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Evidence Guide: SITXFIN004 - Prepare and monitor budgets

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!

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SITXFIN004 - Prepare and monitor budgets

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

Prepare budget information.

  1. Determine and confirm scope and nature of required budgets.
  2. Identify, access and interpret data and data sources required for budget preparation.
  3. Analyse internal and external factors for potential impact on budget.
  4. Provide opportunities for colleagues to contribute to budget planning process.
Determine and confirm scope and nature of required budgets.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify, access and interpret data and data sources required for budget preparation.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Analyse internal and external factors for potential impact on budget.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Provide opportunities for colleagues to contribute to budget planning process.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Prepare budget.

  1. Draft budget based on analysis of all available information.
  2. Estimate income and expenditure and support with valid, reliable and relevant information.
  3. Reflect organisational objectives within draft budget.
  4. Assess and present options and recommendations in a clear format.
  5. Circulate draft budget to colleagues and managers for input.
Draft budget based on analysis of all available information.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Estimate income and expenditure and support with valid, reliable and relevant information.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Reflect organisational objectives within draft budget.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess and present options and recommendations in a clear format.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Circulate draft budget to colleagues and managers for input.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Finalise budget.

  1. Negotiate budget according to organisational policy and procedures.
  2. Agree on and incorporate modifications.
  3. Complete final budget in a clear format within designated timelines.
  4. Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.
Negotiate budget according to organisational policy and procedures.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Agree on and incorporate modifications.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Complete final budget in a clear format within designated timelines.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Monitor and review budget.

  1. Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.
  2. Incorporate all financial commitments into budget and budget reports.
  3. Investigate and take appropriate action on significant deviations.
  4. Analyse changes in internal and external environment and make necessary adjustments.
  5. Collect and record relevant information to assist in future budget preparation.
Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Incorporate all financial commitments into budget and budget reports.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Investigate and take appropriate action on significant deviations.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Analyse changes in internal and external environment and make necessary adjustments.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Collect and record relevant information to assist in future budget preparation.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Prepare budget information.

1.1.Determine and confirm scope and nature of required budgets.

1.2.Identify, access and interpret data and data sources required for budget preparation.

1.3.Analyse internal and external factors for potential impact on budget.

1.4.Provide opportunities for colleagues to contribute to budget planning process.

2. Prepare budget.

2.1.Draft budget based on analysis of all available information.

2.2.Estimate income and expenditure and support with valid, reliable and relevant information.

2.3.Reflect organisational objectives within draft budget.

2.4.Assess and present options and recommendations in a clear format.

2.5.Circulate draft budget to colleagues and managers for input.

3. Finalise budget.

3.1.Negotiate budget according to organisational policy and procedures.

3.2.Agree on and incorporate modifications.

3.3.Complete final budget in a clear format within designated timelines.

3.4.Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.

4. Monitor and review budget.

4.1.Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.

4.2.Incorporate all financial commitments into budget and budget reports.

4.3.Investigate and take appropriate action on significant deviations.

4.4.Analyse changes in internal and external environment and make necessary adjustments.

4.5.Collect and record relevant information to assist in future budget preparation.

Required Skills and Knowledge

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Prepare budget information.

1.1.Determine and confirm scope and nature of required budgets.

1.2.Identify, access and interpret data and data sources required for budget preparation.

1.3.Analyse internal and external factors for potential impact on budget.

1.4.Provide opportunities for colleagues to contribute to budget planning process.

2. Prepare budget.

2.1.Draft budget based on analysis of all available information.

2.2.Estimate income and expenditure and support with valid, reliable and relevant information.

2.3.Reflect organisational objectives within draft budget.

2.4.Assess and present options and recommendations in a clear format.

2.5.Circulate draft budget to colleagues and managers for input.

3. Finalise budget.

3.1.Negotiate budget according to organisational policy and procedures.

3.2.Agree on and incorporate modifications.

3.3.Complete final budget in a clear format within designated timelines.

3.4.Inform colleagues of final budget decisions and application within relevant work area, including reporting and financial management responsibilities.

4. Monitor and review budget.

4.1.Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports.

4.2.Incorporate all financial commitments into budget and budget reports.

4.3.Investigate and take appropriate action on significant deviations.

4.4.Analyse changes in internal and external environment and make necessary adjustments.

4.5.Collect and record relevant information to assist in future budget preparation.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

prepare a budget for a business that meets the specific business’ needs

demonstrate the following when preparing the above budget:

consultation on components

analysis of factors that impact on the budget

completion of draft and final versions of budget within designated timelines

monitor and review the above budget against performance over its life cycle.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

types of budgets:

cash budgets

cash flow budgets

departmental budgets

event budgets

project budgets

purchasing budgets

sales budgets

wage budgets

whole of organisation budgets

budget terminology

specific industry sector and organisation:

role and nature of budgets

budget formats, budget performance and financial reports

financial reporting procedures and cycles

features and functions of accounting software programs used to prepare and monitor budgets

internal and external factors that impact on budget development:

growth or decline in economic conditions

human resource requirements

new legislation or regulation

organisational and management restructures

organisational objectives

scope of the project

shift in market trends

significant price movement for certain commodities or items

supplier availability and cost

budget preparation and monitoring practices and techniques:

sources and contents of data required for budget preparation:

competitor research

customer or supplier research

declared commitments in areas of operation

financial information from suppliers

financial proposals from key stakeholders

income and expenditure for previous time periods

departmental, event or project budgets

grant funding guidelines or limitations

management policies and procedures

organisational budget preparation guidelines

performance information from previous periods

techniques for making budget estimates

common reasons for deviations and budget deviation management.