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Unit of competency details

CPPREP5006 - Manage operational finances in the property industry (Release 2)

Summary

Usage recommendation:
Current
Release Status:
Current
Releases:
ReleaseRelease date
2 (this release) 26/Jan/2021
(View details for release 1) 21/Mar/2019


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081199 Banking, Finance And Related Fields, N.e.c.  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081199 Banking, Finance And Related Fields, N.e.c.  21/May/2019 
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Unit Of competency

Modification History

Release 2

This version first released with CPP Property Services Training Package Release 13.1.

Renumbered PCs 1.1 - 1.5 to rectify numbering repetition of PC 1.2. PCs are now numbered from 1.1 to 1.6.

Release 1

This version first released with CPP Property Services Training Package Release 8.0.

New unit of competency.

Application

This unit specifies the skills and knowledge required to manage and evaluate agency operational finances in the property industry.

The unit applies to industry professionals in the property industry.

State or territory licensing requirements may apply to this unit.

Pre-requisite Unit

Nil

Unit Sector

Real estate

Elements and Performance Criteria

Elements describe the essential outcomes.

Performance criteria describe what needs to be done to demonstrate achievement of the element.

1

Determine financial management requirements.

1.1

Conduct risk analyses according to legislative requirements.

1.2

Analyse and record processes for managing budgets, financial control systems and management requirements for the agency and departments.

1.3

Analyse the standard financial records, reports and break-even analyses to develop key performance indicators (KPIs).

1.4

Allocate resources to support attainment of department and agency KPIs.

1.5

Interpret requirements and schedules for conducting financial reconciliations and producing formal reports for internal and external purposes.

1.6

Determine legislative responsibilities and best practice of financial systems.

2

Develop and implement strategies to manage operational finances.

2.1

Design and implement strategies to establish and maintain link between individuals responsible for budgets and individuals operating financial control systems.

2.2

Develop and implement financial controls and processes for preparation of valid records and reports.

2.3

Implement strategies and adjust KPIs to ensure ongoing and accurate projections of income, expenditure and cash flow.

3

Manage operational finance systems.

3.1

Communicate to agency staff the standards, culture and business KPIs relating to financial management in the agency.

3.2

Facilitate monitoring, reviewing and adjustment of agency and department financial practices.

3.3

Manage and review allocation of resources.

3.4

Manage the collation of periodic financial reports to provide a financial overview of the agency.

4

Evaluate operational finance systems.

4.1

Analyse periodic financial reports and use data to evaluate achievement of KPIs.

4.2

Use evaluation data to determine, record and implement improvements.

Foundation Skills

This section describes the language, literacy, numeracy and employment skills essential to performance in this unit but not explicit in the performance criteria:

  • reading skills to interpret workplace documentation
  • writing skills to accurately record information
  • interpersonal and communication skills to collaborate with colleagues
  • planning and organisational skills to set goals and evaluate options to inform decision making.

Unit Mapping Information

No equivalent unit. New unit of competency.

Links

Companion volumes to this training package are available at the VETNet website - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=6f3f9672-30e8-4835-b348-205dfcf13d9b

 

Assessment requirements

Modification History

Release 2

This version first released with CPP Property Services Training Package Release 13.1.

Renumbered PCs 1.1 - 1.5 to rectify numbering repetition of PC 1.2. PCs are now numbered from 1.1 to 1.6.

Release 1

This version first released with CPP Property Services Training Package Release 8.0.

New unit of competency.

Performance Evidence

To demonstrate competency in this unit, a person must develop, implement and evaluate a plan to manage the operational finances in a property agency.

In doing this, the person must meet the performance criteria for this unit.

Knowledge Evidence

To be competent in this unit, a person must demonstrate knowledge of:

  • Commonwealth and state or territory legislation and local government regulations related to operational finances in the property industry
  • legislative responsibilities related to operational finances in real estate:
  • Business Activity Reports
  • superannuation
  • taxation returns
  • records retention periods
  • reporting protocols
  • salaries and commissions
  • agency policies, procedures and standards
  • agency quality standards
  • account-keeping practices
  • methods and tools for recording and reporting on operational finances
  • commission payment structures in the property industry
  • range of analysis techniques to interpret operational and feedback data
  • use of financial controls and reports in operational finances in real estate:
  • cash flow projections and forecasts
  • profit and loss reports
  • balance sheets (assets and liabilities)
  • break-even analyses
  • fixed costs and variable costs analyses
  • budgets
  • cost controls
  • reconciliation reports
  • use of profit centres
  • financial key performance indicators (KPIs)
  • capital interest costs
  • opportunity costs
  • processes for:
  • managing risk
  • analysing, determining and documenting financial strategies for agency departments for inclusion in business planning
  • establishing financial control roles in the property industry
  • directing financial controls in the property industry
  • managing and evaluating financial performance in the property industry.

Assessment Conditions

Assessors must satisfy the requirements for assessors listed in the Standards for Registered Training Organisations.

Assessment must be conducted in the workplace or in a simulated workplace environment.

Assessors are responsible for ensuring that the person demonstrating competency has access to materials and equipment meeting the operational requirements of a property agency, including:

  • business plans, strategies, policies and procedures, forms and records
  • financial records to enable realistic analysis and planning
  • position descriptions for employees, including detailed roles and responsibilities
  • equipment required to prepare documentation and to manage processes and teams in a property agency.

Links

Companion volumes to this training package are available at the VETNet website - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=6f3f9672-30e8-4835-b348-205dfcf13d9b