SITXFIN003
Manage finances within a budget


Application

This unit describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. It requires the ability to interpret budgetary requirements, allocate resources, monitor actual income and expenditure, and report on budgetary deviations.

The skills and knowledge for budget development are covered in SITXFIN004 Prepare and monitor budgets.

This unit applies to all tourism, travel, hospitality and event sectors. The budget may be for an entire organisation, for a department or for a particular project or activity.

It applies to those who operate independently or with limited guidance from others. This includes supervisors and departmental managers.

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. Allocate budget resources.

1.1.Allocate funds according to budget and agreed priorities.

1.2.Discuss changes to income and expenditure priorities with appropriate colleagues prior to implementation.

1.3.Consult with and inform relevant personnel about resource decisions.

1.4.Promote awareness of the importance of budget control.

1.5.Maintain detailed records of resource allocation according to organisational control systems.

2. Monitor financial activities against budget.

2.1.Use financial records to regularly check actual income and expenditure against budgets.

2.2.Include financial commitments in all documentation to ensure accurate monitoring.

2.3.Identify and report deviations according to significance of deviation.

2.4.Investigate appropriate options for more effective management of deviations.

2.5.Advise appropriate colleagues of budget status in relation to targets.

3. Identify and evaluate options for improved budget performance.

3.1.Assess existing costs and resources and proactively identify areas for improvement.

3.2.Discuss desired budget outcomes with relevant colleagues.

3.3.Undertake appropriate research to investigate new approaches to budget management.

3.4.Define and communicate the benefits and disadvantages of new approaches.

3.5.Take account of impacts on customer service levels and colleagues in developing new approaches.

3.6.Present clear and logical recommendations for budget management.

4. Complete financial and statistical reports.

4.1.Complete financial and statistical reports within designated timelines.

4.2.Prepare and present clear and concise information to enable informed decision making.

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:

manage a budget for a business over a three-month period that meets the specific business’ needs

undertake at least two of the following to inform management of the above budget:

discussions with existing suppliers

evaluation of staffing and rostering requirements

evaluation of impact of potential roster changes

review of operating procedures

sourcing new suppliers

monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle

complete financial reports related to the above budget within designated timelines and using correct budget terminology.


Evidence of Knowledge

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

types of financial records:

bank deposit documentation

bank statements

banking summaries

business activity statements

cheque books

credit card transaction statements

invoices

journal entries

labour and wages reports

merchant statements

merchant summaries

transaction reports

types of budgets:

cash budgets

cash flow budgets

departmental budgets

event budgets

project budgets

purchasing budgets

sales budgets

wage budgets

whole of organisation budgets

factors for consideration in the preparation of financial and statistical reports:

cash flow

commercial account activity

commission earnings

covers and financial return

daily, weekly and monthly transactions

expenditure

income

occupancy rates and financial return

performance of department, project and/or products and services

sales performance

sales returns

staff costs

stock levels

variance in income and/or expenditure

wastage

yield

use, contents of and formats for:

budgets

financial reports

statistical reports

budget terminology

specific industry sector and organisation:

use of budgets to control costs and enhance profitability

importance of budget control

techniques for maximising budget performance

financial reporting procedures and cycles

features and functions of accounting software programs used to manage budgets.


Assessment Conditions

Skills must be demonstrated in an operational tourism, travel, hospitality or events business operation for which budgets are managed. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

computers, printers and accounting software packages

budgets for specific projects, events or operational activities

others with whom the individual can discuss budget components; these can be:

those in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

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

Reading skills to:

interpret business and financial documents.

Writing skills to:

document clear recommendations based on budget information and reports.

Oral communication skills to:

discuss budget requirements and seek and provide feedback.

Numeracy skills to:

interpret and use budget figures in day-to-day work operations

calculate budget estimates and scenarios for performance improvement.

Problem-solving skills to:

identify budget deviations and deficiencies and develop options for improved budgetary performance.

Teamwork skills to:

discuss desired budget outcomes with team members and provide direction on resource use.

Technology skills to:

use accounting software packages.


Sectors

Cross-Sector


Competency Field

Finance