research options for more effective budgetary control

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.