Manage finances within a budget

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 found in unit SITXFIN501 Prepare and monitor budgets.


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

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


Not applicable.

Elements and Performance Criteria

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

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 all 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.

Required Skills

Required skills

communication skills to discuss budget requirements and to seek and provide feedback

critical thinking skills to analyse resource use and costs

initiative and enterprise skills to proactively identify better resource usage and budgetary improvements

literacy skills to:

read and interpret a wide range of business and financial documents

research options for more effective budgetary control

write budget reports and recommendations

numeracy skills to interpret and use budget figures in daytoday work operations, and to calculate budget estimates and scenarios for performance improvement

planning and organising skills to produce budgetary reports within designated timelines

problem-solving skills to identify budget deviations and deficiencies and develop options for improved budgetary performance

self-management skills to take responsibility for budget management

teamwork skills to discuss desired budget outcomes with team members and provide direction on resource usage

technology skills to use accounting software packages.

Required knowledge

a range of formats for, use and contents of:


financial reports

statistical reports

budget terminology

for the 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.

Evidence Required

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

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

Evidence of the ability to:

interpret and manage multiple budgets to meet specific and differing workplace needs

monitor income and expenditure and evaluate budgetary performance over a budgetary life-cycle

use correct budget terminology

integrate knowledge of the formats, use and contents of budgets, financial and statistical reports

complete financial reports within designated timelines.

Context of and specific resources for assessment

Assessment must ensure use of:

a real or simulated tourism, hospitality or event industry business operation or activity for which budgets are managed

computers, printers and accounting software packages currently used by the tourism, hospitality and event industries

budgets for specific projects, events or operational activities.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

projects and activities that allow assessment of the individual’s ability to:

interpret and manage budgets; monitor income and expenditure

produce financial and statistical reports

report on overall budgetary performance

evaluation of reports produced by the individual detailing the processes undertaken to manage finances within a budget

written or oral questioning to assess knowledge of budget terminology, format and content

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

BSBPMG501A Manage projects

SITXFIN401 Interpret financial information

SITXFIN501 Prepare and monitor budgets.

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, 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.

Budget may include:

budgets for micro, small, medium or large businesses

cash budgets

cash flow budgets

departmental budgets

event budgets

project budgets

purchasing budgets

sales budgets

wage budgets

whole of organisation budgets.

Financial recordsmay include:

bank deposit documentation

bank statements

banking summaries

business activity statements

cheque books

credit card transaction statements


journal entries

labour and wages reports

merchant statements

merchant summaries

transaction reports.

Appropriate colleagues may include:

internal or external financial specialists


operational staff.

Research to investigate new approaches may include:

discussions with existing suppliers

evaluating staffing and rostering requirements

potential roster changes

reviewing operating procedures

sourcing new suppliers.

Financial and statistical reports may relate to:

cash flow

commercial account activity

commission earnings

covers and financial return

daily, weekly and monthly transactions



occupancy rates and financial return

performance of:



products and services

sales performance

sales returns

staff costs

stock levels

variance in income and/or expenditure





Employability Skills

This unit contains employability skills.

Licensing Information

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.