Overview

This standard is about monitoring the budget against a plan.  It includes assessing the implications of any necessary re-allocations or re-distributions of the budget and keeping relevant people informed of changes.  Budgets may be internal or external to the organisation.

 
Performance Criteria

You must be able to:

  1. monitor and manage budgets to ensure that resources are being used according to agreed budget plans
  2. ensure that full details of the administration, control and spending of budgets are made available 
  3. identify and record risks and contingencies that could affect budget plans
  4. identify and consider additional resources that could be required and their implications on budgets
  5. identify the causes of any significant variances between what was budgeted and what has been spent 
  6. propose revisions to budgets in response to variances or unforeseen developments
  7. obtain agreement for changes to budget allocations
  8. use budget monitoring information to prepare future budgets

Knowledge and understanding

You need to know and understand:

  1. the creative objectives and how they impact on business objectives
  2. the agreed budget and when it can be changed without approval
  3. the relationship between the budget and the plan
  4. how to monitor and control budget
  5. the main causes of variances and how to identify them
  6. the different types of corrective action to be taken to address identified variances
  7. how to deal with risks and contingencies that can affect a budget 
  8. how to negotiate, agree and record changes to budgets
  9. who needs to agree revisions to budgets
  10. who needs to be kept informed about performance against budget and changes to budget
  11. the importance of using budget monitoring information for the preparation of future budgets