Unit of competency details
SITXFIN003 - Manage finances within a budget (Release 1)
Summary
Usage recommendation:
Superseded
Releases:
| 1 1 (this release) |
03/Mar/2016 |
Companion volumes:
Unit of competency
Assessment requirements
Training packages that include this unit
Qualifications that include this unit
Skill sets that include this unit
Accredited courses that have this unit in the completion mapping
Classifications
Classification history
| ASCED Module/Unit of Competency Field of Education Identifier | 080101 | Accounting | 09/Aug/2016 | |
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Unit of competency
Modification History
Not applicable.
Application
This unit describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. It requires the ability to interpret budgetary requirements, allocate resources, monitor actual income and expenditure, and report on budgetary deviations.
The skills and knowledge for budget development are covered in SITXFIN004 Prepare and monitor budgets.
This unit applies to all tourism, travel, hospitality and event sectors. The budget may be for an entire organisation, for a department or for a particular project or activity.
It applies to those who operate independently or with limited guidance from others. This includes supervisors and departmental managers.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Pre-requisite Unit
Nil
Competency Field
Finance
Unit Sector
Cross-Sector
Elements and Performance Criteria
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ELEMENTS
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PERFORMANCE CRITERIA
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Elements describe the essential outcomes.
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Performance criteria describe the performance needed to demonstrate achievement of the element.
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1. Allocate budget resources.
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1.1.Allocate funds according to budget and agreed priorities.
1.2.Discuss changes to income and expenditure priorities with appropriate colleagues prior to implementation.
1.3.Consult with and inform relevant personnel about resource decisions.
1.4.Promote awareness of the importance of budget control.
1.5.Maintain detailed records of resource allocation according to organisational control systems.
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2. Monitor financial activities against budget.
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2.1.Use financial records to regularly check actual income and expenditure against budgets.
2.2.Include financial commitments in all documentation to ensure accurate monitoring.
2.3.Identify and report deviations according to significance of deviation.
2.4.Investigate appropriate options for more effective management of deviations.
2.5.Advise appropriate colleagues of budget status in relation to targets.
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3. Identify and evaluate options for improved budget performance.
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3.1.Assess existing costs and resources and proactively identify areas for improvement.
3.2.Discuss desired budget outcomes with relevant colleagues.
3.3.Undertake appropriate research to investigate new approaches to budget management.
3.4.Define and communicate the benefits and disadvantages of new approaches.
3.5.Take account of impacts on customer service levels and colleagues in developing new approaches.
3.6.Present clear and logical recommendations for budget management.
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4. Complete financial and statistical reports.
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4.1.Complete financial and statistical reports within designated timelines.
4.2.Prepare and present clear and concise information to enable informed decision making.
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Foundation Skills
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Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.
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SKILLS
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DESCRIPTION
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Reading skills to:
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- interpret business and financial documents.
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Writing skills to:
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- document clear recommendations based on budget information and reports.
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Oral communication skills to:
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- discuss budget requirements and seek and provide feedback.
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Numeracy skills to:
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- interpret and use budget figures in day-to-day work operations
- calculate budget estimates and scenarios for performance improvement.
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Problem-solving skills to:
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- identify budget deviations and deficiencies and develop options for improved budgetary performance.
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Teamwork skills to:
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- discuss desired budget outcomes with team members and provide direction on resource use.
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Technology skills to:
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- use accounting software packages.
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Unit Mapping Information
SITXFIN402 Manage finances within a budget
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=68c40a93-e51d-4e0f-bc06-899dff092694
Assessment requirements
Modification History
Not applicable.
Performance Evidence
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
- manage a budget for a business over a three-month period that meets the specific business’ needs
- undertake at least two of the following to inform management of the above budget:
- discussions with existing suppliers
- evaluation of staffing and rostering requirements
- evaluation of impact of potential roster changes
- review of operating procedures
- sourcing new suppliers
- monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle
- complete financial reports related to the above budget within designated timelines and using correct budget terminology.
Knowledge Evidence
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
- types of financial records:
- bank deposit documentation
- bank statements
- banking summaries
- business activity statements
- cheque books
- credit card transaction statements
- invoices
- journal entries
- labour and wages reports
- merchant statements
- merchant summaries
- transaction reports
- cash budgets
- cash flow budgets
- departmental budgets
- event budgets
- project budgets
- purchasing budgets
- sales budgets
- wage budgets
- whole of organisation budgets
- factors for consideration in the preparation of financial and statistical reports:
- cash flow
- commercial account activity
- commission earnings
- covers and financial return
- daily, weekly and monthly transactions
- expenditure
- income
- occupancy rates and financial return
- performance of department, project and/or products and services
- sales performance
- sales returns
- staff costs
- stock levels
- variance in income and/or expenditure
- wastage
- yield
- use, contents of and formats for:
- budgets
- financial reports
- statistical reports
- budget terminology
- specific industry sector and organisation:
- use of budgets to control costs and enhance profitability
- importance of budget control
- techniques for maximising budget performance
- financial reporting procedures and cycles
- features and functions of accounting software programs used to manage budgets.
Assessment Conditions
Skills must be demonstrated in an operational tourism, travel, hospitality or events business operation for which budgets are managed. This can be:
- an industry workplace
- a simulated industry environment.
Assessment must ensure access to:
- computers, printers and accounting software packages
- budgets for specific projects, events or operational activities
- others with whom the individual can discuss budget components; these can be:
- those in an industry workplace who are assisted by the individual during the assessment process; or
- individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=68c40a93-e51d-4e0f-bc06-899dff092694
