This unit requires application of procedures for the development and management of budgets and financial plans required to enable the effective operation of an AMO within the bounds of its exposition.
Applications include the financial management obligations of Accountable Managers of AMOs operating under the ADF or the CASA regulatory systems.
Not applicable.
1 | Analyse strategic opportunities and intended maintenance activities | 1.1 | Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities |
1.2 | All intended maintenance activities are converted into special projects or work programs | ||
1.3 | Financial trends are analysed and interpreted in the context of the organisational strategic objectives | ||
1.4 | Financial planning objectives, process timeframes and resources are clearly identified | ||
2 | Develop revenue, expenditure and capital investment proposals | 2.1 | Individuals and groups are given responsibility for the development of specific budgets and plans |
2.2 | Consultation occurs with all relevant groups and individuals throughout the organisation | ||
2.3 | Proposals are developed taking account of past experience, present trends and future expectations | ||
2.4 | Outcomes of proposals are clearly linked to organisational strategic objectives | ||
2.5 | Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals | ||
2.6 | Organisational investment target rates are met for capital expenditure proposals | ||
2.7 | Performance measures and tactics for monitoring and control processes | ||
2.8 | Proposals comply with the organisation’s values, policies, | ||
2.9 | Proposals are developed within the agreed timeframes | ||
2.10 | Supporting evidence | ||
3 | Build agreement for budgets and financial plans | 3.1 | Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans |
3.2 | Links to the achievement of organisational strategic objectives are identified and agreed | ||
3.3 | Outcomes are confirmed in terms of clear, concise objectives and timeframes | ||
3.4 | Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans | ||
3.5 | Budgets and plans incorporate the outcomes of negotiations and meet organisation’s approval processes | ||
3.6 | Delegations, accountabilities and responsibilities are agreed and confirmed in writing | ||
3.7 | Final budget and plans are clearly documented and a communication plan developed | ||
4 | Communicate budget and financial plans | 4.1 | Budget/financial plan communication package is reviewed by finance specialists |
4.2 | Package is amended/revised where appropriate | ||
4.3 | Training activities are undertaken with users of the budget and plans across the organisation | ||
4.4 | All data and terms are defined and understood by the users of the plans | ||
4.5 | Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities | ||
5 | Monitor and control activities against plans | 5.1 | Delegations and budget accountabilities are confirmed in writing prior to budget period |
5.2 | Funds are allocated in accordance with budget objectives and parameters | ||
5.3 | Recording systems and documentation meet all audit requirements and legal obligations | ||
5.4 | Risk management plans are implemented and contingency plans put in place for all financial plans | ||
5.5 | Performance is monitored and variances promptly identified | ||
5.6 | Variances are analysed in conjunction with relevant experts to determine cause and effect | ||
5.7 | Remedial action is taken swiftly to minimise negative impact and maximise benefits | ||
5.8 | Budgets and plans are renegotiated/restructured where necessary to optimise organisational performance | ||
6 | Report outcomes of financial plans | 6.1 | Records of financial performance are properly maintained within organisational systems |
6.2 | Financial performance is analysed and reported in a form and language appropriate to the audience | ||
6.3 | Non-financial objectives are reported in the context of overall organisational performance | ||
6.4 | Strategies and plans are reviewed and updated to optimise organisational performance |
Look for evidence that confirms knowledge of: relevant legislation from all levels of government that affects business operation, especially in regard to OHS and environmental issues, equal opportunity, industrial relations and anti-discrimination requirements in CASR and TAMM regarding financial status of maintenance organisations aircraft and aeronautical product maintenance and maintenance management/certification requirements financial planning within the organisation budgeting organisation’s intended aircraft and aeronautical product maintenance activities consultative methods and processes capital investment evaluation techniques performance measurement organisation roles in respect to financial delegations, accountabilities and responsibilities standards for organisational record-keeping and audit requirements Look for evidence that confirms skills in: analysis and interpretation of relevant financial information development of formal estimates of reviews, costs, cash flows and logistic requirements communication/consultation to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input cost and benefit analysis to produce balanced arguments to support financial proposals risk management to assess probability and consequences of any potential negative event investment analysis to evaluate capital expenditure proposals (NPV, IROR, etc) negotiating agreement on budgets and financial plans with the relevant managers relating to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities arranging and delivering training to ensure team members and other managers understand the budget/financial planning objectives and processes analysing and interpreting positive and negative variances from budget/plan, determining the reasons therefore, and identifying potential actions to remediate the situation developing and implementing systems to ensure financial performance records are collected, maintained and properly reported |
