Unit of competency details

Unit descriptor 

This unit covers operating within a budget framework and defines the standard required to: obtain and confirm the operational budget has been allocated; review projected income and expenditure and compare to budget; record transactions and allocate to cost and income categories; identify and report budget variations; review production and expenditure plans to meet financial targets.

Application of the unit 

This unit applies to supervisors and managers in agriculture, horticulture and land management enterprises who have responsibility to participate in formulation of a budget, and supervise and monitor financial transactions.

Prerequisite units 

Employability skills 

This unit contains employability skills.

ELEMENT 

PERFORMANCE CRITERIA 

1. Participate in formulation of a cash flow budget

1.1. Budget consultation is followed in line with enterprise policy.

1.2. Budget variations are requested to suit enterprise needs.

2. Supervise financial transaction

2.1. Expenditure is arranged within budget delegations.

2.2. Transactions are recorded to meet taxation and accounting requirements according to enterprise practices.

2.3. Actual sales and expenditure are compared to the enterprise budget.

2.4. Financial reports are checked to ensure operations are within forecast limits.

2.5. Expenditure is adjusted to meet financial targets as required.

2.6. Actual and potential variations in budgeted income are reported to the manager according to enterprise requirements.

2.7. Recommendations to address budget variations are developed.

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• arrange income and expenditure
• record transactions
• monitor income and expenditure
• compare budgeted figures to actuals
• participate in formulation of a budget
• use literacy skills to read, interpret and follow organisational policies and procedures, develop sequenced written instructions, record accurately and legibly information collected and select and apply procedures to a range of tasks
• use oral communication skills/language competence to fulfil the job role as specified by the organisation including questioning, active listening, asking for clarification, negotiating solutions and responding to a range of views
• use numeracy skills to estimate, calculate and record routine and more complex workplace measures and data
• use interpersonal skills to work with others and relate to people from a range of cultural, social and religious backgrounds and with a range of physical and mental abilities.

Required knowledge 

• income and expenditure categories
• budgeting procedures and templates
• taxation and accounting requirements for recording financial transactions
• costing mechanisms
• forecasting mechanisms
• banking routines
• cash flow analyses and records
• recording systems
• records of receipts and expenditure
• work reports
• factors that impact upon the timing of sales and purchases (taxation, GST, market conditions).

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 

The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:

• obtain and confirm the operational budget has been allocated
• review projected income and expenditure and compare to budget
• record transactions and allocate to cost and income categories
• identify and report budget variations
• review production and expenditure plans to meet financial targets.

Context of and specific resources for assessment 

Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole.

Budget documentation may include:

• projected expenditure by item
• projected income by source
• cash flow budgets
• budget delegations
• variation and review procedures
• credit and credit limits
• security measures
• reporting mechanisms
• additional funds for particular projects
• self-generated funds
• fundraising requirements
• project grants
• funds received for winning tenders
• enterprise procedures and policies.

Unit sector 

Business

Co-requisite units 

Competency field