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.
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.
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 day
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.
a range of formats for, use and contents of:
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.
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 third
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.
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 flow budgets
whole of organisation budgets.
bank deposit documentation
business activity statements
credit card transaction statements
labour and wages reports
Appropriate colleagues may include:
internal or external financial specialists
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:
commercial account activity
covers and financial return
daily, weekly and monthly transactions
occupancy rates and financial return
products and services
variance in income and/or expenditure
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.