Elements and Performance Criteria

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Expenditure and revenue items may include:
revenue producing expenditures
occasional expenditures
discretionary expenditure
client and supplier payments (eg sales and commissions)
fees and charges
capital expenditure
community service obligation expenditure
sales
service fees
other revenues
Budgetsmay include:
sales budgets
purchase budgets
labour budgets
production budgets
manufacturing budgets
statement of financial performance
statement of financial position
cash budgets
Budget objectives may include:
annual planning
rolling forecasts (next period, monthly, next year)
strategic review (long term)
debt reduction
business expansion and growth
cost reduction
solvency
Stakeholders may include:
employees
clients
managers and company officers (eg company directors and board of management)
financial institutions
suppliers
ministers
chief executive officers
Milestones and performance indicators may include:
reports (quarterly, half yearly, annual)
compliance with scheduled payment dates
profits and losses
debt reduction targets
unit costs
Verifiable evidence and source documentation may include:
order and supplier documentation
invoices/receipts
financial institution statements
taxation and statutory returns
Datamay include:
cash flow projections
fixed costs
variable business costs
sales records and projections
Assumptions and parameters may include:
expenditure limits
productivity levels
cash and business returns
market share growth
competitors' behaviour
regulatory stability

EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
ability to prepare budgets
ability to forecast estimates
ability to document budget
ability to monitor budget outcomes
knowledge of accounting principles and practices
knowledge of organisational policies and procedures
knowledge of organisational chart of accounts
Critical aspects of evidence
Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.
Delivery/assessment relationship to other units:
This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity, which combines the elements of competency for the unit, or a cluster of units of competency.
Assessment requirements
Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.
Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Resources required for assessment:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.