Application
This unit describes the performance outcomes, skills and knowledge required to collect and prepare data to develop budgets for activities, events and programs.
This unit applies to those with responsibility for activity budget development. Work is performed according to relevant legislation and organisational policies and procedures.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Source data for budget preparation. | 1.1 Access and interpret data about resources required to conduct initiative. 1.2 Confirm budget allocation for initiative with person responsible. 1.3 Identify potential sources and scope of activity income. |
2. Prepare budget calculations. | 2.1 Calculate realistic projections of income and expenditure based on data and information obtained. 2.2 Determine unit cost or product price and break-even point. 2.3 Record and maintain costing and income calculation system to ensure information is current, accurate and confidential. 2.4 Identify and plan for likely contingencies. |
3. Prepare budget documentation. | 3.1 Prepare draft budgets in established format from data obtained and calculations made. 3.2 Identify and support income and expenditure estimates with current and valid information. 3.3 Submit budget for approval within designated timelines. 3.4 Adjust budget in response to feedback from nominated people. |
4. Review budget against actual results. | 4.1 Compare original budget to actual results and identify variances and their reasons. 4.2 Record and maintain information to allow retrieval for the development of future budgets. 4.3 Review own work performance and identify potential improvements. |
Evidence of Performance
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
prepare, document and review budgets for at least two different activities or projects.
Evidence of Knowledge
Demonstrated knowledge of required to complete the tasks outlined in elements and performance criteria of this unit:
organisational policies and procedures that enable development of sound financial budgets:
timelines
nominated person for authorisation
record keeping
contingency planning
confidentiality and security of financial information
budget preparation techniques:
information required for budget preparation
components of a budget:
income and potential sources – sales, grants, sponsorship, donations
costs – labour, materials, overheads, hire fees, catering
techniques for making budget estimates and forecasts
type of supporting information required
presentation techniques
formats for budgets
principles of budgetary control
principles of statistical analysis and measures of variance to enable accurate analysis of data.
Assessment Conditions
Skills must be demonstrated in:
a workplace or simulated industry environment.
Assessment must ensure use of:
data required to develop budgets such as sources of income, costing information
computers and technology required for the preparation of budget documents
relevant legislation and organisational policies and procedures such as communication protocols, privacy and confidentiality, approval processes
individuals with whom the candidate interacts on budget allocation and approvals, these can be:
participants in a workplace, or
individuals who participate in project activities, role plays or simulated activities, set up for the purpose of assessment, within a training organisation.
Assessment activities that allow the individual to:
prepare budgets within industry realistic timeframes.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement. | |
SKILLS | DESCRIPTION |
Technology skills to: | use computer-based systems to obtain budgetary data and record financial information. |
Sectors
Cross-Sector
Competency Field
Finance