Unit of competency details

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1.0

E

Replaces and is equivalent to SITXFIN004A Manage finances within a budget.

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.

1. Allocate budget resources.

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 all 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.

2. Monitor financial activities against budget.

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.

3. Identify and evaluate options for improved budget performance.

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.

4. Complete financial and statistical reports.

4.1 Complete financial and statistical reports  within designated timelines.

4.2 Prepare and present clear and concise information to enable informed decision making.

This section describes the skills and knowledge required for this unit.

Required skills 

• communication skills to discuss budget requirements and to seek and provide feedback
• critical thinking skills to analyse resource use and costs
• initiative and enterprise skills to proactively identify better resource usage and budgetary improvements
• literacy skills to:

• read and interpret a wide range of business and financial documents
• research options for more effective budgetary control
• write budget reports and recommendations

• numeracy skills to interpret and use budget figures in day-to-day work operations, and to calculate budget estimates and scenarios for performance improvement
• planning and organising skills to produce budgetary reports within designated timelines
• problem-solving skills to identify budget deviations and deficiencies and develop options for improved budgetary performance
• self-management skills to take responsibility for budget management
• teamwork skills to discuss desired budget outcomes with team members and provide direction on resource usage
• technology skills to use accounting software packages.

Required knowledge 

• a range of formats for, use and contents of:

• budgets
• financial reports
• statistical reports

• budget terminology
• for the 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.

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.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the ability to:

• interpret and manage multiple budgets to meet specific and differing workplace needs
• monitor income and expenditure and evaluate budgetary performance over a budgetary life-cycle
• use correct budget terminology
• integrate knowledge of the formats, use and contents of budgets, financial and statistical reports
• complete financial reports within designated timelines.

Context of and specific resources for assessment 

Assessment must ensure use of:

• a real or simulated tourism, hospitality or event industry business operation or activity for which budgets are managed
• computers, printers and accounting software packages currently used by the tourism, hospitality and event industries
• budgets for specific projects, events or operational activities.

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:

• projects and activities that allow assessment of the individual’s ability to:

• interpret and manage budgets; monitor income and expenditure
• produce financial and statistical reports
• report on overall budgetary performance

• evaluation of reports produced by the individual detailing the processes undertaken to manage finances within a budget
• written or oral questioning to assess knowledge of budget terminology, format and content
• review of portfolios of evidence and third-party workplace reports of on-the-job performance by the individual.

Guidance information for assessment 

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

• BSBPMG501A Manage projects
• SITXFIN401 Interpret financial information
• SITXFIN501 Prepare and monitor budgets.

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.

Budget  may include:

• budgets for micro, small, medium or large businesses
• cash budgets
• cash flow budgets
• departmental budgets
• event budgets
• project budgets
• purchasing budgets
• sales budgets
• wage budgets
• whole of organisation budgets.

Financial records  may include:

• 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.

Appropriate colleagues  may include:

• internal or external financial specialists
• managers
• operational staff.

Research to investigate new approaches  may include:

• discussions with existing suppliers
• evaluating staffing and rostering requirements
• potential roster changes
• reviewing operating procedures
• sourcing new suppliers.

Financial and statistical reports  may relate to:

• 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
• products and services

• sales performance
• sales returns
• staff costs
• stock levels
• variance in income and/or expenditure
• wastage
• yield.