- LGACOM407B - Manage finances within a budget
LGACOM407B
Manage finances within a budget
Application
This unit supports the attainment of skills and knowledge required for competent workplace performance in councils of all sizes. Knowledge of the legislation and regulations within which councils must operate is essential. The unique nature of councils, as a tier of government directed by elected members and reflecting the needs of local communities, must be appropriately reflected.
Prerequisites
Not applicable.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Allocate funds | 1.1. Funds are allocated according to agreed priorities and council requirements. 1.2. All relevant people are kept informed of resource decisions, allocations and usage. 1.3. Records of resource allocation and usage are current and complete according to relevant legislation and council or departmental requirements. |
2. Manage cash flow | 2.1. All documentation on cash flow is up to date and accurate. 2.2. Cash receipts and payments are monitored against budgeted cash flow. 2.3. Relevant employees and departments are consulted to determine the likely pattern of cash flows and to anticipate any unusual receipts or payments. 2.4. Forecasts of future cash flows are made in accordance with available information. 2.5. Cash budgets are presented in the approved format and clearly indicate net cash requirements. 2.6. Significant deviations from the projected cash flow requirements are identified, assessed and appropriate action is taken. 2.7. Cash budgets are developed to ensure effective utilisation of available funds whilst maintaining an adequate level of liquidity. |
3. Monitor and control activities against budget | 3.1. Systems are implemented to facilitate timely and accurate monitoring of actual income and expenditure against budgetary predictions. 3.2. Actual income and expenditure are checked against budgets at regular designated intervals. 3.3. Deviations from expected budget estimates or expenditure are identified and addressed and/or reported according to council requirements. 3.4. Departments and relevant employees are advised of financial status with regard to budget allocations and expenditure. |
4. Prepare reports | 4.1. Accurate, clear and concise financial reports are prepared within required time frames according to council or departmental auditing and legislative requirements. |
Required Skills
This describes the essential skills and knowledge and their level, required for this unit |
Required Skills |
forecasting contingency management review reporting consultation |
Required Knowledge |
relevant legislation and Australian accounting standards auditing requirements relevant council or departmental requirements and guidelines, and including sustainability practices budget processes and procedures relevant accounting procedures |
Evidence Required
Overview of assessment requirements | A person who demonstrates competency in this unit will be able to perform the outcomes described in the Elements to the required performance level detailed in the Performance Criteria. The knowledge and skill requirements described in the Range Statement must also be demonstrated. For example, knowledge of the legislative framework and safe work practices that underpin the performance of the unit are also required to be demonstrated. |
Critical aspects of evidence to be considered | The demonstrated ability to: identify unexpected changes, such as loss of income or funding, and minimise impact manage finances within budget manage any variations in accordance with council procedures. |
Context of assessment | Assessment of performance requirements in this unit should be undertaken within the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the Range of Variables applicable to the workplace environment. |
Method of assessment | The following assessment methods are suggested: observation of the learner performing a range of workplace tasks over sufficient time to demonstrate handling of a range of contingencies written and/or oral questioning to assess knowledge and understanding completion of workplace documentation third-party reports from experienced practitioners completion of self-paced learning materials including personal reflection and feedback from trainer, coach or supervisor. |
Evidence required for demonstration of consistent performance | Evidence should be gathered over a period of time in a range of actual or simulated management environments. |
Resource implications | Access to a workplace or simulated case study that provides the following resources: financial management systems and records copies of relevant legislation and accounting standards examples of council guidelines and procedures |
Range Statement
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 in the Performance Criteria is detailed below. | |
Relevant people may include: | employees affected by the budget management finance department elected members any relevant people or bodies outside council contractors members of the public |
Auditing and legislative requirements may include: | Australian accounting standards local government act regulations |
Sectors
Common.
Competency Field
Not applicable.
Employability Skills
This unit contains employability skills.
Licensing Information
Not applicable.