Unit of competency Outline

Date retreived
23/07/2026 11:59 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.

Manage finances within a budget

Manage finances within a budget

Unit of competency
National Code
SITXFIN004A
State Code
S6523
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
12/11/2010
View on TGA
State Implementation and Classification
Approved Date
03/12/2010
Field of Education
080101 - Accounting
Original Release Date
03/12/2010
Nominal Hours
30
Description
This unit describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. The skills and knowledge for budget development are found in unit SITXFIN005A Prepare and monitor budgets.
Notes
Elements and Performance Criteria
1 Allocate budget resources.
  • 1.1 Allocate funds according to budget and agreed priorities.
  • 1.2 Discuss changes in income and expenditure priorities with appropriate colleagues prior to implementation.
  • 1.3 Consult and inform all relevant personnel in relation to resource decisions.
  • 1.4 Promote awareness of the importance of budget control.
  • 1.5 Maintain detailed records of resource allocation according to organisation control systems.
2 Monitor financial activities against budget.
  • 2.1 Check actual income and expenditure against budgets at regular intervals.
  • 2.2 Include financial commitments in all documentation to ensure accurate monitoring.
  • 2.3 Identify and report deviations according to organisation policy and significance of deviation.
  • 2.4 Investigate appropriate options for more effective management of deviations.
  • 2.5 Advise appropriate colleagues of budget status in relation to targets, within agreed timeframes.
3 Identify and evaluate options for improved budget performance.
  • 3.1 Assess existing costs and resources and proactively identify areas for improvement.
  • 3.2 Discuss desired budget outcomes with relevant colleagues.
  • 3.3 Undertake appropriate research toinvestigate new approaches to budget management.
  • 3.4 Define and communicate clearly the benefits and disadvantages of new approaches.
  • 3.5 Take account of impacts on customer service levels and colleagues in developing new approaches.
  • 3.6 Present recommendations for budget management clearly and logically to the appropriate person or department.
4 Complete financial and statistical reports.
  • 4.1 Complete all required financial and statistical reports accurately and within designated timelines.
  • 4.2 Produce clear and concise information to enable informed decision making.
  • 4.3 Forward reports promptly to the appropriate person or department.
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 in the performance criteria is detailed below.

Budgets may include:
cash budgets
departmental budgets
wage budgets
project budgets
purchasing budgets
sales budgets
cash flow budgets
budgets for micro, small, medium or large businesses.


Appropriate colleagues may include:
operational staff
managers
internal or external financial specialists.


Research to investigate new approaches may include:
discussions with existing suppliers
sourcing new suppliers
evaluating staffing and rostering requirements
reviewing operating procedures
potential roster changes.


Financial and statistical reports may relate to:
daily, weekly and monthly transactions and reports
break-up by department
occupancy
sales performance
commission earnings
sales returns
yield management
commercial account activity.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
knowledge of basic budget principles and structures
budgeting terminology relevant to a specific industry context
ability to monitor budgeted income and expenditure and to identify ways of improving budget performance
understanding of the main types of budgets that apply in the specific organisation or industry context
management of and reporting on a budget for a specific project or operational area over a period of time so that the monitoring and implementation aspects of managing finances within a budget can be assessed.


Context of and specific resources for assessment
Assessment must ensure:
use of figures and data that reflect the realistic financial operating conditions of industry.


Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. 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 reports produced by the candidate detailing the processes undertaken to manage finances within a budget
case studies and problem-solving to assess application of the principles of budget management to different situations
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
SITXFIN005A Prepare and monitor budgets.


Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.
Replaces
State Code National Code Title Type
E2015 THHGLE13B Manage finances within a budget Unit of competency
Replaced By
State Code National Code Title Type
WF775 SITXFIN402 Manage finances within a budget Unit of competency