Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSICORG517B Mapping and Delivery Guide
Prepare financial forecasts and projections

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSICORG517B - Prepare financial forecasts and projections
Description This unit describes the functions involved in preparing financial forecasts and projections.This unit describes the functions involved in preparing financial forecasts and projections.
Employability Skills The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Learning Outcomes and Application This unit requires the application of skills and knowledge required to prepare financial forecasts and projections. The unit encompasses producing a plan preparation timetable, identifying assumptions and parameters, issuing instructions and relevant aids for preparation of forecasts and projections, collecting, consolidating, modelling and analysing data and documentation results and obtaining approval. The unit may be applied to any sector of the financial services industry and has application to those job function that have responsibility to produce financial forecasts and projects for example accounts receivable and payable clerks.This unit requires the application of skills and knowledge required to prepare financial forecasts and projections. The unit encompasses producing a plan preparation timetable, identifying assumptions and parameters, issuing instructions and relevant aids for preparation of forecasts and projections, collecting, consolidating, modelling and analysing data and documentation results and obtaining approval. The unit may be applied to any sector of the financial services industry and has application to those job function that have responsibility to produce financial forecasts and projects for example accounts receivable and payable clerks.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites Not applicable.
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Plan preparation timetable
  • All critical milestones are identified to ensure financial forecasts and projections can be prepared within timeframes
  • Business plans are reviewed to identified timeframe parameters used
  • Business plans, financial forecasting and processing systems are reviewed to identify all potential conflicts
       
Element: Identify assumptions and parameters
  • Business plans and exception reports are reviewed to identify and resolve conflicts in assumptions
  • Assumptions and parameters are reviewed to ensure compliance with company policy and procedures
  • Current and historical financial reports are examined to establish trends
  • External environment is examined to gain an objective overview
       
Element: Issue instructions and relevant aids for preparation of forecasts and projections
  • Instructions issued are clear and unambiguous and comply with company format to ensure ease of use and consistency of interpretation
  • Types of business are identified to enable effective models to be selected
  • Training is provided to ensure comprehensive understanding and effective use of financial models by users
       
Element: Collect, consolidate, model and analyse data
  • Data is reviewed to ensure consistency with actual results and model used
  • Analysis results are documented in a clear and unambiguous way
  • Data collected are reliable, valid, complete and comprehensive
  • Processing is completed in accordance with established timetable
  • Data are consolidated in a logical structured format that enables ready analysis
       
Element: Document results and obtain approval
  • Results are documented in a clear and understandable manner
  • Documented results are in a format suitable to meet needs of target users
  • All approvals are obtained in accordance with management objectives, financial and company policies
  • Results are distributed within timetable and according to company policy
       


Evidence Required

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.

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:

knowledge of company policies and procedures regarding preparing financial forecasts and projections

knowledge of standard accounting principles and techniques

knowledge of external environmental factors affecting or influencing forecasts and projections

ability to plan preparation timetable

ability to identify assumptions and parameters

ability to issue instructions and relevant aids for preparation of forecasts and projections

ability to collect, consolidate, model and analyse data

ability to document results and obtain approval

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:

Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

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.

REQUIRED KNOWLEDGE&SKILLS

Knowledge requirements include:

company policy and procedures

knowledge or awareness of relevant acts and regulations

legal systems and procedures

industry codes of practice

computer systems

procedure writing

Skills requirements include:

computerised spreadsheet and database

data analysis and interpretation

evaluative and general analytical

negotiation and interpersonal

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.

Forecasts may include:

premium

management expenses

short term (1 year) or long term (5 year)

reinsurance proposed levels

claims

investment income

capital expenditure

Company policy and procedures may include:

operations manuals

internal control guidelines

computer system documentation

Current and historical financial reports may include:

new business reports

loss reports

change in renewal date of policies

customer retention

commission and charges ratios

External environment may include:

market place

activities of competitors

inflation rates

consumer activity

softness/hardness of market

government policy

finance markets

Models may include:

alternative scenarios

sensitivity analysis

format for calculations

cost/profit centre analysis

simulations

models can be stand alone or be driven from computer ledgers. Include account structure at summary level and key ratios

Users may include:

branch managers

product managers

directors

banks

claims managers

Australian Bureau of Statistics

regional/state managers

distribution stream managers

finance section

shareholders

underwriting managers

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

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
All critical milestones are identified to ensure financial forecasts and projections can be prepared within timeframes 
Business plans are reviewed to identified timeframe parameters used 
Business plans, financial forecasting and processing systems are reviewed to identify all potential conflicts 
Business plans and exception reports are reviewed to identify and resolve conflicts in assumptions 
Assumptions and parameters are reviewed to ensure compliance with company policy and procedures 
Current and historical financial reports are examined to establish trends 
External environment is examined to gain an objective overview 
Instructions issued are clear and unambiguous and comply with company format to ensure ease of use and consistency of interpretation 
Types of business are identified to enable effective models to be selected 
Training is provided to ensure comprehensive understanding and effective use of financial models by users 
Data is reviewed to ensure consistency with actual results and model used 
Analysis results are documented in a clear and unambiguous way 
Data collected are reliable, valid, complete and comprehensive 
Processing is completed in accordance with established timetable 
Data are consolidated in a logical structured format that enables ready analysis 
Results are documented in a clear and understandable manner 
Documented results are in a format suitable to meet needs of target users 
All approvals are obtained in accordance with management objectives, financial and company policies 
Results are distributed within timetable and according to company policy 

Forms

Assessment Cover Sheet

FNSICORG517B - Prepare financial forecasts and projections
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSICORG517B - Prepare financial forecasts and projections

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: