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Evidence Guide: BSBFIM701A - Manage financial resources

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBFIM701A - Manage financial resources

What evidence can you provide to prove your understanding of each of the following citeria?

Forecast future financial resource needs

  1. Establish and report on the capacity of existing financial systems
  2. Forecast financial data and business system requirements
  3. Analyse forecasted requirements
  4. Prepare and plan budget forecasts according to organisational and statutory requirements
  5. Prepare and present recommendations for budget expenditure or for modification of existing projections
Establish and report on the capacity of existing financial systems

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Forecast financial data and business system requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse forecasted requirements

Completed
Date:

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Prepare and plan budget forecasts according to organisational and statutory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare and present recommendations for budget expenditure or for modification of existing projections

Completed
Date:

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Analyse current asset performance and capacity

  1. Analyse the costs of, and returns from, assets and liabilities using standard accounting techniques to identify extent of debt and equity financing
  2. Establish management responsibilities and legal requirements for reporting, in consultation with relevant organisational staff
  3. Analyse and interpret financial reports and key information
  4. Analyse and evaluate the effects of financial decisions on the ability of the organisation to meet planned outcomes
Analyse the costs of, and returns from, assets and liabilities using standard accounting techniques to identify extent of debt and equity financing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish management responsibilities and legal requirements for reporting, in consultation with relevant organisational staff

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse and interpret financial reports and key information

Completed
Date:

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Analyse and evaluate the effects of financial decisions on the ability of the organisation to meet planned outcomes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Set business targets and compliance mechanisms

  1. Collect comparative and trend information and confirm needs for future budget and associated resources
  2. Complete negotiations to secure resources in accordance with relevant short-term and long-term needs
  3. Allocate resources against the budget to maximise organisation's performance
  4. Maintain accurate and up-to-date records of resource allocation and usage according to organisational requirements
  5. Develop and review management systems which enable timely collection, management and processing of information
  6. Complete and accurately report records of budget performance and expenditure according to organisational procedures and statutory requirements
  7. Evaluate and improve budget audit mechanisms and compliance requirements as required
Collect comparative and trend information and confirm needs for future budget and associated resources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete negotiations to secure resources in accordance with relevant short-term and long-term needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Allocate resources against the budget to maximise organisation's performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain accurate and up-to-date records of resource allocation and usage according to organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop and review management systems which enable timely collection, management and processing of information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete and accurately report records of budget performance and expenditure according to organisational procedures and statutory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate and improve budget audit mechanisms and compliance requirements as required

Completed
Date:

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Manage financial risk

  1. Identify and analyse financial risk factors
  2. Document and manage financial risks according to organisational policies and procedures
  3. Implement procedures to review financial risk management activities regularly
Identify and analyse financial risk factors

Completed
Date:

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Document and manage financial risks according to organisational policies and procedures

Completed
Date:

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Implement procedures to review financial risk management activities regularly

Completed
Date:

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Monitor compliance with financial projections

  1. Identify deviations from budgets that generate an adverse affect on budget objectives
  2. Promptly develop action plans to remedy significant deviations from budget objectives and projections
  3. Monitor and review financial documentation against organisational objectives
  4. Revise and renew budget priorities to meet operational contingencies and risk management
  5. Manage costs to targets set in the budget
Identify deviations from budgets that generate an adverse affect on budget objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Promptly develop action plans to remedy significant deviations from budget objectives and projections

Completed
Date:

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Monitor and review financial documentation against organisational objectives

Completed
Date:

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Revise and renew budget priorities to meet operational contingencies and risk management

Completed
Date:

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Manage costs to targets set in the budget

Completed
Date:

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Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 following is essential:

preparing a financial resource plan/budget

monitoring and managing financial resources over a full planning cycle

effectively communicating financial reports and operational execution

transferring competence to changing circumstances and responding to unusual situations

knowledge of relevant legislation.

Context of and specific resources for assessment

Assessment must ensure:

access to workplace contractual and procurement documentation

competence is consistently demonstrated over time, and over a range and variety of situations

access to appropriate documentation and resources normally used in the workplace

access to an appropriate operating environment.

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:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

completion of applied projects or learning activities, such as budget preparation, analysis and reporting, preparation of financial forecasts, and review and analysis of costs

direct observation of contextual application of skills

oral or written questioning to assess knowledge of risk and return

review of documentation displaying compliance with professional and regulatory standards for financial management.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBLED710A Develop human capital.

Required Skills and Knowledge

Required skills

analytical skills to identify potential risks of any type

communication skills to identify financial information and to follow Australian Accounting and Auditing Standards, and the organisation's accounting procedures

decision making skills

interpersonal skills to:

maintain appropriate relationships with colleagues

establish trust

value and be open to, the opinions of others

work as part of a team

listening actively

negotiation skills

planning and organisation skills to timetable and schedule reports and lodgements

problem-solving, initiative and enterprise skills to prepare budgets and to monitor their implementation

research skills to identify valuations and applicable professional standards

risk management skills.

Required knowledge

accounting, financial statements and cash flow

communication processes and methods

compliance requirements

cost of capital, capital structure and working capital

finance and investment decisions

goal of financial resource management

legislation, codes and by-laws relevant to the organisation's operations

principles of finance

relevant legislation from all levels of government that affect business operation, especially occupational health and safety (OHS) and environmental issues, equal opportunity, industrial relations and anti-discrimination

risk and return .

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.

Systems are defined as:

a detailed description/depiction of how organisations relate to their environments and how they process information through strategic and tactical management to develop actual operating procedures

Financial data may include:

Australian Bureau of Statistics (ABS) economic data

balance sheet

benchmarks or trend analysis

budget variances

budgets and forecasts

cash flow/profit reports

financial/operational statements and reports (such as expenditures and receipts, profit and loss statements)

financial markets monitoring services (such as Reuters)

income statements

market valuations

Statutory requirements may include:

delegated authorities

internal control procedures

reporting periods

taxation payment timings

Standard accounting techniques relating to the management of financial resources for an organisation may include:

deprival asset valuations

direct and indirect allocation

discounted cash flows

impact statements

internal rate of return

net present value

pay back break even periods

pro-rata and percentage apportionment

rates of return

Management responsibilities may include:

organisational policies, procedures, guidelines, ethical and/or professional standards

Legal requirements may include:

private sector requirements such as:

Australian Accounting Standards (SAC 1, 2, Framework AASB1001)

Corporations Act 2001

GST and income tax reporting

public sector requirements such as:

Financial Administration and Audit Act 1977

Financial Management Standard 1997

Key information may include:

gross profit

net profit

return on investment

Or for public or not-for-profit organisations:

best use of resources

surplus/deficit against budget

value for money

Comparative and trend information includes:

availability of external funding sources

benchmarks as agreed

business activity

brand value

expenses

leverage

liquidity

profitability

return on equity

sales

wages

Organisational requirements may include:

financial analysis assessments

financial management manuals

legal and organisational policies, guidelines and requirements

OHS policies, procedures and programs

price and exchange parameters

quality assurance and/or procedures manuals

recording and filing systems

reporting requirements

standard financial analysis techniques

Risks may include:

damage to property/equipment

environmental

equipment/system failures

financial/economic loss/failure

industrial disputation

market changes

natural disasters

OHS including disease

political events

product failure

professional incompetence

security failure (including criminal or terrorist activities)

Risk management is:

the process of identification of potential negative events and the development of plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur

Financial documentation relating to the management of financial resources for an organisation may include:

balance sheets

budgetary analysis

electronic forms

financial year reports

forecasts and estimates

operating statements

order and supplier documentation

returns on investments

spreadsheets

taxation and statutory returns