Application
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.
Prerequisites
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 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. |
Required knowledge |
a range of formats for, use and contents of: budgets 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 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. |
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 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. |
Appropriate colleagues may include: | internal or external financial specialists managers 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 expenditure income occupancy rates and financial return performance of: department project products and services sales performance sales returns staff costs stock levels variance in income and/or expenditure wastage yield. |
Sectors
Cross-Sector
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.