Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to undertake budgeting, financial forecasting and reporting requirements, and to allocate and manage resources to achieve the required outputs for the business unit. It includes contributing to financial bids and estimates, allocating funds, managing budgets and reporting on financial activity. 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 applies to people who have managerial responsibilities which include overseeing the management of financial and other resources across a business unit, a series of business units or teams, or an organisation. It covers all areas of broad financial management. In a larger organisation this work would be supported by specialists in financial management. |
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. Plan for financial management |
1.1. Review and analyse previous financial data to establish areas which have generated a profit or loss 1.2. Undertake research to review reasons for previous profit and loss 1.3. Review business plan to establish critical dates and initiatives that will require or generate resources in next financial cycle 1.4. Analyse cash flow trends 1.5. Review statutory requirements for compliance and liabilities for tax 1.6. Review existing software and its suitability for financial management |
2. Establish budgets and allocate funds |
2.1. Use previous financial data to determine allocations for resources 2.2. Make informed estimates of new items for inclusion in budget 2.3. Prepare budgets in accordance with organisational requirements and statutory requirements |
3. Implement budgets |
3.1. Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations 3.2. Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions 3.3. Review profit and loss statements, cash flows and ageing summaries 3.4. Revise budgets, as required, to deal with contingencies 3.5. Maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations 3.6. Ensure compliance with due diligence |
4. Report on finances |
4.1. Ensure structure and format of reports are clear and conform to organisational and statutory requirements 4.2. Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making 4.3. Prepare recommendations to ensure financial viability of the organisation 4.4. Evaluate the effectiveness of financial management processes |
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 following is essential:
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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, for example:
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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 data may include: |
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Organisational requirements may include: |
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Statutory requirements may include: |
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Discrepancies may include: |
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Format may include: |
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Issues may include: |
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Recommendations may refer to: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Finance - Financial Management |
Co-requisite units
Co-requisite units |
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