Unit of competency details

BSBFIM501A - Manage budgets and financial plans (Release 1)

Summary

Releases:
ReleaseStatusRelease date
1 1 (this release)Current 18/Apr/2008

Usage recommendation:
Current

Training packages that include this unit

CodeTitleSort Table listing Training packages that include this unit by the 'Title' columnRelease
UET12 - Transmission, Distribution and Rail Sector Training PackageTransmission, Distribution and Rail Sector Training Package 1.0-2.0 
TLI10 - TRANSPORT AND LOGISTICS TRAINING PACKAGETRANSPORT AND LOGISTICS TRAINING PACKAGE 1.0-4.2 
TAE10 - Training and EducationTraining and Education 1.0-3.2 
SIT07 - Tourism, Hospitality and Events Training PackageTourism, Hospitality and Events Training Package 2.3-3.0 
SIS10 - Sport, Fitness and Recreation Training PackageSport, Fitness and Recreation Training Package 1.2-3.0 
SIR07 - Retail Services Training PackageRetail Services Training Package 1.3-3.3 
SIF - Funeral ServicesFuneral Services 1.0-2.0 
SFI11 - Seafood Industry Training PackageSeafood Industry Training Package 1.0-2.0 
RII09 - Resources and Infrastructure Industry Training PackageResources and Infrastructure Industry Training Package 2.0-3.2 
RII - Resources and Infrastructure Industry Training PackageResources and Infrastructure Industry Training Package 1.0-1.3 
RGR08 - Racing Training PackageRacing Training Package 1.0-2.0 
PSP12 - Public Sector Training PackagePublic Sector Training Package 1.0 
PSP04 - Public Sector Training PackagePublic Sector Training Package 4.1-4.2 
PRM04 - ASSET MAINTENANCE TRAINING PACKAGEASSET MAINTENANCE TRAINING PACKAGE 3.0 
NWP07 - Water Training PackageWater Training Package 2.0-3.0 
MTM11 - Australian Meat Industry Training PackageAustralian Meat Industry Training Package 1.0-4.0 
MSA07 - Manufacturing Training PackageManufacturing Training Package 6.0-8.3 
ICT10 - Integrated Telecommunications Training PackageIntegrated Telecommunications Training Package 1.0-3.0 
HLT07 - Health Training PackageHealth Training Package 4.0-5.1 
FPP10 - Pulp & Paper Manufacturing Industry Training PackagePulp & Paper Manufacturing Industry Training Package 1.0-1.2 
FPI11 - Forest and Forest Products Training PackageForest and Forest Products Training Package 1.0-2.2 
FPI05 - Forest and Forest Products Training PackageForest and Forest Products Training Package 3.0 
FNS10 - Financial Services Training PackageFinancial Services Training Package 1.0-5.1 
FDF10 - Food ProcessingFood Processing 1.0-4.1 
DEF12 - Defence Training PackageDefence Training Package 2.0 
CUV11 - Visual Arts, Crafts and Design Training PackageVisual Arts, Crafts and Design Training Package 1.0 
CUV03 - Visual Arts, Craft and Design Training PackageVisual Arts, Craft and Design Training Package 3.0 
CUS09 - MusicMusic 1.1-1.2 
CUF07 - Screen and Media Training PackageScreen and Media Training Package 1.2 
CUA11 - Live Performance Training PackageLive Performance Training Package 1.0 
CUA - Live Performance and Entertainment Training PackageLive Performance and Entertainment Training Package 1.0 
CPP07 - Property Services Training PackageProperty Services Training Package 7.0-14.1 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 6.0-9.0 
CHC08 - Community Services Training PackageCommunity Services Training Package 3.0-4.2 
BSB07 - Business Services Training PackageBusiness Services Training Package 5.0-9.0 
AVI08 - Aviation Training PackageAviation Training Package 3.0-5.0 
AUR12 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 1.0-2.0 
AUR05 - Automotive Industry Retail, Service and Repair Training PackageAutomotive Industry Retail, Service and Repair Training Package 3.0-4.0 
AHC10 - Agriculture, Horticulture and Conservation and Land ManagementAgriculture, Horticulture and Conservation and Land Management 2.0-8.0 

Qualifications that include this unit

CodeTitleSort Table listing Qualifications that include this unit by the 'Title' columnRelease
AVI60110 - Advanced Diploma of Aviation (Flight Instruction)Advanced Diploma of Aviation (Flight Instruction) 
AHC60410 - Advanced Diploma of Conservation and Land ManagementAdvanced Diploma of Conservation and Land Management 
FNS60310 - Advanced Diploma of ConveyancingAdvanced Diploma of Conveyancing 
FNS60311 - Advanced Diploma of ConveyancingAdvanced Diploma of Conveyancing 1-4 
TLI60210 - Advanced Diploma of Deployment LogisticsAdvanced Diploma of Deployment Logistics 1-3 
UET60212 - Advanced Diploma of ESI - Power SystemsAdvanced Diploma of ESI - Power Systems 1-2 
UET60312 - Advanced Diploma of ESI - Power Systems OperationsAdvanced Diploma of ESI - Power Systems Operations 
FPI60113 - Advanced Diploma of Forest Industry SustainabilityAdvanced Diploma of Forest Industry Sustainability 
FPI60111 - Advanced Diploma of Forest Industry SustainabilityAdvanced Diploma of Forest Industry Sustainability 1-3 
TLI60110 - Advanced Diploma of Materiel LogisticsAdvanced Diploma of Materiel Logistics 1-2 
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Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  25/Jul/2008 
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Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to undertake financial management within a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the Unit

Application of the unit 

This unit addresses the requirement for managers to ensure that financial resources are used effectively. This is done by ensuring access to budget/s and ongoing monitoring expenditure against the budget/s.

