Elements and Performance Criteria

This unit applies to all tourism and hospitality sectors. The following explanations identify how this unit may be applied in different workplaces, tourism sectors and circumstances.
For generic pre-employment training and assessment, a range of industry contexts must be addressed. Where the focus is sector or workplace specific, training and assessment must be tailored to meet particular needs.
Financial operations may be for:
a department within a large organisation
a small business.
The scope of financial management requirements for different projects or enterprises will vary an may relate to differing requirements for:
budgeting and forecasting
reporting (depth, regularity, nature of reports)
control mechanisms
specialist financial skills.
Tourism and hospitality businesses often employ specialist accounting assistance and this will vary depending upon the size and nature of the business and the financial skills available within the business. Those responsible for managing financial operations need to be able to identify the need for this assistance.
Financial procedures and systems must address the following:
transaction recording
checking and reconciliation processes
banking procedures
invoicing
accounts payable
cash management and security measures
cashflow management
budget management
reporting requirements
GST and other taxation requirements
statutory requirements that apply to the specific business structure
sector specific requirements such as the Travel Compensation Fund in retail travel.
Financial procedures and systems may cover the following:
stock control
financial responsibilities within an organisation/department.
Statutory and internal control requirements will vary according to business structure.
Financial reports must include:
GST reports/Business Activity Statements
cashflow statements
profit and loss statements
balance sheets
reconciliations.
This unit applies to all tourism and hospitality sectors. The following explanations identify how this unit may be applied in different workplaces, tourism sectors and circumstances.
For generic pre-employment training and assessment, a range of industry contexts must be addressed. Where the focus is sector or workplace specific, training and assessment must be tailored to meet particular needs.
Financial operations may be for:
a department within a large organisation
a small business.
The scope of financial management requirements for different projects or enterprises will vary an may relate to differing requirements for:
budgeting and forecasting
reporting (depth, regularity, nature of reports)
control mechanisms
specialist financial skills.
Tourism and hospitality businesses often employ specialist accounting assistance and this will vary depending upon the size and nature of the business and the financial skills available within the business. Those responsible for managing financial operations need to be able to identify the need for this assistance.
Financial procedures and systems must address the following:
transaction recording
checking and reconciliation processes
banking procedures
invoicing
accounts payable
cash management and security measures
cashflow management
budget management
reporting requirements
GST and other taxation requirements
statutory requirements that apply to the specific business structure
sector specific requirements such as the Travel Compensation Fund in retail travel.
Financial procedures and systems may cover the following:
stock control
financial responsibilities within an organisation/department.
Statutory and internal control requirements will vary according to business structure.
Financial reports must include:
GST reports/Business Activity Statements
cashflow statements
profit and loss statements
balance sheets
reconciliations.

Essential Knowledge and Skills to be Assessed
The following knowledge and skills must be assessed as part of this unit:
the different financial management roles for given industry sectors or types of business including operational managers, owner/operators, financial controllers and external accountants/auditors
the aspects of financial management which must be considered for a given enterprise or industry sector
the ways in which financial management interrelates with all other areas of activity within a business
the major steps in the total accounting process and the relationship of each with business operations and reporting requirements
typical financial management systems and technology as relevant to the enterprise or industry sector including the features and capabilities of one or more computerised accounting packages
key features of and how to prepare the main financial reports used to monitor business performance including:
profit and loss statements
balance sheets
sales and receivables reports

