Application
This unit describes the skills and knowledge required to manage financial performance in an organisation or business unit.
Leaders in agri-business are typically required to forecast future financial resource needs, analyse current asset performance and capacity to commercial standards and set business targets. They are also required to manage compliance mechanisms, manage financial risk within agreed plans and mechanisms, and monitor compliance with financial projections.
This unit is specifically relevant to leaders or managers working in a competitive commercial environment.
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. Forecast future financial resource needs | 1.1 Establish and assess the capacity of existing financial systems 1.2 Forecast financial data and business system requirements 1.3 Analyse forecasted requirements 1.4 Prepare and plan budget forecasts according to organisational and statutory requirements 1.5 Prepare and present recommendations for budget expenditure or for modifying existing projections |
2. Analyse current asset performance and capacity | 2.1 Analyse costs and returns associated with assets and liabilities using standard accounting reports to identify the extent of debt and equity financing 2.2 Identify management responsibilities and legal reporting requirements in consultation with relevant enterprise staff 2.3 Analyse and interpret financial reports and key information 2.4 Analyse and evaluate the effects of financial decisions on organisational ability to meet planned outcomes in relation to specific activities or timeframes |
3. Set business targets and compliance mechanisms | 3.1 Collect comparative and trend information and confirm needs for future budget and associated resources 3.2 Complete consultation on relevant short-term and long-term needs 3.3 Allocate resources for the budget to maximise organisation's performance 3.4 Maintain accurate and up-to-date records of resource allocation and usage in accordance with organisational requirements 3.5 Develop and review management systems which enable the timely collection, management and processing of information 3.6 Complete and accurately report records of budget performance and expenditure in accordance with organisational procedures and statutory requirements 3.7 Evaluate and improve budget audit mechanisms and compliance requirements |
4. Manage financial risk | 4.1 Identify deviations from budget that adversely affect organisational objectives 4.2 Promptly develop action plans to remedy significant deviations from budget objectives and projections 4.3 Monitor and review financial documentation against organisational objectives 4.4 Revise and renew budget priorities to meet operational contingencies and manage risk 4.5 Manage costs in accordance with budget targets |
Evidence of Performance
Evidence must demonstrate the candidate's consistency of performance over time.
Candidates must:
prepare a financial resource plan/budget
monitor and manage financial resources over a full planning cycle
effectively communicate financial reports and operational execution
make adjustments to suit changing circumstances and respond to unusual situations.
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
Evidence of Knowledge
The candidate must demonstrate an in depth technical and theoretical 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
goals of financial resource management
legislation, codes and by-laws relevant to organisation’s operations
principles of financial management
relevant legislation
risk and return
Assessment Conditions
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
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.