Underpinning skills and knowledge
Assessment must include evidence of the following knowledge and skills:
context and typical processes for the budget development process within a given industry context
accounting principles and practices which impact on budget preparation
budget preparation techniques, including:
information required for budget preparation
components of a budget
techniques for making budget estimates
type of supporting information required
presentation techniques/formats for budgets.
negotiating skills in relation to budgetary planning.
Linkages to other units
It is recommended that this unit be assessed and/or trained or after the following unit:
CUEFIN02B - Manage a budget.
Critical aspects of evidence
The following evidence is critical to the judgement of competence in this unit:
understanding of the technical budget preparation process and accounting procedures that must be followed
sound analysis of the factors that impact on the budget development process
preparation of a realistic and accurate budget within the relevant workplace context.
Method and context of assessment
The assessment context must provide for:
project or work activities that allow for the development of a budget for a specific workplace context
involvement of others in the budget development process
use of industry-current technology for the budget preparation process.
Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:
evaluation of budgets prepared by the candidate, including comparison with actual budgetary performance
evaluation of reports prepared by the candidate detailing the processes undertaken to develop a budget
case studies and problem solving to assess application of principles of budget development to different workplace contexts
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).
Resource requirements
Assessment of this unit requires access to:
industry-current technology for budget development
sources of information on expenditure and income.
Key competencies in this unit
Key competencies are built into all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform
Level 2 = Administer and Manage
Level 3 = Design and Evaluate
Collecting, analysing and organising ideas and information (3)
Gathering and analysing data to assist in the budget development process.
Communicating ideas and information (2)
Providing a briefing on a draft budget.
Planning and organising activities (2)
Organising the consultation process during budget development.
Working with others and in teams (2)
Discussing/negotiating potential budget adjustments with colleagues.
Solving problems (3)
Investigating options to address budgetary limitations.
Using mathematical ideas and techniques (2)
Developing different budget scenarios/estimates.
Using technology (2)
Using tools within an accounting software package.
Underpinning skills and knowledge
Assessment must include evidence of the following knowledge and skills:
context and typical processes for the budget development process within a given industry context
accounting principles and practices which impact on budget preparation
budget preparation techniques, including:
information required for budget preparation
components of a budget
techniques for making budget estimates
type of supporting information required
presentation techniques/formats for budgets.
negotiating skills in relation to budgetary planning.
Linkages to other units
It is recommended that this unit be assessed and/or trained or after the following unit:
CUEFIN02B - Manage a budget.
Critical aspects of evidence
The following evidence is critical to the judgement of competence in this unit:
understanding of the technical budget preparation process and accounting procedures that must be followed
sound analysis of the factors that impact on the budget development process
preparation of a realistic and accurate budget within the relevant workplace context.
Method and context of assessment
The assessment context must provide for:
project or work activities that allow for the development of a budget for a specific workplace context
involvement of others in the budget development process
use of industry-current technology for the budget preparation process.
Assessment may incorporate a range of methods to assess performance and the application of essential underpinning knowledge, and might include:
evaluation of budgets prepared by the candidate, including comparison with actual budgetary performance
evaluation of reports prepared by the candidate detailing the processes undertaken to develop a budget
case studies and problem solving to assess application of principles of budget development to different workplace contexts
review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate.
Assessment methods should closely reflect workplace demands and the needs of particular groups (e.g. people with disabilities, and people who may have literacy or numeracy difficulties such as speakers of languages other than English, remote communities and those with interrupted schooling).
Resource requirements
Assessment of this unit requires access to:
industry-current technology for budget development
sources of information on expenditure and income.
Key competencies in this unit
Key competencies are built into all workplace competencies. The table below describes those applicable to this unit. Trainers and assessors should ensure that they are addressed in training and assessment.
Level 1 = Perform
Level 2 = Administer and Manage
Level 3 = Design and Evaluate
Collecting, analysing and organising ideas and information (3)
Gathering and analysing data to assist in the budget development process.
Communicating ideas and information (2)
Providing a briefing on a draft budget.
Planning and organising activities (2)
Organising the consultation process during budget development.
Working with others and in teams (2)
Discussing/negotiating potential budget adjustments with colleagues.
Solving problems (3)
Investigating options to address budgetary limitations.
Using mathematical ideas and techniques (2)
Developing different budget scenarios/estimates.
Using technology (2)
Using tools within an accounting software package.