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 in the performance criteria is detailed below.

Data and data sources required for budget preparation may include:
performance data from previous periods
financial proposals from key stakeholders
financial information from suppliers
customer or supplier research
competitor research
management policies and procedures
organisation budget preparation guidelines
declared commitments in given areas of operation
grant funding guidelines or limitations.


Budgets may include:
cash budgets
departmental budgets
wage budgets
project budgets
event budgets
sales budgets
cash flow budgets
grant funding budgets
budgets for micro, small, medium or large businesses.


Internal and external factors that could impact on budget development may include:
organisational and management restructures
organisational objectives
new legislation or regulation
growth or decline in economic conditions
significant price movement for certain commodities or items
shift in market trends
scope of the project
venue availability and cost (for events)
human resource requirements.


Financial reports may include:
periodic reports showing budget versus year-to-date actuals and financial commitments
periodic sales reports
taxation commitments
funding acquittals in relation to grants received.

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:
understanding of the technical processes and procedures that must be followed in budget preparation
sound analysis of the factors that impact the budget and budget development process
ability to prepare realistic and accurate budgets within relevant workplace context
preparation of multiple budgets to meet specific and differing workplace needs
project or work activities conducted over an operationally realistic period of time so that the planning and evaluation aspects of preparing and monitoring a budget can be assessed.


Context of and specific resources for assessment
Assessment must ensure:
involvement of multiple stakeholders in the budget development and monitoring process
use of industry-current technology for the budget preparation and evaluation process.


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 budgets versus financial performance of projects managed by the candidate
evaluation of reports produced by the candidate detailing the processes undertaken to develop a budget
direct observation of the candidate providing a briefing or negotiating on a proposed budget
case studies and problem-solving to assess application of the principles of budget preparation and evaluation 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:
SITXFIN004A Manage finances within a budget.


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.