Application
This unit involves the skills and knowledge required to set and achieve workplace budgets in accordance with relevant regulatory requirements, standards, financial codes of practice and workplace procedures.
It includes planning budget requirements, monitoring the budget and taking appropriate corrective action when needed. It also includes monitoring expenditure, and reviewing and appropriately modifying the budget if necessary.
Work is under general guidance on progress and outcomes. It requires discretion and judgement for self and others in planning and using resources, services and processes to achieve required outcomes.
The unit generally applies to those with responsibility for resource coordination and allocation, who lead individuals or teams.
No licensing, legislative or certification 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 | Plan budget requirements | 1.1 | Financial flows for budgetary periods are planned and scheduled in accordance with workplace requirements |
1.2 | Information on costs and resource utilisation is fully assessed and correctly interpreted | ||
1.3 | Effective action is taken to reduce costs and enhance value to customer and/or workplace | ||
2 | Monitor budget and take corrective action | 2.1 | Corrective action is taken in response to actual or potential significant deviations from financial plans |
2.2 | Where a budget under- or over-spend is likely to occur, appropriate people are informed with minimum delay | ||
2.3 | Prompt, corrective action is taken in response to actual or potential significant deviations from budget | ||
3 | Monitor expenditure | 3.1 | Expenditure made is within agreed limits and future spending requirements are not compromised, in accordance with workplace policy and procedures |
3.2 | Requests for expenditure outside limits of responsibility are referred to appropriate persons | ||
3.3 | Expenditure is phased, in accordance with a planned time scale as required | ||
4 | Review and modify budget | 4.1 | Actual income and expenditure is checked against agreed budgets at regular, appropriate intervals |
4.2 | Necessary authority for changes in allocation between budget heads is obtained in advance of requirement | ||
4.3 | Modifications made to agreed budgets during the accounting period are consistent with agreed guidelines and are correctly authorised | ||
Evidence of Performance
Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include: |
applying basic accounting principles to budgetary processes applying relevant legislation and workplace procedures communicating effectively with others when setting and achieving budgets completing documentation and entering data related to setting and achieving budgets making calculations when setting and achieving budgets maintaining budgetary records and documentation modifying activities to cater for variations in workplace contexts and environment monitoring work activities in terms of planned schedule operating electronic communications equipment to required protocol prioritising work and coordinating self and others in relation to workplace activities providing leadership and working collaboratively with others when setting and achieving budgets reading and interpreting budgetary documents, financial statements and reports, and workplace policies and procedures relevant to setting and achieving budgets reporting and/or rectifying identified problems promptly, in accordance with regulatory requirements and workplace procedures selecting and applying appropriate technology, information systems and procedures working systematically with required attention to detail. |
Evidence of Knowledge
Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of: |
accountancy practices relevant to budgetary control budgetary control systems budgetary procedures and policies budgetary systems, resources, management and workplace operating systems limits of authorised expenditure problems that may occur when setting and achieving budgets and action that can be taken to report or resolve these problems quality and customer service standards, policies and procedures relevant regulations, codes of practice and legislative requirements resource availability including the competencies of individuals in the team/group risks that may exist when setting and achieving budgets and ways of controlling these risks workplace processes for setting and achieving budgets. |
Assessment Conditions
As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.
As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.
Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.
Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.
Resources for assessment include:
a range of relevant exercises, case studies and/or other simulations
relevant and appropriate materials, tools, equipment and personal protective equipment currently used in industry
applicable documentation including workplace procedures, regulations, codes of practice and operation manuals.
Foundation Skills
Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.
Range Statement
Range is restricted to essential operating conditions and any other variables essential to the work environment.
Non-essential conditions can be found in the Companion Volume Implementation Guide.
Sectors
Not applicable.
Competency Field
P ‒ Administration and Finance