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 | A person who demonstrates competency in this unit must be able to prepare and manage budgets and financial plans in the aviation maintenance organisation environment. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria, including required knowledge, and be capable of applying the competency in new and different situations and contexts. Assessors should gather a range of evidence that is valid, sufficient, current and authentic. Evidence can be gathered through a variety of ways, including direct observation, supervisor’s reports, project work, samples and questioning. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. |
Context of and specific resources for assessment | This unit may be assessed on the job, off the job or a combination of both on and off the job. Where assessment occurs off the job, that is, the candidate is not in productive work, then an appropriate simulation must be used where the range of conditions reflects realistic workplace situations. The candidate must have access to all materials and documentation required and must be permitted to refer to any relevant workplace procedures, codes, standards, manuals and reference materials. The assessment environment should not disadvantage the candidate. |
Method of assessment | |
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. | |
Legislation, codes and national standards relevant to the workplace | Legislation, codes and national standards relevant to the workplace may include: CASRs and associated Manuals of Standards TAMM award and enterprise agreements and relevant industrial instruments relevant legislation from all levels of government that affects business operation, especially in regard to OHS, environmental and sustainability issues, equal opportunity, and anti-discrimination |
Strategic opportunities | Strategic opportunities may include: aircraft operators and fleet operators seeking to outsource maintenance aeronautical product maintenance needs changing regulatory requirements for maintenance new aircraft types provision of logistic support services opportunity to respond to requests for tender to provide aircraft and/or aeronautical product maintenance opportunity to accept sub-contract maintenance tasks from other maintenance organisations |
Budgets and plans | Budgets and plans may include: aircraft maintenance budgets aeronautical product maintenance budgets financial budgets logistic services sales budgets regulatory compliance budgets capital expenditure budgets cash flow plans |
Relevant groups and individuals | Relevant groups and individuals include: all personnel within the organisation affected by the budgets and financial plans being developed |
Investment target rates | Investment target rates refers to: the minimum percentage rate of return required by the organisation for a capital investment project to proceed |
Capital expenditure | Capital expenditure refers to: those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects |
Legal and ethical obligations | Legal and ethical obligations include: compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation’s policies, values and codes of conduct |
Supporting evidence | Supporting evidence may include: cost-benefit analyses risk management plans market research results tender details net present value interest rate of return pay pack calculations |
Delegations | Delegations refers to: the decision-making accountabilities relating to the person’s position description and/or other written and verbal delegations |
Accountabilities and responsibilities | Accountabilities and responsibilities include: clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing |
Training activities | Training activities may include: small group discussions informal meetings formal, structured competency-based training television and video conferencing e-learning |
Delegations and budget accountabilities | Delegations and budget accountabilities may include: monitoring expenditure authorising expenditure within limits reporting on variances to budget/plan taking remedial action within budget authority |
Audit requirements | Audit requirements include: the internal standards required in the management of budgets and financial plans, approved by external/internal auditors |
Risk management | Risk management refers to: the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur |
Appropriate non-financial objectives | Appropriate non-financial objectives may include: environmental sustainability compliance with Maintenance Organisation Exposition (CASA regulatory system) compliance with Maintenance Management Plan (ADF regulatory system) compliance with requirements of the applicable airworthiness regulator OHS quality and safety management market share customer service security or any other key result area |
Aviation maintenance management
This unit contains employability skills.
Not applicable.