Unit of competency details

Descriptor 

This unit deals with the skills and knowledge required for the effective administration, daily financial management and accountabilities within a specific area of work, project or department of an organisation

Application 

This unit may apply across a range of organisation contexts

Employability Skills 

This unit contains Employability Skills

Elements define the essential outcomes of a unit of competency.

The Performance Criteria specify the level of performance required to demonstrate achievement of the Element. Terms in italics are elaborated in the Range Statement.

ELEMENT 

PERFORMANCE CRITERIA 

1. Plan approach to financial management of specific work area

1.1 Access financial requirements , organisation requirements , mandatory reporting formats and requirements

1.2 Clarify financial requirements with relevant personnel  to ensure mandatory and organisation outcomes are achievable

1.3 Negotiate with relevant personnel any changes to be made to proposed approaches and plans

2. Prepare and document budgets for specific work

2.1 Define expenditure and revenue items relevant to objectives

2.2 Link budget elements to goals, objectives and strategic directions of the organisation

2.3 Conduct discussions and negotiations with stakeholders where required in a respectful manner that promotes goodwill and ongoing cooperation

2.4 Provide support  to team members to ensure performance of required roles  associated with management of budgets and finances

2.5 Identify performance indicators and include in budget documents

2.6 Break down annual budgets into reporting periods in line with organisation's operating approach

2.7 Present data in formats that are easily understood and appropriate to budget reporting 

3. Analyse project, program or operational plans

3.1 Conduct discussions and negotiations with stakeholders to identify elements to be addressed in the planning documents 

3.2 Identify project work or work programs required to achieve identified project and/or operational objectives

3.3 Identify budget requirements to achieve identified objectives

3.4 Identify and analyse financial issues related to achievement of identified objectives

3.5 Identify objectives, process timelines, resources and mandatory reports

4. Monitor and control finances

4.1 Develop processes for monitoring actual expenditure and income for project, program or work area

4.2 Implement reporting of expenditure , income, assets, stock, consumables and equipment for project, program or work area

4.3 Monitor expenditure on a cyclical basis to identify cost variations and expenditure overruns

4.4 Develop contingency plans  for endorsement if required

4.5 Prepare processes, reports and documents to support mandatory audit processes where required

5. Review and evaluate financial management processes for project, program or work area

5.1 Collect, collate and analyse data on the effectiveness of financial management processes  and review with the appropriate person

5.2 Identify potential improvements and make recommendations to relevant authority

5.3 Implement and monitor endorsed improvements in line with the organisation's goals, objectives and mandatory reporting requirements

REQUIRED SKILLS AND KNOWLEDGE 

This describes the essential skills and knowledge and their level required for this unit.

Essential knowledge :

The candidate must be able to demonstrate essential knowledge required to effectively do the task outlined in elements and performance criteria of this unit, manage the task and manage contingencies in the context of the identified work role

These include knowledge of:

• Basic accounting principles
• Consultative methods and processes
• Ethical practices
• Financial management requirements
• Organisation objectives and plans at both systemic and unit levels
• Organisation requirements related to financial and asset management
• Organisation roles in respect to financial delegations, accountabilities and responsibilities
• Principles and techniques involved in

• accrual accounting concepts
• advanced numerical calculations
• budgeting
• integrated management systems utilising software
• journals, ledgers and financial statements (paper or digital-electronic)
• revenue flow
• software applications used in financial management

• Relevance of the work role and functions to maintaining sustainability of the workplace, including environmental, economic, workforce and social sustainability
• Relevant legislation, policies and procedures
• Requirements for organisation record-keeping, compliancy activity audit requirements

Essential skills :

It is critical that the candidate demonstrate the ability to:

• Consult with colleagues
• Integrate all elements of competency
• Link budget with organisation and/or project aims/strategic directions
• Monitor and manage finances for a project, program or work area within an organisation and legislative requirements
• Prepare, monitor, review and report financial management processes
• Report and record information in accordance with organisation policies

In addition, the candidate must be able to effectively do the task outlined in elements and performance criteria of this unit, manage the task and manage contingencies in the context of the identified work role

