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Evidence Guide: LGAGCM707A - Use financial and economic information for strategic decision making

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

 

LGAGCM707A - Use financial and economic information for strategic decision making

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

Analyse financial resources

  1. Financial resources required to achieve council objectives are identified and incorporated within budgets.
  2. Additional expenditure required is forecast and provisions are made for access to required finances.
  3. Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds.
Financial resources required to achieve council objectives are identified and incorporated within budgets.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Additional expenditure required is forecast and provisions are made for access to required finances.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Interpret financial and economic information

  1. Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios.
  2. Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated.
  3. Financial performance of business units/councils are reviewed and reported appropriately.
Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial performance of business units/councils are reviewed and reported appropriately.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use financial information to support decision making

  1. Different financial scenarios are identified and modelled to support decision-making process.
  2. Cost-benefit analysis is conducted to support viability of council activities.
  3. Appropriate financial advisers are consulted when using financial information to support business decisions.
  4. Accurate financial information is obtained and analysed when developing business unit plans.
  5. Decisions are made using updated financial information.
Different financial scenarios are identified and modelled to support decision-making process.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Cost-benefit analysis is conducted to support viability of council activities.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate financial advisers are consulted when using financial information to support business decisions.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Accurate financial information is obtained and analysed when developing business unit plans.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Decisions are made using updated financial information.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maximise returns on financial resources

  1. Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded.
  2. Corrective action is taken when deviations in budgets occur, and variations are explained.
  3. Data on the use of financial resources is collected, analysed and reported appropriately.
  4. Recommendations for improving returns on financial resources are communicated to management.
  5. Performance indicators are discussed with managers and staff and agreed upon.
Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Corrective action is taken when deviations in budgets occur, and variations are explained.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Data on the use of financial resources is collected, analysed and reported appropriately.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendations for improving returns on financial resources are communicated to management.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Performance indicators are discussed with managers and staff and agreed upon.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Overview of assessment requirements

A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making.

Critical aspects of evidence to be considered

The demonstrated ability to:

use and analyse financial and economic information to achieve council objectives

understand and apply tasks associated with interpreting and using the financial information outlined in the range statement

Context of assessment

Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.

Method of assessment

The following assessment methods are suggested:

preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit

observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies

written and oral questioning to assess knowledge and understanding

completion of workplace documentation

third-party reports from experienced practitioner

completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor

Evidence required for demonstration of consistent performance

Evidence should be gathered over a period of time in a range of actual or simulated management environments.

Resource implications

Access to a workplace or simulated case study that provides the following resources:

relevant council documents, such as strategic and operational plans

relevant local government legislation and regulations

Required Skills and Knowledge

This describes the essential skills and knowledge and their level, required for this unit

Required Skills

high-level research, analysis and interpretation skills in relation to management accounting and finance

negotiation

numeracy skills to support budgeting, budget analysis and financial and economic analysis, including modelling

decision making

application of decision making strategies to a range of business and financial scenarios

Required Knowledge

relevant financial and accounting principles relating to analysis and interpretation of financial reports and resources

financial and accounting terminology and systems

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 in the Performance Criteria is detailed below.

Economic factors may include:

interest rates

regional, state and national economic conditions and trends

unemployment rates

inflation

government fiscal and monetary policies

consumer confidence

Financial information include:

accountant prepared reports

balance sheets

profit and loss statements

cash flow statements

financial ratios

budgets:

operational

departmental

council

estimated and actual cost and revenue

Performance indicators include:

return on investment

credit ratings

reductions in expenditure

increases in income