Application
This unit describes the skills required to identify financial resource requirements, establish budgets for activities and control expenditure and activities against budgets.
This unit applies to those working in a management role assuming responsibility for allocation of finances within a range of occupational areas.
The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to, particularly those related to preparation and implementation of financial budgets and plans.
Those undertaking this unit work autonomously, occasionally accessing and evaluating support from a broad range of sources. The role requires analysis, communication and strong numeracy skills.
No licensing, legislative or certification requirements apply to unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes | Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section. |
1. Identify financial resource requirements | 1.1 Consult with key people to develop and endorse proposals for expenditure. 1.2 Ensure proposed expenditure takes into account factors likely to affect costs and returns. 1.3 Link proposed financed activities to organisational objectives and strategies. 1.4 Ensure proposed financed activities include targets, standards and monitoring methods. |
2. Establish budgets for activities | 2.1 Ensure relevant people participate in determining a budget that is clear, concise and presents a cost-benefit analysis. 2.2 Present budget proposals in the format required by your organisational management practices. 2.3 Conduct negotiations in a way that maintains good working relationships with the people involved. 2.4 Resolve and report areas of uncertainty or contention and negotiate and finalise agreements in the time required. 2.5 Provide relevant people with information about the budget decisions in a manner and timeframe that contribute to their cooperation and confidence. |
3. Control expenditure and activities against budget | 3.1 Ensure team members take individual responsibility for monitoring and controlling expenditure and activities against budgets. 3.2 Implement a method of regular monitoring of expenditure and activities against budgets that complies with the organisation’s requirements. 3.3 Take corrective action in response to actual or potential significant variation from budgets promptly and effectively and report outcomes. 3.4 Refer requests for expenditure outside the area of the budgets promptly to the relevant people. 3.5 Complete records of activities against budgets accurately and make available to authorised people. |
Evidence of Performance
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least two occasions.
accessing and using legislation and guidelines relating to financial planning, management, reporting and accountability
reading complex and formal documents, such as legislation, policies, procedures and accounting standards and providing advice on their interpretation and application
detailing requirements, writing recommendations and preparing financial plans
using financial applications for entering data and preparing reports requiring accuracy of expression
communicating with key people using a range of communication styles to suit different audiences and purposes
using communication strategies involving exchanges of complex financial information
Evidence of Knowledge
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
organisation’s policies and procedures related to financial planning, management, reporting and accountability
corporate governance requirements
relationships of financial management compliance framework to organisational structures
organisation’s general management and accountability structures and systems
methods of analysing and costing resource capacity and use
internal control mechanisms and accountability of processes and resources
accrual accounting principles
professional, ethical and business standards for financial management
financial recording and reporting requirements
Assessment Conditions
Valid assessment of this unit requires a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when determining financial resources, including coping with difficulties, irregularities and breakdowns in routine.
Evidence must be gathered over time and drawn from the range of routine and required work activities relevant to the performance criteria, the range statement and the organisational environment.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Foundation Skills
The foundation skills demands of this unit have been mapped for alignment with the Australian Core Skills Framework (ACSF). The following tables outline the performance levels indicated for successful attainment of the unit.
ACSF levels indicative of performance:
Further information on ACSF and the foundation skills underpinning this unit can be found in the
Competency Field
Organisational administration and management