These include the ability to:

• Communicate
• Lead and manage personnel
• Manage contingencies for project, program or work area
• Manage finances, including budgeting for project, program or work area
• Monitor and review skills
• Problem solve
• Support colleagues and develop skills where required
• Take into account opportunities to address waste minimisation, environmental responsibility and sustainable practice issues, including appropriate practices to ensure efficient use of resources

EVIDENCE GUIDE 

The evidence guide provides advice on assessment and must be read in conjunction with the Performance Criteria, Required Skills and Knowledge, the Range Statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate this unit of competency :

• The individual being assessed must provide evidence of specified essential knowledge as well as skills
• This unit is most appropriately assessed in the workplace or in a simulated workplace setting under the normal range of workplace conditions
• Assessment must demonstrate consistency of application of skills and knowledge described in this unit of competency

Access and equity considerations :

• All workers in community services should be aware of access, equity and human rights issues in relation to their own area of work
• All workers should develop their ability to work in a culturally diverse environment
• In recognition of particular issues facing Aboriginal and Torres Strait Islander communities, workers should be aware of cultural, historical and current issues impacting on Aboriginal and Torres Strait Islander people
• Assessors and trainers must take into account relevant access and equity issues, in particular relating to factors impacting on Aboriginal and/or Torres Strait Islander clients and communities

Context of and specific resources for assessment :

• This unit can be assessed independently, however holistic assessment practice with other community services units of competency is encouraged
• Resources required for assessment include access to relevant workplace or simulated realistic workplace setting where assessment may take place

Method of assessment :

• Assessment may include observation, questioning and evidence gathered from a workplace environment

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. Add any 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.

Financial requirements , organisation requirements may include :

• Award and enterprise agreements and relevant industrial instruments
• Financial reporting to government bodies and /or relevant funding agency
• Relevant legislation from all levels of government that affects operation, especially in regard to occupational health and safety (OHS) and environmental issues, equal opportunity, industrial relations, anti-discrimination and record-keeping legislation

Relevant personnel may include :

• Auditors, financial officers
• Client service workers managing a specific project, program or work area
• Management team members
• Supervisors, registrars, administration officers

Support may include :

• Access to specialist advice
• Documentation of procedures
• Help desk or identified experts within the organisation employed at support areas, e.g. regional/ district offices
• Information briefings or training sessions
• Internet access to information
• Intranet-based information
• Training including, mentoring coaching and shadowing

Required roles may include :

• Annual and operational budgets/plans
• Annual reports
• Arranging for and administering the use of corporate credit cards
• Banking
• Cash and revenue flow projections
• Debt collection
• Ensuring security, accuracy and currency of financial operations
• Invoicing clients, students and consumers
• Maintaining journals, ledgers and other record-keeping systems using technology where necessary
• Maintaining petty cash system
• Managing assets and stock
• Organisation targets or goals
• Purchasing and procurement
• School reviews spreadsheet-based financial projections
• Strategic plans
• Targets or performance indicators (PIs)
• Wages and salaries, payments and record-keeping

Reporting may include :

• Audit reports
• Bank statements
• Credit card statements
• Financial reports - constructed and standardised
• Invoices and receipts
• Ledgers and journals
• Logs, e.g. motor vehicle use
• Mandatory system reports
• Ongoing cumulative records for end of year reporting
• Petty cash records
• Spreadsheet-based records
• Standardised reports for management

Contingency plans may include :

• Alternative means of procurements of required materials, equipment and stock
• Differing models of managing staff working hours/ roles
• Employment of casual/temporary staff
• Recycling and re-use
• Risk identification, assessment and management processes
• Seeking further funding
• Strategies for reducing costs. Wastage, stock or consumables
• Use of short-term contractors

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

• Bank account records
• Cash flow and revenue
• Contracts
• Credit card receipts
• Employee timesheets
• Files of paid purchase and service invoices
• Income and expenditure
• Invoices
• Job costs
• Quotations
• Special grants
• Taxation records
• Wages/salaries records