Unit of competency Outline

Date retreived
23/07/2026 6:46 PM AWST

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Prepare operational budgets

Prepare operational budgets

Unit of competency
National Code
FNSACC402A
State Code
D4034
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
21/07/2014
Field of Education
080905 - Practical Computing Skills
Original Release Date
21/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to prepare and document operational budgets for a variety of organisations.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Prepare the budget
  • 1.1. Budget objectives are confirmed and consistent with organisational aims, projects and forecasts
  • 1.2. Cash, expenditure and revenue items are clearly defined and relevant to the identified objectives of the budget
  • 1.3. Discussions and negotiations with stakeholders that the budget applies to are conducted in a manner that promotes goodwill and ongoing cooperation
2. Set the budget timeframe
  • 2.1. Milestones and performance indicators are identified and included in the budget
  • 2.2. Annual budgets are broken down into seasonal periods in accordance with operating trends
3. Document the budget
  • 3.1. Data is presented in a format that is easily understood and appropriate to budget reporting
  • 3.2. Reports are completed within timelines and distributed for specified periods and projects
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.
Budget objectives may include:
annual planning
cost reduction
rolling forecasts:
next period
monthly
next year.
Expenditure and revenue items may include:
capital expenditure
client and supplier payments
sales
commissions
fees and charges
Goods and Services Tax (GST)
Pay As You Go (PAYG) tax
revenue producing expenditures
sales.
Stakeholders may include:
chief executive officers
clients
directors
financial institutions
suppliers.
Milestones and performance indicators may include:
compliance with scheduled payment dates
profits and losses
reports:
quarterly
half yearly
annually.
Data may include:
cash flow projections
fixed costs information
sales records and projections
variable business costs.
Formats and presentation methods may include:
explanations of calculations used
explanatory notes
graphics
highlighted estimates and projections
tables.
Reports may include:
cash budgets
purchase budgets
sales budgets
Statement of financial performance
Statement of financial position.
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:
apply knowledge of organisational policies and procedures
establish and confirm milestones and performance indicators
prepare budgets for a variety of purposes and organisations
accurately record and document budget reports.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
simulated tasks involving preparation of budgets from supplied data
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
evaluating samples of work.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9596 FNSACCT403B Prepare operational budgets Unit of competency
Replaced By
State Code National Code Title Type
AUQ01 FNSACC402 Prepare operational budgets Unit of competency