List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. | Analyse strategic opportunities and intended maintenance activities | 1.1 | Strategic opportunities are expressed in terms of aircraft and aeronautical product maintenance activities |
| 1.2 | All intended maintenance activities are converted into special projects or work programs |
| | 1.3 | Financial trends are analysed and interpreted in the context of the organisational strategic objectives |
| | 1.4 | Financial planning objectives, process timeframes and resources are clearly identified |
2. | Develop revenue, expenditure and capital investment proposals | 2.1 | Individuals and groups are given responsibility for the development of specific budgets and plans |
| 2.2 | Consultation occurs with all relevant groups and individuals throughout the organisation |
| | 2.3 | Proposals are developed taking account of past experience, present trends and future expectations |
| | 2.4 | Outcomes of proposals are clearly linked to organisational strategic objectives |
| | 2.5 | Realistic cost-benefit and Maintenance Organisation Exposition compliance costs are incorporated into all proposals |
| | 2.6 | Organisational investment target rates are met for capital expenditure proposals |
| | 2.7 | Performance measures and tactics for monitoring and control processes are identified for each proposal/action and a financial risk management plan is developed |
| | 2.8 | Proposals comply with the organisation’s values, policies, code of conduct, legal and ethical obligations |
| | 2.9 | Proposals are developed within the agreed timeframes |
| | 2.10 | Supporting evidence is valid and sufficient to allow proper evaluation of the proposals |
3. | Build agreement for budgets and financial plans | 3.1 | Negotiation is undertaken with relevant groups and individuals in ways that build commitment to the plans |
| 3.2 | Links to the achievement of organisational strategic objectives are identified and agreed |
| | 3.3 | Outcomes are confirmed in terms of clear, concise objectives and timeframes |
| | 3.4 | Negotiations lead to a clear agreement of those matters to be incorporated into budgets and plans |
| | 3.5 | Budgets and plans incorporate the outcomes of negotiations and meet the organisation’s approval processes |
| | 3.6 | Delegations, accountabilities and responsibilities are agreed and confirmed in writing |
| | 3.7 | Final budget and plans are clearly documented and a communication plan developed |
4. | Communicate budget and financial plans | 4.1 | Budget/financial plan communication package is reviewed by finance specialists |
| | 4.2 | Package is amended/revised where appropriate |
| | 4.3 | Training activities are undertaken with users of the budget and plans across the organisation |
| | 4.4 | All data and terms are defined and understood by the users of the plans |
| | 4.5 | Communication outcomes are tested to ensure clear understanding of objectives, processes and accountabilities |
5. | Monitor and control activities against plans | 5.1 | Delegations and budget accountabilities are confirmed in writing prior to budget period |
| | 5.2 | Funds are allocated in accordance with budget objectives and parameters |
| | 5.3 | Recording systems and documentation meet all audit requirements and legal obligations |
| | 5.4 | Risk management plans are implemented and contingency plans put in place for all financial plans |
| | 5.5 | Performance is monitored and variances promptly identified |
| | 5.6 | Variances are analysed in conjunction with relevant experts to determine cause and effect |
| | 5.7 | Remedial action is taken swiftly to minimise negative impact and maximise benefits |
| | 5.8 | Budgets and plans are renegotiated/restructured, where necessary, to optimise organisational performance |
6. | Report outcomes of financial plans | 6.1 | Records of financial performance are properly maintained within organisational systems |
| | 6.2 | Financial performance is analysed and reported in a form and language appropriate to the audience |
| | 6.3 | Non-financial objectives are reported in the context of overall organisational performance |
| | 6.4 | Strategies and plans are reviewed and updated to optimise organisational performance |
Evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria under the specified conditions of assessment on at least one occasion, and must include:
analysis and interpretation of relevant financial information
development of formal estimates of reviews, costs, cash flows and logistic requirements
communication/consultation to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input
cost and benefit analysis to produce balanced arguments to support financial proposals
risk management to assess probability and consequences of any potential negative event
investment analysis to evaluate capital expenditure proposals net present value (NPV), incentive rate of return (IROR), etc)
negotiating agreement on budgets and financial plans with the relevant managers
relating to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
arranging and delivering training to ensure team members and other managers understand the budget/financial planning objectives and processes
analysing and interpreting positive and negative variances from budget/plan, determining the reasons therefore, and identifying potential actions to remediate the situation
developing and implementing systems to ensure financial performance records are collected, maintained and properly reported.
Evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:
relevant legislation from all levels of government that affects business operation, especially in regard to WHS and environmental issues, equal employment opportunity (EEO), industrial relations and anti-discrimination
requirements in Civil Aviation Safety Regulations (CASRs) and AAP 7001.053 Technical Airworthiness Management Manual regarding financial status of maintenance organisations
aircraft and aeronautical product maintenance and maintenance management/certification requirements
financial planning within the organisation
budgeting
organisation’s intended aircraft and aeronautical product maintenance activities
consultative methods and processes
capital investment evaluation techniques
performance measurement
organisation roles in respect to financial delegations, accountabilities and responsibilities
standards for organisational record keeping and audit requirements.
This unit may be assessed on the job, off the job or a combination of both on and off the job. Where assessment occurs off the job, that is, the candidate is not in productive work, then an appropriate simulation must be used where the range of conditions reflects realistic workplace situations encountered during the management of organisational budgets and financial plans.
The candidate must have access to all materials and documentation required and must be permitted to refer to any relevant workplace procedures, codes, standards, manuals and reference materials. The assessment environment should not disadvantage the candidate.
Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria, including required knowledge, and be capable of applying the competency in new and different situations and contexts.
Assessors should gather a range of evidence that is valid, sufficient, current and authentic. The preferred method is the records in the Maintenance Management Competency Log. Where the individual does not have a Competency Log evidence can be gathered through a variety of ways, including direct observation, supervisor’s reports, project work, samples and questioning. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency.
Assessors must satisfy the requirements of the National Vocational Education and Training Regulator (Australian Skills Quality Authority, or its successors).