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Evidence Guide: FNSACC503A - Manage budgets and forecasts

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

 

FNSACC503A - Manage budgets and forecasts

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

Prepare budget

  1. Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget
  2. Budget objectives are clear and consistent with organisational aims and projects
  3. Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation
  4. Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends
Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Budget objectives are clear and consistent with organisational aims and projects

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Forecast estimates

  1. Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation
  2. Relevant data for forecasts are identified and changes in circumstances anticipated
  3. Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies
  4. Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies
Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant data for forecasts are identified and changes in circumstances anticipated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document budget

  1. Data are presented in a format that is easily understood and appropriate to budget reporting
  2. Reports are completed within timelines and distributed for specified periods and projects
  3. Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis
  4. Feasibility is identified by comparison of projections with market growth and development
Data are presented in a format that is easily understood and appropriate to budget reporting

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reports are completed within timelines and distributed for specified periods and projects

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Feasibility is identified by comparison of projections with market growth and development

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor budget outcomes

  1. Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person
  2. Budget processes are reviewed and implemented as required
Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Budget processes are reviewed and implemented as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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 ability to:

prepare and document budgets and forecasting estimates

monitor budget outcomes periodically

apply accounting principles and practices and organisational policies and procedures

use an organisational chart of accounts.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

communication skills to:

determine and confirm budgeting requirements and deal with clients, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills for accessing and managing financial services information

literacy skills for analysingbudget needs and preparing clear written advice for organisational clients

numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using spreadsheets and databases and using internet information

learning skills to maintain knowledge of budgeting principles and procedures

problem solving skills to identify any budgeting issues that have the potential to impact on clients and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule budget monitoring and reporting

Required knowledge

ethical considerations for budgetary forecasting and projections such as:

strength of assumptions

forecast reliabilities

forecasting techniques

organisational procedures and policies

principles and practices of accrual accounting

principles of budgetary control

principles of corporate governance

principles of double-entry bookkeeping

principles of statistical analysis and measures of variance

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.

Expenditure and revenue items may include:

capital expenditure

client and supplier payments such as:

sales

commissions

community service obligation expenditure

discretionary expenditure

fees and charges

occasional expenditures

other revenues

revenue producing expenditures

sales

service fees.

Budgets may include:

cash budgets

labour budgets

manufacturing budgets

production budgets

purchase budgets

sales budgets

statements of financial performance

statements of financial position.

Budget objectives may include:

annual planning

business expansion and growth

cost reduction

debt reduction

rolling forecasts:

next period

monthly

next year

solvency

strategic review for the long term

Stakeholders may include:

chief executive and financial officers

clients

employees

financial institutions

managers and company officers such as:

company directors

boards of management

government ministers

suppliers

Milestones and performance indicators may include:

compliance with scheduled payment dates

debt reduction targets

profits and losses

reports

quarterly

half yearly

annually

unit costs.

Verifiable evidence and source documentation may include:

financial institution statements

invoices and receipts

order and supplier documentation

taxation and statutory returns.

Data may include:

cash flow projections

fixed costs

sales records and projections

variable business costs.

Assumptions and parameters may include:

cash and business returns

competitors' behaviour

expenditure limits

market share growth

productivity levels

regulatory stability.