This unit applies to individuals with a broad knowledge of the business or core functions of organisations who contribute their skills and knowledge to monitoring and guiding the activities of the organisation, specifically in relation to working to ensure organisational finances are appropriately allocated and accounted for.

ELEMENT

PERFORMANCE CRITERIA

1. Review financial reports and budgets

1.1. Obtain revenue/expenditure/requests/predictions from appropriate person

1.2. Consider and assess future organisational operations, with reference to all available plans

1.3. Consider previous financial statements to provide baseline information

1.4. Review budgets and cash flows using all available information

2. Monitor revenue and expenditure against budget

2.1. Discuss and agree upon appropriate monitoring and reporting systems, and establish procedures

2.2. Compare income and expenditure to budget and previous periods, and identify and investigate discrepancies

2.3. Identify and examine achievement and variances to the budget, in liaison with appropriate person

2.4. Document recommendations for action on variances

2.5. Request regular reports of operations to indicate fluctuations

2.6. Provide financial statements and accompanying report of operations to appropriate person for discussion

3. Finalise budget

3.1. Ensure expenditure commitments are brought into line with final income figures

3.2. Finalise, document and approve final budget in line with operational program

3.3. Present the final budget to appropriate person and stakeholders

3.4. Ensure reporting requirements of relevant corporate authority and funding bodies are met

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and to people with diverse abilities

communication and negotiation skills to work cooperatively with other Board members, management and staff of the organisation, key stakeholders and members of the community

literacy skills to read and interpret rules, regulations, policies and other workplace documentation

numeracy skills to evaluate and make decisions based on financial data

technology skills to understand management and accounting systems.

Required knowledge

cultural context relevant to the community and location: as boards of governance oversee a wide variety of organisations, they must therefore ensure that they operate within the traditional and cultural values of the relevant context/s

key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

anti-discrimination legislation

consumer and corporations laws including appropriate state/territory legislation

ethical principles

privacy laws

Australian Accounting and Auditing Standards

banking institutions guidelines

Australian Taxation Office regulations

organisational constitution, codes of conduct functions, policies and procedures.

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:

monitoring income and expenditure against designated budgets

ensuring the budget considers existing and planned activities of the organisation

ensuring appropriate monitoring systems are in place to provide an accurate picture of each event/activity/program/service of the organisation's operations

documenting recommendations for action on any variances to the budget in order to keep it within acceptable budgeting limits

knowledge of key provisions of relevant legislation.

Context of and specific resources for assessment

Assessment must ensure:

participation on an actual or simulated Board

access to office equipment and resources

examples of budgets, cash flows and other financial data and statements

examples of relevant documents.

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

review of comparison of income and expenditure to budget and previous periods, and identification and investigation of discrepancies

analysis of responses to case studies and scenarios

demonstration of techniques

observation of presentations

oral or written questioning to assess knowledge of financial requirements of organisations

observation of performance in role plays

assessment of final budget documentation.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other governance units.

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.

Appropriate person may include:

auditor/s

chief executive officer

deputy executive officer

finance manager/officer

section manager/s

Plans may include:

building/equipment/maintenance plan

business plan

cash flow

event/activity/program/section budget

financial management plan

human resources management plan

strategic plan

Reporting systems may include:

balance sheet

cash flow

profit and loss statement

written report

Financial statements may include:

balance sheet

cash flow

general ledger report

profit and loss statement

Expenditure may include:

administration

capital requirements

consultants

contracts for goods/services

repair and maintenance

salaries

vehicle costs

Stakeholders may include:

community groups and organisations

consumers

members

shareholders

staff

trusts held by the organisation

Unit sector

Regulation, Licensing and Risk - Governance

This unit contains employability skills.