Application
This unit has application to job functions that have budget responsibility and may include accountants and departmental managers. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Prepare the budget | 1.1. Budget objectives are confirmed and consistent with organisational aims, projects and forecasts 1.2. Cash, expenditure and revenue items are clearly defined and relevant to the identified objectives of the budget 1.3. Discussions and negotiations with stakeholders that the budget applies to are conducted in a manner that promotes goodwill and ongoing cooperation |
2. Set the budget timeframe | 2.1. Milestones and performance indicators are identified and included in the budget 2.2. Annual budgets are broken down into seasonal periods in accordance with operating trends |
3. Document the budget | 3.1. Data is presented in a format that is easily understood and appropriate to budget reporting 3.2. Reports are completed within timelines and distributed for specified periods and projects |
Required Skills
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Required skills |
communication skills to: determine and confirm work requirements, using questioning and active listening as required liaise with others, share information, listen and understand use language and concepts appropriate to cultural differences literacy skills to: read and interpret documentation from a variety of sources read and interpret financial statements and reports writing skills for preparing reports and recommendations, recording and classifying financial information numeracy skills for financial calculations and analysis information technology skills for setting up and analysing spreadsheets estimating, forecasting and analysis skills organisational skills, including the ability to plan and sequence work and meet organisational timelines |
Required knowledge |
principles of budgetary control forecasting techniques principles of double entry bookkeeping principles of statistical analysis and measures of variance organisational procedures and policies for financial administration |
Evidence Required
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 ability to: apply knowledge of organisational policies and procedures establish and confirm milestones and performance indicators prepare budgets for a variety of purposes and organisations accurately record and document budget reports. |
Context of and specific resources for assessment | Assessment must ensure: competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment access to and the use of a range of common office equipment, technology, software and consumables. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit: evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency simulated tasks involving preparation of budgets from supplied data verbal or written questioning on underpinning knowledge and skills which may include formal examinations evaluating samples of work. |
Guidance information for assessment |
Range Statement
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. | |
Budget objectives may include: | annual planning cost reduction rolling forecasts: next period monthly next year. |
Expenditure and revenue items may include: | capital expenditure client and supplier payments sales commissions fees and charges Goods and Services Tax (GST) Pay As You Go (PAYG) tax revenue producing expenditures sales. |
Stakeholders may include: | chief executive officers clients directors financial institutions suppliers. |
Milestones and performance indicators may include: | compliance with scheduled payment dates profits and losses reports: quarterly half yearly annually. |
Data may include: | cash flow projections fixed costs information sales records and projections variable business costs. |
Formats and presentation methods may include: | explanations of calculations used explanatory notes graphics highlighted estimates and projections tables. |
Reports may include: | cash budgets purchase budgets sales budgets Statement of financial performance Statement of financial position. |
Sectors
Unit sector | Accounting |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.