This unit applies to individuals with a broad knowledge of the business or core functions of organisations who have responsibilities for controlling an organisation's finances.

ELEMENT

PERFORMANCE CRITERIA

1. Establish a financial management structure

1.1. Establish a structure to undertake regular financial management responsibilities on behalf of the board

1.2. Document respective responsibilities of the board and management

1.3. Determine financial information required by the board from management

1.4. Seek advice on suitable financial management systems for the organisation

1.5. Identify relevant statutory requirements

2. Establish financial management processes and systems

2.1. Ensure appropriate policies and procedures are in place to open and operate necessary bank accounts

2.2. Identify approved signatories for the bank accounts

2.3. Ensure authority and delegation between the board and management for the management of finances are documented

2.4. Ensure statutory requirements with regard to financial management are followed

2.5. Ensure duties of finance staff are documented

2.6. Ensure accepted procedures for receiving and expending funds are established and maintained by management

2.7. Ensure accepted systems for financial reporting are established and maintained

3. Sign contracts on behalf of the organisation

3.1. Ensure procedures for developing and documenting contracts are developed and followed

3.2. Identify people authorised to sign contracts on behalf of the organisation

3.3. Check that proposed contractual arrangements are realistic for the organisation and in the organisation's and community's interests

3.4. Ensure contracts are signed according to organisational policies and procedures

4. Follow finance procedures specified by funding bodies

4.1. Seek variations to financial agreements from relevant funding bodies if required

4.2. Identify and follow purchasing and disposal procedures specified by funding bodies

4.3. Check that requirements for finance documentation specified by funding bodies are met

5. Advise the community of the financial situation of the organisation

5.1. Identify the type and content of financial information that can be made publicly available

5.2. Ensure financial information is made available to members as specified in the constitution

5.3. Present financial information at meetings in a clear and simple manner

6. Meet reporting requirements of relevant corporate authorities and funding bodies

6.1. Identify reporting requirements by relevant corporate authorities and funding bodies

6.2. Establish timelines to ensure financial statements are completed within the timeframe required by relevant corporate authorities and funding bodies

6.3. Ensure an auditor is appointed at the annual general meeting

6.4. Review and evaluate financial statements to ensure they meet requirements

6.5. Check that financial reports are submitted to relevant corporate authorities and funding bodies within required timeframe

Required skills

communication, teamwork and negotiation skills to work cooperatively with other board members, management and staff of the organisation, members, community and key stakeholders

culturally appropriate communication skills to:

relate to people from diverse backgrounds and with diverse abilities

present financial information clearly and simply

delegation skills to enable tasks to be completed within required timeframes

evaluation and decision-making skills to monitor and review information presented to the board and enact decisions

numeracy skills to interpret reports and undertake calculations

problem-solving skills to identify and manage anomalies in financial reports

Required knowledge

concept of community control of organisations and how it may impact on reporting to community

cultural context in which Aboriginal and Torres Strait Islander boards operate, including their role in upholding traditional and cultural values, and how that might impact on financial reporting to the community

financial responsibilities of board members and management

financial support services available

geographic, social, economic and political contexts in which particular organisations operate and how these may impact on financial management and reporting processes

organisationalpolicies and procedures in relation to finances

provisions of federal, state or territory legislation and funding body requirements that impact on financial management and reporting

purpose and meaning of components of financial reports

statutory and funding body requirements in relation to finances

systems and structures to effectively manage finances

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:

identify role of the board and management in the control of finances

read and interpret typical organisational financial reports

follow policies and procedures regarding the organisation's financial management

communicate financial information simply and clearlyto others

ensure financial reporting requirements are met.

Context of and specific resources for assessment

Assessment must ensure:

participation on an actual or simulated board

access to examples of financial reports used by boards

access to examples of funding agreements and other relevant documents

knowledge and performance are assessed over time to confirm consistency in performance.

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:

observation of performance on a board or simulated board

direct questioning combined with reflection of practical board performance by the candidate

analysis of responses to case studies and scenarios

demonstration of techniques

observation of presentations and group discussions

oral or written questioning to assess knowledge

analysis of feedback from other board members.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

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.

Financial management responsibilities may include:

approving expenditures

developing a budget

entering into funding agreements

reporting financial information

varying the agreed budget.

Signatories may include:

a combination of board members and management

board members only

management only within limits.

Statutory requirements may include:

acquittal of funds

audited reports

superannuation

taxation, including GST

workers' compensation.

Systems for financial reporting may include:

computer-based systems

manual systems.

Financial information may include:

annual audited reports

financial projections

monthly income and expenditure figures

project reports.

Relevant corporate authorities and funding bodies may include:

government departments

other corporations

philanthropic trusts

project partners

Office of the Registrar of Indigenous Corporations

state and territory registration authorities.

Unit sector

Regulation, licensing and risk - ATSI governance

This unit contains employability skills.