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Elements and Performance Criteria 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. Prepare budget information. 1.1Determine and confirm scope and nature of required budgets. 1.2 Identify, access and interpret data and data sources required for budget preparation. 1.3Analyse internal and external factors for potential impact on budget. 1.4Provide opportunities for colleagues to contribute to the budget planning process. 2. Prepare budget. 2.1Draft budget, based on analysis of all available information. 2.2Estimate income and expenditure and support with valid, reliable and relevant information. 2.3Reflect organisational objectives within the draft budget. 2.4Assess and present options and recommendations in a clear format. 2.5Circulate the draft budget to colleagues and managers for input. 3. Finalise budget. 3.1Negotiate budget according to organisational policy and procedures. 3.2Agree on and incorporate modifications. 3.3Complete final budget in a clear format within designated timelines. 3.4 Inform colleagues of final budget decisions and their application within the relevant work area, including reporting and financial management responsibilities. 4. Monitor and review budget. 4.1Regularly review budget to assess actual performance against estimated performance and prepare accurate financial reports. 4.2 Incorporate all financial commitments into budget and all budget reports. 4.3 Investigate and take appropriate action on significant deviations. 4.4Analyse changes in the internal and external environment and make necessary adjustments. 4.5Collect and record relevant information to assist in future budget preparation. SITXFIN501 Prepare and monitor budgets Date this document was generated: 18 January 2013 Approved Page 4 of 8 © Commonwealth of Australia, 2013 Service Skills Australia Required Skills and Knowledge This section describes the skills and knowledge required for this unit. Required skills communication skills to liaise and negotiate with colleagues on potential complex and conflicting budget requirements critical thinking skills to analyse internal and external factors for potential impact on budget initiative and enterprise skills to draft budgets that meet organisational objectives literacy skills to: read and interpret information that deals with complex ideas and concepts research internal and external factors that may impact on budgetary performance write complex budget reports and recommendations numeracy skills to interpret and analyse financial information, including forecasts and previous performance data, and to develop financial estimates and scenarios using complex calculations planning and organising skills to access and sort all information required for budget preparation and to coordinate a timely, efficient and consultative budget development process problem-solving skills to: identify budgetary challenges and develop different options for their resolution identify budget deviations and deficiencies and develop options for meeting budgetary requirements self-management skills to take responsibility for budget development teamwork skills to invite and coordinate the input of others in the organisation, and provide direction on budget management technology skills to use accounting software packages. Required knowledge budget terminology for the specific industry sector and organisation: role and nature of budgets a range of 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 budget preparation and moni SITXFIN501 Prepare and monitor budgets Date this document was generated: 18 January 2013 Approved Page 5 of 8 © Commonwealth of Australia, 2013 Service Skills Australia Evidence Guide 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: prepare multiple budgets to meet specific and differing workplace needs consult on budget components and monitor and review budgets against performance over a budgetary life cycle analyse the factors that impact the budget integrate knowledge of budget preparation and monitoring practices and techniques complete draft and final budgets 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 prepared computers, printers and accounting software packages currently used by the tourism, hospitality and event industries financial and operational data and reports used to prepare budgets for tourism, hospitality and event business activities others with whom the individual can discuss, and negotiate draft and final budget components. 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: prepare and monitor budgets produce reports evaluating actual performance against estimated performance produce financial reports related to the budgets evaluation of reports produced by the individual detailing the processes undertaken to prepare a budget direct observation of the individual negotiating the acceptance of a proposed budget SITXFIN501 Prepare and monitor budgets Date this document was generated: 18 January 2013 Approved Page 6 of 8 © Commonwealth of Australia, 2013 Service Skills Australia use of case studies and problem-solving activities about budget deviations and required actions written or oral questioning to assess knowledge of budget preparation and monitoring practices and techniques 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: BSBCMM401A Make a presentation BSBPMG501A Manage projects SITXFIN401 Interpret financial information SITXFIN402 Manage finances within a budget SITXFIN601 Manage physical assets.
