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Evidence Guide: BSBGOV504 - Monitor organisational finances

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

 

BSBGOV504 - Monitor organisational finances

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

Review organisational financial management processes

  1. Document respective financial management responsibilities of the board or committee, and management
  2. Explain legal responsibilities of individual board members and the board as a whole to the committee or board
  3. Determine financial information required by the board or committee from management
  4. Identify the statutory requirements of the board or the committee
  5. 1.5 Seek advice on suitable financial management systems that will enable reporting against the organisation's overall financial health.
Document respective financial management responsibilities of the board or committee, and management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain legal responsibilities of individual board members and the board as a whole to the committee or board

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine financial information required by the board or committee from management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the statutory requirements of the board or the committee

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

1.5 Seek advice on suitable financial management systems that will enable reporting against the organisation's overall financial health.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply financial management processes and systems

  1. Access appropriate policies and procedures to open and/or operate necessary bank accounts
  2. Identify approved signatories for the bank accounts
  3. Access finance procedures and reporting requirements specified by organisational stakeholders or funding bodies, and check that requirements for finance documentation are met
  4. Review timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities, organisational stakeholders and/or funding bodies
  5. Review documentation for authority and delegation between the board or committee and management for the management of finances
  6. Ensure statutory requirements with regard to financial management are followed
  7. Review policies and procedures to ensure they provide checks and balances to prevent, identify and deal with fraud
  8. Review organisational procedures and documentation for receiving and expending funds
  9. Review process for financial reporting against organisational budget and ensure established procedures and maintained by management
Access appropriate policies and procedures to open and/or operate necessary bank accounts

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify approved signatories for the bank accounts

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Access finance procedures and reporting requirements specified by organisational stakeholders or funding bodies, and check that requirements for finance documentation are met

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities, organisational stakeholders and/or funding bodies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review documentation for authority and delegation between the board or committee and management for the management of finances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure statutory requirements with regard to financial management are followed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review policies and procedures to ensure they provide checks and balances to prevent, identify and deal with fraud

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review organisational procedures and documentation for receiving and expending funds

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review process for financial reporting against organisational budget and ensure established procedures and maintained by management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Meet financial reporting requirements

  1. Ensure financial information is made available to members as specified in the constitution
  2. Facilitate the clear presentation of financial information at meetings
  3. Identify the type and content of financial information that can be made publicly available
Ensure financial information is made available to members as specified in the constitution

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Facilitate the clear presentation of financial information at meetings

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the type and content of financial information that can be made publicly available

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

4. Monitor organisational expenditure

  1. Review and evaluate organisational budget and financial statements to ensure they meet requirements
  2. Compare income and expenditure to budget and previous periods and identify and investigate discrepancies
  3. Discuss achievement and variances to the budget in committee or board meetings
  4. Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent
  5. Document recommendations for action or variances
Review and evaluate organisational budget and financial statements to ensure they meet requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare income and expenditure to budget and previous periods and identify and investigate discrepancies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss achievement and variances to the budget in committee or board meetings

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document recommendations for action or variances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor organisational expenditure

  1. Review and evaluate organisational budget and financial statements to ensure they meet requirements
  2. Compare income and expenditure to budget and previous periods and identify and investigate discrepancies
  3. Discuss achievement and variances to the budget in committee or board meetings
  4. Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent
  5. Document recommendations for action or variances
Review and evaluate organisational budget and financial statements to ensure they meet requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare income and expenditure to budget and previous periods and identify and investigate discrepancies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss achievement and variances to the budget in committee or board meetings

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document recommendations for action or variances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Review organisational financial management processes

1.1 Document respective financial management responsibilities of the board or committee, and management

1.2 Explain legal responsibilities of individual board members and the board as a whole to the committee or board

1.3 Determine financial information required by the board or committee from management

1.4 Identify the statutory requirements of the board or the committee

1.5 Seek advice on suitable financial management systems that will enable reporting against the organisation's overall financial health.

