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 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.
Data and data sources required for budget preparation may include:
competitor research
customer or supplier research
declared commitments in areas of operation
financial information from suppliers
financial proposals from key stakeholders
income and expenditure for previous time periods
departmental, event or project budgets
grant funding guidelines or limitations
management policies and procedures
organisational budget preparation guidelines
performance information from previous periods.
Budget may include:
budgets for micro, small, medium or large businesses
cash budgets
cash flow budgets
departmental budgets
event budgets
grant funding budgets
project budgets
sales budgets
wage budgets
whole of organisation budgets.
Internal and external factors that could impact on budget development may include:
growth or decline in economic conditions
human resource requirements
new legislation or regulation
organisational and management restructures
organisational objectives
scope of the project
shift in market trends
significant price movement for certain commodities or items
supplier availability and cost.
Financial reports may include:
annual general meeting reports
board reports
funding acquittals in relation to grants received
periodic reports showing budget versus yeartodate actuals and financial commitments
periodic sales reports
taxation commitments.

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 ability to:
prepare multiple budgets to meet specific and differing workplace needs
consult on budget components and monitor and review budgets against performance over a budgetary life cycle
analyse the factors that impact the budget
integrate knowledge of budget preparation and monitoring practices and techniques
complete draft and final budgets within designated timelines.
Context of and specific resources for assessment
Assessment must ensure use of:
a real or simulated tourism, hospitality or event industry business operation or activity for which budgets are prepared
computers, printers and accounting software packages currently used by the tourism, hospitality and event industries
financial and operational data and reports used to prepare budgets for tourism, hospitality and event business activities
others with whom the individual can discuss, and negotiate draft and final budget components.
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:
projects and activities that allow assessment of the individual’s ability to:
prepare and monitor budgets
produce reports evaluating actual performance against estimated performance
produce financial reports related to the budgets
evaluation of reports produced by the individual detailing the processes undertaken to prepare a budget
direct observation of the individual negotiating the acceptance of a proposed budget
use of case studies and problemsolving activities about budget deviations and required actions
written or oral questioning to assess knowledge of budget preparation and monitoring practices and techniques
review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.
Guidance information for assessment
The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:
BSBCMM401A Make a presentation
BSBPMG501A Manage projects
SITXFIN401 Interpret financial information
SITXFIN402 Manage finances within a budget
SITXFIN601 Manage physical assets.