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Evidence Guide: MEA146 - Prepare and manage aviation maintenance organisation budgets and financial plans

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

 

MEA146 - Prepare and manage aviation maintenance organisation budgets and financial plans

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

Analyse strategic opportunities and intended maintenance activities

  1. Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities
  2. All intended maintenance activities are converted into special projects or work programs
  3. Financial trends are analysed and interpreted in the context of the organisational strategic objectives
  4. Financial planning objectives, process timeframes and resources are clearly identified
Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

All intended maintenance activities are converted into special projects or work programs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial trends are analysed and interpreted in the context of the organisational strategic objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial planning objectives, process timeframes and resources are clearly identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop revenue, expenditure and capital investment proposals

  1. Individuals and groups are given responsibility for the development of specific budgets and plans
  2. Consultation occurs with all relevant groups and individuals throughout the organisation
  3. Proposals are developed taking account of past experience, present trends and future expectations
  4. Outcomes of proposals are clearly linked to organisational strategic objectives
  5. Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals
  6. Organisational investment target rates are met for capital expenditure proposals
  7. Performance measures and tactics for monitoring and control processes are identified for each proposal/action and a financial risk management plan is developed
  8. Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations
  9. Proposals are developed within the agreed timeframes
  10. Supporting evidence is valid and sufficient to allow proper evaluation of the proposals
Individuals and groups are given responsibility for the development of specific budgets and plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consultation occurs with all relevant groups and individuals throughout the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Proposals are developed taking account of past experience, present trends and future expectations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Outcomes of proposals are clearly linked to organisational strategic objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organisational investment target rates are met for capital expenditure proposals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Performance measures and tactics for monitoring and control processes are identified for each proposal/action and a financial risk management plan is developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Proposals are developed within the agreed timeframes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Supporting evidence is valid and sufficient to allow proper evaluation of the proposals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Build agreement for budgets and financial plans

  1. Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans
  2. Links to the achievement of organisational strategic objectives are identified and agreed
  3. Outcomes are confirmed in terms of clear, concise objectives and timeframes
  4. Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans
  5. Budgets and plans incorporate the outcomes of negotiations and meet the organisation’s approval processes
  6. Delegations, accountabilities and responsibilities are agreed and confirmed in writing
  7. Final budget and plans are clearly documented and a communication plan developed
Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Links to the achievement of organisational strategic objectives are identified and agreed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Outcomes are confirmed in terms of clear, concise objectives and timeframes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Budgets and plans incorporate the outcomes of negotiations and meet the organisation’s approval processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Delegations, accountabilities and responsibilities are agreed and confirmed in writing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Final budget and plans are clearly documented and a communication plan developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate budget and financial plans

  1. Budget/financial plan communication package is reviewed by finance specialists
  2. Package is amended/revised where appropriate
  3. Training activities are undertaken with users of the budget and plans across the organisation
  4. All data and terms are defined and understood by the users of the plans
  5. Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities
Budget/financial plan communication package is reviewed by finance specialists

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Package is amended/revised where appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Training activities are undertaken with users of the budget and plans across the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

All data and terms are defined and understood by the users of the plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and control activities against plans

  1. Delegations and budget accountabilities are confirmed in writing prior to budget period
  2. Funds are allocated in accordance with budget objectives and parameters
  3. Recording systems and documentation meet all audit requirements and legal obligations
  4. Risk management plans are implemented and contingency plans put in place for all financial plans
  5. Performance is monitored and variances promptly identified
  6. Variances are analysed in conjunction with relevant experts to determine cause and effect
  7. Remedial action is taken swiftly to minimise negative impact and maximise benefits
  8. Budgets and plans are renegotiated/restructured, where necessary, to optimise organisational performance
Delegations and budget accountabilities are confirmed in writing prior to budget period

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Funds are allocated in accordance with budget objectives and parameters

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recording systems and documentation meet all audit requirements and legal obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk management plans are implemented and contingency plans put in place for all financial plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Performance is monitored and variances promptly identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Variances are analysed in conjunction with relevant experts to determine cause and effect

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Remedial action is taken swiftly to minimise negative impact and maximise benefits

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Budgets and plans are renegotiated/restructured, where necessary, to optimise organisational performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report outcomes of financial plans

  1. Records of financial performance are properly maintained within organisational systems
  2. Financial performance is analysed and reported in a form and language appropriate to the audience
  3. Non-financial objectives are reported in the context of overall organisational performance
  4. Strategies and plans are reviewed and updated to optimise organisational performance
Records of financial performance are properly maintained within organisational systems

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial performance is analysed and reported in a form and language appropriate to the audience

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Non-financial objectives are reported in the context of overall organisational performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Strategies and plans are reviewed and updated to optimise organisational performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Elements describe the essential outcomes.

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

1.

