Elements and Performance Criteria

Element

Performance Criteria

1

Plan for and collect information for a budget

1.1

Areas for which the budget is being prepared are determined and confirmed with appropriate personnel

1.2

Data required for development of the budget is identified, accessed and analysed

1.3

Budget parameters are determined with estimates based on research, consultation and negotiating with appropriate personnel

1.4

Relevant colleagues are provided with the opportunity to contribute to the budget planning process

2

Develop budget

2.1

Budget is drafted based on analysis of all available information in accordance with organisation policy

2.2

Income and expenditure estimates are identified and supported by reliable information

2.3

Draft budget is circulated for comment

3

Finalise budget

3.1

Modifications are agreed and incorporated as required

3.2

Final budget is provided to the appropriate personnel

3.3

Personnel affected by the budget are informed and its application to the area in which they work in terms of limits and goals, financial management and reporting responsibilities clarified

REQUIRED KNOWLEDGE&SKILLS

Knowledge requirements include:

industry terminology

accounting principles and terminology

company and industry products and services

Skills requirements include:

computer skills, including basic computing, spreadsheet, database and accounting

data analysis and interpretation

high level business planning, scheduling and budgeting

action planning

calculation

report writing

EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements

To achieve competency in this unit, a person must be able to demonstrate:

the ability to collect and interpret relevant data, develop a budget, and consult and negotiate with others

Critical aspects of evidence

Evidence required for demonstration of consistent performance:

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery/assessment relationship to other units:

This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.

Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit, or a cluster of units of competency.

Assessment requirements

Method of assessment:

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:

Access to a computer and accounting software may be helpful, but not essential.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Areas may include:

an entire organisation, section of an organisation or a particular project or other activity

Data will include, but is not restricted to, information relating to:

sales and marketing plans

business plans

human resource plans

historical data

Budget parameters include:

timelines, availability of finance, organisation policy/directives, sales forecasts

Relevant colleagues include:

all stakeholders who may be expected to need to approve the budget and key stakeholders who will be required to implement the budget