Application
This unit supports the attainment of skills and knowledge required for competent workplace performance in councils of all sizes. Knowledge of the legislation and regulations that provide the boundaries for the operation of councils is essential. The unique nature of councils, as a tier of government, directed by elected members and reflecting the needs of local communities must be appropriately reflected.
Prerequisites
Not applicable.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Analyse financial resources | 1.1 Financial resources required to achieve council objectives are identified and incorporated within budgets. 1.2 Additional expenditure required is forecast and provisions are made for access to required finances. 1.3 Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds. |
2. Interpret financial and economic information | 2.1 Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios. 2.2 Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated. 2.3 Financial performance of business units/councils are reviewed and reported appropriately. |
3. Use financial information to support decision making | 3.1 Different financial scenarios are identified and modelled to support decision-making process. 3.2 Cost-benefit analysis is conducted to support viability of council activities. 3.3 Appropriate financial advisers are consulted when using financial information to support business decisions. 3.4 Accurate financial information is obtained and analysed when developing business unit plans. 3.5 Decisions are made using updated financial information. |
4. Maximise returns on financial resources | 4.1 Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded. 4.2 Corrective action is taken when deviations in budgets occur, and variations are explained. 4.3 Data on the use of financial resources is collected, analysed and reported appropriately. 4.4 Recommendations for improving returns on financial resources are communicated to management. 4.5 Performance indicators are discussed with managers and staff and agreed upon. |
Required Skills
This describes the essential skills and knowledge and their level, required for this unit |
Required Skills |
high-level research, analysis and interpretation skills in relation to management accounting and finance negotiation numeracy skills to support budgeting, budget analysis and financial and economic analysis, including modelling decision making application of decision making strategies to a range of business and financial scenarios |
Required Knowledge |
relevant financial and accounting principles relating to analysis and interpretation of financial reports and resources financial and accounting terminology and systems |
Evidence Required
Overview of assessment requirements | A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making. |
Critical aspects of evidence to be considered | The demonstrated ability to: use and analyse financial and economic information to achieve council objectives understand and apply tasks associated with interpreting and using the financial information outlined in the range statement |
Context of assessment | Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment. |
Method of assessment | The following assessment methods are suggested: preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies written and oral questioning to assess knowledge and understanding completion of workplace documentation third-party reports from experienced practitioner completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor |
Evidence required for demonstration of consistent performance | Evidence should be gathered over a period of time in a range of actual or simulated management environments. |
Resource implications | Access to a workplace or simulated case study that provides the following resources: relevant council documents, such as strategic and operational plans relevant local government legislation and regulations |
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 in the Performance Criteria is detailed below. | |
Economic factors may include: | interest rates regional, state and national economic conditions and trends unemployment rates inflation government fiscal and monetary policies consumer confidence |
Financial information include: | accountant prepared reports balance sheets profit and loss statements cash flow statements financial ratios budgets: operational departmental council estimated and actual cost and revenue |
Performance indicators include: | return on investment credit ratings reductions in expenditure increases in income |
Sectors
Common
Employability Skills
This unit contains employability skills.
Licensing Information
Not applicable.