Unit Descriptor

This unit involves the skills and knowledge required to set, monitor and evaluate budgets for business units in accordance with relevant regulatory requirements and workplace procedures. This includes evaluating data for budgets, drafting the budgets, negotiating the budgets, and implementing and monitoring budget performance

Element

Performance Criteria

1. Evaluate data for budget

1.1

Operating plan for business unit is examined to identify critical budget parameters

1.2

Proposed budget target figures are identified to meet profit and fixed cost requirements

1.3

Previous budget and actual revenue and expenditure figures are compared and reasons for performance figures are analysed and recorded

1.4

External factors which may influence performance are identified

1.5

Reasons for variations to targets over actual performance are considered and used to inform budget decision making process

2. Draft budget

2.1

Budget documentation is prepared in accordance with enterprise policy and procedures

2.2

Estimates of costs and benefits are supported by valid, relevant information, recommendations are supported by realistic alternatives and contain accurate, clear proposals

2.3

Budget papers indicate net benefits over designated timeframe and related changes in operations

2.4

Budget documentation is clear and concise and provides information in appropriate language to inform management and employees

2.5

Draft budget is circulated to stakeholders for information and feedback

2.6

Feedback is considered and redrafting process and contentious issues are clarified by further explanation

3. Negotiate budgets

3.1

Budget negotiations are conducted within appropriate agreed timeline and in a manner likely to promote ongoing cooperation

3.2

Budget negotiations reflect the overall enterprise policies and objectives relevant to the manager's area of responsibility

3.3

Clarification is promptly sought where areas of uncertainty or disagreement occur

3.4

All relevant personnel are promptly and accurately informed of budget decisions

3.5

Budget implications and interpretation are explained and the process for implementation developed in consultation with employees and management

4. Implement and monitor budget performance

4.1

Objectives and targets for individual zones or operations are developed in active consultation with team members and management

4.2

Implementation strategies and objectives accurately reflect the overall workplace policy

4.3

Strategies and objectives are attainable, cost efficient and realistic within the designated timeframe

4.4

Implementation process allows for continuous improvement processes

4.5

Constraints are identified and alternative strategies are developed

4.6

Trends in actual income and expenditure are regularly compared to budget targets and corrective action taken promptly when deviations from budget occur

4.7

Necessary changes to agreed budget are negotiated in advance of requirement

4.8

Modifications to existing budgets are documented and authorised according to enterprise policy

4.9

Information on (any revised) targets, implementation strategies and budget performance is regularly provided to management and employees