Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit covers preparing and monitoring budgets and financial reports and defines the standard required to: prepare a budget using most likely costs and income; develop and monitor budgets in an enterprise; prepare financial reports to meet industry standards. |
Application of the Unit
Application of the unit |
This unit applies to enterprise managers who prepare and monitor budgets and financial reports in an agricultural, horticultural or land management enterprise. |
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
Not Applicable
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Prepare a budget |
1.1. Information on past receipts and payments is obtained from previous records, compared to current prices and cost trends, and compiled in a form that enables projections of future receipts and expenditures. 1.2. A plan is prepared for a period which allows for expected expenditure and financial reporting requirements, using the 'most likely' prices and costs. |
2. Implement and monitor a budget |
2.1. Receipts and payments are monitored and reconciled against the original budget. 2.2. Variances against the original plan are identified, and the impact on overall profit/loss and cash flow is calculated. 2.3. Funds are allocated in accordance with budget objectives and parameters. 2.4. Adjustments are made where necessary to respond to unacceptable variations. 2.5. Budgets and plans are renegotiated/ restructured where necessary to optimise enterprise performance. |
3. Prepare financial report |
3.1. Records of financial performance are properly maintained within enterprise systems. 3.2. Information with source documents is assembled according to the requirements of the report recipient. 3.3. Documentation is forwarded in a timely and efficient manner. 3.4. Non-financial objectives are reported in the context of overall enterprise performance. |
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 |
Competence in preparing and monitoring budgets and financial reports requires evidence that budgets have been successfully and appropriately developed and monitored in an enterprise, and that financial reports meet industry standards in their content and structure. 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:
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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
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. |
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Budgets may include: |
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Financial reports may be: |
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Unit Sector(s)
Unit sector |
Business |
Co-requisite units
Co-requisite units |
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Competency field
Competency field |