Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to prepare, document and manage budgets and forecasts, and encompasses forecasting estimates and monitoring budgeted outcomes. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
The unit has application to job roles that have responsibility for managing budgets and forecasts such as accountants and chief financial officers. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Prepare budget |
1.1. Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget 1.2. Budget objectives are clear and consistent with organisational aims and projects 1.3. Discussions and negotiations with stakeholders are conducted in a manner that promotes understanding, goodwill and ongoing cooperation 1.4. Milestones and performance indicators are identified and included in budgets to monitor financial performance with annual budgets are broken down into seasonal periods in accordance with operating trends |
2. Forecast estimates |
2.1. Estimates of future cash flow, costs and revenues are realistic and attainable and supported by verifiable evidence and source documentation 2.2. Relevant data for forecasts are identified and changes in circumstances anticipated 2.3. Assumptions and parameters are established and reviewed for accuracy, relevance and compliance with organisational procedures and policies 2.4. Financial risks are identified and protection strategies initiated in accordance with organisational procedures and policies |
3. Document budget |
3.1. Data are presented in a format that is easily understood and appropriate to budget reporting 3.2. Reports are completed within timelines and distributed for specified periods and projects 3.3. Trends, issues and comparisons are identified and reported in a structured format to ensure transparency and validity of analysis 3.4. Feasibility is identified by comparison of projections with market growth and development |
4. Monitor budget outcomes |
4.1. Budget variances are analysed in accordance with organisational procedures and recommendations based on the analysis made to the client or designated person 4.2. Budget processes are reviewed and implemented as required |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Expenditure and revenue items may include: |
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Budgets may include: |
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Budget objectives may include: |
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Stakeholders may include: |
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Milestones and performance indicators may include: |
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Verifiable evidence and source documentation may include: |
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Data may include: |
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Assumptions and parameters may include: |
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Unit Sector(s)
Unit sector |
Accounting |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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