Modification History
New unit.
Unit Descriptor
This unit of competency is part of the Advanced Diploma training pathways. It covers the competencies required to prepare and manage AMOs budgets and financial plans and to effectively interface with professional finance advisers and accountants.
Application of the Unit
This unit requires application of procedures for the development and management of budgets and financial plans required to enable the effective operation of an AMO within the bounds of its exposition.
Applications include the financial management obligations of Accountable Managers of AMOs operating under the ADF or the CASA regulatory systems.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
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
1 |
Analyse strategic opportunities and intended maintenance activities |
1.1 |
Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities |
1.2 |
All intended maintenance activities are converted into special projects or work programs |
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1.3 |
Financial trends are analysed and interpreted in the context of the organisational strategic objectives |
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1.4 |
Financial planning objectives, process timeframes and resources are clearly identified |
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2 |
Develop revenue, expenditure and capital investment proposals |
2.1 |
Individuals and groups are given responsibility for the development of specific budgets and plans |
2.2 |
Consultation occurs with all relevant groups and individuals throughout the organisation |
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2.3 |
Proposals are developed taking account of past experience, present trends and future expectations |
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2.4 |
Outcomes of proposals are clearly linked to organisational strategic objectives |
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2.5 |
Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals |
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2.6 |
Organisational investment target rates are met for capital expenditure proposals |
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2.7 |
Performance measures and tactics for monitoring and control processesare identified for each proposal/action and a financial risk management plan is developed |
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2.8 |
Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations |
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2.9 |
Proposals are developed within the agreed timeframes |
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2.10 |
Supporting evidence is valid and sufficient to allow proper evaluation of the proposals |
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3 |
Build agreement for budgets and financial plans |
3.1 |
Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans |
3.2 |
Links to the achievement of organisational strategic objectives are identified and agreed |
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3.3 |
Outcomes are confirmed in terms of clear, concise objectives and timeframes |
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3.4 |
Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans |
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3.5 |
Budgets and plans incorporate the outcomes of negotiations and meet organisation’s approval processes |
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3.6 |
Delegations, accountabilities and responsibilities are agreed and confirmed in writing |
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3.7 |
Final budget and plans are clearly documented and a communication plan developed |
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4 |
Communicate budget and financial plans |
4.1 |
Budget/financial plan communication package is reviewed by finance specialists |
4.2 |
Package is amended/revised where appropriate |
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4.3 |
Training activities are undertaken with users of the budget and plans across the organisation |
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4.4 |
All data and terms are defined and understood by the users of the plans |
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4.5 |
Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities |
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5 |
Monitor and control activities against plans |
5.1 |
Delegations and budget accountabilities are confirmed in writing prior to budget period |
5.2 |
Funds are allocated in accordance with budget objectives and parameters |
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5.3 |
Recording systems and documentation meet all audit requirements and legal obligations |
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5.4 |
Risk management plans are implemented and contingency plans put in place for all financial plans |
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5.5 |
Performance is monitored and variances promptly identified |
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5.6 |
Variances are analysed in conjunction with relevant experts to determine cause and effect |
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5.7 |
Remedial action is taken swiftly to minimise negative impact and maximise benefits |
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5.8 |
Budgets and plans are renegotiated/restructured where necessary to optimise organisational performance |
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6 |
Report outcomes of financial plans |
6.1 |
Records of financial performance are properly maintained within organisational systems |
6.2 |
Financial performance is analysed and reported in a form and language appropriate to the audience |
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6.3 |
Non-financial objectives are reported in the context of overall organisational performance |
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6.4 |
Strategies and plans are reviewed and updated to optimise organisational performance |
Required Skills and Knowledge
Look for evidence that confirms knowledge of:
Look for evidence that confirms skills in:
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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. |
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Overview of assessment |
A person who demonstrates competency in this unit must be able to prepare and manage budgets and financial plans in the aviation maintenance organisation environment. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria, including required knowledge, and be capable of applying the competency in new and different situations and contexts. Assessors should gather a range of evidence that is valid, sufficient, current and authentic. Evidence can be gathered through a variety of ways, including direct observation, supervisor’s reports, project work, samples and questioning. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. |
Context of and specific resources for assessment |
This unit may be assessed on the job, off the job or a combination of both on and off the job. Where assessment occurs off the job, that is, the candidate is not in productive work, then an appropriate simulation must be used where the range of conditions reflects realistic workplace situations. The candidate must have access to all materials and documentation required and must be permitted to refer to any relevant workplace procedures, codes, standards, manuals and reference materials. The assessment environment should not disadvantage the candidate. |
Method of assessment |
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Guidance information for assessment |
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. |
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Legislation, codes and national standards relevant to the workplace |
Legislation, codes and national standards relevant to the workplace may include:
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Strategic opportunities |
Strategic opportunities may include:
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Budgets and plans |
Budgets and plans may include:
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Relevant groups and individuals |
Relevant groups and individuals include:
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Investment target rates |
Investment target rates refers to:
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Capital expenditure |
Capital expenditure refers to:
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Legal and ethical obligations |
Legal and ethical obligations include:
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Supporting evidence |
Supporting evidence may include:
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Delegations |
Delegations refers to:
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Accountabilities and responsibilities |
Accountabilities and responsibilities include:
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Training activities |
Training activities may include:
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Delegations and budget accountabilities |
Delegations and budget accountabilities may include:
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Audit requirements |
Audit requirements include:
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Risk management |
Risk management refers to:
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Appropriate non-financial objectives |
Appropriate non-financial objectives may include:
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Unit Sector(s)
Aviation maintenance management
Custom Content Section
Not applicable.