Unit of competency Outline
Date retreived
23/07/2026 12:04 AM AWST
23/07/2026 12:04 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.
Use financial and economic information for strategic decision making
Use financial and economic information for strategic decision making
Unit of competency
National Code
LGAGCM707A
LGAGCM707A
State Code
D2854
D2854
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
15/08/2014
Field of Education
080301 - Business Management
Original Release Date
15/08/2014
Nominal Hours
70
Description
This unit covers the use and analysis of financial and economic information to achieve the objectives of the council. The use and interpretation of financial information to support business decision making, as well as the analysis and use of budget systems and reporting processes are addressed. The impact of micro and macro economic information on council and regional economic planning is also addressed.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Analyse financial resources
- 1.1 Financial resources required to achieve council objectives are identified and incorporated within budgets.
- 1.2 Additional expenditure required is forecast and provisions are made for access to required finances.
- 1.3 Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds.
2. Interpret financial and economic information
- 2.1 Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios.
- 2.2 Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated.
- 2.3 Financial performance of business units/councils are reviewed and reported appropriately.
3. Use financial information to support decision making
- 3.1 Different financial scenarios are identified and modelled to support decision-making process.
- 3.2 Cost-benefit analysis is conducted to support viability of council activities.
- 3.3 Appropriate financial advisers are consulted when using financial information to support business decisions.
- 3.4 Accurate financial information is obtained and analysed when developing business unit plans.
- 3.5 Decisions are made using updated financial information.
4. Maximise returns on financial resources
- 4.1 Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded.
- 4.2 Corrective action is taken when deviations in budgets occur, and variations are explained.
- 4.3 Data on the use of financial resources is collected, analysed and reported appropriately.
- 4.4 Recommendations for improving returns on financial resources are communicated to management.
- 4.5 Performance indicators are discussed with managers and staff and agreed upon.
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.
Economic factors may include:
interest rates
regional, state and national economic conditions and trends
unemployment rates
inflation
government fiscal and monetary policies
consumer confidence
Financial information include:
accountant prepared reports
balance sheets
profit and loss statements
cash flow statements
financial ratios
budgets:
operational
departmental
council
estimated and actual cost and revenue
Performance indicators include:
return on investment
credit ratings
reductions in expenditure
increases in income
Economic factors may include:
interest rates
regional, state and national economic conditions and trends
unemployment rates
inflation
government fiscal and monetary policies
consumer confidence
Financial information include:
accountant prepared reports
balance sheets
profit and loss statements
cash flow statements
financial ratios
budgets:
operational
departmental
council
estimated and actual cost and revenue
Performance indicators include:
return on investment
credit ratings
reductions in expenditure
increases in income
Overview of assessment requirements
A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making.
Critical aspects of evidence to be considered
The demonstrated ability to:
use and analyse financial and economic information to achieve council objectives
understand and apply tasks associated with interpreting and using the financial information outlined in the range statement
Context of assessment
Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.
Method of assessment
The following assessment methods are suggested:
preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies
written and oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioner
completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor
Evidence required for demonstration of consistent performance
Evidence should be gathered over a period of time in a range of actual or simulated management environments.
Resource implications
Access to a workplace or simulated case study that provides the following resources:
relevant council documents, such as strategic and operational plans
relevant local government legislation and regulations
A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making.
Critical aspects of evidence to be considered
The demonstrated ability to:
use and analyse financial and economic information to achieve council objectives
understand and apply tasks associated with interpreting and using the financial information outlined in the range statement
Context of assessment
Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.
Method of assessment
The following assessment methods are suggested:
preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies
written and oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioner
completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor
Evidence required for demonstration of consistent performance
Evidence should be gathered over a period of time in a range of actual or simulated management environments.
Resource implications
Access to a workplace or simulated case study that provides the following resources:
relevant council documents, such as strategic and operational plans
relevant local government legislation and regulations
No information
| State Code | National Code | Title | Type |
|---|---|---|---|
| D352 | LGA70108 | Graduate Certificate In Local Government Management | Qualification |