Unit of competency details

Release 

TP Version 

Comments 

3

PSP12V1

Unit descriptor edited.

2

PSP04V4.2

Layout adjusted. No changes to content.

1

PSP04V4.1

Primary release.

Elements are the essential outcomes of the unit of competency.

Together, performance criteria specify the requirements for competent performance. Text in bold italics  is explained in the Range Statement following.

ELEMENT 

PERFORMANCE CRITERIA 

1 . Analyse organisational issues 

1.1 The financial management implications of the internal  and external  issues facing the organisation are identified.

1.2 Internal and external stakeholders  are consulted and the impact of their expectations on financial management is identified.

1.3 Information is analysed  to identify strategic financial management issues and the impact of legislative requirements.

2 . Ascertain the current resource position of the organisation 

2.1 Existing strategic priorities are identified and the resource requirements of these are confirmed.

2.2 The economic viability of proposed goals and objectives is assessed  and resource requirements are identified.

2.3 Resource assessments are prepared to confirm the current resource position  and endorsement by management is sought in accordance with organisational policy and procedures. 

3 . Assist in identifying and assessing resourcing strategies 

3.1 The financial implications of alternative resourcing  and program delivery strategies are considered in accordance with government policy.

3.2 Financial evaluation techniques  are used to assess the effect and financial sensitivity  of alternative strategies and program variations.

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

Skill requirements 

Look for evidence that confirms skills in:

• interpreting organisational information in financial terms
• preparing strategies and reports requiring precision of expression
• financial assessment and evaluation
• responding to diversity, including gender and disability
• applying environmental and occupational health and safety procedures relating to working in the public sector

Knowledge requirements 

Look for evidence that confirms knowledge and understanding of:

• legislation, policies and processes relating to public sector finance
• strategic planning processes
• undertaking financial evaluation techniques
• alternative resourcing strategies
• forecasting, financial sensitivity testing and cost-benefit analysis
• legislation related to work in the public sector such as environmental and occupational health and safety requirements

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.

Units to be assessed together 

• Pre-requisite units that must  be achieved prior  to this unit:Nil
• Co-requisite units that must  be assessed with  this unit:Nil
• Co-assessed units that may  be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:

• PSPETHC601B Maintain and enhance confidence in public service
• PSPLEGN601B Manage compliance with legislation in the public sector
• PSPMNGT602B Manage resources
• PSPMNGT608B Manage risk
• PSPMNGT609B Formulate business strategies

Overview of evidence requirements 

In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:

• the knowledge requirements of this unit
• the skill requirements of this unit
• application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
• strategic financial analysis undertaken in a range of (2 or more) contexts (or occasions, over time)

Resources required to carry out assessment 

These resources include:

• public sector and organisational financial procedures and protocols
• case studies and scenarios that provide organisational information for analysis
• financial legislation and guidelines, such as central agency guidelines

Where and how to assess evidence 

Valid assessment of this unit requires:

• a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when undertaking strategic financial analysis, including coping with difficulties, irregularities and breakdowns in routine
• strategic financial analysis undertaken in a range of (3 or more) contexts (or occasions, over time)

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:

• people with disabilities
• people from culturally and linguistically diverse backgrounds
• Aboriginal and Torres Strait Islander people
• women
• young people
• older people
• people in rural and remote locations

Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:

• case studies
• portfolios
• projects
• questioning
• scenarios
• authenticated evidence from the workplace and/or training courses

For consistency of assessment 

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments

The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in bold italics  in the Performance Criteria is explained here.

Internal issues  may include:

• public sector and departmental policies and priorities
• specific government initiatives
• linkage to existing strategic, corporate or business plans
• information technology
• human resources and industrial relations
• historical performance

External issues  may include:

• government policies and priorities
• economic climate and forecasts
• federal and other government policy and legislation
• political/community views
• service demand assessments
• demographics
• technological developments

Stakeholders  may include:

• Parliament
• community groups
• executive or central agencies
• clients
• other agencies and government entities
• staff

Analysis  may include:

• situation analysis
• strengths, weaknesses, opportunities, threats (SWOT)
• economic analysis

Assessment  may include:

• forecasting
• sensitivity testing
• cost-benefit analysis

Resource position  may include consideration of:

• cash flow patterns and financial position
• physical asset requirements and maintenance
• debt/equity structure
• human resource and organisational issues
• extent and timing of liabilities including contingencies
• taxation requirements
• return on investment

Policies and procedures  may include:

• financial management Acts and regulations
• financial administration and audit Acts
• public sector finance standards
• Treasury guidelines
• financial management benchmarking studies
• the organisation's:
• financial management
• delegations
• budget guidelines/instructions
• style requirements
• quality requirements
• government financial policy statements and guidelines
• Australian Accounting Standards
• Generally Accepted Accounting Practices (GAAP)
• Australian Bureau of Statistics (ABS) requirements
• Government Finance Statistics (GFS) requirements
• corporate planning
• whole-of-government/agency systems and reporting

Alternative resourcing strategies  may include consideration of:

• outsourcing
• right-sizing
• reorganisation
• amalgamation
• user charging
• revenue generation
• commercialisation
• corporatisation
• competitive service delivery
• strategic alliances/partnering

Financial evaluation techniques  will vary depending on the nature of the strategy but may include:

• cash flow forecasts
• accrual-based financial statement forecasts
• net present value calculations
• activity-based costing
• economic value added analysis
• cost-benefit analysis
• internal rates of return
• benchmarking of services
• program evaluations

Financial sensitivity testing  may require consideration of possible variations in:

• service output levels
• economic, regulatory and technological factors impacting on the agency's operations that may include:

• program variations
• changing risk profiles
• cash flow impacts
• tax effects