TE08505 – Set, Control and Justify Budgets
Module code
TE08505
Module title
Set, Control and Justify Budgets
Prescription
People credited with this unit standard are able to: make and justify budgetary proposals for expenditure and revenue; manage and control the budgetary process; and monitor, control, and review performance of budget holders against their budget allocations
Programmes
- BT0101
- TE1101
NZQA Level
Level 6
NZQA Credits
5
Delivery method
- Not Web enabled
Learning hours
- Directed hours
- 25
- Self directed hours
- 25
- Total learning hours
- 50
Resources required
- Content
- Element 1
Make and justify budgetary proposals for expenditure and revenue.
Performance criteria
1.1 Projection of budget forecasts of income and expenditure use statistical methods on relevant data, with adjustments for changing price levels, seasonal trends, and any significant anticipated changes in circumstances which would affect the validity of the statistically derived calculations.
Range - relevant data for budget forecasts include - accounting information, wage and salary information, market information, general economic information.
1.2 Setting of budget policies, parameters, forecasts, and assumptions accord with the organisation's strategic objectives and financial policy, and communication in a timely manner to budget holders assists them in the development of budgetary proposals for each responsibility centre.
Range - budget policies include the budget base - current levels, zero-base.
1.3 Analysis of costs and benefits support draft budget proposals, and state the net benefits which should be achieved from the expenditure.
1.4 Budgetary discussions with budget holders are conducted in a manner which promotes goodwill and commitment to achieve budget outcomes.
Element 2
Manage and control the budgetary process.
Performance criteria
2.1 Evaluation of responsibility centre or functional budgets submitted by budget holders for consolidation ensures overall consistency with budgetary policies and parameters, and any variations or modifications, required to make the total budget realistic and achievable, are made in consultation with budget holders.
2.2 Budget proposals and activity plans for programmes, projects, and activities submitted by budget holders are verified as being suitably costed and justified to meet organisational requirements.
2.3 Total budget consolidation of responsibility centre and functional budgets is submitted for approval within acceptable resource constraints and with supporting information to facilitate decision-making.
2.4 Agreed budget is allocated according to organisational priorities, and allocations are communicated with delegated authorities to budget holders for implementation.
Element 3
Monitor, control, and review performance of budget holders against their budget allocations.
Performance criteria
3.1 Actual income and expenditure are checked against agreed budgets at regular, appropriate intervals.
3.2 Prompt, corrective action is taken where necessary in response to actual or potential significant deviations from budget.
3.3 Any modifications to agreed budgets during the accounting period are consistent with agreed guidelines, and are authorised.
3.4 Expenditure for each programme or activity is contained within agreed budgets.
3.5 Authorisation of expenditure is exercised within well defined financial limits and in conformity with managerial delegations.
3.6 Assessment, interpretation and action on information relating to costs and resource utilisation ensure that costs are effectively under control.
3.7 Comparison of actual expenditure and revenue results with budget projections is used to improve future budgetary practice. - Learning and Teaching Resource
- Teaching and Learning Resources:
A full set of resources will be issued for this module including printed course work and assessment materials. These include:
Course workbook
Listed specific texts/library books
Internet references
Manuals/standards documents
Students will also be encouraged to use the library and other resources that can be accessed at Wintec.
