Wherever possible, provide workplace examples to support your answers. Acknowledge any sources of information you use (websites, books etc.) by referencing the original source.
Task Task title Task requirements/Questions
1.1 Budgets Explain the key purpose and objective of budgets and forecasts, including the importance of setting milestones and key performance indicators.
1.2 Ethical considerations Identify issues relating to ethical considerations for budgetary forecasting and projections and explain how these impact on forecast reliabilities.
1.3 Sources of data Describe two types and sources of data and information required for budgeting and forecasting.
1.4 Expenditure Outline and describe a range of expenditure and revenue items relevant to budgeting and forecasting.
1.5 Forecasting Identify two budget forecasting techniques and explain the similarities and differences between both.
1.6 Organisational policy Name the organisational policies and procedures relevant to budgeting and forecasting and briefly describe the key features that govern process and decisions.
1.7 Accounting principles a) Explain and give an example of the key principles and practices of:
i. accrual accounting
ii. budgetary control
iii. corporate governance
iv. double-entry bookkeeping
v. statistical analysis and measures of variance.
b) Explain how accrual accounting and double entry bookkeeping affects budgeting and the monitoring of budget outcomes
 
Task 2: Prepare a budget
For this task, you will demonstrate your ability to prepare, document and monitor a budget for an organisation. You may use an existing budget you have developed/amended for your organisation or you may use a case study for this task.
Task Task title Task requirements/Questions
2.1 Background Provide some background of the budget you have developed/amended by explaining the context and objectives of your budget in accordance with the organisational policies and procedures
2.2 Budget Prepare and document a budget showing cash, expenditure and revenue items relevant to the objectives of the budget and aims of the organisation or project.
The budget report must present data in a format that is easily understood and comprehended and that complies with the industry standards accounting principles and practices
2.3 Consultation a. Explain who you consulted with to determine what needs to be included in the budget. Show evidence of your consultation.
b. Describe the techniques you used to promote understanding, encourage collaboration and promote ongoing cooperation by all stakeholders.
2.4 Milestones When collating the data and preparing the budget report, explain how you:
– Determine milestones and timelines for specific reporting periods.
– Identify and set performance indicators in budgets to monitor financial performance.
– Break down annual budgets into seasonal periods in accordance with operating trends.
You will need to submit:
- Budget report
- Evidence of consultation – email, minutes of meeting
Sample Solution