Analyse strategic opportunities and intended maintenance activities

1.1

Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities

1.2

All intended maintenance activities are converted into special projects or work programs

1.3

Financial trends are analysed and interpreted in the context of the organisational strategic objectives

1.4

Financial planning objectives, process timeframes and resources are clearly identified

2.

Develop revenue, expenditure and capital investment proposals

2.1

Individuals and groups are given responsibility for the development of specific budgets and plans

2.2

Consultation occurs with all relevant groups and individuals throughout the organisation

2.3

Proposals are developed taking account of past experience, present trends and future expectations

2.4

Outcomes of proposals are clearly linked to organisational strategic objectives

2.5

Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals

2.6

Organisational investment target rates are met for capital expenditure proposals

2.7

Performance measures and tactics for monitoring and control processes are identified for each proposal/action and a financial risk management plan is developed

2.8

Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations

2.9

Proposals are developed within the agreed timeframes

2.10

Supporting evidence is valid and sufficient to allow proper evaluation of the proposals

3.

Build agreement for budgets and financial plans

3.1

Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans

3.2

Links to the achievement of organisational strategic objectives are identified and agreed

3.3

Outcomes are confirmed in terms of clear, concise objectives and timeframes

3.4

Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans

3.5

Budgets and plans incorporate the outcomes of negotiations and meet the organisation’s approval processes

3.6

Delegations, accountabilities and responsibilities are agreed and confirmed in writing

3.7

Final budget and plans are clearly documented and a communication plan developed

4.

Communicate budget and financial plans

4.1

Budget/financial plan communication package is reviewed by finance specialists

4.2

Package is amended/revised where appropriate

4.3

Training activities are undertaken with users of the budget and plans across the organisation

4.4

All data and terms are defined and understood by the users of the plans

4.5

Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities

5.

Monitor and control activities against plans

5.1

Delegations and budget accountabilities are confirmed in writing prior to budget period

5.2

Funds are allocated in accordance with budget objectives and parameters

5.3

Recording systems and documentation meet all audit requirements and legal obligations

5.4

Risk management plans are implemented and contingency plans put in place for all financial plans

5.5

Performance is monitored and variances promptly identified

5.6

Variances are analysed in conjunction with relevant experts to determine cause and effect

5.7

Remedial action is taken swiftly to minimise negative impact and maximise benefits

5.8

Budgets and plans are renegotiated/restructured, where necessary, to optimise organisational performance

6.

Report outcomes of financial plans

6.1

Records of financial performance are properly maintained within organisational systems

6.2

Financial performance is analysed and reported in a form and language appropriate to the audience

6.3

Non-financial objectives are reported in the context of overall organisational performance

6.4

Strategies and plans are reviewed and updated to optimise organisational performance

Required Skills and Knowledge

Elements describe the essential outcomes.

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

1.

Analyse strategic opportunities and intended maintenance activities

1.1

Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities

1.2

All intended maintenance activities are converted into special projects or work programs

1.3

Financial trends are analysed and interpreted in the context of the organisational strategic objectives

1.4

Financial planning objectives, process timeframes and resources are clearly identified

2.

Develop revenue, expenditure and capital investment proposals

2.1

Individuals and groups are given responsibility for the development of specific budgets and plans

2.2

Consultation occurs with all relevant groups and individuals throughout the organisation

2.3

Proposals are developed taking account of past experience, present trends and future expectations

2.4

Outcomes of proposals are clearly linked to organisational strategic objectives

2.5

Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals

2.6

Organisational investment target rates are met for capital expenditure proposals

2.7

Performance measures and tactics for monitoring and control processes are identified for each proposal/action and a financial risk management plan is developed

2.8

Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations

2.9

Proposals are developed within the agreed timeframes

2.10

Supporting evidence is valid and sufficient to allow proper evaluation of the proposals

3.

Build agreement for budgets and financial plans

3.1

Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans

3.2

Links to the achievement of organisational strategic objectives are identified and agreed

3.3

Outcomes are confirmed in terms of clear, concise objectives and timeframes

3.4

Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans

3.5

Budgets and plans incorporate the outcomes of negotiations and meet the organisation’s approval processes

3.6

Delegations, accountabilities and responsibilities are agreed and confirmed in writing

3.7

Final budget and plans are clearly documented and a communication plan developed

4.

Communicate budget and financial plans

4.1

Budget/financial plan communication package is reviewed by finance specialists

4.2

Package is amended/revised where appropriate

4.3

Training activities are undertaken with users of the budget and plans across the organisation

4.4

All data and terms are defined and understood by the users of the plans

4.5

Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities

5.

