SITXFIN004A - Manage finances within a budgetSITXFIN004AManage finances within a budget

Unit descriptor

This unit describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. The skills and knowledge for budget development are found in unit SITXFIN005A Prepare and monitor budgets.

Application of the unit

This unit applies to individuals responsible for managing and controlling a budget in any industry context.

The budget may be for an entire small organisation, for a section of a larger organisation, or for a particular project or activity.

Senior operational personnel or supervisors undertake this role.

Prerequisite units

Nil

Employability skills

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide.

EVIDENCE GUIDE

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

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

Evidence of the following is essential:

knowledge of basic budget principles and structures

budgeting terminology relevant to a specific industry context

ability to monitor budgeted income and expenditure and to identify ways of improving budget performance

understanding of the main types of budgets that apply in the specific organisation or industry context

management of and reporting on a budget for a specific project or operational area over a period of time so that the monitoring and implementation aspects of managing finances within a budget can be assessed.

Context of and specific resources for assessment

Assessment must ensure:

use of figures and data that reflect the realistic financial operating conditions of industry.

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate

evaluation of reports produced by the candidate detailing the processes undertaken to manage finances within a budget

case studies and problem-solving to assess application of the principles of budget management to different situations

review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

SITXFIN005A Prepare and monitor budgets.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.

RANGE STATEMENT

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 in the performance criteria is detailed below.

Budgets may include:

cash budgets

departmental budgets

wage budgets

project budgets

purchasing budgets

sales budgets

cash flow budgets

budgets for micro, small, medium or large businesses.

Appropriate colleagues may include:

operational staff

managers

internal or external financial specialists.

Research to investigate new approaches may include:

discussions with existing suppliers

sourcing new suppliers

evaluating staffing and rostering requirements

reviewing operating procedures

potential roster changes.

Financial and statistical reports may relate to:

daily, weekly and monthly transactions and reports

break-up by department

occupancy

sales performance

commission earnings

sales returns

yield management

commercial account activity.

Sector

Cross-Sector

Competency field

Finance