2. Apply financial management processes and systems

2.1 Access appropriate policies and procedures to open and/or operate necessary bank accounts

2.2 Identify approved signatories for the bank accounts

2.3 Access finance procedures and reporting requirements specified by organisational stakeholders or funding bodies, and check that requirements for finance documentation are met

2.4 Review timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities, organisational stakeholders and/or funding bodies

2.5 Review documentation for authority and delegation between the board or committee and management for the management of finances

2.6 Ensure statutory requirements with regard to financial management are followed

2.7 Review policies and procedures to ensure they provide checks and balances to prevent, identify and deal with fraud

2.8 Review organisational procedures and documentation for receiving and expending funds

2.9 Review process for financial reporting against organisational budget and ensure established procedures and maintained by management

3. Meet financial reporting requirements

3.1 Ensure financial information is made available to members as specified in the constitution

3.2 Facilitate the clear presentation of financial information at meetings

3.3 Identify the type and content of financial information that can be made publicly available

4. Monitor organisational expenditure

4.1 Review and evaluate organisational budget and financial statements to ensure they meet requirements

4.2 Compare income and expenditure to budget and previous periods and identify and investigate discrepancies

4.3 Discuss achievement and variances to the budget in committee or board meetings

4.4 Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent

4.5 Document recommendations for action or variances

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Review organisational financial management processes

1.1 Document respective financial management responsibilities of the board or committee, and management

1.2 Explain legal responsibilities of individual board members and the board as a whole to the committee or board

1.3 Determine financial information required by the board or committee from management

1.4 Identify the statutory requirements of the board or the committee

1.5 Seek advice on suitable financial management systems that will enable reporting against the organisation's overall financial health.

2. Apply financial management processes and systems

2.1 Access appropriate policies and procedures to open and/or operate necessary bank accounts

2.2 Identify approved signatories for the bank accounts

2.3 Access finance procedures and reporting requirements specified by organisational stakeholders or funding bodies, and check that requirements for finance documentation are met

2.4 Review timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities, organisational stakeholders and/or funding bodies

2.5 Review documentation for authority and delegation between the board or committee and management for the management of finances

2.6 Ensure statutory requirements with regard to financial management are followed

2.7 Review policies and procedures to ensure they provide checks and balances to prevent, identify and deal with fraud

2.8 Review organisational procedures and documentation for receiving and expending funds

2.9 Review process for financial reporting against organisational budget and ensure established procedures and maintained by management

3. Meet financial reporting requirements

3.1 Ensure financial information is made available to members as specified in the constitution

3.2 Facilitate the clear presentation of financial information at meetings

3.3 Identify the type and content of financial information that can be made publicly available

4. Monitor organisational expenditure

4.1 Review and evaluate organisational budget and financial statements to ensure they meet requirements

4.2 Compare income and expenditure to budget and previous periods and identify and investigate discrepancies

4.3 Discuss achievement and variances to the budget in committee or board meetings

4.4 Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent

4.5 Document recommendations for action or variances

Evidence of the ability to:

review the following organisational financial management systems:

use of financial ratios as a heuristic for financial health

resilience

solvency

review the following organisational financial management reports:

balance sheet

cash flow

profit and loss statement

written report

apply financial management processes and systems that accurately measure organisational performance against:

the organisation's budget

the organisation's overall financial health

long term organisational financial planning

communicate effectively with board or committee members, and stakeholders on financial issues

put processes in place to ensure that:

finance procedures and reporting requirements specified by organisational stakeholders or funding bodies are met

fraud is identified, managed and prevented

ensure adherence to the following organisational financial systems:

financial statement timelines

procedures for receiving and expending funds

statutory and delegation requirements

the budget process

examine and identify variances in budget and investigate discrepancies

identify the risk associated with an organisation heading towards insolvency and the action required:

cease trading

seek assistance

document financial information.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

outline the following financial responsibilities of management and board or committee members:

statutory and delegation authority

delegation and information requirements

explain the statutory requirements of the board or committee

discuss suitable financial management systems that enable the organisation to report against:

the organisation's budget

the organisation's overall financial health

long term organisational financial planning

outline documentation requirements with regard to finance reporting requirements and finance procedures

list board or committee financial reporting requirements

Range Statement

This section specifies different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Suitable financial management systems must include:

the use of financial ratios as a heuristic for financial health

resilience

solvency

Suitable financial reports must include:

balance sheet

cash flow

profit and loss statement

written report