techniques for calculating profit margins relevant to a given industry sector
overview of specific financial/taxation regulations and requirements relevant to the industry sector including how GST applies to particular business operations and GST reporting requirements
overview of economic issues which affect financial performance in specific industry contexts.
Linkages to Other Units
This unit must be assessed with or after the following units. These units describe skills and knowledge that are essential to this unit of competence:
THHGFA06A Interpret financial information
THHGLE13B Manage finances within a budget
THHGLE14B Prepare and monitor budgets
THHGLE21B Develop and maintain the legal knowledge required for business compliance
Critical Aspects of Assessment
Evidence of the following is critical:
understanding of the total financial management process within a business
ability to integrate the financial management activities of a business with overall business operations
knowledge of financial control, reporting and monitoring systems.
Context of Assessment and Resource Implications
Assessment must ensure:
project or work activities that include the requirement for the establishment and management of financial systems and which are conducted over a period of time so that the monitoring and implementation aspects of the unit can be assessed
use of figures and data that reflect the financial operating conditions of industry
demonstration of skills using appropriate computer technology.
Assessment Methods
Assessment methods must be chosen to ensure that financial management skills can be practically demonstrated. Methods must include assessment of knowledge as well as assessment of practical skills.
The following examples are appropriate for this unit:
evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate
evaluation of financial management strategies produced by the candidate detailing systems and procedures for the management of given business operations or situations
case studies and problem solving to assess application of financial management strategies to particular situations
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Key Competencies in this Unit
Key Competencies are an integral part of all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform Level 2 = Administer and Manage Level 3 = Design and Evaluate
Key Competencies
Collecting, Organising and Analysing Information
For example:
Evaluating all aspects of operations to determine precise requirements for financial control mechanisms (3)
Communicating Ideas and Information
For example:
Developing an Operations Manual which includes systems and procedures for financial management (3)
Planning and Organising Activities
For example:
Establishing and monitoring schedules for financial reporting (3)
Working with Others and in Teams
For example:
Conducting a brainstorming session with colleagues on minimising waste (3)
Using Mathematical Ideas and Techniques
For example:
Calculating prices and profit margins (2)
Solving Problems
For example:
Developing a solution to address consistent errors in financial reports (3)
Using Technology
For example:
Using features of accounting software to improve business performance reporting (2)
Essential Knowledge and Skills to be Assessed
The following knowledge and skills must be assessed as part of this unit:
the different financial management roles for given industry sectors or types of business including operational managers, owner/operators, financial controllers and external accountants/auditors
the aspects of financial management which must be considered for a given enterprise or industry sector
the ways in which financial management interrelates with all other areas of activity within a business
the major steps in the total accounting process and the relationship of each with business operations and reporting requirements
typical financial management systems and technology as relevant to the enterprise or industry sector including the features and capabilities of one or more computerised accounting packages
key features of and how to prepare the main financial reports used to monitor business performance including:
profit and loss statements
balance sheets
sales and receivables reports

techniques for calculating profit margins relevant to a given industry sector
overview of specific financial/taxation regulations and requirements relevant to the industry sector including how GST applies to particular business operations and GST reporting requirements
overview of economic issues which affect financial performance in specific industry contexts.
Linkages to Other Units
This unit must be assessed with or after the following units. These units describe skills and knowledge that are essential to this unit of competence:
THHGFA06A Interpret financial information
THHGLE13B Manage finances within a budget
THHGLE14B Prepare and monitor budgets
THHGLE21B Develop and maintain the legal knowledge required for business compliance
Critical Aspects of Assessment
Evidence of the following is critical:
understanding of the total financial management process within a business
ability to integrate the financial management activities of a business with overall business operations
knowledge of financial control, reporting and monitoring systems.
Context of Assessment and Resource Implications
Assessment must ensure:
project or work activities that include the requirement for the establishment and management of financial systems and which are conducted over a period of time so that the monitoring and implementation aspects of the unit can be assessed
use of figures and data that reflect the financial operating conditions of industry
demonstration of skills using appropriate computer technology.
Assessment Methods
Assessment methods must be chosen to ensure that financial management skills can be practically demonstrated. Methods must include assessment of knowledge as well as assessment of practical skills.
The following examples are appropriate for this unit:
evaluation of financial reports detailing financial performance of projects or activities conducted by the candidate
evaluation of financial management strategies produced by the candidate detailing systems and procedures for the management of given business operations or situations
case studies and problem solving to assess application of financial management strategies to particular situations
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Key Competencies in this Unit
Key Competencies are an integral part of all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform Level 2 = Administer and Manage Level 3 = Design and Evaluate
Key Competencies
Collecting, Organising and Analysing Information
For example:
Evaluating all aspects of operations to determine precise requirements for financial control mechanisms (3)
Communicating Ideas and Information
For example:
Developing an Operations Manual which includes systems and procedures for financial management (3)
Planning and Organising Activities
For example:
Establishing and monitoring schedules for financial reporting (3)
Working with Others and in Teams
For example:
Conducting a brainstorming session with colleagues on minimising waste (3)
Using Mathematical Ideas and Techniques
For example:
Calculating prices and profit margins (2)
Solving Problems
For example:
Developing a solution to address consistent errors in financial reports (3)
Using Technology
For example:
Using features of accounting software to improve business performance reporting (2)