Unit of competency Outline

Date retreived
22/07/2026 5:31 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Develop and manage a budget

Develop and manage a budget

Unit of competency
National Code
FNSORG501A
State Code
D4262
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
15/10/2014
Field of Education
080101 - Accounting
Original Release Date
15/10/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to collect and analyse information and apply sound accounting principles to the development and ongoing management of a budget for a small organisation or section of a large organisation.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Plan for and collect information for a budget
  • 1.1. Areas for which the budget is being prepared are determined and confirmed with appropriate personnel, and data required for development of the budget are identified, accessed and analysed
  • 1.2. Budget parameters are determined with estimates based on research, consultation and negotiating with appropriate personnel
  • 1.3. Relevant colleagues are provided with the opportunity to contribute to the budget planning process
2. Develop budget
  • 2.1. Budget is drafted based on analysis of all available information in accordance with organisation policy
  • 2.2. Income and expenditure estimates are identified and supported by reliable information and the draft budget circulated for comment
3. Finalise budget and allocate resources
  • 3.1. Modifications to the budget are agreed and incorporated as required and a final budget provided to the appropriate personnel
  • 3.2. Personnel affected by the budget are informed and its application to the area in which they work in terms of limits and goals, financial management and reporting responsibilities clarified
  • 3.3. Priorities within the budget are agreed and resources allocated
4. Monitor and control budget
  • 4.1. Actual income and expenditure are checked against budget at regular intervals with budget reports prepared and presented to appropriate personnel
  • 4.2. Deviations and response to the deviations are identified and appropriate action taken with appropriate personnel advised on budget status
5. Complete financial and statistical reports
  • 5.1. All required financial and statistical reports are completed accurately within designated timelines
  • 5.2. Recommendations about future financial planning are made as appropriate
  • 5.3. Reports are clearly presented and checked for accuracy and provided to appropriate personnel
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.
Areas may include:
an entire organisation
section of an organisation
particular project or other activity.
Budget will normally:
refer to an expenditure budget but may also include:
an income budget
sales budget
resource allocation and use budget.
Data will include, but is not restricted to, information relating to:
business plans
historical data
human resource plans
sales and marketing plans.
Budget parameters include:
availability of finance
organisation policy and directives
sales forecasts
timelines.
Relevant colleagues include:
all stakeholders who may be expected to need to approve the budget and key stakeholders who will be required to implement the budget.
Income and expenditure includes:
monetary and financial income and expenditure but may also include:
resources
materials
products
people or hours.
Financial and statistical reports include:
reports which may be required for:
regulatory compliance
to meet organisation procedure and policy requirements
to give useful information to a relevant person.
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:
collect and accurately interpret relevant data to develop a budget
consult effectively and negotiate outcomes with others on budgetary issues
accurately complete financial and statistical reports related to budgeting.

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
access to an integrated financial software system and data.

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
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9760 FNSICORG501B Develop a budget Unit of competency
Replaced By
State Code National Code Title Type
AUS35 FNSORG501 Develop and manage a budget Unit of competency