Assessment Requirements for SITXFIN010 Prepare and monitor budgets

Release: 1

Assessment Requirements for SITXFIN010 Prepare and monitor budgets

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:

prepare a budget for a business that meets the specific business’ needs

include the following when preparing the above budget:

consultation on components

analysis of factors that impact on the budget

completion of draft and final versions of budget within designated timelines

monitor and review the above budget against performance over its life cycle.

Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

types of budgets:

cash

cash flow

departmental

project

purchasing

sales

wage

whole of organisation

budget terminology

role and nature of budgets

budget formats, budget performance and financial reports

financial reporting procedures and cycles

features and functions of accounting software programs used to prepare and monitor budgets

internal and external factors that impact on budget development:

growth or decline in economic conditions

human resource requirements

new legislation or regulation

organisational and management restructures

organisational objectives

scope of the project

shift in market trends

significant price movement for certain commodities or items

supplier availability and cost

budget preparation and monitoring practices and techniques:

sources and contents of data required for budget preparation:

competitor research

customer or supplier research

declared commitments in areas of operation

financial information from suppliers

financial proposals from key stakeholders

income and expenditure for previous time periods

departmental, event or project budgets

grant funding guidelines or limitations

management policies and procedures

organisational budget preparation guidelines

performance information from previous periods

techniques for making budget estimates

common reasons for deviations and budget deviation management.

Assessment Conditions

Skills must be demonstrated in an operational business environment. This can be:

an industry workplace; or

a simulated industry environment set up for the purposes of assessment.

Assessment must ensure access to:

computers, printers and accounting software

financial and operational data and reports used to prepare budgets

others with whom the individual can discuss and negotiate draft and final 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