ELEMENT

PERFORMANCE CRITERIA

1. Develop a budget

1.1 Budgets are developed in the required format and consistent with organisation's guidelines and procedures.

1.2 Cost elements are identified and quantified to eliminate/reduce wastage.

1.3 Cost-benefit analyses are prepared for major cost items in accordance with the organisation's policy and procedures.

1.4 Sub-budgets prepared by other staff are coordinated in order that desired objectives are achieved.

1.5 Implications of major shifts in proposed or actual budget expenditures are analysed, determined and taken into account.

1.6 Performance indicators are developed and agreement reached based on the budget.

2. Allocate, authorise and monitor expenditure

2.1 Financial resources are allocated as agreed to in the operational plan and the budget negotiation process (as appropriate).

2.2 Expenditure management meets the financial accountability requirements of the organisation.

2.3 Expenditure is kept within budget or any potential over-runs identified and budget renegotiated accordingly.

2.4 Expenditure is authorised within financial authority limits established by the organisation.

2.5 Supply and expenditure processes are in accordance with corporate governance and organisational protocols.

2.6 Financial reports are produced when and in a format required by the organisation.

2.7 Sub-budgets are continuously monitored to ensure appropriate controls and authorisations are observed.

2.8 Finance allocation is continually monitored against organisational objectives and priorities ensuring optimum service delivery.

2.9 Re-allocation of resources is undertaken taking account of needs and priorities.

3. Utilise relevant financial management information systems

3.1 Management information systems are used for planning, implementing and monitoring the financial resources usage.

3.2 Management information system reports are produced, verified and interpreted.

This describes the essential skills and knowledge and their level, required for this unit.

Required Skills

cost-benefit analysis

interpret financial reports

monitor financial accounts

prepare budgets

prioritise financial resource allocation

produce financial reports

utilise management information systems

Required Knowledge

accounting principles

accrual and cash management procedures

computer-based tools to produce financial reports

costing policies and procedures

financial management principles

legislative and organisation's procedures for budget development and financial management

management information systems

organisation's financial accountability requirements

Critical aspects for assessment and evidence required to demonstrate competency in this unit

It is essential for this unit that competence be demonstrated in application of financial resource management in a wide range of contexts in achieving the organisation's financial objectives.

Consistency in performance

Evidence should be gathered over a period of time in a range of actual or simulated workplace environments.

Context of and specific resources for assessment

Context of assessment

Evidence of competent performance by observing an individual in a financial management role within the workplace or exercise or operational environment Knowledge may be assessed through:

written assignments

projects reports

debriefings and action learning projects

Specific resources for assessment

No special requirements.

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.

Budget formats may include:

zero based budgeting

program budgeting

line item budgeting

Operating budget may include:

staffing costs

capital expenditure/income

recurrent expenditure/income

forward estimates

cash flow

Policy may include:

supply

procurement

expenditure

audit

reporting and recording policies

Financial reports may include:

annual reports

program financial statements

accrual reports

monthly/quarterly financial reports

Management information systems may include:

computers

communication channels

records management data

procedures

protocol

legislation

guidelines and awards

organisation

legal and policy materials

client information

market trends

registries and file records

library

financial records

basic statistical information

personnel records