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.
Financial data may include:
budgets, forecasts and variations
cash flow/profit reports
financial/operational statements and reports (e.g. expenditures and receipts, profit and loss statements)
market valuations
Organisational requirements may include:
financial analysis assessments
financial management manuals
legal and organisational policies, guidelines and requirements
occupational health and safety policies, procedures and programs
price and exchange parameters
quality assurance and/or procedures manuals
recording and filing systems
reporting requirements
standard financial analysis techniques
Statutory requirements may include:
delegated authorities
internal control procedures
limits on volumes and types of financial transactions
reporting of duty, excise and other overseas government charges
reporting periods
taxation and payment timings
Discrepancies may include:
absence of auditable trail
expenditure report mismatches
inappropriate authorisations
incorrect payments
incorrect report formats
unreconciled cash flows and operating statements
variances from budget and phasings
Format may include:
audits
balance sheets
cash flow statements
electronic forms
financial year reports
operating statements
spreadsheets
statutory forms
Issues may include:
cost structures
internal controls
losses and returns
profitability
statutory obligations
suppliers and markets
Recommendations may refer to:
cash flow
changes in business activity including markets, goods or services traded
consolidation
expenses and overheads
labour costs including decisions to move production to other locations or sites
loss
profit
write-offs

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:
preparation of budgets which align with the business plan, use previous financial data and meet all compliance requirements
analysis of the effectiveness of existing financial management approaches
knowledge of the requirements of the Australian Tax Office.
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 on financial systems and financial management
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of budgets prepared
oral or written questioning to assess knowledge of legislative requirements or the tax system
evaluation of documentation reviewing profit and loss statements, cash flows and ageing summaries
analysis of maintenance of audit trails
review of recommendations prepared to ensure the financial viability of the organisation.
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 BSB60407 Advanced Diploma of Management.