Reference no: EM133163614

Submission requirement

• Others with whom the individual can discuss budget components; these can be:
  • Those in an industry workplace who are assisted by the individual during the assessment process; or
  • Individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

Assessment Criteria: 

For this task you are to manage a budget that meets the specific business' needs over a three-month period.

1. Provide a short report on methods used for allocation and types of allocations for the project.

To appropriately prepare for this task you will need to perform each of the following steps to allocate the budget resources:

• Allocate the funds according the budget and the agreed priorities.
• Identify and discuss any changes to the income and expenditure priorities with the appropriate personnel prior to implementation.
• Consult with relevant personnel about resource decisions, and inform them of decisions made.
• Throughout discussions and consultations, promote awareness of the importance of budget control. 
• Maintain detailed records of the resource allocations.

2.  Monitor the financial activities against the budget over the budgetary life cycle- you required to provide any documentation used and/or produced for this section.

Complete the following steps to monitor the financial activities against the budget over the budgetary life cycle:

• Regularly use financial records to check the actual income and expenditure against the set budgets.
• Include relevant financial commitments in all documentation to ensure accurate monitoring.
• Identify any deviations and report them to the appropriate personnel according to significance of the deviation.
• Investigate appropriate options for more effective management of identified deviations.
• Regularly advise appropriate colleagues of the budget status in relation to the set targets.

3. Identify and evaluate options for improved budget performance- You required to Provide an outline on methods used to improve budget performance including who assisted with this decision.

Perform the following steps to identify and evaluate options for improved budget performance:

• Assess the existing costs and resources, and proactively identify areas for improvement.
• With relevant colleagues, discuss the desired budget outcomes.
• Undertake at least two of the following activities to investigate new approaches to budget management:
  • Discussions with existing suppliers.
  • Evaluation of staffing and rostering requirements.
  • Evaluation of impact of potential roster changes.
  • Review of operating procedures.
  • Sourcing new suppliers.
• Identify the benefits and disadvantages of new approaches, and communicate these to the relevant personnel.
• Considers the impacts on customer service levels and colleagues in developing new approaches.
• Present recommendations for budget management in a clear and logical manner.