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.
Budget/financial plans may include:
cash flow projections
long-term budgets/plans
operational plans
short-term budgets/plans
spreadsheet-based financial projections
targets or key performance indicators for production, productivity, wastage, sales, income and expenditure
Relevant personnel may include:
financial managers, accountants or financial controllers
supervisors, other frontline managers
Contingency plans may include:
contracting out or outsourcing human resources and other functions or tasks
diversification of outcomes
finding cheaper or lower quality raw materials and consumables
increasing sales or production
recycling and re-using
rental, hire purchase or alternative means of procurement of required materials, equipment and stock
restructuring of organisation to reduce labour costs
risk identification, assessment and management processes
seeking further funding
strategies for reducing costs, wastage, stock or consumables
succession planning
Support may include:
access to specialist advice
documentation of procedures
help desk or identified experts within the organisation
information briefings or sessions
intranet-based information
training including mentoring, coaching and shadowing
Required roles may include:
arranging for use of corporate credit cards
banking
debt collection
ensuring security, accuracy and currency of financial operations
invoicing clients, customers and consumers
maintaining journals, ledgers and other record keeping systems
maintaining petty cash system
purchasing and procurement
wages and salaries payments and record keeping
Resources and systems may include:
hardware and software
human, physical or financial resources
record keeping systems (electronic and paper-based)
specialist advice or support
Processes to monitor actual expenditure and to control costs across the work team include:
reporting of:
assets
consumables
equipment
expenditure
income
stock
wastage
Reporting may include data from:
bank statements
credit card statements
financial reports
invoices and receipts
ledgers and journals
logs
petty cash records
spreadsheet-based records
Data and information on the effectiveness of financial management processes may include records (paper-based and electronic) related to:
bank account records
cash flow data
contracts
credit card receipts
employee timesheets
files of paid purchase and service invoices
income and expenditure
insurance reports
invoices
job costings
petty cash receipts
quotations
taxation records
wages/salaries books

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:
financial skills required to work with and interpret budgets, ageing summaries, cash flow, petty cash, GST, and profit and loss statements
knowledge of the record keeping requirements for the ATO and for auditing purposes.
Context of and specific resources for assessment
Assessment must ensure:
access to appropriate documentation and resources normally used in the workplace.
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:
assessment of written reports indicating broad knowledge of managing budgets and managing financial resources in the organisation
demonstration of techniques using financial record keeping software
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
oral or written questioning to assess knowledge of requirements for organisational record keeping and auditing
review of contingency plans
review of identification of cost variations and expenditure overruns
evaluation of documentation reportingon budget and expenditure
review of documentation identifying and recommending improvements to financial management processes.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other units from the Diploma of Management.