- CUEFIN02B - Manage a budget
CUEFIN02B
Manage a budget
This unit describes the skills and knowledge required to take responsibility for the management of a budget where others may have developed the budget. The skills and knowledge required for budget development are found in the unit CUEFIN01B - Develop a budget. Combined assessment of these units is appropriate.This unit describes the skills and knowledge required to take responsibility for the management of a budget where others may have developed the budget. The skills and knowledge required for budget development are found in the unit CUEFIN01B - Develop a budget. Combined assessment of these units is appropriate
Application
Not applicable.
Prerequisites
Not applicable.
Elements and Performance Criteria
Elements and Performance Criteria | |||
Element | Performance Criteria | ||
1 | Allocate funds | 1.1 | Allocate funds in accordance with the budget and agreed priorities |
1.2 | Keep all appropriate personnel fully informed of budgetary decisions | ||
1.3 | Make colleagues aware of the importance of budget control | ||
1.4 | Accurately detail records of resource allocation in accordance with organisational control systems | ||
2 | Monitor and control expenditure | 2.1 | Check actual income and expenditure against budgets at regular intervals |
2.2 | Identify areas for improved budget performance and investigate options | ||
2.3 | Prepare income and expenditure reports and present in the required format to the appropriate personnel | ||
2.4 | Identify deviations from the budget, the reasons for deviation and take appropriate action | ||
2.5 | Present recommendations clearly and logically to appropriate personnel | ||
2.6 | Advise appropriate personnel of budget status in accordance with agreed timeframes | ||
3 | Complete financial reports | 3.1 | Accurately complete all required financial and statistical reports within designated timelines |
3.2 | Make recommendations regarding future financial planning as appropriate | ||
3.3 | Make reports clear and concise, and check for accuracy | ||
3.4 | Promptly forward reports to the appropriate personnel | ||
Required Skills
Not applicable.
Evidence Required
Underpinning skills and knowledge
Assessment must include evidence of the following knowledge and skills:
knowledge and understanding of budgets, including different types of budget, how a budget is structured and how to interpret a budget
financial reports, including structure, features and formats for specific purposes
financial reporting procedures and cycles relevant to the specific industry context
areas of financial responsibility specific to the industry context
organisation or project's procedures for budgeting and financial reporting/management
legislative or other requirements (e.g. funding body guidelines) with regard to disbursement of funds and record keeping.
Linkages to other units
This unit has very strong linkages to the following unit, and combined assessment and/or training is recommended:
CUEFIN01B - Develop a budget.
Critical aspects of evidence
The following evidence is critical to the judgement of competence in this unit:
monitoring of income and expenditure in accordance with the budget and identifying ways of improving budget performance
knowledge of basic budget principles and structures
knowledge of budgeting terminology relevant to a specific industry context.
Method and context of assessment
The assessment context must provide for:
project or work activities that include the management of and reporting on a budget for a specific project/event/operational area over a period of time so that the monitoring and implementation aspects of the unit can be assessed.
Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:
evaluation of reports detailing financial performance of projects or activities conducted by the candidate
evaluation of reports prepared by the candidate detailing the processes undertaken to manage and monitor a budget
case studies and problem solving to assess application of principles of budget management to different workplace contexts
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).
Resource requirements
Assessment of this unit requires access to:
figures and data that reflect the financial operating conditions of industry.
Key competencies in this unit
Key competencies are built into all workplace competencies. The following table describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform
Level 2 = Administer and Manage
Level 3 = Design and Evaluate
Collecting, analysing and organising ideas and information (2)
Researching a new supplier to reduce expenditure in a given budget area.
Communicating ideas and information (2)
Making recommendations on ways to improve budget performance.
Planning and organising activities (2)
Organising the regular flow of information to ensure effective reporting.
Working with others and in teams (2)
Liaising with colleagues to investigate ways of reducing expenditure.
Solving problems (3)
Making adjustments to solve reduction in income.
Using mathematical ideas and techniques (2)
Adjusting budget.
Using technology (1)
Interrogating a computerised accounting package.
Underpinning skills and knowledge
Assessment must include evidence of the following knowledge and skills:
knowledge and understanding of budgets, including different types of budget, how a budget is structured and how to interpret a budget
financial reports, including structure, features and formats for specific purposes
financial reporting procedures and cycles relevant to the specific industry context
areas of financial responsibility specific to the industry context
organisation or project's procedures for budgeting and financial reporting/management
legislative or other requirements (e.g. funding body guidelines) with regard to disbursement of funds and record keeping.
Linkages to other units
This unit has very strong linkages to the following unit, and combined assessment and/or training is recommended:
CUEFIN01B - Develop a budget.
Critical aspects of evidence
The following evidence is critical to the judgement of competence in this unit:
monitoring of income and expenditure in accordance with the budget and identifying ways of improving budget performance
knowledge of basic budget principles and structures
knowledge of budgeting terminology relevant to a specific industry context.
Method and context of assessment
The assessment context must provide for:
project or work activities that include the management of and reporting on a budget for a specific project/event/operational area over a period of time so that the monitoring and implementation aspects of the unit can be assessed.
Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:
evaluation of reports detailing financial performance of projects or activities conducted by the candidate
evaluation of reports prepared by the candidate detailing the processes undertaken to manage and monitor a budget
case studies and problem solving to assess application of principles of budget management to different workplace contexts
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).
Resource requirements
Assessment of this unit requires access to:
figures and data that reflect the financial operating conditions of industry.
Key competencies in this unit
Key competencies are built into all workplace competencies. The following table describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform
Level 2 = Administer and Manage
Level 3 = Design and Evaluate
Collecting, analysing and organising ideas and information (2)
Researching a new supplier to reduce expenditure in a given budget area.
Communicating ideas and information (2)
Making recommendations on ways to improve budget performance.
Planning and organising activities (2)
Organising the regular flow of information to ensure effective reporting.
Working with others and in teams (2)
Liaising with colleagues to investigate ways of reducing expenditure.
Solving problems (3)
Making adjustments to solve reduction in income.
Using mathematical ideas and techniques (2)
Adjusting budget.
Using technology (1)
Interrogating a computerised accounting package.
Range Statement
The following explanations identify how this unit may be applied in different workplaces, sectors and circumstances.
Budgets may include:
project
departmental
event
sales
grant funding
cash
budgets for a small business.
Relevant colleagues/personnel involved in budget development may include:
creative personnel
technical personnel
management
funding bodies
investors
sponsors.
Resources include all financial resources such as:
cash
cheques
grants
bank accounts
investments.
Financial reports may include:
profit and loss statements
balance sheets
cash flow reporting.
The following explanations identify how this unit may be applied in different workplaces, sectors and circumstances.
Budgets may include:
project
departmental
event
sales
grant funding
cash
budgets for a small business.
Relevant colleagues/personnel involved in budget development may include:
creative personnel
technical personnel
management
funding bodies
investors
sponsors.
Resources include all financial resources such as:
cash
cheques
grants
bank accounts
investments.
Financial reports may include:
profit and loss statements
balance sheets
cash flow reporting.
Sectors
Not applicable.
Employability Skills
Not applicable.
Licensing Information
Not applicable.