Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to establish and maintain effective financial management within the organisation to ensure board control of finances and external accountability to statutory authorities and funding bodies. Some aspects of governance activities may be subject to legislation, rules, regulations and codes of practice relevant to different job roles and jurisdictions. |
Application of the Unit
Application of the unit |
This unit applies to individuals with a broad knowledge of the business or core functions of organisations who have responsibilities for controlling an organisation's finances. |
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. Establish a financial management structure |
1.1. Establish a structure to undertake regular financial management responsibilities on behalf of the board 1.2. Document respective responsibilities of the board and management 1.3. Determine financial information required by the board from management 1.4. Seek advice on suitable financial management systems for the organisation 1.5. Identify relevant statutory requirements |
2. Establish financial management processes and systems |
2.1. Ensure appropriate policies and procedures are in place to open and operate necessary bank accounts 2.2. Identify approved signatories for the bank accounts 2.3. Ensure authority and delegation between the board and management for the management of finances are documented 2.4. Ensure statutory requirements with regard to financial management are followed 2.5. Ensure duties of finance staff are documented 2.6. Ensure accepted procedures for receiving and expending funds are established and maintained by management 2.7. Ensure accepted systems for financial reporting are established and maintained |
3. Sign contracts on behalf of the organisation |
3.1. Ensure procedures for developing and documenting contracts are developed and followed 3.2. Identify people authorised to sign contracts on behalf of the organisation 3.3. Check that proposed contractual arrangements are realistic for the organisation and in the organisation's and community's interests 3.4. Ensure contracts are signed according to organisational policies and procedures |
4. Follow finance procedures specified by funding bodies |
4.1. Seek variations to financial agreements from relevant funding bodies if required 4.2. Identify and follow purchasing and disposal procedures specified by funding bodies 4.3. Check that requirements for finance documentation specified by funding bodies are met |
5. Advise the community of the financial situation of the organisation |
5.1. Identify the type and content of financial information that can be made publicly available 5.2. Ensure financial information is made available to members as specified in the constitution 5.3. Present financial information at meetings in a clear and simple manner |
6. Meet reporting requirements of relevant corporate authorities and funding bodies |
6.1. Identify reporting requirements by relevant corporate authorities and funding bodies 6.2. Establish timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities and funding bodies 6.3. Ensure an auditor is appointed at the annual general meeting 6.4. Review and evaluate financial statements to ensure they meet requirements 6.5. Check that financial reports are submitted to relevant corporate authorities and funding bodies within required timeframe |
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 are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
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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Financial management responsibilities may include: |
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Signatories may include: |
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Statutory requirements may include: |
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Systems for financial reporting may include: |
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Financial information may include: |
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Relevant corporate authorities and funding bodies may include: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Regulation, licensing and risk - ATSI governance |
Co-requisite units
Co-requisite units |
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