Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit covers the skills and knowledge required to manage financial performance in an organisation or business unit. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
Leaders in agri-business are typically required to forecast future financial resource needs, analyse current asset performance and capacity to a standard expected in a commercial environment, and to set business targets. There will be a requirement to manage compliance mechanisms, to manage financial risk within agreed plans and mechanisms, and to monitor compliance with financial projections. This unit will have specific relevance for leaders or managers working in a competitive commercial environment. |
Licensing/Regulatory Information
Refer to Unit Descriptor
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. Forecast future financial resource needs |
1.1. The capacity of existing financial systems is established and assessed. 1.2. Financial data and business system requirements are forecasted. 1.3. Forecasted requirements are analysed. 1.4. Budget forecasts are prepared and planned according to organisational and statutory requirements . 1.5. Recommendations for budget expenditure or for modification of existing projections are prepared and presented. |
2. Analyse current asset performance and capacity |
2.1. The costs of, and returns from, assets and liabilities are analysed using standard accounting reports identifying the extent of the debt and equity financing. 2.2. Management responsibilities and legal requirements for reporting are identified in consultation with relevant organisational staff. 2.3. Financial reports and key information are analysed and interpreted. 2.4. The effects of financial decisions on the ability of the organisation to meet planned outcomes in relation to a specific activity or specified timeframe are analysed and evaluated. |
3. Set business targets and compliance mechanisms |
3.1. Comparative and trend information is collected and needs for future budget and associated resources confirmed. 3.2. Consultation on relevant short-term and long-term needs is completed. 3.3. Resources are allocated against the budget to maximise organisation's performance. 3.4. Accurate and up-to-date records of resource allocation and usage are maintained according to organisational requirements . 3.5. Management systems which enable timely collection, management and processing of information are developed and reviewed. 3.6. Records of budget performance and expenditure are completed and accurately reported according to organisational procedures and statutory requirements. 3.7. Budget audit mechanisms and compliance requirements are evaluated and improved, as required. |
4. Manage financial risk |
4.1. Financial risk factors are identified and analysed. 4.2. Financial risks are documented and managed according to organisational policies and procedures. 4.3. Procedures are implemented to review financial risk management activities regularly. |
5. Monitor compliance with financial projections |
5.1. Deviations from budgets that generate an adverse affect on budget objectives are identified. 5.2. Action plans to remedy significant deviations from budget objectives and projections are promptly developed. 5.3. Financial documentation is monitored and reviewed against organisational objectives. 5.4. Budget priorities are revised and renewed to meet operational contingencies and risk management. 5.5. Costs to targets set in the budget are managed. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
Ability to:
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Required knowledge |
Knowledge of:
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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, with other units in the qualification in which this unit is packaged. |
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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Systems are defined as: |
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Financial data may include: |
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Statutory requirements may include: |
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Standard accounting reports may include: |
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Management responsibilities may include: |
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Legal requirements may include: |
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Key information may include: |
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A specific activity might include: |
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A specified time frame may: |
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Comparative and trend information includes: |
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Organisational requirements may include: |
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Risks may include: |
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Risk management is: |
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Financial documentation may include: |
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Unit Sector(s)
Unit sector |
Co-requisite units
Co-requisite units |
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Competency field
Competency field |