The unit applies to managers working in small and large business environments and not for profit organisations.

Licensing/Regulatory Information

Not applicable.

Pre-Requisites

Prerequisite units 

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. Plan financial management approaches

1.1. Access budget /financial plans  for the work team

1.2. Clarify budget/financial plans with relevant personnel  within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible

1.3. Negotiate any changes required to be made to budget/financial plans with relevant personnel within the organisation

1.4. Prepare contingency plans  in the event that initial plans need to be varied

2. Implement financial management approaches

2.1. Disseminate relevant details of the agreed budget/financial plans to team members

2.2. Provide support  to ensure that team members can competently perform required roles  associated with the management of finances

2.3. Determine and access resources and systems  to manage financial management processes within the work team

3. Monitor and control finances

3.1. Implement processes  to monitor actual expenditure and to control costs across the work team

3.2. Monitor expenditure and costs on an agreed cyclical basis to identify cost variations and expenditure overruns

3.3. Implement, monitor and modify contingency plans as required to maintain financial objectives

3.4. Report  on budget and expenditure in accordance with organisational protocols

4. Review and evaluate financial management processes

4.1. Collect and collate for analysis, data and information on the effectiveness of financial management processes  within the work team

4.2. Analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes

4.3. Implement and monitor agreed improvements in line with financial objectives of the work team and the organisation

Required Skills and Knowledge

REQUIRED SKILLS AND KNOWLEDGE 

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

Required skills 

  • numeracy skills to read and understand a budget and to update a budget
  • technology skills to use software associated with financial record keeping.

Required knowledge 

  • basic accounting principles
  • organisational requirements related to financial management
  • relevant legislation and current requirements of the Australian Taxation Office, including GST
  • requirements for organisational record keeping and auditing
  • principles and techniques involved in:
  • budgeting
  • cash flows
  • electronic spreadsheets
  • GST
  • ledgers and financial statements
  • profit and loss statements.

Evidence Guide

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 following is essential:

  • financial skills required to work with and interpret budgets, ageing summaries, cash flow, petty cash, GST, and profit and loss statements
  • knowledge of the record keeping requirements for the ATO and for auditing purposes.

Context of and specific resources for assessment 

Assessment must ensure:

  • access to appropriate documentation and resources normally used in the workplace.

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:

  • assessment of written reports indicating broad knowledge of managing budgets and managing financial resources in the organisation
  • demonstration of techniques using financial record keeping software
  • direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
  • oral or written questioning to assess knowledge of requirements for organisational record keeping and auditing
  • review of contingency plans
  • review of identification of cost variations and expenditure overruns
  • evaluation of documentation reportingon budget and expenditure
  • review of documentation identifying and recommending improvements to financial management processes.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

  • other units from the Diploma of Management.

Range Statement

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.

Budget /financial plans  may include:

  • cash flow projections
  • long-term budgets/plans
  • operational plans
  • short-term budgets/plans
  • spreadsheet-based financial projections
  • targets or key performance indicators for production, productivity, wastage, sales, income and expenditure

Relevant personnel  may include:

  • financial managers, accountants or financial controllers
  • supervisors, other frontline managers

Contingency plans  may include:

  • contracting out or outsourcing human resources and other functions or tasks
  • diversification of outcomes
  • finding cheaper or lower quality raw materials and consumables
  • increasing sales or production
  • recycling and re-using
  • rental, hire purchase or alternative means of procurement of required materials, equipment and stock
  • restructuring of organisation to reduce labour costs
  • risk identification, assessment and management processes
  • seeking further funding
  • strategies for reducing costs, wastage, stock or consumables
  • succession planning

Support  may include:

  • access to specialist advice
  • documentation of procedures
  • help desk or identified experts within the organisation
  • information briefings or sessions
  • intranet-based information
  • training including mentoring, coaching and shadowing

Required roles  may include:

  • arranging for use of corporate credit cards
  • banking
  • debt collection
  • ensuring security, accuracy and currency of financial operations
  • invoicing clients, customers and consumers
  • maintaining journals, ledgers and other record keeping systems
  • maintaining petty cash system
  • purchasing and procurement
  • wages and salaries payments and record keeping

Resources and systems  may include:

  • hardware and software
  • human, physical or financial resources
  • record keeping systems (electronic and paper-based)
  • specialist advice or support

Processes  to monitor actual expenditure and to control costs across the work team include:

  • reporting of:
  • assets
  • consumables
  • equipment
  • expenditure
  • income
  • stock
  • wastage

Reporting  may include data from:

  • bank statements
  • credit card statements
  • financial reports
  • invoices and receipts
  • ledgers and journals
  • logs
  • petty cash records
  • spreadsheet-based records

Data and information on the effectiveness of financial management processes  may include records (paper-based and electronic) related to:

  • bank account records
  • cash flow data
  • contracts
  • credit card receipts
  • employee timesheets
  • files of paid purchase and service invoices
  • income and expenditure
  • insurance reports
  • invoices
  • job costings
  • petty cash receipts
  • quotations
  • taxation records
  • wages/salaries books

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Management and Leadership - Management

Co-requisite units

Co-requisite units 

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