This unit may apply to job roles with financial systems responsibility in any sector in the financial services industry.

ELEMENT

PERFORMANCE CRITERIA

1. Establish financial system requirements

1.1. Financial system requirements for efficient financial administration are determined from consultation with relevant stakeholders and an analysis of existing financial plans

1.2. Reporting and procedural requirements impacting on the organisation are identified and recorded for future reference

1.3. Internal financial audit controls included in the system specification provide a satisfactory security mechanism

1.4. Risks to financial viability and contingency strategies to manage risk are identified and costed

2. Design financial management systems

2.1. Sources of competent assistance and advice are accessed and used to secure financial records and assets

2.2. Financial management system design ensures accurate and timely provision of information about the organisation's transactions, working capital and cash flow

2.3. Equipment and software needed for the operation of the system are identified, acquired and installed to support the organisation's transactions

2.4. Financial reporting requirements are known and used by relevant personnel

2.5. Established financial reports ensure accurate and timely provision of data required for financial decision making

2.6. Agreed schedules of account recording and reconciliation systems are produced at regular intervals and support the organisation's service provision and business decisions

2.7. Mechanisms for the review of terms of trade and fee structures are suited to the organisation's needs and meet industry standards

2.8. Financial reports are prepared at regular intervals in the required format meet external audit requirements

3. Prepare and review financial plans

3.1. Financial plans are linked to reviews of the organisation's strategic business plan to enable timely financial adjustments to be made

3.2. Planning and implementation of financial management activities enable probity to be maintained

3.3. Financial plans provide a reasonable basis for budgeting and ongoing financial management of the organisation

4. Monitor and review financial reporting systems

4.1. Financial reporting systems evaluated through an assessment of organisation performance against agreed performance indicators enable timely adjustments to be made to business investments

4.2. Financial reports and systems are able to be used by authorised staff to manage the organisation's finances

Required skills

well-developed communication skills to:

gather information and data by consulting with stakeholders, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research and analysis skills for accessing and managing complex information and assessing application of management accounting and governance requirements

well-developed literacy skills for interpreting and analysing complex documentation and producing management reports

well-developed numeracy skills to accurately analyse, record and store data in accordance with organisational requirements

IT skills for accessing and using appropriate integrated financial system software, spreadsheets and databases and using internet information

problem solving skills to identify any issues that have the potential to impact on organisational management and financial systems and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

auditing and reporting requirements

legislation and regulations relating to:

finance

taxation

trust accounts

trade practices

security requirements

ethical requirements

accounting and bookkeeping for financial control

financial systems design

administrative systems and practices

cost-benefit analysis

reporting and auditing requirements for small business

types and characteristics of systems, technology and software to manage functions of an organisation

quality principles and practice

ethical concerns relating to the management of third party monies

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:

undertake risk assessment, evaluation and management of financial reporting

interpret and comply with relevant statutory, regulatory, professional and practice requirements

apply costing and budgeting techniques and tools.

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

access to an integrated financial software system and data.

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

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Financial system may include:

manual or computerised

software which is industry specific or proprietary

those capable of at least providing timely, accurate and easily understood information.

Efficient financial administration must take into account the following factors:

Accounting Standards

Australian Standards

bookkeeping

codes of practice

compliance with relevant statutory and regulatory requirements

ethical principles and practices

office routines

security requirements.

Reporting and procedural requirements may include:

consideration of legislation and codes of practice relating to:

financial record keeping

trust accounting

taxation

auditing.

Risk management may include:

need for insurance, including:

public liability

property

personal indemnity

personal accident

sickness assets.

Unit sector

Organisational skills

This unit contains employability skills.