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Evidence Guide: SITXFIN501 - 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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SITXFIN501 - 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 the 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 the 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 the draft budget.
  4. Assess and present options and recommendations in a clear format.
  5. Circulate the 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 the draft budget.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and present options and recommendations in a clear format.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Circulate the 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 their application within the relevant work area, including reporting and financial management responsibilities.
Negotiate budget according to organisational policy and procedures.

Completed
Date:

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Agree on and incorporate modifications.

Completed
Date:

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Complete final budget in a clear format within designated timelines.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Inform colleagues of final budget decisions and their application within the 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 all budget reports.
  3. Investigate and take appropriate action on significant deviations.
  4. Analyse changes in the 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 all budget reports.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investigate and take appropriate action on significant deviations.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse changes in the 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

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 multiple budgets to meet specific and differing workplace needs

consult on budget components and monitor and review budgets against performance over a budgetary life cycle

analyse the factors that impact the budget

integrate knowledge of budget preparation and monitoring practices and techniques

complete draft and final budgets within designated timelines.

Context of and specific resources for assessment

Assessment must ensure use of:

a real or simulated tourism, hospitality or event industry business operation or activity for which budgets are prepared

computers, printers and accounting software packages currently used by the tourism, hospitality and event industries

financial and operational data and reports used to prepare budgets for tourism, hospitality and event business activities

others with whom the individual can discuss, and negotiate draft and final budget components.

Method of assessment

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

projects and activities that allow assessment of the individual’s ability to:

prepare and monitor budgets

produce reports evaluating actual performance against estimated performance

produce financial reports related to the budgets

evaluation of reports produced by the individual detailing the processes undertaken to prepare a budget

direct observation of the individual negotiating the acceptance of a proposed budget

use of case studies and problemsolving activities about budget deviations and required actions

written or oral questioning to assess knowledge of budget preparation and monitoring practices and techniques

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

BSBCMM401A Make a presentation

BSBPMG501A Manage projects

SITXFIN401 Interpret financial information

SITXFIN402 Manage finances within a budget

SITXFIN601 Manage physical assets.

Required Skills and Knowledge

Required skills

communication skills to liaise and negotiate with colleagues on potential complex and conflicting budget requirements

critical thinking skills to analyse internal and external factors for potential impact on budget

initiative and enterprise skills to draft budgets that meet organisational objectives

literacy skills to:

read and interpret information that deals with complex ideas and concepts

research internal and external factors that may impact on budgetary performance

write complex budget reports and recommendations

numeracy skills to interpret and analyse financial information, including forecasts and previous performance data, and to develop financial estimates and scenarios using complex calculations

planning and organising skills to access and sort all information required for budget preparation and to coordinate a timely, efficient and consultative budget development process

problem-solving skills to:

identify budgetary challenges and develop different options for their resolution

identify budget deviations and deficiencies and develop options for meeting budgetary requirements

self-management skills to take responsibility for budget development

teamwork skills to invite and coordinate the input of others in the organisation, and provide direction on budget management

technology skills to use accounting software packages.

Required knowledge

budget terminology

for the specific industry sector and organisation:

role and nature of budgets

a range of 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

budget preparation and monitoring practices and techniques, including:

sources and contents of data required for budget preparation

techniques for making budget estimates

common reasons for deviations and budget deviation 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, 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.

Data and data sources required for budget preparation may include:

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.

Budget may include:

budgets for micro, small, medium or large businesses

cash budgets

cash flow budgets

departmental budgets

event budgets

grant funding budgets

project budgets

sales budgets

wage budgets

whole of organisation budgets.

Internal and external factors that could impact on budget development may include:

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.

Financial reports may include:

annual general meeting reports

board reports

funding acquittals in relation to grants received

periodic reports showing budget versus yeartodate actuals and financial commitments

periodic sales reports

taxation commitments.