budget analysis and reporting processes
standards for organisational recordkeeping and audit requirements.
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)