Elements and Performance Criteria

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, 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.
Systems are defined as:
a detailed description/depiction of how organisations relate to their environments and how they process information through strategic and tactical management to develop actual operating procedures
electronic financial management systems used by the organisation.
Financial data may include:
Australian Bureau of Statistics (ABS) economic data
balance sheet
benchmarks or trend analysis
budget variances
budgets and forecasts
cash flow/profit reports
financial/operational statements and reports (e.g. expenditures and receipts, and profit and loss statements)
financial markets monitoring services (e.g. Reuters)
income statements
market valuations.
Statutory requirements may include:
delegated authorities
internal control procedures
reporting periods
taxation payment timings.
Standard accounting reports may include:
deprival asset valuations
direct and indirect allocation
discounted cash flows
impact statements
internal rate of return
net present value
pay back break even periods
pro-rata and percentage apportionment
rates of return.
Management responsibilities may include:
organisational policies, procedures, guidelines, ethical and/or professional standards.
Legal requirements may include:
private sector requirements, such as:
Australian Accounting Standards (SAC 1, 2, Framework AASB1001)
Corporations Act 2001
GST and income tax reporting
public sector requirements, such as:
Financial Administration and Audit Act 1977
Financial Management Standard 1997.
Key information may include:
gross profit
net profit
return on investment
for public or not-for-profit organisations:
best use of resources
surplus/deficit against budget
value for money.
A specific activity might include:
significant project (e.g. new product line)
introduction of new technology
partnership arrangement with another organisation
introduction of a new customer.
A specified time frame may:
be long enough to be able to undertake a meaningful impact evaluation of an activity (e.g. over a period of several months or a full planning cycle)
cover the lifetime of a specific project.
Comparative and trend information includes:
benchmarks as agreed
business activity
brand value
expenses
leverage
liquidity
profitability
return on equity
sales
wages.
Organisational requirements may include:
financial analysis assessments
financial management manuals
legal and organisational policies, guidelines and requirements
Occupational Health and Safety (OH&S) policies, procedures and programs
price and exchange parameters
quality assurance and/or procedures manuals
recording and filing systems
reporting requirements
standard financial analysis techniques.
Risks may include:
damage to property/equipment
environmental
equipment/system failures
financial/economic loss/failure
industrial disputation
market changes
natural disasters
OH&S (e.g. disease)
contamination
political events
product failure
professional incompetence
security failure (e.g. criminal or terrorist activities).
Risk management is:
the process of identifying potential negative events and developing plans to mitigate or minimise the likelihood of the negative event occurring and/or the consequences in the event it does occur.
Financial documentation may include:
balance sheets
budgetary analysis
electronic forms
financial year reports
forecasts and estimates
operating statements
order and supplier documentation
returns on investments
spreadsheets
taxation and statutory returns.

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 following is essential:
preparing a financial resource plan/budget
monitoring and managing financial resources over a full planning cycle
effectively communicating financial reports and operational execution
making adjustments to changing circumstances and responding to unusual situations
knowledge of relevant legislation.
Context of and specific resources for assessment
Assessment must ensure:
access to workplace contractual and procurement documentation
competence is consistently demonstrated over time, and over a range and variety of situations
access to appropriate documentation and resources normally used in the workplace
access to an appropriate operating environment.
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:
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
completion of applied projects or learning activities, such as budget preparation, analysis and reporting, preparation of financial forecasts, and review and analysis of costs
direct observation of contextual application of skills
oral or written questioning to assess knowledge of risk and return
review of documentation displaying compliance with professional and regulatory standards for financial management.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example, with other units in the qualification in which this unit is packaged.