Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Review organisational financial management processes | 1.1 Document respective financial management responsibilities of the board or committee, and management 1.2 Explain legal responsibilities of individual board members and the board as a whole to the committee or board 1.3 Determine financial information required by the board or committee from management 1.4 Identify the statutory requirements of the board or the committee 1.5 Seek advice on suitable financial management systems that will enable reporting against the organisation's overall financial health. |
2. Apply financial management processes and systems | 2.1 Access appropriate policies and procedures to open and/or operate necessary bank accounts 2.2 Identify approved signatories for the bank accounts 2.3 Access finance procedures and reporting requirements specified by organisational stakeholders or funding bodies, and check that requirements for finance documentation are met 2.4 Review timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities, organisational stakeholders and/or funding bodies 2.5 Review documentation for authority and delegation between the board or committee and management for the management of finances 2.6 Ensure statutory requirements with regard to financial management are followed 2.7 Review policies and procedures to ensure they provide checks and balances to prevent, identify and deal with fraud 2.8 Review organisational procedures and documentation for receiving and expending funds 2.9 Review process for financial reporting against organisational budget and ensure established procedures and maintained by management |
3. Meet financial reporting requirements | 3.1 Ensure financial information is made available to members as specified in the constitution 3.2 Facilitate the clear presentation of financial information at meetings 3.3 Identify the type and content of financial information that can be made publicly available |
4. Monitor organisational expenditure | 4.1 Review and evaluate organisational budget and financial statements to ensure they meet requirements 4.2 Compare income and expenditure to budget and previous periods and identify and investigate discrepancies 4.3 Discuss achievement and variances to the budget in committee or board meetings 4.4 Discuss the danger of being insolvent with board or committee members to ensure they understand their legal obligation not to trade while insolvent 4.5 Document recommendations for action or variances |
This section specifies different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.
Suitable financial management systems must include: | the use of financial ratios as a heuristic for financial health resilience solvency |
Suitable financial reports must include: | balance sheet cash flow profit and loss statement written report |
Evidence of the ability to:
review the following organisational financial management systems:
use of financial ratios as a heuristic for financial health
resilience
solvency
review the following organisational financial management reports:
balance sheet
cash flow
profit and loss statement
written report
apply financial management processes and systems that accurately measure organisational performance against:
the organisation's budget
the organisation's overall financial health
long term organisational financial planning
communicate effectively with board or committee members, and stakeholders on financial issues
put processes in place to ensure that:
finance procedures and reporting requirements specified by organisational stakeholders or funding bodies are met
fraud is identified, managed and prevented
ensure adherence to the following organisational financial systems:
financial statement timelines
procedures for receiving and expending funds
statutory and delegation requirements
the budget process
examine and identify variances in budget and investigate discrepancies
identify the risk associated with an organisation heading towards insolvency and the action required:
cease trading
seek assistance
document financial information.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
outline the following financial responsibilities of management and board or committee members:
statutory and delegation authority
delegation and information requirements
explain the statutory requirements of the board or committee
discuss suitable financial management systems that enable the organisation to report against:
the organisation's budget
the organisation's overall financial health
long term organisational financial planning
outline documentation requirements with regard to finance reporting requirements and finance procedures
list board or committee financial reporting requirements
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical committee or board of governance activities and include access to:
examples of financial statements and budgets discussed by committees or boards of governance
examples of issues boards or committees of governance have worked on, including community feedback and strategic decisions.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist