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Evidence Guide: SIRXFIN005A - Manage operations to budget

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

 

SIRXFIN005A - Manage operations to budget

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

Control costs.

  1. Implement effective cost reduction measures, according to company policy and procedures.
  2. Assess and interpret information on costs and resource allocation.
  3. Encourage team members actively to control costs in their areas of responsibility.
  4. Implement recommendations promptly for improving cost reduction or communicate to relevant personnel.
Implement effective cost reduction measures, according to company policy and procedures.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and interpret information on costs and resource allocation.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Encourage team members actively to control costs in their areas of responsibility.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement recommendations promptly for improving cost reduction or communicate to relevant personnel.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Control budget.

  1. Monitor and maintain expenditure within budget targets according to business policy.
  2. Compare actual income and expenditure to budget targets at regular intervals according to business policy.
  3. Analyse gross profit and loss figures by business areas and compare with budget targets.
  4. Monitor net profit figures and report according to budget targets.
  5. Inform relevant personnel promptly where potential occurs for budget under or overspend.
  6. Take prompt corrective action where significant deviations from budget occur.
  7. Negotiate necessary changes to agreed budget allocations in advance of requirement.
  8. Authorise modifications to existing budgets according to business policy.
Monitor and maintain expenditure within budget targets according to business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare actual income and expenditure to budget targets at regular intervals according to business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse gross profit and loss figures by business areas and compare with budget targets.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor net profit figures and report according to budget targets.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Inform relevant personnel promptly where potential occurs for budget under or overspend.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Take prompt corrective action where significant deviations from budget occur.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate necessary changes to agreed budget allocations in advance of requirement.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Authorise modifications to existing budgets according to business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Propose expenditure.

  1. Ensure estimates of costs and benefits are supported by valid, relevant information.
  2. Ensure final recommendations are supported by realistic alternatives and contain accurate, clear proposals.
  3. Ensure recommendations clearly indicate net benefits over designated timeframe and related changes in operations.
  4. Clarify contentious issues by further explanation.
  5. Compare estimates to actual costs and benefits to improve future proposals.
Ensure estimates of costs and benefits are supported by valid, relevant information.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure final recommendations are supported by realistic alternatives and contain accurate, clear proposals.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure recommendations clearly indicate net benefits over designated timeframe and related changes in operations.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clarify contentious issues by further explanation.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare estimates to actual costs and benefits to improve future proposals.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain business accounting systems.

  1. Manage and maintain business policy and procedures in regard to record-keeping systems.
  2. Monitor and maintain business systems for recording sales figures, revenue and expenditure.
  3. Monitor and maintain systems for recording and retrieving financial, personnel and payroll information as required by business policy and relevant legislation.
Manage and maintain business policy and procedures in regard to record-keeping systems.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and maintain business systems for recording sales figures, revenue and expenditure.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and maintain systems for recording and retrieving financial, personnel and payroll information as required by business policy and relevant legislation.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare business sales budgets.

  1. Observe business policy and procedures in regard to preparation of budget or target figures.
  2. Compare, analyse, document and report budget and accurate sales revenue and expenditure figures, according to budget targets and business policy.
  3. Maintain accurate records on past sales budgets or targets according to business policy.
  4. Present proposed budgets or targets accurately and concisely.
  5. Justify variations to proposed targets and report according to business policy.
  6. Report sales budgets accurately and concisely.
Observe business policy and procedures in regard to preparation of budget or target figures.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare, analyse, document and report budget and accurate sales revenue and expenditure figures, according to budget targets and business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain accurate records on past sales budgets or targets according to business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present proposed budgets or targets accurately and concisely.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Justify variations to proposed targets and report according to business policy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report sales budgets accurately and concisely.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Set budget targets and monitoring mechanisms.