Monitor and control activities against plans

5.1

Delegations and budget accountabilities are confirmed in writing prior to budget period

5.2

Funds are allocated in accordance with budget objectives and parameters

5.3

Recording systems and documentation meet all audit requirements and legal obligations

5.4

Risk management plans are implemented and contingency plans put in place for all financial plans

5.5

Performance is monitored and variances promptly identified

5.6

Variances are analysed in conjunction with relevant experts to determine cause and effect

5.7

Remedial action is taken swiftly to minimise negative impact and maximise benefits

5.8

Budgets and plans are renegotiated/restructured, where necessary, to optimise organisational performance

6.

Report outcomes of financial plans

6.1

Records of financial performance are properly maintained within organisational systems

6.2

Financial performance is analysed and reported in a form and language appropriate to the audience

6.3

Non-financial objectives are reported in the context of overall organisational performance

6.4

Strategies and plans are reviewed and updated to optimise organisational performance

Evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria under the specified conditions of assessment on at least one occasion, and must include:

analysis and interpretation of relevant financial information

development of formal estimates of reviews, costs, cash flows and logistic requirements

communication/consultation to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input

cost and benefit analysis to produce balanced arguments to support financial proposals

risk management to assess probability and consequences of any potential negative event

investment analysis to evaluate capital expenditure proposals net present value (NPV), incentive rate of return (IROR), etc)

negotiating agreement on budgets and financial plans with the relevant managers

relating to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

arranging and delivering training to ensure team members and other managers understand the budget/financial planning objectives and processes

analysing and interpreting positive and negative variances from budget/plan, determining the reasons therefore, and identifying potential actions to remediate the situation

developing and implementing systems to ensure financial performance records are collected, maintained and properly reported.

Evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

relevant legislation from all levels of government that affects business operation, especially in regard to WHS and environmental issues, equal employment opportunity (EEO), industrial relations and anti-discrimination

requirements in Civil Aviation Safety Regulations (CASRs) and AAP 7001.053 Technical Airworthiness Management Manual regarding financial status of maintenance organisations

aircraft and aeronautical product maintenance and maintenance management/certification requirements

financial planning within the organisation

budgeting

organisation’s intended aircraft and aeronautical product maintenance activities

consultative methods and processes

capital investment evaluation techniques

performance measurement

organisation roles in respect to financial delegations, accountabilities and responsibilities

standards for organisational record keeping and audit requirements.

Range Statement

This field allows for 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.

Legislation, codes and national standards relevant to the workplace include:

Civil Aviation Safety Regulations (CASRs) and associated Manuals of Standards

AAP 7001.053 Technical Airworthiness Management Manual

Award and enterprise agreements and relevant industrial instruments

Relevant legislation from all levels of government that affects business operation, especially in regard to work health and safety (WHS), environmental and sustainability issues, equal employment opportunity (EEO) and anti-discrimination

Strategic opportunities include:

Aircraft operators and fleet operators seeking to outsource maintenance

Aeronautical product maintenance needs

Changing regulatory requirements for maintenance

New aircraft types

Provision of logistic support services

Opportunity to respond to requests for tender to provide aircraft and/or aeronautical product maintenance

Opportunity to accept sub-contract maintenance tasks from other maintenance organisations

Budgets and plans include:

Aircraft maintenance budgets

Aeronautical product maintenance budgets

Financial budgets

Logistic services sales budgets

Regulatory compliance budgets

Capital expenditure budgets

Cash flow plans

Relevant groups and individuals include:

All personnel within the organisation affected by the budgets and financial plans being developed

Investment target rates include:

The minimum percentage rate of return required by the organisation for a capital investment project to proceed

Capital expenditure includes:

Those components of the budget which, for internal policy reasons, are considered to provide benefits over more than one financial period and are to be evaluated as capital expenditure projects

Legal and ethical obligations include:

Compliance with all relevant statutes, regulations and audit requirements of the organisation, along with the organisation’s policies, values and codes of conduct

Supporting evidence includes:

Cost-benefit analyses

Risk management plans

Market research results

Tender details

Net present value

Interest rate of return

Pay pack calculations

Delegations

Delegations refer to the decision-making accountabilities relating to the person’s position description and/or other written and verbal delegations

Accountabilities and responsibilities include:

Clarification of who is to be accountable for a decision or action prior to its execution, and identification of groups, individuals and activities for which a person is responsible for managing

Training activities include:

Small group discussions

Informal meetings

Formal, structured competency-based training

Television and video conferencing

E-learning

Delegations and budget accountabilities include:

Monitoring expenditure

Authorising expenditure within limits

Reporting on variances to budget/plan

Taking remedial action within budget authority

Audit requirements include:

The internal standards required in the management of budgets and financial plans, approved by external/internal auditors

Risk management includes:

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

Appropriate non-financial objectives include:

Environmental

Sustainability

Compliance with Maintenance Organisation Exposition (CASA regulatory system)

Compliance with Maintenance Management Plan (ADF regulatory system)

Compliance with requirements of the applicable airworthiness regulator

WHS

Quality and safety management

Market share

Customer service

Security or any other key result area