DEFFIN024
Support the development and management of budgets


Application

This unit describes the skills required to provide support to the budgeting process.

This unit applies to those working in the public sector Finance Domain who would be required to undertake budgeting.

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 financial administration.

Those undertaking this unit would be work independently or as part of a team, under supervision. They must be able to use discretion and judgement and take responsibility for the quality of their outputs. They would perform routine tasks in familiar context.

No licensing, legislative or certification requirements apply to this 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.

1

Support budget development

1.1

Confirm budget is realistic and achievable and represents the business plan

1.2

Conduct discussions and negotiations with stakeholders in a professional manner

2

Set budget timeframe

2.1

Identify and include milestones and performance indicators in budget

2.2

Provide phasings of current and next financial year budget

3

Document budget

3.1

Present data in the correct format

3.2

Highlight any risks affecting budget achievement

3.3

Complete and distribute reports within specified timelines

4

Monitor resource utilisation against budget

4.1

Monitor performance to identify actual and/or potential variance to budget

4.2

Provide reasons for variance

4.3

Provide revised End of Period Forecast identifying and quantifying risks to budget achievement

4.4

Take action to minimise negative impact of variance

Evidence of Performance

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

applying relevant legislation and organisation policies and procedures

establishing and confirming budgetary milestones and performance indicators

identifying budget risks

preparing budgets

recording and documenting budget reports with accuracy.


Evidence of Knowledge

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

forecasting techniques

key features of organisational procedures and policy for financial administration

key principles of budgetary control

relevant public sector and financial legislation.


Assessment Conditions

As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to:

a range of relevant exercises, case studies and/or other simulations

relevant and appropriate materials, tools, equipment and personal protective equipment (PPE) currently used in industry

applicable documentation, including workplace procedures, regulations, codes of practice and operation manuals

acceptable means of simulated assessment.


Foundation Skills

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.


Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.


Sectors

Not applicable.


Competency Field

Financial Management