  1. Conduct budget negotiations within a set timeframe and in a manner likely to promote good relationships.
  2. Ensure budget negotiations reflect the overall business policies and objectives relevant to the manager’s area of responsibility.
  3. Acquire and deploy resources, according to relevant legislation and company guidelines.
  4. Maintain accurate and up to date records of resource allocation and usage according to company guidelines.
  5. Develop and review management systems that enable timely collection, management and processing of information.
  6. Complete records of budget performance and expenditure and report according to company procedures and guidelines.
  7. Enforce budget audit mechanisms and compliance requirements.
  8. Inform relevant personnel promptly of budget decisions.
Conduct budget negotiations within a set timeframe and in a manner likely to promote good relationships.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure budget negotiations reflect the overall business policies and objectives relevant to the manager’s area of responsibility.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Acquire and deploy resources, according to relevant legislation and company guidelines.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain accurate and up to date records of resource allocation and usage according to company guidelines.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete records of budget performance and expenditure and report according to company procedures and guidelines.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Enforce budget audit mechanisms and compliance requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Inform relevant personnel promptly of budget decisions.

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, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

negotiating, developing and implementing budgets according to business policy and procedures

managing and maintaining accounting systems according to business policy and procedures

monitoring, analysing and reporting on operational areas income and expenditure against budget

taking corrective actions, where appropriate, where income and expenditure performance is not being completed according to budget or business targets

consistently producing financial reports to standard business requirements over a period of time

consistently implementing policy and procedures for the reporting and recording of budgetary and financial information within an operational area

developing, advocating and gaining approval for an operational area's budget.

Context of and specific resources for assessment

Assessment must ensure access to:

a real or simulated work environment

business or sample policy and procedures in regard to financial management

an accounting system

budgetary information

a team involved in budget control.

Methods of assessment

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

observation of performance in the workplace

third-party reports from a supervisor

a case study

written or verbal questioning to assess knowledge and understanding

review of portfolios of evidence and third-party workplace reports of on-the-job performance.

Guidance information for assessment

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

Required Skills and Knowledge

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

Required skills

interpersonal skills to:

encourage team members to control costs

provide information to relevant personnel where potential occurs for budget under or overspend

negotiate budgets and provide information on budget decisions through clear and direct communication

ask questions to identify and confirm requirements

use language and concepts appropriate to cultural differences

use and interpret non-verbal communication

planning and self management skills to:

prepare budgets and monitor performance against those budgets within set timeframes

manage resources

literacy skills to:

write and present reports

interpret business policy and procedures

generate reports

numeracy skills in regard to:

budget calculation and control

using accounting systems

Required knowledge

principles and techniques in:

interpersonal communication

monitoring resource utilisation and costs

analysing efficiency and effectiveness

cost-benefit analysis

differential analysis

risk analysis

resource planning

interpreting and analysing budget and accounting documentation

information sources on product and supply arrangements for customers

business policy and procedures affecting job role or function

resource utilisation, including capital, material and human

business revenue

capital and overhead costs

interest rates

cost of stock, materials and equipment

accounting and reporting protocols and professional standards

staffing costs

operational costs

relevant legislation relating to finance management

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.

Company policy and procedures in regard to:

operating procedures and instructions

financial management

resource management

reporting mechanisms.

Information may be obtained by:

direct observation

accessing written reports

accessing numerical data.

Resources may include:

people

materials

equipment and technology

finances

time.

Team members may include:

full-time, part-time, casual or contract staff

people from a range of social, cultural and ethnic backgrounds

people with varying degrees of language and literacy levels.

Relevant personnel may include:

senior managers

team members.

Proposals may:

be long-term or short-term

include potential improvements in profitability

productivity

quality of service

environmental impact

working conditions

working relationships

team motivation.

Record-keeping systems may include:

manual

computerised.

Relevant legislation may include:

taxation law, including GST

superannuation guarantee

awards, workplace agreements, and other industrial arrangements

WHS

workplace relations

workers' compensation

industry codes of practice

transport, storage and handling of goods

Australian Competition and Consumer Commission provisions

Trade Practices and Fair Trading Acts.

Budget or target figures may encompass:

sales

cash flow

net profit

payroll

staff expenditure

capital

maintenance costs.

Review of management systems may include:

stakeholder consultation

modelling results

cost-benefit analysis

data analysis.

Audit mechanisms may be:

manual or electronic

cyclical

automated.

Budget decisions may vary according to:

key performance indicators

strategic objectives

cash flow

net profit or loss

market and sales indicators

brand value

quality standards and criteria

performance benchmarks.